STUDY ON FACTOR AFFECTING SALES OF AMUL ICE-CREAM: - A RETAILER & CUSTOMER PROSPECTIVE

PROJECT REPORT ON

FACTORS AFFECTING SALES OF AMUL ICE-CREAM IN RESPECT TO RETAILERS/CUSTOMERS.

Submitted By:Akshay Badkas (12BSPHH010077) IBS Hyderabad

ICFAI- Business School, Hyderabad.

STUDY ON FACTOR AFFECTING SALES OF AMUL ICE-CREAM: - A RETAILER & CUSTOMER PROSPECTIVE

A REPORT ON FACTORS AFFECTING SALES OF AMUL ICE-CREAM IN RESPECT TO RETAILERS/CUSTOMERS. By AKSHAY BADKAS

A report submitted in partial fulfillment of the requirements of MBA Program of IBS Hyderabad Distribution List:GCMMF (Gujarat Co-operative Milk Marketing Federation)

Date of Submission:03-05-2013

ICFAI- Business School, Hyderabad.

STUDY ON FACTOR AFFECTING SALES OF AMUL ICE-CREAM: - A RETAILER & CUSTOMER PROSPECTIVE

Abstract:The Project work began with the practical survey and observation for understanding the Market of Ice-creams in Hyderabad Region. The work assigned was to find the ways of selling AMUL Deep Freezers to the retailers. Mainly in Kukatpally, Madhapur region where there is Zero Penetration of AMUL Ice-cream. The work is basically to increase Market share of AMUL Icecream in Hyderabad. Before moving ahead to field work there need to be an understanding of AMUL Ice-cream. A Detail Analysis about the Sales and Distribution Pattern of AMUL Icecream. There are basically three major players in concern to Hyderabad office. First is Amul itself then Distributor and then Retailers The work which is been allotted by the company guide Mr. Kunal Kashikar is to understand how the selling is been done. He allotted me Kukatpally area to analyze the market potential of the area and to gather the information regarding the existing outlets in the region. And try to find the ways how the Amul ice-cream outlets can be opened up in that region. Plus to find out the offering, Margin, Marketing strategies of the competitors so it took around 10 days to gather information regarding the existing brand and outlets in the region. Then after finding out the potential retailers who showed interest in having AMUL Ice-creams in there Shop I started contacting them and try to convince them about the offerings of AMUL Ice-cream. I mainly started targeting Shops like Medical stores and Big Kirana stores, but due to the heavy investment in the deep-freezers many of them denied for it. Then I move towards the other area that is Madhapur in which I have allotted the same work. The data collection of the stores in Madhpur area is been done. Right now I am working on the other area that is Kondapur for the collection of data and information.

ICFAI- Business School, Hyderabad.

STUDY ON FACTOR AFFECTING SALES OF AMUL ICE-CREAM: - A RETAILER & CUSTOMER PROSPECTIVE

Learning from the Work: The whole of the work done by me till now is the field work in which I practically need to deal with the retailers which helps in understanding there needs/views and perception towards the brand. The collection of data regarding margin is quite difficult as the retailers are not ready to share information regarding it. So sometime we act a shopkeeper who wants to open a shop in the region and then ask about all those things. Sometime I need to meet the distributor of Different brands to have a fair idea about the margin and offerings. So there I need to act as a retailer of the shop to get the information out of it. There is different margin for different retailers as it vary from their relationship with the company so every time a retailer use to tell a different margin and also the product which is been use to rectify by meeting the related distributor to get the actual margin. The convincing skills play an important role out here because some way or other I am playing a role of salesman for the company. So to convince a retailer to invest in Deep freezer of around 20,000 is a very difficult which help me in developing my convincing skills. And also a fair idea is been gained by me regarding the selling aspect of marketing.

ICFAI- Business School, Hyderabad.

STUDY ON FACTOR AFFECTING SALES OF AMUL ICE-CREAM: - A RETAILER & CUSTOMER PROSPECTIVE

Introduction:Company Profile: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 Multiple choice questions: - Questions of this type offer the respondents an alternative to choose the right answer others. It is faster, Time saving and less biased. It also simplifies the tabulating process Products have been in use in millions of home since 1946. Amul product range has made Amul a leading food brand in India. It has a turnover of around Rs.52.55 billion in 2007-08 50 years after it was first launched, And also Amuls sales figure have been jumped from 1000 tons a year in 1966 to over 25,000 tons a year in 1997. There is no other food brand in the market who comes even close to it. All of these is because a thumb-sized girl climbed on the hoardings and put a magical spell on the masses.

AMUL Stands for:-

A= Anand M= Milk U= Union L= Limited

ICFAI- Business School, Hyderabad.

STUDY ON FACTOR AFFECTING SALES OF AMUL ICE-CREAM: - A RETAILER & CUSTOMER PROSPECTIVE

Amul Ice-cream:Amul Ice-cream was launched on 10th March 1996 in Gujarat. The portfolios consist of impulse product like sticks, cones, cups as well as take home pack as well as institutional/caterings packs. Amul Ice-cream was launched on the profile of Real Milk Real Ice-cream. Given that it is a Milk company and the wholesomeness of its products gives it a competitive advantage. In 1997 Amul Ice-cream entered Mumbai Followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled across the country in 1999. It has combated competition like, Kwality walls, Mother dairy and achieved no 1 position in the country. The position was achieved in 2001 and since then it continued stay on the top. Amul entry into Ice-cream market is considered to be successful due to the large market share it was able to capture in short-period of time, Due to price differentiation and quality of products and off course the brand name.

ICFAI- Business School, Hyderabad.

STUDY ON FACTOR AFFECTING SALES OF AMUL ICE-CREAM: - A RETAILER & CUSTOMER PROSPECTIVE

About the Project:The project is about the study of different factors which influences sales of AMUL Ice-cream in respect to retailers and customer as For AMUL Retailers are there customer and for the Retailers the end consumer is there customer. So ultimately there are three major player out there AMUL, Retailers and the End Consumer so there will be different factor responsible for buying or not buying AMUL ice-cream or Stocking or not Stocking AMUL Ice-cream in concern to retailers. So I am going to study all these factor and will do a research through which the company will find New ways of increasing the market share as well Understanding the loop-hole of the strategies or offering it is facing right and also a full-fledge competitive analysis to understand competitors offering, price, availability , Distribution pattern and margin to retailers. This would help them in analyzing the competitors strategies and to build upon it.

Implication of the Project: This project helps in develop a long term strategy for establishing GCMMF (Amul) Icecreams in target market. It helps to know the strength and weakness of company and recommendations for how company and overcome the week areas. Marketing Managers can identify Market opportunities and develop targeted Promotion plans and strategies for Frozen Units. As the project includes extensive study of various factors influencing the buying decision of customers, it will also help to rectify those factors where company is lagging behind against competitors. New ideas will be suggested to make better marketing strategies to remain leader in the market This is will also help in finding out the new market potential and opportunity.

ICFAI- Business School, Hyderabad.

STUDY ON FACTOR AFFECTING SALES OF AMUL ICE-CREAM: - A RETAILER & CUSTOMER PROSPECTIVE

Objectives: To help the head office in Hyderabad to understand the market in depth. To analyze the consumer perception towards AMUL Ice-cream in Hyderabad. To compare the promotional activities of Competitors with that of AMUL. Understanding the various Strategies adopted by AMUL with respect to its competitors and various segments it targets. Identifying the importance of various factors which contribute in the buying decision of AMUL Ice-cream. With the help of secondary research identify Market potential. To find the new ways of increasing sales by using different tools of research. Understanding the concept of 4P(s) (Product, Price, Place, Promotion) of Marketing with respect to AMUL Ice-cream.

Methodology:The methodology used is: Exploratory Research used is:Exploratory research seeks to discover new relationship, emphasis on discovery of ideas. Exploratory research is done to clearly understand the major objectives of the research to proceed with. It is done to get a clear picture of what needs to be done. Marketing researches devote a significant portion of their work on exploratory studies when very little is known about the problem being examined. It includes the study of the present market of Hyderabad to find out the factors which play a vital role in determining the objective of the study. Mode of Exploratory Research: Survey Tool Used:Questionnaire Personal Interview Descriptive Research:Descriptive research is also called as Statistical Research The main purpose of Descriptive research is to describe characteristics of a population or a phenomenon. And also to describe the data and characteristics about what is being studied. Questionnaire will be developed in a manner so as to gather the required information. And personal interviews will be conducted for accuracy and correctness of the acquired data. Questionnaire will consists of: Multiple choice question Open ended questions Dichotomous Use of Different Scales
ICFAI- Business School, Hyderabad.

STUDY ON FACTOR AFFECTING SALES OF AMUL ICE-CREAM: - A RETAILER & CUSTOMER PROSPECTIVE

Multiple Choice Questions:This type of question offered the respondent different options to choose from. It is a time saving and an effective way of getting response and it will also help in analysis different responses in concern to different responded with their demographic background Open Ended Question:In this type of question respondents are free to answer the question according to their views and understanding and they can express those views and understanding in their own words. This kind of question is very useful in understanding consumer perception towards the product. Dichotomous:These questions are those questions which has two possible responses that could be Yes/No, True/False, Agree/Disagree Personal Interviews:Personal interviews are done only with the Retailers whose specifically stores AMUL Ice-cream in there outlet only. These interviews will be done only at that time of taking their responses in the form of Questionnaire. There will be different question which will be in concern to MARGIN, AVAILBILTY, DISTRIBUTION, and QUALITY.

ICFAI- Business School, Hyderabad.

STUDY ON FACTOR AFFECTING SALES OF AMUL ICE-CREAM: - A RETAILER & CUSTOMER PROSPECTIVE

Porters Five Force Model:Porters Five Force Model includes three different model of horizontal competition, Threat of substitute of product or services, Threat of established rival, Threat of new entrant. And there is two different competitions from the vertical competition i.e., the bargaining power of supplier and barraging power of customer.

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STUDY ON FACTOR AFFECTING SALES OF AMUL ICE-CREAM: - A RETAILER & CUSTOMER PROSPECTIVE

Limitations of the Study: The most important constraint in this study was the Data collection as secondary data was selected for study. Secondary data means data that are already available i.e., they refer to data which is been already collected and analyzed by someone else. Time period is also a problem which is been faced as for the whole research work only 1 month is been allotted. Research has a wide scope. So it is not possible to cover it all in a short- span of time. Response biasness will also be there due to local people not aware of the Brand Geographical limitation will also be there The study is confined to organize sector of the industry.

ICFAI- Business School, Hyderabad.

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STUDY ON FACTOR AFFECTING SALES OF AMUL ICE-CREAM: - A RETAILER & CUSTOMER PROSPECTIVE

Plans for Compellation of Project:Questionnaires:Two separate questionnaires are made. One in concern to AMUL retailers and other for the customers through which responses will be analyzed in SPSS. And different research tools Such as Factor analysis, Discriminant analysis, and Cluster analysis is been done. Output:With the output from the research study recommendation will be given. Recommendation:From the recommendation either changes in strategy or implementing new strategies can be done. And a proper structured marketing as well sales and distribution strategy will be made. Marketing tools:Different marketing tools such as BCG Matrix, Porters Five force model will be used for analyzing competition and current market of the industry as a whole Proper analyze of the Ice-cream Industry in India. Amul market share and its growth potential in Indian market Collecting information from Kondapur area in also been done which will help in Finding out new market potential

ICFAI- Business School, Hyderabad.

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STUDY ON FACTOR AFFECTING SALES OF AMUL ICE-CREAM: - A RETAILER & CUSTOMER PROSPECTIVE

References:
List of Websites for understanding the business and company www.wikipedia.com www.amul.com www.amul.tv List of Books for understanding the Marketing Principles and Concepts: Principles of Marketing, A South Asian Perspective Philip Kotler, Gary Armstrong, Prafulla Y. Agnihotri, Ehsaan ul Haque The Marketing White book 2012-2013 Business world Marketing Management Global Perspective, Indian Context - V. S. Ramaswamy Business Research Method:- Neena Sondi & Deepak Chawla

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