Documente Academic
Documente Profesional
Documente Cultură
By
L. RAMANA PRAKASH
B.Tech. (DT), M.Sc. (FST),
Agriculture, Acharya N.G. Ranga Agricultural University, Hyderabad has done a project
ICE CREAM MARKET” (Amul and Kwality Walls) IN HYDERABAD with Gujarat
5 -5-2006 To 5-7-2006.
The content and the execution of the project are good and also the insights gained
are useful. We wish Mr. L.Ramana Prakash a bright and successful future.
(External Guide)
CERTIFICATE
bonafied project work carried out by Mr. L.RAMANA PRAKASH under our guidance
and supervision.
No part of the project report has been submitted for any other degree or diploma.
Internal Guides
I, Mr. L. Ramana Prakash hereby declare that the project report entitled
fulfillment of the requirements for the degree of Master of Agri Business Management
( L.RAMANA PRAKASH )
ACKNOWLEDGEMENTS
This project is an outcome of not just my efforts but many people have been
involved in this work directly or indirectly through their guidance, help and
Mr. S.V. Chary for providing me an opportunity to carry out the project study.
Business Management, ANGRAU for their invaluable suggestions, crisp criticism and
scholarly guidance.
GCMMF, and Mr. Sri Hari, Junior Executive (Sales) of Amul Sagar, GCMMF for their
collection. My sincere appreciation goes to all my friends. I owe my sincere thanks to all
those individuals who has helped me directly or indirectly to make it possible and my
L. Ramana Prakash
CONTENTS
LIST OF TABLES
LIST OF GRAPHS
EXECUTIVE SUMMARY
I INTRODUCTION
II METHODOLOGY
V SUGGESTIONS
VI APPENDIX
LIST OF GRAPHS
------------------------------------------------------------------------------------------------------------
EXECUTIVE SUMMARY
Ice cream, a most palatable and nourishing food, which was once considered to be
a sophisticated item, is becoming more and more popular among all sections of the
people in recent times. As the mercury rises nobody is happier than the ice-cream
manufacturers who are already filling their iceboxes with dollops of new, mouthwatering
flavours.
Amul is the largest food brand in India, which has a turnover of Rs 3800 crores
per annum. They are manufacturing and marketing perishable dairy products by using
influencing the effective distribution of Amul ice creams manufactured by Gujarat Co-
The respondents are distributors and retailers. Retailers include ice-cream parlors,
dairies, supermarkets, bakeries, general stores, pan shops, canteens, STD booths etc.
3) To study the retailer reasons for promoting Amul brand and their level of
satisfaction
4) To find out the factors influencing the effective distribution of Amul ice creams
The main purpose of the study is to find out the distribution channel effectiveness of
Amul ice creams and the influence of the company’s offers and schemes for improving
their sales. The study also included the extent of distributors and retailers satisfaction
IMPORTANT FINDINGS
Most of the retailers of Amul were quite satisfied with its services as they have
Good demand and Quality are the major reasons for distributors and retailers for
The retailers have problem of product range, replacement policy and availability
The distribution channel is less effective in Amul ice creams during the peak
season.
Consumers prefer Amul brand because of special offers and quality of the product
as expressed by retailers
SUGGESTIONS
There is a scope for Amul to improve on its product range in different categories.
If the availability of stock especially during the peak season can be improved, it
The company can improve the margins for distributors and retailers, which would
All these offering are no doubt welcome in the sweltering heat during summer.
increase consumption."
INTRODUCTION
CHAPTER-I
INTRODUCTION
1.1 INTRODUCTION
Ice cream, a most palatable and nourishing food, which was once considered to be a
sophisticated item, is becoming more and more popular among all sections of the people
in recent times. The popularity and higher consumption of ice cream could be attributed
to its refreshing, cool and delightfully sweet characteristics. The per capita consumption
of ice creams in India is a paltry 250 ml per annum while the average global consumption
is 2 liters.
As the mercury rises nobody is happier than the ice-cream manufacturers who are
already filling their iceboxes with dollops of new, mouthwatering flavours. Amul is the
market leader in this frozen category with a 27 per cent share. It is followed by Kwality-
Wall's at 8 per cent, Vadilal and Mother Dairy, Delhi at 7 per cent each with Dinshaw
and Arun each having a 4 per cent share of the market. The rest of the cone is filled up by
regional brands.
The ice-cream mix was completely different two years ago with both Amul and
Kwality Wall's running almost neck-to-neck. But, Amul's low-priced offerings were
something that HLL couldn't take on for long. And a couple of years ago, HLL
abandoned the masses to chase value shares in the Rs 2,000 crore (Rs 20 billion) ice-
cream market.
Both Amul and Hindustan Lever's (HLL) Kwality Walls claim to be the largest
selling ice-cream brands in India. While HLL quotes a market research study by AC
1, followed by Kwality Walls on various parameters of taste, melting quality, weight, fat
1.2.1 INTRODUCTION
In the modern world, production and distribution have become very complex.
Goods are produced in a far away place, whereas consumers are scattered throughout
country and abroad. Under the circumstances, the producer will not be able to sell goods
directly to the ultimate consumers. The reasons are many : the producer lacks the
financial resources, he has to maintain a large sales force, the products may not justify the
instead of spending a lot of time and energy on distribution, one can concentrate on
production.
products and services from the manufacturer to the consumers. Transfer of ownership is
and institutions, which, in combination performs all of the activities required to link
producers with users and users with producers in order to accomplish the marketing
tasks”. The channel enables the seller to find out the users of its merchandise and help the
path for the movement of title, possession and payment for goods and services.
marketing. We can define the distribution channel as the set of marketing institutions
participating in the marketing activities in the movement or the flow of goods or services
Distribution channels are grouped into two major groups: (i) Direct and (ii)
Indirect. In a direct channel or route, there are no middlemen and marketing functions are
performed by the producer or manufacturer and goods directly pass on from him to the
distribution, linking producer and consumer. They perform the marketing functions.
1.2.4 CHANNELS OF DISTRIBUTION IN MARKETING OF ICE CREAM
The most common routes for bringing the products to the market i.e. from the
DIRECT CHANNEL
PRODUCER CONSUMER
INDIRECT CHANNEL
PRODUCER CONSUMER
AGENT WHOLESALER RETAILER
PRODUCER CONSUMER
RETAILER
consumer goods. The most innovative product offered at an attractive price would be of
no use unless there is an efficient distribution system. The consumer will not search for
the product; it has to be made available at a convenient place from where he can obtain it
easily. The distribution channel provides three types of utilities –time, place and
ownership.
Time utility means the products should be made available when consumers want
them. Place utility is provided by making the product available at a location where a
consumer wants it. Ownership utility is created when the physical possession and title to
Market channels play a far more important role than the mere transporting of
goods from producer to consumers. The economic function of the various institutions that
communication link between the buyer and the user, promotional assistance, and
Channels provide the route to the link the producers and users. Goods produced in
Goods are stored by the middlemen in the channel and released to the market
notice of their customers new products and help the manufacturer in demand
Channel members “break the bulk” i.e; products are offered in small quantities to
the buyers.
The problem of selecting the most suitable channel of distribution for a product is
product, market trends, competition outlook, pricing policies, typical consumer goods and
distribution.
b) For durables and standardized goods, a longer and diversified channel may be
necessary
c) For a custom made product, direct distribution to a consumer or an industrial user
may be desirable
d) For a technical product requiring specialized selling and serving talent, we have
e) Products of a high unit value are sold directly by traveling salesmen and not by
middlemen
a) For the consumer goods market, retailers are essential, but from the industrial
b) If the market size is larger, we have many channels; in a small market, direct
c) For highly concentrated markets, direct selling is adequate enough; but for widely
d) The size and average frequency of consumer’s orders influence the decision about
For the sale of food products, we need both the wholesaler and retailer. A market
implies people who have money and who are willing to purchase want satisfying goods.
The age, income group, sex, vocation, and religion of the customers will have to be
studied to secure adequate information about market segments or target markets. The
buying habits of customers and dealers will also influence our choice of a channel.
1.2.7.3 MIDDLEMEN CONSIDERATION
b) Ability of management
d) Financial resources
distribution or a combination of all the three. The decision is taken after a careful analysis
competition and other relevant factors. The company must solve the conflict within the
Once a unit has determined its basic channel design and levels of distribution, it
has to select middlemen, appoint them, motivate their efforts, and evaluate their utility
periodically.
Each channel of distribution performs the typical marketing functions, which are
storage and inventory control) are treated as separate entities in distribution for purposes
of easier understanding. From the viewpoint of marketing management, the whole
process is a continuous one and constitutes the distribution system in which the
ownership and possession of goods flow to consumers. To locate customers, meet their
demand and offer them service and satisfaction- these are the basic tasks of the
distribution. Joint co-operative and united efforts alone will ensure the successful
distribution of a product.
Once a unit decides on the general channels to be used, it has to determine the
number of middlemen it needs in each channel, i.e., the intensity of distribution. There
a) INTENSIVE DISTRIBUTION:
product at retailer level or wholesaler level. Ultimate consumers will not go out of their
way to purchase a product or will readily accept substitutes, when brand is not available.
The appropriate strategy is to saturate every suitable retail outlet with the brand.
b) SELECTIVE DISTRIBUTION
At the retail level, a strategy of selective distribution restricts the sale of the
product to a limited number of outlets. Each store selected must meet the company’s
more selective, the manufacturer may expect a greater effort on the part of retailer.
Retailers are expected to be more willing to accept the manufacturers’ suggestions and
control on marketing strategy. If the product has a long and useful life and if consumer
c) EXCLUSIVE DISTRIBUTION
product line, repair service, or other special effort on intermediary may be granted to an
exclusive area under exclusive distribution. The manufacturer can have greater control
over prices and markets and he can get the maximum co-operation from middlemen.
1.4.1 HISTORY
Dr Verghese Kurein and milk producers of Gujarat under the advise of nationalist
leaders, Sardar Vallabhai Patel and Morarji Desai, formed Amul in the year 1946. Amul
is based in Anand town of Gujarat. Amul initiated the Dairy Co-operative Movement in
India and formed an apex co-operative organization called the Gujarat Co-operative Milk
Marketing Federation Ltd (GCMMF). This co-operative revolution has made India the
GCMMF is the marketing entity for products of all 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. In recent survey GCMMF was
ranked amongst the top ten FMCG firms in the country while Amul was rated the second
most recognized brand in India amongst all Indian and MNC offerings.
Interestingly, the Gujarat movement spread all over India and a similar structure
was replicated two national organizations; the National Dairy Development Board
(NDDB) and the National Co-operative Dairy Federation of India (NCDFI) were
established to coordinate the dairy activities through co-operatives in all the states of the
country.
Amul may justifiably take pride in having built the largest food product business
in the country. In the competitive environment, Amul has survived and grown on the
AMUL means "priceless" in Sanskrit. Amul products have been in use in millions
of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amul spray, Amul
Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and
Amulya have made Amul a leading food brand in India. Today Amul is a symbol of
many things:
food product marketing organization. The federation supplies liquid milk to Mother
Dairy, Delhi; which is an important step in establishing a national grid. It has adopted
standards and specifications that conforms to the most stringent standards the world over.
Co-operatives in Gujarat, which aims to provide remunerative returns to the farmers and
also serve the interest of consumers by providing milk products which are good value for
Th
money. For the 7 consecutive year federation has received the award for being the
The brand loyalty and commitment of the wholesale dealers and retailers have made
it possible for the products to reach consumers in the remotest parts of our country.
The Amul ice cream business is currently growing at the rate of more than 20 percent. It
has now adopted a scheme called ‘Hamara Apna Deep Freezer’ for strengthening the
retail network.
1.5 DISTRIBUTION
Providing place, time, form and possession utilities to consumers is the essence of
distributor / stockiest and the retailer. Since its perishable period is high it requires
retailers.
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 where the suppliers are sent to
may be company owned or franchise outlets and retail outlets like provision stores,
supermarkets, bakery, etc; Today most of the companies in the industry are opening these
Ice- cream parlors to cater to retail segment. Moreover with retail margins being in the
range of 18-20 % coupled with urbanization the companies are emphasizing on this from
of retailing.
manufacturers and regional players. There are nearly 150 manufacturers in the organized
segment, which accounts for 30-35% of sales i.e. about 2000 units.
In the organized segment, the significant brands are Kwality Walls, Vadilal,
Besides the main national brands there are other premium brands, which have
carved a niche for themselves in their respective markets. These players mostly
concentrated on large metro cities. These players sell through their exclusive parlors. The
major national players sell through franchise parlors, as well as through retail stores,
1 NORTH Nirula
To understand distribution channel effectiveness of Amul ice cream for the two
distributors Sri Krishna Enterprise and Sudarshan Enterprise and retail outlets covered by
them in the twin cities of Hyderabad and Secunderabad. The study is based on the two
sources of data viz., primary and secondary sources. The present study depends mostly on
The study is going to bring out the ways and means to improve the effectiveness
components in improving the market. The study also probes the preferences of the
To study the retailers reasons for promoting Amul brand and their level of
satisfaction
To find out the factors influencing the effective distribution of Amul ice creams
METHODOLOGY
The present study wants to unearth the information about effectiveness of the
distribution channel and potential market for Amul ice cream, the retailer reasons for
promoting Amul brand and their level of satisfaction and factors affecting the effective
Therefore, research design adopted for the present study is exploratory in nature.
Hyderabad and Secunderabad cities were selected for the study. Both distributors
The study made use of both primary and secondary sources. The primary sources
sources of information about the ice cream market and the company information is
and distributors (Annexure-2). The two questionnaires were pre tested and necessary
2.4 SAMPLING
For this study the main sample units were the distributors and retailers who deal
directly in Amul products. The sample size was 200 retail outlets, of which 150 were
The data collected through questionnaire were analyzed using the latest statistical
The study was limited to the areas that were covered by the two distributors in
Study was restricted only to 150 retailer outlets of Hyderabad and Secunderabad
Freezer is one of the important equipment in stocking and retailing of ice creams.
These freezers are sometimes supplied by the company to certain outlets, whereas some
of the retailers maintain their own freezers. The following table provides the information
From the above table we can interpret that 93 .3 % of retailers who were selling
Amul ice cream have their own freezer and only 6.7 % have company owned freezers.
The reason being that Amul supplies freezers only to the exclusive Amul outlets and
Total 50 100
From the table we can conclude that 82 % of retailers who were selling Kwality
Walls ice cream have their own freezers and 18 % of them posses the company freezers.
The percentage of company owned freezers in Kwality Walls retailer outlets are in higher
than that of Amul retailer outlets, the reason being that Kwality Walls to fight tough
competition in the market is trying to motivate the retailers by offering them the free
company freezers.
GRAPH No-1: Ownership of freezers in the Amul ice cream retail outlets
Company owned
freezers
7%
Retailer owned
freezers
93%
GRAPH No-2: Ow nership of freezers in the Kwality Walls ice cream retail outlets
Company owned
freezers
18%
Retailer owned
freezers
82%
3.2 Retailers experience in ice cream business
In the globalization era most of the companies are facing tough competition
among themselves. So they have established more number of retail outlets in recent years
to increase accessibility and availability of the products to the consumers. The following
table provides the information about the number of years associated with the ice cream
2 6-10 Years 42 28
3 11-15 Years 21 14
From the above table we can interpret that 55 % of Amul retailers fall in 0-5 years
category in the ice cream business. The reason being that the demand of ice cream has
been increasing rapidly in recent years due to increased purchasing power of the
consumers and changed food habits of the people. In addition GCMMF (Amul) has
ice creams.
The number of years associated with the ice cream business with regard to
1 0-5 Years 24 48
2 6-10 Years 12 24
3 11-15 Years 11 22
4 16-20 Years 3 6
Total 50 100
From the table it can interpret that 48 % of Kwality Walls retailers fall in 0-5
years category in the ice cream business. The growth of Kwality Walls retail outlets was
less when compared to Amul retail outlets in last 5 years. The reason being that Amul
brand was giving more offers and incentives to the retailers as well as dealers to improve
the sales of ice cream as compared to Kwality Walls. But both Amul and Kwality Walls
retail outlets were growing rapidly with the industry growth in general.
GRAPH No-3: Retailers experience in Amul ice cream business
60
55.3
50
40
PERCENTAGE
30 28
20
14
10
2.7
0
0-5 Years 6-10 Years 11-15 Years 16-20 Years
YEARS IN BUSINESS
60
48
50
PERCENTAGE
40
30
24
22
20
10 6
0
0-5 Years 6-10 Years 11-15 Years 16-20 Years
YEARS IN BUSINESS
3.3 Turnover of ice cream retail outlets
parameter of retailing is turnover. Most of the retail marketing strategies are mainly based
on the turnover of the retail outlets. The following table provides the information about
2 2.5 - 3 lakhs 57 38
3 3 - 3.5 lakhs 39 26
4 3.5 - 4 lakhs 18 12
5 4 - 4.5 lakhs 9 6
6 4.5 - 5 lakhs 3 2
From the table it can conclude that 38 % of Amul retailers were selling Amul ice
creams with a turnover of Rs 2.5 – 3 lakhs and 26 % of Amul retail outlets had a turnover
of Rs 3 – 3.5 lakhs. It indicates more number of medium size retail outlets was
3.6.
TABLE No-3.6: Turnover of the Kwality Walls retail outlets (in Rs)
1 2 - 2.5 lakhs 5 10
2 2.5 - 3 lakhs 12 24
3 3 - 3.5 lakhs 13 26
4 3.5 - 4 lakhs 9 18
5 4 - 4.5 lakhs 8 16
6 4.5 - 5 lakhs 3 6
Total 50 100
From the table we can infer that the turnover of the Kwality Walls retail outlets was
ranging between Rs 2.5 – 3.5 lakhs, similar to that of Amul retail outlets. at the same time
it is also noted that the high turnover retail outlets were more in number for Kwality
Walls compared to Amul, the reason being that the unit price of Kwality Walls ice cream
was more compared to Amul ice creams and also most of the Kwality Walls retail outlets
40 38
35
30
26
PERCENTAGE
25
20
15 12
11.3
10
6
4.7
5 2
0
2 - 2.5 lakhs 2.5 - 3 lakhs 3 - 3.5 lakhs 3.5 - 4 lakhs 4 - 4.5 lakhs 4.5 - 5 lakhs 5 lakhs and
above
TURNOVER
GRAPH No-6: Turnover of the Kwality Walls retail outlets (in Rs)
30
26
25 24
PERCENTAGE
20 18
16
15
10
10
6
5
0
2 - 2.5 lakhs 2.5 - 3 lakhs 3 - 3.5 lakhs 3.5 - 4 lakhs 4 - 4.5 lakhs 4.5 - 5 lakhs
TURNOVER
3.4 Storage capacity of ice cream retail outlets
competitors. So many companies feel that availability is the most important factor in ice
cream sales. Freezers avoid temperature fluctuations during storage and distribution of
ice cream. The following table provides the information about the freezer storage
Table No-3.7: Freezer storage capacity of Amul retail outlets (in liters)
Storage capacity of
From the table we can conclude that 76 % of Amul retailers have freezer with the
storage capacity of 251 – 400 liters. It indicates most of the Amul retail outlets are
uniform in nature of the business. And 251 – 400 liters capacity freezers are more
suitable as it can store enough quantity of ice cream and the frequency of distribution can
80 76
70
60
PERCENTAGE
50
40
30
20.7
20
10
3.3
0
100 - 250 251 -400 > 400
STORAGE CAPACITY IN LITERS
GRAPH No-8: Freezer storage capacity of Kwality Walls retail outlets (in liters)
53
52
52
51
PERCENTAGE
50
49
48
48
47
46
100 - 250 251 -400
STORAGE CAPACITY IN LITERS
The storage capacity of freezer with regard to Kwality Walls outlets is given
Table No-3.8: Freezer storage capacity of Kwality Walls retail outlets (in liters)
From the table we can interpret that most of the retailers who were selling
Kwality Walls ice creams have the freezer capacity ranging between 100 – 250 liters
3.5 Segment wise sales of Amul and Kwality Walls ice creams
A group of products, within a product class that are closely related because they
perform a similar function, are sold to the same customer groups, are marketed through
the same outlets or channels or fall within given price ranges. The following table
provides the information about the sales of cup ice cream of Amul and Kwality Walls in
Super Market 2 2 30 10 10 54
Kirana/General stores 0 0 14 4 2 20
Bakery 0 2 24 0 0 26
Total 2 4 68 14 12 100
Out of 100 % of the retailers who are selling Amul ice cream
From the table we can conclude that 38 % of retailers of Amul sell 20 % of cup
ice cream whereas 68 % of retailers of Kwality Walls sale 20 % of cup ice cream. It
indicates sale of Kwality Walls in the cup ice cream segment was higher when compared
to Amul. And almost 48 % of Amul ice creams were selling through bakeries. The reason
being that bakeries have seating arrangements to sit and eat comfortably and generally
most of the middle class people, who are the main target customers for Amul, visit
bakeries.
Almost 54 % of Kwality Walls cup ice creams were sold through super markets.
The reason being that the price of Kwality Walls cup ice creams were at the premium
range and only rich and above middle class people, who are the target customers for
Table No-3.10: Sale of Bricks / Flavours ice cream of Amul and Kwality Walls (in%)
Super Market 4 12 18 8 8 4 54
Kirana/General stores 2 4 6 2 6 0 20
Bakery 0 4 10 2 8 2 26
Total 6 20 34 12 22 6 100
Out of 100 % of the retailers who are stocking Amul ice cream
From the table we can conclude that the sale of Amul brand in the Bricks /
Flavours ice cream segment was higher when compared to Kwality Walls. About 32 % of
Amul retailers were selling 30 % of Brick / Flavour ice cream, Whereas 22 % of Kwality
Walls’ retailers were selling 30 % of Brick / Flavour ice cream. The reason being that
Amul was giving more offers and more advertisements in this Bricks / Flavour ice cream
segment. And also Amul had high product range in this segment.
Bars / stick ice creams are most favorite ice creams for children. The sale of Bars
/ Sticks ice creams with regard to Amul and Kwality Walls ice creams are given under in
table 3.11.
Table No-3.11: Sale of Bars / Stick ice cream of Amul and Kwality Walls (in %)
Super Markets 0.7 2.7 8.7 4.7 1.3 0 1.3 0.7 20.1
Super Market 6 12 16 12 8 54
Kirana/General stores 2 6 4 2 6 20
Bakery 4 14 4 0 4 26
Total 12 32 24 14 18 100
Out of 100 % of the retailers who are stocking Amul ice cream
From the table we can infer that the sale of Kwality Walls in the Bars / Stick ice
cream segment was higher when compared to Amul. Since 24 % and 14 % retailers of
Kwality Walls were selling 25 % and 30 % of Bars / Stick ice cream respectively,
whereas 16 % and 2.7 % retailers of Amul were selling 25 % and 30 % of Bars / Stick ice
cream respectively. The reason being that Amul product ranges in this particular Bar /
teenagers. The sale of Cone ice cream with regard to Amul and Kwality Walls are given
Table No – 3.12: Sale of Cone ice cream of Amul and Kwality Walls (in %)
Super Market 2 4 16 24 6 2 54
Kirana/General stores 0 0 8 10 2 0 20
Bakery 0 2 6 10 6 2 26
Total 2 6 30 44 14 4 100
Out of 100 % of the retailers who are selling Amul ice cream
From the above table it can be concluded that the sale of Kwality Walls in the
Cone ice cream segment was higher when compared to Amul. Since 44 % and 14 %
retailers of Kwality Walls were selling 20 % and 25 % of Cone ice cream respectively.
cream respectively. The reason being that Amul has entered recently in this Cone ice
cream segment, whereas Kwality Walls had already established and is the market leaders,
Super Markets
1% 3% 1%1%
3% 2% 20% Bakery
7% Kirana/General stores
STD Booths
Ice cream parlor
Milk booths
13%
Pan shop
Sweet shop
49% Medical hall
Canteen
26%
Super Market
Kirana/General stores
54% Bakery
20%
GRAPH No-11: Segment wise sales of Bricks / Flavours ice cream of Amul
Super Markets
Bakery
3% 1%1%
3%2%1% 20%
7% Kirana/General stores
STD Booths
Ice cream parlor
GRAPH No-12: Segment wise sales of Bricks/Flavours ice cream of Kwality Walls
26%
Super Market
Kirana/General stores
Bakery
54%
20%
3.6 Retailers understanding about customer preference of Amul and
Kwality Walls ice cream.
The main features, which pursue the customer to prefer a particular brand of ice
creams, are quality, price, taste, flavour and offers given by the company. The following
table provides the information about the reasons for customer preference of Amul and
Brand
1 Quality 90 10 20 80
3 Taste 68 32 38 62
About 90 % of the retailers felt that Amul was preferred by the consumers for its
better quality. Whereas only 20 % of the retailers of Kwality Walls felt that Kwality
Walls was preferred for its quality. Hence it can be said that Amul brand was preferred
for its quality, whereas customers of Kwality Walls preferred the brand not just relying
preference. About 56.7 % of the Amul retailers felt that Amul brand was preferred by the
customers for its reasonable price. Whereas 94 % of the retailers of Kwality Walls felt
that the customers did not consider price as the only reason for preferring Kwality Walls.
Hence, it can be concluded that price parameter played relatively a better role in Amul
With regard to the table about 68 % of the retailers of Amul felt that Amul ice
creams were preferred by the customers for its better taste. Whereas only 38 % of the
retailers of Kwality Walls felt that Kwality Walls was preferred by the customers for its
taste. Hence, it can be said that Amul was preferred more for its taste by the customers
Flavour is the main component of ice cream to bring differentiation in ice cream
products. The study shows that 100 % of Kwality Walls’ retailers felt that flavour was the
main reason for preferring Kwality Walls by the customers. Whereas only 37.3 % of
Amul retailers felt that Amul was preferred by the customers for its better flavour. Hence,
the major difference found between both the brands was the availability of different
For boosting up the sales and fight the competitors in the market the commonly
used promotion tool is sales promotion, which gives special offers to the customer. The
study has shown that 100 % of the Amul retailers felt that Amul was preferred by the
customers for their offers. Whereas in contrast 100 % of Kwality Walls retailers felt that
offers hardly has any impact on the customer preference of Kwality Walls brand.
3.7 Retailers’ satisfaction with the quality of service rendered by the
distributors.
Distributors has to provide quality services such as timely supply of the products,
ensure all product range, good replacement policy of ice creams, regular salesmen visit to
the retail outlets and after sales service to all retail outlets in order to obtain effective
sales of the ice creams. The following table gives the information about the retailers’
Table No-3.14: Retailers’ satisfaction with the quality of service rendered by the
distributors (in %)
Brand
From the table it can be concluded that 96.7 % of Amul retailers were satisfied
with the timely supplies of the products by the distributor. Whereas only 70 % of the
Kwality Walls’ retailers said that they were satisfied with the timely supplies of the
product. The reason being that Amul has sufficient number of distributors to reach all
retailers at right time. Hence, it can be concluded that the Amul distribution network
ensures timely supply of ice cream to the retailers compared to Kwality Walls.
Further about 58.6 % of Amul retailers were satisfied with the product range
supplied by the distributor. The reason being that many distributors keep the products,
which are in great demand by consumers. Whereas about 74 % Kwality Walls’ retailers
were satisfied with the product range supplied by the distributor. Hence it can be inferred
that Kwality Walls’ retailers were more satisfied with the product range offered by the
Good replacement policy encourages the retailers to keep more products in their
retail outlets as it reduces the risk element. About 57.7 % of Amul respondents were not
Walls were satisfied. Hence, it can be concluded that Kwality Walls’ retailers were more
satisfied with the replacement policy when compared to Amul retailers. So Amul can
retailers. Among the total number of Amul respondents, about 86 % of Amul retailers
were satisfied with the salesmen visit. Whereas 100 % of Kwality Walls respondents
were satisfied with the salesmen visit. Hence, it is clear that there is scope for Amul
brand to improve the contacts with retailers by making more salesmen visits.
The table also shows that nearly 52 % of Amul retailers were satisfied with the
after sales service, Whereas 100 % of Kwality Walls respondents were satisfied with after
sales service. So Amul distributors can improve their after sales service to the retailers.
3.8 Type of complaints with regard to ice creams of Amul and
Kwality Walls
The common complaints with regard to ice creams are with regard to packaging,
quality, availability and service as expressed by the retailers. The following table shows
the type of complaints with regard to Amul and Kwality Walls of ice cream.
Table No-3.15: Type of complaints with regard to ice creams of Amul and Kwality Walls
(in %)
Brand
Yes No Yes No
1 Packaging 80 20 16 84
From the above table we can conclude that 80 % of the Amul retailers had more
problems with packaging compared to Kwality Walls (only 16 %). So packaging was a
major factor, which was causing a problem for the effective operation for the Amul
retailers. The packaging of Kwality Walls ice cream is more attractive and convenient
Out of the total sample collected, 100 % of the Amul retailers as well as Kwality
Walls retailers had no quality complaints. So it can be concluded that the ice cream
quality in both Amul and Kwality Walls was well maintained during distribution of ice
cream.
Almost 50 % of the retailers of Amul had problem of shortage in availability of
ice creams with the distributors; Whereas 92 % of Kwality Walls retailers did not have
Out of the total Amul retailers 19.4 % of the retailers had service complaints,
whereas retailers of Kwality Walls did not have any service complaints. So Amul can
3.9 Support from the company to the retailers of Amul and Kwality
Walls
Among ice cream retailers many of them are small investors. So they cannot
invest much money to attract the customers and thereby increase their sales. So
companies have to support their retailers in order to improve the sales of their products.
The following table provides the information about the support from the company to the
Table No-3.16: Support from the company to the retailers of Amul and Kwality Walls
(in %)
Brand
Yes No Yes No
5 Overall satisfaction 96 4 92 8
From the table it can be seen that 80.7 % of Amul retailers were not satisfied with
the new product offers provided by the Amul, whereas 80 % of the retailers of Kwality
Walls were satisfied with the new product offered by the Kwality Walls. It indicates that
the new products in ice creams were launched by the Kwality Walls more frequently
Almost there was no trade promotion support to the retailers by both the
companies. The reason being that the companies focus to promote their brand of ice
All the Amul retailers (100%) said that the Amul provides best consumer offers to
the customers as a support to them. Whereas only 56 % of Kwality Walls retailers said
that Kwality Walls provides best consumer offers to the customers. Hence, Amul has a
better consumer offers to support its retailers than the Kwality Walls.
dissatisfied with POP (Point of Purchase) displays in their retail outlets, whereas 94 % of
the retailers of Kwality Walls satisfied with POP displays in their retail outlets. Hence,
Amul can be improved on its POP displays in their retail outlets as a support to the
retailers.
Above study indicates that 96 % of Amul retailers were satisfied with the
company support and also retailers of Kwality Walls expressed in similar way with
greatest success stories with its Amul brand, is now aiming at a 17 percent growth in
sales to Rs 3800 crores this fiscal against sales of Rs 3200 crores in the previous year.
The brand loyalty and commitment of the wholesale dealers and retailers have
made it possible for the products to reach consumers in the remotest parts of our country.
The survey conducted provides with a clear picture of the ice cream segments
across brands. For the companies to succeed, they have to concentrate on the quality, the
reasonability of the price, the offers provided to the customers and the availability of the
flavours. In the competitive scenario the companies should focus in the production of the
The transportation cost and efforts of the distribution channel can be reduced by
increasing freezer storage capacities to the optimum levels based on demand of the ice
by the company. Amul ice creams were provided with good quality, taste and best offers
at reasonable price. But flavours in Amul ice creams were less compared to Kwality
Walls ice creams. So Amul can be improved ice creams with different varieties of
flavours.
Amul retailers were satisfied with the quality of services such as timely supplies
of ice creams, product range offered, salesman visit and after sales service rendered by
the distributor. But Amul retailers were dissatisfied with the replacement policy. So Amul
can be improved their replacement policy of ice creams in order to encourage their
retailers.
did not have any quality complaints but at the same time it should ensure better
Amul brand could satisfy the consumer by giving good offers compared to their
competitors but at the same time Amul can improve support to the retailers through new
product offerings, trade promotion for retailers and POP displays in retail outlets.
unearthed desires and place them into different product categories. Customer has to be
provided with better services in order to show loyalty towards the brand. Similarly,
distributors and retailers have to be maintained by providing them better service and
offers for promoting their sales in turn increasing the companies’ sales and turnover.
CONCLUSIONS:
Distributors also have problem of sales returns and delays in the replacement
Most of the distributors of Amul are quite satisfied with its services and they have
The retailers of Amul have problem with the product range, replacement policy
Good demand and good quality are the major reasons for distributors and retailers
Good quality, good taste and best consumer offers are the major reasons for
The distribution channel is not that much effective in Amul ice creams as
Amul stand best in the consumer offers and is the prime motivation for the
Amul range of ice creams does not satisfy the consumers with regard to flavours
The distributors and retailers feel that the Amul consumer offers should continue.
SUGGESTIONS
CHAPTER - V
SUGGESTIONS
The Amul carrying and forwarding agencies(C&FA) if located in the city would
The company can improve on its product range, replacement policy of damage
The availability of all product categories can be increased with the distributors
The company can improve its support to the retailers with POP displays, gift
It has been observed that most number of respondents is not aware of the
available flavours in the Amul brand. So advertisement should focus and highlight
Ice cream parlors and bakeries are the best outlets from where the customers buy
ice creams, there is a need to concentrate more number of varieties and use more
promotional activities
The competitors are providing summer special outlets in the twin cities, so to face
All these offering are no doubt welcome in the sweltering heat during summer.
increase consumption."
APPENDIX
CHAPTER-VI
APPENDEX
Annexure-1
Distributor:
Address:
Year of Establishment:
Since how many years are you in the business of selling Ice cream:------------
f) Others specify
2) Please indicate the ownership of the Ice cream freezer in your outlet
a) ---------------------- ----------------------
b) ---------------------- ----------------------
Brand Reasons
a) ----------------------- ---------------------------------
b) ----------------------- ---------------------------------
7) Please rank brands sold in your outlet by customer preference and cite reasons
a) -------------- -------------------------------------------------
b) -------------- -------------------------------------------------
8) Please rate the quality of services rendered by your distributor on the following
parameters
Timely supplies
Product range
Replacement policy
Salesman visit
freezer
Timely supplies
Product range
Replacement policy
Salesman visit
freezer
9) Please indicate the type of complaints you frequently come across
10) Please rank the brands in terms of the margins and other facilities rendered
Brand Rank
1) --------------------- -----------------------
2) --------------------- -----------------------
11) Please list down the support you get from the company in terms of
Trade promotions
Consumer offers
POP displays
12) Please indicate your overall satisfaction with the distribution of the companies
mentioned below
Amul
Kwality Walls
13) Please suggest a few measures aimed at improving the share of AMUL ice creams in
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Annexure-2
Year of establishment :
Address :
No. of salespersons :
1) Profit or Net margin you get from the product Amul ice cream (in %)
0%-2%
3%-6%
7%-9%
10 % - 12 %
13 % & above
1 – 2 Months
3 – 4 Months
5 – 6 Months
7 and above
3) Why did you choose the brand for distribution?
Good demand
Attractive margins
Incentive schemes
Good quality
0%-4%
5%–8%
9 % - 12 %
13 % and above
50 or below
51 – 100
101 –150
151 – 250
251 or above
6) Comment the satisfaction level on Amul’s distribution network and services
Timely supplies
Product range
Replacement
policy
Salesman visit /
cooperation
of freezer
Overall support
7) What are the most frequently faced problems in the Amul Ice creams?
Packaging
Quality
Availability of stock
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9) Do you have any problems with /Amul’s distribution network? (Yes / No)
Delivery
Sales returns
10) Are you facing any problem from the sales person? (Yes / No)
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11) Please suggest a few measures aimed at improving the share of AMUL ice creams in
general:--------------------------------------------------------------------------------------------------
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