BUSINESS SKILL DEVELOPMENT COURSE REPORT

Submitted in Partial Fulfilment of the Requirements

for the Award of the Degree of

Bachelor of Business Administration

2020-2023

By

Name of the student [ VUPPALA TEJASWIN]

Reg No:[ 2020FC26145]

Under the Guidance of

PROF

Designation:

College Name

Address

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 (Affiliated to Bangalore University)

Feb/March, 2022

TABLE OF CONTENTS

(For Ex.)

SL. No. Contents Page No.

1. Case study 1: Case of AMUL

2. Case study 2: Case of HALDIRAM

3. Case study 3: Case of BPCL

4 Case study 4: Case of ITC

5. Case study 5: Case of AIRTEL

1. EXECUTIVE SUMMARY
2. REPORT MAIN BODY
CASE STUDY ON AMUL
A .SITUATIONAL ANALYSIS

AMUL’S DIVERSIFICATION STRATEGY:A PIZZA FOR 20 RS

In early 2001, Gujarat Cooperative Milk Marketing Federation (GCMMF)1 planned to leverage
its brand equity and distribution network to turn Amul2 into India's biggest food brand. Verghese
Kurien, Chairman of GCMMF, set a sales target of Rs.10 bn by 2006 as against sales of Rs 2.3
bn in 2001. In 2001, GCMMF entered the fast food market in India with the launch of vegetable
pizzas under the brand name SnowCap in Ahmedabad, Gujarat. GCMMF was also planning to
launch its pizzas in other western Indian cities like Mumbai, Surat, and Baroda.

Depending on the response in these cities, GCMMF would decide to introduce its pizzas in other
cities in India. The pizzas were offered in four flavours: plain tomato-onion-capsicum, fruit pizza
(pineapple-topped), mushroom and 'Jain pizzas' (pizzas without onion or garlic). GCMMF
launched the pizzas in the Rs.20-25 price range. The existing players in the pizza market, like
Domino's, Pizza Hut and Nirula's offered pizzas at nothing less than Rs.39. (Refer Exhibit I).
Analysts felt that GCMMF's move would force the existing players to reduce their prices in the
long run.

GCMMF planned to open 3,000 pizza retail franchise outlets all over the country by 2005. The
pizzas would be made at the retail outlets. The technical training and the recipe for the pizza
would be provided by GCMMF. It would also negotiate with bulk suppliers of vegetables to get
these at wholesale rates. These would be provided to the retailers.

The main cost component of the pizza is the mozarella cheese. GCMMF would offer the cheese
at a bulk rate of Rs.140 per kg, compared to the market price of Rs 146 per kg, thus saving the
retailers Rs.6 per kg. GCMMF on its part would have a ready market for its cheese products.
Analysts felt that the supply of cheese products by GCMMF at a cheaper price would enable the
retailers to price pizzas lower than that of the competitors. R S Khanna, General Manager-North
zone, said that GCMMF intended to do to pizza what it had already done to ice cream. He said,
"We want pizzas to become a mass consumption item. And as in the case of ice cream, we will
force pizza manufacturers to slash prices. Eventually, this would expand the market for cheese."

B. STATEMENT OF THE PROBLEM

It becomes very important to understand what actually went wrong with the earlier launches of
Amul pizza. First let us understand the possible causes of failure of Amul pizza.  Amul pizza
could not win the trust of the consumers over its quality and freshness, as it was frozen and the
Indian consumer is used to fresh food products. So it may be appropriate to state that Amul pizza
was ahead of the time.  Moreover for baking the pizza, a consumer was required to have an
oven at his/her home. But most of the consumers did not own an oven to bake the pizza, which
eventually meant that potential consumers for pizza are not going to buy Amul pizza.  There
was inconsistency in the quality of the pizza.  The company’s strategy of creation of a mass
market for its pizza and to make it a product of mass consumption was entirely wrong, as it did
not focus on particular market segments and also did not have proper differentiated offerings for
different segments.  The company did not properly position Amul pizza in the minds of
consumers.  There was no proper differentiating factor for Amul pizza. Consumers could not
differentiate between Amul pizza and other brands of pizza.  Amul pizza was not up to the
quality level defined by the company’s most of the other products.  The company probably
overlooked the threat from pizza experts like Pizza Hut and Domino’s.  Packaging of the pizza
was also questionable because the pizza used to get damaged during the transportation.  The
outer border of the crust of the pizza was over thick and it could not be properly baked.
C. LIST OF CRITICAL FACTORS
Basically it looked like GCMMF has adopted this aggressive strategy to increase the
consumption of mozzarella cheese, a core ingredient that goes into the making of pizzas. "We are
the biggest cheese brand in India and it is time we leveraged this strength,” Mr. Vyas (MD-
GCMMF) explained. The pizza parlors will not be very big in size. An ordinary retail shop,
which is strategically located, could also get into an arrangement with GCMMF. The entire
project is based on the franchisee model. GCMMF will hire pizza consultants who in turn will
train franchisees. The co-operative will also provide them with equipment, technical inputs and
promotional support. The company was hopeful that the right mix of product quality and
affordable price will lead to a demand explosion and could perhaps lure customers away from
the established pizza chains. Besides eating into their market shares, this was a strategic move
towards concentric diversification into the fast food segment. "Instead of waiting for the pizza
market to grow, we decided to create a new mass market ourselves, "Mr. Vyas said. Once the
demand for mozzarella cheese takes off, the company plans to stimulate the demand for cheese
slices by extending the product line. An unlikely entrant had entered the pizza market in India.
Indian company GCMMF, well known for its milk products, had introduced a pizza for Rs 20 or
one-third that charged by the existing players.But what prompted GCMMF to enter a new
territory, at a time when the field is flooded with many players, many of them multinationals?
Industry analysts point to two reasons. The main one is the growing acceptance of pizza as an out
of home food by the Indian consumers. Pizza has become a popular food in all major cities and
towns. Pizza joints are as ubiquitous as outlets for vada pav and pav bhaji, two local delicacies of
Mumbai. That the pizza has finally become a part of the Indian eating experience is confirmed
by the fact that several railway stations have set up special stalls to hawk various brands of pizza.
Until now, the Indian railway traveler had to make do with stale tea and rancid sandwiches. The
second reason for GCMMF's entry into the pizza market is its inherent advantage: the fact that
GCMMF does not view pizza as an end-product as much as a medium for increasing the
consumption and pushing sales of its own cheese
Amul pizza unfortunately did not do very well in the market. The reason for this, as chief general
manager of GCMMF R.S. Sodhi explains, was inconsistency in quality. The crusts were supplied
from a centralized location and consumers manning the outlets were trained to make pizzas using
Amul cheese. The product quality was not always up to the mark, and, hence the system was
discontinued after a year. These pizzas were prepared in its factories and only need to be thawed
and micro waved before being consumed. Their shelf life was three months. But, according to
Sodhi, "Indians are notoriously biased towards fresh rather than canned or preserved food. Also,
interestingly, most of them do not have the right kind of ovens for thawing and heating food." So

it may be appropriate to state that Amul pizza was ahead of time.

D. ASSUMPTIONS.
The population for this study is defined as “all the people in Mumbai city who eat pizza". The
purpose of research is to discover answers to questions through the application of scientific
procedures. The main aim of research is to find out the truth which is hidden and which has not
been discovered as yet. Research objectives help to gain familiarity with a phenomenon or to
achieve new insights into it. They also help to portray accurately the characteristics of a
particular individual, situation or a group. We can also determine the frequency with which
something occurs or with which it is associated with something else. The important objectives of
this research are as under: 1. To identify the reasons for the failure of Amul pizza in the market.
2. To formulate a proper marketing strategy for relaunching of Amul pizza. 3. To get feedback
from consumers on the different parameters for Amul Pizza.
E. SWOT ANALYSIS

STRENGTHS WEAKNESS
 Market leader  Operational cost
 Short life on its products
 Exceptional growth
 Completely dependent
 Huge customer base on villages for it’s raw
materials
OPPORTUNITIES THREATS/CHALLENGES
 Penetrate  Competitors–Kwality
international market wall’s
 Diversify product  Growing price of milk and
portfolio milk products

F. SOLUTION FOR THE CASE STUDY

 There is a huge scope for improvement in the quality of Amul pizza (Figure 6.7). Quality of the

pizza can be improved by using better quality of crust and more toppings. Also the quantity of

cheese may be increased.

 More variants can be developed like sausage and stuffed crust pizza apart from the basic four
cheese pizzas
 A dessert pizza with sweet crust can also be launched.
 Currently the crust of the pizza has an outer border to hold cheese in it. This outer border is so
thick that even after completely backing the pizza, it still remains half-baked. So customers have
to actually remove that outer-border from the pizza and throw it. Actually there is no need for
that outer border to be so much thick, if the pizza is packed properly in a disposable tray before
putting it in a carton box. The disposable tray will ensure that cheese doesn’t come out of the
pizza while distribution.
 Pizza could carry more toppings with even spreading which can be adjusted as per the local
preferences.

G. CONCLUSION
As we have seen earlier that the competition in the Indian pizza industry is very high. Although
the market is very big in size, the challenges are so many. We saw how global pizza chains have
succeeded in India by innovation and localizing their menus. Though there is no big player in
frozen pizza category in India, GCMMF can still face the stiff competition from the local players
and restaurants who also serve the fresh pizza in the same price range. Providing high quality
pizza at low price will surely give the company a competitive advantage in the market. The key
for success will be creating, communicating and delivering customer value. Value is what
customers believe value is, not what marketers believe. The company can improve overall
quality of its pizza by making considerable changes in the crust, variety of toppings, quantity of
cheese, etc. From time to time the company can come up with new variants of pizza with new
toppings to delight the customers. Moreover the concept of frozen pizza in India is quite new and
it will be a big challenge for GCMMF to change the eating habits of consumers and make them
attracted towards frozen pizza. The company failed to show consistency in the quality of pizza.
The company did not segment the market properly and did not have a differentiated offering for
different segments. This made Amul pizza no different than pizzas offered by other players and
hence could not find a place in the market. Further the consumers did not necessarily have oven
to bake the pizza, which prevented them from purchasing it. The company need not focus on
creating pizza as a product of mass consumption and increase the sales of mozzarella cheese.
Instead the company will be better-off by first creating a place for Amul pizza in the market and
win the trust of consumers over its quality, taste, freshness and several other factors. Once this
objective is achieved, consumption of cheese will eventually increase and hence the business will
be successful. By delivering continuous customer value and offering a high quality pizza at a low
price,GCMMF will get a competitive advantage in the market. The company can face stiff
competition from the existing players, both in the organized and unorganized sector. However it
is anticipated that by taking in to consideration the suggestions given in this study, the company
will be able to successfully relaunch the pizza.