Winter Internship Report, Pune Institute of Business Management, Pune

WINTER INTERNSHIP
REPORT

PROJECT TITLE: -
Understanding the buyer persona of the retailers towards Amul fresh
products and finding out the gap in the distribution process of it

COMPANY NAME: - AMUL

BY

STUDENT NAME: - ANAMIKA NANDI

ROLL NO: - MBA18B06

Under the Guidance of NARENDRA SINGH SONIGRA

Guide Designation: - BRANCH MANAGER

1
 Winter Internship Report, Pune Institute of Business Management, Pune

ACKNOWLEDGMENT

In the winter internship, I have been assigned the responsibility of preparing a project report
entitled: -

“Understanding the buyer persona of the retailers and finding out the gap in the distribution
process”.

I express my hearty gratitude to Mr. Narendra Singh Sonigra, Branch Manager of Amul and
Dr.Vinay Nandre, Pune institute of Business Management under whose guidance and
supervision, I have completed this dissertation.

Place: Guwahati

Date: (Anamika Nandi)

2
Winter Internship Report, Pune Institute of Business Management, Pune

COMPANY CERTIFICATE

3
Winter Internship Report, Pune Institute of Business Management, Pune

Contents

ACKNOWLEDGMENT .................................................................... 2
COMPANY CERTIFICATE ................................................................ 3
1. PROJECT SYNOPSIS ................................................................... 5
2. ABOUT THE SECTOR .................................................................. 6
4.INTERNSHIP SUMMARY ........................................................... 11
5. PROJECT DESCRIPTION ........................................................... 12
7. LEARNING/ FINDINGS/ACHEIVEMENTS .................................. 19
7. SUGGESTIONS ......................................................................... 20
8. REFERENCES ............................................................................ 20

4
 Winter Internship Report, Pune Institute of Business Management, Pune

1. PROJECT SYNOPSIS
In this internship process I have assigned with a particular topic “Understanding the buyer
persona of retailers and to find out the problem in distribution process”.

I have visited those retailers partially to see their buying behavior. During the partially visit
I have noticed other brands prevailing in that market in a huge proportion description
despite I got to know from the company that AMUL dominates that area.

I further went with a questionnaire to those retailers to find out the issues in that market.
After recording the responses, I have found various problem relating to the distribution
channel i.e. bad behavior of distribution staffs, low margin, inadequate supply of fresh
products, demand doesn’t match up with the quantity demanded, irregular supply of
distributor, bad timing of distribution. Then I was able to relate all the instances with the
responses

Project Title- “Understanding the buyer persona of the retailers and finding out
the gap in the distribution process”

Company Name- Amul

Student Name- Anamika Nandi

Student Roll No- MBA18B06

Project Guide Name-Narendra Singh Sonigra

Project Guide Designation- Branch Manager

Confidential Report (Yes/No)- No

Duration of project- 18-12-2018 to 18-1-2019

5
 Winter Internship Report, Pune Institute of Business Management, Pune

2. ABOUT THE SECTOR

There are so many sectors which play vital role in increasing the country’s GDP, of which fast-
moving consumer goods (FMCG) sector is the 4th largest sector in the economy of India
which includes household and personal care accounting for 50 per cent of FMCG sales in
India. Growing awareness, easier access and changing lifestyles have been the key growth
drivers for the sector. The urban segment (accounts for a revenue share of around 55 per
cent) is the largest contributor to the overall revenue generated by the FMCG sector in India.
However, in the last few years, the FMCG market has grown faster in rural India as compared
to the urban India. Semi-urban and rural segments are growing at a rapid pace and FMCG
products account for 50 per cent of total rural spending
The Fast Moving Consumer Goods (FMCG) industry primarily deals with the production,
distribution and marketing of consumer packaged goods, i.e. those categories of products
that are consumed at regular intervals. Food & beverage, personal care, pharmaceuticals,
plastic goods, paper & stationery and household products etc. comes under FMCG products.
The industry is vast and offers a wide range of job opportunities in functions such as sales,
supply chain, finance, marketing, operations, purchasing, human resources, product
development and general management between the same period. Packaging is very
important for FMCGs. The logistics and distribution systems often require secondary and
tertiary packaging to maximize efficiency. The unit pack or primary package is critical for
product protection and shelf life and also provides information and sales incentives to
consumers.

Market Size
Market consist of various sector and each sector have a specific the size in market. Sector
like a retails is growing with a very high speed. Because people prefer to buy product online
as it help use of growth of retail sector it also help FMCG sector to grow at high very high
speed.The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840
billion in 2017, with modern trade expected to grow at 20 per cent - 25 per cent per annum,
which is likely to boost revenues of FMCG companies. Revenues of FMCG sector reached
Rs.3.4 lakh crore (US$ 52.75 billion) in FY18 and are estimated to reach US$ 103.7 billion in
2020.

6
 Winter Internship Report, Pune Institute of Business Management, Pune

Government Initiatives
After Demonetization, GST has been one of the biggest transformations that India has seen
in years. GST became a game changer for the Indian Economy. From boosting up the
consumer goods-industry (FMCG Industry) to bring forth varied benefits to the economy,
the new Goods and Services Tax (GST) regime can make the market go up within the
shortest time. The fact is undeniable that FMCG is one of the fastest growing sectors of the
Indian Economy. VAT, Service Tax, Excise duty, Central Sales Tax etc. have to be paid by the
FMCG Sector under the current GST Regime. The Consumer Packed Goods or we can say the
FMCG (Fast Moving Consumer Goods) current tax rate is nearly 22-24%.

7
 Winter Internship Report, Pune Institute of Business Management, Pune

3. ABOUT THE COMPANY & DEPARTMENT

AMUL (Anand Milk Producers Union Limited)

-THE TASTE OF INDIA

VISION: - Amul’s vision is to provide more and more satisfaction to the farmers, employees
and distributers.
MISSION: - To endeavor to satisfy the taste and nutritional requirements of the customers,
through excellence in marketing, co-operative network. Amul is also committed to offer
quality products that provide best value for money.

History

Amul was founded in 1946 to stop the exploitation by the middleman. It was started more
than 65 years back in Anand, a small town in Gujarat. Sardar Vallabhbhai Patel advised them
to get rid of the middleman and form their own cooperative, which would have
procurement, processing and marketing under their control. Under the inspiration of Sardar
Vallabhbhai Patel and the guidance of leaders like Morarji Desai and Tribhuvan das, they
formed their own cooperative in 1946.

This cooperative, the Kaira District Cooperative Milk producers Union Ltd. began with just
two village dairy cooperative societies and 247 litres of milk and is today better known as
Amul Dairy. The Amul model has helped India to emerge as the largest milk producer in the
world. More than 15,000,000 milk producers contribute their milk in 144, 500 dairy
cooperative societies across the country. The milk is processed in 184 district co-operative
unions and marketed by 22 state marketing federations, ensuring a better life for millions.

8
 Winter Internship Report, Pune Institute of Business Management, Pune

Product Categories and Brands

AMUL MILK Amul Gold, Amul Taaza, Amul Slim Trim Milk, Amul Shakti

BREAD Amul Choco Buttery spread, Amul Butter, Amul Lite, Amul Unsalted
SPREADS Butter

CHEESE Amul Processed Cheese, Amul Cheese Spread, Pizza Mozzarella Cheese

BEVERAGES Amul Kool Flavored milk, Amul Masti Buttermilk, Amul Lassi

ICE-CREAM Amul Epic, Amul Ice Creams, Amul Frozen Yoghurt, Amul Creame Rich

PANEER Amul malai paneer, Amul fresh paneer, Amul tin paneer

DAHI Amul Masti Dahi

GHEE Amul ghee, Amul Yellow (cow) ghee, Amul brown ghee

MILK POWDERS Amul spray, Amulya

MITHAI RANGE Amul Shrikhand, Amul Gulab Jamoon, Amul Basundi, Amul Mithai Mate

CHOCOLATES Amul chocolate, Amul chocozoo, Chocolate syrup, Amul wafer

chocolates, Amul Rejoice Assorted Chocolate, Amul Cooking Chocolate

FRESH CREAM Amul Fresh Cream, Amul Whipping

HAPPY TREATS Aloo Tikki, French Fries, Potato Wedges, Veg Burger Patty, Veggie Stix

A snapshot of the financial performance of the company during the last 10

years (2007-17)
 Net Revenues: - 29,085 crores (8% increased)
 EBITDA: - 6 to 7%
 The gross sales have grown at a CAGR of 20% increase in last seven years
 Net profit margin growth varies from product to products from 6 to 10

9
 Winter Internship Report, Pune Institute of Business Management, Pune

Organizational Chart

Chief Operating
Managing Director
Officer

Sr. General Manager

Sales(Milk) Zonal Manager Sales

Branch Manager Milk in charge

Sales Officers Point Sales Man(PSM)

10
 Winter Internship Report, Pune Institute of Business Management, Pune

4.INTERNSHIP SUMMARY

UNDERSTANDING THE BUYER PERSONA OF THE RETAILERS AND THE FINDING OUT THE
GAP IN THE DISTRIBUTION PROCESS

In this internship process I have assigned with a particular topic “understanding the buyer
persona of retailers and to find out the problem in distribution process”. In this underlying
topic the company informed me that though AMUL plays a dominating role in this market
but the market did not make any increment to its sales (it remains static, neither rise nor
goes down)
At first I have understood the distribution process theoretically. However, I have also
understood the channel practically on field by seeing the loading unloading and the
geographical area under the distributor both in the morning and the evening shift.
I have visited those retailers partially to see their buying behavior. During the partially visit
I have noticed other brands prevailing in that market in a huge proportion description
despite I got to know from the company that AMUL dominates that area.
I further went with a questionnaire to those retailers to find out the issues
in that market. After recording the responses, I have found various problem relating to the
distribution channel i.e. bad behavior of distribution staffs, low margin, inadequate supply
of fresh products, demand doesn’t match up with the quantity demanded, irregular supply
of distributor, bad timing of distribution. Then I was able to relate all the instances with the
responses. Based on those responses certain assumptions I have made-
1. The distributor makes some mismatch with the data of supply
2. The distributor gets the products from the company and sell those in some loose
market in a high range (mostly rural areas)

11
 Winter Internship Report, Pune Institute of Business Management, Pune

5. PROJECT DESCRIPTION
I went with a questionnaire to those retailers to find out the issues in that market. After
recording the responses, I have found various problem relating to the distribution
channel i.e. bad behavior of distribution staffs, low margin, inadequate supply of fresh
products, demand doesn’t match up with the quantity demanded, irregular supply of
distributor, bad timing of distribution.

PROJECT TITLE: UNDERSTANDING THE BUYER PERSONA OF THE RETAILERS AND THE
FINDING OUT THE GAP IN THE DISTRIBUTION PROCESS

OBJECTIVES:

RESEARCH DESIGN: - For conducting the research, Exploratory research design was
being carried out as I was not aware of the buying behavior of the retailers

TARGET POPULATION: -The area covered under Adabari to Maligaon.

It includes all the retailers, institutions, hotels, restaurants, canteens and societies.

SAMPLING FRAME: - All the retailers of the area who keeps pouch milk
SAMPLING SIZE: - 40
SAMPLING TECHNIQUES: - Non Probability Simple Random Sampling
DATA COLLECTION: - For the purpose of collecting data, a well-designed questionnaire
was prepared

12
 Winter Internship Report, Pune Institute of Business Management, Pune

DATA ANALYSIS
1. Which Brands of Milk pouches do you keep?
o AMUL
o PURABI
o SUDHA

Milk Brands Respondent Percentage

Sudha 7 17.50%
Purabi 31 77.50%
Amul 25 62.50%

Sudha 17.50%

Purabi 77.50%

Amul 62.50%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%

Milk Brands

Interpretation: -
From the above graph, out of 40 respondents 31 respondents keeps Purabi which is
the state brand of Assam, 25 respondents/retailers keep Amul and only 7
respondents keep Sudha which is new in the market of Guwahati and is a Bihar
based company.

13
 Winter Internship Report, Pune Institute of Business Management, Pune

2. In which shifts do you keep the Amul milk pouches?

o Morning
o Evening
o Both

Shifts Respondent Percentage

Morning 12 30%
Evening 7 17.5%
Both 21 52.5%

Morning Evening Both

21
12

MO RNI NG E VE NI NG BOT H

Interpretation: -
From the above it is clear that most of the retailer/ respondents keep Amul pouch
milk i.e 21 retailers keep Amul Pouch milk in both the shifts while only 7 retailers
keep Amul pouch milk in the evening shift

14
 Winter Internship Report, Pune Institute of Business Management, Pune

3. How much litres of Amul pouch milk do you keep on an average?

Litres Respondent Percentage

Zero 15 37%
1-3 6 15%
4-6 3 8%
7-9 4 10%
More than 9 12 30%

7 - 9 Litres 10%
4 - 6 Litres 8%
More than 9
Litres 30%
1 - 3 Litres 15%

Zero 37%

Interpretation: -
From the above chart it can be interpreted that 37% of the retailers doesn’t keep
Amul pouch milk in their shop while 30% retailers keep Amul milk pouches more
than 9 liters

15
 Winter Internship Report, Pune Institute of Business Management, Pune

4. How much litres of Purabi pouch milk do you keep on an average?

Respondents Percentage
Zero 6 15%
1-3 3 7%
4-6 9 22%
7-9 5 13%
More than 9 17 43%

More than 9
Litres 43%
7 - 9 Litres 13%

4 - 6 Litres 22%
Zero 15%

1 - 3 Litres 7%

Interpretation: -
Here 43% of retailers keep Purabi milk in their retail shop and only 15% doesn’t
keep Purabi milk pouches and these are the retailers who are loyal and potential
customers of Amul.

16
 Winter Internship Report, Pune Institute of Business Management, Pune

5. How much litres of Sudha pouch milk do you keep on an average?

Litres Respondent Percentage

Zero 36 90%
1-3 1 2%
4-6 1 5%
7-9 1 3%
More than 9 1 0%

1 - 3 Litres 2%
Zero 90% 4 - 6 Litres 5%
7 - 9 Litres 3%
More than 9

Interpretation: -
From the above pie chart, it is clear that 90% of the retailers doesn’t keep Sudha
pouch milk as Sudha is a new Bihar based brand in the market and the demand is
less. Moreover, the retailers are loyal towards the existing brand. Only 10% of the
retailers are keeping Sudha milk pouches to test the demand of the customer and
also because of the high profit margin than other existing brands in the market the
retailers are keeping those pouch milk.

17
 Winter Internship Report, Pune Institute of Business Management, Pune

6. Did you find any conflicts in the distribution process of Amul?

Respondents Perctange
Yes 34 85%
No 6 15%

No, 15%

Yes, 85%

7. What were the conflicts you faced?

Ans: Following are the problems told by the retailers:

1) Bad behavior of the distribution staffs

2) Lack of time management in the distribution process
3) The distributors irregular distribution to the existing retailer
4) The distributor doesn’t match up the demand of the retailers specially Amul
Gold
5) Low profit margin of the product
6) No return policy of the expiry products, damaged product

18
Winter Internship Report, Pune Institute of Business Management, Pune

8.LEARNING/ FINDINGS/ACHEIVEMENTS

Findings

 Dogmatism towards Purabi which now leading the market area in the
assigned area
 RUBRAN market area, so there is less amount of retailers as compared to
other areas of the Guwahati city
 Conflict in distribution channel
 Lack of supply as per the demand
 Low profit margin of Amul fresh products
 Retailers buyer persona of fresh milk
 Less promotional activities done in this area

Learnings

 Product line of Amul fresh products

 Distribution channel of Amul Fresh Products
 Launching of new product
 Strategies adopted during festive seasons

Achievements

 Adjudged the consolation price for “Best Marketer Competition” held at

Guwahati
 Generated an extra revenue of Rs. 10,000 in two days
 Pitched and added 10 retailers to sell Amul fresh products

19
Winter Internship Report, Pune Institute of Business Management, Pune

7. SUGGESTIONS
 Suggested to increase the profit margin of AMUL pouch milk for retailers as
competitors give better profit margin
 Suggested to change the distributor of that area because of low supply rate as
a result competitors are able to sustain

8. REFERENCES
 www.ibef.org
 www.amuldairy.com

20