Sales and Distribution Management of AMUL

Presentation by: Group 4

Saurav Singh Rohit Anand Nishita Mukul Kumar Kumari Shalini Kumar Alok

AMUL
Type Cooperative

Founded
Headquarters Key people

1946
Anand, India Chairman, Gujarat Co-operative Milk

Marketing Federation Ltd. (GCMMF)

Industry Revenue Employees Slogan Dairy
` 13750

crore

2.41 million milk producers The Taste of India

Website

http://www.amul.com/

Key Facts

AMUL means priceless in Sanskrit Amoolya

Brand name managed by an apex cooperation organization GCMMF

Worlds biggest vegetarian cheese brand Worlds largest pouched milk brand

Largest food brand in India

Spurred the white revolution in India

GCMMF: An Overview

Largest food products marketing organization of India Average collection is 7.5 million litres of milk per day Members

13 district cooperative milk producers Union

No. of Producer Members

2.79 million

No. of Village Societies

13,328

Total Milk handling capacity

11.22 million liters per day

Products
Dairy
Frozen Fresh line

Objective

To

study and analyze the sales strategy of Amul. To study and analyze the distribution strategy of Amul. To analyze the effect of distribution strategy on sales of Amul product.

Methodology

Structured interview
With

company officials and distributors

Questionnaire
Open

ended including reasons

Questions

Type of research:
Exploratory Research Descriptive Research

Sample Size
13

distributers of Patna

Method of survey:
Personal

interview

Sales Force Strategy

SALES TEAM

RANK

RESPONSIBILITY

MD

GM AGM
Deputy Manager Branch Manager Assistant Manager Senior Executive Moderate Executive Junior executive
Territory Sales In charge

RANK WISE

Salesma n

MD

Chief General Manager

Zonal Manager Branch Manager Officer In Charge Territory Sales

RESPONSIBILITY WISE

Overall Structure

Recruitment of Sales Force In Amul

The first stage of process, continued with selection and placement

Starts with the intent of the Sale department head

Personal department checks the financial implication and additional expenses, if any A positive process and most important function

Types of Recruitment Sources

INTERNAL SOURCE EXTERNAL SOURCE

Present Permanent Employees Employee Referrals Former Employees

Advertisement. Campus Interview Employment Exchange. Unsolicited Application

Selection
Application Initial interview of the candidate.

Employment tests.
Interviews. Checking references. Physical or medical examination. Final interview and induction

Process of Selection
Approval

from M.D: When there is any vacancy in any department, first step is to take approval from M.D to give advertisement in newspaper. After getting approval the process goes further.
Advertisement: Collection

After getting approval from M.D., advertisement is given in local newspaper for the related post in the sales department. of Application: All the direct applications are collected. of applications: After collection, applications are scrutinized
Securitization Interview: Medical

Interview is being carried out by a panel of 3 to 4 members consisting of head of Sales Department, M.D. and Manager of Administration checkup: Selected person sent for medical check. It held on interview day in AMUL when candidate found medically fit then selection is done
Selection:

At the end they give the appointment letter to the person and he/she is informed about his/her joining in the organization

Induction Program

INTERNAL Continues for 5-6 days Makes familiar with Sales Department of Organization

EXTERNAL Continues for 6-7 days Makes the employees visit the plant, the chilling centre

Training and Development

Identification of need of Training Module Preparation
Selection of employee for the training

Training

Feedback

Methods for the training

On the job training The immediate superior who knows exactly what the sales trainee should learn and do, gives him/her training at his/her workplace.

Coaching:

the new recruit is trained on the job by his/her immediate superior.

Job rotation:

The employee is made to move from job to job at certain intervals.

Need of Training:

When new technology introduce in union.

Increase quantity and quality of product. To meet organization need at all time. For better economic use of materials. To prepare the present employees for higher assignments so that they may promote from within.

Effect of Training: Increased effectiveness of work. Increased dedication feeling for the work. Higher productivity

Motivation Strategy Financial motivators

Adhoc

Non-financial Motivators Promotion

( Based on Seniority, Vacancies, Opinion of Divisional head, past record, behaviour, Skill and knowledge, Experience, Loyalty toward organisation. )

House rent allowance

Travel Allowance Medical

Bonus
Production Bonus Other allowance(Performance Allowance , advance , LTC )

Seminars Conference

Compensation Policy

It includes fixed salary, bonus and shared profit.

Method of remuneration payment:

Time wage Piece wage

Compensation structure:There are 3 sound primary compensation structures.

Internal Equity. External Competitiveness. Performance based payment.

The Channel Network

Procurement Channel (Upstream Flow)

Milk is taken to VCs by farmers on bicycle. Transportation of milk from the cooperatives through truck equipped with tanker.

Distribution channel (Downstream Flow)

First leg of transport is from the manufacturing unit to the company depots.

Second leg is from the depot to the WDs

Third leg this is the flow of good from WDs to retailers

Amul Supply-Demand Linkages

Distribution Channel Structure at Amul

Managing Channel member

Selection
Authentication Proof of solvency Safety of the inventory Details of storage Human resource Details of other product Market coverage Details of advertisement initiatives

Motivating Channel Members

Distributors
Margin Trade marketing Counseling measures Amul yatras Trade schemes Glow boards Schedule of the salesmen Infrastructure facilitation

Retailers

Evaluation of channel members:

Beat plan Cumulative performance Target versus achievement
o Details of the bank guaranty o Photographs of the offices o Details of the WD salesmen and the product lines he deals in o The computerization facility available o The storage space o Refrigeration facility with photograph

o Details of the delivery vehicle with photograph

o Summary of the monthly potential sales of markets o Summary of the product wise monthly sales potential of institutions

Suggestions

Amul should go in for exclusive outlets in at least all the shopping malls. Pushcarts should be increased in number. The company should start a home delivery where a particular household will order full range of products required by it over a period of time. In order to remain sensitive to market demand, it is essential for the company to place additional salesmen on the field since the brand as such commands a high demand in the market but fails to match it with the supply.

THANK YOU