Published on Sep 16, 2019
The dairy industries companies run mainly on the factors such as availability, service frequency, affordability, taste and marketing. Availability is plays a vital role because purchasing power is depend upon availability of that product, in case distributors and retailers service matter a lot. Retailing includes all the activity in selling goods or service directly to the customers or personal nonbusiness use .
A retailer or retail store is any business enterprises whose sales volume comes primarily from retailing. Retailers are the part of milk marketing channels and perform the work of moving goods from producers to the customers. It overcomes the time, place and possession gap that separates goods and service from those who needs or wants them.
Retailers as member of marketing channel perform a number of key functions. Some functions (physical, title, promotion) constitute a forward flow of activity from the company to the customers; other functions (ordering and payment) constitute a backward flow from customers to the company. Still others (information, negotiation, finance and risk taking) in both directions. The project delves into the workings from the distribution aspect of an FMCG organization, in detail. AMUL, being an FMCG company, attaches a lot of significance to the distribution aspect of its business.
The distribution channel of AMUL holds a lot of potential in affecting the demand or sales of AMUL products through delivery on time, delivery of variety of products, the retailerfriendliness of the policies being set by the distributors and equitable distribution of products to all the retail outlets in a particular region, to name a few. So, In order to plan retail coverage we map out the positions of Amul outlets, Amul parlors, and competitor’s outlets.
This project was carried out in Pune city. For analyzing and presenting information that is tied to geographical location, we divided the city in different wards. By analyzing geographical representation and sales data with spatial distribution Amul outlets, competitor’s outlets and the density of others in an area, we identify unexplored area and plan location outlets to increase its market penetration. Using such research we can ascertain the quality and depth of retail penetration in specific area.
Objective of the Study
The Primary objective of study was to find size of retail network of Amul Taaza and Amul Gold in specific areas of Pune city. In the study my intention was go through the retail network of Amul dairy milk to know retailers view about supply chain of Amul dairy milk, to know the complaints of Amul dairy milk and to find the suggestions from retailers for more penetration of Amul dairy milk in Pune region.
The secondary objective was to find customer response towards Amul milk. My aim was to go through the customers to know the interest of purchasing & using Amul milk. Basically the study was for the demand of Amul milk among the customers. And also to know the complaints on Amul milk.
Research type was descriptive. The research was done through retailers. I have collected the primary data through questionnaire which was filled by retailers, customers. Questions were both open and close ended. The secondary data was collected from website www.amul.com. Sampling done is nonprobability sampling. The type of sampling method was Judgment sampling
In Pune region there are around more players in of liquid milk exist. Those are like Chitale, Katraj, Krishnai, Mahanand, Amul, Warna, and many other local brands. As per the findings CHITALE is the Market leader and having more market share. Awareness of Amul dairy milk among the retailers as well as consumers is average but acceptance is low. The sale is totally depends on the retailers.
The study carried out in Pune city so its scope is mainly limited to Pune city.
It gives information about the size of the retail network.
It gives information about the services given by distributor to their retailer.
It gives information about the competitors’ products.
It will serve consumer in better manner.
It provides suggestions to the company to improve their products sales.
It gives information about the sales promotion activities to improve the milk sale
Amul Secret Of Success
The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good. Looking back on the path traversed by Amul, the following features make it a pattern and model for emulation elsewhere.
Amul has been able to:
Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its rotes and limitations.
Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment.
Provide a support system to the milk producers without disturbing their agro-economic systems.
Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers.
Even though, growing with time and on scale, it has remained with the smallest producer members. In that sense, Amul is an example par excellence, of an intervention for rural change.
The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like - all through the village societies. Basically the union and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF INDIA. Amul (Anand milk union ltd.) is based on four hands, which are coordinated with each other. The actual meaning of this symbol is co-ordination of four hands of different people by whom this union is at the top position in Asia.
First hand is of farmers, without whom the organization would not have existed.
Second hand is of processors, who process the row material (milk) into finished goods.
Third hand is of marketer, without whom the product would have not reached the customers.
Fourth hand is of customers, without whom the products would have not carried on.
• Retailers are not interested because they don’t have storage facility but if company provides them such facility they will be sale Amul milk.
• Because of low profit margin almost all retailers are not interested in Amul milk selling.
• The 250 ml and 5 Ltr milk pouch are no available to the retailers for selling.
• On question, why retailers are not interested in selling of Amul milk, it is found they were not happy with margin, availability and replacement of leak pouches.
• Retailers were selling different brands. Because they were able to receive more margin from non popularized brand that they could not from well known brands.
• All retailers get Amul milk from company selected distributors.
• Measurable amount of retailers were not happy with the distributors, because of frequent change in distributors and late delivery of milk.
• All retailers were familiar with sales promotion activities undertaken by Amul. But more of the activities were not communicated by distributors. So it shows that distributors are taking the advantage of such activities.
• Some questions were asked with view to convert retailers into distributors, but due to low margin they denied that.
• Retailers were not interested to start APO because to start APO one required large amount investment i.e. near about 2 Lakhs and with this it is mandatory to sale only Amul products, so most of the retailers did not show interest in APO.
• I found that customers were complaining about the packaging especially packaging date because Amul do not print packaging date on pouch.
• When question came to retailers ratings towards Amul milk rating most of the most respondents complaining about profit margin and packaging date.
• During campaign it is found that the mindset of consumers towards Chitale milk is very high and hence it has become a milk maket player. As from the sales chart it is clear that the sales of Chitale pouch milk is 50% more then Amul pouch milk.
• Retailers also demand for the replacements for the damage due to the spoilage of milk that they have to bear when the Amul milk gets spoiled after the purchase.