A PROJECT REPORT ON

DEVELOPING MARKET FOR AMUL CHOCOLATES

With Special Reference To AMUL INDIA, LTD. GUJRAT UNIVERSITY OF PUNE In the partial fulfillment of the requirements for the award of MASTER IN MARKETING MANAGEMENT

SUBMITTED BY Mr. NAVNATH R.SHEDGE (2010-2012) UNDER THE GUIDANCE OF Prof. SARIKA BOTHARA

SARHAD INSTITUTE OF MANAGEMENT STUDIES KATRAJ PUNE 42

DECLARATION

I, the undersigned Mr. Navnath R.Shedge hereby declare that the project work entitled DEVELOPING MARKET FOR AMUL CHOCOLATES In AMUL INDIA, LTD. Undertaken during the period from 1st June 2011 to 15th July 2011 is the result of my own research and investigations including formal analysis of the entire project work and the same has not been previously submitted to any examination of the University of Pune or any other University.

Date: Place :Pune

Signature (Navnath R.Shedge)

ACKNOWLEDGEMENT

The making of any reports calls for contribution and co-operation from many others besides the report maker. It is the result of meticulous efforts put in minds that contribute to the report and this report is no exception. Several to eminent people at AMUL INDIA have valuable contributions to this report through their inputs, I duly acknowledge my gratitude to each one of them. This valuable project report has been completed under guidance of Mrs. RICHIE AGRAWAL (DIC Chocolates, Gujarat Cooperative Milk Marketing Federation Ltd.,PuneDepot ) I also take the opportunity to express my profound gratitude towards MR.HANUMANT R. JADHAVAR (Principal, SIMS), Prof. SARIKA BOTHARA ( HOD, MMM Dept.) for their kind support. I am thankful to all who helped me directly or indirectly for the successful completion of my project. I hope that I have been successful in my endeavor. Discrepancies, mistakes, if any are solely mine.

Date:Place:Signature

INDEX

Sr. No.

Title

Page No.

1 2 3 4 5 6 7 8 9 10 11 12 13

Executive Summary Introduction Objectives of Project Scope of Study Company Profile Product Profile SWOT Analysis Research Methodology Data Presentation And Analysis Limitations of the study Conclusion Suggestion And Recommendation Bibliography

EXECUTIVE SUMMARY

As a course curriculum of MMM, it is required to do a project and industrial training in 3rd semester. I have done my summer project in Indias most reputed FMCG company Amul (GCMMF). I feel really proud in having completed my training at Amul (GCMMF), Pune. My project covers the topic awareness, availability, acceptability and distribution of Amul Chocolate. This report begin with the introduction of Amul products followed by the introduction, literature revive (introduction to theory), research methodology, findings and discussion, awareness, availability & acceptability, appendices ,conclusion and recommendations and finally bibliography. I have also mentioned the research methodology adopted by me. The sample size of my research is 200 retailers & 250 consumers in Pune. I have given list of wholesalers and retailers visited during my project work in the annexure section. After collecting the data, I analyzed in depth by using appropriate research tools Analysis part is followed by some finding about the research. I have made a conclusion on the basis of my study and also mentioned the limitations and measures that should be adopted. Lastly I have given some suggestion in the area where Amul can improve the sale of chocolate. An attempt has been made by me to provide all relevant and important details regarding the topic to support the theoretical edifice with concrete research evidence. I hope that this project will be beneficial for Amul in every respect.

INTRODUCTION
IntroductionSales, or the activity of selling, form an integral part of commercial activity. Mastering sales is considered by many as some sort of persuading "art". On the contrary, the methodological approach of selling refers to it as a systematic process of repetitive and measurable milestones, by which a salesperson relate his offering enabling the buyer to visualize how to achieve his goal in an economic way. Selling is a practical implementation of marketing; it often forms a separate grouping in a corporate structure, employing separate specialist operatives known as salesmen (singular: salesman or salesperson). The successful questioning to understand a customers goal, the further creation of a valuable solution by communicating the necessary information that encourages a buyer to achieve his goal at an economic cost is the responsibility of the sales person or the sales engine (e.g. internet, vending machine etc). The primary function of professional sales is to generate and close leads, educate prospects, fill needs and satisfy wants of consumers appropriately, and therefore turn prospective customers into actual ones. From a marketing point of view, selling is one of the methods of promotion used by marketers. Other promotional techniques include advertising, sales promotion, publicity, and public relations. Various sales strategies exist, such as tit-for-tat which is best if ongoing dealings and interactions are expected. This insight is behind so-called consultative sales process which is used by Saturn to sell cars, as well as for some direct Business-to-Business sales. Statement of problem As there are large number of retaiers dealing with amul product the study was cundected to increases the sales of amul product effectively & to know retailers problems towards amul distributres .ths is turn anable to the company to enhance its strenght in compitition in dairy market . Hence an attempts has been made to identify the retailers feedback & satisfaction towards amul products about schems.

OBJECTIVES OF THE PROJECT

1. PRIMARY OBJECTIVE :
a. Analysis of current market for Amul chocolate through market research and sur-

vey. b. Analysis of distribution channels and APO of Amul.

c. Analysis of competitors product of Amul chocolate. d. Create awareness about the product.

2. SECONDARY OBJECTIVE
e. Help to increase the sale of Amul Chocolate in Pune Market.

SCOPE OF THE STUDY

The project was undertaken to understand various aspect regarding Developing Market for Amul chocolate in Pune city with reference to the Gujarat co-operative milk marketing federation limited, Anand. Which mainly includes Marketing Research and Survey of various Wholesalers, Local Retailers and Shopping Malls (Modern Trade)etc. The project also covers study and analysis of various competitors of Amul chocolate. It also includes study of different Distribution Channels and their importance in the success or failure of Amul chocolate. I have also carried out Promotional Activities like displays, distributing signboards, providing various schemes and free samples; wash out the market by replacing old or expired products. The geographical scope of the project work was limited to Pune . During my project I had covered following areas pune ,Hadpsaar ,kothrud, karvenagar kondwa ,fatimanagar, deccan singhad road dhayri etc. .

COMPANY PROFILE

While we may justifiably take pride in having built the largest food product business in the country, we do not pause to rest upon our laurels. In all that we do, and will do, we never forget that we face an increasingly competitive environment. In this environment, we have survived and grown on the basis of our greatest strength: co-operative culture, co-operative networking, market acumen and respect for both producer and the consumer. Amul is basically provided milk from Gujarat Cooperative Milk Marketing Federation (GCMMF) which 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. A quality control expert in Anand suggested the brand name Amul, from the Sanskrit Amoolya, 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. 25 billion in 2002). Today Amul is a symbol of many things. Of high-quality products sold at reasonable prices. Of the genesis of a vast cooperative network. Of the triumph of indigenous technology. Of the marketing savvy of a farmers' organization. And have a proven model for dairy development

B) Gujarat Cooperative Milk Marketing Federation Limited. Thirty years ago the milk producers of Gujarat had come together and decided to create their own organization to enhance the marketing capacity of the dairy cooperative movement. That is in no small part because this organization has delivered results - continuously beating competition of every type in the dairy business. This has been achieved at the least possible cost, ensuring the benefits reach both producers and consumers.
Amul was founded on a sound business model: providing quality products to consumers at an affordable price. The Pundits have described our model as "value for money" and it has been adopted by a number of companies. While imitation may be flattery, most other organizations fail to understand that "value for money" is not just about low prices - it means offering the best quality products at the most reasonable price. As a cooperative, our faith requires that Amul safeguard the

interest of both our major stakeholders - the farmers - and the consumers whose loyalty is essential to our continued success.

As Amul look forward, foresee business opportunities expanding as never before. The Indian economy is growing at a very rapid pace. Disposable income in the hands of consumers has more than kept pace. The result is that our domestic market has been expanding at a pace that occasionally surprises even the optimist. Amul now need to challenge cos distribution to reach remote markets with innovative products and services so that more and more consumers benefit from our wide and expanding range. Today, every product category sees new entrants in Amul business. Competition may be from existing companies entering new categories or from new companies. Companys experience and marketing prowess has enabled to maintain a formidable distance between our competitors and us. However, there is no room for complacency. We must not only maintain our lead, we must increase it.

Members

13 district cooperative milk producers' Union

No. of Producer Members

2.6 million

No. of Village Societies

12,792

Total Milk handling capacity

10.16 million liters per day

Milk collection (Total - 2006-07)

2.38 billion liters

Milk collection (Daily Average 2006-07)

6.5 million liters

Organisation structure
It all started in December 1946 with a group of farmers keen to free themselves from intermediaries, gain access to markets and thereby ensure maximum returns for their efforts. Based in the village of Anand, the Kaira District Milk Cooperative Union (better known as Amul) expanded exponentially. It joined hands with other milk cooperatives, and the Gujarat network now covers 2.12 million farmers, 10,411 village level milk collection centers and fourteen district level plants (unions) under the overall supervision of GCMMF. There are similar federations in other states. Right from the beginning, there was recognition that this initiative would directly benefit and transform small farmers and contribute to the development of society. To implement their vision while retaining their focus on farmers, a hierarchical network of cooperatives was developed, this today forms the robust supply chain behind GCMMFs endeavors. The vast and complex supply chain stretches from small suppliers to large fragmented markets. Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by low consumer prices supported by a low cost system.

Introducing higher value products Beginning with liquid milk, GCMMF enhanced the product mix through the progressive addition of higher value products while maintaining the desired growth in existing products. Despite competition from players such as Hindustan Lever , Nestle and Britannia , GCMMF ensures that the product mix and the sequence in which Amul introduces its products is consistent with the core philosophy of providing milk at a basic, affordable price.

The distribution network Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. All GCMMF branches engage in route scheduling and have dedicated vehicle operations. Umbrella brand The network follows an umbrella branding strategy. Amul is the common brand for most product categories produced by various unions: liquid milk, milk powders, butter, ghee, cheese, cocoa products, sweets, ice-cream and condensed milk.

Technology and e-initiatives

GCMMF's technology strategy is characterized by four distinct components: new products, process technology, and complementary assets to enhance milk production and e-commerce. Few dairies of the world have the wide variety of products produced by the GCMMF network. Village societies are encouraged through subsidies to install chilling units. Automation in processing and packaging areas is common, as is HACCP certification. Amul actively pursues developments in embryo transfer and cattle breeding in order to improve cattle quality and increases in milk yields. GCMMF was one of the first FMCG (fast-moving consumer goods) firms in India to employ Internet technologies to implement B2C commerce. Today customers can order a variety of products through the Internet and be assured of timely delivery with cash payment upon receipt. Another e-initiative underway is to provide farmers access to information relating to markets, technology and best practices in the dairy industry through net enabled kiosks in the villages. GCMMF has also implemented a Geographical Information System (GIS) at both ends of the supply channel.

Products profile

Breadspreads: Amul Butter, Amul Lite Low Fat Breadspread etc. Cheese Range: Mithaee Range (Ethnic sweets): Shrikhand, Amrakhand, Gulabjamuns etc. UHT Milk Range: Shakti, Taaza, Gold etc. Pure Ghee: Amul Pure Ghee, Sagar Pure Ghee Infant Milk Range: Milk Powders: Sweetened Condensed Milk: Fresh Milk: Curd Products: Flavoured Dahi, Lassee etc. Amul Icecreams: Brown Beverage: Milk Drink: Health Beverage:

Chocolate & Confectionery:

Amul Milk Chocolate bindaz Amul

Amul Fruit & Nut Chocolate

Amul chocozoo

Amul rejoice

Amul sugar free

Almpand bar

Amul fundoo

COMPETITIVE ANALYSIS

It would seem a simple task for a company to identify its competitors. However the rang of a companies actual and potential competitors can be much broader and a company is more likely to be hurt by emerging competitors or new technologies than by current competitors. Once a company identifies its primary competitor it must ascertain there strategies, objectives, strengths, weaknesses. Strengths and weaknesses: A company needs to gather information on each competitors strengths and weaknesses. In general, a company should monitor three variables when analyzing competitors: 1. share of market 2. Share of mind percentage of customers recall competitors name in responding to the statement, name the first company that comes to mind in this industry. 3. share of heart answer to the statement, name the company from which you would prefer to buy the product. \

PROMOTION AND ADVERTISING

Promotion includes all the tools available to the marketer for marketing communication. Marketing communication has its own promotion mix, think of it like Cake Mix, the basic ingredients are always same. However, if you vary the amounts of one of the ingredients, the final outcome is different. It is the same with promotion. You can integrate different aspects of the promotion mix to deliver unique campaign. The elements of promotion mix are: Personal selling Sales promotion Public relation Direct mail Trade fairs and exhibitions Advertising Sponsorship

Let us look at the individual components of the promotion mix in more detail:

1. Personal selling: Personal Selling is an effective way to manage personal customer relationships. The sales person acts on behalf of the organization. They tend to be well trained in the approaches and techniques of personal selling. However sales people are very expensive and should only be used where there is a genuine return on investment. For example salesmen are often used to sell cars or home improvements where the margin is high. 2. Sales promotion: Sales promotion tend to be thought of as being all promotions apart from advertising, personal selling and public relations. Each sales promotion should be carefully costed and compared with the next best alternative. 3. Public Relations (PR): Public relation is defined as the deliberate, planned and sustained effort to establish and maintain mutual understanding between an oganisation and its publics. Its relatively cheap but certainly not cheap. 4. Direct Mail: Direct mail is very highly focused upon targeting consumers based upon a database. As with all marketing, the potential consumer is defined based upon a series of attributes and similarities. Creative agencies work with marketers to design a highly focused communication in the form of mailing. The mail is sent out to the potential consumers and responses are carefully monitored. 5. Trade Firs and Exhibitions: Companies will seldom sell much at such events. The purpose is to increase awareness and to encourage trial. They offer the opportunities for companies to meet with both the trade and the consumer.

6. Advertising: Advertising is a paid for communication. It used to develop attitudes, create awareness and transmit information in order to gain a response from the target market. There are many advertising media such as news paper, magazines, journal, Television, cinema, outdoor advertising etc. 7. Sponsorship: Sponsorship is where an organization pays to be associated with a particular event, cause or image. The attributes of the event are then associated with the sponsoring organization. The elements of the promotional mix are then integrated to form a unique, but coherent campaign.

SWOT Analysis

The overall evaluation of a companys strengths, weaknesses, opportunities and threats is call SWOT analysis it involves monitoring the external and internal marketing environment. A business unit has to monitor key macro environment forces (demographic, economic, natural, technological, political- legal, socio-cultural) and significant micro environment actors (customers, competitors, suppliers, distributors, dealer ) The marketer should track trends and developments in the market to identify the associated opportunities and treats. Opportunities can take many forms such as : Converging industry trends and introduce products that are new to market. Make a buying process more convenient or efficient. Customize a product and services. Introduce new capability. Offer a product at a much lower price.

THE DISTRIBUTION CHANNELS: Frequently there may be a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the allimportant end-user.

A number of alternate 'channels' of distribution may be available:

Selling direct, such as via mail order, Internet and telephone sales Agent, who typically sells direct on behalf of the producer Distributor (also called wholesaler), who sells to retailers Retailer (also called dealer or reseller), who sells to end customers Advertisement typically used for consumption goods Distribution channels may not be restricted to physical products alone.

They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc. Channel members: Distribution channels can thus have a number of levels. Kotler defined the simplest level, which of direct contact with no intermediaries involved, as the 'zero-level' channel.next level, the 'one-level' channel, features just one intermediary; in consumer goods a retailer, for industrial goods a distributor. In small markets (such as small countries) it is practical to reach the whole market using just one- and zero-level channels. In large markets (such as larger countries) a second level, a wholesaler for example, is now mainly used to extend distribution to the large number of small, neighborhood retailers. In Japan the chain of distribution is often complex and further levels are used, even for the simplest of consumer goods. In Bangladesh Telecom Operators are using different Chains of Distribution, especially 'second level'.In IT and Telecom industry levels are named "tiers". A one tier channel means that vendors IT product manufacturers (or software publishers) work directly with the dealers. A one tier / two tier channel means that vendors work directly with

dealers and with distributors who sell to dealers. But the most important is the distributor or wholesaler.

Research Methodology

Research in common parlance refers to search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. My topic is Developing a Market For Amul Chocolate. For that purpose I have collected data from various sources: A. PRIMARY DATA: As the project is research based the large data is collected through visiting and interviewing various Wholesalers, Retailers in the area mentioned above. I have prepared the questionnaire to collect the information about Amul company and its products (Chocolate). I got following information: 1. Product quality 2. Customers tastes, likes and preferences 3. Service of the company 4. Distribution channels 5. Competitors strength and market policies. 6. Profit margins earned and various schemes. 7. Current trends and scenario of chocolate market. I also had discussions with my internal guide Mrs. Sarika Bothara from whom I got information about the various marketing concepts regarding my project.

I also had valuable guidance from my external guide Mrs. Richie Agrawal. I learned many marketing techniques and policies, which helped me in collecting the data and convince the interviewer.

B. SECONDARY DATA: I also collected data from other resources like Books, Internet etc. Mainly I have used following websites: E.g.: www.google.com , www.wikipedia.com, www.amul.com This helped me to collect information about the company and related with my topic THEORETICAL INTRODUCTION TO THE DEVELOPING THE MARKET: Developing the market covers the following aspects of Marketing. (a) Market research and survey. (b) SWOT analysis of the product. (c) Distribution channel study. (d) Advertising and Sales Promotion. (e) Competitive Analysis. Let us study the fundamental concepts regarding the above topics to understand the project in better way.

MARKETING RESEARCH
Marketing research, or market research, is a form of business research and is generally divided into two categories: consumer market research and business-to-business (B2B) market research, which was previously known as industrial marketing research. MARKETING RESEARCH

Consumer market research

Business-to-business research

(B2B)

market

Consumer marketing research studies the buying habits of individual people while business-to-business marketing research investigates the markets for products sold by one business to another. Consumer market research is a form of applied sociology that concentrates on understanding the behaviors, whims and preferences, of consumers in a marketbased economy, and aims to understand the effects and comparative success of marketing campaigns. The field of consumer marketing research as a statistical science was pioneered by Arthur Nielsen with the founding of the ACNielsen Company in 1923. Thus marketing research is the systematic and objective identification, collection, analysis, and dissemination of information for the purpose of assisting management in decision making related to the identification and solution of problems and opportunities in marketing.

Marketing research characteristics First, marketing research is systematic: Thus systematic planning is required at all the stages of the marketing research process. The procedures followed at each stage are methodologically sound, well documented, and, as much as possible, planned in advance. Marketing research uses the scientific method in that data are collected and analyzed to test prior notions or hypotheses. Marketing research is objective. It attempts to provide accurate information that reflects a true state of affairs. It should be conducted impartially. While research is always influenced by the researcher's research philosophy, it should be free from the personal or political biases of the researcher or the management. Research which is motivated by personal or political gain involves a breach of professional standards. Such research is deliberately biased so as to result in predetermined findings. The motto of every researcher should be, "Find it and tell it like it is."

Marketing research involves the identification, collection, analysis, and dissemination of information. Each phase of this process is important. We identify or define the marketing research problem or opportunity and then determine what information is needed to investigate it., and inferences are drawn.

Finally, the findings, implications and recommendations are provided in a format that allows the information to be used for management decision making and to be acted upon directly. It should be emphasized that marketing research is conducted to assist management in decision making and is not: a means or an end in itself. The next section elaborates on this definition by classifying different types of marketing research.

Classification of marketing research:

Organizations engage in marketing research for two reasons: (1) to identify and (2) solve marketing problems. This distinction serves as a basis for classifying marketing research into problem identification research and problem solving research. Problem identification research is undertaken to help identify problems which are, perhaps, not apparent on the surface and yet exist or are likely to arise in the future. Examples of problem identification research include market potential, market share, brand or company image, market characteristics, sales analysis and business trends research. Research of this type provides information about the marketing environment and helps diagnose a problem. For example, a declining market potential indicates that the firm is likely to have a problem achieving its growth targets. The recognition of economic, social, or cultural trends, such as changes in consumer behavior, may point to underlying problems or opportunities.

Once a problem or opportunity has been identified, problem solving research is undertaken to arrive at a solution. The findings of problem solving research are used in making decisions which will solve specific marketing problems. More than two-thirds of companies conduct problem solving research.

Standardized services are research studies conducted for different client firms but in a standard way. For example, procedures for measuring advertising effectiveness have been standardized so that the results can be compared across studies and evaluative norms can be established. Customized services offer a wide variety of marketing research services customized to suit a client's specific needs. Each marketing research project is treated uniquely. Limited-service suppliers specialize in one or a few phases of the marketing research project. Services offered by such suppliers are classified as field services, coding and data entry, data analysis, analytical services, and branded products. Field services collect data through mail,

personal, or telephone interviewing, and firms that specialize in interviewing are called field service organizations. Some organizations maintain extensive interviewing facilities across the country for interviewing shoppers in malls. Coding and data entry services include editing completed questionnaires, developing a coding scheme, and transcribing the data on to diskettes or magnetic tapes for input into the computer. Analytical services include designing and pre-testing questionnaires, determining the best means of collecting data, designing sampling plans, and other aspects of the research design. Some complex marketing research projects require knowledge of sophisticated procedures, including specialized experimental designs, and analytical techniques such as conjoint analysis and multidimensional scaling. This kind of expertise can be obtained from firms and consultants specializing in analytical services. Data analysis services are offered by firms, also known as tab houses, which specialize in computer analysis of quantitative data such as those obtained in large surveys. Initially most data analysis firms supplied only tabulations (frequency counts) and cross tabulations (frequency counts that describe two or more variables simultaneously). With the proliferation of software, many firms now have the capability to analyze their own data, but, data analysis firms are still in demand. Branded marketing research products and services are specialized data collection and analysis procedures developed to address specific types of marketing research problems. These procedures are patented, given brand names, and marketed like any other branded product.

TYPES OF MARKETING RESEARCH:

Marketing research techniques come in many forms, including:

Ad Tracking periodic or continuous in-market research to monitor a brands performance using measures such as brand awareness, brand preference, and product usage.

Advertising Research used to predict copy testing or track the efficacy of advertisements for any medium, measured by the ads ability to get attention, communicate the message, build the brands image, and motivate the consumer to purchase the product or service.

Brand equity research - how favorably do consumers view the brand? Brand name testing - what do consumers feel about the names of the products? Commercial eye tracking research - examine advertisements, package designs, websites, etc by analyzing visual behavior of the consumer

Concept testing - to test the acceptance of a concept by target consumers Coolhunting - to make observations and predictions in changes of new or existing cultural trends in areas such as fashion, music, films, television, youth culture and lifestyle

Buyer decision processes research - to determine what motivates people to buy and what decision-making process they use

Copy testing predicts in-market performance of an ad before it airs by analyzing audience levels of attention, brand linkage, motivation, entertainment, acommunication, as well as breaking down the ads flow of attention and flow of emotion.

Customer satisfaction research - quantitative or qualitative studies that yields an understanding of a customer's of satisfaction with a transaction

Demand estimation - to determine the approximate level of demand for the product Distribution channel audits - to assess distributors and retailers attitudes toward a product, brand, or company

Internet strategic intelligence - searching for customer opinions in the Internet: chats, forums, web pages, blogs... where people express freely about their experiences with products, becoming strong "opinion formers"

Marketing effectiveness and analytics - Building models and measuring results to determine the effectiveness of individual marketing activities.

Mystery Consumer or Mystery shopping - An employee or representative of the market research firm anonymously contacts a salesperson and indicates he or she is shopping for a product. The shopper then records the entire experience. This method is often used for quality control or for researching competitors' products.

Positioning research - how does the target market see the brand relative to competitors? - what does the brand stand for?

Price elasticity testing - to determine how sensitive customers are to price changes Sales forecasting - to determine the expected level of sales given the level of demand. With respect to other factors like Advertising expenditure, sales promotion etc.

Segmentation research - to determine the demographic, psychographic, and behavioural characteristics of potential buyers

Online panel - a group of individual who accepted to respond to marketing research online

Store audit - to measure the sales of a product or product line at a statistically selected store sample in order to determine market share, or to determine whether a retail store provides adequate service

Test marketing - a small-scale product launch used to determine the likely acceptance of the product when it is introduced into a wider market

Viral Marketing Research - refers to marketing research designed to estimate the probability that specific communications will be transmitted throughout an individuals Social Network. All of these forms of marketing research can be classified as either

problem-identification research or as problem-solving research. A company collects primary research by gathering original data. Secondary research is conducted on data published previously and usually by someone else. Secondary research costs far less than primary research, but seldom comes in a form that exactly meets the needs of the researcher. A similar distinction exists between exploratory research and conclusive research. Exploratory research provides insights into and comprehension of an issue or situation. It should draw definitive conclusions only with extreme caution. Conclusive research draws conclusions: the results of the study can be generalized to the whole population.

Exploratory research is conducted to explore a problem to get some basic idea about the solution at the preliminary stages of research. It may serve as the input to conclusive research. Exploratory research information is collected by focus group interviews, reviewing literature or books, discussing with experts, etc. This is unstructured and qualitative in nature. If a secondary source of data is unable to serve the purpose, a convenience sample of small size can be collected.

Conclusive research is conducted to draw some conclusion about the problem. It is essentially, structured and quantitative research, and the output of this research is the input to management information systems (MIS). Exploratory research is also conducted to simplify the findings of the conclusive or descriptive research, if the findings are very hard to interpret for the marketing manager. Marketing research methods: Methodologically, marketing research uses the following types of research designs: Based on questioning:

Qualitative marketing research - generally used for exploratory purposes - small number of respondents - not generalizable to the whole population - statistical significance and confidence not calculated - examples include focus groups, in-depth interviews, and projective techniques

Quantitative marketing research - generally used to draw conclusions - tests a specific hypothesis - uses random sampling techniques so as to infer from the sample to the population - involves a large number of respondents - examples include surveys and questionnaires. Techniques include choice modeling, maximum difference preference scaling, and covariance analysis.

Based on observations:

Ethnographic studies -, by nature qualitative, the researcher observes social phenomena in their natural setting - observations can occur cross-sectionally (observations made at one time) or longitudinally (observations occur over several time-periods) - examples

include product-use analysis and computer cookie traces. See also Ethnography and Observational techniques.

Experimental techniques -, by nature quantitative, the researcher creates a quasiartificial environment to try to control spurious factors, then manipulates at least one of the variables - examples include purchase laboratories and test markets

Researchers often use more than one research design. They may start with secondary research to get background information, then conduct a focus group (qualitative research design) to explore the issues. Finally they might do a full nation-wide survey (quantitative research design) in order to devise specific recommendations for the client. Business to business market research Business to business (B2B) research is inevitably more complicated than consumer research. The researchers need to know what type of multi-faceted approach will answer the objectives, since seldom is it possible to find the answers using just one method. Finding the right respondents is crucial in B2B research since they are often busy, and may not want to participate. Encouraging them to open up is yet another skill required of the B2B researcher. Last, but not least, most business research leads to strategic decisions and this means that the business researcher must have expertise in developing strategies that are strongly rooted in the research findings and acceptable to the client.

There are four key factors that make B2B market research special and different to consumer markets:

The decision making unit is far more complex in B2B markets than in consumer markets B2B products and their applications are more complex than consumer products

B2B marketers address a much smaller number of customers who are very much larger in their consumption of products than is the case in consumer markets. Personal relationships are of critical importance in B2B markets.

MARKETING RESEARCH PROCESS:

Define the problem and research objective

Develop the research plan

Collect the information

Analyze the information

Present the findings

Make the decision

1) Define the problem: It is important not to define the problem too broadly or too narrowly for the marketing research otherwise researcher may end with finding only the symptoms of the problem not what the problem is. 2) Develop research plan: Designing the research plan calls for decision on the data sources, research approaches, research instrument, sampling plan and contact methods.

Data sources It may be primary data, secondary data or both. Research approaches Primary data can be collected in five main ways: through observation, focus groups, surveys, behavioral data, experiments.

Research instrument-

Marketing researcher have a choice of three

main instruments in collecting primary data

Questionnaires Qualitative majors shadowing i.e. observing people , behavior mapping, interviews etc.

Mechanical devices

Sampling plan- It includes three decision : who is to be surveyed ? Sample size , Sampling procedure.

Contact methods- Mail Questionnaire, telephone interview, personal interview online interview .

3) Collect the information: This phase is generally most expensive and the most prone to error.

4) Analyze the information: this is the process of extracting findings from the collected data by using various statistical techniques, tables, charts etc. 5) Present the findings: the researcher should present findings that are relevant to the marketing decision. 6) Make the decision: if the marketer is predisposed to launching the product, the findings support there inclination.

Data Presentation, Analysis and Interpretation:

Chocolate Market in India Facts & Figures: 1. Chocolate market is estimated to be around 1500 cr growing at 18-20% p.a 2. Cadbury is the market leader with 72% market share 4. Over 70 per cent of the consumption takes place in the urban markets 5. Margins in the chocolate industry range between 10 and 20 per cent depending on the price point at which the product is placed 6. Chocolate sales have risen by 15% in 2007 to reach 36000 tonnes according to one estimate. Another estimate puts the figure at 25000 tonnes 8. As per Euromonitor study, Indian candy market is currently valued at around USD 664 million, with about 70%, or USD 461 million, in sugar confectionery and the remaining 30%, or USD 203 million, in chocolate confectionery 9. Entire Celebrations range market share is 6.5% 10. The global chocolate market is worth $75 billion annually

Companies:

1. The chocolate market in India has only three big players, Cadbury, Nestle and Amul 2. New brands such as Snickers, Mars, Sweet World, Candico and Chocolatiers are present in several malls 3. The largest target segment for Cadbury is youth 4. Delhi-based Chocolatiers, started with a small shop in south Delhis Chittaranjan Park and has now ventured into malls and multiplexes in NCR ,Pune and Bangalore, with focus on high-end or designer chocolates, a niche market of their own 5. Candico India is aiming for 400 locations across malls and multiplexes in the country by 2010.

Companies & Brands 1. Cadbury - Cadbury, 5 Star, Bytes (chocolate snack), Celebration, Dairy Milk, Gems, Perk 2. Nestle - Bar One, Kit Kat, Milkybar, Munch, Nestle 3. Amul - Amul (Chocozoo, Chocomines, Fruit & nut, Almondbar) 4. Dairy Milk is the market leader 5. 5 Star (heritage brand which came to India in 1969) has a market share of over 14

Chocolate Market in India

Chocolate Market Share of Amul

Others Amul 6% 10% Nestle 12%

Catbury Nestle Amul Others

Catbury 72%

Consumer Trends

Mithai- the traditional Indian sweats is getting substituted by chocolates among

upwardly mobile Indians. Instead of buying sweats on Raksha Bandhan, sisters prefer offering chocolates to their brothers. The range and variety of chocolates available in malls seems to be growing day by day,

which leads to lot of impulse sales for chocolate companies

Chocolates which use to be unaffordable, is now considered mid-priced. Convenience

over Mithai in terms of packaging and shelf life in making both middle class and ric2h Indians opt for chocolates Designer chocolates have become status symbols. They are linked to ones aspiration

and lifestyle and malls are perfect points of sale as people usually are happy and gay at these destinations

Cadbury initial communication for Celebrations was concentrated on occasions like

Diwali and Rakshabandhan. Over the last seven to eight years, the brand emerged as a good gift proposition for occasions and enabled people to come closer. Research done by Cadbury suggested that they should extend the plank of occasion-based gifting to social gifting i.e. all-year-round gifting options.

Consumers can choose from wide range of chocolates, which initially was limited to

Milk chocolates like DairyMilk and MilkyBar. which has opened new windows for consumers.

In past, consumers had negligible inclination for dark chocolates. But now we have seen

a change in the Indian palate.

Advertisement Trends (AdEx - division of TAM Media Research)

1. Chocolate advertising rose by 30 per cent during January-November 2007 compared to January-November 2006 2. Maximum chocolate advertising was during Raksha Bandhan across 2005 and 2006 and January-November 20 3. As expected chocolate advertising skewed towards kids channels and regional GEC took the second position 4. Cadbury India Ltd rules chocolate advertising on television 5. 17 per cent more advertising during third quarter 2007 (Raksha Bandhan festival) compared to first quarter 2007 6. Regional GEC took the second place with a 21 per cent share ad volumes of chocolates, followed by Hindi movie with 13 per cent share during January-November 2007 7. Among regional GEC, maximum advertising of chocolates was on Malayalam and Bengali channels 8. Cadbury India Ltd was way ahead of its peers with 66 per cent share followed by Nestle India Ltd and Parle Products Pvt Ltd during January-November 2007 9. During January-November 2007 the number of new chocolate brands advertised decreased to seven from 12 during 2006 10. Nestle Munch Pop Chocolate led the chart of new chocolate brands advertised on television during January-November 2007

Some BTL Activities 1. Cadbury India has tied up with leading coffee chain Caf Coffee Day for direct sampling of the product in top cities

External Environment 1. The prices of cocoa and milk, the chief ingredients used in chocolates, have gone up by 50 per cent, while the price of sugar, another important raw material, has come down. The overall input costs have gone up by 20 per cent. If the prices of these commodities keep increasing, companies will be forced to increase the prices. India imports most of its cocoa requirements. The prices of cocoa have risen globally due to unavailability of the commodity 2. US-based chocolate-maker Hersheys is mulling a foray into the Indian chocolate market through its joint venture with Godrej

Amuls marketing Strategy for chocolate: Dairy major Amul is reworking its strategy in the chocolate category to push its chocolate product sales. Although, the company has maintained a chocolate portfolio for more than 20 years, the dairy products major never posed a threat to market leaders such as Cadbury and Nestle. Now, with a new product portfolio, the home-grown foods giant is planning to create a space for itself. In the chocolate business, our strategy is to identify the market gaps and try and fill them. We have done this in the past with our sugar free and Choco Zoo, both of which have been appreciated by the consumers. We are concentrating on the niche segment as far as the chocolate range is concerned, says R S Sodhi, general manager, marketing, Amul. Company executives say that by occupying niche spots such as the shapebased chocolates segment, Amul can dominate the segment. In the overall category, Amul has a market share of roughly 10 per cent compared with 70 per cent share of the market leader, Cadbury. The growth in Amuls chocolate sales has remained stagnant over the years. Industry experts say that since the company is present in more than one category, some of its categories have performed better than others. In Amuls case, the bulk of its sales come from its dairy products such as milk packets. The company is trying to push its chocolate sales through its extensive dairy distribution network, say sources. It is giving discount offers for its recently launched sugar-free chocolates, which the distributors said was well received by the market. The company has also placed its chocolate products at lesser price points compared with its competitors. Other chocolate brands by Amul include Bindaaz, Fundoo, Almond bar, Milk chocolate and Fruit-n-nut. Yet chocolate has never been a major thrust area for the company. It still remains one of its non-core categories. Its chocolate drinks have received better response than its chocolates, say company executives.

DATA INTERPRETATION:

It can be clearly seen that the wholesalers and retailers are not satisfied with the distributors service. They have complaints with distributors such as supply of outdate stock, no replacement policy, no proper visits to shops. Awareness of Amul Chocolate:

Aware 195

Unaware 5

INTERPRETATION: The above statistics clearly suggest that almost 98% of Wholesalers and Retailers are aware of Amul Chocolates. Which will make marketing drive for Amul Chocolate much easier in future at the time expansion.

Awareness of Wholesalers and Retailers

200 150 100 50 0 Aware Unaware

Response

2.

Most demanded Brand of Amul Chocolate:?

Choco zoo Milk Chocolate Fruit & Nut Bindas

50 35 25 18

Fundoo Sugar Free Almond Bar Rejoice

17 20 20 15

sale

50 45 40 35 30 25 20 15 10 5 0

sale

Chz

F&N

Fun
Brands

Al Bar

INTERPRETATION: Statistics clearly shows that Choco-Zoo is much demanded product followed by Milk Chocolate and others.

CONSUMER ANALYSIS

Total number of Respondent (Interviewed) = 250 NUMBER OF RESPONDENT LIKE TO EAT CHOCOLATE: Respondents Eat Chocolate 235

Respondents Don't Eat 15

Respondents eats chocolate

Dont Eats

6%
Eats Dont Eats

Eats 94%

INTERPRETATION: Almost 94% people eat chocolates which indicates future potential market for Amul Chocolate.

PEOPLE AWARE OF AMUL CHOCOLATES: Respondents Eat Amul Chocolate 65 Respondents Don't Eat Amul Chocolate 185

Eats Dont Eats

Respondents Eat Amul Chocolate

Eats 26%

Dont Eats 74%

INTERPRETATION: Only the 26% People Eats or have eaten Amul Chocolate at least once in while, indicates poor response of people to Amul and provides more scope for improvement.

FAVORITE CHOCOLATE OF BRAND: Amul 13 Cadbury 184 Nestle 48 Others 5 Total 250

Response
19% 2% 5%

Amul Catbury Nestle Others

74%

INTERPRETATION: Statistics clearly shows the market leadership of Cadbury.

Weather Amul Chocolates are easily available in your locality? Yes 154 No 50 No Idea 46 Total 250

Availability of Amul Chocolate Yes No No Idea

18%

20%

62%

INTERPRETATION: This shows the ability of distribution channels to provide accessibility to Amul chocolate.

Number of consumer have Eaten Amul Chocolate and liked the Taste: Eaten Liked 80 Disliked 20 250 250 Don't Eaten Total

100 80 60 40 20 0 Eaten Not Eaten Disliked Liked

INTERPRETATION: Out of 100 people eaten the chocolate 80 people liked the taste of Amul Chocolate, Which shows that product has good quality and people will buy it one the more exposure and promotion is done.

Following is format of questionnaire used for survey of consumers:

1. I am:

Male

Female

2. My age group is:

Under 10

11-30

31-50

51 & Above

3. Dislike -- even hate -- chocolate Yes, I hate chocolate and never eat it in any form. Sometimes I have some, but not often. No, I love chocolate and like to try various form.

4. Please select all price categories of chocolates you buy. I often buy Hershey, Nestle, Amul etc. chocolate bars Individually wrapped small pieces under Rs. 5/Individually wrapped small pieces over Rs. 5/5. My favorite ways to enjoy chocolate are: Pure chocolate bars Cookies Peanut bars Other: Cakes Cocoa Fancy candies

6. I usually prefer:

Imported premium brands Domestic premium brands Moderately priced brands

7. Of all the premium brands available, imported and domestic, I prefer: Amul Nestley Mars Chocolatiers Snicker Candico Others Cadbury

c. Sampling: To collect the primary data for the study stratified random sampling method was use to select respondent i.e. wholesalers and retailers who were using Amul chocolates for sales. From each division 20 to 25 numbers of wholesalers and retailers where selected randomly as samples for collecting data. (Major selling outlet selected from each area).

e. Sample size: 200 wholesalers and retailers in Pune (west). And analysis of different malls in Pune (west).(Modern trade)

Anlysis of data collected

Wholesalers Retailers opinion about distributors service Distribution is one of the major factors for marketing of any brand of product. Distribution are the important middlemen in chain of distribution and one of Ps of marketing i.e. place is moreover depends on distribution. So, Wholesalers and retailers opinion Sr. No. Option No. of has been taken Percentage about distributors service of Amul Chocolate. Retailers and Wholesaler 1 Poor 100 50%

Average

70

35%

Good

25

12.5%

Excellent

2.5%

Total

200

100%

100 80 60 40 20 % of retailers & wholesalers 0 Excellent Good Average Poor

INTERPRETATION: It can be clearly seen that the wholesalers and retailers are not satisfied with the distributors service. They have complaints with distributors such as supply of outdate stock, no replacement policy, no proper visits to shops. Awareness of Amul Chocolate:

Aware 195

Unaware 5

INTERPRETATION: The above statistics clearly suggest that almost 98% of Wholesalers and Retailers are aware of Amul Chocolates. Which will make marketing drive for Amul Chocolate much easier in future at the time expansion.

Awareness of Wholesalers and Retailers

200 150 100 50 0 Response Aware Unaware

Most demanded Brand of Amul Chocolate: Choco zoo Milk Chocolate Fruit & Nut Bindas
50 40 30 sale 20 10 0 Ch-z M Ch F&N Bin Fun S Fr Al Bar Rej sale

50 35 25 18

Fundoo Sugar Free Almond Bar Rejoice

17 20 20 15

Brands

INTERPRETATION: Statistics clearly shows that Choco-Zoo is much demanded product followed by Milk Chocolate and others.

CONSUMER ANALYSIS

Total number of Respondent (Interviewed) = 250 NUMBER OF RESPONDENT LIKE TO EAT CHOCOLATE: Respondents Eat Chocolate 235

Respondents Don't Eat 15

Respondents eats chocolate

Dont Eats

6%
Eats Dont Eats

Eats 94%

INTERPRETATION: Almost 94% people eat chocolates which indicates future potential market for Amul Chocolate.

PEOPLE AWARE OF AMUL CHOCOLATES: Respondents Eat Amul Chocolate 65 Respondents Don't Eat Amul Chocolate 185

Eats Dont Eats

Respondents Eat Amul Chocolate

Eats 26%

Dont Eats 74%

INTERPRETATION: Only the 26% People Eats or have eaten Amul Chocolate at least once in while, indicates poor response of people to Amul and provides more scope for improvement.

FAVORITE CHOCOLATE OF BRAND: Amul 13 Cadbury 184 Nestle 48 Others 5 Total 250

Response
19% 2% 5%

Amul Catbury Nestle Others

74%

INTERPRETATION: Statistics clearly shows the market leadership of Cadbury.

Weather Amul Chocolates are easily available in your locality? Yes 154 No 50 No Idea 46 Total 250

Availability of Amul Chocolate Yes No No Idea

18%

20%

62%

INTERPRETATION: This shows the ability of distribution channels to provide accessibility to Amul chocolate.

Number of consumer have Eaten Amul Chocolate and liked the Taste: Eaten Liked 80 Disliked 20 250 250 Don't Eaten Total

100 80 60 40 20 0 Eaten Not Eaten Disliked Liked

INTERPRETATION: Out of 100 people eaten the chocolate 80 people liked the taste of Amul Chocolate, Which shows that product has good quality and people will buy it one the more exposure and promotion is done.

FINDING
1. Statistics clearly shows that Choco-Zoo is much demanded product followed by Milk Chocolate and others. 2. Almost 94% people eat chocolates which indicates future potential market for Amul Chocolate. 3. Only the 26% People Eats or have eaten Amul Chocolate at least once in while, indicates poor response of people to Amul and provides more scope for improvement. 4. This shows the ability of distribution channels to provide accessibility to Am Out of 100 people eaten the chocolate 80 people liked the taste of Amul Chocolate, Which shows that product has good quality and people will buy it one the more exposure and promotion is done. amul chocolate.

Limitations of the study:-

1. Total coverage of the study is limited to the some retailers who saling of GCMMF ltd (amul) in Pune..

2. Sample size of the study is restricted to 300 retailers only.

3. Most of the respondents hesitate to give information but how ever an attempt is made to collect the data systematically.

4. The quality of the data collected may be affected by reluctant nature of respondents to respond clearly to some questions.

5. Time is the one constraint of the survey.

6. The study limited to retailers only not to customer.

7. The area given for the survey was limited only to kothrud ,poud rd, Hadapsar, Sinhgad rd, Fatima Nagar

CONCLUSION

Amul provides good service to its retailer in some area and have good promotion program, awareness and accessibility of Amul chocolate and especillay in high traffic area but in low traffic area there is need of improvement. The major problem as far as Pune concerned with high competition and consumer loyalty towards competitors. Amul chocolate have good brand name and image in the market. There is need of proper concentration on marketing strategy specially on promotion program, delivery of the product, and improve and maintain the quality of the product. Company should have to increase the accessibility of the product. So, to attract more customer, Amul should try to focus on marketing program. Amul should implement and amend marketing strategy as soon as possible because nestle and Cadbury also introducing new flavor and offering consumer and retailer.

SUGGESTION AND RECOMMENDATION

I did Retailer, Wholesaler and consumer survey to know the opinion and awareness of Amul chocolate in Pune market. I got many ideas from market. I got many suggestions from Retailer, Wholesaler and consumer.

1. There is a need of advertising and sales promotion not only in Pune market but also

all over India to create awareness about Amul chocolate among consumer as well as retailer. Company can increase awareness level of products through print media and electronic media.

2. Proper placement of Amul chocolate in retail outlet. company can use display box,dispensor.

3. Competitors of chocolate (Nestle, Cadbury) are better in distribution services on

time. Amul should improve the timely availabiity of the Amul chocolate to all of its retailer and consumer.

4. Amul can increase the availability and accessibility of Amul chocolate in market through proper distribution of the product.

5. Amul should provide proper replacement policy to Retailer and Wholesalers.

6. There should be more offers, schemes, promotion drives on the occasion of festi-

vals as the competitor (Catbury- Rakshabandhan, Diwali) does, to attract the customer and create emotional attachment.

7. Company can give high margin to Retailers to increase the availability of Amul

chocolate.

8. Amul can improve and differentiate the taste and quality of the chocolate to attract

the first time users and switching consumers.

9. Company can give some offer on lower selling products.

10. Proper packaging of product.

11. Consistent visits of salesmen to retail outlet to increase the relations with Whole-

salers and Retailers.

12. Amul have to increase product line and different flavors, with different price range

in chocolate. For e.g. rs. 1 or 2 like Cadbury done to increase repetitive buying of the product. 13. Amul should provide other facilities to Retailers to attract and retain relationship. E.g. provide dispensers, refrigerators etc. for chocolate also as the competitor (Cadbury) dose. It also helps in publicity of product.

BIBLIOGRAPHY

BOOK NAME

AUTHOR

1. RESERCH METHODOLOGY

C.B.KOTHARI

2.PROJECT

P.CHANDRA

WWW.GOOGLE.COM

WWW.AMUL.COM

Questionnaire
Name: ----------------------------------------------------------------------------------------Add: -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Ph.no.--------------------------------- Email id.--------------------------------------------

Q: who is your distributor ------------------------------------------Q: Payment mode cash ------------------------- credit -------------

Q: Which product of Amul company do you sell ------------------------Q: Are you aware of Amul Chocolates? Q: Which brands Yes you No remember of Amul

chocolates---------------------------------------------------------------------------------------------------------------------------------Q: Chocolate sold more:-------------------------------------------------------------------Q: Product catergory : milk product Ghee Q: What is your monthly sell of Amul product Butter chocolates

Sell in amount ----------------- Sell in quantity ------------------------Q: Payment terms: cash Credit Q: Are u satisfied with your distributors services? Yes No

Q: Are you satisfied with Amul companys sales & services policies. Yes No

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