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RESARCH REPORT ON
MARKETING STRATEGIES AMUL ICE-CREAM IN
NOIDA
GREATER NOIDA
1
DECLARATION
I,MUKESH KUMAR hereby declare that the Research report entitled “MARKETING
Date :
2
ACKNOWLEDGEMENT
My first regards are to almighty God, it was my great trust and belief on him which
First of all my whole gratitude towards Mr. RAJIVE GUPTA, Faculty, IIMTCOLLEGE OF
I also express thanks to my friends who help me in the successes fully completion of my
research report.
MUKESH KUMAR
3
TABLE OF CONTENT
EXECUTIVE SUMMARY 7
OBJECTIVE 10
COMPANY PROFILE 11
REVIEW OF OPERATION
MEMBERS
MILK PROCUREMENT
SALES
EXPORT
DISTRIBUTION NETWORK
AUTONOMY
4
Market Share of Major Competitors 27
Object 41
RESEARCH METHODOLOGY 42
SWOT ANALYSIS 54
FINDING 61
5
LIMITATIONS 67
RECOMMENDATIONS 68
CONCLUSION 71
APPENDIX 72
BIBLIOGARPHY 81
6
EXECUTIVE SUMMARY
Ice cream industry is now expected a rapid growth after the removal of licensing
reduction in excise duty rates have led the industry more competitive.
Gujarat co-operative Milk Marketing Federation(GCMMF), better known through its AMUL
brand, has been the latest entrant in the national ice-cream market. It has launched milk
based ice-cream under its flagship brand amul in January 1997. GCMMF has a distinct
edge over existing competitors and expected new entrants on several counts.
Advantage in procurement of milk the key raw material is ice-cream. Milk supply in India
is largely controlled by regional milk co-operatives. GCMMF itself is the leading suppliers
of milk in the western region. Besides procurement from other milk cooperatives it also
easier for GCMMF as compared to other players like kwallity, vadilal etc. Infect, GCMMF
has tie-up with the Karnataka Milk Marketing Federation, which manufactures ice cream
7
GCMMF can procure milk at lower prices as compared to competition .amul has been
launched at substantial price discount to main competitor Kwality and Vadilal.This has
The brand awareness of amul is quite high. The amul brand has a strong equity in milk
products GCMMF has managed to leverage on this brand equity and attained over 20%
GCMMF has also good distribution network. It has a wide retail distribution network,
which market its other milk products such as cheese and butter. Hence distribution reach
the single most impotent factor in creating a critical mass is already available.
During 1998, launching it eight states and two union Territories extended the amul ice
cream brand franchise. Amul ice cream has become the second largest brand in the
country and has garnered major share in its existing markets in a short time span of three
is Asia’s largest and most modern integrated ice-cream manufacturing plant and uses
8
Now amul wants to enter various markets. This study will be great help to the company in
launching amul ice cream in the noida market. The market research has been covered all
the dealers and major ice-cream retailers in the noida market. Information were gathered
regarding market competitiveness, identifications the priorities factors which act as driving
force in sales. At the end of the study some recommendations were given to the company
9
OBJECTIVE OF THE STUDY
4. Elicit feedback from consumer regarding Quality, Texture, Price, Packaging, Shelf
10
COMPANY PROFILE
LOGO
11
GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organization. It is a state level apex body of milk cooperatives in Gujarat which
aims to provide remunerative returns to the farmers and also serve the interest of
consumers by providing quality products which are good value for money.
AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit
"Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning
"priceless", are found in several Indian languages. Amul products have been in use in
millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray,
Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk
and Amulya have made Amul a leading food brand in India. (Turnover: Rs.18.8 billion in
12
The seeds of the Gujarat Co-operative Milk Marketing Federation were sown in
November 1973 with the simple intention of ensuring a fair return to the producers. The
intention was to receive all the milk offered by them. The intention was to help Member
Unions develop adequate production and processing facilities. The intention was to
process all the milk received. The intention was to develop a product-mix that would
promote sustained growth. The intention was to offer consumers quality products at fair
prices, and to do so by achieving economies of scale and costs. The intention was to
create and expand a milk grid to maximize the availability of liquid milk. The intention was
that Milk Co-operatives would play an ever increasing role in the rural economy, providing
gainful employment to large numbers of producers. The intention was to raise producer
awareness that they could manage their own affairs through Co-operatives that they
controlled. The intention was to create a structure, owned by farmers that would, with
The intention was to establish a marketing and distribution system that would reach every
corner of the country. And the intention was that the highest levels of consumer
confidence would be reposed in the brands called Amul and Sagar. Slowly but surely, like
a sapling, this Federation grew in the rich soil of cooperation, its unique strength. Here
leaders, managers and employees worked together, shared a common discipline and
contributed to the decisions that have brought them to where they are. Mutual trust and
13
The marketing of milk and milk products began from April 1, 1974. In August 1976, this
Federation began the supply of liquid milk to the Mother Dairy, Delhi, -- insulated rail
tankers, carrying fresh milk over a distance of 1,000 kms, an important step in
When products with common brand names are manufactured at more than one location,
specifications that conform to the most stringent standards the world over. And GCMMF
This sapling - this Federation -- grew rapidly. Milk collections grew, turnovers soared and
surplus, which is invested in building our future, increased. Amul Cheese Spread and
Amul Shrikhand were introduced in 1983 with all new flavors. Amulya, a dairy whitener,
made its appearance in 1986 and emerged as the leading brand in the segment. Dhara,
launched in August 1988, quickly captured the market as a pure, wholesome edible oil
marketed at a fair price. In 1996, the country got Amul Mithai Mate along with the million
litre-per-day capacity Gandhinagar Mother Dairy, even as Amul Lite, a low-fat, low-
cholesterol spread entered the calorie conscious market. A completely new product, Amul
Ice Cream, also made its debut in 1996. Its success is now part of India's marketing
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folklore. Amul Butter, Amul Ghee, Amul Cheese, Amulspray, Amulya, Amul Milk Powder
and Sagar Skimmed Milk Powder all achieved and sustained brand leader status in their
respective categories. All this while, at the grass roots, Operation Flood III extended and
It was in the 1990s that your Federation reminded the nation of our roots with a new
advertising campaign: "Amul - The Taste of India". The campaign is the common thread
in all our product campaigns, enhancing our brand name and image in India and abroad.
Amul Pizza Cheese (Mozzarella), Amul Cheese Slice, Amul Cheese Powder, Amul Malai
Paneer, Amul Mithaee Gulab Jamun, Amul Buttermilk, Dhara Health, Safal Mango Drink,
Safal Tomato Ketchup, Safal Mixed Fruit Jam all have moved from the drawing board to
the shop shelves and rapidly on to family dining tables, all in the span of one short year!
Today, twenty-five years after GCMMF planted sapling, much that we set out to achieve
Independent India -- have been achieved by a co-operative. This has come as a surprise
to many in our country. But, however in fulfilling its journey GCMMF should not forget one
thing - we work for the farmers and our future is indelibly linked to theirs. The producer
15
Annual Report of GCMMF and Review Of Operations
Members:
12 district cooperative milk producers' Union No. of Producer Members: 1.95 million No.
of Village Societies: 10,183. Cattle feed manufacturing Capacity: 1450 Mts per day
Milk Procurement
This year, GCMMF’s Member Unions increased their milk procurement by 4.5 percent,
achieving an average of 41.42 lac kilograms per day as compared to 39.65 lac kilograms
per day in 1997-98. Peak procurement during 1998-99, touched a high of 51.88 lac
kilograms in a day. Total Milk handling capacity: 6.0 million litres per day Milk collection
(Total - 1997-98): 1.41 billion liters Milk collection (Daily Average 1997-98):3.85 million
16
Sales
During the year, Federation's sales increased by 18 percent from Rs.1,883.58 crore to
ordinate Rs. 24.1 crore in product sales to the Defence services. This year, Amul Butter
registered record sales, with Rupee turnover growing by 15 percent. The sales value of
Amulya has registered impressive growth with an increase of 12 percent. Sale of Amul
Milk in Gujarat has increased by 21 percent in value terms. Amul Cheese sales value
has increased by a spectacular 15 percent over the previous year. Despite a decline in
the milk powder market due to adequate availability of liquid milk in most parts of the
Export
For the 5th consecutive year, GCMMF have received the Government of India's APEDA
award as the nation's largest exporter of dairy products. During the year, Amul Butter,
Ghee, Shrikhand and Gulabjamuns were launched in the USA. GCMMF’s products also
made a debut in New Zealand, Singapore,Thailand and Iraq, during the year, and
received a very encouraging consumer response. Dhara Oil During the year under
review, Dhara sales value has increased by more than 13 percent demonstrating the
17
consumer confidence in a volatile market situation. Dhara remains the undisputed market
leader among all consumer-packed edible oils. This would not have been possible
without our strong consumer franchise and Dhara's brand equity, among all oil brands in
the country.
Distribution Network
Federation's distribution network has been strengthened with the addition of 1,007 more
Wholesale Dealers, during the year. GCMMF's total number of Wholesale Dealers now
stands at 3,700 extending our reach to more than 5 lakh retailers. These statistics,
impressive as they are, do not tell the most important part of the story: the staunch
support, brand loyalty and commitment of our Wholesale Dealers and Retailers, that
makes it possible for our products to reach consumers in the remotest parts of our
country.
understanding and loyalty, orienting our farmer-owners to their role, rights and
responsibilities while promoting the highest level of member participation in their co-
operative. During the past six years, GCMMF Member Unions have taken the member
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education programm to 5,138 village dairy co-operative societies, reaching 4,64,700 men
During 1998-99, as planned, its Member Unions continued to increase the participation of
women milk producers in the dairy co-operative societies. Its Member Unions has
milk producers, during the past three years. The benefits under the Co-operative
Development Programm, during the year, were extended to 1,227 village dairy co-
Management Committee of DCSs participating. GCMMF should not forget that just as the
future of this Federation rests on your unions, your strength depends on each dairy co-
operative society becoming and remaining a vibrant, growing local enterprise, important
During the year, your Member Unions continued their infrastructure investments. They
upgraded and strengthened the dairy co-operative structure by adding new village dairy
co-operative societies: the number of DCSs increased from 10,183 to 10,364 during the
year. Membership grew from 19.51 to 20.83 lacs, an increase of 6.8 percent. The total
19
AUTONOMY:
benefiting the members in their way of life, are all a healthy sign of the functioning of a
faithful to its values and principles. GCMMF strengthen those values and principles by
investing in Education, Training and Information, enriching our members' and the general
unions or the co-operatives that own it. Each of it must continually seek opportunities for
local, national, regional and international co-operation. Last, but not least, is Concern for
Community. For what use is co-operation if there is no common good for the community.
For GCMMF Quality Management means more than the details of product manufacture --
it means keeping the customer at the center of all that it do. Quality Management, for us,
means an unceasing effort to achieve quality leadership in everything that we do. For us,
it is not just the gizmos of calculations within controllable limits of variations; it means
Management symbolizes sincerity and trust as the basis of all our dealings. It means
20
better than your competitors can today and tomorrow. It means empowering your
employees, so that their growth is our growth. It means encouraging people to perform
the most mundane and routine activities with a focus on achieving quality. It is the
shaping of people's ideas and attitudes so that they are always motivated to give their
best.
All its Member Unions have helped producers to organize dairy co-operatives wherever
there is potential. The task before GCMMF now is to transform each of these co-
operatives into a self-reliant, growing business - for in the end, their growth is its growth.
Just as your Federation and Union boards have become the equals of their peers in
direct the growth of the DCS. To achieve professionalism, GCMMF would like to
encourage Union field staff to become consultants, rather than supervisors; facilitators
rather than decision-makers; trainers rather than doers. It is prepared to encourage this
shift in roles by training field staff in institutional development, consulting and facilitation
skills. It envision this field force serving as our own professional consultants for Dairy Co-
The milk producers of our Member Unions have a commitment to achieve Total Quality in
six priority areas - Cleanliness of the Dairy Co-operative Societies, Planning and
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Budgeting of the Dairy Co-operative Society, Artificial Insemination Service, Quality
Testing and Milk Measurement at Dairy Co-operative Societies, Animal Feeding and
GCMMF hope that this intervention will be implemented in all the Dairy Co-operative
Societies of its Member Unions. The Total Quality Movement in the village is the essential
first step to achieving sustained improvements in product quality, reductions in the cost of
Today people speak of Quality as a tool of appreciation. The demand for quality is on the
rise the world over. The customer is silent no more. The day is not far off when quality will
become a core competence. AMUL have cascaded the TQM movement to its Wholesale
Dealers by organizing them into Quality Circles that work in tandem with its sales force.
We have reason to believe that this "quality domino" works wonders. GCMMF expect its
efforts to result in a structure that works relentlessly for the betterment of the entire chain
-- from producer, processor, and marketer to consumer. The quality imperative is nothing
short of a way of life for its farmers. But one brand does not guarantee an industry's
commitment to quality. It is only when the last brand in the industry achieves what
GCMMF has striven for thus far, that we can claim to be truly quality conscious. All its
Member Unions have helped producers to organize dairy co-operatives wherever there is
potential. The task before it now is to transform each of these co-operatives into a self-
reliant, growing business - for in the end, their growth is its growth.. Just as it has built
22
professionalism in the Unions and Federation, so too its societies must become
encourage Union field staff to become consultants, rather than supervisors; facilitators
encourage this shift in roles by training field staff in institutional development, consulting
and facilitation skills. It envision this field force serving as its own professional consultants
for Dairy Co-operative Society management, encouraging them to plan and to undertake
The milk producers of its Member Unions have a commitment to achieve Total Quality in
six priority areas - Cleanliness of the Dairy Co-operative Societies, Planning and
Testing and Milk Measurement at Dairy Co-operative Societies, Animal Feeding and
It is hoped that this intervention will be implemented in all the Dairy Co-operative
Societies of our Member Unions. The Total Quality Movement in the village is the
the cost of production and improvements in the efficiency and effectiveness of milk
procurement.
23
AMUL have cascaded the TQM movement to its Wholesale Dealers by organizing them
into Quality Circles that work in tandem with our sales force. We have reason to believe
that this "quality domino" works wonders. GCMMF expect its efforts to result in a
structure that works relentlessly for the betterment of the entire chain -- from producer,
processor, and marketer to consumer. The quality imperative is nothing short of a way of
life for our farmers. But one brand does not guarantee an industry's commitment to
quality. It is only when the last brand in the industry achieves what it has striven for thus
Product profile:
Composition :
Milk Fat 13.5% to 14.5% .Total Solids 40% to 41% . Sugar 15% Approx Acidity 0.17%
Flavors :
Tutti Frutti, Litchi, Kesar Pista, Kaju Draksh, Butterscotch, Choco chips, Rajbhog and
Cashew Break.
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Packaging :
50 ml cup, 100 ml cup, 500 ml pack,1 litre pack, 4 litre pack, Chocobar, Ice candies,
Special Features:
Various varieties of Ice Cream can be made from the basic mix by addition of required
amount of permissible colors and flavors. Dry fruits and nuts would be used for making
Product Specification:
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MARKET SHARE OF MAJOR COMPETITORS IN NOIDA ICECREAM MARKET
MARKET SHARE
OTHERS
8%
KWALITY
MOTHER
50%
DAIRY
42%
26
OVER VIEW OF ICE-CREAM INDUSTRY IN INDIA
PACKAGING:
Ice-cream is marketed in three types of packaging. The most popular is cups of 100-150
ml sold in the Rs8-15 price range. Bars, sticks and cones represent another ready-to-eat
market and are priced at Rs4-20Family packs in wax coated paper/ plastic tubs are sold
at around Rs60 for the popular flavors like vanilla and strawberry, etc unto Rs100-120 for
DISTRIBUTION:
The ice-cream distribution chain typically consists of a distributor/ stockist and the retailer.
Most players have regional operations with production facilities located near the market
as adequate cold chain facilities for transportation over long distances is not available.
Distribution of national brands is done through owned or leased cold storage facilities
located in the major consumption centers. from which supplies are sent to distributors or
directly to retailers.
27
The retail network for ice cream consists of Exclusive ice cream parlors which may be
company owned or franchise outlets and other retail outlets like provision stores, hotels
and restaurants. Retail margins are high, at around 18-20%. There are an estimated
Ice creams are available in various forms such as cone, cups, bar (candy), party pack
etc.Candy sticks account for about 25-30% of volumes, whereas cups and other novelties
contribute the rest. Frozen desserts market in India is very small and refers to oil fat
(instead of milk fat) based ice creams. Besides, a wider range of frozen desserts are also
made in-house and served in 5 star hotels. The ice cream market in India is currently
estimated to be 160mn litre valued at Rs6.5bn (MRP Rs9bn). The market growth during
the late '80s and in the early '90s was very low at around 2-3% pa. Since the last two
years, the market has been witnessing a much faster growth at around 10-12%pa. The
growth rate could have been even higher but for poor infrastructure, (still) high excise
duty/ sales tax etc. Excise on ice cream was increased from 13% to 16% in the 1999-
2000 budget. Market growth historically was stunted by Government policies. Till 1997,
ice cream manufacture was reserved for small-scale sector. The leading players were
unable to invest adequately to develop an infrastructure of cold chain for storage and
distribution. Erratic supply and shortage of power in most parts of the country have been
the major factors limiting growth of a cold chain. As a result, there was a dearth of good
28
quality products in the market and also lack of adequate infrastructure to distribute the
same. Cadbury had entered the market in 1992 with its Dollops brand, but was
unsuccessful in building up a significant franchise and withdrew two years later. In the
absence of any competition from MNCs, local players were able to build up a strong
franchise in respective local areas. Some of the players built up their market through
exclusive parlors. But in most cases parlor network also could not extend beyond local
limits.At the beginning of first phase of liberalization, Hindustan Lever (HLL) entered the
market through frozen dessert route. Frozen desserts (which use edible oil fat instead of
milk fat) were technically not reserved for small scale. Amul ice cream, manufactured by
intensifying the competition. In 1997, the sector was de-reserved from small scale, based
capacity and market expansion, is expected to lead to rapid demand growth in the sector.
A 10-12% pa volume growth can be sustained for a very long period, say 2-3 decades,
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Segmentation
Ice creams are differentiated mainly by flavors. Vanilla (30% of total sales) is the most
flavors like Kesar-Pista, Kaju-Draksh, etc are also very popular. There are several other
flavors available, such as fresh seasonal fruit flavors, combinations of 2-3 flavors, etc
volumes. Home consumption accounts for about 10% of volumes and institutional/
Ice creams are primarily impulse purchase products and they are not yet accepted as
snack food or part of daily or frequent consumption habit. It remains once in a while
indulgence. Retail displays, fun/ excitement positioning etc play a crucial role in the
purchase decision.
30
For impulse purchase budget, ice cream competes with other impulse products such as
soft drinks, chocolates, confectionery, etc. Therefore higher share of voice of soft drinks,
While most consumers have liking for one or two flavors, they frequently try out new
flavors. Vanilla, strawberry and chocolate together account for 70% of volumes. Ice
cream is an extremely likable product by all age groups. Claimed penetration of ice
creams is high as 96%. Most consumers claiming to have consumed ice cream, however
There is a strong resistance among Indian parents about ice cream consumption by
children, and a misconception that it can cause cold and other illnesses. This is largely
due to the fact that most ice creams are manufactured by local/ unorganized sector which
are of poor quality. Cold/ other illness are caused by bacteria/ germs and not by the cool
temperature of the product. The product is consumed by all age groups. However, 80% of
the consumption is accounted for by people below the 25 age group. In relative terms,
consumption is lower among older people in India. Ice creams are normally consumed in
the evening, after dinner in India. The consumption during daytime is extremely low.
31
Median unit price of ice cream is Rs10-12 currently as against Rs5-6 a few years ago.
down significantly in winter to about 40% of average consumption in the North and 60%
in West and South. Home consumption is restricted due to poor quality of in-house
in proper condition for a long time in a single door refrigeration. Consumption of branded
ice creams manufactured by organized sector is restricted to large metropolitan cities like
Mumbai, Delhi, Ahmedabad, Bangalore etc. The organized players have not been able to
extend their distribution chain to small villages/ towns due to small size of market and non
Presence of unorganized sectors and unbranded products is quite large in rural and semi
urban areas. The unorganized sector mainly sell frozen milk candies (kulfis). Quality of
also, there exists a large unorganized sector but quality of product is better in relative
terms. A large part of catering market in urban areas is catered to by the unorganized
sector.
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MAJOR PLAYERS
The Indian Ice cream market is dominated by a large number of small local
manufacturers and regional players. There are an estimated 150 manufacturers in the
organized segment, which accounts for 40% of sales and about 2000 units in the
unorganized market. In the organized segment, the significant brands are Kwality Walls,
Other Players : Besides the main national brands there are other premium brands which
have carved a niche for themselves in their respective regional markets. These players
have mostly concentrated on the large metro cities. These players sell through their
exclusive parlors. The major national players sell through franchise parlors as well as
through retail stores, groceries, restaurants, hotels, roadside stalls on highways, etc.
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Regional Players Brands
Mumbai has several players such as Nature World, Naturals, Ice-cream Express,
Dinshaw's, etc which are priced at a premium over the Kwality Walls and Amul brands
Arun, promoted by Hatsuns Foods Pvt Ltd, is a dominant brand in the South. Arun sells
its ice creams through exclusive parlors, which are popular in the southern cities. It has
375 outlets in Tamil Nadu, Kerala, Chennai, Karnataka and Andhra Pradesh, with 120 in
Chennai alone
Joy, another marginal national player has a stronger presence in the South. Joy has
around 400 outlets in the Southern region and plans to add another.
34
Together, Joy and Arun have a sizable presence in the Southern markets of Chennai and
Tamil Nadu.
Nirula's is a strong local player in Delhi. Mother Dairy the Delhi version of the Amul brand
35
Market shares
Hindustan Lever has a market share of around 55%, represented mainly by Kwality Walls
brand. It has introduced the Max range of ice creams targeted at children. Vadilal the
second largest player at the national level, with an estimated market share of 10% is
losing market share gradually. Amul has already acquired about 20% market share.
Regionally, HLL is the largest player in North, East and South with market shares of 65%,
60% and 45% respectively. In the Western region, Vadilal is the leader with over 30%
market share. Amul is the second largest player with 30% share while Kwality Walls trails
with 28% share. Arun, a regional player focused on the southern region, has an all India
market share of around 4%. Rest of the market is fragmented among several local
players.
Outlook
Stiff competition is expected between the two leading players HLL and GCMMF. GCMMF
with its advantage in milk procurement and competitive pricing is expected to further
strengthen its position in the market. It has commenced innovative marketing strategies
like free home delivery. New taste variants are expected to be launched in the summer of
'99. HLL has de-bottlenecked Nashik manufacturing facility, taken over direct control of
ice cream manufacturing in the eastern and western regions and increased cold chain
36
distribution by innovative channels like mobile vending. Eight new products were
launched in 1998. With the benefits of strengthened own supply chain management and
scale economies (expanding market will reduce unit cost of distribution/ cold storage and
marketing), HLL will be able to offer better value for money. The company's strategy is to
focus on the impulse segment like Cornetto cones Feast candy, etc where margins are
higher as compared to bulk/take home packs. The other national level player Vadilal is
not financially strong enough to fight the competition and is expected to remain a
marginal brand at an all India level. However it will continue to have a stronghold in the
Gujarat state.
37
Manufacturing process and economics
Prevention of Food Adulteration Act, requires a minimum of 10% fat and 40% of other
solid matters and ice creams. Ice cream manufactured with modern technology contains
about 40% air. The key non-fat solid matters are skimmed milk powder and sugar. Ice
creams normally contain milk fat but there are several varieties (called frozen desserts)
which contain oil fat. Butter cost is about Rs120 per kg, skimmed milk powder Rs60 per
kg (Rs45 in season time) and sugar costs is about Rs15 per kg. Ice cream has to be
stocked at -26°C. Temperature required to store ice cream is significantly lower than that
required for storage of butter and milk. All liquid ingredients such as milk, cream,
concentrated milk, liquid sugar syrup and water are mixed with the dry solids such as
nonfat dry milk, sugar, stabilizer and emulsifier and blended. The blended liquid is then
pasteurized in order to destroy all microorganisms and improve the storage property of
the ice cream. The pasteurized mix is pumped through a homogenizer under pressure to
The mix is immediately cooled to 0-4o.C and then aged to improve the body and texture
of the finished ice cream. Soluble flavoring materials are added to the mix and then the
ice cream is frozen in batch or continuous freezers. During freezing, air is incorporated
into the mix resulting in increased volume. The soft frozen product is drawn from the
freezer at -6o.C and packed at this temperature after which it is stored at a temperature
38
of -29oC till it is marketed. Frozen Desserts have a lower dairy fat content of 4%,
compared to ice creams which the Bureau of Industrial Standards defines as containing
not less than 10% fat. Typical components by weight, of an average-composition ice
cream are, 12% fat, 11% nonfat milk solids, 15% sugar, and 0.3% vegetable gum
stabilizer
39
OBJECTIVE
To find out whether the dealers are ready to keep Amul ice-cream if they are given
Information required about the expectation of the retailers from amul ice cream
40
RESEARCH METHODOLOGY
RESEARCH DESIGN:
The study used a exploratory design to analyze the market size and competitive scenario
and causal Research to assess the impact of change in some sales variables over total
sales volume.
Sources of information
Data collected from mainly two sources these are secondary sources and primary
sources.
Secondary sources:
Here information gathered from internet, books, journals. We have found the information
41
Primary sources:
Data collected with the help of questioners we have conducted retailer and dealer survey.
Sample design:
a) target responded:- all the ice cream dealer and retailers were our target
respondent
c) Sample size:- covered all the ice cream dealers(3 dealers) and 35 retailers.
42
REGRESSION ANALYSIS
The regression analysis is widely used to determine some functional relationships among
variables for the purpose of prediction and making other inferences. Here in this project
1. what is the relationship criterion dependent variable(sales volume) and the set of
predictors(independent variables)
3. How can we predict the values of the criterion variable (sales volume) based on
Yi = b +a1x1+a2x2+……..+akXk
43
Where x is the value of the predictor(independent) variable and and y is the value of the
Y X1 X2 X3 X4 X5 X6
dairy
44
Now from the excel sheet the possible regression analysis output for the above table is:-
Multiple 2=1
R
Standard error= 0
Observation=2
X1 -3.215(a1) 0
X2 3.708(a2) 0
X3 -1262.87(a3) 0
X4 1859.281(a4) 0
X5 255.356(a5) 0
X6 -20.48(a6) 0
Intercept -81.743(b) 0
45
Price margin
140%
120%
100%
Percentage
80%
Series1
60%
40%
20%
0%
Kwallity Mother dairy
Brand name
Kwality 100%
46
RETAILER PRICE MARGIN
21%
20%
PERCENTAGE
20%
19% PRICE
19% MARGIN
18%
18%
17%
KWALLITY MOTHER
DAIRY
BRAND NAME
KWALITY 20%
47
PUSHCART PRICE MARGIN
17.00%
PERCENTAGE
16.80%
16.60%
16.40%
16.20% Series1
16.00%
15.80%
15.60%
KWALLITY MOTHER
DAIRY
BRAND NAME
KWALLITY 16.75%
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NUMBER OF PUSHCHART
60
50
NUMBERS
40
30 Series1
20
10
0
KWALLITY MOTHER
DAIRY
BRAND NAME
KWALLITY 31
MOTHER DAIRY 53
49
Numbers of retailers
70
60
50
Numbers
40
Series1
30
20
10
0
Kwallity Mother dairy
Brand name
BRAND NAME
KWALLITY 45
MOTHER DAIRY 60
50
DEALER PRICE MARGIN
10%
10%
PERCENTAGE
10%
10%
Series1
10%
10%
10%
9%
KWALLIT MOTHER
DAIRY
BRAND NAME
KWALLITY 10%
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ADVERTISEMENT EXPENCES
5.00%
4.00%
PERCENTAGE
3.00%
Series1
2.00%
1.00%
0.00%
KWALLITY MOTHER
DAIRY
BRAND NAME
BRAND NAME
KWALLITY 4.5%
MOTHER DAIRY 2%
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SWOT ANALYSIS OF THE COMPETITIOR
KWALITY-WALLS:
STRENGTHS:
HUL marketed this product with a wide distribution network and innovative
In noida the dealer of kwallity has strong storage capacity than it’s competitor
mother dairy.
Kwallity has a excellent product mix. Every summer it launches new verities of ice
cream.
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It’s advertisement is more aggressive than mother dairy. It uses both electronics
and non electronics media. HUL spend more amount of money in marketing
WEAKNESSES
OPPORTUNITY
It has market share of 50% in Noida market. While in India it market share is 55%.
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THREATS
Main competitor mother dairy has become a major threat of kwality. Because
within three years of it’s launch mother dairy captured 42% of the market share.
After liberalization more players are coming in the market and so the competition
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MOTHER DAIRY
STRENGTHS:
Main strength of Mother Dairy is it’s competitive price. It’s price is much lower than
Mother Dairy has largest milk plant in Asia and the plant has iso-9002 certificate
It has a strong milk procurement net work. It can procure milk at a lower price than
it’s competitor.
WEAKNESS:
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OPPORTUNITIES:
It has already captured 42% of the market share with in three years of it’s launch.
With increase in advertisement in electronic media, it can also boost it’s sales
volume.
THREATS:
After liberalization, new products are coming in the market and market has
It faces major threat from the market leader Kwallity-Walls and also from the local
brands.
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Interpretation of the co-efficient
The value of R2 is called co-efficient of multiple regression model. Here R2 is one which
means that sales variation is associated with the variation of the six predictors. So here
Y=-81.74-3.21X1+3.70X2-1262.87X3+1859.28X4+255.36X5-20.48X6
Y=b+a1X1+a2X2+a3X3+a4X4+a5X5+a6X6
volume and X1, X2, X3,X4, X5, X6 are independent predictors variables. Here X1=number
of retailers and X2= number of pushcart X3= dealer price margin X4=retailer price
Now with changing the X variables we can predict the sales volume.
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Suppose the ideal mix of variables like the following
Now putting the value of the above variables we can get the following equation
Y=-81.74-3.21*50+3.70*55-1262.87*10%+1856.28*18%+255.36*3%-20.48*105%
Similarly we can find another ideal mix which can give us predicted yearly sales.
SE= standard error of the estimate. The smaller the value of the standard error better the
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FINDINGS
Major players: -
In Noida the ice cream market is dominated by the two regional player and some small
local manufactures. These two major players are kwality- walls and mother dairy. Two
years ago vadilal ice cream came in the market but now it is totally wiped out from the
market.
Market share:-
Kwality has a market share of 50% and mother dairy is the second largest player with
42% of the market share. The rest is shared by small local manufactures.
Market segmentation:- here also we can segment the ice cream market in terms of flavor
and size.
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Distribution channel: -
Like the other region in Noida also the distribution channel typically consist of a distributor
/stockist and the retailers. Here another noticeable chain is distributor and the mobile
vendor.
On an avg. price of kwallity ice cream is 25% more then mother dairy. The following list
(The product mix and price list of kwality ice-cream has been given in the appendix)
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Retailer margin: -
Retailers of Kwality ice-cream are given 20% margin while retailers of Mother dairy get
18% margin.
Mobile vendors of kwality are getting 16.75% margin while mother dairy gives 16%
Dealer margin:-
Kwality gives 10% margin to it’s dealer whereas mother dairy gives 9.75% margin
Credit policy:
Dealers are not getting any credit from the company. There is also no formal rule in giving
credit to the retailers but dealers are giving credit to there old customers. Retailers of
Kwality normally getting minimum 7 days to 15 days credit from the dealer. Near about
70% of the retailers are satisfied with the credit they are getting. Dealers of mother dairy
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Replacement policy:
Near 55% of the retailers are satisfied with the replacement facility they are getting from
the dealers. In the genuine case dealer of kwality gives replacement facility to its retailers.
Advertisement expenses:-
Advertisement also plays a crucial role in ice-cream market. Kwality is marketed by HLL,
they spend more amount of money in advertisement than mother dairy. HLL nearly 4.5%
of the total expenditure are spent on the advertisement while 2% spent by the MOTHER
DAIRY
Pushcart plays a dominant role in ice-cream market. Mother dairy has 53 pushcarts while
Contribution on sales: -
Total sales can be categorizes in to three types. These are pushcart sales, retail sales
and other catering and institutional sales. Pushcarts contribute 65% of the total sales of
Mother dairy and near 50% of the total sale of Kwality.Retail sales of mother dairy is 25%
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of its total sale and 40% of the kwality. Remaining sales are come from catering service
LIMITATIONS
In the process of the exhaustive research work in-depth survey, it came to light that there
• The time taken for the project work was only six weeks, which is very less, and so,
• The retailers failed to provide some useful information due to some reasons, which
they termed as personal and did not want to disclose. So, the inferences in such
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CONCLUSION
Any first food business is characterized by two pillars strong brand equity and wide
distribution network. Brand equities are built over a period of time by technological
near the consumer through a wide distribution network. sis another crucial success factor,
as product are small value, frequently purchased. Amul is strong in both of this front .
According to the 30th nov. 1999 issue of A&M GCMMF(amul) is the number one product
of India which offers value for money and HLL in number two position so far as the
rank of HLL is in number one. So to get the success in new product launch Advertisement
should be more superior and innovative supported by a high caliber marketing personnel.
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RECOMMENDATIONS
i. No existing dealers are ready to keep amul ice-cream even if they are given 2%
more margin. Since sales volume is more important to them rather than margin. So
it will not be a effective strategy to net the existing dealers by giving 2% more
margin to them.
ii. Similarly total sales volume is more important to the retailers rather than the
margin they are getting. So getting the existing retailers by offering more margin
iii. Company should find out efficient dealer from the market and it will not be difficult
for the company to find out since Amul is a popular brand in India.
iv. So there is no need to increase the dealer margin. it should be around 10%
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v. Some retailers of kwality ice cream are not satisfied with the facilities provided to
them. Company should target them to net besides that company should
vi. Mobile vendors play a crucial role in ice cream selling. So company should stress
more on push cart selling. Presently they are getting less margin than the retailers
use both electronics and non electronics media to advertise its product. Presently
viii. Save promotional cost through the use family brand name. Company should
market different blends under the brand name Amul. It can lead to substantial
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ix. after sales service. So after launching the product there should be replacement
facility on Good after sales service: At present 60% of the retailers are not satisfied
x. Company should offer value for money to the customers. At present Kwallity ice-
cream is around 15% to 25% more than Amul ice cream. So if amul can maintain
its quality as per as Kwallity ice cream then consumer of the Kwallity can switch
xi. Innovative Packaging also play crucial role to attract the customers. so packaging
xii. Keep touch with market: After launching the product company should always keep
touch with market by its marketing personnels.It can help the company to find out
any defects in distribution net work and also it will motivate the dealers and
retailers
xiii. Post launch survey: After launching the product. It will help the company to know
whether the new product meeting the company’s needs and wants.
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APPENDIX
Noida Noida
Sector-29 Sector-29
Noida Noida
Sector-27 Sector-29
69
Jaydurga Stores Gee Pee Pesti
Sector-21 F-Block
Sector-21
Noida Noida
Sector-25 Sector-25
Noida Noida
Sector-21 Sector-27
70
Variety Gift Stores Wimpy
noida
Sector-37 Sector-27
Noida
Sector-12 Noida
Noida
Phone no-4548171/4548172
P- 38/7 D-136
Sector-12 Sector-10
71
Noida Noida
Nayabans-sector-15 Sector-37
Noida- Noida
2)Jaya Agency
Sector-11
Noida
72
QUESTIONNAIRE (DISTRIBUTORS)
Name:
Address: ______________________
_______________________
_______________________
Phone no._______________________
Area of distribution__________________
(amount)_____________
Transportation system________________________
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Number of retailer being covered by you_____________
Yes _______No______
Whether you are ready to keep amul ice cream if you are given 2% more
____________________________________________
74
QUESTIONNAIRE (RETAILERS)
Name:
Address:____________________
_____________________
Phone no._____________________
Yes__________ No______________
Yes__________ No________
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The refrigerator in your shop in provided by the company or purchased by you.-
_______________________________________________
distributor._____________________________________________
_____________________________________________________
How important are the following attribute to you and your satisfaction level for this brand
Brand name
Volume of sales:
Margin:
Credit terms:
Replacement terms:
Whether you are interested in selling amul ice cream if you are given more margin
Yes________ NO_____________
Comment on that________________________________________
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BIBLIOGRAPHY
BOOKS
WEBSITE
www.amul.com
NEWSPAPERS
Business Standard
Economic Times
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