REPORT

ON

“Study of distribution channel strategy and market penetration of

newly launched milk product Amul Moti at Amul Bhubaneswar
and Puri”

Gujrat Cooperative Milk Marketing Federation Ltd. (GCMMF)

By
Asish Behera
(22BSPHH01C0232)

1
 REPORT
ON

“STUDY OF DISTRIBUTION CHANNEL STRATEGY

ANDMARKET PENETRATION OF NEWLY LAUNCHED
MILK PRODUCT AMUL MOTI AT AMUL BHUBANESWAR
AND PURI”

By
Asish Behera
(22BSPHH01C0232)

Gujrat Cooperative Milk Marketing Federation Ltd. (GCMMF)

A report submitted in partial fulfilment of the requirements of the MBA Program of

IBS, Hyderabad.

SUBMITTED TO

FACULTY GUIDE COMPANY GUIDE

Dr. Surjit Kumar kar Mr. Subhasish Rout
(Professor, IBS HYDERABAD) ( BRANCH MANAGER )

DATE OF SUBMISSION: May 12th,2023

2
 AUTHORIZATION

This is to certify that the report on “Study of distribution channel

strategy and market penetration of newly launched milk product
AMUL MOTI at Amul Bhubaneswar and Puri” is an original work
carried out by Asish Behera for the completion of study at Gujarat
Cooperative Milk Marketing Federation (GCMMF) under the
guidance of Mr. Subhasish Rout, Branch Manager. The report is
submitted in partial fulfilment of the requirement of the MBA program
(2022-2024) of IBS Hyderabad.

Faculty guide Company guide

Dr. Surjit Kumar kar Mr. Subhasish Rout

(Professor, IBS HYDERABAD) ( BRANCH MANAGER )

3
 ACKNOWLEDGMENT

I deeply express my gratitude to Gujarat Cooperative Milk Marketing

Federation (GCMMF) for providing me with this opportunity to enhance my
skills and have a first hand look at the market.
My heartfelt thanks to Mr. Subhasish Rout, Branch Manager, Bhubaneswar
for his fervent inspiration and valuable recommendations. He has always helped
me to think beyond the usual. Without his constant guidance and support it
would not have been possible to conduct my work.
I am thankful to Mr BiswaPrakash Satpathy, TSI Amul Bhubaneswar and
Mr. Gourahari Gouda, TSI Amul Puri. Without their briefings, bit by bit
explanations on things and providing necessary resources, it would not have
been possible for me to complete the project.
I am also thankful to my faculty mentor, Dr. Surjit Kumar kar (Professor,
IBS Hyderabad) for his continuous support, mentoring and feedback.
Beneath their guidance, I could complete the project being undertaken
successfully in time. Their careful efforts and precious suggestions have assisted
me in streamlining the difficulty involved during the internship.

Asish Behera
22BSPHH01C0232

4
 TABLE OF CONTENTS
PARTICULARS PAGE NO
Authorization I
Acknowledgment II
Abstract III
1. Introduction 7
1.1 Company Background 7
1.2 Last year performance 9
1.3 Milk Industry in India 9
1.4 Amul Model 11
2. Industry Analysis of FMCG 13
3. Swot Analysis 17
4. Industry Analysis 18
5. CSR Amul way 19
6. Literature Review 20
6.1 Market penetration 20
6.2 Consumer buying behavior 21
6.3 BCG and Ansoff Matrix 22
6.4 Diversification Strategy 24
7. About Topic of Study 25
7.1 Brief about Amul Moti 26
8. Market study and analysis 27
8.1 Objective 27
8.2 Research Methodology 27
8.3 Promotional Activities 28
8.4 Comprehensive Analysis Of Amul Moti 31
8.5 Product differentiation 33
8.6 Brand visibility Of Amul Moti 34
8.7 Price and Margin 35
8.8 Retailers Grievances 35
9. Understanding Distribution strategies 35
10. Supply chain management from distributors place 36
11. Market Research and Analysis of Amul Moti 39
12. Suggested marketing strategy for Amul (Marketing mix) 41
13. Market Expansion 42
14. Distributor Analysis of Potential Moti market 45
15. Survey 49
16. Findings 54
17. Conclusion 55
18. Recommendations 56
19. References 57

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 ABSTRACT
I got the opportunity for summer internship programme in AMUL INDIA Limited Company.
My objectives of the study in the company are:
 Finding out ways for market penetration for AMUL MOTI milk.
 Brand visibility by visual merchandising and outdoor advertising.
 Understanding distribution channel strategies of Amul Moti (Amul packaged
Milk) in Bhubaneswar and Puri.
 Analyzing strategies used in distribution channel.
 Briefly understanding its operations of Amul Diary products.
 Increasing sales of existing and new products with different merchandising strategies at
Amul outlets.
 To meet my objectives until now, I have been working on studying distribution
channel and supply chain management through field visits in under different
distributors at Bhubaneswar and Puri.
1. Kaluram and Sons 2. Arun Agency 3. Bathual Traders
4. SR Enterprise 5. Sibasish Traders 6. Radha Enterprise
7. Swastyan Traders

Further I have collected data about the orders taken by distributor and served to retailers which
includes amount and different product variants. I have also been working on increasing the
market share of Amul Moti (90 days shelf life packaged milk product in Bhubaneswar and
Puri while studying the consumer and retailer behavior and purchasing pattern in urban and
rural areas. I will further continue with my findings and work on service quality parameters
provided by the distributor and how it affects the distribution channel and supply chain of
Amul.

The Major findings and observation until now are: The whole supply chain is distributor driven
where distributor takes the order and supplies it to retailer, as a new segment witnesses demand
slowly placing product at different outlets, it becomes a challenge for distributor to place
everywhere. But we are able to place in many retailer’s shop, supermarket, tea vendors, juice
stalls and received positive feedback.

There is a huge difference in buying patterns in urban and rural areas were income plays a huge
factor. Another important factor is customer awareness about product AMUL has succeeded
and entered mindsets of people “Amul Moti, asli Doodh” 45 to 90 days shelf life packaged
milk more advertising required in form of ads, posters, bill boards etc. A competitive study
against competitors was done on several parameters like service satisfaction, distributor
margin, scheme provider and customer survey was conducted to know about their preference
and also conducted for umbrella promotion for promoting Expanding new channels, engaging
new audience, focus on brand growth and increase sales of existing products and Finally using
Amul Track app for adding those outlets to app so that it would be helpful for salesman.

As of 11th May,2023 Total Amul Moti sold in Market = 5776 Pieces

6
 INTRODUCTION
COMPANY’S BACKGROUND
Anand Milk Union Limited or Amul is an Indian dairy company, based at Anand in the state of
Gujarat. Formed in 1948, it is a cooperative brand managed by a cooperative body, the Gujarat
Cooperative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.6
million milk producers in Gujarat. Amul spurred India's White Revolution, which made the
country the world's largest producer of milk and milk products. The white revolution was
spearheaded by Tribhuvandas Patel under the guidance of Sardar Patel. As a result, Kaira
District Milk Union Limited was born in 1946. This union selected the brand name AMUL in
1955. The brand name Amul means “AMULYA”. This word is derived from the Sanskrit word
“Amulya” which means “Priceless”. Tribhuvandas became the founding chairman of the
organization and led it until his death. He hired Dr. Verghese Kurien three years after the white
revolution. He convinced Dr. Kurien to stay and help with the mission.
Dr. Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited
with the success of Amul's marketing. Amul has become the largest food brand in India and
has ventured into markets overseas. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray,
Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Amul Milk and Amulya
have made Amul a leading food brand in India. Amul is India's largest exporter of dairy
products with a 'Trading House' status.
It caters to countries like the USA, Gulf countries, Singapore, Japan, China, and Australia.
Today, Amul is a symbol for many things like the high-quality products sold at reasonable
prices, the genesis of a vast co-operative network, the triumph of indigenous technology, the
marketing savvy of a farmers' organization and have a proven model for dairy development
(Generally known as “Anand Pattern”).
GCMMF, Gujarat Co-operative Milk Marketing Federation Ltd is the marketing arm of the
Amul network and manages the physical delivery and distribution of milk and dairy products
from all the Unions to customers. GCMMF is also responsible for all decisions related to
market development and customer management. It is the apex organization of the Dairy
Cooperatives of Gujarat, popularly known as “AMUL”, which aims to provide remunerative
returns to the farmers and also serve the interest of consumers by providing quality products
which are good value for money. Its success has not only been emulated in India but serves as
a model for the rest of the World. It is an exclusive marketing organization for Amul and Sagar
branded products.
VISION
Amul’s vision is to provide more and more satisfaction to the farmers, employees, and
distributors.
MISSION
To satisfy the taste and nutritional requirements of the customers of the world, through
excellence in marketing by our committed team and to offering quality products that provide
the best value for money.

7
AMUL plans to give gainful re-visitations of the ranchers and furthermore serve the premium of
customers by giving quality items which are great incentive for cash. Its prosperity has not exclusively
been imitated in India however fills in as a model for rest of the World. It is restrictive advertising
association of Amul and Sagar marked items. It works through 56 Sales workplaces and has a seller
organization of 10000 vendors and 10 lakh retailers, one of the biggest such organizations in India. Its
item range contains milk, milk powder, wellbeing refreshments, ghee, spread, cheddar, Pizza cheddar,
Ice cream, Paneer, chocolates, and conventional Indian desserts, and so on. 7 GCMMF is India's biggest
exporter of Dairy Products. Numerous items are accessible in USA, Gulf Countries, Singapore, The
Philippines, Japan, China, and Australia. GCMMF has gotten the APEDA Award from Government of
India for Excellence in Dairy Product.
GCMMF-An Overview Our Member Unions
1. Kaira District Cooperative Milk Producers' Union Ltd., Anand
2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana
3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar
4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur
5. Surat District Cooperative Milk Producers' Union Ltd., Surat
6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara
7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra
8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad
9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch
10. Ahmedabad District Cooperative Milk Producers' Union Ltd.,Ahmedabad
11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot
12. Gandhinagar District Cooperative Milk Producers'Union Ltd., Gandhinagar
13. Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranagar
14. Amreli District Cooperative Milk Producers Union Ltd., Amreli
15. Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar
16. Kutch District Cooperative Milk Producers' Union Ltd., Anjar
17. Junagadh District Cooperative Milk Producers' Union Limited, Junagadh
18. Porbandar District Cooperative Milk Producers’ Union Ltd, Porbandar

8
LAST 10 YEAR PERFORMANCE

MILK INDUSTRY IN INDIA

The evolution of the dairy sector in India and the stellar role played by dairy cooperatives since
the launch of Operation Flood form an integral part of the country’s remarkable growth story
after Independence. Today, India is the largest producer of milk in the world,
contributing 23% of global milk production.
During the 1950s and 1960s, the situation was radically different. India was a milk-deficit
nation dependent on imports, and the annual production growth was negative for several years.
The annual compound growth rate in milk production during the first decade after
independence was 1.64%, which declined to 1.15% during the 1960s. In 1950-51, per capita
consumption of milk in the country was only 124 grams per day. By 1970, this figure had
dropped to 107 grams per day, one of the lowest in the world and well below the minimum
recommended nutritional standards. India’s dairy industry was struggling to survive. The
country produced less than 21 million tonnes of milk per annum despite having the largest
cattle population in the world.

Operation Flood helped quality milk reach consumers across 700 towns and cities through a
National Milk Grid. The programme also helped remove the need for middlemen, thereby
reducing seasonal price variations. The cooperative structure made the whole exercise of
production and distribution of milk and milk products economically viable for farmers to
undertake on their own. It also ended India's dependence on imported milk solids.

9
After Operation Flood, the Indian dairy and animal husbandry sector emerged as a primary
source of income for a huge number of rural households – most of them either landless, small
or marginal farmers. Today, India holds the place of pride of having been the largest milk-
producing country in the world for nearly two-and-a-half decades.

The dairy sector assumes a great deal of significance for India on various accounts. As an
industry, it employs more than 80 million rural households, with the majority being small and
marginal farmers as well as the landless. The cooperative societies have not only made the
farmers self-sufficient but have also broken the shackles of gender, caste, religion, and
community. Women producers form the major workforce of the dairy sector in the
country. The sector is an important job provider, especially for women, and plays a leading
role in women’s empowerment.

10
AMUL MODEL
The Amul Model of Dairy development is a three-tiered structure. It consists of Dairy co-
operative societies at the village level federated under a milk union which functions at the
district level and a federation of member union at the state level. This model has helped India
emerge as the largest milk producer in the world. More than 15 million milk producers pour
their milk in 144,500 dairy co-operative societies across the country. Their milk is processed
across 184 District Co-operatives Unions and marketed by 22 State Marketing Federations,
ensuring a better life for millions.
Under Operation Flood the entire institutional infrastructure set up at the village level, the
district level and the state level are owned and operated by the farmers themselves. The
Anand Model co-operatives have progressively eliminated middlemen, bringing the
producers in direct contact with consumers. The Anand Pattern succeeded because it gave a
fair price to the farmer and high - quality milk and milk products to the consumer. What
would have been middlemen’s profits in the earlier system got absorbed into development
projects for primary producer or lower cost for the consumer. In short, the Anand Pattern
meant the utilization of resources in the most profitable manner at grass-root level.

11
The Three Tier Structure is briefly discussed as follows: -
The First Tier - Primary village Co-operative Society: An Anand Pattern village dairy
cooperative society (DCS) is formed by milk producers. Any producer can become a DCS
member by buying a share and committing to sell milk only to the society. Each DCS has a
milk collection centre where members take milk every day. Each member's milk is tested for
quality with payments based on the percentage of fat and SNF. At the end of each year, a
portion of the DCS profits is used to pay each member a patronage bonus based on the
quantity of milk poured. This also acts as a vital link for various productivity enhancement
and development programs of farmers programs.
The Second Tier - District Union: District Union: A District Cooperative Milk Producers'
Union is owned by dairy cooperative societies. It is a Union of primary village co-operative
societies within a district. The Union buys all the societies' milk, then processes and markets
fluid milk and products. Union also provides a range of inputs and services to village
cooperative societies and their members: feed, veterinary care, artificial insemination to
sustain the growth of milk production and the cooperatives' business. Union staff train and
provide consulting services to support village co-operative society leaders and staff.
The Third Tier - The State Federation: The cooperative milk producers' unions in a state
form a State Federation which is an apex marketing body responsible for marketing of milk
and milk products of member unions. The Federation also plays a role in the overall
development of the district unions federated to it.
12
INDUSTRY ANALYSIS of FMCG
FMCG Fast Moving Consumer Goods (FMCG) is the fourth-biggest area in the Indian
economy. There are three fundamental portions in the area food and drinks, which represents
19% of the area; healthcare, which represents 31% of the offer; and family and individual
consideration, which represents the excess half of the offer. The metropolitan fragment adds
to around 55% of the income share, while the provincial portion represents 45%. Rise in rural
consumption will drive the FMCG market.

As indicated by Nielsen, the Indian FMCG industry developed 9.4% in the January-March
quarter of 2022, upheld by utilization drove development and worth extension from higher
item costs, especially for staples. The FMCG area's income development will twofold from 5-
6% in FY22 to 10-12% in FY23, as indicated by CRISIL Ratings. Cost increments across
item classifications will counterbalance the effect of rising unrefined substance costs,
alongside volume development and resurgence popular for optional things, are driving
development. The Indian FMCG industry developed by 36.9% in the second quarter of 2022,
notwithstanding cross-country lockdowns.

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INCREASING ONLINE USERS BOOST ONLINE FMCG SALES
• India's rising web infiltration and rising computerized development alongside creating
framework has helped support on the web exchanges.
• The web based FMCG market is assessed to arrive at US$ 45 billion in 2020 from US$ 20
billion out of 2017, upheld by development in internet-based clients from 90 million out of
2017 to 200 million in 2020E.
• Around 72% Indian customers are probably going to shop online locally for premium items.
• The Indian web-based basic food item market is assessed to surpass deals of about Rs.
22,500 crore (US$ 3.19 billion) in 2020, a huge leap of 76% over the earlier year.
• Numerous FMCG brands band together with web-based business stages, for example,
Dunzo, Flipkart, Grofers and BigBasket to convey items at the doorstep of purchasers during
the COVID-19 pandemic.
• As of June 2021, online business share has previously contacted 7-8% for probably the
biggest FMCG organizations in the nation, as per Accenture India.
• The gross product esteem (GMV) of the internet based staple fragment in India is supposed
to increment multiple times throughout the following five years to arrive at US$ 37 billion by
FY25.

14
Amul ranges of Milk
Let’s have a look at their offerings of Amul Milk ranges:

1. Full Cream Milk: It is usually processed for children, bodybuilders or teenagers. One
glass of such milk contains 3.5% of fat, providing 150 calories. It is extremely creamier and
great to taste. However, it can be further divided into two.

2. Single Toned Milk: This type of milk helps in lessening body’s absorption of cholesterol.
It contains same nutrition as the whole milk sans the fat-soluble vitamins. Having a glass of
single toned milk will supply your body 120 calories.

3. Double Toned Milk: It is perfect for individuals trying to manage their weight. It has just
1.5% of fat. It is full of Vitamin A and Calcium.

4. Skimmed Milk: The fat is content is 0.3% to 0.1%. Skimmed milk is enriched with
vitamin B12 and riboflavin and phosphorous apart from other minerals that you will find in a
glass of whole milk. In fact, it contains more calcium and has lower levels of fat-soluble
vitamins. It is obtained by separating excess fat from the milk

5. Flavoured Milk: It is made out of milk, sugar, artificial flavours and colourings.
Pasteurized under high temperature, it has longer shelf life than plain milk. As for nutritional
content, it is full of calcium, phosphorous, vitamins A, B12, and D, potassium, and protein.
However, regular intake may cause obesity.

6. Tetra Pack Milk: Amul does have tetra pack milk including, Amul Tazza, Amul Moti that
is boiled to 150 C and packed in an airtight container. This is done to ensure that it is stored
for longer time.

15
AMUL MILK PRODUCT NET QUANTITY PRICE

Amul Tazza 500 ml Rs 27

Amul Moti 450 ml Rs 32

Amul Slim n Trim 500 ml Rs 22.50

Amul gold 500 ml Rs 33

Amul Cow Milk 500 ml Rs 28

Amul A2 buffalo milk 450 ml Rs 35

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 SWOT ANALYSIS OF AMUL
STRENGHTS:
–Strong Brand Image: Amul has a strong brand image and brand recall and these factors
have helped the brand maintain constant pressure on its competitors. Amul also invests
heavily on advertising and marketing its dairy products like Butter, Milk etc that helps in
maintaining the brand image and creating brand awareness.
–Loyal Customer Base: Amul has a huge loyal customer base, customers trust the brand for
providing high-quality products at reasonable prices.
-Strong Supply chain and Distribution Network: Over all these years of its existence,
Amul has managed to build a robust network of Supply
–Strong Product Portfolio: Amul offers a range of products to its customers. Amul offers
different products in different product categories. This wide range of products is one of the
biggest strenght of Amul.

WEAKNESS:
It stops an organization from performing at its optimum level. They are areas where the
business needs to improve to remain competitive. SWOT analysis of Amul covers different
weaknesses which the brand has and they need to work on.
–Increasing cost of operations: With too many international brands in competition with
Amul, it now finds it difficult to control the cost of operations. And thus is facing huge
competition in International markets.
–Low awareness of product categories like Chocolates, Ice creams etc – Amul is very
well known for its butter, cheese products, and milk, but the degree of awareness for its other
products like chocolates, Amul milk powder, Amul mithai is still very low among
consumers.Amul needs to increase the marketing and advertising efforts to promote these
products.

THREATS:
It refer to factors that have the potential to harm an organization in the future. Given the
fact, threats give a brand a far-sighted view about the problems that the brand is likely to face
in the future, it is one of the most important factors in the SWOT Analysis of Amul.
— Increased global and local competition: It’s not only big brands like HUL, Nestle, P&G
that give stiff competition to Amul, small and local players like Mother Dairy,
Govardhan, Nandini etc are also eating away the market share of Amul.

OPPORTUNITIES:
It refer to the factors which the organization can use to its favor to grow its market share,
sales, brand recognition etc. It’s the second most important factor in SWOT Analysis of Amul
as it will shape the future of the company’s strategy.
–Potential to expand to small towns and other geographies: The opportunity to grow th
ebrand in small towns and other geographies is immense. Amul would need to work on its
supply chain and distribution network to fulfill this task and make the product available even
to every corner of the country.

17
— Marketing and Advertising: Amul would also need to invest heavily in marketing and
advertising to increase brand awareness and brand recall of their products. In order to target
local players, Amul would need to explore local channels and language for promotion.
—Product Line Extension: Amul needs to invest in the R&D activity and launch products
which cater to consumers which are health conscious. Product line extension is one aspect
that the brand would need to work on in the future for the top line growth.
–Partnerships: Amul can look into increasing the market share by partnering with leading /
local restaurant chains for their daily dairy needs.

INDUSTRY ANALYSIS (Porter’s Five Forces)

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Corporate Social Responsibility (CSR)- The Amul Way
Tree Plantation Programme – For many years now, AMUL has been celebrating the
country’s Independence Day in a novel way by planting lakhs of saplings across Gujrat. It has
implemented its intent to work for the environment by planting trees, making India green
while contributing against Global Warming. The milk makers of Gujrat Dairy lead mass
’Tree Ranch Drives’ each year this day for thirteen years now. AMUL has planted around
733 lakhs trees on this journey. It is astonishing that the milk makers who went out of their to
start such a program for the greater good of the society.
Tribhuvandas Foundation – To give essential medical services to people in the villages,
AMUL has set up The Tribhuvandas Foundation. It satisfies the essential medical care needs
of the villages. Apart from giving essential treatment to different regular afflictions, the
Foundation is also effectively engaged in advancing preventive wellbeing rehearses. It is
unique in its approach as it is a need-based program for villagers and is controlled by the
villagers themselves. It has spearheaded in huge scope execution of the idea of ‘Safe Delivery
Kit’ in India guaranteeing a clean and safe delivery of a pregnant mother.
Rural Sanitation Campaign – Amul Dairy has dispatched a novel plan for absolute rural
disinfection with the objective to make villages open-defecation free. The Dairy with the help
of District Rural Development Agency (DRDA) will give intrigue free credits to its milk
makers in Anand and Kheda districts to set up ‘pucca’ toilet blocks This will provide the
women in the village the needed dignity of enclosed defecation spaces and ensure cleanliness
alongside. AMUL aims to reach a ‘100%’ mark on offices with toilets in areas of its presence
in a ‘five years’ period. The mission is not just about bringing a social change but
empowering clean practices in the villages they operate.

19
Amul’s vision is to see an informed, gifted, and solid youth in India who can subsequently
contribute towards building of the nation. With this idea, AMUL set up “AMUL
SCHLOAR’ for youngsters in 1992. Alongside this, Amul in association with the Red Cross
(India), initiated Blood donation campaigns since 1987. These camps are regularly
conducted in rustic zones through Village Dairy Co-operative Societies.
Amul in its continued endeavour to improve the socio-economic conditions of rural people
extended its expertise in implementation of the Swarnjayanti Gram Swarozgar Yojana
(SGSY) of The Government of India (Ministry of Rural Development) on their Special
Project on “Improving Socio-economic Conditions of BPL Families of Kheda District
through Animal Husbandry and Dairying” – DAIRYING AS A TOOL FOR POVERTY
ALLEVIATION.

LITERATURE REVIEW
Market penetration:
Entering the Market In consumer goods markets, the manufacturer plans its actions against
both competitors (horizontal strategic interactions) and retailers (vertical strategic
interactions). With the growing power of retailers in recent years, vertical channel
collaboration has gained momentum and has become the subject of much research.
Traders can influence a manufacturer's profits in two ways: directly by negotiating power to
negotiate lower wholesale prices and higher trade benefits and indirectly by affecting the
competitiveness of prices among manufacturers. These studies and their results are reflected
in the Bhubaneswar and Puri Market. There is a fierce store competition between the best
players in the market in this category. Thus marketers exploit the high power of negotiation
and the need for programs from companies to maximize their profits. Therefore, companies
must provide schemes to retailers in order to enter the market.
Empirical generalizations suggest that distribution affects market share and vice versa
because no buyer can buy a product unless it is available. on brands available in the case of a
purchase due to "safe selection". In other words, the higher the product availability, the more
likely the customer is to purchase the product. As this study demonstrates that adequate
distribution plays an important role in increasing and stabilizing market share.
As one of the key dimensions of product equity, it is a requirement for product market
success. It represents a key factor in the product's inclusion in the process of consideration
of the purchase decision, as most consumers prefer to buy varieties, which they already
know (the types they are familiar with or, at least, have heard of the brand name.).

Random purchases occur due to contact with store intentions. Shop incentives remind the
customer of its purchase needs thus leading to unexpected purchases Increasing random
purchases of products primarily retailers use store incentives as marketing strategies. In-
store displays, shopping malls, shelves and store shows marketing strategies.

20
Consumer Buying Behaviour

Consumer behavior, preferences and attitudes toward the use of milk products vary widely
from country to country. Therefore, when purchasing a consumer, the market region is an
important consideration. Consumers seem to have very sensible considerations when
making their food choices. These considerations include the emotional aspects of food
(e.g.,taste and quality). Customers choose products with a name based solely on quality,
availability, price, variety, image and advertising. Consumers use the attributes as a basis
forevaluating a product and the promises of benefits that consumers seek when purchasing
a product.
Consumers also use adjectives to create comparisons between competing products. The
importance of reading attributes extends beyond the physical features of a product as
consumers link attributes to the benefits of buying and using products. These benefits, or
outcomes, also lead to certain final conditions or prices that consumers wish to achieve. It
is important to note that the consumer's opinion of the product qualities is very important to
the advertiser. people respond on the basis of their own ideas about the truth, not the fact
that the ideas are worth studying, even if they are erroneous assumptions about real events.
From the above research it is clear that in the packaged food market versus the local milk,
factors such as taste, price, packaging, quality, availability and diversity play an important
role in shaping consumer perception of a product. We need to examine these qualities in
the Ice cream market for their effectiveness in influencing a buyer's purchase decision.

21
BCG MATRIX

 Amul's certain products stars whereas others are cash cows.

 Amul's chocolates are question marks as they have very low share in growing market,
Cadbury is the market leader.

 Amul's Butter and Ice creams are cash cows as they have a huge market share which is
still growing with the market growth.

 Amul's Milk, buttermilk, cheese, Amul kool have alot of direct and indirect competitors
in their niche market, but syill Amul has high market share for niche as well so ,it is right
to say that all these products fall under Star for Amul.

Ansoff matrix
It helps the firm to identify the firms’ growth using the intensification and diversification
strategy, which aims at achieving growth through certain modifications in the firm’s existing
business. According to Ansoff model four different strategies are possible. They are –

22
Market Penetration Strategy
This strategy involves achieving growth through existing products in existing market. Amul’s
market penetration strategy involves its expanding its customer base in the existing market.
Currently Amul is trying to expand its customer base through the following measures –
• Amul is set to build up 10,000 `Amul Parlours' across the country during the year. These
stores will sell the entire product range of Amul products, in addition to the existing retail
network for ice cream, milk and other products.
• It is trying to get more and more customers through a more intensive distribution. It is
opening more stores at Highways, Railway stations, Airports, Bus stations, Schools, Colleges,
and Industrial Canteens etc.
Market Development Strategy
This strategy is concerned with creating business through developing new markets with
existing products in hand. Amul is using this strategy to capture new and unexplored sectors
without creating new products. What Amul is doing in this sense is as follows –
• Amul is now shifting its focus from urban to rural markets and smaller towns. In 2005 Amul
added 900 new stores all across small towns to increase its reach.
• Amul is capturing the market of diabetic and health conscious people through sugar free
ice-cream, which is a variation of an existing product.
• Amul is also increasing its market base for milk through a new version – the Amul Tazaa.
Tazaa, Moti and Gold is the long-life version of milk which has a longer shelf life as
compared to normal fresh milk. This product is highly picking up in the domestic and export
market.
Product Development Strategy
Product development deals with producing new products for the existing customer base.
Amul has vastly capitalized on this strategy by constantly coming up with newer products.
Let’s have a look at some of them –
• Amul-Cool (milk based cool drink) and Amul-Kool café – these are the products aimed at
the youth of the country with synonymous marketing campaigns.
• It is coming up with a chain of pizza corners. This chain would consist of around 2000
stores all over India.
• Stamina – the instant energy whey based sport drink has been launched to provide its
customers with a totally new product.
• Amul has recently launched a new variation of ice-cream, the sundae swirl to its existing
base of ice-cream customers.
• Amul-Masti, the packaged buttermilk is aimed to be another non-carbonated cool drink in
the Amul Cool range which is not only aimed at the youth but also at the more mature chunk
of the society.

23
Diversification Strategy
Diversification is a very important part for any business organization. For the further growth
opportunities of a company diversification is required. When a new product is launched into
the new market diversification holds good and provides more growth opportunities in the
future. Diversification is a high-risk strategy as it involves taking a step into a territory where
the parameters are unknown to the company. Amul has identified the need to increase its
presence in newer markets and thus have come up with many new such strategies for
increasing its presence in the entire market.
There are different types of diversification process that any company can adopt they are as
follows:
• Concentric Diversification Strategy
• Conglomerate Diversification Strategy
• Horizontal Diversification Strategy

Concentric Diversification Strategy: It is the development of new products by using the

older technology directed for the benefits of newer segments. In this type of diversification
Amul has identified a segment for the health conscious people and is introducing two pro-
biotic ice cream ranges, Amul Sugarfree and Amul Profile and both of these products will be
available in five different flavors this is apart from the various regular ice cream products that
it offers. They have identified the working class women as a new segment and has introduced
frozen easy to cook stuffed parathas, matar paneer and paneer pakoras which makes them
easy to cook quality tasty food in less time.
Conglomerate Diversification Strategy: It is developing new products for the newer
markets. Amul in this concern has come up with an idea of introducing an altogether new
spots drink named "Stamina" which will be the first sports drink by an Indian company and it
will be priced at only Rs 12 for 200ml which will be lower than its competitors whose price
ranges around 60 to 75 Rs. In this they have also introduced the Amul Pizza in order to enter
the pizza market. They have also come up with flavored milk and also flavored lassis to enter
newer markets.
Horizontal Diversification Strategy: It is developing newer products with newer
technologies for the old customers. In this concern Amul to provide something new to its
older and loyal customers have come up with a facility whereby they could order the food
through the internet and this was at a time when internet was heard by very few in India
during 1996.

Thus we can say that Amul has come across a long way in diversification to provide
something new to its customers and in this concern what Amul has to say is that the
diversification has nothing to do with the increasing competition.

24
 ABOUT THE TOPIC OF STUDY

1. Brief about Amul Moti

2.Market study and Analysis

3.Understanding Distribution Strategies

4.Supply Chain Management

5.Market Research and Analysis of Amul Moti.

25
 Amul Moti

Amul Moti is not like other Pasteurised

Milks packed in Polypack. It is
sterilised milk and categorised as ESL
(Extended Shelf Life) milk.
Normal Milk in polypack is heated to
75 degree C and held at this
temperature for 16 seconds
(Pasteurised) before chilling
immediately. Then it is packed in a
three layer LLDPE film. Process of
pasteurisation destroys all pathogens
but does not kill all bacteria. Bacteria
which survive pasteurisation remain
inactive due to low temperature but
start growing when temperature rises.
This activity of bacteria converts
lactose present in the milk to lactic acid
due to which milk is spoiled.

In case of Amul Moti milk is heated

to 138-140 degree C thereby
destroying each and every bacterium.
This milk is then chilled immediately
before packing in 5 layer sterilised
film having better global migration
properties. Because there is no
bacterium left in the milk and pouch is
properly sealed to control air entering
into it, this remains good for a long
time. But once opened, this milk
behaves almost like normal milk.

Still longer shelf life (1 year) can be achieved by packing sterilised milk in tetra pack or
by packing milk in bottles followed by sterilisation at 120 degree C for 20 minutes.

26
 MARKET STUDY AND ANALYSIS
Objective :
During first five weeks of internship period, the task assigned to me promote and to place the
newly launched Amul Moti milk and were assigned to different distributors for placement
and taking orders of Moti milk and more sampling was done n order to attract customers as
well as local vendors. It also helped me to understand the order-supply chain, trading
schemes and retailers’ grievance of Amul Moti . Finally retail audit was made.
Under my observations, the report is focused on the two main factors of company, they are:

 Comprehensive analysis of Amul milk in retail market

 Competitive analysis with other competitors in retail market

I have done the first part of the project based on some parameters which are very effective to
find out the problem of Amul moti milk in retail market and distributor market. Parameters
are

Preference for incentives : Amul does not have its own point and cash or scheme system as
incentives. Amul is providing 10% margin with single pouch and additional 50 paise for new
launch, so original MRP is Rs 32, retailer price is Rs 28.30 . Some of the shopkeepers want
scheme and some want free pouch in every caret. This problem has to be recovered to
maintain a healthy relation with shopkeepers as local players are providing it.

Delivery : A short survey was conducted to understand delivery related problem in retail and
multivendor market. It is very important problem and has to recovered very fast because if
delivery of ordered products are not placed within time then availability of product goes
down which results decrease of, to off take and market share.

The segment of pouch milk which consists of high rate customer demand but low rate of
delivery system, we have observed repeat sells , product is capturing market well. A survey
was conducted to understand that which pouch milk has high demand.

RESEARCH METHODOLOGY
The process was conducted to collect information and data for the purpose of making project
decision called market research. This includes interactions, surveys and other research
techniques and could include both present and historical information. This report was
conducted interactions of shopkeepers based on some parameters in questionnaire form and
retail audit was conducted to understand the preference of retailer.

Mechanics:

The survey was conducted to the outlets of retail market and different shops of wholesale
market. I visited to distributor office then went to different beat in a week and collected the
order request for Moti.

Sample Size: I have visited more than 955 outlets/super market/APO in Bhubaneswar & Puri

27
Total outlets visited : 955 Total productive calls : 432

 At first the primary data are accumulated from the shopkeepers

 Secondary data are used for industry and company overview.

 The data are presented statistically with the help of Microsoft Excel , Comprehensive
analysis of Amul Moti milk in Retail market.
Promotional activities :

1. Visual Merchandising
Visual merchandising involves everything the customer sees in approaching the store and
after entering it. This includes the exterior appearance of the store, the store sign, display
windows, interiors décor, store layout, fixturing, lighting, and the way the merchandise is
presented and displayed within the store. Visual merchandising also includes activities that
appeal to the customer’s senses other than the visual, such as music or fragrance. It includes

Point of sale Visibility

Point of Purchase Visibility

It is further divided into four parts: -

• Understanding the technical specifications, material used and process through Ad. Agencies.

• Understanding the process and visibility of brands in General trade and Modern format
Stores across industries.

• Consumer Behaviour on Visual Merchandising.

• Competitive Analysis of Amul with its Competitors

2. Outdoor Advertising
Outdoor advertising, or out of home advertising, refers to advertising that consumers are
exposed to outside of their homes and offline. from just large billboards, we see adorning the
freeway, outdoor advertising is everywhere and has the ability to reach consumers in a more
impactful way. It includes Bill Boards, Street furniture, Wall Scape, Transit advertising and
wraps, point of display.

It is further divided into two parts: -

• Understanding the technical specifications, material used and process through Ad. Agencies.

• Consumer Behaviour on Outdoor Advertising.

28
29
Amul Moti promotion in public

30
Comprehensive Analysis Of Amul Moti
SL NO OUTLE
. DISTRIBU OF TS WEEK
N WEE TOR PIEC VISITE PRODUCT CUMMULA
O K DATE PLACE NAME ES D IVE CALLS TIVE
28/02/2 KALURAM
023 LEWIS ROAD AND SONS 94 15 14
01/03/2 KALURAM
023 TANKAPANI ROAD AND SONS 81 13 12
WEE 02/03/2 KALURAM
1 K1 023 KESHARI HALL AND SONS 242 15 9
03/03/2 KALURAM
023 NEW FOREST PARK AND SONS 121 11 8
04/03/2 KALURAM
023 UNIT 3 AND SONS 85 17 12 623
06/03/2 BATHUAL
023 DUMDUMA TRADERS 60 16 4
07/03/2 SHAMPUR/GOTHA BATHUAL
023 PATNA TRADERS 133 20 11
WEE 09/03/2 BATHUAL
2 K2 023 COSMOPOLIS TRADERS 128 19 14
10/03/2 BATHUAL
023 PATRAPADA TRADERS 102 13 8
11/03/2 PITHAPALLI/CHAND BATHUAL
023 AKA TRADERS 111 14 11 534
RADHA
13/03/2 MAHODADHI ENTERPRISE
023 MKT(PURI) S 156 15 11
RADHA
14/03/2 ENTERPRISE
023 BEACH MKT (PURI) S 72 17 11
RADHA
WEE 15/03/2 GRAND ROAD ENTERPRISE
3 K3 023 (PURI) S 60 11 7
16/03/2 SWASTYAN
023 PK RIT (PURI) TRADERS 198 13 11
17/03/2 SWASTYAN
023 CITY ROAD (PURI) TRADERS 244 20 16
RADHA
18/03/2 INDIAN BANK ENTERPRISE
023 ROAD (PURI) S 198 16 13 928
20/03/2 KALURAM
023 SATYANAGAR AND SONS 121 16 8
21/03/2 KALURAM
023 LEWIS ROAD AND SONS 94 20 11
WEE 22/03/2 KALURAM
4 K4 023 TANKAPANI AND SONS 81 17 8

31
 23/03/2 CHINTAMANESWA SHIBASISH
023 RI TRADERS 151 20 16
OLD STATION
24/03/2 ROAD/LAXMISAGA SHIBASISH
023 R TRADERS 97 18 12
25/03/2 KALURAM
023 UNIT 3 AND SONS 115 20 6 659
27/03/2 SHIBASISH
023 JAGANATH NAGAR TRADERS 78 22 15
28/03/2 ARUN
023 NUAGAON AGENCY 122 17 17
WEE 29/03/2 ARUN
5 K5 023 POKHARIPUT AGENCY 95 12 10
30/03/2 ARUN
023 BHIMTANGI AGENCY 98 15 12
31/03/2 ARUN
023 NUAGAON AGENCY 17 6 2 410
03/04/2 SR
023 CRP ENTERPRISE 56 32 6
04/04/2 SR
023 UNIT6 ENTERPRISE 124 15 9
WEE 05/04/2 SHAMPUR/GOTHA BATHUAL
6 K6 023 PATNA TRADERS 114 23 6
06/04/2 BATHUAL
023 JANALA TRADERS 126 14 11
07/04/2 BATHUAL
023 DUMDUMA TRADERS 82 16 5 502
10/04/2 KALURAM
023 SATYANAGAR AND SONS 108 19 7
11/04/2 KALURAM
023 LEWIS ROAD AND SONS 346 22 9
WEE 12/04/2 KALURAM
7 K7 023 TANKAPANI AND SONS 71 18 6 970
13/04/2 KALURAM
023 KESHARI HALL AND SONS 120 17 3
14/04/2 KALURAM
023 FOREST PARK AND SONS 284 12 3
15/04/2 KALURAM
023 UNIT 3 AND SONS 41 21 5
WEE 19/04/2 SHAMPUR/GOTHA BATHUAL
8 K8 023 PATNA TRADERS 126 24 8 126
21/04/2 MARKET EXPANSION
023 WORK,ARUN AGENCY XXX
24/04/2 ARUN
023 SAMANTRAPUR AGENCY 30 27 2
25/04/2 ARUN
023 NUAGAON AGENCY 34 30 5
WEE 26/04/2 ARUN
9 K9 023 POKHARIPUT AGENCY 192 2 5 416

32
 27/04/2 ARUN
023 BHIMTANGI AGENCY 42 30 7
28/04/2 ARUN
023 SUNDARPADA AGENCY 64 26 2
29/04/2 ARUN
023 RATHA ROAD AGENCY 54 7 9
01/05/2 SIBASISH
023 LAXMISAGAR TRADERS 148 29 4
02/05/2 CHINTAMANESWA SIBASISH
023 RI TRADERS 34 32 4
WEE 03/05/2 SIBASISH
10 K 10 023 BADAGADA TRADERS 22 37 8 328
04/05/2 MARKET EXPANSION
023 WORK,SIBASISH TRADERS XXX
05/05/2 SIBASISH
023 KESURA TRADERS 124 19 2
06/05/2 ICE CREAM MARKET EXPANSION
023 WORK,SIBASISH TRADERS XXX
08/05/2 SR
023 CRP ENTERPRISE 18 18 2
WEE 09/05/2 SR
11 K 11 023 BRIT COLONY ENTERPRISE 100 19 7 280
10/05/2 UNIT 6/ SR
023 PALLASPALLI ENTERPRISE 162 18 8

Total Moti order produced = 5776 Pieces

TOTAL SHOPS VISITED= 955 outlets

TOTAL PRODUCTIVE CALLS= 432 outlets

Product differentiation
Have you consumed Amul happy treats? if you have not Amul happy treat yet, what would be
the reason behind it just give a thought on it because Amul happy treats are Convenient and
tasty snacks liked by all members easy to make, suitable for a wide range of uses most
commonly packed in children's lunch box, at tea time can be consumed at any time, along
with other snacks less oil than other fried snacks, healthy liked by all family members as well
as guests’ children normally eat.

From selling just milk, butter and cheese 75 years ago, Amul has expanded its portfolio to sell
chocolates, beverages and spreads over the years and post the COVID-19 pandemic, it is
eyeing a full-fledged branded foods play. The paradigm shift in consumer demand towards
branded, yet affordable foods, has given the ready to-eat food industry a renewed push during
the pandemic. Even established food players like Amul are now expanding their portfolio to
capitalizing on the demand. According to Amul, the bigger market to explore is small towns
and rural India.

33
Brand Visibility of Amul
While visiting the shops, I started noting down the different visibility requirements of different
shops. Two types of requirements were identified, first type being placement of stickers,
danglers, posters and similar material of different products of Amul inside and outside the shop.
In the second type comes the glow boards, large sign boards, wallpapers which are costly as
well as require fabricators to note down the measurements by visiting the shops and then
fabricating & placing them in the shops. The posters, danglers, stickers were carried by us (me
and the salesman) to the shops in our subsequent visits and were placed in the shops. We did
visibility enhancement more than 150 shops in that region. The shops identified by me which
required glow boards, sign boards were listed and handed over to the required Amul officials
to take further action. Posters/Bill Boards we used for promotion is

34
Price And Margin

Amul offers 2.5 per cent on a milk pouch, 10 per cent on milk products and 20 per cent
commission on ice cream. On receiving franchisees of Amul Ice Cream Scooping Parlour, a
revenue of 50 per cent is available on recipes based ice cream, shake, pizza, sandwich, hot
chocolate drink. But when it comes to Amul Moti, price of it is Rs32, retailer gets 10% margin
in it plus additional 50 paise as a newly launch product so the price is Rs28.30 .Rs 3.70 margin
is highest ever margin given by Amul as compared to any other companies in Odisha market.

Price of a product is one of the 4 Ps of marketing and is significantly important.. As per my

analysis, the price quantity ratios of Amul is little higher than milky moo, Omfed, Pragati and
same as of Mother dairy were close to each other. As per my analysis, the price quantity ratios
of Amul, Mother Diary , Heritage Were close to each other.

Retailers’ Grievances:
Damage & Replacement: During my visits to the retail and other outlets selling Amul
products, Ice cream, the retailers gave feedback that there is a lack of proper process regarding
replacement of damaged products. Sometimes the Ice cream supplied to them is partially
melted which they keep in their outlets to save it from complete damage and are assured by
delivery team that it will be acknowledged later and damaged settlement issue which leads to
disagree of new product to keep. But retailers say that they have to wait long for replacements
for such cases intime.

The damaged milk pouches are replaced immediately by distributor.

Understanding Distribution Strategies

35
As shown in the figure, the supply chain of Amul consists of farmers who produce milk from
their cattle. The farmers are organized into cooperatives called Village Cooperative Societies
(VCS). These VCSs supply milk to thirteen different dairy cooperatives, called Unions, of
which Amul is one. The milk or milk products made at these unions are supplied to the
Gujarat Cooperative Milk Marketing Federation (GCMMF). The GCMMF is the marketing
entity for the products of all the unions in the state of Gujarat. GCMMF has 42 regional
distribution centers in India, serves over 500,000 retail outlets and exports to more than 15
countries. All these organizations are independent legal entities yet loosely tied together with
a common destiny!

The ultimate goal of the GCMMF is to benefit the farmers through this hierarchical supply
chain that includes different kinds of entities ranging from small suppliers to large
fragmented markets. The success of Amul can be attributed to the quality of products, the
economic pricing and the belief that it has instilled in its customers.
SCM

1 ( 1st Leg of Distribution )

GCMMF AMUL HEAD OFFICE Manufacturing Plants TO Storage Distributors (Manguli, Cuttack)
Warehouse

2.( 2nd Leg of Distribution )

Manguli Ware house to different distributor in Bhubaneswar and Puri.

Distribution Channel of Amul diary Segment, AMUL Bhubaneswar

The above illustration is self-made illustration, based on analysis of field work done by intern Asish
Behera, its full copyrights are reserved to “GCMMF LTD AMUL SAGAR, Bhubaneswar.”

The distribution chain starts from GCMMF (Gujarat Co-operative Milk Marketing Federation Limited)
Amul head office. The head office handles the orders to be served in two different legs i.e., first and
second leg of distribution which is explained in the illustration above. Under first leg of distribution,
head office gets the demanded quantity of products manufactured through plants at Anand, Vidya dairy,
Shugam Dairy, Shumul, Sagar, Banas (palampur) and dispatches it to different regions in Odisha we
have Manguli Warehouse for storage where we receive the dispatches items. The second leg of
distribution deals with supply of products to distributors from Manguli Warehouse storage to
distributor’s storage point

Supply Chain management from Distributor’s Place

I have worked with 7 different distributor in different places in Bhubaneswar and Puri. SCM
remains same everywhere. One example explained

Name of Distribution: Kalu Ram and Sons

Location: Unit 3, Master Canteen, Bhubaneswar, Odisha 751001

Area covered by distributor:

36
BEAT DAY SALESMAN NAME PLACE

BEAT 1 MONDAY D. BISWAL SATYANAGAR

BEAT 2 TUESDAY D. BISWAL LEWIS ROAD

BEAT 3 WEDNESDAY D. BISWAL TANKAPANI ROAD

BEAT 4 THURSDAY D. BISWAL KESHARI HALL

BEAT 5 FRIDAY D. BISWAL FOREST PARK

BEAT 6 SATURDAY D. BISWAL UNIT 3

37
Picture of Amul Application where order was taken by salesman

Total number of retail outlets distributor (KALURAM & SONS) serves: - 120 outlets

Working time of distributor’s office: 10am to 6pm (may vary depending on daily stock
dispatch). Type of ordering cycle: Daily

Assets which distributor possess for transportation: -

1. Three Rickshaws 2. One Mini truck

2. Total number of workers distributor has: - Ten Stock Keeping Unit (SKU) ,Capacity:
1500 CFT (Cubic Feet)

Storage room at Distributor point

38
 MARKET RESEARCH AND ANALYSIS OF MOTI MILK
AMUL is eyeing a full-fledged branded foods play. The paradigm shift in consumer demand
towards branded, yet affordable foods, has given the ready to-eat food industry a renewed push
during the pandemic. Even established food players like Amul are now expanding their
portfolio to capitalizing on the demand. According to Amul, the bigger market to explore is
small towns and rural India. In Bhubaneswar region there are around more players in of liquid
milk exist. Those are Omfed, Pragati, Milky Moo, Mother diary, Amul and many other local
brands. As per findings Omfed is the Market leader and having more market share. Awareness
of Amul dairy milk Tazza and Gold is good among retailers as well as consumers is average
but acceptance is low as it is 1 ltr pack having shelf life of 4 months as compared to Amul moti
90 days. The sale is totally depends on retailers how they pitch to customers about Amul Moti.

Amul Milk Tetra pack (Shelf life) 6 months Vs Amul Moti Pouch Pack 3months :

Competitors of Amul Moti milk:

39
Nutritional Fact of different milk

Pragati Milk,Rs 27 Omfed Milk, Rs 28 Milky Moo Milk, Rs 27

Mother Diary milk, Rs 30 Heritage Milk, Rs 30 Amul Moti Milk, Rs 32

Note : Least Fat content in Amul Moti Milk

Better Margin 10% than other

40
 SUGGESTED MARKETING STRATEGY FOR AMUL (marketing mix)

PRODUCT:

One of the leading dairy products brand, Amul, has a diverse product portfolio and offers a
variety of dairy products. Below is a list of a few popular products that Amul has to offer.

 Amul Butter
 Amul Milk, Amul Tazaa, Amul Slim lite
 Amul Paneer
 Amul Chocolates
 Amul Cheese
 Amul Buttermilk
 Amul Beverages
 Amul Ice cream
 Amul fresh cream
 Amul Dahi
 Amul Ghee
Amul invests a lot of money in research and development and tries to bring up new products for different
customers segments. There are a lot of competitors that offer similar offerings to customers but its the
vast variety of products that Amul has to offer that allows it to have a sustainable competitive advantage
over its competitors.

PRICE :
Amul uses a combination of Competitive and Low-Cost Pricing for its marketing mix. Amul
was started with a vision to provide the best quality dairy products at economical prices. For
products like milk, Ghee, Ice-cream etc, Amul follows low price strategy where they offer these
products at a lower cost than their competitors. For products like Amul spray, Prolite,
condensed milk, the company follows competitive pricing where the price of these products
are kept close to or less than the competition

PLACE :
Place plays an important role in the Marketing Mix of Amul. The company boasts an enormous
distribution channel which spreads across the country. Amul works on the model of economies
of scale where the product is produced in masses and then broken down into a single unit for
each customer. There are two channels that Amul uses for the production of its goods and the
distribution of the end product.

Acquisition Channel: Amul works directly with the villagers and village co-operative
societies to gather milk which is then sent to manufacturing units for producing different
productions
Distribution Channel: Amul has an extensive chain of distributors which help it in
distributing the products across the country. The products are sent to company depots from
where it is sent to whole sellers and then finally to individual retailers.

The Distribution is as follows.

Amul Diary items >> Carrying and forwarding agent >> Distributor >>Distributors will create
awareness among retailer >> Dealer / Retailer / Amul Shoppe >> Customer

41
PROMOTION :
Amul is one of the few companies that has been running the longest and one of the most
successful promotional campaigns with a promotional character – “Amul Girl”, Amul uses
the current scenarios and gives a tongue in cheek viewpoint on those current happenings. The
promotions done by Amul are mainly for its Butter and mainly uses ATL ( OOH ) and
BTL promotion during the launch of their new products. As per Amul, just to maintain the
economies and not to affect the cost of the product, their advertising budget does not exceed
1% of their turnover.

Amul’s digital marketing strategy

42
 Methodology used
a) Field visit of areas Tankapani Road, lewis Road, unit 3, Satya Nagar, Keshari Hall & New
forest park
b) Market survey from customers purchasing Amul Moti milk.
c) Upon verifying market survey and sales data side by side, they both gave out similar results,
hence the company is aware of market demand and supply chain is efficient enough.

Market Expansion

43
Growing a business through market expansion is the process of carrying out changes that allow
companies to increase profits, add jobs, and establish a brand presence. Expanding the
marketing strategy is fundamental to any business development plan market expansion is the
strategy a business uses to increase its revenue by changing its method of engagement within
the marketplace. Retail opportunities
When manufacturers look to expand their market, one of their main aims is to seek out
additional income opportunities. Physical goods require shelf space in stores where
consumers can see and perhaps purchase them. Digital sales are similar, as an online presence
through a reputable retailer can increase market awareness. When a company expands its
retail opportunities, it's referring to the sales aspect of the product or service.
Unless a business has an exclusivity agreement, it's free to retail its product with the
merchants of its choice. To expand their retail possibilities, managers and developers look for
opportunities to affiliate with those already in the marketplace. The expansion occurs when
more stores sell a company's product or service and an increasing number of consumers see it
as a purchasing option.
We went to market added new outlets to list so that salesman can take order from next time
and arranging the DMS for easier convenience and clicking shops photographs and adding to
beat.

44
 Distributor analysis of Potential Moti Market places
KALURAM AND SONS

PLACE INITIAL ORDER RETAIL AUDIT

SATYANAGAR 0 108
LEWIS ROAD 94 346
TANKAPANI ROAD 81 71
KESHARI HALL 242 120
NEW FOREST PARK 121 284
UNIT 3 85 41

MOTI MARET POTENTIAL

 Keshari hall and Forest park have good potential of Moti as compared to others.

 Tankapani considered to be lowest sales

 Highest sales achieved in Lewis road

45
 BATHUAL TRADERS

PLACE INITIAL ORDER RETAIL AUDIT

DUMDUMA 60 82
SHAMPUR/GOTHAPATNA 133 114
COSMOPOLIS 128 156
PATRAPADA 102 56
PITHAPALLI/CHANDAKA 111 124
JANALA 126

MOTI MARET POTENTIAL

 Gothapatna, Cosmopolis and Pithapalli/Chandaka have good potential of Moti as

compared to others.

 Dumduma considered to be lowest sales

 Highest sales achieved in Cosmopolis.

46
 ARUN AGENCY

PLACE INITIAL ORDER RETAIL AUDIT

SAMANTRAPUR 68 30
NUAGAON 122 34
POKHARIPUT 95 192
BHIMTANGI 98 42
SUNDARPADA 56 64
RATHA ROAD 59 54

MOTI MARET POTENTIAL

 Pokhariput and Sundarpada have good potential of Moti as compared to others.

 Samantrapur considered to be lowest sales

 Highest sales achieved in Pokhariput.

47
 DISTRIBUTOR COMPARISON

DISTRIBUTOR MOTI SOLD

KALURAM AND SONS 1593

BATHUAL TRADERS 1192

ARUN AGENCY 914

As we have worked with distributor in different weeks , we have identified the potenial market
as well as the repeat orders. Constant monitoring is done to increase sales and converting tea
outlets and lassi shops and many more.

48
 SURVEY THROUGH GFORM
1. Total respondent till now = 64
2. Preference of competitor milk brand for retailers

49
50
51
52
53
 FINDINGS
Retailers:-
1. Retailers are not interested because they don't have storage facility but if company provides
them such facility, they will be sale Amul milk.
2. Because of low profit margin almost all retailers are not interested Amul milk for selling
but Amul Moti highest ever margin.
3. On questions, why retailers are not interested in selling Amul pouch rather than increasing
the product life , it is found they think chemical involved in it , replacement, and it gets
spoil.
4. Retailers were selling different brands, because they were able to receive less margin with
less purchasing cost from local brand that they could not form well-known brands.
5. All retailers get Amul pouch milk from company selected distributors.
6. When question came to retailers rating towards Amul pouch milk, most of the responded
complaining about high price but they are highly satisfied with product.
7. Retailers also demand for the replacement for damage due to spoilage, leakage that they
have to bear when the Amul pouch milk gets spoil or leakage. Replaced by company.
Bulk Users (Multivendor, Sweet Shops, Tea stall, Juice stall): -
1. In sweet Shop the awareness level of Amul Moti milk is 95% but it is hard to find that max
to max only 3% are consuming Amul Moti milk.
2. The preferences of purchasing Amul Moti milk by bulk by the multivendor(Tea stall, Juice
stall) users are mainly quality, demand, and timely availability but they are accepting the
product as they don’t require to store in freeze.
3. Higher price that is not meeting the competitors rate as bulk user are very price sensitive.

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 CONCLUSION
Amul means different things to different people.

To a milk producer — A life enriching experience to a consumer — Assurance of having

wholesome milk to a mother — A reliable source of nourishment for her child to the country
— Rural development and self-reliance

As we know that Amul is very big organization and market leader in dairy products. It has
maximum market share of Milk, Butter, and Cheese & Ice-Cream which are its maim/core
products. But in case of Bhubaneswar and Puri the Amul pouch milk is not a popular product
as compared to other Amul Products now it is making roots. With the help of research, company
can find out its weak points in Milk product and can increase its market share through rectify
mistakes. People have believed brand loyal Amul's product, and they will accept it also if
effective actions were taken.

The primary survey resulted into following conclusions: -

1. Amul must come up with new promotional activities such that people become aware
about Amul Moti.
2. Quality is the dominating aspect which influences consumer to purchase Amul product,
but prompt availability of other Milk brands and aggressive promotional activities by
others influences the consumer towards them and increase sakes.
3. In comparison to Amul Milk, the other players such as Omfed, Mother Dairy, and
Pragati and some others milk provide a better availability and give competition to the
hilt.
4. People are mostly satisfied with the overall quality of Amul Moti Milk, but for the
existence in the local market Amul must use aggressive selling techniques.

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 RECOMMENDATIONS
1. Give the credit purchase facility to their regular retailers. Providing credit cycle to vendors
will encourage distributors and vendors to pick up stocks, even when they are low on cash and sell
them in huge quantity in market.

2. 450ml milk pouch should make available to retailers for selling, because lower income
family has intention to buy small pouch milk.
3. They need to create a common platform for all the retailers so that their complains should
be solved.
4. As quick as possible try to settle the various claims, damage settlement and problems of
the retailers. Provide good schemes and offer to the retailer. Some scrutiny should be follow
to check the scheme get being communicated properly by distributors or sales.
5. Supply should be regular to all the outlets including those that lie in the pocket roads and
not just in the outlets which lie on the easily accessible routes.
6. It has been found that there & no awareness among the retailers regarding the newly
bunched products of Amul such as A2 buffalo milk and Amul Moti its variants. So, it is
advisable to the company to conduct various awareness programs like distributing of
pamphlets outside the retail shops, free samplings, regular supply and more advertisement
through the media.
7. Company should take care of retailers by solving their problems and should call back or
timely visit should be given to retail outlets by appointing separate company representative

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 REFERENCES

1. https://www.amul.com/m/about-us

2. http://www.amuldairy.com/index.php/about-us/history

3. https://www.investopedia.com/terms/e/eventstudy.asp

4. https://www.investopedia.com/terms/s/scm.asp

5. https://startuptalky.com/amul-marketing-strategies/

6. https://www.peppercontent.io/blog/amul-marketing-strategy/

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