A Project Report

EFFECTIVENESS OF ADVERTISING TOWARDS SALES OF

CHOCOLATES

Submitted by
Manisha Mohabe

in partial fulfillment for the award of the degree

of

Master in Business Administration

In

Marketing Management

At

Institute of Management Studies

DAVV Indore
2009-11
 DECLARATION

I hereby declare that the project entitled

“Effectiveness of Advertising towards sales of chocolates” submitted for
the MBA Degree is my original work and the project has not formed the
basis for the award of any degree, associate ship, fellowship or any other
similar titles.

Signature of the Student:

Place:
Date:
 CERTIFICATE
This is to certify that the project entitled “
Effectiveness of Advertising towards sales of
chocolates ” is the bonafide work carried out by
Manisha Mohabe student of MBA, Institute of
Manangement Studies (DAVV, Indore), during the
year 2009 – 11 , inpartial fulfillment of the
requirements for the award of the Degree of Master
of Business Administration and that the project has
not formed the basis for the award previously of any
degree, diploma, associate ship, fellowship or any
other similar title.

Signature of the Guide :

Place:
Date:
 AKNOWLEDGEMENTS

I wish to express my deep sense of gratitude to my Internal Guide, Mr. Varun

Kesari ,Institute of Management Studies (DAVV, Indore) for his able guidance
and useful suggestions, which helped me in completing the project work, in time.

Words are inadequate in offering my thanks to the Project Trainees and Project
Assisatants, IMS DAVV, Indore for their encouragement and cooperation in
carrying out the project work.

Manisha Mohabe

MBA (MM) IIIrd Sem.

Roll no.:- 43457

 C0NTENTS

1. Introduction.

2. History.

3. Amul Products.

4. Advertisement strategy of Amul.

5. Marketing Research.

6. Research Design.

7. Primary Tabulation & Interpretation.

8. Findings.

9. Conclusion.

10.Bibliography.
 INTRODUCTION
Advertising plays a very pre dominant role for any Marketer. Goods no matter of
how good quality, they may be are of no use if they are not brought to the notice of
the consumer. Advertising can be classified on the basis of target audience towards
whom the advertising is directed .there could be different set of target audience.
These are:

• Consumer (households)
• Industries
• Traders
• Professionals
• Institutions

In our project we would be solely concentrating on the household sector, this sector
dominates any other sector in terms of its goods and services. The complexity of
human behavior is one major factor which makes a job of Marketer tough.

The success of any advertising campaign depends on its effectiveness that is how
effective it is in stimulating consumer to buy the product or at least give a thought
to the product .there are various type of advertising media which can be used . But
the choice of media is a very critical decision as a selection of wrong advertising
media can lead to colossal resources and it can even have an impact on goodwill of
a company. The media has to be selected taking into consideration the target
audience and as a manager we also to take into consideration the Advertising
Budget.

we have taken a company named Amul and then we have made an analysis of its
advertising and sales promotion techniques, the communication mix employed by
the company for its various product categories and how effective these strategies
have been in positioning Amul as not only Amul but as Amul – The Taste of India
 ANAND MILK UNION LIMITED
THE GUJARATCO-OPERATIVE MILK
MARKETING FEDERATION
(ANAND)
8
HISTORY:
BUSINESS needs ideas, not merely money. Ventures run on just money, but
starved of ideas, would eventually fall prey to competition and perish. And, if ideas
are available in abundance, business can overcome other handicaps, including its
relative weaker money power, compared to that of its rivals. The success story of
the Gujarat Co- operative Milk Marketing Federation (GCMMF) proves this point.

Amul follows a unique business model, which aims at providing 'value for money'
products to its consumers, while protecting the interests of the milk-producing
farmers who are its suppliers as well as its owners. Despite being a farmers' co-
operative, Amul has given multinationals a run for their money.

• The Amul Pattern has established itself as a uniquely appropriate model for rural
development. Amul has spurred the White Revolution of India, which has made
India the largest producer of milk and milk products in the world. It is also the
world's biggest vegetarian cheese brand.

• Amul’s is India’s largest diary producing company with over half the market
leading other national companies such as Mother Diary and multinational food
product companies such as Nestle India and Hindustan Lever Ltd

• Amul demonstrates how careful and consistent product stewardship combined

with a deep and intimate understanding of the market leads to consistent growth and
success. The company can process nearly 10 million litres of milk each day.

• The company started as the Gujarat Cooperative Milk Federation in 1946,

collecting just 250 liters’ of milk a day. The company was formed to give farmers
their due and protect them from unscrupulous middlemen. Since then the company
has come a long way. But one thing is still the same. That time also it was by and
for the farmers and today also it’s the same.
• In the mid 1950’s Amul looked for ways to utilize the surplus milk by
Manufacturing Butter, Milk, Cheese and other milk derived products.

The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless.
It was suggested by a quality control expert in Anand. Some cite the origin as an
acronym to (Anand Milk Union Limited)

• Amul, a brand owned by the 26 lakh milk producers of Gujarat has once again
demonstrated that when farmers are given the instruments of development in their
hands, they can work wonders. The billion dollar Gujarat Co-operative Milk
Marketing Federation, the apex body of 13 district milk producers’ unions has been
instrumental in making Amul a brand to reckon with.

GCMMF Today:

GCMMF is India's largest food products marketing organisation. It is a state level

apex body of milk cooperatives in Gujarat, which aims to provide remunerative
returns to the farmers and also serve the interest of consumers by providing quality
products, which are good value for money. GCMMF markets and manages the
Amul brand. From mid-1990's Amul has entered areas not related directly to its
core business

• The AMUL experience has attracted considerable interest from the development
community – predominantly anthropologists, development & agriculture
economists, and political scientists. Key areas of their enquiry have been the role of
AMUL in reducing social and economic inequality
AMUL’s Journey towards Excellence

AMUL’s journey towards excellence is marked by some critical understanding of

the business environment in large emerging economies like India where markets
have to be developed by combining efficiency related initiatives with increasing the
base of marginal suppliers and consumers. The essence of AMUL’s efforts was as
follows:
 • It combined market and social development in an emerging economy. It
recognized the inter-linkages between various environments that governed the lives
of marginal milk farmers and the unmet needs of consumers.

It realized that in order to achieve their objectives, it had to benefit a large number
of people – both suppliers and consumers. While large scale had the danger of
failure due to poor control and required more resources, it also had the advantage of
creating a momentum that would be necessary to bring more people into the fold
and thereby help more suppliers and consumers.

• It also realized that its goal could only be achieved in the long run and this
required developing values in people and processes that were robust, replicable and
transparent.

• It also realized that the cooperative would not be independent and viable in the
face of competition if it were not financially sound. This implied that AMUL had to
develop distinct capabilities that would deliver competitive advantage to its
operations.

Thus this is a brief overview of Amul – The taste of India

 AMUL PRODUCTS

Amul Butter: Milk Drinks:

Powder milk: Fresh Milk:

CHEESE: FOR COOKING:

DESSERTS: HEALTH DRINK:

 ADVERTISEMENT STRATEGY HAS BEEN
FOLLOWED BY AMUL-THE TASTE OF
INDIA
Before Amul entered the picture, companies used conventional methods of
advertising where the focus was only on the food products and the tone of the pitch
was serious. Amul changed the way food products were communicated to the
people in India. It always advertised its mother brand – Amul, and not its products
like butter, pizzas, or cheese. It all began in 1966 when Sylvester daCunha, then the
managing director of the advertising agency, ASP, clinched the account for Amul
butter. The butter, which had been launched in 1945, had a staid, boring image,
primarily because the earlier advertising agency which was in charge of the account
preferred to stick to routine, corporate ads. The year Sylvester daCunha took over
the account, the country saw the birth of a campaign whose charm has endured
fickle public opinion, gimmickry and all else.Amul has been consistant over the
communication campaign and brand strategy. AMUL has positioned itself as "
Taste of India " and have ensured that their communication is in line with their
positioning strategy By insisting on an umbrella brand, GCMMF not only skillfully
avoided inter-union conflicts but also created an opportunity for the union members
to cooperate in developing products

•UMBRELLA BRANDING:

Amul’s advertising strategy has followed the concept of Umbrella Branding.’

Amul is the common brand name for most of its products across categories. For
instance, the Amul girl has also been used to advertise Amul ghee and milk. Its ad
campaign ‘Amul doodh peeta hai India,’ conceptualised & created by FCB-Ulka,
was drafted to proclaim its leadership position and was targeted at people across all
income categories. The corporate campaign – The Taste of India caters to people
belonging to all walks of life & across cultures. It is circled around a one day old
child who needs milk as much as to a dead man who needs ghee.
Video of utterly butterly delicious final amul\animated butter .mpg.Halo effects can
keep a brand “alive” in the mind of the consumer by providing reminders of the
brand’s existence. But in an active category with specific categoryfunctionality, the
brand also needs to provide consumers with reasons to choose their brand over the
others.Halo effects on the parent brand.

•Consumer Advertising:

This is also called end product advertising .such advertisements are primarily
directed at consumers. These are the advertisements which are most prominent as
very substantial portion of the total advertising budget is directed to potential
buyers of consumer products through mass media. The fact that the number of
buyers of consumer items is generally very large and is widely distributed over a
large geographically area further, enhances the importance of consumer advertising
as a marketing tool.

Institutional advertising: institution advertising s also called corporate advertising .

it’s a public-relation-approach advertising. Amul had wanted to build a goodwill for
its brand and also it is always expressing a viewpoint on a controversial issue
through the use of billboard which we are going to discuss under media platform
used.Indirect Action Advertising : Indirect action advertising as against direct
action advertising does not attempt to bring about an immediate behavioral response
. The purpose of Amul was not to bring about an immediate behavioral response but
the aim of advertisements was to create a image in the minds of consumer regarding
Amul. Amul wanted to build long term relation with its customers that is why it
never adopted practice of aggresively selling the product.
 MARKETING RESEARCH
Marketing research plays an important role in the process of marketing. Starting
with market component of the total marketing talks. It helps the firm to acquire a
better understanding of the consumers, the competition and the marketing
environment.

DEFINITION
“Marketing research is a systematic gathering, recording and analysis marketing
problem to facilitate decision making.” - Coundiff & Still.

“Marketing research is a systematic problem analysis, model building and fact

finding for the purpose of important decision making and control in the marketing
of goods and services. - Phillip Kotler.

MAIN STEPS INVOLVED IN MARKETING RESEARCH

Defining the Marketing Problem to be tackled and identifying the market research
problem involved in the task.

(1) Define the problem and its objectives.

(2) Identify the problem.
(3) Determine the information needed.
(4) Determine the sources of information.
(5) Decide research methods.
(6) Tabulate, Analyze and interpret the data.
(7) Prepare research report.
(8) Follow-up the study.
 RESEARCH DESIGN
“Advertising is a paid form of non-personal presentation and promotion of ideas,
goods or services by an identified sponsor.”

1. RESEARCH PROBLEM
(A)Increase the awareness level of AMUL CHOCOLATE.
(B)Seek the general perception of consumer towards AMUL CHOCOLATE.
(C)To find the performance of AMUL CHOCOLATE vis-à-vis other Brands.
(D)To know the consumer psyche and their behavior towards AMUL
CHOCOLATE.

2. RESEARCH OBJECTIVES & related sub objectives

(A)To know the relationship of sales with the advertisement.

(B)To know awareness of people towards Amul chocolates.
(C)To know in which segment chocolates are mostly like/preferred.
(D)To know which advertisement tool is mostly preferred bypeople.
(E)To know the preference of Amul chocolates with comparison to
Othercompetitive brands.
(F)To know the factors which affects consumer’s buying behaviour to purchase
chocolates
 AMUL CHOCOLATE

Amul chocolate is made from Sugar, Cocoa Butter, Milk Solids, Chocolate mass
(3)Composition:
• Milk Fat 2%
• Sugar 55%
• Total Fat 32.33%
(Milk Fat + Cocoa Fat)
• Cocoa Solids 7.5%
• Milk Solids 20%

(4)Choice of research design – alternatives & choice

Despite the difficulty of establishing an entirely satisfactory classification system, it

is helpful to classify marketing research on the basis of the fundamental objectives
of the research. Consideration of the different types, their applicability, their
strengths, and their weakness will help the student to select the type best suited to a
specific problem. The two general types of research are:

EXPLORATORY RESEARCH
Exploratory research seeks to discover new relationship, emphasis
on discovery of ideas. Marketing researches devote a significant portion of their
work on exploratory studies when very little is known about the problem being
examined.

CONCLUSIVE RESEARCH

Conclusive studies attempts to determine the frequency with which something

occurs or the relationship between two phenomenon. Usually conclusive studies
assume certain under underlying characteristics of the market or have some precise
statement of research questions/hypothesis.
 Primary tabulation & interpretation:

1. Kind of Chocolate:
Branded 92 %
Non branded 08%

kind of chocolates

Branded
Unbranded

INTERFERENCE:

92% Respondents consume branded chocolates, while 8% still consume non

branded.
(2) Chocolates Users:

 Children 34%

 Teenager 33%

 Young 26%

 Old 07%

Chocolates users

Children
Teenagers
Young
old

INFERENCE :

Mostly children & teenagers likes chocolates in their families. So we should give
stress on children & tenager segment to increase market share. Young people also
using chocolates for consuming & for giving as a gift.
(3) Form of Chocolates:

 Cookies 14%
 Bar 60%
 Wafer 20%
 Others 06%

Form of Choclates

cookies
Bar
Wafer
others

INFERENCE :

The above diagram suggest that the most preferred form is bar i.e. 60%, followed
by wafer i.e. 20%, Cookies are all time favorites with 14% while other forms are
preferred to the extent of 6%.
[4] Television channel Preferences:

 Star 100

 Zee 15

 Sony 30

 Cartoon 30

 Others 25

T.V Channel Preferences

star
Zee
Sony
Cartoon
Others

INFERENCE:

Mostly people like STAR channel. This channel is very popular among all the age
group people. SONY & CARTOON channels are also popular but not as STAR. In
other channels sports and news channels are preferred. CARTOON channel is
specially preferred by children. So it will be more beneficial top give
advertisements on STAR & CARTOON channels, it covers all the age groups.
(5)Timing Preferences:

 5 To 8pm 33%
 8 To 11pm 37%
 Late night 10%
 Morning 15%
 Afternoon

Timing Preferences

5 To 8 pm
8 To 11pm
Late Night
Morning
Aternoon

INFERENCE :

From the survey it was found that 37% of the respondents likes to watch T.V. after
8 pm to 11 pm. Because Mostly people belong to service class & females in the
families got their work by this time. At 5 to 8 pm 33% respondents in which
especially children watch cartoon channel & etc. so it is good to advertise on
preferred channels on these timings.
(7) Factors effects in a chocolate advertisement:

 Brand Ambassador 60
 Jingles 30
 Comedy 45
 Music 40
 Emotions 20
 Others 05

70

60

50

40

Column2
30

20

10

0
Brand Ambassador Jingles Comedy Music Emotions others

INFERENCE :

Good Brand Ambassador generally effects people’s perception towards a product

and create an image in their mind. Mostly people likes to see celebrities like
Amitabh Bacchan, Sachin Tendulkar, M.S.Dhoni, Saniya Mirza etc. as a Brabd
Ambassador in chocolate advertisements.At the same time people like comedy,
slow music & specially children like jingles in advertisements.
(6) Ever Tasted Amul Choclates:

 YES 90%
 No 10%

Ever Tasted

Yes
No

INFERENCE :

The chart shows that 90% respondents have tasted Amul Chocolate, while still 10%
have not tried Amul Chocolates. Amul must use proper techniques in order to cater
the needs of every common man.
(9) AMUL Chocolate advertisement:

 Yes 32%
 No 68%

Advertisement Effectiveness

Yes
No

INFERENCE :

Here it was observed that only 32% respondents in the city of Ahmedabad were
able to recall Amul Chocolate advertisement. This shows how much Amul lags
behind in promotional activities and advertisement. Therefore Amul must use
strong promotional activities and advertisement in order to retain their potential
consumers.
(10) Chocolate do you like most:

 Nestle 28%

 Cadbury 58%

 Amul 13%

 Any other 01%

Market Share

Nestle
Cadbury
Amul
Any other

INFERENCE :

We can clearly gauge from the pie chart that Cadbury being on the top slot with
58% market share dominates the chocolate market, followed by Nestle with 28%
share, whereas Amul have only 13% market share and thus lags behind.
(11)Frequency of purchasing Chocolate:

 Daily 17 %

 Weekly 22 %

 Fortnightly 13 %

 Occasionally 48 %

Frequency of Purchase

Daily
Weekly
Fortnightly
Occasionally 48%

INFERENCE:
The frequency of chocolate differ a lot where 17% respondents buy it daily, 22%
weekly, 13% fortnightly, and there is a Hugh chunk of people who buy chocolate
occasionally.

FINDINGS

 During the survey it was found that still there are10% people who have not
tasted Amul Chocolate.

 Lake of Awareness in consumers. Many people are not know about Amul
chocolates specially children and teenagers.

 As I found that the main product of Amul is Milk andcompany firstly wants
to capture maximum market share in milk market which is approx. 66%, after
it Amul is concentrating upon butter & cheese which has market share of
approx. 88%, so it is not concentrating upon chocolates.

 When I interviewed people then many of the people can not recall Amul
chocolate advertisement. It shows Lake of Advertisementor advertisement is
not timely givenor advertisement is not given on right time.

 In its advertisement is not using any brand ambassador which attracts all
age group people likeCad bury.

 There is lake of Sales Promotional Activities i.e. free tattoo,extra weight,

toys, quiz contest etc.

 Cadbury is main competitor and strategically better performer then Amul.

 I find the main thing is that“Amul” brand name has very goodimage in
consumer’s mind and they consider it as Pure & Good Product.

 People who have tasted Amul Chocolate are not ready to purchase the same
again.
 Conclusion
As we know thatAmul is very big organization and market leader in
dairy products. It has maximum market share in Milk, Butter and Cheese, which are
its main/core products. As we know Amul is a co-operative organisaion but chocolate
industry is a profitable industry we can’t ignore it. With the help of research,
company can find out its week points in chocolate product and can increase its
market share through rectify mistakes. People have believed in Amul’s product and
they will accept its chocolates also if effective actions were taken.

The survey resulted into following conclusions :

 Amul must come up with new promotional activities such that people
become aware about Amul Chocolates like Chocozoo, Bindaaz, and Fundoo.
 Quality is the dominating aspect which influences consumer to purchase
Amul product, but prompt availability of other chocolate brands and
aggressive promotional activities by others influences the consumer towards
them and also leads to increase sales.
 In comparison to Amul Chocolate, the other players such asCadbury, Nestle,
and Perfetti provide a better availability and give competition to the hilt.
 People are mostlysatisfied with the overall quality of Amul Chocolate, but
for the existence in the local market Amul must use aggressive selling
techniques
 BIBLIOGRAPHY

1. www.amul.com
2. www.amuldairy.com
3. www.google.com
4. www.marketresearch.com
5. www.dairy.com
 QUESTIONNAIRE

I am a student MBA (MM) from INSTITUTE OF MANAGEMENT STUDIES,

INDORE conducting a survey on Effectiveness of advertising towards sales of
Chocolates.

[1] What kind of Chocolate do you eat?

 Branded______ Non-branded______

[2] Who uses chocolates in your family?

 Children Teenager
 Young Old

[3] What form of Chocolate do you like?

 Cookies_____ Bar _____
 Wafer_____ Other_____

[4] Which Television channel you like to watch most?

 STAR _______ ZEE ________
 SONY _______ CARTOON________
 Others _______

[5] In between what time you like to watch television?

 Timings_____________

[6] By which media you prefer to watch advertisements?

 Television
 Hoardings
 Newspapers
 Magazines
 Others (Mention)
[7] Which advertisement you like the most?
 _______________

[8] What factors effects you in a chocolate advertisement?

 Brand ambassador_______
 Jingles________
 Comedy _______
 Music________
 Others (Mention)_______

[9] Have you ever tasted Amul Chocolate?

 Yes_____
 No______

[10] Can you recall AMUL Chocolate advertisement?

 Yes ____
 No____

[11] What is the frequency of purchasing Chocolate?

 Daily ______
 Weekly _______
 Fortnightly______
 Occasionally_______