A REPORT

ON

PROMOTION/AWARENESS AND RETAIL PENETRATION

OF AMUL ORGANIC PRODUCTS UNDER AMUL

PUNE

Submitted By:

Yashee Srivastava

22BSPHH01C1375

IBS HYDERABAD

2022-2024

1
 Gujarat Cooperative Milk Marketing Federation - AMUL

(GCMMF)

A REPORT ON

PROMOTION/AWARENESS AND RETAIL PENETRATION

OF AMUL ORGANIC PRODUCTS UNDER AMUL

PUNE

By

Yashee srivastava

22BSPHH01C1375

At

Gujarat Cooperative Milk Marketing Federation – AMUL

(GCMMF LTD)

A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIREMENTS OF MBA PROGRAM OF IBS
HYDERABAD.
Distribution List:

Faculty Guide: Company Guide:

2
Prof. kalaa chenji Mr. Kunal kashikar

ICFAI Business School Branch Manager

Hyderabad Amul (GCMMF Ltd.)

Pune
Date of Submission: 13th April, 2023

AUTHORIZATION

This is to certify that the report titled

“PROMOTION/AWARENESS AND RETAIL PENETRATION
OF AMUL ORGANIC PRODUCTS UNDER AMUL” is a final
report of YASHEE SRIVASTAVA. Enrolment Number:
22BSPHH01C1375, under the guidance of Prof. Kalaa Chenji.

The report is submitted as partial fulfilment of the requirement of the

MBA Program of IBS Hyderabad.

The findings and conclusions expressed in this report are genuine and
for academic purpose and it has neither been submitted nor published
anywhere before any resemblance to earlier project or research work
purely coincidental. This report is done as a part of Summer
Internship Program from 28th February 2023 to 20th May 2023 under
the guidance of Mr. Kunal Kashikar Branch manager at AMUL
( GUJARAT CO-OPERATIVE MILK MARKETING
FEDERATION LTD ) PUNE.

Faculty Guide: Company Guide:

Prof. Kalaa Chenji Mr. Kunal Kashikar
ICFAI Business School Branch manager
Hyderabad Amul ( GCMMF Ltd.)
3
 pune

ACKNOWLEDGEMENTS

I would like to express my heart felt gratitude to all the people who
have been a constant source of guidance and support during the entire
course of internship with AMUL.

I am deeply grateful to the entire management of “IBS-Hyderabad”

for giving me an opportunity to learn the practical aspect of life. I
would like to thank, ‘GUJARAT COOPERATIVE MILK
MARKETING FEDERATION LTD.’ for providing me the chance to
undertake this internship study and allowing me to explore the area of
Marketing Sales and Distribution in Amul products.

At the onset, I would like to express my sincere gratitude to Dr. Kalaa

Chenji (Faculty Guide) without her guidance, co-operation, and
motivation this project would not have been complete. She has always
been guiding and motivating me to push myself beyond limits and
achieve greater results.

I would sincerely like to thank Mr. Kunal Kashikar ( Branch

Manager, company guide) who has acted as a source of inspiration
and motivated me to move besides my comfort boundaries. He has
always been my helping hand in any situation from start to end of
internship and helped me to enhance my targets and training me
achieve them as well. Be any situation, he was always standing
beyond me in case of any problem or difficulties faced in handling
any issues.

I would also thank all those who have directly or indirectly helped me
to accomplish my goals.
4
 I would like to thank all my senior members of the organization for
putting their trust in me

and assigning trustworthy tasks.

I would like to thank My Parents and Friends who have been the pillar
of strength for me in all

the phases of life.

YASHEE SRIVASTAVA

( MBA BATCH 2022-2024)

5
 TABLE OF CONTENTS
S. Title Page
No. Number
INTRODUCTION
INTRODUCTION
OBJECTIVE OF THE STUDY
AREA OF STUDY
RESEARCH METHODOLOGY
LIMITATIONS OF THE STUDY
ABOUT THE COMPNAY
HISTORY OF AMUL
HISTORY OF GCMMF
THE THREE TIER MODEL OF AMUL –
ANAND PATTERN
AMUL’S PRODUCT MIX
PRODUCT PRICING
AMUL’S BCG MATRIX
AMUL’S ANSOF MATRIX
PORTERS FIVE FORCE MODEL
ABOUT THE INDUSTRY
INDUSTRY ANALYSIS FMCG
INDUSTRY ANALYSIS ORGANIC
PRODUCTS
KEY PLAYERS
MARKET SEGMENTATION
MARKET ANALYSIS
ABOUT THE PRODUCT
AMUL ORGANIC
COMPETETOR ANALYSIS
CONSUMER EXPERIENCE WITH AMUL
ORGANIC
PRODUCTS WE WERE DEALING WITH
ABOUT THE INTERSHIP
6
OBJECTIVE
DESCRIPTION

ACTION PLAN
FEW MARKETING THEORIES THAT CAN
BE TAKEN INTO CONSIDERATION
NUMERIC AND WEIGHTED
DISTRIBUTIOJN
80/20 RULE OF MARKEITNG
SURVEY ANALYSIS
SURVEYS CONDUCTED
RETAILERS SURVEY FOR ORGANIC
CONSUMERS SURVEYS FOR ORGANIC
SAMPLING SURVEY
EVERYDAY VS AMULYA
METHODOLOGY
ANALYSIS OF SAMPLING ACTIVITIES
LIMITATIONS
FINDINGS
SUGGESTIONS
CONCLUSION
APPENDICES
REFERANCES

ABSTRACT

7
For my internship program 2022, I am interning with Amul Gujarat
Co-operative Milk Marketing Federation Ltd , Pune.

Gujarat Co-operative Milk Marketing Federation Ltd is a largest food

product brand and dairy exporter in India , popularly know as Amul,
the company strives to provide best experiences to its customers
through its diverse product range at affordable price.

The main objective of the internship is to increase awareness of Amul

organic products and its variants in pune region. After analysing
consumer behaviour by one-to-one interaction with customer and
retailer, we try to increase market share of Amul organic products by
creating awareness among its customers through sales, sampling, and
word of mouth advertising. Apart from sampling what has been the
focus of the internship is Retail Placement of Amul organic products
in the local markets-brick and mortar stores- of pune via the
distributors.

The Internship also facilitates me to get direct exposure to the in-

depth channel knowledge, know about the pyramid. This makes me
aware of different policy types and marketing tactics that
organizations take up to boost sales through intermediaries and keep
them motivated for enhancing sales target.

Another major aspect of the report covers knowing the customer well
by taking their responses and feedback while sampling and analysing
them later.

To accomplish the above, certain actions were undertaken:

• Market surveys on Amul organic products by filling out

Questionnaire from consumers.

• Understanding buying pattern by analysing consumer survey.

• Competitor analysis by visiting market.

8
• Increasing Market Penetration of Amul organic products also
performing kiosk activities at Amul parlor.

• Market surveys on Amul organic products by filling out

Questionnaire while visiting retail stores

• Identifying the gap between distributor – retailer and

trying to improve it.

9
INTRODUCTION
INTRODCUTION:
The topic for this project is to promote , spread awareness and retail
penetration for newly launched product that is Amul organic products.
This project is to figure out that new launch of Amul organic have
how much potential in the market , also to promote it and spread
awareness and also for retail penetration. This project shows that how
Amul has entered in the organic market and how well the product can
perform in the market.

Amul which is the market leader in the dairy products Amul is India’s
largest producer of dairy products and is extensively used all over
India. Their offerings of Butter and Cheese are their most popular
items, and they also have an everincreasing catalogue of products and
have captured the market really well, will it be possible to capture the
market in organic as well.

OBJECTIVE OF THE STUDY:

This study is about understanding the market for Amul organic and
promoting at local market and penetrating too. Amul organic range
of products are newly launched product and is trying to increased the
sales and also to spread awareness among its existing customers and
also the organic customers who are ready to switch to Amul organic
from other organic competitors in the market.

To understand the potential of Amul organic product in the market.

To promote Amul organic product in the market and spread awareness
of the same.
10
Also to do retail penetration in the market for Amul organic product.
To increase the sale of Amul organic product in the market.
To make people shift from other organic brands to Amul organic.
To understand the buying patterns and behaviours of Purchase/Store
managers of organic product.
To identify key market rivals and understand why they have an upper
hand in the market
To identify Amul’s strengths and weaknesses with regard to the
organic segment.
To assist in the sales and distribution of Amul organic Products
To better understand the FMCG Sector

AREA OF STUDY :
This study was carried out in pune, Maharashtra , India in its organic
segment. We were divided into different clusters/territories. The
locations covered in these clusters were the major area was Katraj
which includes sahakar nagar , Mukund nagar, kondhva, NIBM,
Bharti vidya pith, Balaji nagar, bibewadi, teaker nagar, sukhsagar
nagar. In this cluster all the retail shops were covered and also all the
APO’s ( Amul parlor) The concepts applied in this study are
promotion awareness, retail penetration, Market Strategies, Brand
and Consumer Behaviour, Sales and Distribution and Product and
Marketing Mix.

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RESEARCH METHODOLOGY :
Research is defined as a detailed study of a subject, especially in order
to discover (new) information or reach a (new) understanding. The
scientific step that is generally adopted by the researcher in studying
his/her problem along with the logic behind them is called Research
Methodology.

• Type of Research: Descriptive , quantitative

• Type of data: Primary Data , secondary
• Data Collection Tools: Questionnaire, Observation, Direct
Visit
• Source of Data Collection: The data for this study was
collected in the form of a questionnaire, a series of observations
and direct visit to specified territories.
• Analytical Tools: The data collected was analysed using the
following tools:
1. Percentage Analysis

2. Bar Graphs
3. Pie Chart
• Probability of Sampling: Non-Random Convenience Sampling

LIMITATIONS OF THE STUDY :

 Many retailers are hesitant to share the information with us
regarding the certain questions being asked by us.
 Many retailers have questioned why Amul is entering into this
market where as there’s a lot more to develop and improve in
the current existing products.
 Retailers had issues related to existing product in the market
regarding the company policy.
12
 Because of the policy issue raised by the retailers, they aren’t
ready to keep the organic products even when they know
product have really good potential in the market.

13
 ABOUT THE COMPANY
HISTORY OF AMUL
Amul was established on 19 December 1946. The Union was known
as KAIRA DISTRICT COOPERATIVE MILK PRODUCERS'
UNION. It was laid out as reaction to the abuse of minimal milk
makers by merchants or specialists of the main existing dairy, the
Polson dairy, in the little city distances to convey milk, frequently
turned sour in summer, to Polson. The costs of milk were with no
obvious end goal not entirely set in stone. The public authority had
given imposing business model privileges to Polson to gather milk
from Kaira and supply it to Mumbai city. The association began
sanitizing milk delivered by a small bunch of ranchers for the
Bombay Milk Scheme and developed to 432 ranchers before the
finish of 1948.This association chose the brand name AMUL in the
year 1955. The brand name Amul signifies "AMULYA" which was
initially gotten from the Sanskrit word "AMULYA" and that signifies
"Precious". There was a quality control master in Anand who had
suggested the brand name "AMUL".

Wide scope of Amul items has been used in great many homes
beginning around 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 main food brand in India. In the present date, Amul is an
exemplification of numerous things like top notch items sold at a
sensible value, a gigantic deep rooted co-employable organization, of
the victory of cutting edge and exceptionally native innovation, of the
promoting shrewd of a ranchers' association. It likewise has a
demonstrated model for dairy advancement (Generally known as
"ANAND PATTERN"). But throughout time when the abuse became
excruciating, the ranchers were disappointed. They by and large
engaged Sardar Vallabhbhai Patel, who was a main dissident in the
opportunity development. Sardar Patel encouraged the ranchers to sell
the milk all alone by laying out a helpful association, rather than
providing milk to private dealers. Sardar Patel sent the ranchers to
Shri Morarji Desai to acquire his collaboration and help. Shri Desai
held a gathering at Samarkha town close to Anand, on fourth January
1946. He encouraged the ranchers to frame a public form
assortment(society) of the milk.

Dr. Verghese Kurien showed primary interest in laying out

association who was upheld by Shri Tribhuvandas Patel who led the
ranchers in framing the Co-employable associations at the town level.
The Kaira region milk makers association was subsequently settled in
ANAND and was enrolled officially on 14 December 1946. Since
ranchers sold all the milk in Anand through a co-employable
association, it was normally made plans to sell the milk under the
brand name AMUL. In 1964 there was a sure difference in occasions
which turned into the defining moment throughout the entire
existence of dairy advancement program in India. Late Shri Lal
Bahadur Shastri, the then Prime Minister of India who visited Anand
on 31s October for introduction of Amul's Cattle Feed Plant, having
gone through a night with ranchers of Kaira and encountering the
achievement wished and communicated to Mr Kurien, then the
General Manager of Amul that repeating Amul model all through our
nation will get an extraordinary change the financial states of
2
individuals. To bring this fantasy into the real world, 1965 The
National Dairy Development Board (NDDB) was laid out at Anand
and by 1969-70 NDDB emerged with the dairy advancement program
for India prevalently known as "Operation Flood" or "White
Revolution". The Operation Flood program, even today, stands to be
the biggest dairy improvement program at any point attracted the
world. This saw Amul as model and this model is much of the time
alluded throughout the entire existence of White Revolution as
"Anand Pattern". Replication of "Anand Model" has assisted India
with arising as the biggest milk creating country on the planet. At the
underlying stage just 247 litres of milk were gathered consistently.
Yet, with the developing consciousness of the advantages of the
helpfulness, the society of milk expanded. Today Amul gathers more
than 23 lakhs litres of milk consistently.

HISTORY OF GCMMF LTD.

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) is
India's biggest food item promoting association with yearly turnover
(2018-19) USD 4.8 billion. Its day-to-day milk acquirement is approx.
23 million litres each day from 18,700 town milk agreeable social
orders, 18-part associations covering 33 regions, and 3.6 million milk
maker individuals.

GCMMF is the showcasing arm of the organization and deals with the
actual conveyance and circulation of milk and dairy items from every
one of the Unions to clients. GCMMF is additionally answerable for
all choices connected with market improvement and client the
3
executives. It is the Apex association of the Dairy Cooperatives of
Gujarat, famously known as AMUL.

AMUL plans to give gainful re-visitations of the ranchers and

furthermore serve the premium of customers by giving quality items
which are great incentive for cash. Its prosperity has not exclusively
been imitated in India however fills in as a model for rest of the
World. It is restrictive advertising association of Amul and Sagar
marked items.

It works through 56 Sales workplaces and has a seller organization of

10000 vendors and 10 lakh retailers, one of the biggest such
organizations in India. Its item range contains milk, milk powder,
wellbeing refreshments, ghee, spread, cheddar, Pizza cheddar, Ice-
cream, Paneer, chocolates, and conventional Indian desserts, and so
on.

GCMMF is India's biggest exporter of Dairy Products. Numerous

items are accessible in USA, Gulf Countries, Singapore, The
Philippines, Japan, China, and Australia. GCMMF has gotten the
APEDA Award from Government of India for Excellence in Dairy
Product.

GCMMF-An Overview

Year Of Establishment 1973

Members 18 District Cooperative Milk
Producer’s Union
No. Of Producer Members 3.64 million
No. Of Village Societies 18600
Total Milk Handling 39 million Liters per Day
4
 Capacity per day
Milk Collection (Daily Avg 24.6 million Liters per Day
2020-21)
Cattle Feed manufacturing 10,000 MTs per Day
Capacity
Sales Turnover (2020-21) Rs.39,248 Crores

 Our Member Unions

1. Kaira District Cooperative Milk Producers' Union Ltd., Anand

2. Mehsana District Cooperative Milk Producers' Union Ltd,
Mehsana
3. Sabarkantha District Cooperative Milk Producers' Union Ltd.,
Himatnagar
4. Banaskantha District Cooperative Milk Producers' Union Ltd.,
Palanpur
5. Surat District Cooperative Milk Producers' Union Ltd., Surat
6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara
7. Panchmahal District Cooperative Milk Producers' Union Ltd.,
Godhra
8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad
9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch
10. Ahmedabad District Cooperative Milk Producers' Union
Ltd.,Ahmedabad
11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot
12. Gandhinagar District Cooperative Milk Producers'Union Ltd.,
Gandhinagar
13. Surendranagar District Cooperative Milk Producers' Union Ltd.,
Surendranagar
14. Amreli District Cooperative Milk Producers Union Ltd., Amreli

5
15. Bhavnagar District Cooperative Milk Producers Union Ltd.,
Bhavnagar
16. Kutch District Cooperative Milk Producers' Union Ltd., Anjar
17. Junagadh District Cooperative Milk Producers' Union Limited,
Junagadh
18. Porbandar District Cooperative Milk Producers’ Union Ltd,
Porbandar

THE THREE TIER MODEL OF AMUL- ANAND PATTERN

Figure 1- Anand Pattern

The Anand Pattern is essentially an economic organizational

pattern to benefit small producers who join hands forming an
integrated approach to economy of a large-scale business. The
6
whole operation is professionally managed so that the individual
producers have the freedom to decide their own policies. The
adoption of modern production and marketing techniques helps in
providing those services that small producers individually can
neither afford nor manage. It has succeeded largely because
Anand Model involves people in their own development and
because their interests are safe in their own hands. Under
Operation Flood the entire institutional infrastructure set up at the
village level, the district level and the state level are owned and
operated by the farmers themselves. The Anand Model co-
operatives have progressively eliminated middlemen, bringing the
producers in direct contact with consumers. The Anand Pattern
succeeded because it gave a fair price to the farmer and high -
quality milk and milk products to the consumer. What would have
been middlemen’s profits in the earlier system got absorbed into
development projects for primary producer or lower cost for the
consumer. In short, the Anand Pattern meant the utilization of
resources in the most profitable manner at grass-root level.

7
 Figure 2- The Business Model of Amul

The Three Tier Structure is briefly discussed as follows: -

The First Tier - Primary village Co-operative Society: An
Anand Pattern village dairy cooperative society (DCS) is formed
by milk producers. Any producer can become a DCS member by
buying a share and committing to sell milk only to the society.
Each DCS has a milk collection centre where members take milk
every day. Each member's milk is tested for quality with payments
based on the percentage of fat and SNF. At the end of each year, a
portion of the DCS profits is used to pay each member a patronage
bonus based on the quantity of milk poured. This also acts as a
vital link for various productivity enhancement and development
programs of farmers programs.

The Second Tier - District Union: District Union: A District

Cooperative Milk Producers' Union is owned by dairy cooperative

8
societies. It is a Union of primary village co-operative societies
within a district. The Union buys all the societies' milk, then
processes and markets fluid milk and products. Union also
provides a range of inputs and services to village cooperative
societies and their members: feed, veterinary care, artificial
insemination to sustain the growth of milk production and the
cooperatives' business. Union staff train and provide consulting
services to support village co-operative society leaders and staff.

The Third Tier - The State Federation: The cooperative milk

producers' unions in a state form a State Federation which is an
apex marketing body responsible for marketing of milk and milk
products of member unions. The Federation also plays a role in
the overall development of the district unions federated to it.

AMUL’S PRODUCT MIX

With a diverse product range which comprises of Milk, Milk Powder,
Health Beverages, Ghee, Butter, Cheese, Pizza Cheese, Ice Cream,
Paneer, Chocolates, traditional Indian sweets, etc. Amul has
consistently focused on quality and customer satisfaction. For its
unwavering effort, it has received numerous awards and accolades
over the years. Amul is not only a product, but also a movement. It is
in one way, the representation of the economic freedom of farmers. It
has given farmers the courage to dream. To hope. To live.

Amul’s offering, with respect to the HoReCa Segment are

9
 • Amul Butter, with its famous tagline, Utterly Butterly
Deliciouos
• Amul Cheese, another widely popular product with different
variants like Cheddar, Mozzarella, Emmental, Feta, Processed,
Diced and Cheese Spread
• Amul Liquid Creamer and Dairy Powder
• Amul Fresh Cream and Whipped Cream
• Amul Paneer and Malai Paneer
• Amul Ice Creams and Chocolates
• Amul Happy Treats, its latest Frozen Food offerings with
products like Frozen French Fries, Burger Patties, Veggie Stix,
to name a few.

These are Amul’s offering to premium hotels, restaurants and caterers.

These products are readily available all over India and are very
popular among consumers.

PRODUCT PRICING
Amul has a low-cost pricing strategy for products that are consumed
regularly. This pricing strategy of Amul make its products affordable
for its target audience. Increasing the price of goods proportional to
their audience’s increase in income helped them retain their customer
base. Amul follows competitive pricing for products that faced heavy
competition. and uses market strategies to ensure they achieve
maximum market share possible.

10
For example, Go Cheese, a competitor to Amul in the Cheese Market,
sells a 200g pack of Cheese Cubes at Rs. 125 whereas the same
quantity of cheese cubes by Amul retails at Rs.
113.

AMUL BCG MATRIX

BCG growth-share matrix classifies different business units or
products into 4 different categories like Dogs, Stars, Cash Cows and
Question Mark. This analysis is done with regard to the HoReCa
Segment.

FIGURE NO 3

• Dogs: Dogs are products that have low growth or market share
and have very little chance of becoming a profitable business for

11
 the company. Amul Chocolates and Amul Pizza fall under this
category.
• Cash Cows: These are products that are in low growth markets
with high market share. Amul Butter and Cheese are considered
cash cows for Amul.
• Stars: Stars are products that have high market share and have
high growth too. Amul Ice Creams and Amul Creams
(Fresh/Whipped) have a high market share with a lot of potential
to grow.
• Question Marks: Question Marks are products that are in high
growth markets but have low market share. Amul Happy Treats
and Amul Premium Cheese (Emmental/Gouda) are question
marks for Amul.

AMUL’S ANSOFF MATRIX

The Ansoff Matrix, also called the Product/Market Expansion Grid, is
a tool used by firms to analyse and plan their strategies for growth.
The matrix shows four strategies that can be used to help a firm grow
and also analyses the risk associated with each strategy.

12
 FIGURE NO 4
• Market Penetration: Amul uses this strategy by promoting
existing products in its existing markets. For Amul, this means
motivating more consumers to purchase its products in the
markets it is already serving. The first strategy the company
adopts is increasing the number of retail stores it has that sell its
products. It also ensures that all stores have complete product
stocks so that all products can be sold. The stores are selected
strategically in high traffic areas to ensure greater sales. Amul
also aggressively markets its products to highlight the benefits
they have to offer. By doing so, the company is attracting new
consumers and motivating existing consumers to increase their
consumption to increase company sales.

13
 • Market Development: Promoting existing products in new
markets is market development. Amul is doing this by
increasing the number of stores in rural areas to serve rural
consumers. On the international level, it is also expanding into
the Middle East and Southeast Asian markets to promote its
products. The company also alters its packaging sizes to match
the needs of regional consumers rather than serving standard
packaging sizes.
• Product Development: Amul is renowned for product
development by launching new products in its existing markets.
It has improved its existing products in terms of quality and
shelf life. Their packaging is also improved regularly. The
company has also launched lactose-free milk and UHT camel
milk.
• Diversification: Amul has an excellent diversification strategy
as well. It does related diversification by expanding into new
dairy products such as healthy ice cream, cooking chocolate,
lactose-free milk and camel milk. All of these diversification
factors are possible due to the strong brand name and excellent
financial status of the company.

PORTER’S FIVE FORCE ANALYSIS

Porter theorized that understanding both the competitive forces at play
and the overall industry structure are crucial for effective, strategic
decision-making, and developing a compelling competitive strategy
for the future. The five forces that shape industry competition are
14
Competitive Rivalry, Bargaining Power of Suppliers, Bargaining
Power of Consumers, Threat of New Entrants and Threat of
Substitutes.

FIGURE NO 5

1. Competitive Rivalry: There is extreme competition in the Dairy

Industry. Amul is among the biggest in this competitive market
with a number of strong competitors like Nestle, Aavin, Milky
Mist. Each product of Amul has a guaranteed share of market.
This rivalry is not simply restricted to the cost of the item but
also for quality, development and variation.
2. Bargaining Power of Suppliers: Amul is a co-op and has a vast
supply chain. It is not easy for suppliers to manipulate prices.
Prices are fixed by Amul and those are followed everywhere
3. Bargaining Power of Consumers: Amul is widely known and
used all over India. Their consumers do not hold the power of

15
 controlling prices via switching to other brands as Amul is
renowned for its quality and customer satisfaction
4. Threat of New Entrants: There are many barriers to entry in
this the dairy industry. One cannot easily enter due to the high
cost of procurement and operation and in an industry like Dairy,
brand value and trust places a major role.
5. Threat of Substitutes: This force is where Amul has a bit of
concern, established brands like Nestle, Aavin, Milky Mist offer
same or similar products in the market for similar price. The
switching costs for the consumer is also low. However, Amul
has established itself as a brand that puts quality and health first,
which attracts customers and not a lot of switching happens.

16
 ABOUT THE INDUSTRY

INDUSTRY ANALYSIS- FMCG

Fast Moving Consumer Goods (FMCG) is the fourth-biggest area in
the Indian economy. There are three fundamental portions in the area
food and drinks, which represents 19% of the area; healthcare, which
represents 31% of the offer; and family and individual consideration,
which represents the excess half of the offer. The metropolitan
fragment adds to around 55% of the income share, while the
provincial portion represents 45%. Rise in rural consumption will
drive the FMCG market.

Figure 6- Rural v/s Urban divide of FMCG

As indicated by Nielsen, the Indian FMCG industry developed 9.4%

in the January-March quarter of 2021, upheld by utilization drove
development and worth extension from higher item costs, especially
for staples. The FMCG area's income development will twofold from
5-6% in FY21 to 10-12% in FY22, as indicated by CRISIL Ratings.
Cost increments across item classifications will counterbalance the
effect of rising unrefined substance costs, alongside volume
development and resurgence popular for optional things, are driving
17
development. The Indian FMCG industry developed by 36.9% in the
second quarter of 2021, notwithstanding cross-country lockdowns.

Figure 7- CAGR FMCG Market India

Increasing online users boost online FMCG sales

• India's rising web infiltration and rising computerized

development alongside creating framework has helped support
on the web exchanges.
• The web based FMCG market is assessed to arrive at US$ 45
billion in 2020 from US$ 20 billion out of 2017, upheld by
development in internet-based clients from 90 million out of
2017 to 200 million in 2020E.
• Around 72% Indian customers are probably going to shop online
locally for premium items.
• The Indian web-based basic food item market is assessed to
surpass deals of about Rs. 22,500 crore (US$ 3.19 billion) in
2020, a huge leap of 76% over the earlier year.
• Numerous FMCG brands band together with web-based
business stages, for example, Dunzo, Flipkart, Grofers and

18
 BigBasket to convey items at the doorstep of purchasers during
the COVID-19 pandemic.
• As of June 2021, online business share has previously contacted
7-8% for probably the biggest FMCG organizations in the
nation, as per Accenture India.
• The gross product esteem (GMV) of the internet based staple
fragment in India is supposed to increment multiple times
throughout the following five years to arrive at US$ 37 billion
by FY25.

Figure 8- Growth in Online users in FMCG Market

19
 INDUSTRY ANALYSIS : ORGANIC PRODUCTS
What is organic?
Organic producers rely on natural substances and physical,
mechanical, or biologically based farming methods to the fullest
extent possible. Produce can be called organic if it's certified to have
grown on soil that had no prohibited substances applied for three
years prior to harvest.

Organic market:
The organic food market in India is a niche market, with the market
expected to see wider penetration in the coming years. Owing to the
growing incidences of food adulteration, the demand for organic food
is anticipated to rise in the coming years. The e-commerce industry
growth also serves as an aid to enterprises as a way of appealing to
potential consumers due to the lucrative offers and wider market
penetration of the platforms. In the malls in major metropolitan towns,
companies are also opening small kiosks, which is adding to the
market growth. Organic beverages like tea have the greatest appeal,
followed by milk products and pulses.

 KEY PLAYERS:
- Organic tattva
- Organic India
- 24 mantra
- Tata sampan
- Induz organic
- Nature bio foods limited
MARKET SEGMENTATION:
Organic food refers to the product of an agricultural system that
avoids the use of inorganic fertilizers, pesticides, and animal feed
additives. Organic farming assures customers that toxic pesticides,
synthetic fertilizers, and genetically modified organisms (GMOs) are

20
not used in the processing of food and that no antibiotics or growth
hormones have been administered to the livestock.

Based on product type, the market is divided into:

 Organic Beverages

 Organic Cereal and Food Grains

 Organic Meat, Poultry and Dairy

 Organic Spices and Pulses

 Organic Processed Food

 Organic Fruits and Vegetables

 Others

On the basis of distribution channels, the market is segmented

into:

 Supermarkets and Hypermarkets

 Specialty Stores

 Convenience Stores

 Online

 Others

Based on region, the market is classified into:

 North India

 East and Central India

 West India

21
  South India

FIGURE NO 9
MARKET ANALYSIS:
The India organic food market is experiencing a robust growth with
the rising awareness about organic food products. The growing level
of health consciousness in the country is a key factor driving the
demand for organic food. The rising awareness about the nutritional
content and quality of the food consumed by Indian consumers is
leading to the growing demand for organic food. In addition, the
consumer spending on health and wellness products has increased
dramatically due to factors including strong economic growth,
urbanisation, and rising income levels. The strong government
funding is catalysing the market for organic food in India. The
Government of India encourages organic farming through financial
assistance to farmers who are implementing organic farming under
various government schemes, such as the Mission for Integrated
Horticulture Development (MIDH), National Food Security Mission
(NFSM), NMSA, and Rashtriya Krishi Vikas Yojana (RKVY).

22
Breakup by Distribution Channel:
 Supermarkets and Hypermarkets
 Specialty Stores
 Convenience Stores
 Online
 Others

WHY ORGANIC ?
There are three aspect or three types of benefits :
 Health benefits
Free from pesticides
Grown with no chemical inputs
No chemical additives
 Environmental benefits
Usage of chemical inputs reduces the soil fertility gradually over
the years.
Avoiding such chemical inputs and using the natural organic
inputs enhances the soil fertility and keeps the soil healthy.
 Social responsibility
Over the years , farmers who have adopted organic farming have
understood the need of organic food products to protect and
strengthen nations health.
Yet, they are not able to get the market linkages to get
appropriate returns hence organic product range is an effort towards
democratizing the organic food industry.

23
 ABOUT THE PRODUCT:
AMUL ORGANIC:
Amul has launched is entering into new segment that is organic range
of products, with no chemicals and pestisides used. It has the
government certigication names NPOP ( National Programme for
Organic Production ).

1. WHOLE WHEAT ORGANIC ATTA

The production of Amul organic atta is being done at state-of-the-art
processing facility, Tribhuvan Das Patel Mogar Food Complex.The
product goes through a thorough procedure of lab testing multiple
times to make sure that the product is as per organic standard laid
down by Government of India, it said. R S Sodhi , MD, GCMMF,
said the cooperative is in the process of developing a pool of organic
farmers and replicate their existing milk model in the organic
sourcing.This will increase the income of organic farmers and will
lead to overall democratisation of the organic food industry.Currently,
the major challenge for the farmers is unavailability of market linkage

24
for organic products and high cost of organic testing facilities, the
statement said.

Therefore, along with creation of market linkage for organic farmers,

Amul is in process of setting up organic testing laboratories at 5
locations across India.

The first lab is being established at the Amul Fed Dairy in

Ahmedabad.

GCMMF said the prime objective of launching organic wheat flour is

to help its customers embark on a mission to a more sustainable and
healthy lifestyle.

Amul organic atta will be launched at Amul Parlours and leading

retail stores across Gujarat initially from the first week of June.

The product will also be available online for home delivery across
Gujarat, Delhi-NCR, Mumbai and Pune from June onwards.

It will be available in two pack sizes of 1 kilogram at MRP of Rs 60

and 5 kilogram at MRP of Rs 290.
 Pack configuration: 10 x 1 kg

 Shelf life: 3 months

 Trade margins:

 MRP : 60

WD margin: 4% on MRP
Retailer margin: 15% on MRP
 Competitor overview:

Brands Organic 24 BB Amul

Tattva Mantra Organic
MRP ( Rs ) 135 130 105 90
 USP:

The Amul organic atta comes with the goodness of organic and
at a very competitive price point.
25
  Pack configuration: 4 x 5 kg
 Shelf life: 3 months

 Trade margins:

 MRP : 290

WD margin: 4% on MRP
Retailer margin: 15% on MRP
 Competitor overview:

Brands Organic 24 BB Amul

Tattva Mantra Organic
MRP ( Rs ) 320 310 329 290
 USP:

The Amul organic atta comes with the goodness of organic and
at a very competitive price point.

2. ORGANIC TOOR DAL:

 Pack configuration: 36 x 500gm
 Shelf life: 12 months

 Trade margins:

 MRP : 90

WD margin: 4% on MRP
Retailer margin: 12% on MRP
 Competitor overview:

Brands Organic 24 BB Amul

Tattva Mantra Organic
MRP ( Rs ) 135 130 105 90
 USP:

26
 The Amul organic toor dal comes with the goodness of organic
and at a very competitive price point.

3. ORGANIC CHANA DAL:

 Pack configuration: 36 x 500gm
 Shelf life: 12 months

 Trade margins:

 MRP : 70

WD margin: 4% on MRP
Retailer margin: 12% on MRP
 Competitor overview:

Brands Organic 24 BB Amul

Tattva Mantra Organic
27
MRP ( Rs ) 95 100 72 70
 USP:

The Amul organic chana dal comes with the goodness of

organic and at a very competitive price point.

4.ORGANIC WHOLE MOONG DAL:

 Pack configuration: 18 x 1 kg
 Shelf life:12 months

 Trade margins:

 MRP : 165

WD margin: 4% on MRP
Retailer margin: 12% on MRP
 Competitor overview:

Brands Organic 24 BB Amul

Tattva Mantra Organic
28
MRP ( Rs ) 250 250 179 165
 USP:

The Amul organic whole moong has vacuum packaging which

eliminates the risk of any kind of insect attack and keeps the
product fresh till opened.

5. ORGANIC BASMAGTI RICE:

 Pack configuration: 18 x 1 kg
 Shelf life:12 months

 Trade margins:

 MRP : 165

WD margin: 4% on MRP
Retailer margin: 12% on MRP
 Competitor overview:

Brands Organic 24 BB Amul

29
 Tattva Mantra Organic
MRP ( Rs ) 220 250 175 165
 USP:

The Amul organic basmati rice is long grained rice with superior
taste and aroma. The rice is of premium category with goodness
of organic and available at a very competitive price.

30
 Other organic products in pipeline :

 Organic jaggery powder

 Organic besan powder

 Organic sugar

 Organic kabuli chana

 Organic masoor dal

 Organic rajma

 Organic sonamasuri rice

 Organic chana

COMPETITOR ANALYSIS :

31
 Competitors
of

FIGURE NO 10

These are the major top brands competing with Amul, also
competitive analysis ( including price, margin, market share ,
and all other aspects have been described and mentioned above.
It has two main advantages over its competitors in the
market. Supply chain and distribution channel: Amul has an
organized and systematic supply chain and years of experience
compared to its peers which makes it a tough one to compete
with.

CONSUMERS EXPERIENCE WITH ORGANIC

PRODUCTS:

32
 USAGE: limited to occasional usage

POINT OF DISTINCTION: visually look more appealing

Premium
Healthier
BARRIERS: high price ( 4x ) but high intention to usage
Authenticity of today’s organic produce.

PRODUCTS WE WERE DEALING WITH:

ORGANIC ATTA:

Organic whole wheat atta was the first product launced by Amul
in their portfolio , which received good response in the market
from retailers as well as from customers. There was high
demand of the product, but later on because of shortage of the
product , people were dissapointed after getting to know about
the shortage of the product.

ORAGNIC TOOR DAL:

Organic toor dal was another product launched by the company

which didn’t got much response from the retailers as well as
from customers because of the price of the product. But people
who consumed the product said that the product is nice and the
quality taste is much better and they are ready to repurchase it.

ORGANIC CHANA DAL:

Oragnic chana dal got same response as organic toor dal, where
as people consume chana dal a little less in their daily life, but still
people who have used it, gave us the feedback that chana dal is also
good in quality and taste too. People were waiting for the other
product launch like organic rice and organic moong dal, because
33
people here in Maharashtra consume moong dal more than any other
dal.

ORGANIC MASOOR DAL:

organic masoor dal was available to us to promote in the market at the
end, so there were no such retailer buying neither do customers, but
again this product too had very good potential in the market.
ORAGNIC BESAN:
Same as organic masoor dal , this product was also launched in the
market late, due to lack of promotion we couldn’t got much response ,
but still response for organic besan was better than organic masoor
dal, which customers really liked.

34
 ABOUT THE INTERNSHIP
 Objective of the Internship:
• To make the market, retailers, and consumers aware of the
Amul organic products. Performing kiosk activity at amul
parlors.
• Promoting Amul organic products which is established but
not doing well in the market.
• To increase the sales of Amul organic.
• To analyse the current market situations of Amul organic
products from the retailers.
• Analysing the consumer behaviour and identifying the
problems and areas which are making them behave positively or
negatively towards the product.
• Increasing the retail penetration of Amul organic product in
the local region of pune.
• Acting to bridge the gap in the supply chain which is affecting
the distribution of Amul organic products.
• Competitive analysis of the Amul’s competitors which are
constantly imposing challenges to the sales and market share of
Amul. ( organic tatva, 24 mantra , tata sampan)

 Description of Internship in brief:

This organic market is a kind of a niche market which has very
low awareness and sale of products
Internship is maily focused on increasing awareness , sales and
expanding retail netwrok of Amul organic products in markets
under Amul pune branch. Promotional activites are being
performed to make retailers and customers aware.

To increase the sale I perform kiosk activity in front of Amul

outlets. Also to study the consumer behaviour and their interest
towards the organic product.
Retail mapping and retail penetration is also my task.

35
 I am also doing the detailed survey of the supply chain of Amul
to bridge the gaps in distribution. We ask retailers several
questions whether they are facing any problem by the
distributors.

 Action Plan:

• Visiting the retail outlets for promotions and awareness of

organic products. Taking inventory at each retail outlet for better
understanding of the market scenario.
• Conducting follow up visits at the retail outlets to check
whether there is improvement or not.
• Being a bridge between retail outlets and wholesaler and
conveying all the problems being faced at retailer’s end.
• Understanding the B2B and B2C market of Amul Pune mostly
through observing and listening in the field of work, which has
given me the idea about the consumer behaviour and retailers
motive to consume and sell the products respectively.
• Conducting a retailer survey for analysing the current market
situation of Amul organic products.
• Setting up kiosk activity at different Amul retails outlets for
increasing the product reach.
• Gathering and collecting data from consumers and then
analysing the responses.
• Going out in the market with allotted salesperson for retail
placement of Amul organic product at local grocery stores and
generating leads in the market is the key activity which I am
focusing on and trying to promote and persuade the retailers to
keep more and more Amul organic products.
Few marketing theories that can be taken into considertaion are:

36
Numeric and Weighted Distribution

Exhibit 29.12 What is the numeric and weighted distribution of

brands X, Y and Z? (Universe is shops A, B, C and D).
Distribution, the metric commonly used for tracking product
availability, is usually measured in numeric and weighted terms. It
may be weighted in either volume or value.
Numeric Distribution is the percentage of stores handling product.
Weighted Distribution is the percentage of stores handling product
weighted by product category store sales. This is equal to share of
category sales by handlers.
Consider the example. Brand X is handled by shops A, B and C; its
numeric distribution therefore is three out of four or 75%. Its
weighted distribution is the total weight of shops A, B and C in terms
of category sales, which is equal to 50% (5 + 20 + 25). Note also that
the brand’s weighted distribution (50%) is the same as the trade share
of shops A, B and C, which handle brand X.
Unless otherwise specified, distribution is weighted in terms of
category value sales. Defined as a percentage of where money is spent
on the product category, it reflects the quality of distribution.
Considering that brand X’s weighted distribution (50%) is lower than
its numeric distribution (75%), one may conclude that the quality of
the brand’s distribution is relatively weak. In comparison
brand Z with 50% numeric and 70% weighted distribution is handled
by stores that contribute more to category sales.
Occasionally categories are weighted in terms of ACV (i.e., sales
value of all categories sold by store). This is advisable in case of
small, new/growing categories with few brands. For such categories,

37
ACV weighted distribution provides a better reflection of the quality
of distribution.

Distribution is one of the four elements of the famous marketing

mix. It is about making your brand and product available for the
consumer in the right place. Marketers use distribution metrics to
clear up problems in the supply chain. Although these incredibly
useful metrics have a number of variations, this post will cover
the most frequently used in brand management: numeric
distribution and weighted distribution. Analyzing just these two
metrics will already provide a decent representation of your
product’s availability.

Numeric distribution refers to the percentage of stores selling your

brand. The value can be found by dividing the number of stores
selling your brand by the total number of stores in the range (any
particular area). To get the correct percentage, you’ll have to multiply
that number by 100.

Let’s have a look at an example where we compare Brand A and

Brand B:

Range Availability Brand A Availability Bran

Store 1 Yes No
Store 2 Yes Yes
Store 3 No Yes
Store 4 Yes Yes
Store 5 No Yes
Store 6 No Yes
Store 7 Yes Yes
Brand A is available in 4 out of 7 stores, whereas Brand B is available
in 6 out of 7 stores.
38
Numeric distribution Brand A: 4/7 x 100 = 57.1%
Numeric distribution Brand B: 6/7 x 100 = 85.7%

In this example, we see that Brand B has a higher numeric distribution

than Brand A. In other words: Brand B is wider available than Brand
A. However, we know nothing about the quality of distribution. You
get a better indication of the quality of distribution by weighing the
stores. The weighted distribution shows your brand’s presence as a
percentage of where money is spent in the category. In every market,
there are different types of stores, and to increase your quality of
distribution, you want to be present where your customers spend the
most in your category.

Let’s have a look at the same example. We’ve added a column that
represents the category sales per store.

Range Category sales Availability Brand A Availa

Store 1 55 Yes No
Store 2 15 Yes Yes
Store 3 10 No Yes
Store 4 40 Yes Yes
Store 5 10 No Yes
Store 6 15 No Yes
Store 7 40 Yes Yes
Comparing the weighted distribution for Brand A and Brand B gives
us the following:

Weighted distribution Brand

A: (55+15+40+40)/(55+15+15+40+10+15+40) x 100 = 78.9%

Weighted distribution Brand

B: (15+10+40+10+15+40)/(55+15+15+40+10+15+40) x 100 =
68.4%
39
We see that Brand A (78.9%) has a higher weighted distribution than
Brand B (68.4%). Brand A is sold in stores which account for 78.9%
of total category sales. Combining both metrics for both brands gives
us the following result:

Brand A
Numeric distribution 57.1%
Weighted distribution 78.9%
In our example, we can see that Brand B is present in more stores than
brand A. However, Brand B isn’t present in the most important store
in terms of category sales. This heavily impacts the brand’s weighted
distribution. Therefore, Brand A has a better quality of distribution
than Brand B.

Typically the weighted distribution of a brand is higher than its

numeric distribution. Brands usually try to be available in the stores
where consumers spend the most in their category. By identifying the
gaps in your weighted distribution you can improve your presence in
the right stores. However, if your strategy is to be available to your
consumer everywhere, then you should focus on improving the
numeric distribution metric.

80/20 Rule of Marketing: What It Is and How To Apply It

Businesses often search for ways to increase productivity, save time

and boost sales. Implementing the 80/20 marketing rule can help
people achieve these goals. If you're looking to develop a marketing
strategy or improve business operations, you can use the 80/20
marketing rule to determine an effective plan and strategy.

In this article, we discuss what the 80/20 rule is in marketing and

eight ways you can apply it for an effective campaign or other
marketing operations.

Key takeaways:

40
  The 80/20 rule states that 80% of results come from 20% of
accounts.
 Some experts refer to the 80/20 rule as the Pareto principle
named after economist Vilfredo Pareto of Italy, who compared
wealth to population.
 The 80/20 rule applies in various areas, such as marketing,
manufacturing, management and human resources.

 
What is the 80/20 rule of marketing?

The 80/20 rule, also known as the Pareto principle, is a marketing

strategy that says 80% of your results are a product of 20% of your
actions. Economist Vilfredo Pareto thought of the idea when he
realized approximately 80% of his nation's land belonged to 20% of
its population. You can use the 80/20 rule to help develop effective
marketing strategies. Here are some common ways to use the 80/20
rule:

 80% of results are a product of 20% of time invested.

 80% of sales come from 20% of customers.
 80% of complaints come from 20% of customers.
 80% of global pollution originates from 20% of factories.
 80% of online product sales come from 20% of products.
 80% of website traffic comes from 20% of keywords used.

You can apply the 80/20 rule in any situation, but it isn't a
foundational law to dictate your actions. Some of your results and
actions may have higher or lower percentage rates. The 80/20 rule can
contribute to your strategies and help with your thought processes, but
more reliable business information comes from research, reports and
analytics.

Related: The 80/20 Rule Explained (Guide to the Pareto

Principle)
8 ways to use the 80/20 rule

Applying the 80/20 rule in a business can help you track sales
activities and determine the most important factors to consider. Here
41
are ways you can start implementing the 80/20 rule to improve
efficiency, increase sales and grow a business:

1. Find the best customers

The best customers often bring in most of the profits, meaning 80% of
sales may come from 20% of customers. Identifying the 20% of
customers who purchase most of your products or services can help
you develop marketing strategies to attract more like-minded
customers. Here are some ways you can discover the best customers:

 Identify regular customers. Check the logistics and data of the

sales to identify the customers who make frequent or the most
recent purchases. Your sales log shows daily, weekly and
monthly sales and provides insights that can help you develop
new marketing strategies.
 Trace how customers found you. Identify the sources that
brought the customers to the products or services, whether
through social media or targeted advertising. Finding where
20% of the customers come from can help you optimize your
strategies to find more customers through the same channels.
 Analyze where customers are. Knowing where customers live
may make it easier for you to target them. Leveraging point of
sales (POS) platforms to see the regions where your customers
come from can be a great way to target more customers from
more precise locations.
Related: Target Market Analysis: What It Is and How To Make
One
2. Identify profitable products

A company may have a few products that customers love,

contributing to 80% of the total sales. Instead of promoting products
that don't make big sales, you can focus on improving the top-selling
20% of products or services by launching new updates or improved
features to provide customers with better quality to encourage more
purchases.

Related: Product Profitability: Definition and Methods

42
3. Increase website traffic

The 80/20 rule can also work with search engine optimization
(SEO) by considering that 80% of the website traffic stems from 20%
of keywords used. Specific keywords may bring in more traffic than
others. Check your analytics to see which blog posts or social media
posts bring in more traffic and which keywords rank high in the
search results. When you know which keywords elicit the most traffic,
you can focus your efforts on those specific words and look for ways
to implement them in marketing content and website design.

Related: 26 Effective Ways To Increase Traffic to Your Website

4. Invest your time wisely

You can also apply the 80/20 rule to determine the best ways to invest
your time. When looking at the company's goals, prioritize the 20%
most important to bring in 80% of sales or revenue. Then, you can
focus your remaining time on the rest of the goals.

Related: How To Prioritize Workplace Tasks (With 5 Steps and

Tips)
5. Learn to manage costs

You can also use the 80/20 rule to identify the 20% of items
responsible for 80% of the company's expenses and reduce costs if
possible. By identifying where you spend the most money, you can
make smarter budget decisions and increase profits by identifying
where you spend the most money. Look for things such as production
costs, advertising channels and losses to identify expenses that don't
produce benefits to outweigh their costs.

Related: 10 Tips for Managing a Budget at Work

6. Focus on social media content

The 80/20 rule can work with a social media strategy by considering
that 80% of the social media sharing may come from 20% of the
posts. Discover the 20% of content that interests the audience and
serves their needs while also building the brand. Check where the
comments, likes and shares come from by using a social analytics
43
tracker and create similar content to continue attracting a similar
audience.

Related: 8 Steps To Create Successful Social Media Marketing

Strategies
7. Watch where traffic comes from

All websites receive traffic from many sources, but it's important to
find the 20% of sources from which 80% of traffic comes. Instead of
monitoring all the traffic channels, focus on five to 10 traffic channels
that bring in the most referrals and concentrate on the posts' quality.
Creating a strong media presence on a channel that targets the
business' primary audience can increase sales and brand recognition
more efficiently.

Related: What Is Web Traffic Monitoring? Plus Benefits, Tools

and Steps
8. Develop quality software

20% of software development efforts may contribute to 80% of

program functionality. Spending hours in programming can be time-
consuming and costly, but applying the 80/20 rule to new software
development can help you focus on the features that provide quality
functionality to users. Effective software or a site can also increase
customer satisfaction and improve the company's revenue and
reputation.

SURVEYS CONDUCTED :

44
There were four main surveys conducted by me ( which was asked by
the company itself ) for organic products and sampling of Amul
products.

SURVEY NO 1: RETAILERS SURVEY FOR ORGANIC:

Frist one was for retailers and it included the questions related to
organic product of Amul, whether they have organic products or not ,
if yes then of which company?
The questionaire is mentioned below :
1) How many organic brands do you keep?

2) which is the highest selling organic brand?

3) Which is the highest selling orgnanic item at your outlet?

4) How often do you sell organic wheat or organic lentils?

5) Are you willing to keep Amul orgnanic product range?

6) How satisfied are you with our pricing for organic

wheat and lentils?

7) Is there any consumer demand for Amul

Organic products?

8) If already selling our range, how likely are you to continue

selling our organic products in the future?

9) Number of customers who buy organic product on

monthly basis?

10) Value sold of organic product at your outlet on

monthly basis?
45
 no.of organic brands retailers keep

10%

40% 20%

30%

1 2 3 4 5

NO OF ORGANIC BRANDS RETAILERS KEEP.

FIGURE NO 11
The above chart shows that while doing the survey, these were the
numbers of brands the reatilers kept, where we completely observed
that many retailers only have 1 or 2 brands of organic.

highest selling brand

1%3%
9%
27%

9%
51%

none organic tatva tata sampann 24 mantra nature fresh pro nature

HIGHEST SELLING BRAND

FIGURE NO 13

The above chart indicates that which brand in the market is the
highest selling brand, which clearly show and has been observed

46
 that Tata Sampann is the highest selling brand in the market
followed by 24 mantra and organic tatva.

highest selling organic item

2%
7% 2%
2% 19%
1%
4%
1%
7%

56%

none brown sugar atta lentils jaggery Peanuts

honey rice vegetables dry fruits oil ghee

HIGHEST SELLING ORGANIC ITEM.

FIGURE NO 12
The pie chart shows that which product is the highest selling product
in organic market, where as it has been observed that lentils are the
products which has been sold by many retailers.

retailers willing to keep amul organic products

29%
36%

35%

yes no maybe

RETAILERS WILLING TO KEEP AMUL ORGANIC.

FIGURE NO 14

47
 It has been observed from the chart which show that retailers are
ready to keep Amul organic product or not, where there’s a mix
response from their side which was 36% reatilers were ready to
keep Amul organic and the other side 35% were not, and rest
29% were not sure about it , gave us the reason that if demand
arises then they will keep the product.

price satisfaction

3%3%

22%

48%

24%

neutral Somewhat dissatisfied Somewhat satisfied

Very dissatisfied very satisfied

PRICE SATISFACTION
FIGURE 15

Many retailers found that the price was less but the margin was too,
where as they get high margins from other brands , somewhere around
48% retailers were neutral about the pricing where as 24% were
dissatisfied.

48
 DEMAND FOR AMUL ORGANIC PRODUCTS

15%

85%

no yes
DEMA
ND FOR AMUL ORGANIC PRODUCTS
FIGURE NO 16

Many retailers have mentioned that when there will be demand in the
market then they are ready to keep the product , where as this chart
shows that the demand for Amul organic is less because of lack of
promotions and awareness amongst the customers. There’s only 15%
demand in the market.

49
 SURVEY NO 2: CUSTOMER SURVEY FOR ORGANIC:
Second survey was conducted for consumers who uses organic
product or the potential consumers who can be converted towards
organic.
The questionaire included the questions mentioned below :

1) Do you buy organic product?

2) Are you willing to buy organic product?
3) How often do you buy organic products?
4) Which organic brand do you buy the most?
5) Which organic item do you buy the most?
6) What factors do you consider while buying organic products?
7) How much more are you willing to pay for an organic
product in comparison to non-organic product?
8) Have you heard about Amul Organic Products?
9) Are you willing to buy Amul Organic Products?
10) If used, are you willing to repurchase?
11) Are you willing to recommend Amul Organic Products to
your friends or family?
PEOPLE WILLING TO BUY ORGANIC PRODUCTS

43% 44%

13%

YES NO MAY

PEOPLE WILLING TO BUY ORGANIC

PRODUCTS
FIGURE NO 17

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There are customers who are already organic users and then there are
users who are willing to buy organic. Where as people who are sure of
buying organic are not reluctant towards a brand. 44% are willing to
buy organic and 43% are in doubt.

organic brands customers buy the most

7%1%5%
10% 15%

25%

37%

none Organic tatva motherearth tata sampann

Reliance Fresh Organic 24 mantra pro nature organic india

ORGANIC BRANDS CUSTOMERS BUY THE MOST

FIGURE NO 18

customers who are already organic users , use different

brands and the brand which is leading is Tata Sampann ,
most customers consumes Tata Sampann products.

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 organic item purchased by customers

8% 1%6%

16%

41%

18%

10%

none lentils atta salt

vegetables fruits rice brown sugar

ORGANIC ITEMS PURCHASED BY CUSTOEMRS

FIGURE 19

Here again it has been found and observed that lentils is

the organic item which has been purchased by many
customers with 41% of total.

factors considered while buying organic

products

10%1%
22%
18%
1%
2%
4%

43%

Price, Health benefits Price, Brand impact

Price, Taste Health benefits
Health benefits, Environmental impact Price
Price, Health benefits, Taste taste
environmental impacts

FACTORS CONSIDERED WHILE BUYING

ORGANIC PRODUCTS
FIGURE 20

52
 There were different factors taken into considertaion like
Tatse
Price
Health benefits
Environmental impacts
Brand impact
Where we received mix response from the customers.

customers willing to pay extra for organic

6%1%

27%

67%

Not more than 10% extra 10%-20% extra 20%-30% extra 30% or more

CUSTOMERS WILLING TO PAY EXTRA FOR

ORGANIC
FIGURE NO 21
Many customers are price sensitive and are not willing to pay much
for organic but during our survey we got to observe that there 66%
customers who are not willling to pay more than 10% extra from
normal products.

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 CUSTOMERS WILLING TO BUY AMUL ORGANIC

38%
50%

12%

yes maybe no

CUSTOMERS WILLING TO BUY AMUL ORGANIC

FIGURE NO 22

Loyal customers of Amul are definitely using Amul

organic products , but when asked to other customers
many said they are not willing to purchase Amul organic
but 38% out of loyal customers agreed to using organic
products of Amul.

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 customers willing to repurchase

31%

60%
9%

YES NO MAYBE

CUSTOMERS WILLING TO REPURCHASE

FIGURE NO 23

Customers who are already purchasing the product and

who are liking it are purchasing it again and new
customers who are puchasing it are saying that they will
definitely repurcahse it.

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 SURVEY NO 3: SAMPLING SURVEY:

Third survey was for sampling of Amul cookies , mithai , seltzer

and , many more , this sampling activity was conducted in front of
Amul parlor.
The questionaire included the question mentioned below :
1) Do you like the product?
2) Are you willing to purchase this product?
3) Are you satisfied with the price of the product?
4) Would you recommend the product to your friends or family?

people who liked the product

7% 2%

46%

45%

Satisfied Very satisfied Neutral Dissatisfied

PEOPLE WHO LIKED THE PRODUCTS

FIGURE NO 24

We did sampling for many products like

Chesse cookies
Seltzer
Amul mithai
Where as we got good response for every product. Majority of
people were satisfied with those products.
56
 people willing to purchase the product

15%

85%

yes no

PEOPLE WILLING TO PURCHASE THE PRODUCT

FIGURE NO 25

Many people after the sampling have purchased the product and
when asked that in future are you willing to purchase it where
we got 85% yes from there side.

people satisfi ed with the product

16%

84%

yes no

PEOPLE SATISFIED WITH THE PRODUCT.

FIGURE NO 26
57
Customers loved the idea of sampling the product and which made it
easier for them to buy the product when they tasted it they were really
satisfied with the product. 84% of them liked it and gave us some
suggestions to improve it.

recommendation

25%

75%

yes no may

RECOMMENDATION
FIGURE NO 27

When asked to customers that will you recommend these products to

your knowns ,75% of them said yes they will definitely suggest their
knowns about these products.

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 SURVEY NO 4: EVERYDAY VS AMULYA:

Fourth survey was about EVERYDAY vs AMULYA milk powder,

where we did a survey visiting all the retail store and observing that
which mil powder brand the retailer keeps and which brand has higher
sale.
The questionaire included the question mentioned below :
1) Which dairy whitener product are you aware of
among below?
2) Which product do you see more in the shops?
3) For how long are you aware of product Everyday?
4) For how long are you aware product Amulya?
5) Which dairy whitener would you prefer using?
6) Why do you prefer Amulya over Everyday?
7) Why do you prefer Everyday over Amulya?
8) What features are missing in Amulya as per you?
9) How can we improve our product Amulya?
10) Are you willing to try our product Amulya?
11) Will you recommend Amulya to your friends
and relatives?

visibility of milk powder

20%

37%

43%

Nestle Everyday Both has good visibility Amulya

VISIBILITY OF MILK POWDER

FIGURE NO 28
59
43% of the retail stores have the visibilty of both the products,
Where as many retailers said that people buy Amulya more than
Everyday because of the price , taste although Everyday is a though
competitor , 37% of the stores have more visibility of Everyday and
20% have more visibility of Amulya.

CUSTOMERS PREFERENCE

9%

39%

52%

everyday amulya none

CUSTOMER PREFERENCES
FIGURE NO 29
Both the brands have their loyal customers where as few customer
prefer Everyday and some prefer Amulya..this above chart shows that
52% prefer Amulya and 39% Everyday where as 9% don’t use milk
powder.

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 preference of Amulya over Everyday

Brand value
Awareness
7% Brand value, Qualtity product
22% Better price, Brand value
Better price, Qualtity product, Better
taste
29% Qualtity product, Better taste
Better price, Brand value, Qualtity
product, Better taste
20%
Better price, Brand value, Better
5% taste
5% 11%

PREFERENCE OF AMULYA OVER EVERYDAY

FIGURE NO 30
Customers choose Amulya over Everyday because of the certain
factor
Brand value
Quality product
Better price
Better taste
These were the factors why people choose Amulya over Everyday
where brand value with 29% gave them the reason to buy it followed
by better price , quality product and better taste all at once with 22%.

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 METHODOLOGY:
surveys and market research, retailer, and customer survey analysis.
Primary data - collecting primary data from retailers whom we visit
for surveys..also we have a questionnaire for the retailers by whuch
we gather all the required data like pertaining to the use of organic
products and its benefits, demand for organic products and buying
behavior of customers. We collect data of customers also by
performing kiosk activity in Amul outlets whether they like the
product or they will buy it again or not , satisfied with the product or
not and so on.
Secondary data – It is used mostly to run comparisons with other
organic brands in the market who are Amul’s competitors (Tata
Sampann, Organic Tattva, Organic India 24 mantra organic, etc.) to
highlight the key differences
Analytical tools : The data collected was analysed using the following
tools :
Percentage Analysis
Bar Graphs
Pie Chart
Likert scale questionnaire
Ability of Sampling: Non-Random Convenience Sampling. We were
assigned different territories and the sampling was done in those
territories.

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 ANALYSIS OF SAMPLING ACTIVITES :
We were asked to perfrom kisok activity in front of different Amul
parlors in different areas. Kiosk for organic products were performed
too. And sampling for products like Amul seltzer , Amul cheese
cookies were done.\
 We used to set up a stall displaying every product we were
promoting and doing sampling of.
• I had to approach the customers who visit the shop.
• Then I tried to explain them about Amul cheese cookies and
Amul seltzer , its variants and what is the difference between
Amul and its competitors.
• After explaining them I asked them a few questions to analyse
the consumer behaviour and responses regarding Amul organic
products.
• The details of the so far activities conducted are attached in the
table below.
S. PARL WD Total TOTAL TOTAL
N OR custom CUSTOM PRODU
O. NAME ers ERS CTS
Visited TASTED ( SOLD
( per per day)
day)
1 Kotech Shree 30-40 20-22 Will
a’s kart kalash mention
sales in final
report
2 Fusion A.K 15-20 12-13 Will
enterpri Distribu mention
ses tor in final
report
3 Dhruv A.K 20-25 15-22 Will
enterpri Distribu mention
ses tor in final
report

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4 Shri A.K 20-25 Will 12-15
Niranja Distribu mention
n foods tor in final
report
Findings and all the responses and data collected from all the
surveys will mentioned in the final report as all the surveys are still
going on and sales are going on too.

RETAILERS SALES:

s.no Product name Total no of units

sold in kg
1 WHOLE WHEAT ATTA 229KG
2 CHANA DAL 33KG
3 TOOR DAL 46KG
4 BESAN 13KG
5 MASOOR DAL 5KG

total sales ( retailers )

10%

14%

4%
2%
70%

chana dal toor dal besan masoor dal whole wheat atta

FIGURE NO 31

64
This sales was done while we visited the market to the reatilers and
pitched them for organic products, these were the sales made in katraj
which includes sahakar nagar , Mukund nagar, kondhva, NIBM,
Bharti vidya pith, Balaji nagar, bibewadi, teaker nagar, sukhsagar
nagar. These sales were made in total 29 outlets in all the area we
have covered.
CUSTOEMRS SALES:

s.no Products name Total no of units

sold in kg
1 WHOLE WHEAT ATTA 20KG
2 CHANA DAL 7KG
3 TOOR DAL 3KG
4 BESAN 2KG

total sales (customer)

6%
9%

22%
63%

Whole wheat atta chana dal toor dal besan

FIGURE NO 32
The customers sales were made while doing kiosk activity in all the
assinged APO’s ( Amul parlor) , where we directly pitched customers
about the organic product, in different APO’s including
1. KOTECHA’S KART
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 2. SHRI NIRANJAN FOODS
3. FUSION ENTERPRISES
4. DHURV ENTERPRISES.

 LIMITATIONS:
Amul has no replacement policy for the product.
Retailers are facing issues from distributor's side.
Supply of many product is not there in the market.
shortage of many product is there in the market and demand is more.
Expiry products being provided to the retailers and then are not being
exchanged later.
As of now people are purchasing product for trial, looking forward
whether they come back and purchase it again or not.
Many retailers have complained about the salesman not reaching to
them to take orders, even after keeping the products of Amul they
have said that salesman doesn’t visit the store to take orders.
Lower middle class area, where retailers ae hesitating to keep the
product because of high price, even if they like the product they are
hesitating to keep the product because of no demand in the market.

FINDINGS :
While visiting the stores I discovered that there is shortage of
supply for few products which are highly in demand like Rs.
25 chocolates, taza and ghee many more. Upon asking the
outlets I found that this is the case since few months, though
the products are available in the market.

66
Majority of the stores had all the running items of Amul available at
their stores.
For the focused products given to us- organic product I found
that the outlets were keeping all these products when we went
there and took orders but there were hardly any sales for these
products. Major reason is very less advertisement. In some of
the outlets there was serious rat problem because of the dairy
and food products of Amul. Owners are trying to solve this.
Amul policy of not replacing the product which are expired
and which were damaged at the time when they received the
product, no replacement policy built a trust issue for retailers
and the was the major red flag.
Customers were interested in knowing about the new range of
amul organic products..we have repeated customers at APO's
for organic product..specially for whole wheat atta.
Customers tried toor dal and they liked it..got repeated
customers for it.
Customers are waiting for rice and moong dal to launch for
which they were really interested.
Customers said there's some insect inside toor dal which is
making them trust the product less.
As of now..retailers have kept the product but says the sale is
slow and from retailers we aren't getting repeated orders.
Even after pitching many times retailers aren't ready to keep
the product because of the replacement policy.

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Customers who were interested in organic product were not
getting amul products easily available in market.
-Amul atta is coming up in demand and is getting sold out as
people have appreciated its taste. The 1 kg packs are easily
sold as people are initially preferring that for tasting.
-1 kg atta is not available in stock.
- More awareness is required towards organic products and its
advantages so that customers can compare and purchase the
healthier option.
- Retailers were asking for more offer so that the customers
can start purchasing the products initially.
customers were interested in knowing about the product
though they said they might try it later.
Few Customers completely denied on buying it because they
find it costly and are price sensitive.
Many customers have said that they have certain trust towards
the brand and they are willing to purchase it.

Customers have issue with the packaging..says packaging is

not appealing to them.
They have issues with expired products not being replaced and
it takes time for the process.

Just because of not replacing the existing products they are

hesitant to buy this organic product.

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Retailers with atmost services received from the company they
are ready to keep the product.

Customer awareness about the product is too low. Not being

aware of the product they are confused whether its available in
every store or just amul parlour.

SUGGESTIONS:
Digital promotions can make a huge difference in this case,
where as people are less aware of Amul organic range of
products. Not just organic range of products, many people
don’t know about many products that Amul have in their
portfolio.
The whole range of Amul Products aren’t available in pune . Amul
Milk, Amul Dahi, Amul Fresh Paneer, and a few of Amul’s Frozen
Foods aren’t available.
Having more Amul products in the market can benefit the market
share of Amul.
This can be achieved by opening up more Amul Parlours, currently
there are around 15 parlours in pune.
Discounts on wholesale and bulk purchases can be offered to retailers
to boost sales.
Wholesale Shops should be regularly stocked up with all of Amul’s
offerings

69
Samples can be provided sooner and targeting can be done
more aggressively.

CONCLUSION:

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APPENDICES

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REFERENCES:

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