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A REPORT

ON
MARKET SURVEY OF AMUL LIQUID CREAMER, DAIRY
CREAMER POWDER AND LACTOSE FREE MILK IN
THANE DISTRICT FOR HORECA SEGMENT.

By
AKSHAY TONGE
18BSP2865

AMUL GUJRAT CO-OPERATIVE MILK MARKETING


FEDERATION LTD

1
A REPORT
ON
MARKET SURVEY OF AMUL LIQUID CREAMER, DAIRY
CREAMER POWDER AND LACTOSE FREE MILK IN THANE
DISTRICT FOR HORECA SEGMENT.
By
AKSHAY TONGE
18BSP2865

AMUL GUJRAT CO-OPERATIVE MILK MARKETING


FEDERATION LTD
A report submitted in partial fulfillment of the requirements of PGPM
Program of IBS Pune

Distribution List:

Mr. Shashank Jadhav Dr. Saumya Misra


Company Guide Faculty Guide
GCMMF LTD. IBS Pune

Date of Submission: 03 June 2019

2
AUTHORISATION

A report submitted in partial fulfillment of the requirements of the PGPM Program of ICFAI
Business School, Pune.
I hereby assure that information provide herein will not be disclosed anywhere unless and until
necessary as part of studies.
This report document titled “Market Survey of Amul Liquid Creamer, Dairy Creamer Powder
and Lactose Free Milk in Thane District for HoReCa Segment” is a submission of work done
by Mr. Akshay Tonge. This report has been formally submitted to Dr. Saumya Misra, Faculty,
IBS Pune and Mr. Shashank Jadhav, GCMMF Ltd. The report has been verified and
authenticated by:

Mr. Shashank Jadhav Dr. Saumya Misra


Company Guide Faculty Guide
GCMMF LTD. IBS Pune

3
ACKNOWLEDGEMENT

I am using this opportunity to express my gratitude to ICFAI Business School, Pune for
providing me an opportunity to be a part of Amul, GCMMF Ltd.

My most humble and sincere thanks to our company guide Mr. Shashank Jadhav without
whom I wouldn’t have completed this internship and his immense support and guidance kept
me moving forward in right direction, which gave me the chance to learn something new
through practical experience with the firm

I am highly obliged and wish to thank my Mentor and Faculty Guide Dr. Saumya Misra for
giving me the opportunity to work under her guidance and her continued support and
encouragement throughout. Her keen interest, guidance and timely suggestions have been a
source of inspiration and have helped me throughout the course of my study.

I am grateful to all my respondents who spared their valuable time for fulfilling the
questionnaire and answering my queries. Their help in the completion of this study is greatly
acknowledged.

4
TABLE OF CONTENTS
Sr. No. Particulars Page
No.
Executive Summary 8

1. Chapter 1. Introduction 10-35

1.1 Description of SIP Research in brief


1.2 Product Profile
1.3 Organizational Profile
1.4 GCMMF
1.5 Industry Analysis

2. Chapter 2. Review of Literature 37

3 Chapter 3. Objectives 38

3.1 Objectives of Research

4 Chapter 4. Research Methodology 40

4.1 Data Collection


4.2 Sampling Plan
4.3 Research Instrument
4.4 Limitations of the Study

5 Chapter 5. Data Analysis and Observations 42


- 71

5.1 Amul Liquid Creamer


5.2 Amul Dairy Creamer Powder
5.3 Amul Lactose Free Milk

5
6 Chapter 6. Conclusion 73-76

6.1 Conclusion
6.2 Table of Objectives
6.3 Findings

7 Chapter 7. Recommendations 78

7.1 Recommendations
7.2 Pricing Strategy Recommended

8 Chapter 8. Learnings 80

Bibliography 81

Sample Questionnaires 82-87

LIST OF TABLES
S. No. Title Page
No.
1 Ratio Analysis of Amul 2018 34
2 Ratio Analysis of Amul 2017 34
3 Hotel Visits for Amul Liquid Creamer 43
4 Hotel Visits for Amul Dairy Creamer Powder 55
5 Hospital visits for Amul Lactose free Milk 67
6 List of Objectives with corresponding conclusions 74

6
LIST OF ILLUSTRATIONS
Sr. No. Illustration
Amul Liquid Creamer
1 Current Product Used
2 Product Awareness
3 Previous Usage
4 Rating w.r.t Taste
5 Rating w.r.t Solubility
6 Rating w.r.t Price
7 Rating w.r.t Quantity
8 Liking towards Packaging
9 Liking w.r.t current product used
10 Willingness to switch
Amul Dairy Creamer Powder
11 Current Product Used
12 Product Awareness
13 Previous Usage
14 Rating w.r.t Taste
15 Rating w.r.t Solubility
16 Rating w.r.t Price
17 Rating w.r.t Quantity
18 Liking towards Packaging
19 Liking w.r.t current product used
20 Willingness to switch
Amul Lactose Free Milk
21 Product Awareness
22 Product Requirement
23 Rating w.r.t Taste
24 Rating w.r.t Quantity
25 Rating w.r.t Price
26 Liking towards Packaging
27 Willingness to switch

7
EXECUTIVE SUMMARY

This report was commissioned to examine the Thane market with regards to Amul products Liquid
Creamer, Dairy Creamer Powder and Lactose Free Milk in HoReCa segment.
Amul wishes to capture the market of premium hotels in the segment of products supplied in the
rooms, creamer is a product developed especially for keeping in rooms for preparing tea/coffee.
Amul lactose free milk is a new kind of product in its category, particularly launched for Lactose
Intolerant people. The main objective of this project is to increase the products presence in the
market, highlight the product drawbacks and recommend ways to increase sales.
The research draws attention to the fact that 85 % of the target population were unaware that these
Amul products exist in the market. Their key competitors in the creamer range Nestle Everyday
Creamer currently hold more than 80 % of the market share in hotels that provide products for
making Tea/Coffee in the room and there is a rare demand for Amul Lactose Free Milk in Thane
market. When it comes to quality of products and brand image in the market Amul holds an upper
hand over its competitor Nestle everyday creamer in the creamer category however falls short in
pricing, stock availability and margins. Amul Lactose Free milk is not able to prove itself a
successful product because of the lack of knowledge of its health benefits among the dealers as
well as customers.
Further investigations reveal that this market is highly price sensitive and prefers procuring stock
at the least price possible without focusing on the quality and brand of the products which they
will use. Distributors are highly focused on Amul fresh products such as milk, butter, cheese
,cream etc as these products possess a high demand in the market and the creamers and lactose
free milk are overlooked upon by the distributors due to their lesser demand and product
knowledge in the market.
Pricing plays a major role in the Thane market thus these products must be priced competitively
in comparison with its competitors. It is recommended that instead of setting a high initial price to
skim off each segment, market-penetration pricing technique should be used. It refers to setting a
low price for a new product to penetrate the market quickly and deeply. Thereby, a large number
of buyers and a large market share are won, but at the expense of profitability in the initial stages.
The high sales volume leads to falling costs, which allows companies to cut their prices even
further. Although the low prices make each sale less profitable, the high-volume results in lower
costs will allow Amul to maintain a healthy profit margin. Penetration pricing can prevent
competitors from cutting into your market at lower price points. If your upfront price is low and
your product or service is of reasonable quality, the burden falls on other providers to justify higher
prices on similar offerings.

8
CHAPTER 1
INTRODUCTION

9
1.1 Description of SIP Research in brief:

AMUL LIQUID CREAMER

• Objective: Promoting Amul Liquid


Creamer through sampling at Premium
Hotels.

• Motivation behind the project:


Amul wishes to capture the market of
premium hotels in the segment of
products supplied in the rooms.
Creamer is a product developed
especially for keeping in rooms for
preparing tea/coffee.

• Work Approach:
Find out all the premium hotels in
Thane through online sources and
create a fixed journey cycle to visit all
the hotels. I am required to talk to
purchase manager of the hotel and
promote Amul Creamer through
sampling and convince them to
purchase the Creamer.

10
AMUL DAIRY CREAMER POWDER

• Objective: Promoting Amul Dairy


Creamer powder through sampling at
Premium Hotels.

• Motivation behind the project:


Amul wishes to capture the market of
premium hotels in the segment of
products supplied in the rooms. Dairy
Creamer Powder is a product
developed especially for keeping in
rooms for preparing tea/coffee.

• Work Approach:
Find out all the premium hotels in
Thane through online sources and
create a fixed journey cycle to visit all
the hotels. I am required to talk to
purchase manager of the hotel and
promote Amul Creamer Powder
through sampling and convince them
to purchase the Creamer.

11
AMUL LACTOSE FREE MILK

• Objective: Promoting Amul Lactose


free milk through sampling at Premium
Hospitals.

• Motivation behind the project:


A new kind of product in its category.
Particularly launched for Lactose
Intolerant people

• Work Approach:
Find out all the premium hospitals in
Thane through online sources and
create a fixed journey cycle to visit all
the hospitals. I am required to talk to
purchase manager of the hotel and
promote Amul Lactose Free Milk
through sampling and convince them
to purchase the same.

12
1.2 Product Profile:
AMUL LIQUID CREAMER:

Introduction:
To cater to dynamic consumer needs, new product development has always been an important area
of focus for GCMMF Ltd. They believe in launching futuristic products by analysing changing
consumer lifestyles and gauging windows of opportunity well in advance. Amul Liquid Creamer
is another revolutionary product in Amul’s portfolio. It is the best offering from GCMMF in terms
of technology, product, packaging and experience for our customers. Amul Liquid Dairy Creamer
is creamy milk with 25% total solids (9% fat and 16% SNF). This makes it ideal for making rich
and delectable coffee, tea and other dairy beverages. UHT treated Amul Liquid Dairy Creamer has
a shelf life of 180 days and can be stored in ambient conditions. It comes in packs of 10gm each
single use pack. Amul Liquid Dairy Creamer is creamy milk with 25% total solids (9% fat and
16% SNF). This makes it ideal for making rich and delectable coffee, tea and other dairy
beverages. UHT treated Amul Liquid Dairy Creamer has a shelf life of 180 days and can be stored
in ambient conditions. It comes in packs of 10gm each single use pack. It is purely dairy based and
does not contain any non-dairy fats. Thus, you get all the goodness and freshness of milk with the
convenience of single use packs that can be stored at ambient conditions.

Marketing Mix:
Amul is the market leader in UHT milk category and consumers have experienced innovative
products like Amul Slim n Trim Milk, Amul Calci+ Milk, Amul Fresh Cream, Amul Whipping
Cream, Amul Lactose Free Milk and other such products. Catering to the on-the-needs of our

13
customers, Amul Liquid Dairy Creamer is a product of the future and a natural extension of the
existing portfolio of the UHT range from Amul.
Product:
Amul Liquid Dairy Creamer is manufactured in state-of-art manufacturing facility of AmulFed
Dairy, Gandhinagar. It is ultra-heat treated milk with 25% total solids (9% fat and 16% SNF).
Following the heat treatment this creamer is packed aseptically in 10 gm cups with easy to remove
foil seal. Other salient features of the product are as follows:

• Goodness of real milk


• Thick and creamy texture
• 180 days of shelf life
• Single use 10 gm cups
• Easy to open peel-off foil
• No added sugar
• High miscibility compared to other substitutes
• Attractive/affordable price
• Ambient storage conditions required
• Available in 400 cups X 10 gm configuration cases
Price:

Product SKU Basic Rate GST Final Landed


Amul
Liquid 10 gm Rs. 2.00 Rs.10 Rs. 2.10
Creamer

Nutritional Value:

14
AMUL DAIRY CREAMER POWDER:

Introduction:
There is an increase in the use of dairy whitener in tea and coffee. Those who use them find that it
dissolves easily and gives your tea a very great whitening ability and it also has the ability to
lighten the coffee to produce a smoother, milder and mellower drink. But what is the difference
between powdered milk and dairy whitener.
They are granular substances intended to substitute for milk or cream as an additive to coffee/
tea/hot-chocolate or other beverages. They are also known as Non-dairy creamers or coffee
whiteners. This is because in some dairy whitener milk fat may be replaced by vegetable oil; trans-
fat that dissolves easily in liquids. Extra ingredients that are added to mimic the qualities of milk
and cream are sugar, sodium and corn syrup. Dairy whiteners can be readily used for tea or coffee
making without having to add further sugar.
Powdered milk also known as dried milk, is a factory made dairy product made by evaporating
milk to dryness. Preserving the milk is one of the main purposes of dry milk powder. It has far
long shelf life than milk in liquid form and doesn’t need to be refrigerated because of low moisture
content. Another purpose is to reduce its bulk for economy of transportation.

15
Difference Between Powdered Milk and Dairy Whitener:
• Dairy Whitener has more sugar than Powdered Milk. This is because either sugar or corn
syrup is added to Dairy whitener
• Powdered milk can be lumpy when mixed with liquids while Dairy whitener dissolves
smoothly and easily.
• Dairy whitener has longer shelf life than powdered milk, as much as two times more. That
is the reason why it is preferred by manufacturers, airlines and railways.
• Dairy whitener usually have a number of unhealthy additives compared to Powdered milk
like hydrogenated oils, palm oil, Carrageenan extracted from the red seaweed which is used
as an emulsifier. Castoreum and monosodium glutamate are used for adding flavor.
• Dairy whitener usually has less nutrients and proteins than full cream powdered milk.

Nutritional Information:

Price:

Product SKU Basic Rate GST Final Landed


Amul
Powder 3 gm Rs.0.86 Rs.0.04 Rs.0.90
Creamer

16
AMUL LACTOSE FREE MILK

Introduction:
New product development has always been an important area of focus for GCMMF Ltd. Since its
inception. GCMMF have always been innovating and improving our products in terms of quality,
novelty, appearance as well as packaging. Amul Lactose Free Milk is not just another arrow in the
quiver of new products of GCMMF. It is the best offering from GCMMF in terms of technology,
product, packaging and experience for customers. People who have been suffering from
indigestion after consuming milk are the prime target consumer of Amul Lactose Free Milk. Milk
is an important source of nutrition and absence of milk from daily diet causes loss of valuable
nutrition. A lactose intolerant person who has not been consuming milk and hence has not been
getting nutrition from milk may now get nourishment from Milk.
Marketing Mix:
Amul is the market leader in UHT milk category and consumers have experienced innovative
products like Amul Slim n Trim Milk, Amul Calci+ Milk, Amul Fresh Cream, Amul Whipping
Cream, Amul Basundi and other such products. Amul Lactose Free Milk is natural extension of
the existing portfolio of the UHT range from Amul.

17
Product: Amul Lactose Free Milk is manufactured in state-of-art manufacturing facility of Amul
Fed Dairy, Gandhi Nagar. Enzyme Lactase is added t normal ultra-heat treated milk at very high
precision so that the natural lactose present in milk is broken down in to glucose and glacatose.
Following which the lactase treated milk is packed aseptically to given Amul Lactose Free Milk.
Hence Amul Lactose Free Milk is any normal milk devoid of lactose.
Amul Lactose Free Milk is first of its kind in India. It is milk without lactose so that lactose
intolerant can enjoy milk. It has all the goodness of milk like protein, vitamins, calcium and other
minerals. A lactose intolerant person who has not been consuming milk and hence has not been
getting nutrition from milk may now get nourishment from Milk.
Other salient features of Amul Lactose Free Milk are:

• Available in attractive, easy to use portion pack of 250ml in Tetrapack


• Pack with functionality of re-cap prevents spillage and multiple time use
• 250ml pack with re-cap gives easy carrying and handling experience to consumers
especially during travel
• Shelf life of 120 days
• Storage in ambient condition – no refrigeration required
• No need to boil
• Case configuration: 32 x 250ml
Pricing:

Product SKU Basic Rate GST Final Landed


Amul Lactose Free
25 gm Rs. 22.38 Rs.1.12 Rs. 23.50
Milk 250 ml TB

Nutritional Information:

18
1.3 Organizational Profile:
History:
In 1942-43, Britishers settled in Bombay fell
sick. After a report, it was found that the
quality of milk was not good. The government
of Bombay was forced to intervene. They were
looking for good quality of milk and milk
products supply from nearby areas. In 1926,
Pestonjee Edulji had set up a large factory
nearby Anand district where butter was
being manufactured.
Farmers collecting milk at Anand

The butter manufactured at Pestonjee’s plant was sold under a Western sounding
brand name “Polson” which had already become a household name in butter. The
farmers of Kaira district of Anand started producing milk in larger quantities for
Polson Limited. Around the year 1945, Polson Limited was contacted by the British
Government of Bombay if Pestonjee could supply milk 427 km from Anand to
Bombay. Pestonjee pasteurized milk at his cream manufacturing facility and supplied
milk by packing them in gunny bags with chilled water inside. The milk after reaching
Bombay was in fairly good condition. This was the start of Bombay Milk Scheme
(BMS). Hence, Bombay became a market for milk producers in Kaira district of
Anand in Gujarat.
Polson asked for an agreement with the British
Government that no one else in the area should
be allowed to obtain milk from the farmers of
Anand. Farmers of all the villages of Anand
should sell the milk only to Polson. In other
words, Polson got a direct license to
monopolize the supply of milk. The prices of
milk was never fixed. Polson obtained milk at
Farmers at Anand

19
very low prices from the farm.
Farmers united themselves and met Sardar Vallabhbhai Patel. Sardar Patel suggested
them to form milk cooperatives. Sardar Patel assigned the task of formation of
cooperatives to Mr. Morarji Desai. Morarjibhai
appointed Tribhuvandas Patel, a farmer of the area as the
head of the union of farmers. Tribhuvandas had a very
good reputation among the farmers as he was a freedom
fighter and had come out of jail then. Although,
Tribhuvandas was reluctant in adopting this role, but
seeing his previous work Morarjibhai considered him as
perfectly fit for taking up the role to unite the farmers.
Under his leadership, cooperatives started forming in the
villages of Anand These cooperatives together
collected the milk and collectively sold to Polson. Shri Tribhuvandas K Patel

Polson tried all the filthy tricks like discovering flies in the milk- to break the
cooperative structure. The farmers were exploited even more. At this stage, they again
met Sardar Patel. Sardar Patel asked them to remove Polson. Sardar Patel asked them
if they were ready to fight the government. Such an action would directly result in
some losses to farmers as they would not be able to sell milk. But if they were ready
to bear the losses, Sardar Patel could lead them.
At the initial stage only 250 litres of milk was collected every day. But with the growing awareness
of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11
lakhs litres of milk every day. Since milk was a perishable commodity it becomes difficult to
preserve milk flora longer period. Besides when the milk was to be collected from the far
places, there was a fear of spoiling of milk. To overcome this problem the union thought out to
develop the chilling unit at various junctions, which would collect the milk and could chill it, so
as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centres in
various villages. Milk is collected from almost 1073 societies.

20
These demands were rejected by Government of
Bombay. The farmers went on fifteen day strike.
Milk was poured on the streets and not a drop was
given to Polson. Villagers were adamant on their
demands. As a result, BMS collapsed and
Polson’s milk collection came to a halt. In 1946,
the farmers under the leadership of Tribhuvandas
Patel registered Kaira District Cooperative Milk
Producers Union Limited (KDCMPUL).

Symbol of KDCMPUL

.The first office of the KDCMPUL

21
Entry of Dr. Kurien:

Dr. Verghese Kurien, a person who had then completed dairy engineering from Michigan State
University as a part of some government scholarship programme was sent to Anand as part of the
contract to work. He was assigned the task of manufacturing milk
powder out of buffalo milk from a government creamery. The work
was not at all exciting. This was the first time that Dr. Kurien got to
know about village cooperative from Tribuvandas Patel working at
the government research creamery just their next door. Dr. Kurien
would go and help these farmers in repairing the old machines on
which they were working in the creamery located just nearby to
where he was working. Dr. Kurien had been helping Tribhuvandas in
repairing the machines and somehow get their work done. Dr. Verghese Kurien

One day, Dr. Kurien said that repairing these machines would not help their union in the long run.
He suggested that they should purchase a plate pasteurizer. Tribhuvandas took some money on
loan from his brother-in-law and asked Dr. Kurien to order a plate pasteurizer next time he visits
Mumbai. Soon, the cooperative got a new plate pasteurizer. Dr. Kurien who had already sent his
resignation from his job finally got a reply of the acceptance of his resignation. When he was about
to leave Anand, he was approached by Tribhuvandas if he could stay back and further help the
cooperative with the operations of new machines. Dr. Kurien agreed to stay for two months for a
salary of Rs.600 per month. Later Dr. Kurien found himself so involved with the farmers that he
decided to stay there forever and help them. He formally joined KDCMPUL as General Manager
in 1950.

Soon, the milk production increased from 200 litres in 1948 to 20000 litres in 1952. Pasteurized
milk was being supplied from Anand to Bombay Milk Scheme through trains. Later, they faced an
unprecedented problem. The buffaloes give more milk in winter than summer. As a result, they
would get surplus milk in winter. Dr. Kurien thought of manufacturing milk powder out of it. He
was sent to New Zealand for a research fellow during 1952-53. When he returned, he started
thinking upon purchasing a new dairy plant for manufacturing milk powder out of buffalo milk.
Milk powder had never been prepared from buffalo milk and hence there were lots of people in
politics who were criticizing the idea. Also, it required huge set up cost.
22
In 1956, UNICEF representative Mr. Davis was in India. He suggested that UNICEF could assist
them in setting up the new plant if they could distribute milk to children and expectant mothers
completely free valued at one-and-half times the plant cost, to be repaid over a period of five years.
Dr. Kurien agreed. Also, he, along with his friend Mr. Dalaya demonstrated milk powder
production from buffalo milk in Bombay. As a result, he won trust of everyone and got the
assistance of UNICEF in setting up the plant. After some serious negotiation, the plant they got
was the Niro Plant manufactured by Larson and Toubro.

Creation of Amul:

During this time, Dr. Kurien’s wife’s brother-in-law, Mr. K.M. Philip, an entrepreneur himself,
suggested Dr. Kurien that he should start focusing upon nitty-gritties of marketing. Dr. Kurien
realized that they were able to sell milk and milk products only because there existed a market in
Bombay. Hence, he realized the importance of marketing. He studied marketing and started
discussing with people in the field. He then decided that they should have a brand name for their
products. During a brainstorming session, a chemist in their lab suggested a name, ‘Amul’. It had
come from the Sanskrit word, ‘Amulya’, meaning priceless. Dr. Kurien liked it as it was short,
easy to spell, pronounce and remember. Also, it could be thought of as an acronym for Anand Milk
Union 23iberal. Also, it was easier on tongue than Kaira District Cooperative Milk Producers Union
Limtied. All agreed to the brand name Amul. In 1957, the cooperative registered the brand name
Amul.

Later, Polson dairy which had started facing losses approached a few ministers for solution. Dr.
Kurien came out with a solution to divide Anand district into two regions, one from where Amul
dairy could obtain the milk and other from where Polson could purchase. Dr. Kurien carefully
planned the division in a manner that the villages which produced more milk came under the ambit
of Amul. Gradually, Polson lost its share and Amul started becoming a household name for milk
and butter. Amul also started baby food after some time.

23
Creation of Amul Girl – Utterly Butterly Delicious:

In 1966, Amul account was given to Advertising and Sales Promotion (ASP)
Company, Bombay. ASP was asked to dislodge Polson from their premier
brand position from Bombay. Eustace Fernandes then, created the famous
character of endearing and mischievous Amul girl. The team of Usha
Kartak, K. Kurien and Sylvester DaCunha gave the tagline of ‘Utterly,
Butterly Delicious’ – which broke all records of longest running ad
campaigns in the Indian advertising history.
The Amul Girl

Creation of GCMMF and Operation Flood:

Shree Lal Bahadur Shastri at Anand Dairy in 1964

In 1964, the then Prime Minister of India, Shri Lal Bahadur Shastri was invited to Anand for
inaugurating a plant at Kanjari, few kilometers from Anand. Shastriji visited Anand. He carefully

24
observed everything and appreciated the work of cooperatives and Dr. Kurien. He asked Dr.
Kurien to start working for the entire nation. Shastriji wanted Dr. Kurien to set up Anand model
in the entire nation.

Dr. Kurien accepted the idea and on his suggestion, National Dairy Development Board (NDDB)
was set up in 1965 at Anand to take up the project of creating several Amul’s in entire nation. A
board member argued that creating more Amul’s would mean creating competition for themselves.
But Shastriji was correct on his point that just one Amul would not be able to meet the demand of
milk and milk products of the entire nation. Moreover, several Amul’s would be a structure as
strong as clenched fist which would be difficult to break.

Dr. Kurien began drafting the document for operation flood with his old friend at dairy H.M.
st
Dalaya and a professor Michael Halse. The proposal was finalized on 31 October, 1968 and
approved by the government. They called it ‘Operation Flood’ which was later called as the
‘Billion Litre Idea’. They received funds from World Bank to carry out Operation Flood.

Operation flood was to be carried out in three phases. In the first


phase, they received skimmed powder milk and butter oil from
European Economic Community (EEC) as gifts through the World
Food Programme. They could, thereby, finance the First Phase by
selling these products. Also, they linked the eighteen of India’s
premier milk sheds with the markets of Delhi, Bombay, Calcutta and
Madras. The phase spanned through 1970s and took around ten years.

Symbol of the Operation Flood

The second phase lasted from 1981 to 1985. It was implemented from the seed capital raised from
the sale of EEC gifts and World Bank loan of Rs.200 crore. During this time, the number of milk
sheds increased from 18 to 136. In total, 43,000 village cooperatives were formed covering 4.25
million milk producers and more than 290 urban markets were established.

The third phase of Operation Flood lasted from 1985 to 1996. It increased the number of
cooperatives from 42,000 to 72,000. During this phase, the veterinary facilities were extended.
More emphasis was laid on research in dairy and animals.

25
Kurien to start working for the entire nation. Shastriji wanted Dr. Kurien to set up Anand model
in the entire nation.

Dr. Kurien accepted the idea and on his suggestion, National Dairy Development Board (NDDB)
was set up in 1965 at Anand to take up the project of creating several Amul’s in entire nation. A
board member argued that creating more Amul’s would mean creating competition for themselves.
But Shastriji was correct on his point that just one Amul would not be able to meet the demand of
milk and milk products of the entire nation. Moreover, several Amul’s would be a structure as
strong as clenched fist which would be difficult to break.

Dr. Kurien began drafting the document for operation flood with his old friend at dairy H.M.
st
Dalaya and a professor Michael Halse. The proposal was finalized on 31 October, 1968 and
approved by the government. They called it ‘Operation Flood’ which was later called as the
‘Billion Litre Idea’. They received funds from World Bank to carry out Operation Flood.

Operation flood was to be carried out in three phases. In the first


phase, they received skimmed powder milk and butter oil from
European Economic Community (EEC) as gifts through the World
Food Programme. They could, thereby, finance the First Phase by
selling these products. Also, they linked the eighteen of India’s
premier milk sheds with the markets of Delhi, Bombay, Calcutta and
Madras. The phase spanned through 1970s and took around ten years.

Symbol of the Operation Flood

The second phase lasted from 1981 to 1985. It was implemented from the seed capital raised from
the sale of EEC gifts and World Bank loan of Rs.200 crore. During this time, the number of milk
sheds increased from 18 to 136. In total, 43,000 village cooperatives were formed covering 4.25
million milk producers and more than 290 urban markets were established.

The third phase of Operation Flood lasted from 1985 to 1996. It increased the number of
cooperatives from 42,000 to 72,000. During this phase, the veterinary facilities were extended.
More emphasis was laid on research in dairy and animals.

26
During the period of Operation Flood, more and more village cooperatives were developing. These
cooperatives gradually entered into competition with one another. This could mean that the
cooperative structure could do more harm than good to the farmers by not generating sufficient
price for their milk production. A large cooperative was formed at Mehsana, which directly
competed with the Anand cooperative. As a result, in 1969, Dr. Kurien signed an agreement with
the Mehsana Dairy under which the Mehsana Dairy would produce butter and milk powder and
the products would be distributed under the brand name of
Amul. The same structure could be applied at state level to
avoid competition among the cooperatives. Hence, in 1973,
Gujarat Cooperative Milk Marketing Federation (GCMMF)
Limited was formed. Dr. Kurien became the Chairman and
Managing Director of the Federation and resigned as General
Manager of Amul. Since then, GCMMF is the apex body which
purchases milk and milk products from the 17 district level
cooperatives in Gujarat and involves into their marketing and
distribution. GCMMF Limited

Amul-The Taste of India:

In 1994, as Amul was making more and more products, there appeared a strong need for creating
a brand new logo which could depict the taste and diverse nature of the country. The Amul girl
covered only Amul butter. It took several sittings with Dr.
Kurien for advertising agencies to before reaching down to any
conclusion. Finally, Shri Kanon Krishna of Advertising and
Sales Promotion Company, Mumbai suggested the tagline
“The Taste of India”. Dr. Kurien readily approved it and it
became the new tagline of the leading brand. The logo of Amul

27
5.4 GCMMF:

28
29
Three Tier Amul Model
The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy
Cooperative Society at the village level affiliated to a Milk Union at the District level which in
turn is further federated into a Milk Federation at the State level. The above three-tier structure
was set-up in order to delegate the various functions, milk collection is done at the Village Dairy
Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products
Marketing at the State Milk Federation.

This helps in eliminating not only internal competition but also ensuring that economies of scale
are achieved. As the above structure was first evolved at Amul in Gujarat and thereafter
replicated all over the country under the Operation Flood Program, it is known as the ‘Amul
Model’ or ‘Anand Pattern’ of Dairy Cooperatives.

30
1.4 INDUSTRY ANALYSIS
Dairy Industry in India:
In India, the dairy sector plays an important role in the country’s socio-economic development,
and constitutes an important segment of the rural economy. Dairy industry provides livelihood to
millions of homes in villages, ensuring supply of quality milk and milk products to people in both
urban and rural areas. With a view to keeping pace with the country’s increasing demand for milk
and milk products, the industry has been growing rapidly.
India is one of the world’s largest milk producer, accounting for around 17% of the global milk
production. Besides, it is one of the largest producers as well as consumers of dairy products. Due
to their rich nutritional qualities, the consumption of dairy products has been growing
exponentially in the country.
With the rising use of dairy products, the secondary market for dairy products has also been
flourishing, our report observed. For this, we have included the analysis of secondary market for
dairy products, including tea, coffee, infant nutrition, malted foods, and bakery products.
The country is the worlds largest milk producer, accounting for more than 13% of the worlds total
milk production. It is the world’s largest consumer of dairy products, consuming almost 100% of
its own milk production. There are many Opportunities And Challenges in The Indian Dairy
Industry. Dairy products are a major source of cheap and nutritious food to millions of people in
India and the only acceptable source of animal protein for a large vegetarian segment of the Indian
population, particularly among the landless, small and marginal farmers and women. Dairying has
been considered as one of the activities aimed at alleviating the poverty and unemployment,
especially in the rural areas in the rain-fed and drought-prone regions. In India, about three-fourth
of the population live in rural areas and about 38% of them are poor. In 1986-87, about 73% of
rural households own livestock. Small and marginal farmers account for three-quarters of these
households owning livestock, raising 56% of the bovine and 66% of the sheep population.
According to the National Sample Survey of 1993-94, livestock sector produces regular
employment to about 9.8 million persons in principal status and 8.6 million in subsidiary status,
which constitute about 5% of the total work force. The progress in this sector will result in a more
balanced development of the rural economy.

Trade:
In spite of having largest milk production, India is a very minor player in the world market. India
was primarily an import dependent country till early seventies. Most of the demand-supply gaps
of liquid milk requirements for urban consumers were met by importing anhydrous milk fat / butter
and dry milk powders. But with the onset of Operation Flood Programme, the scenario
dramatically changed and commercial imports of dairy products came to a halt except occasional

31
imports of very small quantities. In the 1990s, India started exporting surplus dairy commodities,
such as SMP, WMP, butter and ghee. The Agricultural and Processed Food Products Export
Development Authority (APEDA) regulated the export and import of dairy products till early
1990s. However, in the new EXIM Policy announced in April 2000, the Union Government has
allowed the free import and export of most dairy products.
The major destinations for Indian dairy products are Bangladesh (23.1%), UAE (15.4%), US
(15.6%) and Philippines (8.9%). In terms of products, SMP is the most important product
accounting for about 63% of total export volume, followed by ghee and butter (11.7%) and WMP.
Export figures clearly demonstrate that the Indian dairy export is still in its infancy and the
surpluses are occasional. Indigenous milk products and desserts are becoming popular with the
ethnic population spread all over the world. Therefore, the export demand for these products will
increase and hence, there is a great potential for export.
On the other hand, there has been a sharp increase in import of dairy products (especially milk
powders) after trade 32iberalization. As per the latest report of Foreign Trade Statistics of
December 2004, the imports of dairy products (milk and cream) has reached a cumulative total of
22.145 million tonnes for the period April – March 2004, as compared to only 1473 million tonnes
for the same period during the previous year. The main reasons for sharp rise in imports are huge
export subsidies given by developed countries (mainly the US and EU).

Key Areas of Concern in the Dairy Industry:


Competitiveness, cost of production, productivity of animals etc. The demand for quality dairy
products is rising and production is also increasing in many developing countries. The countries
which are expected to benefit most from any increase in world demand for dairy products are those
which have low cost of production. Therefore, in order to increase the competitiveness of Indian
dairy industry, efforts should be made to reduce cost of production. Increasing productivity of
animals, better health care and breeding facilities and management of dairy animals can reduce the
cost of milk production. The Government and dairy industry can play a vital role in this direction.
Production, processing and marketing infrastructure If India has to emerge as an exporting country,
it is imperative that we should develop proper production, processing and marketing infrastructure,
which is capable of meeting international quality requirements. A comprehensive strategy for
producing quality and safe dairy products should be formulated with suitable legal backup.
Focus on buffalo milk based specialty Dairy industry in India is also unique with regard to
availability of a large proportion of buffalo milk. Thus, India can focus on buffalo milk based
specialty products, like Mozzarella cheese, tailored to meet the needs of the target consumers.
Import of value-added products and export of lower value products With the trade 32iberalization,
despite the attempts of Indian companies to develop their product range, it could well be that in
the future, more value-added products will be imported and lower value products will be exported.
The industry has to prepare themselves to meet the challenges.

32
Market Share and Competitors.

33
Ratio Analysis Of Amul Company:
(Amt. in Rs. Lakh)
Ratio Analysis – 2018
Particulars Formula Amount Ratio
Current Ratio Current Assets / 123222/170234 0.723
Current Liability
Liquid Ratio Liquid Assets/Liquid 33909/86009 0.394
Liabilities
Quick Ratio Quick Asset /Current 47302/170234 0.278
Liabilities
Fixed Asset Turnover Sales/Net Fixed 625626/101886 6.14
Ratio Assets
Current Asset Sales/Current Asset 625625/123222 5.077
Turnover Ratio
Working Capital Sales/C.A-C.L 625625/(123222- 13.31
Turnover Ratio 170234)
Table No 1: Ratio Analysis of Amul 2018

Ratio Analysis – 2017


Particulars Formula Amount Ratio
Current Ratio Current Assets / 91640/131622 0.6960
Current Liability
Liquid Ratio Liquid Assets/Liquid 24529/79147 0.309
Liabilities
Quick Ratio Quick Asset /Current 34377/131622 0.261
Liabilities
Fixed Asset Turnover Sales/Net Fixed 570032/84388 6.75
Ratio Assets
Current Asset Sales/Current Asset 570032/91640 6.22
Turnover Ratio
Working Capital Sales/C.A-C.L 570032/(91640- 14.26
Turnover Ratio 131622)
Table No 2: Ratio Analysis of Amul 2017

34
Industry Swot Analysis of Amul

Strengths Weaknesses
• Strong Brand Image • Low popularity of product categories
• Loyal Customer Base like Chocolate, Ice Creams etc.
• Strong Product Portfolio • Increasing cost of Operations
• Robust Supply and Distribution
Network
Opportunities Threats
• Potential to expand in small towns and • Increased competition from local and
other geographies global players in different product
• Potential of product line extension categories.
• Potential to increase awareness for
other product categories
• Tie-ups

35
CHAPTER 2
REVIEW OF LITERATURE

36
Philip Kotler (2015) define the marketing survey as “function that links the consumer, customer,
and public to the marketer through information-information used to identify and define marketing
opportunities and problems; to generate, refine, and evaluate marketing actions; to monitor
marketing performance; and to improve understanding of the marketing process. Marketing survey
specifies the information required to address these issues, designs the methods for collecting
information, manages and implements the data collection process, analyzes, and communicates
the findings and their implications..”
Briefly it is a systematic design, collection, analysis, and reporting of data and findings relevant to
a specific marketing situation facing the company, allows management to make the changes
necessary for better results through adopting a proactive approach. Therefore, if a company wants
to know what type of products or services would be profitable it should make a market research.
Furthermore, a comprehensive research will enable the company to know about the product
imperfections (if there are) and to know if it has been able to satisfy customers’ needs. It attempts
to provide accurate information that reflects a true state of affairs. Due to market survey the
company can formulate a viable marketing plan and estimate the success of its existing plan. There
are two main sources of marketing research information:
Primary marketing research is collected for the first time if the company has enough money to
finance it, but in most case it is the second more accurate one. It is original and collected for a
specific purpose, or to solve a specific problem. Primary research delivers more specific results
than secondary research, more expensive and time consuming, which are an especially important
consideration when the company is launching a new product or service. There are many ways to
conduct primary research. By customizing tried-and-true approaches, focus groups, surveys, field
tests, interviews or observation, you can gain information about your target market. Primary
research is generally based on sampling techniques and requires statistical methodologies. The
sample size could be as small as 1 percent of the market and thus the information and results
gathered are highly accurate.
Secondary marketing research or desk research is generally used when a company considering,
extending a business into new markets or adding new services or product lines, because it already
exist in one form or another. This information is based on studies previously performed by
government agencies, chambers of commerce, trade associations, and other organizations. There
are number of sources available to the marketers, which are the following: Business libraries,
Public records, Trade associations, Websites, National/international governments, Informal
contacts and Professional institutes and organizations. That is why secondary research is relatively
cheap, and can be conducted quite quickly. However, its main disadvantage is that the information
gathered may be old and obsolete, therefore results of analysis may be inaccurate. Further, it is not
necessary that the earlier studies were conducted with the same objectives as required in the current
situation.

37
CHAPTER 3
OBJECTIVES

38
3.1 Objectives of Research:

• To create awareness of consumers in the HoReCa segment towards Amul Liquid


Creamer, Amul Dairy Creamer Powder and Amul Lactose Free Milk by personally
visiting the target market for these products and promoting them at Hotels and Hospitals.
• To know the preference of Amul products with comparison to other competitive brands
with respect to the products Amul Liquid Creamer, Amul Dairy Creamer Powder and
Amul Lactose Free Milk.
• To know the factors which affects consumer’s buying behaviour while purchasing Amul
Liquid Creamer, Amul Dairy Creamer Powder and Amul Lactose Free Milk.
• SWOT analysis of Amul Liquid Creamer, Amul Dairy Creamer Powder and Amul
Lactose Free Milk.
• Interest the customers in the HoReCa segment, Generate Leads, take regular follow-ups
and increase the sale of Amul Liquid Creamer, Amul Dairy Creamer Powder and Amul
Lactose Free Milk.

39
CHAPTER 4
RESEARCH METHODOLOGY

40
4.1 Data Collection:
The primary data has been obtained from the PURCHASE MANAGERS of Hotels and
Hospitals in Thane, through circulation of the structured questionnaire.

4.2 Sampling Plan:


The sample for survey would be taken on the following basis.

• Sample Frame: PURCHASE MANAGERS of Hotels and Hospitals in Thane

• Sample Unit: Purchase Managers

• Sample Size:
1) Amul Liquid Creamer – 40 hotels
2) Amul Dairy Creamer Powder – 40 hotels
3) Amul Lactose free milk – 10 hospitals.

• Time Frame: 75 Days.

• Sampling Method: The Sampling technique used is Purposive Sampling.

4.3 Research Instrument:


The most commonly used research instrument in survey strategy is questionnaire. By using this
technique, each and every respondent are given or distributed manually and are asked to answer
the same set of questions in a prearranged order by using this kind of technique. The
questionnaire will be in paper-based questionnaires. In addition, the question will be closed
ended to get opinion of the respondents.

4.4 Limitations of the Study:


• The geographic scope of the study is limited to Thane city only.
• The time period for the study may not be sufficient for such a vast topic.
• At times it is difficult to have an interaction with the purchase mangers as they are not
present in the premises during the visits.
• Difficulty in having an appointment with the managers because of their busy schedule.
• The information given by the respondent of other may be biased.
• For the whole research and analysis, only a few major competitor brands can be
highlighted, leaving aside the other non-popular brand.

41
CHAPTER 5
DATA ANALYSIS AND
OBSERVATIONS

42
5.1 Amul Liquid Creamer –
• Hotel visits:
I visited the premium hotels present in Thane. The summary of the same is presented below:

Table No.3: Hotel Visits for Amul Liquid Creamer

Hotel Area Sample Current Remarks Follow up


given Product

Ginger Gokul Nagar 01 Nestle The purchase manager was They will order once
Hotel Everyday impressed with the the previous stock
gets over.
Creamer characteristics of product like
easy to open, easy to use, easy
to mix. However, found the
product to be a bit expensive
compared to Nestle Everyday
Creamer.

Hotel Thane 01 Nestle Showed interest in the No meeting could be


done later even after
Regency Railway Everyday product However found the several follow-up
Station Creamer product to be a bit expensive visits and phone
calls to the
compared to Nestle Everyday concerned person
Creamer

DE Ghodbunder 01 Nestle Found the product to be Did not show


interest in
Grandeur Road Everyday expensive compared to Nestle purchasing the liquid
Hotels & Everyday Creamer creamer

Boutique

The Byke Ghodbunder 01 Nestle Showed interest in the Wants the pricing to
be at Rs.1.67/-
Suraj Plaza Road Everyday product However found the .Actual price of
product to be a bit expensive product is Rs.2.10/-
compared to Nestle Everyday

43
Creamer

Vihang Ghodbunder 01 Nestle Used liquid creamer Did not show


interest in
Kuber Road Everyday previously however had purchasing the liquid
Hospitality customer complaints that the creamer
creamer is spoilt and had dust
and other foreign particles in
it hence they shifted to Nestle
Everyday powder

Wood Stock Kajupada 01 Nestle Showed interest in the No meeting could be


done later even after
Acres Villa Village Everyday product However found the several follow-up
Resort product to be a bit expensive visits and phone
calls to the
compared to Nestle Everyday concerned person
Creamer

Chene Kajupada 01 Nestle The purchase manager liked They will order once
the previous stock
Creek Village Everyday the product gets over.
Resorts

Sea N Rock Thane toll 01 Amul Milk Serve Tea and coffee from Interested in deal for
Amul Ice-cream.
Naka restaurant so do not want the Want to purchase in
creamer. bulk.

Hotel Kapurbawdi 01 Nestle Showed interest in the Did not show


interest in
Spencer Everyday product However found the purchasing the liquid
product to be a bit expensive creamer
compared to Nestle Everyday
Creamer

44
Hotel Ghodbunder 01 Nestle Found the product to be Did not show
interest in
Capitol Road Everyday expensive compared to Nestle purchasing the liquid
Everyday Creamer creamer

Hotel Eastern 01 Nestle Showed interest in the Will speak with the
Housekeeping team
Lerida Express Everyday product However found the for finalizing the
Highway product to be a bit expensive product
compared to Nestle Everyday

Fortune Eastern 01 Nestle The purchase manager liked They will order once
the previous stock
Lake Park Express Everyday the product gets over.
City Highway

Hotel Manpada 01 Nestle The purchase manager liked They will order once
the previous stock
Silvador Everyday the product gets over.
Boqtique

Hotel Tip Raheja 01 Nestle Showed interest in the Did not show
interest in
Top Plaza Garden Everyday product However found the purchasing the liquid
product to be a bit expensive creamer
compared to Nestle Everyday

Hotel VITS Eastern 01 Amul Dairy Liked the product however Prefer dairy creamer
powder as it is
Sharanam Express Creamer already using Amul Dairy cheaper compared to
Highway Powder Creamer Powder liquid creamer

Shreya Ghodbunder 01 Gowardhan Serve Tea and coffee from Did not show
interest in
Lodging Road Milk restaurant so do not want the purchasing the liquid
creamer. creamer as it is
expensive

45
Ratna LBS Road 01 Gowardhan Serve Tea and coffee from Did not show
interest in
Palace Milk restaurant so do not want the purchasing the liquid
Residency creamer. creamer as it is
expensive

Hotel LBS Road 01 Gowardhan Serve Tea and coffee from Did not show
interest in
Dwarka Milk restaurant so do not want the purchasing the liquid
Residency creamer. creamer as it is
expensive

Hotel Dhiraj Louis Wadi 01 Gowardhan Serve Tea and coffee from Did not show
interest in
Residency Milk restaurant so do not want the purchasing the liquid
creamer. creamer as it is
expensive

Hotel Satkar Wagle Estate 01 Nestle The purchase manager liked They will order once
the previous stock
Grande Everyday the product gets over.
Creamer

Hotel Satkar Cadbury 01 Nestle The purchase manager liked They will order once
the previous stock
Residency Junction Everyday the product gets over.
Creamer

Hotel Mira- 01 Gowardhan Serve Tea and coffee from Did not show
interest in
Voxton Bhayander Milk restaurant so do not want the purchasing the liquid
Road creamer. creamer as it is
expensive

GCC Hotels Mira- 01 Nestle Showed interest in the Did not show
interest in
Pvt. Ltd. Bhayander Everyday product However found the purchasing the liquid
Road product to be a bit expensive creamer
compared to Nestle Everyday

46
7-11 Club. Mira- 01 Nestle Showed interest in the Did not show
interest in
Bhayander Everyday product However found the purchasing the liquid
Road product to be a bit expensive creamer
compared to Nestle Everyday

Hotel Mira- 01 Gowardhan Serve Tea and coffee from Did not show
interest in
Voxton Bhayander Milk restaurant so do not want the purchasing the liquid
Road creamer. creamer as it is
expensive

Hotel Western 01 Gowardhan Serve Tea and coffee from Did not show
interest in
Sunshine Express Milk restaurant so do not want the purchasing the liquid
Inn Highway creamer. creamer as it is
expensive

Seasons Western 01 Nestle Purchase manager told to No meeting could be


done later even after
Banquets Express Everyday come next week. several follow-up
Highway visits and phone
calls to the
concerned person
Shelter Inn Western 01 Nestle Purchase manager told to No meeting could be
done later even after
Express Everyday come next week. several follow-up
Highway visits and phone
calls to the
concerned person
Hotel Western 01 Gowardhan Serve Tea and coffee from Did not show
interest in
Fountain Express Milk restaurant so do not want the purchasing the liquid
Highway creamer. creamer as it is
expensive

Hotel Western 01 Nestle Showed interest in the Did not show


interest in
Express Inn Express Everyday product However found the purchasing the liquid
Highway product to be a bit expensive creamer
compared to Nestle Everyday

47
Sai Palace Western 01 Amul Milk Serve Tea and coffee from Did not show
interest in
Hotels and Express restaurant so do not want the purchasing the liquid
Gardens Highway creamer. creamer as it is
expensive

Hotel Lokmanya 01 Nestle Purchase manager told to No meeting could be


done later even after
Vinyasa Nagar Everyday come next week. several follow-up
Creamer visits and phone
calls to the
concerned person
Hotel Delhi Thane toll 01 Nestle Purchase manager told to No meeting could be
done later even after
Darbar Inn naka Everyday come next week. several follow-up
Creamer visits and phone
calls to the
concerned person
Hotel VITS Upper Thane 01 Amul Dairy Liked the product however Prefer dairy creamer
powder as it is
Upper – Bhiwandi creamer already using Amul Dairy cheaper compared to
Thane powder Creamer Powder liquid creamer

Hotel Upper Thane 01 Nestle Purchase manager told to No meeting could be


done later even after
Vatika – Bhiwandi Everyday come next week. several follow-up
Creamer visits and phone
calls to the
concerned person
Saya Grand Upper Thane 01 Nestle Purchase manager told to No meeting could be
done later even after
Club and – Bhiwandi Everyday come next week. several follow-up
Spa Resort Creamer visits and phone
calls to the
concerned person
Hotel Upper Thane 01 Nestle Purchase manager told to No meeting could be
done later even after
Gopaldas – Bhiwandi Everyday come next week. several follow-up
Residencuy Creamer visits and phone
calls to the
concerned person

48
Hotel Upper Thane 01 Nestle Purchase manager told to No meeting could be
done later even after
Solidare – Bhiwandi Everyday come next week. several follow-up
Residency Creamer visits and phone
calls to the
concerned person
Hotel Bhayender 01 Amul Milk Serve Tea and coffee from Did not show
interest in
Crown King Easr restaurant so do not want the purchasing the liquid
creamer. creamer as it is
expensive

Hotel Time GCC Club 01 Amul Milk Serve Tea and coffee from Did not show
interest in
Sqaure Road restaurant so do not want the purchasing the liquid
creamer. creamer as it is
expensive

49
Data Analysis and Interpretation of Amul Liquid Creamer

Q.1 Which product you are using currently


for providing tea or coffee at rooms?

21

10
7
2
NESTLE EVERYDAY AMUL DAIRY GOWARDHAN MILK AMUL MILK
CREAMER CREAMER POWDER

Illustration No 1: Current Product Used

Interpretation: Majority of hotels are using Nestle everyday creamer for providing tea and coffee at
rooms thus making it our main competitor for Amul Liquid Creamer. A few hotels are prefer using
milk rather than a creamer to serve tea and coffee at rooms.

Q2. Before the meet were you aware of


the product Amul Liquid Creamer?

a. Yes
23%
a. Yes
b. No
b. No
77%

Illustration No 2: Product Awareness

Interpretation: Majority of hotels were not aware of the product Amul Liquid Creamer. Hence the
product has not been well marketed in Thane market for HoReCa segment.

50
Q3. Have you previously used the Amul
Liquid Creamer?

a. Yes
6%

a. Yes
b. No

b. No
94%

Illustration No 3: Previous Usage

Interpretation: As there is very less awareness of the product in the HoReCa segment very few
hotels have previously tried using the Amul Liquid Creamer. Increased product awareness may
increase the sales of the product.

Q4. Rate Amul Liquid Creamer with


reference to Taste

15

12

0 1 3
POOR FAIR NEUTRAL GOOD VERY GOOD EXCELLENT

Illustration No 4: Rating w.r.t Taste

Interpretation: Majority of Hotels find that the taste of Amul Liquid Creamer better compared to the
product they are currently using.

51
Q5. Rate Amul Liquid Creamer with
reference to Solubility

15
13
11

0 0 1
POOR FAIR NEUTRAL GOOD VERY GOOD EXCELLENT

Illustration No 5: Rating w.r.t Solubility

Interpretation: Majority of Hotels find that the solubility of Amul Liquid Creamer better compared
to the product they are currently using. It was found that Liquid creamer has better solubility
compared to powdered creamer.

Q6. Rate Amul Liquid Creamer with


reference to Price

16

12

6
5
1 0
POOR FAIR NEUTRAL GOOD VERY GOOD EXCELLENT

Illustration No 6: Rating w.r.t Price

Interpretation: Majority of Hotels find that the pricing of Amul Liquid Creamer is more compared to
the product they are currently using. Amul Liquid Creamer is priced at Rs.2.10 whereas Nestle
Everyday Creamer is priced at Rs.1.80 per unit.

52
Q7. Rate Amul Liquid Creamer with
reference to Quantity

15

12

5
0 0
POOR FAIR NEUTRAL GOOD VERY GOOD EXCELLENT

Illustration No 7: Rating w.r.t Quantity

Interpretation: Majority of Hotels find that the quantity of Amul Liquid Creamer is more compared
to the product they are currently using. Amul Liquid Creamer weighs at 10 gms whereas Nestle
Everyday Creamer weighs at 4 gms per unit. One liquid creamer is sufficient to make one cup of Tea
or Coffee.

Q8. Did you like the packaging of Amul


Liquid Creamer?

b. No
6%

a. Yes
b. No

a. Yes
94%

Illustration No 8: Liking towards Packaging

Interpretation: Majority of Hotels have like the packaging used for Amul Liquid Creamer. They said
that it gives the product an aesthetic look which pleases the eye. Also the product is easy to use.

53
Q9. Did you find Amul Liquid Creamer better as
compared with the product you are currently
using?

b. No
14%
a. Yes
b. No
a. Yes
86%

Illustration No 9: Liking w.r.t current product used

Interpretation: Majority of Hotels have believed that the Amul Liquid Creamer is better than the
product that they are currently using.

Q10. Would you prefer switching to Amul


Liquid Creamer?

b. No a. Yes
43% a. Yes
b. No
57%

Illustration No 10: Willingness to switch

Interpretation: Majority of hotels would prefer switching to Amul Liquid Creamer due to factors like
Taste, Quantity, Packaging. Other hotels believe that the Amul Liquid Creamer is quite expensive as
compared to the product that they are currently using and thus would stick to the current product they
are using.

54
5.2 Amul Dairy Creamer Powder:
• Hotel visits:
I visited the premium hotels present in Thane. The summary of the same is presented below:

Table No.4: Hotel Visits for Amul Dairy Creamer Powder

Hotel Area Sample Current Remarks Follow up


given Product

Ginger Gokul Nagar 01 Nestle The purchase manager They will order liquid
Hotel Everyday liked the product as it creamer once the previous
stock gets over.
Creamer is cheaper compared to
Nestle Everyday
Creamer. However
more interested in
Liquid Creamer

Hotel Thane 02 Nestle The purchase manager No meeting could be done


later even after several
Regency Railway Everyday liked the product as it is follow-up visits and phone
Station cheaper compared to calls to the concerned
Creamer person
Nestle Everyday
Creamer.

DE Ghodbunder 02 Nestle The purchase manager They will order the dairy
creamer powder once the
Grandeur Road Everyday liked the product as it is previous stock gets over.
Hotels & cheaper compared to
Boutique Nestle Everyday
Creamer.

The Byke Ghodbunder 03 Nestle The purchase manager Have ordered 2880 units of
dairy creamer powder.
Suraj Plaza Road Everyday liked the product as it is
cheaper compared to
Nestle Everyday

55
Creamer.

Vihang Ghodbunder 01 Nestle The purchase manager Finds the package size quite
huge i.e 2880 units however
Kuber Road Everyday liked the product as it is interested if package size
Hospitality cheaper compared to reduced to 1400 units

Nestle Everyday
Creamer.

Wood Kajupada 01 Nestle The purchase manager No meeting could be done


later even after several
Stock Village Everyday liked the product as it is follow-up visits and phone
Acres Villa cheaper compared to calls to the concerned
person
Resort Nestle Everyday
Creamer.

Chene Kajupada 02 Nestle The purchase manager They will order the liquid
creamer once the previous
Creek Village Everyday liked the product as it is stock gets over.
Resorts cheaper compared to
Nestle Everyday
Creamer. However
more inclined towards
liquid creamer

Sea N Thane toll 01 Amul Milk Serve Tea and coffee Interested in deal for Amul
Ice-cream .Want to purchase
Rock Naka from restaurant so do in bulk.
not want the creamer.

Hotel Kapurbawdi 01 Nestle The purchase manager Finds the package size quite
huge i.e 2880 units however
Spencer Everyday liked the product as it is interested if package size
cheaper compared to reduced to 1400 units

Nestle Everyday
Creamer.

56
Hotel Ghodbunder 01 Nestle The purchase manager Did not show interest in
purchasing the dairy
Capitol Road Everyday liked the product as it is creamer powder.
cheaper compared to
Nestle Everyday
Creamer.

Hotel Eastern 01 Nestle The purchase manager Will speak with the
Housekeeping team for
Lerida Express Everyday liked the product as it is finalizing the product
Highway cheaper compared to
Nestle Everyday
Creamer.

Fortune Eastern 02 Nestle The purchase manager They will order the liquid
creamer once the previous
Lake Park Express Everyday liked the product as it is stock gets over.
City Highway cheaper compared to
Nestle Everyday
Creamer. However
more inclined towards
liquid creamer

Hotel Manpada 02 Nestle The purchase manager They will order the liquid
creamer once the previous
Silvador Everyday liked the product as it is stock gets over.
Boqtique cheaper compared to
Nestle Everyday
Creamer. However
more inclined towards
liquid creamer

Hotel Tip Raheja 01 Nestle The purchase manager Did not show interest in
purchasing the dairy
Top Plaza Garden Everyday liked the product as it is creamer powder.
cheaper compared to
Nestle Everyday
Creamer. However
more inclined towards

57
liquid creamer

Hotel Eastern 01 Amul Dairy Already using dairy Happy using the dairy
creamer powder.
VITS Express Creamer creamer powder
Sharanam Highway Powder

Shreya Ghodbunder 01 Gowardhan Serve Tea and coffee Did not show interest in
purchasing the creamer
Lodging Road Milk from restaurant so do
not want the creamer.

Ratna LBS Road 01 Gowardhan Serve Tea and coffee Did not show interest in
purchasing the creamer
Palace Milk from restaurant so do
Residency not want the creamer.

Hotel LBS Road 01 Gowardhan Serve Tea and coffee Did not show interest in
purchasing the creamer
Dwarka Milk from restaurant so do
Residency not want the creamer.

Hotel Louis Wadi 01 Gowardhan Serve Tea and coffee Did not show interest in
purchasing the creamer
Dhiraj Milk from restaurant so do
Residency not want the creamer.

Hotel Wagle Estate 01 Nestle The purchase manager They will order the liquid
creamer once the previous
Satkar Everyday liked the product stock gets over.
Grande Creamer However more inclined
towards liquid creamer

58
Hotel Cadbury 01 Nestle The purchase manager They will order the liquid
creamer once the previous
Satkar Junction Everyday liked the product stock gets over.
Residency Creamer However more inclined
towards liquid creamer

Hotel Mira- 01 Gowardhan Serve Tea and coffee Did not show interest in
purchasing the creamer
Voxton Bhayander Milk from restaurant so do
Road not want the creamer.

GCC Mira- 01 Nestle Showed interest in the Needs approval for the dairy
creamer powder from senior
Hotels Pvt. Bhayander Everyday product However found will order once approval
Ltd. Road the product to be a bit given
expensive compared to
Nestle Everyday

7-11 Club. Mira- 01 Nestle Showed interest in the Did not show interest in
purchasing the dairy
Bhayander Everyday product However found creamer powder
Road the product to be a bit
expensive compared to
Nestle Everyday

Hotel Mira- 01 Gowardhan Serve Tea and coffee Did not show interest in
purchasing the dairy
Voxton Bhayander Milk from restaurant so do creamer powder
Road not want the creamer.

Hotel Western 01 Gowardhan Serve Tea and coffee Did not show interest in
purchasing the dairy
Sunshine Express Milk from restaurant so do creamer powder
Inn Highway not want the creamer.

Seasons Western 01 Nestle Purchase manager told No meeting could be done


later even after several
Banquets Express Everyday to come next week. follow-up visits and phone
Highway calls to the concerned
person

59
Shelter Inn Western 01 Nestle Purchase manager told No meeting could be done
later even after several
Express Everyday to come next week. follow-up visits and phone
Highway calls to the concerned
person

Hotel Western 01 Gowardhan Serve Tea and coffee Did not show interest in
purchasing the dairy
Fountain Express Milk from restaurant so do creamer powder
Highway not want the creamer.

Hotel Western 01 Nestle Showed interest in the Did not show interest in
purchasing the dairy
Express Express Everyday product However found creamer powder
Inn Highway the product to be a bit
expensive compared to
Nestle Everyday

Sai Palace Western 01 Amul Milk Serve Tea and coffee Did not show interest in
purchasing the dairy
Hotels and Express from restaurant so do creamer powder
Gardens Highway not want the creamer.

Hotel Lokmanya 01 Nestle Purchase manager told No meeting could be done


later even after several
Vinyasa Nagar Everyday to come next week. follow-up visits and phone
Creamer calls to the concerned
person

Hotel Thane toll 01 Nestle Purchase manager told No meeting could be done
later even after several
Delhi naka Everyday to come next week. follow-up visits and phone
Darbar Inn Creamer calls to the concerned
person

Hotel Upper Thane 01 Amul Dairy Liked the product Prefer dairy creamer powder
as it is cheaper compared to
VITS – Bhiwandi creamer however already using liquid creamer
Upper powder Amul Dairy Creamer
Thane Powder

60
Hotel Upper Thane 01 Nestle Purchase manager told No meeting could be done
later even after several
Vatika – Bhiwandi Everyday to come next week. follow-up visits and phone
Creamer calls to the concerned
person

Saya Upper Thane 01 Nestle Purchase manager told No meeting could be done
later even after several
Grand – Bhiwandi Everyday to come next week. follow-up visits and phone
Club and Creamer calls to the concerned
person
Spa Resort

Hotel Upper Thane 01 Nestle Purchase manager told No meeting could be done
later even after several
Gopaldas – Bhiwandi Everyday to come next week. follow-up visits and phone
Residencuy Creamer calls to the concerned
person

Hotel Upper Thane 01 Nestle Purchase manager told No meeting could be done
later even after several
Solidare – Bhiwandi Everyday to come next week. follow-up visits and phone
Residency Creamer calls to the concerned
person

Hotel Bhayender 01 Amul Milk Serve Tea and coffee Did not show interest in
purchasing the dairy
Crown Easr from restaurant so do creamer powder
King not want the creamer.

Hotel Time GCC Club 01 Amul Milk Serve Tea and coffee Did not show interest in
purchasing the dairy
Sqaure Road from restaurant so do creamer powder
not want the creamer.

61
Data Analysis and Interpretation of Amul Dairy Creamer Powder
Q.1 Which product you are using currently
for providing tea or coffee at rooms?

21

10
7
2
NESTLE EVERYDAY AMUL DAIRY GOWARDHAN MILK AMUL MILK
CREAMER CREAMER POWDER

Illustration No 11: Current Product Used

Interpretation: Majority of hotels are using Nestle everyday creamer for providing tea and coffee at
rooms thus making it our main competitor for Amul Dairy Creamer Powder. A few hotels are prefer
using milk rather than a creamer to serve tea and coffee at rooms.

Q2. Before the meet were you aware of


the product Amul Dairy Creamer Powder?

a. Yes
23%
a. Yes
b. No
b. No
77%

Illustration No 12: Product Awareness

Interpretation: Majority of hotels were not aware of the product Amul Dairy Creamer Powder.
Hence the product has not been well marketed in Thane market for HoReCa segment.

62
Q3. Have you previously used the Amul
Dairy Creamer Powder?

a. Yes
6%

a. Yes
b. No

b. No
94%

Illustration No 13: Previous Usage

Interpretation: As there is very less awareness of the product in the HoReCa segment very few
hotels have previously tried using the Amul Dairy Creamer Powder. Increased product awareness may
increase the sales of the product.

Q4. Rate Amul Dairy Creamer Powder


with reference to Taste

17
16

1 1 2 3
POOR FAIR NEUTRAL GOOD VERY GOOD EXCELLENT

Illustration No 14: Rating w.r.t Taste

Interpretation: Majority of hotels did not find any difference in the taste of Amul Dairy Creamer
Powder and Nestle Everyday Creamer. Amul Dairy Creamer Powder lacked in Taste when it comes
to differentiating itself from its competitors.

63
Q5. Rate Amul Dairy Creamer Powder
with reference to Solubility

13
12
10

1 3 1
POOR FAIR NEUTRAL GOOD VERY GOOD EXCELLENT

Illustration No 15: Rating w.r.t Solubility

Interpretation: Majority of hotels found that that the Amul dairy creamer powder lacked the
solubility which is at par when compared to Nestle Everyday Creamer.

Q6. Rate Amul Dairy Creamer Powder


with reference to Price

17
15

4 4
0 0
POOR FAIR NEUTRAL GOOD VERY GOOD EXCELLENT

Illustration No 16: Rating w.r.t Price

Interpretation: Majority of Hotels find that the pricing of Amul Dairy Creamer Powder is less
compared to the product they are currently using. Amul Dairy Creamer Powder is priced at Rs.0.90
whereas Nestle Everyday Creamer is priced at Rs.1.80 per unit.

64
Q7. Rate Amul Dairy Creamer Powder
with reference to Quantity

14
12

4
2 0
POOR FAIR NEUTRAL GOOD VERY GOOD EXCELLENT

Illustration No 17: Rating w.r.t Quantity

Interpretation: Majority of Hotels find that the quantity of Amul Liquid Creamer is less compared to
the product they are currently using. Amul Dairy Creamer Powder weighs at 3 gms whereas Nestle
Everyday Creamer weighs at 4 gms per unit. Two units of Amul Dairy Creamer Powder is required to
make one cup of Tea or Coffee.

Q8. Did you like the packaging of Amul


Dairy Creamer Powder?

No
20%
Yes
No
Yes
80%

Illustration No 18: Liking towards Packaging

Interpretation: Majority of Hotels have liked the packaging used for Amul Liquid Creamer.

65
Q9. Did you find Amul Dairy Creamer Powder
better as compared with the product you are
currently using?

No
29%
Yes
No
Yes
71%

Illustration No1 9: Liking w.r.t current product used

Interpretation: Majority of Hotels believe that the Amul Dairy Creamer Powder is better than the
product that they are currently using.

Q10. Would you prefer switching to Amul


Dairy Creamer Powder?

No, 23%
Yes
No

Yes, 77%

Illustration No 20: Willingness to switch

Interpretation: Majority of hotels would prefer switching to Amul Dairy Creamer due to factors like
Pricing which is 50% less than what they are currently paying for Nestle Everyday Creamer. Other
hotels believe that the Amul Dairy Creamer Powder has high quantity packaging 2880 units per box.
Their current requirement is 50 % of the box size. i.e 1400 units on an average and thus would stick to
Nestle Everyday Creamer.

66
5.3 Amul Lactose Free Milk:

• Hospital visits:
I visited the hospitals present in Thane. The summary of the same is presented below:
Table No.4: Hospital Visits for Amul Lactose Free Milk

Hospital Area Sample Remarks

given

Jupiter Hospitals Eastern Express 1 The purchase manager liked the


Highway product and will inform if there is any
requirement for the same.

Vedant Hospitals Ghodbunder Road 1 The purchase manager liked the product
but found it expensive.

Bethany Hospital Shastri Nagar 1 The purchase manager liked the product
and will inform if there is any
requirement for the same.

Thane Noble Ghodbunder Road 1 There is no requirement for the


Hospital following product at this hospital.

Hiranandani Patlipada 1 The purchase manager liked the product

Hospital and will inform if there is any


requirement for the same.

Titan Hospital Manpada 1 There is no requirement for the


following product at this hospital.

67
Horizon Hospital M.G. Road 1 There is no requirement for the
following product at this hospital

Currae Speciality Kapurbawdi 1 There is no requirement for the


Hospital Junction following product at this hospital

Lifeline Hospital Khopat 1 There is no requirement for the


Thane following product at this hospital

Oscar Hospital Manpada 1 The purchase manager liked the product


but found it expensive.

68
Data Analysis and Interpretation of Amul Lactose Free Milk

Q1. Before the meet were you aware of


the product Amul Lactose Free Milk?

Yes
10%
Yes
No

No
90%

Illustration No 21: Product Awareness

Interpretation: Majority of the hospitals were not aware of the product Amul Lactose Free Milk.
Hence the product has not been well marketed in Thane market.

Q2. Earlier was there any requirement for


Lactose free milk at your hospital?

Yes
10%
Yes
No

No
90%

Illustration No 22: Product Requirement

Interpretation: All the hospitals which were covered in the Thane region previously did not have
a major requirement for lactose free milk earlier hence stating that there is very less demand for
Lactose free milk in this market..

69
Q3. Rate Amul Lactose Free Milk with
reference to Taste

2 2
0 0 1
POOR FAIR NEUTRAL GOOD VERY GOOD EXCELLENT

Illustration No 23: Rating w.r.t Taste

Interpretation: Majority of Hospitals find that the taste of Amul Lactose free milk is better compared
to the normal milk.

Q4. Rate Amul Lactose Free Milk with


reference to Quantity

1 1 1
0
POOR FAIR NEUTRAL GOOD VERY GOOD EXCELLENT

Illustration No 24: Rating w.r.t Quantity

Interpretation: Majority of Hospitals find that the quantity of Amul Lactose Free Milk is less
compared to normal milk for the price which they are paying. 500 ml pouch of milk is available at
Rs.24 in the market where as Amul Lactose free milk has only 250 ml to offer at the same price.

70
Q5. Rate Amul Lactose Free Milk with
reference to Price

2 2

1 1
0
POOR FAIR NEUTRAL GOOD VERY GOOD EXCELLENT

Illustration No 25: Rating w.r.t Price

Interpretation: Majority of Hospitals find that the pricing of Amul Lactose free milk is much higher
compared to normal milk. 250 ml pack of Amul lactose free milk costs Rs.23.50 whereas normal milk
costs Rs.25 for 500 ml.

Q6. Did you like the packaging of Amul


Lactose Free Milk?

No, 10%

Yes
No

Yes, 90%

Illustration No 26: Liking towards Packaging

Interpretation: Majority of Hospitals liked the packaging of Amul Lactose free milk pack with
functionality of re-cap prevents spillage and multiple time use. Re-cap gives easy carrying and
handling experience to consumers especially during travel.

71
Q7. Would you prefer switching to Amul
Lactose Free Milk?

Yes
20%
Yes
No
No
80%

Illustration No 27: Willingness to switch

Interpretation: Majority of Hospitals stated that they will not switch to Amul Lactose Free Milk as
there is no specific need for the following product and the demand is very less, however a few
hospitals have said that if incase need arises they will definitely order Amul Lactose Free Milk.

72
CHAPTER 6
CONCLUSION

73
6.1 Conclusion:
The research draws attention to the fact that 85 % of the target population were unaware that these
products exist in the market. Their key competitors in the creamer range Nestle Everyday Creamer
currently hold more than 80 % of the market share in hotels that provide products for making
Tea/Coffee in the room and there is a rare demand for Amul Lactose Free Milk in Thane market.
When it comes to quality of products and brand image in the market Amul holds an upper hand
over its competitor Nestle everyday creamer in the creamer category however falls short in pricing,
stock availability and margins. Amul Lactose Free milk is not able to prove itself a successful
product because of the lack of knowledge of its health benefits among the dealers as well as
customers
Further investigations reveal that this market is highly price sensitive and prefers procuring stock
at the least price possible without focusing on the quality and brand of the products which they
will use. Distributors are highly focused on Amul fresh products such as milk, butter, cheese
,cream etc as these products posses a high demand in the market and the creamers and lactose free
milk are overlooked upon by the distributors due to their lesser demand and product knowledge in
the market.

6.2. Table of Objectives:

Table No 6: List of Objectives with corresponding conclusions

Objectives Conclusions
1. To know the preference of products with • Nestle Everyday Creamer holds the
comparison to other competitive brands with majority of share in the market i.e 80
respect to the products Amul Liquid Creamer, % of hotels that provide products for
Amul Dairy Creamer Powder and Amul making Tea/Coffee in the room use
Lactose Free Milk. Nestle Everyday Creamer as it is
cheaper in price and stock is available
throughout the year.
• Amul Lactose Free milk is not able to
prove itself a successful product
because of the lack of knowledge of
its health benefits among the dealers
as well as customers.

74
2.To create awareness of consumers in the • All the premium hotels and hospitals
HoReCa segment towards Amul Liquid were covered present in Thane city to
Creamer, Amul Dairy Creamer Powder and create awareness of consumers in the
Amul Lactose Free Milk by personally HoReCa segment towards Amul
Liquid Creamer, Amul Dairy Creamer
visiting the target market for these products
Powder and Amul Lactose Free Milk.
and promoting them at Hotels and Hospitals. • Personally, visited the target hotels
and hospitals for these products and
promoted them by sampling and
feedback for these products were
taken by conducting survey through
the mode of questionnaire.
3.To know the factors which affects • Pricing
consumer’s buying behaviour while • Availability of stock
purchasing Amul Liquid Creamer, Amul • Margins provided by the company
Dairy Creamer Powder and Amul Lactose • Taste
Free Milk. • Quantity
• Packaging
• Solubility (For Creamers)

4.Interest the customers in the HoReCa • Generated leads and received orders
segment, Generate Leads, take regular follow- for Amul Creamers.
ups and increase the sale of Amul Liquid • Generated leads for Lactose free milk
Creamer, Amul Dairy Creamer Powder and however due to low demand for the
Amul Lactose Free Milk product orders are based solely if there
are specific requirements for the
patients who are lactose intolerant.

75
5. SWOT analysis of Amul Liquid Creamer, Amul Dairy Creamer Powder and Amul
Lactose Free Milk.

Amul Liquid Creamer:


Strengths Weaknesses
• Creamer is a better replacement to • Strong hold of milk powder. •
milk powder. • • Target consumers reluctant to put
• Strong shelf life faith in a new product.
• Aesthetic Look • Availability of Stock.
• Easy to use • Pricing
Opportunities Threats
• Less competition • Competitors such as Nestle D’lecta
• Potential to increase awareness and Everyday Creamer have a strong
hold in the creamer market.

Amul Dairy Creamer Powder:


Strengths Weaknesses
• Strong shelf life • Target consumers reluctant to put faith
• Lower Pricing compared to the in a new product.
competitors • Availability of Stock
• Packaging size i.e 2880 units in one
box.
Opportunities Threats
• Less competition • Competitors such as Nestle D’lecta
• Potential to increase awareness among and Everyday Creamer have a strong
consumers hold in the creamer market.

Amul Lactose Free Milk:


Strengths Weaknesses
• Strong shelf life • Target consumers reluctant to put faith
• Amul Lactose free milk enjoys first in a new product.
mover advantage • Availability of Stock
• Lack of awareness about Lactose Free
Milk amongst the consumers.

76
Opportunities Threats
• Less competition. • • Regular Milk available double the
• Opportunity to seize maximum market quantity at same price.
share due to the first mover advantage
they hold

6.3 Findings

Amul Creamers have shown a promising potential as a replacement for Nestle Everyday Creamer
which is currently the market leader. But during its marketing, several issues have come up to the
surface.

• The targeted places are not happy with Amul’s services. The hotels have clearly shown
disappointment for Amul’s service. Issues like demand-supply gap and company’s focus
in retail sector have been the major reasons for the hotels not trusting the brand.
• Among others, the hotels have direct tie-ups with the competitors and claim to be receiving
better services.
• However, major hotels have said that the Nestle Everyday Creamer has been giving them
satisfactory response and therefore are reluctant to shift to Amul Creamers.
• Amul has to re-think on pricing strategy of Liquid Creamer as its pricing is higher than powder
packets & Nestle creamer. It needs to check its margins with the wholesalers and retailers.
• Amul has to re-think on packaging of Dairy Creamer Powder as the size is 2880 units. The
average requirement in the market is around 1400 units.
• Hotel’s are very disappointed with Amul distributers supply.
• Shortage of Amul creamers with the distributors.
• No active sales team for HoReCa division in Thane.

77
CHAPTER 7
RECOMMENDATIONS

78
7.1 Key Recommendations:
1. Amul Lactose Free milk is a new product in the market introduced first time in India. So its
pricing has to be less compare to other milk beverages in order to improve upon its market share.
2. Lactose free milk will take time to get a place in India as customers are less known of the lactose
intolerance. There is a need of strong advertisement on national level. So that people can get aware
of it. More focus should be laid on creating awareness among the customers about its health
benefits.
3. Amul has to re-think on pricing strategy of Liquid Creamer as its pricing is higher than powder
packets & Nestle creamer. It needs to check its margins with the wholesalers and retailers.
4. Amul Liquid Creamer needs to keep its pricing at par with milk powder initially to establish a
customer base.
5 Amul has to re-think on packaging of Dairy Creamer Powder as the size is 2880 units. The average
requirement in the market is around 1400 units. A smaller package provides the hotel an assurance
that they are not overstocking the product.
6. Amul should try to improve its replacement policy and make it somewhat liberal as there have
been a lot of complaints about replacement policy of Amul.
7. Amul should pay an equal attention to the hotel sectors as well since the hoteliers have complaint
of demand supply gap.

7.2 Pricing Strategy Recommended:


Pricing plays a major role in the Thane market thus these products must be priced competitively
in comparison with its competitors. It is recommended that instead of setting a high initial price to
skim off each segment, market-penetration pricing technique should be used. It refers to setting a
low price for a new product to penetrate the market quickly and deeply. Thereby, a large number
of buyers and a large market share are won, but at the expense of profitability in the initial stages.
The high sales volume leads to falling costs, which allows companies to cut their prices even
further. Although the low prices make each sale less profitable, the high-volume results in lower
costs will allow Amul to maintain a healthy profit margin. Penetration pricing can prevent
competitors from cutting into your market at lower price points. If your upfront price is low and
your product or service is of reasonable quality, the burden falls on other providers to justify higher
prices on similar offerings.

79
CHAPTER 8
LEARNINGS

80
8.1 Key Learnings:

1. Negotiation skills: The best skill I developed with my interaction with the Hotel Managers is
to negotiate. All that a customer expects is best quality at best prices. Amul has been known for
this. I negotiated with them for the best offer.
2. Promotion through sampling: I learned the ability to promote the product by providing
samples for the same. It is an important method of promotion when it comes to the FMCG industry.
3. Sales management in a B2B segment: The product is meant for the hotel businesses. Hence, I
got an opportunity to understand the structure of sales management in a B2B segment.
4. Augmentation of soft skills: I could enhance my communication skills, negotiation skills and
convincing skills. Both the projects involved more and more discussions. It helped me in
enhancing these skills. I also improved upon my skill of creativity. Every different customer would
come with different perception about the products. In order to communicate them the right message
tailor-made for their demand, I required to be bit creative by bringing out something new every
time out of the box.
5. Sales management process application: I could apply the process of sales management which
involves lead generation, qualifying leads, demonstrating values, guiding prospect understanding
and delivery and support, in the business market.
6.Understanding structure of distribution of FMCG industry: FMCG industry works on the
basis of an efficient network of distribution. The channel management is an important task. I could
understand the complete structure of how the FMCG channel of distribution is managed.
7. Understanding Market Potential Assessment: Market Potential refers to the total estimate
size of market in terms of population or market share which the brand can serve. It helps in
knowing the right size of the target market. When the product or segment of products category is
having full demand, like the creamers of Amul, a good way to further estimate the demand is to
look for the competitors’ products which the consumers wish to buy.

81
Bibliography:
• Kotler Philip, “Marketing Management” New Delhi, Prentice Hall of India, 2015(15th
edition)
• https://en.wikipedia.org/wiki/Amul
• http://www.amul.com/m/about-us
• http://www.amul.com/m/organisation
• http://www.marketing91.com/marketing-mix-of-amul/
• http://www.amul.com/
• http://www.amul.com/products/Amul_Lactose_Free_Milk%20.php
http://www.amul.com/m/press_release
• http://www.amul.com/m/action-at-amul
• http://www.amul.com/m/brands

82
Questionnaire for Amul Liquid Creamer

Name –
Hotel Name –
Designation of Respondent –

Q1: Which product you are using currently for providing tea or coffee at rooms?
a _______________________

Q2 Before the meet were you aware of the product Amul Liquid Creamer?
a. Yes
b. No

Q3 Have you previously used the Amul Liquid Creamer?


a. Yes
b. No

Q4. Rate Amul Liquid Creamer with reference to Taste


(1: poor, 2: Fair, 3: Neutral, 4: Good, 5: Very Good, 6: Excellent)
a.

Q5. Rate Amul Liquid Creamer with reference to Solubility


(1: poor, 2: Fair, 3: Neutral, 4: Good, 5: Very Good, 6: Excellent)
a.

83
Q6. Rate Amul Liquid Creamer with reference to Price
(1: poor, 2: Fair, 3: Neutral, 4: Good, 5: Very Good, 6: Excellent)
a.
Q 7. Rate Amul Liquid Creamer with reference to Quantity
(1: poor, 2: Fair, 3: Neutral, 4: Good, 5: Very Good, 6: Excellent)
a.

Q8. Did you like the packaging of Amul Liquid Creamer?


a. Yes
b. No

Q9. Did you find Amul Liquid Creamer better as compared with the product you are currently
using?
a. Yes
b. No

Q10. Would you prefer switching to Amul Liquid Creamer?


a. Yes
b. No
.

84
Questionnaire for Amul Dairy Creamer Powder

Name –
Hotel Name –
Designation of Respondent –

Q1 Which product you are using currently for providing tea or coffee at rooms?
a _______________________

Q2 Before the meet were you aware of the product Amul Dairy Creamer Powder?
a. Yes
b. No

Q3 Have you previously used the Amul Dairy Creamer Powder?


a. Yes
b. No

Q4. Rate Amul Dairy Creamer Powder with reference to Taste


(1: poor, 2: Fair, 3: Neutral, 4: Good, 5: Very Good, 6: Excellent)
a.

Q5. Rate Amul Dairy Creamer Powder with reference to Solubility


(1: poor, 2: Fair, 3: Neutral, 4: Good, 5: Very Good, 6: Excellent)
a.

Q6. Rate Amul Dairy Creamer Powder with reference to Price


(1: poor, 2: Fair, 3: Neutral, 4: Good, 5: Very Good, 6: Excellent)
a.

85
Q7. Rate Amul Dairy Creamer Powder with reference to Quantity
(1: poor, 2: Fair, 3: Neutral, 4: Good, 5: Very Good, 6: Excellent)
a.

Q8. Did you like the packaging of Amul Dairy Creamer Powder?
a. Yes
b. No

Q9. Did you find Amul Dairy Creamer Powder better as compared with the product you are
currently using?
a. Yes
b. No

Q10. Would you prefer switching to Amul Dairy Creamer Powder?


a. Yes
b. No
.

86
Questionnaire for Amul Lactose Free Milk

Name –
Hospital Name –
Designation of Respondent –

Q1 Before the meet were you aware of the product Amul Lactose Free Milk?
a. Yes
b. No

Q2. Earlier was there any requirement for Lactose free milk at your hospital?
a. Yes
b. No

Q3. Rate Amul Lactose Free Milk with reference to Taste


(1: poor, 2: Fair, 3: Neutral, 4: Good, 5: Very Good, 6: Excellent)
a.

Q4. Rate Amul Lactose Free Milk with reference to Price


(1: poor, 2: Fair, 3: Neutral, 4: Good, 5: Very Good, 6: Excellent)
a.

Q5. Rate Amul Lactose Free Milk with reference to Quantity


(1: poor, 2: Fair, 3: Neutral, 4: Good, 5: Very Good, 6: Excellent)
a.

87
Q6. Did you like the packaging of Amul Lactose Free Milk?
a. Yes
b. No

Q7. Would you prefer switching to Amul Lactose Free Milk?


a. Yes
b. No

88

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