Develope The Strategy To Improve The Visibility and Penetration of Amul Ice-Cream in Kolkata

PGDM, Report 2011
DEVELOPE THE STRATEGY TO IMPROVE THE VISIBILITY AND PENETRATION OF AMUL ICE-CREAM IN KOLKATA
SUBMITTED TO
AMUL, KOLKATA
SUBMITTED BY:
ANIKET KUMAR, Intern (PGDM-2010) CHANDRAGUPT INSTITUTE OF MANAGEMENT, PATNA
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Executive Summery
This project report mainly focuses on Improving Visibility and Penetration of Amul Ice-cream in Kolkata market. Ice-cream industry is a very profitable business, in spite of that new players fear to enter in this industry. The main reason is that they have to provide freeze to retailers and also there is the supply of Power constraints. So all the Icecream industry Players have to depend on electricity. The consumption of Ice-cream in India is 300ml per year only, which is far from other developed countries. Infrastructure is the main problem for these players to enter in the market. In the process of our project I was assigned to find out the problem and increase the penetration of Amul Ice-cream through convincing new retailers to keep Amul. I was given a specific area of northern Kolkata where I will be given to search new retailers as well as see the visibility through taking size of banner, requirement of POP (Point of Purchase), Hoarding, Pamphlet for Amul etc. I also found many problems in this process. I.e. Amul is having very less supply of Ice-cream, many retailers is complaining about Amul that I bought deep-freezer from Amul but I couldnt get free Ice-cream as promised by the company. So based on the responses from market I develop questionnaire for survey that what are the things affecting retailers to keep product of a particular company. The report provides a comprehensive insight into the company and also about the SWOT analysis of company. This report mainly studies in detail the various factors affecting retailers to keep particular companys product. Based on the collected data I have done t-test of the responses of retailers. My main objective behind selecting this analytical tool is to compare the factors between Amul and Kwality. Because of Kwality is leading in Kolkata due to good in distribution channel and availability of product almost in every market of Kolkata. Owing to non-availability of Amul Ice-cream in every market Amul is losing market share in Kolkata. Basically
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Analytical tool give the result of those factors which is affecting Amul business in northern Kolkata most. The factors which are affecting Amul most are Supply of Icecream, less Support given by company, lest frequency of feedback taken by Amul employee, Slow response of claim, and less attractive schemes. Among these factors supply is the main factor that is affecting penetration level of Amul. I get to know from this survey that many retailers have left keeping Amul due to supply. Some of the Apos has shut down because of not having all the Amul product in his/her shops so how they can do business.
Research Methodology:(a) Research Objective:- My main objective of the research of was to increase the visibility and Penetration of Amul Ice-cream at retail level in northern Kolkata. In this process company is ask to find out potential retailers so that the penetration of Amul would increase in Kolkata market. (b) Research Design:- This research is adopted as descriptive based.
(c) Data sources & Type:- The data sources used for this project are both primary as well as secondary. Primary data collected through asking of questions to retailers. Secondary data collected from office of the company. (d) Research Tool:- The main process of data collection was through filling of questionnaire. The questionnaire consists of finding problem from market as well as the satisfaction level of retailers.
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Sampling Methodology
The sample consists of the retailers in North Kolkata under a particular distributor who is covering these parts of north Kolkata. The size of the sample of this survey is 50 retailers of Amul consisting Metro and other brand and 50 retailers of Kwality.
Finding:- Brand Image of Amul products is very excellent in the market. But as
demand is more which hamper supply of products. Main factor of the Amul lacking in north Kolkata is supply of Product.
Recommendation:- Amul should first look at the supply of their product and second
the variety of the product, because most of people want new type of Ice-cream. So Amul need to take care of the proper supply of all the variety of Ice-cream. To improve the penetration level in the Market Amul should look after these problems and try to eliminate in business prospective. Suppose Amul is losing 5-retail outlet in a year and these five retailers was giving about 2-5 lakhs sales to Amul so the attrition rate by Volume in term of money and sales will definitely decrease. So Amul should do business in long term prospective not in short term.
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DECLARATION
I hereby declare that this dissertation entitled Develop the strategy to improve the visibility and penetration of Amul Ice-cream at retail level in northern Kolkata market. submitted in partial fulfillment for the Award of Post Graduate Diploma in Management to Chandragupt Institute of Management Patna, was a record of independent research work carried out by me.
I also declare that this dissertation was a result of my own efforts and has not been submitted earlier for the award of any degree/ diploma to any other University. Aniket Kumar Chandragupt Institute of Management Patna. Name of the Organization Mentor (Signature)
Name of the faculty Mentor-
.. (Signature)
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AKNOWLEDGEMENT
First and foremost, I extend my heartfelt gratitude towards Chandragupt Institute of Management, Patna and Amul, for giving me opportunity to work on this project.It had been an enriching experience for me to undergo my summer internship under Amul, which would have not been possible without help and support of all the people around. I would like to express my sincere thanks to all the people who supported me during the project. I extend my sincerest gratitude and thank to Mr. Manoranjan Panikar, Mr. Sanjeev kumar, Mr. Shyamal Gosh and Prof. S.Dutta for mentoring and guiding me throughout my internship. Without their constant guidance and support it would have been impossible for me to complete the project in time. I also take this opportunity to thank all the people who are working as PSM in Amul for guiding me about the location and process to convince retailers. Last but not the least I thank all my friends and members of my family for encouragement and moral support they had provided. However, I accept the sole responsibility for any possible error and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice. Aniket Kumar Intern, Chandragupt Institute of Management, Patna.
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Table of Content
1. INDUSTRY ANALYSIS ................................................................................................. 8 1.1 ICE-CREAM INDUSTRY: Overview ................................................................... 8 1.1.1 The Ice-cream Business .............................................................................. 11 1.1.2 Ice-cream Industry: Growth Rate ............................................................... 11 1.1.3 The Challenges ........................................................................................... 13 1.1.4 Porters Five-Force Analysis ...................................................................... 14 2. GCMMF: An Overview( Amul) .................................................................................. 19 2.1 Ice-cream Market.................................................................................................. 20 2.2 Amul-The leader in Ice-cream ............................................................................. 21 2.3 Amul Scooping Parlors ........................................................................................ 22 2.4 Investment Required............................................................................................. 23 2.5 Amul Kolkata Market ........................................................................................... 25 2.6 Mission of Amul ................................................................................................... 26 2.7 SWOT Analysis ................................................................................................... 27 3. WORK: AT COMPANY ............................................................................................... 34 4. OBJECTIVES OF STUDY ........................................................................................... 37 4.1 Visibility ............................................................................................................... 37 4.2 Penetration ............................................................................................................ 38 5. ANALYSYS AND FINDINGS .................................................................................... 43 5.1 Qualitative Analysis. ............................................................................................ 44 5.2 Quantitative Analysis. .......................................................................................... 47 6. CONCLUSION ............................................................................................................. 68 6.1 Limitation of Study .............................................................................................. 69 7. SUGGESTION .............................................................................................................. 70 8. QUESTIONNAIRE & BIBILIOGRAPHY
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1.0
ICE-CREAM INDUSTRY
The main objective of industrial analysis is to assess the prospects of various industrial groupings. At any stage in the economy there are some industries which are growing while others are declining, the performance of companies will depend among other things upon the state of the industry as a whole and the economy. If the industry prosperous, the companies within the company may also be prosperous although a few may be in bad shape. The share price of the company is empirically found to depend up to 50% on the performance of the industry and economy. Indian summers are synonymous with ice
creams. Come summers, and you will see a number of colorful pushcarts selling the choicest of ice creams in numerous flavors from the traditional vanilla and chocolate to unusual varieties like Amuls Pro-biotic Pro-light and sugar-free. If that doesnt baffle you then the ice cream range definitely would, for example the ice cream range for the children would be entirely different from that for the teenagers or for that matter adults. Or, for those who like to have ice cream in peace, there are a number of ice cream parlors that are opening.
1.1 The Ice-Cream Industry: Overview

The ice cream industry in India is in many ways, reflective of the overall population distribution. The countrys population is primarily rural with approximately 65% of the population living in villages with a population of less than 5000; this means there are
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well over 150000 villages with a combined population in excess of 650 million. This has contributed to a highly fragmented industry that by many estimates has over 70,000 Icecream entities. Many of these are single family operations where the product is made either in the home or in very small factories and sold on the streets. The 350 million remaining people are concentrated in the cities where the industry is reasonably concentrated in the hands of a few international domestic firms. It is estimated that only 30% -40%of the entire market is organized and the industry meets the classic definition of a fragmented industry, that is, one where there is an absence of market leaders with power to shape industry events. Looking at some industry facts first, in 2007, the global market of ice creams was pegged at $61.6 billion in terms of retail value or 15 billion liters in terms of volume. Of this, the Asia-Pacific ice cream market was worth $13 billion in terms of retail value and 5,128 million liters in terms of volume. Coming to India, the Indian ice cream industry is currently estimated to be worth Rs. 2,000 crores, growing at a rate of approximately 12%. RS Sodhi, Chief General Manager of Gujarat Co-operative Milk Marketing (GCMMF), the makers of Amul, explains, The ice cream market in India can be divided into: the branded market and the grey market. The branded market at present is 100 million liters per annum valued at Rs. 800 crores. The grey market consists of small local players and cottage industry players. In 2008-09, in the branded ice cream market, Amul held the number one spot, with a market share or 38%, followed by Kwality Walls at 14%, Vadilal at 12% and Mother Diary at 8%.
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Despite a decent growth rate, the ice cream industry faces the challenge of low per capita consumption. The ice cream industry in India is worth Rs. 2,000 crores. The industry can be divided into the branded market and the unbranded market. The branded market at present is 100 million liters per annum valued at Rs. 800 crores. The per capita consumption of ice creams in India is just 300 ml per annum, compared to 22 liters in the US, 18 liters in Australia, 14 liters in Sweden. India is a way too far behind even in terms of the world average per capita ice cream consumption of 2.3 liters per annum. This is when; India is a country with hot climate with a young population. Pankaj Chaturvedi, Executive Director of Baskin Robins, explains Indian cuisine has a huge range of desserts in its mix. Ice cream always competes against these for attention. Besides desserts, ice cream also vies for attention with other like foods for example in summers with cold drinks, coffee, juice, etc. Another trend that is witnessing a change is the seasonal nature of the industry. Having said that, the peak season for ice cream still remains the summer months of AprilJune and dips in the months of November-February. According to the industry players, this trend especially holds true for the North and the Western parts of India. According to Pankaj Chaturvedi, The variation in sales for Baskin Robins can range from 1530% from season to off season depending on geography and brand.
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Ice-Cream Industry
Others 18% Arun 4% Cream Bell 6% Mother Dairy 8% Amul 38%
Vadilal 12%
Kwality 14%
1.1.2The Ice-cream Business The ice cream industry has traditionally grown at a healthy rate of 12% year-on-year. The growth in Ice cream industry has been primarily due to strengthening of distribution network and cold chain infrastructure. Channels such as Mobile Vending Units have been increasing year on year to reach out to a larger set of consumers. Besides, consumers also have the choice of trying out varied product offerings from different brands to keep them excited, said Paul Thachil, CEO (Dairy & Foods, Mother Dairy Fruit & Vegetable.)
1.1.3 Ice-cream Industry: Growth Rate (Kumar, 2009)

The three factors of growth, population, per capital consumption, and price are all the three factors of growth, population, per capital consumption, and price are all projected to increase over the next six years. Population is projected to grow at 1.34(from 2010 census) %, per capital consumption is projected to grow at 5%, and prices are projected
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prices is expected to rise at 3.5%, however, given the intense level of competition Ben & Jerrys does not think it likely that Ice-Cream prices will rise that fast. Overall the market will grow from 224 crores to 360 crores yearly, compounded growth rate of 16%. Of the 136 crores in growth, 60% come from increased per capita consumption, 24% from increased population, and 16% from increase in price. The basic steps in the manufacturing of ice cream are generally first blending the ingredients, pasteurization, homogenization, aging the mix, freezing, and hardening. Now, during the hardening process, the ice cream mixture is incorporated with air. This is done to make the product light and creamy. This is necessary as without air, ice cream would be like frozen ice. Now the ice cream can contain a considerable quantity of air, even up to half of its volume. This perhaps makes ice cream a business with high profit margin. Manish Vithalani of Space Dotz informs, A ice cream mix (consisting of milk, emulsifier, sugar and so on) costs about Rs. 60-65 a liter. And in one liter you can add up to one litre of air. Therefore, per liter the mix would cost you approximately Rs 32. If you take an 150 ml cup, you can make 13 cups of ice cream from one liter of mixture. Calculating on that basis, the per cup costing comes to about Rs 5. Now add to that Rs 5
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worth of packaging cost, electricity, labor, transportation, advertisement cost etc. It comes to approximately Rs 10 per cup. Depending on the variety, the profit margin therefore can go up to even 100%. While for bigger players, the distribution and advertising eats. Besides selling their products through kiosks, parlors and push carts, a significant part of the revenue comes from corporate sales. Says Pankaj Chaturvedi, About 55% of our business is contributed by exclusive ice cream parlors and kiosks while 30% is from corporate or food service (as we categorize it) sales. The rest comes in What is the cost of setting up a small scale ice cream manufacturing unit? Manish Vithalani says, The cost for setting up a small scale ice cream plant could come to approximately Rs. 10 lakh, from retail and exports. including the cost of a ice cream plant, labor (3-4), storage freezers, and so on. This price is not including the land cost. Of late, a number of players who have entered the segment are playing on innovative aspects, for example, natural flavors made from fruits. Some players like Mumbai-based Space Dotz are also coming up with newer technology. According to Dilip Jagad of Space Dotz, Unlike the normal Ice cream, our product comes in the form of balls. Besides, the product has no air content and uses cryogenic technology, used in rocket science. Another noteworthy innovation was the pro-biotic and low fat ice cream bought into the market by Amul.
1.1.4 The Challenges:

There are several challenges that affect the industry adversely. As mentioned earlier, the industry players not only face competition from their competitors, but also from other
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like foods. Though changing, consumers still consider ice cream as a dessert and a side item. Sharing his experience, Sidharth Jaiswal of Monginis , a food bar chain, says, (Chandra, 2010)We had introduced ice creams on an experimental basis in our food outlets in some part of country. We observed that consumers ordered ice creams as a side item or only when they were accompanied by children. We eventually decided not to move ahead with it. Moreover, of the ice cream consumption in India, nearly 60% is accounted to by three flavors of vanilla, strawberry and chocolate. And to be on the safer side, major players tend play around these flavors only. For big players, regional competition from smaller players is another major issue. Another major problem faced by the industry players, especially while expansion, is poor infrastructure such lack of cold storage and in case of rural penetration, even erratic power supply becomes an issue. This is especially true for big players. Manish Vithalani says, Besides the presence of other players, another hurdle is the the high rent charged for floor space, especially in malls. This also becomes a problem when we try to expand.
1.1.5 PORTERS FIVE FORCE ANALYSIS

Porter identified five competitive forces that shape every single industry and market. These forces help us to analyze everything from the intensity of competition to the profitability and attractiveness of an industry. Figure 1 shows the relationship between the different competitive forces. Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to
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develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. In order to supply and asses the strength of external competitive forces on the icecream industry. I utilized a common analytical tool, Porters five forces model. It is used to get a general overview of the threats to the profitability of ice-cream business, though the model does not help in analyzing firms specific demands, it gives some specific information of its business environment.
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Buyer power Buyer power is determined by various factors such as switching costs, the relative volume of purchase, the standardization of the product, elasticity of demands brand identity, and quality of the products. Customers are able to substitute from one brand of ice-cream to another at any point of time. There are many Ice-cream products and brands to choose from, so the buyers cost of switching to competing brands is relatively low. Bargaining power of customer is high because the competition is very high and there are many players i.e. local as well as branded players, take for example Kolkata has as many as 32 brands of ice-creams. Amuls strategy must include strong product differentiation so that buyers are less able to switch over without incurring large costs, Amul upholds a strong brand identity in the ice-cream industry. It is perceived as having a higher quality. Thus it is having stronger point of differentiation.
Supplier power The suppliers to the ice-cream industry include dairy farmers, paper container manufacture, and suppliers of various flavors. The principal inputs are commodities available in the market. Factors affecting the bargaining power of supplier include the threat of forward integration and the concentration of suppliers. There exists numerous potential
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suppliers of ingredients .The ingredients provided by each supplier are not unique or greatly differentiated. Furthermore Ice-cream manufacturers are able to switch between suppliers quickly and cheaply. Also many of the suppliers viably are tied to the well- being of large, established companies. There for the bargaining power of the suppliers is rather low. However Amul being milk co-operative has to empower the milk producers and farmers so that they get a remunerative return. Therefore a certain power is vested in the hands of the farmers societies.
Threat of substitutesThere are no perfect substitutes to ice-creams because of its very nature. However many substitutes product are available within the desert and frozen food industry (cookies,
cakes chocolates, etc) which are basically food items which are consumed at leisure. So the threats of substitutes are high, cold drinks are the major substitute of it and it is mostly a desert item so sweets are also a substitute of this like in the parties.
Potential Entrants:
The barriers to entry within the ice-cream industry are moderate due to brand preferences and customer loyalty towards the larger and more established companies.
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Other obstacle to new entrants includes the requirement of large source of capital, specialized mixing facilities and manufacturing plants. In addition the accessibility of distribution channels can be difficult for an unknown firm with a little or no brand recognition.
Industry Rivalry:
The principal competitors in the ice-cream industry are large , diversified companies with significant greater resources such as Amul . Kwality Waals Mother diary, Vadilal and Cream and Bell , besides a low threat of local manufacturer. Rivalry can be characterized as intense, given that numerous competitors exists, the cost of switching to the rival brand is low, and the sales increasing tactics employed by other rival threatens to boost rivals unit volume of production. Also there has been a surge in the number of Ice-cream parlors such as Baskin robins, Gelato. The growing popularity of such premium parlors providing specialty Icecreams will also tend to affect the business of existing companies.
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2.0 GCMMF: An Overview (Amul) (Amul:GCMMF, 2010)

Gujarat Co-operative Milk Marketing Federation (GCMMF), custodian of the Amul brand is India's largest food products marketing organization. With its wide product portfolio GCMMF today has a turnover in excess of Rs. 6700 Cr. With a singular focus on marketing and distribution, GCMMF today reaches consumers in all parts of the country. A state level apex body of milk co-operatives in Gujarat, it has been an endeavor of GCMMF to provide remunerative returns to the farmers and they are facilitated by specially trained consultants, 736 Village Dairy Cooperative Societies (VDCS) have conducted their Vision Mission Strategy Workshops, prepared their Mission Statements and Business Plans for next five years. Till date, 6508 VDCS have prepared their mission statement and Business plan under the initiative. During the year, 5173 VDCS have also reviewed their business plan under annual revisit of VMS and have prepared action plan for next year to propel the momentum gained through VMS. During the year three member unions namely Rajkot, Bharuch and Gandhinagar have initiated VMS program in their VDCS. The core groups have trained 145 consultants of these Unions for expanding the reach of the initiative. It also serves the interest of consumers by providing quality products which are good value for money. The range of the Amul Products is following:
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o o o o o o o
Amul Milk : Amul Butter: Amul Malai Paneer Amul Kool Flavoured Milk: Amul Cheese : Amul Masti Dahi : Amul Ghee:
Amul Sweetened Condense Milk:
o o o o
Amul Masti Butter Milk: Amul Milk Powders: Amul UHT Cream: Amul Mithai:
2.1 India a booming ice cream market up for grab (Amul Ice-cream, 2010)
Amul Ice Cream was launched on 10th March, 1996 in Gujarat. The portfolio consisted of impulse products like sticks, cones, cups as well as take home packs and institutional/catering packs. Amul ice cream was launched on the platform of Real Milk. Real Ice Cream given that it is a milk company and the wholesomeness of its products gives it a competitive advantage. In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999. Today ice creams are equally popular among children and grown-ups. Eating ice creams have become an occasion for celebration. In India alone, the organized ice cream industry has a turnover of around Rs. 2000 Cr. and the market is witnessing a booming growth rate of 12-15% annually (Source: Euro monitor 2008). Per capita consumption of ice creams in India is around 250 ml compared
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to 23 liters in the US, 18 liters in Australia, 14 liters in Sweden and 800 ml even in neighboring Pakistan. This presents a huge opportunity for organized players in the ice cream industry.
2.2 Amul - The leader in Ice Creams

Since its launch in 1996, Amul Ice Creams have consistently combated competition like Kwality Walls, Mother Dairy and other brands. The customers have shown huge faith in the quality of Amul Ice Creams and today its the No. 1 ice cream brand of the country. Nearly 4 times as large as its nearest competitor, it is now the only national brand. Amul has been able to write such a success story because of the quality of its products, economic pricing and the belief consumers have in the brand. Amuls market share has increased substantially to 38% through distribution network in more than 800 towns and approaching toward new emerging market. We at Amul are capable of delivering ice cream from Kashmir to Kanyakumari and from Gujarat to North East. No other ice cream brand has been able to cater the nations ice cream demand in such a wide geographical area. It makes Amul Ice Cream, Indias only National Brand! While growing at a phenomenal pace, Amul has always taken care to offer delectable flavors to all age groups across the society. Over the years, Amul has added diverse flavors to its range of ice creams so that one can have variety of choices. Amul offers a selection of almost 68 products with flavors
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ranging from exotic Honey Banana to Kesar Pista and many more. Apart from the delicious individual novelties Amul also has ice creams for the health conscious. In January 2007, Amul introduced Sugar Free & Pro-Life Pro-biotic Wellness Ice Cream which was a first in India.
2.3 Amul Scooping Parlors

Today people like to spend quality time with their family outside the home. With increasing income they love to spoil themselves with a variety of choices. Keeping up with the latest trend Amul has started Ice Cream Scooping Parlors across the country. One can enjoy world class ice creams, Sundaes, shakes and other ice cream concoctions in a cozy and nice ambience at these parlors. Its fun time for the entire family. Currently Amul has Scooping Parlors across the country including Mumbai, Chennai, Delhi, Bangalore, Thane, Pune, Kolkata, Nagpur, Ahmadabad and Coimbatore. Apart from these, there are more Amul Scooping Parlors coming up in different parts of the country. These Parlors have been well received by customers and are doing upbeat business. The recipes on offer at these Scooping Parlors are designed by Amul. The maximum retail price of the products is pre-determined by Amul. The disposables and consumables are also standardized by Amul and supplied by parties approved by Amul. Amul, now offers an excellent business opportunity to entrepreneurs who can become franchisees of the Amul Scooping Parlors and be a part of the growing ice cream industry
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with Indias most popular brand. You can earn extremely attractive returns even with a relatively moderate investment.
2.4 Investment Required

An owned or a leased air-conditioned shop of 300 sq.ft. at a prominent location Refundable Brand Deposit Renovation & interiors Equipment Working Capital Total * Approximate Figures Rs.50,000/-. Offer valid for limited period. Rs. 50,000/- # Rs. 75,000/Rs. 200,000/Rs. 25,000/Rs. 350,000/- *
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Equipments Required Total investment and required equipment which will make a standard and visible Amul Parlour is given in the table.
Equipments Scooping Cabinet with SS bowls Waffle Cone Machine Mixer/Grinder Cone Holder/Toppings Tray for placing Sauces, Nuts etc. Visi-Coolers Deep-Freezers - 2 Nos. POS Machine Total Cost
Cost in Rs. 30,000 13,000 3,000 1,000 28,000 50,000 25,000 150,000
ROI - Indicative Statement

Total in Rs. Sales (Value per month) Gross Margins Earned Less: Electricity Less: Rentals Less: Manpower Net Profit per month 150,000 75,000 5,000 20,000 10,000 40,000
So the net profit per month comes from investment would be 40,000 and the Break even will come in within 2 years.
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Operation
The franchisees shall be supplied with pre-packed Amul Ice-Creams/Amul products in different varieties and volumes as per their requirement through authorized wholesale distributors. The franchisees shall purchase necessary toppings, sauces and consumables from approved vendors/brands. The products is to be sold from these Parlors would be as per the recipes and prices approved by Amul.
2.5 Amul: Kolkata Market

The face of Amul in Kolkata market is totally different than its Indias position. The market share of Amul in Kolkata market is nearly 20% and Kwality is about 40% just opposite of National market. But this is happening. What are the reasons behind the backwardness of Amul in this market? Actually there is a big gap in supply and demand of Ice-cream. Retailers are ready to keep Amul but they want good supply of Ice-cream. Scooping parlor that are having pure Amul products, they are also having problem in supply of some of the variety of Amul. It means availability of product in the market is very less. People know the brand of Amul but they are getting at exact time and place. When I was doing customer survey, I found that most of the people like Kwality because it is easily available. They dont bother about the price. When I asked about the price they said,
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Price doesnt matter, only availability matters. Suppose I want to eat a Ice-cream, my first choice would be brand and if not then I go for any brand that the important thing in selling of Ice-cream. People dont bother about the company or brand they only know I want an ice-cream. So Amul must need to increase the availability of Ice-cream in Kolkata market so that penetration and visibility will increase and they will go for Amul because we are giving them low price that is the strongest point Amul has.
2.6 Mission- (Amul:GCMMF, 2010)

Last year in speech of Chairman Amul India Mr. P. G. Bhatol described the mission2020. In his mission-2020 policy, he clearly defined the process to achieve a projected group sales turnover of 27000 crores (Rs.270 billion) with the investment of 2600 crores. In his speech he said, I am glad to inform you that all of our dairies have started activities to achieve the planned targets. It may be noted that Kaira Union has commissioned a state-of-the-art Paneer Plant and also a whey drying plant. Our Sabarkantha Union too is in process of commissioning a similar Paneer Plant. Our Mehsana Union has expanded capacity to 9.61 lakh litres per day at its dairy at Manesar near Delhi. Banaskantha Union too has embarked on installing new powder plant and cattle-feed plant which shall be commissioned soon. New cattle-feed plants are being put up by Mehsana and Valsad Unions as well.
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2.7
SWOT ANALYSIS
SWOT analysis is a scan of internal and external factors to the firm can be classified as Strengths, Weakness (Internal) and Opportunities Threats (External). The SWOT analysis provides information that is helpful in matching the competitive environment in which it is operating. As such, it is instrumental in strategy formulation and selection.
INTERNAL
Strengths
Brand Image Pure Ice-Cream Varieties in Product Customer Base Market Position Low-Pricing
Weaknesses
Distribution channel Sales Force Response Lateness Less Attractive Schemes
Opportunities
New Emerging Market Potential Retailers Growing demand for Ice-Cream Strategic Initiative
Threats
Intense competition New Technology Lose of Key Staff Government Regulation
EXTERNAL Strengths
Brand Image- Amul is a well known brand in the market which shows the powerful
strength of the company in the market. Amul has been operating its business in milk
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and milk products are known for good quality of the product. It provides varieties of product in the market not only in Ice-Cream segment but in all types of milk products. After launching Ice-cream in 1997 in Indian market, Amul is leading player since then and now. Purity of Product- Customer preference of buying Amul ice-cream is due to the purity of the product. The reason for Amul to be no.1 is purity of the Amul Ice-cream. No other than Amul writes Real Milk Real Ice-cream, because companys strength is Purity. Many brands currently use frozen dessert/ Vegetable oil in making of Icecream but Amul uses Pure Milk based Ice-cream. As per the rule of Government, Icecream maker should have to check the quality of micro-Bacterial level. Amul standard is as following Legal requirement (As per BIS)
<90 / gm 250000 / gm
Particulars
Coliform / gm SPC / gm
AMUL standard
Nil coliform count We try to keep 10000/gm or less
Range of product- According the finding of survey, 70% Customer preference in

buying of Ice-cream depends on variety of product. They always prefer to buy new type or new flavor of Ice-cream. In this finding Amul provides a number of verities and flavor.
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Customer Base- Amul always represents its products at customer level since inception. Its the image of Amul which made a roadmap in Ice-cream segment a leading player within 13 years. Availability of Amul pushes customer to go for Amul first than other brand.
Market Position-
Before starting of Ice-cream business Amul was no-1 brand in
dairy industry in Indian market. Market position helped him acquiring market shares in Ice-cream segment and today Amul Ice-cream is no-1 in Indian market. So if today, Amul launches new product or variety, marketing or extensive advertisement doesnt require.
Low-Pricing- Amul is operating its business in all over India and some of the product is exported in nearby country. Owing to mass production and new technology Amul is having low operating cost; benefit in pricing of its product low compare to competitors.
Weaknesses Distribution Channel- There is always a hurdle to fulfill the gap between supply
and demand of Amul Ice-cream. After visiting some part of north Kolkata, I found that there is a problem of proper supply of Ice-cream in these areas. They are pretty interested of keeping Amul Ice-cream because of Strength Company have. But they want assurance of regular supply. The demand of Amul Ice-cream is huge and if Amul
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improve its distribution channel then definitely companys market share will improve in North Kolkata.
Response Lateness- Amul is the centralized authority and all the important decision
is taken and implemented from its main branch Ahmadabad. Every claim response goes under old centralized process which takes a lot of time which is creating bad impression in the market. I met some of Pure Amul outlet who was selling only Amul Ice-cream, but due to some of claim and late response from company force them to leave keeping Amul. So company should give more focus on problem finding and quick response of all the problems.
Less Attractive schemes- Every business man thinks to invest in new business to
generate more profit or increase its business. Many competitor of Amul is giving great schemes and profit margin to the retailers which impress retailers to keep their products in spite of keeping Amul. Like, Kwality walls has introduced new schemes, if you take amount worth of 40 thousand in one time you will get a new color television free, and 1 lakhs then you will get a So this time of schemes increase the sale very rapidly.
Opportunities New Emerging Market- Kolkata is a big market and the expansion rate of Kolkata
is about 7-8% yearly (India, 2010). So Amul has great opportunity to go in these emerging markets. And there are so many other places where Amul have zero
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penetration. Like one of the Area is Nagar Bazaar and near of that. So Amul have not penetrated in whole Kolkata. It is the opportunity of Amul to go in new emerging market where demand exists but due to unavailability of Ice-cream customer doesnt buy.
Potential Retailer- After visiting most of the part of North Kolkata we found that
there are number of retailer outlets that are ready to take Amul Ice-cream but they are not provided. We total found about 100 outlets that are ready to keep Amul Ice-cream. So Amul needs to do market survey and force their sales team to work for that. This will increase the penetration and reach of Amul Ice-cream at every street.
Growing Demand for Ice-cream- From the previous data of consumption of Icecream in India shows that the Ice-cream demand is growing at the rate of 12% annually. It means Amul has the opportunity to increase its sale at the rate of 12% or more annually.
Strategic Initiative- Amul initiated a number of strategic measures in the recent

period. These measures include the expansion of its manufacturing capacity and Self Leadership Development program. India is a country with more than 6.7 million FMCG outlets (AC Neilsen, 2009). Thus, to cater the ice cream demand of the nation, Amul is focused on retail outlets through strategic planning. Distributor along with their stake-holders undergo a vision mission strategy workshop at their level which would eventually integrate each of them in the process of organizations strategic
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planning and enable them to manage their own business efficiently by meeting the challenges of competitive environment. In the process, Distributor prepares his
mission statement and business plan for the next few years.
Threats Intense Competition- Amul faces strong competition in Ice-cream business in Kolkata. The competitors of the company include multinationals such as Kwality walls (HUL) and other local brands who are offering more to the distributor as well as retailer. Kwality walls is giving freeze to every retailer free of cost and many more to the distributor which attract retailers to go for Kwality. Other competitor including Mother dairy, and Metro is giving 25% margin to retailers and 15% margin to the distributor. Kwality walls has greater financial or marketing resources than Amul, and may be able to devote greater resources to sourcing, promoting and selling products. New Technology- Many new and Innovative company are coming with new technology which may cut the operating cost or they are using vegetable oil to make Ice-cream which give them high profit margin and low operating cost. The new way of making Ice-cream can compete Amul profit margin as well and operating cost.
Lose of key staff- Many company have such threats that if it loses the major and productive key staff then the sales and profitability will decrease. Currently in
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Kolkata, my mentor and sales manger Mr. Shyamal Gosh is a key staff for Amul in Kolkata market. He knows the whole scenario of Kolkata market even, he knows what are shops which is key player for Amul and who are the good distributor who can grow. His thinking is always in long-term. If such kind of staff, Amul loses then definitely Amuls sales growth would be in trouble. Government Regulation- The Prevention of Food Adulteration (PFA) Rules, 1955 (Department of Industrial Policy and Promotion, 1955)define ice cream as a frozen product that contains not less than 10% milk fat, 3.5% protein, 36.0% total solids, and 0.5% permitted stabilizer and emulsifier. Players who deviate from these norms tactfully call their product "frozen dessert. However, it is illegal to sell ice cream which has content below these specified standards.
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3.0 Work: At company

My job at the company is To improve the visibility and penetration of Amul Ice-cream at retail level at the assigned specific area. I have been given some of the northern Kolkata i.e. G.L.T. Road, M.N.K. Road, Dunlop, Banhoogly, B.T. Road, Baranagar Bazaar, Deshbandhu Road, and Bagha Jatin Road. I was told to visit this area and find out the problem of retailers, why our penetration in these areas is less. I was also told to increase the no. of retailers to improve penetration in these markets. In the process of making retailers, I have been given the details of plan and schemes currently company is offering i.e. HADF (Hamara Apna Deep- Freezer), HAPC ( Hamara Apna Push-Cart) and 17.5% margin on price to the retailers. Basically HADF plan is for those retailers who are interested to buy new freeze. Company offer different brand of deep-freezer at 20-25% discounted price from market. Company has tie-up with 5-6 deep-freezer making company such as Blue Star, Carrier, Haier etc. Company also gives free Ice-cream as according to the size of the Freezer. For example, on the size of 300 liters freezer, Company gives 3000 worth of Ice-cream on price free on three or four installment and on the size of 400 liters 4000 worth of Ice-cream. Then as assigned the area I went to the distributor who is capturing these areas that is Aarhna Distributor. I took the information about the distribution channel, his business, area currently he is covering, and hurdles he is facing. After visiting I came to know that he did not get supply of Ice-cream from last 5 days. Basically his problem was no support
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from company and supply of Ice-cream. After knowing this I put all the issues in front of my company mentor then he told me reason of problem. He told me that supply was affected due to implementation of SAP in the organization and within 6-7 days it will be completed. Owing to SAP implementation I found that most of the retailers were not getting proper supply of Ice-cream. So I decided that I will first do Competitor analysis then I will do work for Amul. In the process of competitor analysis I searched who are the main competitors, affecting directly Amul sales. I came to know that Kwality (No.1 Player in Kolkata market) and Metro are the nearest rival of Amul. In the process of that I met with the distributor of Kwality walls and Metro. I get to know that there is only one distributor of Kwality covering the entire northern region of Kolkata. Metro is having 3 distributors covering the entire northern Kolkata. I also get to know that Kwality is having a Push-cart distributor who is having 20 Push-carts covering the tourist and visiting places in Kolkata. I tried to compare the different strategy of Competitor with Amul and some of the strategy is awesome that is applicable for the size and location of the retail shop. In the process of that I collected data regarding, what factors affecting retailers to take the retailer ship of a company. Final analysis is done further in the Analysis part. After doing the analysis of competitor, I went in the market and started searching the potential retailers. In that process, I found that many retailers who were keeping Amul are not satisfied due to Supply problem. I also get to know that Amul, a brand is known for
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all but when customer ask for Amul and if it is not available then they have to switch for other brand. I asked about the perception of Amul from consumer. One of consumer, she is a housewife, said that I always prefer to buy Amul butter but many time I found that butter was not available. So I did not have option and I go for other brand. A senior citizen told that I would also like to have Ice-cream, I am a dubieties patient, I came to know that Amul have some sugar-free Ice-cream. I have eaten only one time after that I couldnt get that. So after revising these perceptions, I analyze myself that the demand of Amul Ice-cream not only Ice-cream but also other products is much more than the supply of products. My 40-45 days visit in the market gave me an awesome knowledge about the market how a company operates its business, how a business is done. I have found about 28-30 retailers for Amul. These retailers are ready to keep Amul. When I asked about the perception of Amul then most of them told, I just know that Amul is brand and have variety. If I give Amul Ice-cream to anyone then they will not say, give me other brand because of brand and the price of product is also low. At every week, I gave the address and phone number and requirement of interested retailers to distributor and ask him to insure me about the supply of Ice-cream within 3days. After one week I asked to those retailers whom address I have given to distributor that supply is done or not. So in this process I gave about 28-30 new retailers list after the completion of my work. After the work of market I came to know from distributor that last month sale has increased by 35-40%% from previous month.
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4.0 Objective of Study:4.1 Visibility:- As the given topic To develop the strategy for improving the visibility
and penetration of Amul Ice-cream in Kolkata market at retail level. Working on the part of visibility of Amul Ice-cream in northern region of Kolkata, first I develop a way how to go for improvising the visibility of Amul. My first step in this process is to collect the detail of tourist places and main market where public will get to know about Amul Ice-cream. I also try to collect the information where the Amul is yet to be visible. I have made a report on improving visibility based on the requirement of retail outlet. I.e. hoarding, Banner, Amul Poster, Amul Price-list, Amul Pamphlet, flex-board, ShineBoard etc. The report of all the requirement of these materials I have given to office. I have also suggested giving all the required material to the new formed retailers. To improve more visibility I have collected the rough idea of visiting places and I personally visited these areas. I found that there is nothing showing the brand of Amul Ice-cream out there. The list of these places are following:
Rabindra Sadan Shaheed Minar Raj Bhawan Victoria Memorial Vidyasagar Setu Writer's Building Marble Palace
Botanical garden Birla Mandir Thanthania Kalibari Belur Math Dakshineshwar Temple Pareshnath Jain Temple Nakhoda Mosque
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To be more visible in the market these visiting places should shown either an outlet or a push-cart or Posters, banners and hoarding which will show Amul existence.
4.2 Penetration:- Market penetration occurs when a company enters/penetrates a

market with current products. The best way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting non-users of your product or convincing current clients to use more of your product/service (by advertising etc). In the process of improving penetration of Amul Ice-cream I searched potential retailers who are interested of keeping Amul Ice-cream. The list the new made retailers are given in upcoming sheet. I just used the brand of Amul, and they are convinced. The new penetration level of Amul Ice-cream is different after making of new retailers. I used the map of that area and just put all the retail outlet of Ice-cream in that area. Now the map is showing pretty different and good because the penetration level increased by 2030% out of total in these area. Now Amul outlet will be in almost every road and street of these areas. Now the penetration level is different and Amul has total 61 outlets in these areas. So definitely increased. penetration level has
Multivendo r, 34 Kwality, 67
Retailers
New, 26 Amul, 35
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Area Covered:- Dunlop, Banhoogly (Map, 2011) Multivendor ( ) Kwality Walls ( ) New Convinced Amul Outlets ( ) Amul + Other Brand ( )
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Stretch (Google, 2011) 2.2 K.M 0.35 K.M 1.89 K.M 1.53 K.M 0.49 K.M 1.37 K.M 0.89 K.M 1.12 K.M Total
No. 1 2 3 4 5 6 7 8
Name of Beat G.L.T.Road Baga jatin Road Deshbandhu Road M.N.K.Road B.K.Moitro Road B.T.Road Dunlop Banhoogly
Total Ice-cream Retailers Amul Kwality M.V 31 7 18 6 3 2 2 1 22 6 8 9 12 6 6 3 4 2 2 1 11 4 5 2 11 4 8 1 9 4 3 2 103 35 52 25
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List of New-Retailers
NAME OF NO. RETAILER 1 Caf Delina 2 R.Snacks Annada Maoiee 3 sweets 4 M.B Caterer Mukerjee 5 Confectionary Subh lakshmi 6 Variety Stores 7 Subrha Stores 8 Tara Maa Stores 9 Sridugra Bhandar 10 Shefali Stores Annupurna Roll 11 Center Suraj Shekhar 12 Sadhukhan 13 Nag sweets 14 Subrojyoti Maa Kali Mistanna 15 Bhandar
AREA Banhoogly Banhoogly
ADDRESS 77-Raimohan Banerjee raod Banhoogly 111/3 Near P.C.M College, Bangoogly
NAME OF BRAND CURRENTLY SELLING Metro, Rollick Metro, Rollick
PHONE NO. 8013160778 36458531
B.T. Road G.L.T. Road G.L.T. Road G.L.T. Road G.L.T. Road M.N.K Road M.N.K Road M.N.K Road M.N.K Road B.K.Motira Road Dunlop More Dunlop More Dunlop More
209-B.T.Road K-36 G.L.T. Road Kol-36 101/4-G.L.T. Road ,Kol-36 265/3-G.L.T. Road ,Kol-36 105/1- G.L.T. Road K-35 295-M.N.K. Road K-36 133/12-Torgiwar More M.N.K. Road K-36 137-Torgiwar More M.N.K. Road K-36
Kwality Metro, Kamal's Kwality Metro, Rollick Metro, Rollick, Amul Metro Metro, Rollicks Metro, Kamal's
25770120 25770081/9830243 471 9830199341 9748636122 9433428802 9874888907 9748965536 25785521
177/2- M.N.K. Road K-36 107-B.K.Moitra road K-36 B.T.Road Block-A Dunlop More K-108 26-Robindra Nagar near Gurudwara K-108 185/6-Robindra Nagar K108
Metro, Big Cup Metro, Kamal's Metro, Rollick Metro, Rollick Kwality, Metro
9239397455 9836969720 9836220799 9051681178 9903612045 Page | 41
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141-B.T. Road near khalsa Model High school dunlop more K-108 Kwality 134-G.L.T. Road, K-36 10/1-A Deshbandhu Road K-35 66- Deshbandhu Road, (East) K-35 66- Deshbandhu Road, (East) K-35 137- Deshbandhu Road, (East) K-35 262-B.T.Road K-36 262-B.T.Road K-36 136/2-Bagha jatin Road Baranagar, K-36 119/4-P.G. Road near Brananagar Ramkrishan Math K-36 1/5-B.K.Muti Road K-86 Kwality
16 Gurunanak Stores 17 Sakorika Stores
Dunlop More G.L.T. Road
9231503947 25773766
18 Tripti Mahal 19 Pal Stores
D.B. Road D.B. Road
Kwality Kwality, Metro
9143023031 9831699081
20 Kashko Varities 21 Annapurna Store 22 Dilip Stores 23 Bhabatara Sweets Ganeshwari Pan 24 Bhandar
D.B. Road D.B. Road B.T. Road B.T. Road Bagha Jatin Road
Kwality, Metro Metor Metro, Kamal's Metro, Rollick Metro, Amul
9831699081 9339563446 9830163701 9775627734 25775321
25 Globe Tailors 26 Udisha Enterprises
P.G. Road B.K.Muti Road
Kwality, Metro Metro, Kwality
8981625986
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Analysis of Result (Marketing Research, 1994)

The Analysis is done on the basis of collected data through questionnaire filled by about 150 retailers. Questions are made on the basis of different parameters which is affected retailers to put that company products. Many retailers are multi-vendors who are keeping more than one brands of Ice-cream. I asked them to fill the question and give the rating of the question based on brand, currently they are keeping. I have surveyed 50 retailers of each of Kwality, Amul and Metro. On the basis of first 3-visit in the market, I found the following parameters that affecting and attracting the retailers. Based on these parameters, data has been collected. (Malhotra, 2010)
1. Brand Image 2. Profit Margin 3. Supply of Product 4. Demand of Product 5. Price of Product 6. Range of Product 7. Frequency of feedback of the services 8. Company Support 9. Material of Visibility 10. Service of the company 11. Claim Response
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12. Offers & Schemes Initially these parameters and some more are tested. After testing the parameters, our group found that the above mentioned parameters are directly affecting and attracting the retailers. The data has been collected on the basis of the above mentioned parameters on 5-point scale. After getting the data I used t-test: Paired two samples for means. This basically relates and compares the two variables statistically. t-test is a tool to relate between the two variables under 95% confidence limit of normal distribution curve. I used excel to test the data and the analysis are following. Qualitative Analysis:Before going to Quantitative part, there are some qualitative data that needs to analyze or compare with competitor I.e. time of delivery of product, flavor in demand, size and type in demand, frequency of visit etc. Based on the prepared questions, I collected these data from Amul, Kwality and Metro retailers and got the following facts. 1. Type of Ice-cream is in demand:Based on the collected data I found that most of the people like to eat sticks, cones, and cups. Only 9% Ice-cream family pack is sold on whole basis. It means to say that out of Rs. 100 customer spend 9 only to buy for family pack.
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Type of Ice-cream
Family Pack 9% Cups 24% Cones 32% Sticks 35%
2. Flavor in demand: Most of the people prefer to eat vanilla, Chocolate, or 2-in-1. It may be either due to least cost or new taste they dont want to try. The demand of vanilla is high followed by 2-in-1 and chocolate.
Butterscotch 10%
Other 2%
Flavor in demand
Vanilla 34% Chocolate 26% 2-in-1 28%
3. Time of Delivery: - I try to find out the time, Distributor mostly deliver the product during 01-02 P.M. But there should be a time for delivery that retailer should entertain him very well. It may be happen that if distributor delivers the product either during leisure time or when the frequency of customer is less.
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Time of Delivery
10-11 A.M 14% Any time 18% 12-01 P.M 17% 01-02 P.M 32% 11-12A.M 8%
6-7 P.M 7% 5-6 P.M 4%
From the above fact I also get to know that distributor delivers product at any time is about 18%. It means retailers dont know at what time deliver will be done. This is one of the hurdles of distribution channel that can affect business of distributor as well as retailer. It may be one of the reasons of blaming distributor or company that Supply to aata hi nahi hai. 4. Frequency of Visit:-
Frequency of Visit
3 2.5 2 1.5 1 0.5 0 Amul Kwality Metro 1.75 2.45 2.12 Amul Kwality Metro
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It is one of main reasons for the problem of supply. Suppose the distributor visits only 1 or 2 days in a week and the demand of product in that market is good then retailer force to keep other brand to fulfill the demand. I try to analyze and compare the no. of visit by the distributor in a particular area. I found that Amul on an average visit is only 1.75 days in a week it means distributor visit in a particular area is only 1-2 days in a week. If I compare it with Kwality the average visit of Kwality distributor is 2-3 days in a week in a particular area. It might be due to no. of vehicles, and his big distribution channel. But Distributor needs to increase the no. of visit.
Quantitative Analysis: (Malhotra, 2010) Brand Image:
Brand Image
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 4.46 4.18 3.06 Amul Kwality Metro
Amul
Kwality
Metro
It can clearly be seen that there is slight difference between Amul and Kwality walls about the perception of Brand Image among retailers. Other company, metro has some good perception among few retailers in some of the specific are. To confirm this data I
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have applied statistical tool to analyze data statistically. For applying statistical tool I took into consideration Amul and Kwality as they both are leader and successor in Icecream Industry.
Excel Output:
Objective:- To know whether there is any difference in the opinion of retailers about the Brand between Amul and Kwality. Hypothesis: Ho: There is no significance difference between the responses of retailers about the brand of product. H1: There is significance difference between the responses of retailers about the brand of product. Output:t-Test: Paired Two Sample for Means Mean Variance Observations Pearson Correlation Hypothesized Mean Difference df t Stat t Critical one-tail p-value Amul 4.449 0.253 49.000 0.278 0.280 48.000 0.057 1.677 0.022 Kwality 4.16 0.43 49
Interpretation:
The P-value from the table is less than p<0.05, means accept the null hypothesis at 95% confidence limit. I.e. there is no significance difference among the retailers about the perception of Brand of Amul and Kwality.
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Profit Margin:
Profit Margin
5 4 3 2 1 0 Amul Kwality Metro 3.56 3.38 4.42 Amul Kwality Metro
It can clearly be seen that there is slight difference between Amul and Kwality walls about the perception of Profit Margin among retailers. Other company, Metro has some good perception among retailers in profit margin. Because it is giving 25% margin than Amul (17.5%) and Kwality (16.5%).
Excel Output:
Objective: - To know whether there is any difference in the opinion of retailers about the Profit Margin given by Amul and Kwality. Hypothesis: Ho: There is no significance difference between the responses of retailers about the Profit margin given by the company.
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H1: There is significance difference between the responses of retailers about the Profit margin given by the company. Output:t-Test: Paired Two Sample for Means Mean Variance Observations Pearson Correlation Hypothesized Mean Difference df t Stat t Critical one-tail p-value Amul 3.571 0.250 49 -0.089 0.180 48 0.207 1.677 0.041 Kwality 3.367 0.362 49
Interpretation:
The P-value from the table is less than 0.05 (p<0.05), means accept the null hypothesis at 95% confidence limit. I.e. there is no significance difference among the retailers about the Profit margin given by Amul and Kwality.
Supply Chain:-
Supply
5 4 3 2 1 0 Amul Kwality Metro 1.52 4.5 3.76 Amul Kwality Metro
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It can clearly be seen that there is a big difference between Amul and Kwality walls about the perception of Supply of Products among retailers. Other company, Metro has some good perception among retailers about the supply of Metro Ice-cream. From the above diagram I can say that the supply of Kwality is very good in Kolkata market thats why Kwality is leading this market. Amul is suffering from lack of supply of their all the products in the market.
Excel Output:
Objective: - To know whether there is any difference in the opinion of retailers about the Supply of products by Amul and Kwality.
Hypothesis: Ho: There is no significance difference between the responses of retailers about the Supply of Products by the company. H1: There is significance difference between the responses of retailers about the Supply of Products by the company.
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Output:
t-Test: Paired Two Sample for Means Mean Variance Observations Pearson Correlation Hypothesized Mean Difference df t Stat t Critical one-tail p-value Amul 1.51 0.26 49 0.10 2.98 48 -61.83 1.68 0.49995 Kwality 4.51 0.26 49
Interpretation:
The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at 95% confidence limit. I.e. there is significance difference between the responses of retailers about the Supply of Products by the Kwality and Amul.
Price of Product:It can clearly be seen from the response of retailers that there is slightly difference between Amul and Kwality walls in terms of Price of Product. Other company, Metro has also some good perception among retailers who is in catering or taking order for party supply because of the less rate and good margin. From the above diagram I can say that the price of Amul is very less in comparison of Kwality. But Metro is offering lesser price some of party packs in Kolkata market.
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Price of the product

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Amul Kwality Metro 3.06 Amul Kwality Metro 4.44 4.54
Excel Output:
Objective: - To know whether there is any difference in the opinion of retailers about the Price of Product offering by Amul and Kwality.
Hypothesis: Ho: There is no significance difference between the responses of retailers about the Price of Product offering by the company. H1: There is significance difference between the responses of retailers about the Price of Product offering by the company.
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Output:
t-Test: Paired Two Sample for Means Mean Variance Observations Pearson Correlation Hypothesized Mean Difference df t Stat t Critical one-tail p-value
Amul 4.429 0.250 49 -0.037 1.380 48 -0.239 1.677 0.085
Kwality 3.082 0.660 49
Interpretation: The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at 95% confidence limit. I.e. there is a significance difference among the retailers about the Price of Product offering by Amul and Kwality.
Demand of Product:It can clearly be seen from the response of retailers that there is slightly difference between Amul and Kwality walls in terms of Demand of Product. Other company, Metro has some good perception among retailers about the supply of Metro Ice-cream.
Demand
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 4.24 4.4 Amul Kwality Metro
3.02
Amul
Kwality
Metro
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From the above diagram I can say that the demand of product of Kwality is slightly more than Amul.
Excel Output:
Objective: - To know whether there is any difference in the opinion of retailers about the Demand of products by Amul and Kwality. Hypothesis: Ho: There is no significance difference between the responses of retailers about the Demand of Products by the company. H1: There is significance difference between the responses of retailers about the Demand of Products by the company. Output:
Interpretation:
Amul 4.245 0.522 49 -0.110 0.160 48 -1.458 1.677 0.032
Kwality 4.408 0.247 49
The P-value from the table is than 0.05(p<0.05), means accepting the null hypothesis at 95% confidence limit. I.e. there is no difference about the perception of demand of product of Amul than Kwality among the retailers.
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Range of Products:It can clearly be seen from the response of retailers that there is slightly difference between Amul and Kwality walls in terms of Range of Product.
Range of Product
5 4 3 2 2.02 1 0 Amul Kwality Metro 4.62 4.2 Amul Kwality Metro
Amul is having more because it offers 68 varieties of products in different segments. Other company, Metro has only 4-5 varieties in the Kolkata market.
Excel Output:
Objective: - To know whether there is any difference in the opinion of retailers about the Range of Product by Amul and Kwality. Hypothesis: Ho: There is no significance difference between the responses of retailers about the Range of Product by the company.
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H1: There is significance difference between the responses of retailers about the Range of Product by the company. Output:
Interpretation:
Amul 4.63 0.24 49 0.16 0.42 48.00 0.22 1.68 0.085
Kwality 4.18 0.78 49
The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at 95% confidence limit. I.e. there is significance difference among the retailers about the Range of Product offering by Amul and Kwality.
Frequency of Feedback of the services:It can clearly be seen from the response of retailers that there is big difference between Amul and Kwality walls in terms of Frequency of feedback of the service. Other company; Metro has some good perception among retailers about the supply of Metro Ice-cream. From the diagram I can say that the supply of Kwality is very good in Kolkata market thats why Kwality is leading this market.
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Frequency of feedback of the service

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Amul Kwality Metro 1.9 3.08 Amul Kwality Metro 4.5
Excel Output:
Objective: - To know whether there is any difference in the opinion of retailers about the Frequency of feedback of the service by Amul and Kwality. Hypothesis: Ho: There is no significance difference between the responses of retailers about the Frequency of feedback of the service by the company. H1: There is significance difference between the responses of retailers about the Frequency of feedback of the service by the company.
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Output:
Interpretation:
The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at 95% confidence limit. I.e. there is a big difference among the retailers about the Frequency of feedback of the service provided by Amul and Kwality.
Material of Visibility
Material of visibility
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It can clearly be seen from the response of retailers that there is big difference between Amul and Kwality walls in terms of Material of visibility provided by these company. Other company, Metro also doesnt provide or invest in visibility of Ice-cream. From the above diagram I can say that the Visibility of Kwality is very good in Kolkata market thats why Kwality is leading this market.
Excel Output:
Objective: - To know whether there is any difference in the opinion of retailers about the Material of visibility provided by Amul and Kwality. Hypothesis: Ho: There is no significance difference between the responses of retailers about the Material of visibility provided by the company. H1: There is significance difference between the responses of retailers about the Material of visibility provided by the company. Output:
Amul 2.245 0.689 49 0.106 2.16 48 -32.867 1.677 0.3988
Kwality 4.41 0.25 49
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Interpretation: The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at 95% confidence limit. I.e. there is a big difference among the retailers about the Material of visibility provided by Amul and Kwality.
Service of the company:It can clearly be seen from the response of retailers that there is big difference between Amul and Kwality walls in terms of Service provided by the company.
Service of the company

From the diagram I can say that the service given by Kwality to retailers is very good in Kolkata market thats why retailers are very much satisfied from Kwality walls.
Excel Output:
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Objective: - To know whether there is any difference in the opinion of retailers about the Service provided by Amul and Kwality. Hypothesis: Ho: There is no significance difference between the responses of retailers about the Service provided by the company. H1: There is significance difference between the responses of retailers about the Service provided by the company. Output:
t-Test: Paired Two Sample for Means Mean Variance Observations Pearson Correlation Hypothesized Mean Difference df t Stat t Critical one-tail p-value Amul 2.286 0.792 49 -0.0599 2.16 48 -28.88 1.677 0.3245 Kwality 4.45 0.25 49
Interpretation:
The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at 95% confidence limit. I.e. there is a big difference among the retailers about the Service provided by Amul and Kwality.
Support of the Company:- It can clearly be seen from the response of retailers that
there is big difference between Amul and Kwality walls in terms of Support given by company. Other company, Metro has some good perception among retailers about the
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Support given by Metro to retailers. From the above diagram I can say that the Support given by Kwality is very good, even they are distribution deep-freezer free of cost.
Support of the company

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Amul Kwality Metro 2.02 2.9 Amul Kwality Metro 4
Excel Output:
Objective: - To know whether there is any difference in the opinion of retailers about the Support given by Amul and Kwality. Hypothesis: Ho: There is no significance difference between the responses of retailers about the Support given by the company. H1: There is significance difference between the responses of retailers about the Support given by the company.
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Output:
Amul 2.020 0.687 49 0.099 1.980 48 -25.898 1.677 0.294
Kwality 4 0.583 49
Interpretation: The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at 95% confidence limit. I.e. there is a big difference among the retailers about the Support given by Amul and Kwality.
Claim Response:It can clearly be seen from the response of retailers that there is a significance difference between Amul and Kwality walls in terms of Claim response time. From the above diagram I can say that the Claim response time of Kwality is very less.
Claim Response
4 3.5 3 2.5 2 1.5 1 0.5 0 Amul Kwality Metro 2.6 2.22 3.48 Amul Kwality Metro
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Amul also gives return if any claim is reported, but the time of response is very late. As Amul is a centralized organization so the process and lengthy procedure eats time of response.
Excel Output:
Objective: - To know whether there is any difference in the opinion of retailers about the Claim response time by Amul and Kwality. Hypothesis: Ho: There is no significance difference between the responses of retailers about the Claim response time by the company. H1: There is significance difference between the responses of retailers about the Claim response time by the company. Output:
Interpretation:
The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at 95% confidence limit. I.e. there is a significance difference between the responses of retailers about the Claim response time by Amul and Kwality.
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Offers & Schemes:-
Offer & Schemes

4 3.5 3 2.5 2 1.5 1 0.5 0 Amul Kwality Metro 1.96 2.46 Amul Kwality Metro 3.66
It can clearly be seen from the response of retailers that there is a significance difference between Amul and Kwality walls in terms of Offers & Schemes offered by these companies. Other company, Metro has some good perception among retailers about the Offers & Schemes offered by Metro. From the above diagram I can say that Kwality is offering many schemes in Kolkata market that motivate retailers to sell more & more products. It is clearly shown from the response of retailers that schemes of Amul are either old or not attractive.
Excel Output:
Objective: - To know whether there is any difference in the opinion of retailers about the Schemes offered by Amul and Kwality. Hypothesis:
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Ho: There is no significance difference between the responses of retailers about the Schemes offered by the company. H1: There is significance difference between the responses of retailers about the Schemes offered by the company.
Output:
t-Test: Paired Two Sample for Means Mean Variance Observations Pearson Correlation Hypothesized Mean Difference df t Stat t Critical one-tail p-value Amul 1.96 0.75 49 0.0904 1.7 48 23.4171 1.68 0.2342 Kwality 3.67 0.39 49
Interpretation:
The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at 95% confidence limit. I.e. there is a significance difference between the responses of retailers about the Schemes offered by Amul and Kwality.
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Conclusions:This project was about the problem finding in northern region of Kolkata market on Icecream segment of Amul. Todays market scenario says that Amul is lacking in northern Kolkata in terms of Visibility and Penetration. My work is to find out the cause of the problem, Amul is suffering and losing market. Based on the given project and market visit I found that most of the retailers are not having Amul Ice-cream. So I prepare some question based on initial finding from market and did retailers survey and also try to increase the no. of retail outlet of Amul. After analyzing all the collected information I found based on the outcome of the responses from universe survey (consisting Amul, Kwality, Metro). I conclude that Amul is having some good perception in the view of retailers in terms of Brand, Profit Margin, Price of Product and varieties of product. But Amul is having low market share and visibility in the market. It is because of Supply chain problem, frequency of feedback of the services taken by company employee, material of visibility given to retailers is very less in number, Service of the company given to the retailers, claim response lateness, and less no. of offers and schemes. These are the factors that helped the Kwality to be no.1 brand in Kolkata or else Amul will be leading.
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Limitation of Study:Since the study is done in only one region of Kolkata in a specific market. This result cant be generalized on all basis of Kolkata market. It might be possible that the scenario would be different in Eastern or Western part of Kolkata. There might be other possibility i.e. hiding of data by shopkeepers, sharing of personal grievances about the company, due to these reasons which can hinder the result we get from the survey. Still a lot of work requires making this project effective. Owing to being peak season many retailers were busy and did not give time to conduct survey. Some of the data like sales figure, amount of delivery and profit margin dont want to share.
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Recommendations: Company should focus on those parts of Ice-cream segment which demand is more, like vanilla, chocolate and 2-in -1 demand is more so come should focus of distributing these items more. As the fact coming form market survey that the distributor is coming at anytime or mostly afternoon when the shop is about to be closed. So distributor to ask for time in a specific area and ensure them that the time of delivery would be during these timing. Because this might be one of the factors which is affecting the supply of Icecream. Average visit in a specific area by the retailer is about 1.75 only. It means only 1-2 days of visit in a week, comparing to Kwality the average visit is 2.45 means 2-3 visit in a week. So company should instruct their distributors that the visit in an area should be more than 2 in a week. So that the supply problem will not hamper. To meet the demand, company should focus more on supply of products. As per the reflection from survey, said that there is a less supply of Amul products and some of the new products i.e. Pro-biotic and Sugar-free is not available in the market from 3-4 months. So company should supply at least one time in a month of these rare products, so that customer will carry on buying Amul. Based on the output of result from the survey, company is lacking in term of feedback of the services. So company should employee more people so that the
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supply and demand problem or any other service related problem remove quickly from market. Company should focus on visibility of products. Company should invest a little bit on visibility of Amul Ice-cream in a retail shop by showing them hoarding, banner, pricelist and Amul availability. To be a brand and be no.1 in Kolkata market, company should always shows strength in the market. This is possible only when there is no any bad impression about the company in the market. So company should focus on quick response for claim and any other problem. As every retailer wants more and more within a short span of time. So company should attract them by giving them gifts after completion of sales target. Company should always attract the retailers so that they will keep Amul Ice-cream by offering some Schemes.
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Bibliography AC Neilsen. (2009). FMCG report in India. India: AC Neilsen. Amul Ice-cream. (2010). Retrieved May 2011, from www.amulicecream.com Amul:GCMMF. (2010). Retrieved May 2011, from www.amuli.com Amul:GCMMF (Composer). (2010). Mission 2020. [C.-A. Gujrat, Performer, & Amul:GCMMF, Conductor] Gujrat. Chandra, P. (2010). Indian Ice-cream Industry Report. The Wall Street Journal , 27. Department of Industrial Policy and Promotion. (1955). Retrieved May 2011, from www.dipp.nic.in Google. (2011, June). Retrieved June 2011, from www.google.co.in India, T. t. (2010). Kolkata: Rate of Increase of Population. Kolkata: The times of India. Kumar, P. (2009). Ice-cream Industry Analysis. New Delhi: SVITS. Malhotra, N. K. (2010). Marketing Research. India: Pearson. Map, G. (2011, May). Google Map. Retrieved May 2011, from http://maps.google.co.in Marketing Research. (1994). Journal on Marketing Research , 237-243.
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ANNEXTURE
Questionnaire for Retailer:Qualitative Data1. How many years you have been retailers of ice-cream ? (a) <= 1 yrs 5 yrs 2. What type of ice-cream has more sales ? (a)Cups 3. Which flavor of ice-cream is most demanded? (a) Vanilla b) Chocolate f) Keep changing c) Butter scotch d ) Trutty Fruity e) 2 in 1 b) Sticks c) Cones d) Family pack e) Gallon f) Others, specify b) <= 2 yrs c) <= 3 yrs d) <= 4 yrs e) <= 5 yrs f) >
g) Others , please specify
4. What is the time of delivery, mostly distributor visit to your shop? (a) 10-11A.M (b) 11-12 A.M (c) 12-01 P.M (d) 01-02 P.M (e) 5-6 P.M (f) 6-7 P.M 5. What is the frequency of visit of distributor in a week? (a) 0-1 (b) 1-2 (c) 2-3 (d) 3-4 (e) 4-5
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Quantitative Data6. Please give the ratings to the following attributes with the product. (a) 5 for excellent very poor Attributes Amul Kwality walls Brand Image Profit Margin Supply Demand of Product Price of the product Range of Product Frequency of feedback of the service Company support Material of visibility Support of the company Claim Response Offer & Schemes
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b) 4 for good
c) 3- for ok
d) 4 for poor
e) 5 for
Metro
Others()

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PGDM, Report 2011

PGDM, Report 2011

PGDM, Report 2011

PGDM, Report 2011

PGDM, Report 2011

Name of the faculty Mentor-

PGDM, Report 2011

PGDM, Report 2011

PGDM, Report 2011

1.1 The Ice-Cream Industry: Overview

PGDM, Report 2011

PGDM, Report 2011

PGDM, Report 2011

1.1.3 Ice-cream Industry: Growth Rate (Kumar, 2009)

PGDM, Report 2011

PGDM, Report 2011

1.1.4 The Challenges:

PGDM, Report 2011

1.1.5 PORTERS FIVE FORCE ANALYSIS

PGDM, Report 2011

PGDM, Report 2011

PGDM, Report 2011

PGDM, Report 2011

PGDM, Report 2011

2.0 GCMMF: An Overview (Amul) (Amul:GCMMF, 2010)

PGDM, Report 2011

Amul Sweetened Condense Milk:

PGDM, Report 2011

2.2 Amul - The leader in Ice Creams

PGDM, Report 2011

2.3 Amul Scooping Parlors

PGDM, Report 2011

2.4 Investment Required

PGDM, Report 2011

ROI - Indicative Statement

PGDM, Report 2011

2.5 Amul: Kolkata Market

PGDM, Report 2011

2.6 Mission- (Amul:GCMMF, 2010)

PGDM, Report 2011

PGDM, Report 2011

Range of product- According the finding of survey, 70% Customer preference in

PGDM, Report 2011

Before starting of Ice-cream business Amul was no-1 brand in

PGDM, Report 2011

PGDM, Report 2011

Strategic Initiative- Amul initiated a number of strategic measures in the recent

PGDM, Report 2011

PGDM, Report 2011

PGDM, Report 2011

3.0 Work: At company

PGDM, Report 2011

PGDM, Report 2011

PGDM, Report 2011

PGDM, Report 2011

4.2 Penetration:- Market penetration occurs when a company enters/penetrates a

PGDM, Report 2011