LOYOLA INSTITUTE OF BUSINESS

ADMINISTRATION
CHENNAI-600034

MINI PROJECT REPORT ON MARKETING

STRATEGIES FOR AMUL CHOCOLATES

SUBMITTED BY
RAMYA.A (EMSM15079)

MAVERIC BATCH-12(TNFA)
CHAPTER 1
EXECUTIVE SUMMARY:

The Rs 2,500-crore Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), or

Amul. Amul began the dairy cooperative movement in India and formed an apex cooperative
organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which is jointly
owned by some 2.2 million milk producers in Gujarat, India. Now, not only had the milk
collection and the number of co-operative members increased but Amul were also giving a stiff
challenge to the multinationals.
Chocolate consumption in India compared to other countries is extremely low. Per capita
consumption is around 160gms in the urban areas, compared to 8-10 kg in the developed
countries. In rural areas, it is even lower. Chocolates in India are consumed as indulgence and
not as a snack food.
The main objective is to know the market position of Amul chocolates and to know strategies
of their competitors. Currently Amul is having five variants under his umbrella brand that are
Pure Milk Chocolate, Fruits and Nuts, Fundoo, Bindaaz and Almondbar, In an attempt to boost
sales, the company has launched three new chocolates in Market under the brands Fundoo,
Bindaaz and Almond Bar. While the first two have been priced point at Rs 10 for a 30 gm stick,
Almond Bar carries a price tag of Rs 10 for a 35 gm chocolate, Fundoo is available in Rs 5 price
point also. This is one of the shortcomings as Cadbury have price points from Rs 5 to 50 ranges.
Amul also have very few variants as comparison to Cadbury India. The company's festival
season pack "Rejoice" now comes with six chocolates in the city up during the festive season last
year.

After conducting survey of Customers, I analyzed sale of Amul chocolates are not quite good
in market as in front of it Cadbury is one of the biggest competitor more over Amul doesnt
provide any kind of services like Dispensers, Glass top fridges and Replacement facilities for
their chocolates as their competitor are providing to their Retailers. Another competitor in this
field is NESTLE.
The problems that these Dairy chocolate (Amul) giants faced were in the way their chocolates
would be displayed in urban, premium and super markets. The chocolates were kept without
bottlers and dispensers and without the proper cooling equipment the chocolates in almost all the
places would melt since they would get heated at 40 C and would lose its taste. Thus the superior
product they would aim to tantalize the market with, would not work with bad pieces and
melting disadvantages by only providing dispensers but special types of table top coolers as
Cadbury preserve its product even in the remotest of rural outlets and create brand visibility
through the colorful display options.
These coolers today help in sales generation and brand visibility not ignoring efficient cooling
that protects and preserves the real taste of Cadbury' s chocolates in a very cost effective manner,
Amul should not overlook this fact.
In customer segments Childrens and college student showed most tempting towards
chocolates. Most of the Consumers were not satisfied as they want improvement in present Taste
of chocolate and mostly satisfied consumers showed positive allure towards Pure Milk chocolate.
Survey also revealed that price is not the influence factor for chocolate consumption but its
Companys Brand name and taste of chocolate which influence them most. Presently there is no
schemes for Customers from Amul, and as children and teenagers are their main target
customers, they are most attracted by the schemes available like Cadbury is offering Tennis Ball
with pack of Heroes and Perk of Rs 40. With sum up of all of these reasons customers are not
satisfied with Amul Chocolates.
Amul is getting ready to challenge Cadbury in the moulded chocolate market. The cooperative, which has been lying low for a while with its generic chocolate variants such as Fruit

& Nut and Milk, now intends segmenting its chocolates, catering to different age-groups and
categories that are likely to consume its brand. Encouraged by the rising numbers, GCMMF has
drawn up plans to make its chocolate business a separate division of the company.

CHAPTER 2
MAIN OBJECTIVE OF THE MINI PROJECT:
The main objective of this mini project is to know the market potentials and awareness about
new variants of Amul chocolate.
Other objectives are
To find the market share of Amul in chocolate segment
To know Customers perception towards Amul chocolate.
To make comparative study of different variants of chocolates.
To find out the potential market mainly for new variants (like Fundoo, Bindaaz).
To give proper suggestions or recommendation the company so that can overcome from
their weakness and increase their sales

CHAPTER 3
PROFILE OF THE ORGANISATION:

Type

Cooperative

Industry

Dairy/FMCG

Founded

1946

Headquarters

Anand, Gujarat, India

Key people

Chairman, Gujarat Co-operative Milk Marketing Federation Ltd.

milk powders, milk, butter, ghee, cheese, dahi, yoghurt, buttermilk,

(GCMMF)
Products

chocolate, ice cream, cream, shirkhand, paneer, gulab jamuns, flavoured milk, basundi and
others.
Revenue

US$3.4 billion(2014-2015)

No. Of employees

750 employees of Marketing Arm. However, real pool consist of 3.6

million milk producer members.

Slogan

The Taste of India

Website

www.amul.com

PROFILE OF THE PRODUCT:

AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, and
Chocolate mass

CHOCOLATES: MAJOR TYPES & BRANDS

Types
Moulded chocolates

Brand
Dairy Milk, Truffle, Amul Milk Chocolate,
Nestle Premium, Nestle Milky Bar, Nestle

Count lines
Panned products

Classic
5 Star, Perk, Kit Kat, Munch
Gems(Cadbury), Nutties, Marbles (Nestle)

AMUL CHOCOLATE

GIFT FOR SOMEONE YOU LOVE

DIFFERENT VARIANTS OF AMUL CHOCOLTES AND THEIR

RELATIVE PRICING
SL.

BRAND/PACK

MRP

NO

TRADE
PRICE

DISCOUNTED
PRICE

NET
MARGI
N

1.

Amul Milk Chocolate 35g

Rs.10

Rs. 9.13

Rs. 8.70

15 %

2.

Amul Milk chocolate 18g

Rs. 5

Rs. 4.56

Rs. 4.34

15.1 %

3.

Amul F&N chocolate 30g

Rs. 15

Rs. 13.87

Rs. 13.21

13.5 %

4.

Amul Fundoo 30g

Rs. 10

Rs. 9.00

Rs. 8.57

16.7%

5.

Amul Fundoo 15g

Rs. 5

Rs. 4.50

Rs. 4.28

16.7 %

Rs. 10

Rs. 9.00

Rs. 8.57

16.7 %

Rs. 10

Rs.9.00

Rs. 8.57

16.7 %

6.

Amul Bindaaz chocolate 30g

Amul
7.
Almond Bar 35g

Marketing Mix

In market as there many types of products are available so it becomes difficult for the
marketers to peruse the right segment market so that they can position their product effectively to
target customer. In order for this they use mix of tools of marketing, which is, know as marketing
mix.

Marketing mix is a set of marketing tools that the firm uses to peruse its marketing objectives
in the target market. Theses tool s can be classified broadly into four Ps of marketing, Product,
Price, Place, and Promotion.

Marketing mix

PRODUCT

PRICE

PLACE

PROMOTION

1. Variety

1. List Price

1. Channels

1. Advertisements

2. Quality

2. Discounts

2. Coverage

2. Sales Force

3. Design

3. Allowances

3. Locations

3. Public Relations

4. Brand Name

PRODUCT

4. Credit Norms
4. Inventory
TARGET MARKET

4. Direct Marketing

Product is the offering that is made to customer, which satisfy their wants. This is the most
important tool that company uses to attract consumer. As for Amul butter is their most profitearning product as Dairy Milk for Cadbury.
PRICE
Price is the critical marketing tool. Price is namely the amount of Money that customers
have to pay for the product. It is only mix that produces revenue for the company.
The two-price points under which Amul Chocolates are available are Rs 10, and Rs 5.
PLACE
A place is key marketing mix tool, stands for the various activities the company undertakes to
make the product accessible and available to the Target Customers.
PROMOTION
Promotion is an important tool, which stands for the various marketing activities that the
company undertakes to promote its product to the target market.
As Amul now provide schemes to Retailers of 1 unit Free with 20 units of Amul Chocolates.
Promotional Mix
Promotion consists of those activities that are design to bring companies goods or services to the
target customers. The promotional activities are concerned with:
Informing the people about products distinct wantssatisfying characteristics and its
availability.
Reminding people periodically about the product and its roles.
Persuading the people, prospective buyers that make people do what they might not
otherwise do what they do not really want to do.

Promotional Tools
1. ADVERTISING:
On one hand advertisement can be use to build up a long term relationship for a product
(utterly buttery delicious), Advertisement is an effective way to reach numerous geographically
dispersed buyers at a low cost per exposure. Certain forms of advertising such as TV advertising,
can require a large budget, while other forms, such as newspaper advertising can be done on
small budget.
2. SALE PROMO:
Companies use sales promo tools to create a stronger and quicker response. Sales
promotion can be used to dramatize the product offer and to boost sagging sales. Sales promotion
effects are usually short run, however, and not in building long run Brand preference.
3. DIRECT MARKETING:
The message is normally addressed to a specific Person and does not reach other. It can
be customized to appeal to the addressed individual. It can be prepared very quickly for delivery
to an individual.
4. PUBLIC RELATION AND PUBLICITY:
Public relation can reach many prospects who might avid sales people advertising, a
potential for dramatizing the company product. A well thought public relation program
coordinated with promotion mix elements could be extremely effective.

CHAPTER 4
RESEARCH DESIGN

SAMPLE DESIGN:
Of the total sample design Customer surveyed was formulated on basis of Selective
samplingA total 30 Customer Surveyed.

SOURCES OF DATA
Data were collected from two sources
Primary sources Which include Questionnaire, Direct interview and data collected on personal observation.
These are the data, which are collected on self-basis.
Secondary Data Which Include Journals, Magazine, News Paper And Net. These are the data, which are
collected o from the secondary sources, which are made available by other organization or
company through their annual reports or journals or news magazine.
TOOLS OF ANAYSIS
The Major tools of analysis were
Questionnaire
Direct Interview/ Observation Method
1. Questionnaire method:
The questionnaire was formulated based on customers survey.

2. Observation method:

In observation method, different customers who deal with different brand of

chocolates were surveyed by putting forth different types of questions. They were then analyzed
and compiled the provided data through Graphical representation.

CHAPTER 5
ANALYSIS OF MARKET RESEARCH DATA:

1.

Do you like to have a chocolate?

88%

YES

OPTION

NO

12%

NO. OF

PERCENTAGE

RESPONDENTS
YES
NO

26

88

12

ANALYSIS: The analysis shows that 88% of consumer surveyed consumes Chocolates.
This show Chocolates are well preferred in Consumer Market.

2. How often do you use chocolate?

a) Daily

b) Twice in week

c) Weekly

d) Occasionally

15

16
14
12
10
8

Daily

6
4

Twice in a week

Weekly

Occasionaly

Weekly

Occasionally

2
0
Daily

OPTIONS

Twice in a week

NO. OF

PERCENTAGE

RESPONDENTS
DAILY

10

TWICE IN A WEEK

17

WEELKY

23

OCCASIONALLY

15

50

ANALYSIS: The rates of consumption of Chocolates are less Frequent i.e. occasionally. So
companies should try to make consumption of a Chocolates a daily habit of consumer as
foreign companies do.

3. Which type of chocolate you like most?

a) Wafers types

b) Nutties types

c) Pure chocolate

13%

Waffers

23%
Pure Chocolate

Nutties

64%

OPTIONS

NO. OF

PERCENTAGE

RESPONDENTS.

WAFERS

13

NUTTIES

23

PURE CHOCOLATE

19

64

ANALYSIS: About 64% of the consumers prefer pure chocolate compared to nutties which
is consumed by 23% if consumers and wafers by 13% of consumers.

4. Which brand of a chocolate you prefer most and why?

a) Amul

b) Nestle

c) Cadbury.

3%

AMUL

OPTIONS

35%

61%

NESTLE

CADBURY

NO.OF

PERCENTAGE

RESPONDENTS
AMUL

10

NESTLE

10

36

CADBURY

17

61

ANALYSIS: Cadbury is the most popular brand in the market and is the biggest competitor
of Amul Chocolates. Nestle is the next preferred brand.

5. Have you ever tried Amul chocolate?

Sales
Yes

OPTION

No

NO. OF

PERCENTAGE

RESPONDENTS
YES
NO

17

24

83

ANALYSIS: People are quite not well aware of Amul Chocolates. As about 17 % of customer
surveyed are consuming Amul Chocolates. Amul chocolates are not quite popular because of
lack of promotion as the major reason.

6.

If yes how did you find it?

a) Very good

b) Satisfactory

c) Poor.

OPTION

NO. OF RESPONDENTS

PERCENTAGE

VERY GOOD

50

SATISFACTORY

33

POOR

17

Sales

17
Very good

Satisfactory

Poor

50
33

ANALYSIS: The Graph shows that image of Amul Chocolates are quite

Satisfactory

in the eye of Consumers Surveyed. The company Should require improving its Brand Image
in Chocolate Market By increasing satisfaction level of consumption.

7. What makes you to buy for Amul chocolate?

a) Good taste

b) Brand name

c) Advertisement

d) Reasonable cost

17%
50%
Good Taste

Brand Name

Advertisement

Reasonable Cost

17%

17%

OPTION

NO. OF RESPONDENTS

PERCENTAGE

GOOD TASTE

17

BRAND NAME

49

ADVERTISEMENT

17

REASONABLE COST 1

17

ANALYSIS: This shows that the brand name first attracts the customer to buy your product.
Then comes the taste which is of equal importance as the brand name. Enough
advertisements and reasonable cost will promote the sales of your product.

8. With increase price will you still buy your favourite chocolate?

31%

69%
YES

NO

NO. OF RESPONDENTS

PERCENTAGE

YES

23

69

NO

31

OPTION

ANALYSIS: This shows irrespective of the increase in price, customer will buy your product
once they have gained trust. So price change will not affect your customers much.

9. Do you feel that there should be any improvement in Amul chocolate?

a) Yes

b) No

83%

YES

NO

17%

OPTION
YES
NO

NO. OF RESPONDENTS

PERCENTAGE

25

83

17

ANALYSIS: The above graph shows that 83% of the customers are not satisfied.

10. What do you think must be improved in Amul chocolate?

a) Change in packaging

b) change in taste

c) reasonable pricing

18%

Change in Packaging

29%
Change in Taste

53%

Reasonable Pricing

NO. OF RESPONDENTS

PERCENTAGE

29

CHANGE IN TASTE

53

REASONABLE PRICING

18

OPTION
CHANGE IN PACKAGING

ANALYSIS: This analysis shows more than 50% of customers wants a change in its taste.
Hence the company must focus on improving the taste first taking into consideration the
healt aspects of the consumers.

11. Any suggestions

PERSONAL DETAILS
Name:

Age:

Address:
No. of family members:

Phone No.:

Your monthly Savings:

Your monthly Expenses:

CHAPTER 5
FINDINGS:

Chocolates in India are consumed as indulgence (pleasure) and not as a snack

food
People are not regular customers of chocolates because out of 30 surveyed customer only
10 % has polled for daily.
People are well aware of Amul chocolates but of old variant mostly milk chocolate. And
prefer less in comparison to Cadbury.
Presently Cadbury is most preferred brand in chocolate market.
People prefer pure chocolate mostly over wafer and nutties.
Brand name influence the sale of chocolate up to greater extent. In case of product like
chocolates taste is very important factor .
Most of the consumer surveyed are not satisfied with the taste of Amul chocolates and
want buttery type taste as similar to that of Cadbury chocolate.
Mostly surveyed customer consumes Cadbury and is loyal towards their brand, which
means a tough task for Amul to turns customers loyalty.
Pure milk chocolate of Amul is mostly demanded among all variants of Amul Chocolate
Dairy milk of Cadbury is most preferred chocolate in over all chocolate market.

 Children and College Students are the main consumers of chocolates to whom Amul
should do their product positioning.

CHAPTER 6
RECOMMENDATIONS:
Improvement in taste is must (Should be more Buttery like Cadbury Dairy Milk)
Should make packaging more attractive and glossy as packaging affect psychologically
on peoples mind.
Try to introduce more variants and different price points
Should make attractive ads and promos of chocolates, as there is no advertisement till
now.
Customer schemes should be made available like KIT KAT of Nestle.
Should try to provide proper service to its distributors as Nestle is providing so that they
can be fully satisfied.
More flavors should be introduced as Nestle have at present.
Go for good Brand Ambassador as Amitab and Pretty Zinta for Cadbury and Rani
Mukheerje for Nestle Munch.
Should Improve distribution Channel so as to make Amul chocolates available at every
shop.
Should provide Sale services (Dispenser, Coolers)
Should provide Facilities of Credit and Replacement of out Dated and Damaged
products.
Company should launch Wafers types of Chocolate as Perk and Kit-Kat are mostly in
demand.
Company should also offer Schemes or free gifts to customer as presently no Schemes for
Customers are there.
Small shop Should Not Be Neglected.

CHAPTER 7
CONCLUSION:
The Amul chocolates marketing strategies were studied. Amul being a well known brand in
India for its food and diary products failed to showcase its brand in chocolate. The various
reasons behind this were studied. Different types of questions were asked among people
especially teenagers and youngsters since the volume of chocolate consumed by them are more
and observations were made. Analysis was made on the results and suggestions were given.
People were too asked to give their suggestions on the improvement of Amul chocolate on
various aspects. Based on the results of the questionnaire session, it is clear that there is a good
scope of improvement in the sales of Amul provided there is a good taste irrespective of the
increase in cost. It is important to maintain the same brand name under all the fields and products
an organisation establishes. If a particular product is not encouraged among consumers for
various reasons, it is likely that all the other product that organisation establishes will also be
affected. In turn the brand name which it had acquired will fall. To avoid these, if a particular
product fails initially, reasons are to be found, SWOT analysis must be formed and rework must
be done based on the suggestions given.

CHAPTER 8
REFERENCES:
Www.Amul.Com
www.wikipedia.com
Www.Indiadairy.Com
Www.Indiainfoline.Com
Www.Google.Com

Www.Cadburyindia.Com