A PROJECT REPORT ONEFFECTIVENESS OF AMUL CHOCOLATES ADVERTISEMENT on CONSUMER BEHAVIOUR TOWARDS ITS SALES PREPARED AND PRESENTED by R.SATHYAPRIYADHARSHINI ACKNOWLEDGEMENT Words are insufficient to express my gratitude toward ____________, I would like to give my heartily thanks to _________________, Manager of Administration, who permitted me to do this project. I am very thankful to _________________, who helped me at every step whenever needed and _______________who arranged all possible visits for me at AMUL. However, I accept the sole responsibility for any possible error of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice. At last but not least my grateful thanks is also extended to ________ and my thanks to all my faculty members for the proper guidance and assistance extended by them. I am also grateful to my parents, friends, _______________to encourage & giving me moral support. 1 CONTENTS Sr. No. 1. Chapter Name Introduction of Chocolate 2. Introduction & History of Amul 3. Research Methodology 4. Research Design 5. Limitations & Literature review 6. Data Analysis & Findings 7. Suggestions 8. 9. Conclusion Bibliography 2 3 INTRODUCTION AND HISTORY OF AMUL 4 6 billion in 2005). Amul products have been in use in millions of homes since 1946. Amul Milk and Amulya have made Amul a leading food brand in India. of the marketing savvy of a farmers' organization. The brand name Amul means AMULYA . Amul Shrikhand. Nutramul. (The total sale is Rs. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION. That time there was high demand for milk in Bombay. This union selected the brand name AMUL in 1955. of the genesis of a vast co-operative network. Amul Ghee. This word derived form the Sanskrit word AMULYA which means PRICELESS .INTRODUCTION AND HISTORY OF AMUL In the year 1946 the first milk union was established. Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices. Amul Ice cream. Amulspray. Amul Butter. In the early 40 s. Amul Milk Powder. A quality control expert in Anand had suggested the brand name AMUL . of the triumph of indigenous technology. Amul Cheese. This system leads to exploitation of poor and illiterates farmers by the 5 . The main supplier of the milk was Polson dairy limited. the main sources of earning for the farmers of Kaira district were farming and selling of milk. Amul Chocolates. And have a proven model for dairy development (Generally known as ANAND PATTERN ). who was a leading activist in the freedom movement. when the exploitation became intolerable. 6 . The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word.private traders. However. They collectively appealed to Sardar Vallabhbhai Patel. He advised the farmers to form a society for collection of the milk. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union. Shri Desai held a meeting at Samarkha village near Anand. the farmers were frustrated. on 4th January 1946. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his cooperation and help. Instead of supplying milk to private traders. . did not seem to help farmers by any means. Mr. However. the farmers of Kaira district went on a milk strike. The milk commissioner of Bombay then visited Anand to assess the situation. To respond to this action of govt. without the intervention of Government. It was also resolved that the Government should be asked to buy milk from the union. Having seemed the condition. As a result the Bombay milk scheme was severely affected. It gave the negative response by turning down the demand for the milk. For 15 whole days not a single drop of milk was sold to the traders. it was commonly resolved to sell the milk under the brand name AMUL. Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis. The district union was also form to collect the milk from such village co-operative societies and to sell them. the govt.These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in forming the Co-operative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. he decided to fulfill the farmers demand. Since farmers sold all the milk in Anand through a co-operative union. 7 . which would collect the milk and could chill it. of New Zealand under the Colombo plan. Thus. With the financial help from UNICEF. of Rs. To overcome this problem the union thought out to develop the chilling unit at various junctions. Milk is collected from almost 1073 societies. Besides when the milk was to be collected from the far places.At the initial stage only 250 liters of milk was collected everyday. 50 millions for factory to manufacture milk powder and butter was planned. so as to preserve it for a longer period. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period. assistance from the govt. Dr.Rajendra 8 . the collection of milk increased. Today Amul collect 11 lakhs liters of milk everyday. there was a fear of spoiling of milk. But with the growing awareness of the benefits of the cooperativeness. today Amul has more than 150 chilling centers in various villages. 1955. when the profit of the business was cornered by the middlemen. Shri Pandit Jawaharlal Nehru. PEOPLE POWER: AMUL'S 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. 1954. it does not disturb the agro-system of the farmers. the president of India laid the foundation on November 15. What's more. Contrary to the traditional system.Prasad. the prime minister of India declared it open at Amul dairy on November 20. It also enables the consumer an access to high quality milk and milk products. 9 . y Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. by prudent use of men. provision of technical inputs to enhance milk yield of animals. it has remained with the smallest producer members. y Provide a support system to the milk producers without disturbing their agro-economic systems. material and machines. Basically the union and cooperation of 10 . the artificial insemination service. growing with time and on scale. the following features make it a pattern and model for emulation elsewhere. better feeds and the like all through the village societies. y Plough back the profits. The Union looks after policy formulation. veterinary care. Looking back on the path traversed by Amul. Amul has been able to: y Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its rotes and limitations.the system ensured that the profit goes to the participants for their socio-economic upliftment and common good. in the rural sector for the common good and betterment of the member producers and y Even though. processing and marketing of milk. Amul is an example par excellence. In that sense. of an intervention for rural change. e. flavored milk and buttermilk. ghee. which engaged in the manufacturing of milk.people brought Amul into fame i. which engaged in manufacturing chocolate. nutramul. Second plant is at MOGAR. Plants First plant is at ANAND. milk powder. 11 . AMUL (ANAND MILK UNION LIMITED). butter. a name which suggest THE TASTE OF INDIA. Amul Ganthia and Amul lite. Fourth plant is at Khatraj. which produces cattelfeed. 12 . which engaged in producing cheese.Third plant is at Kanjari. Today Amul dairy is no. which is matter of proud for Gujarat and whole India. 1 dairy in Asia and no. 13 . 2 in the world.Today. twelve dairies are producing different products under the brand name Amul. F Shri Deepak Dalal District Registrar Managing Director Shri Rahul Kumar 14 .C. Mansinh Kohyabhai Chauhan Shri Maganbhai Gokalbhai Zala Shri Shivabhai Mahijibhai Parmar Shri Pravinsinh Fulsinh Solanki Shri Chandubhai Madhubhai Parmar Shri Bhaijibhai Amarsinh Zala Shri Bipinbhai Manishankar Joshi Smt.M.M.BOARD MEMBERS Shri Ramsinh Prabhatsinh Parmar Shri Rajendrasinh Dhirsinh Parmar Shri Dhirubhai Amarsinh Zala Smt. Vyas Director G. M. Sarayuben Bharatbhai Patel Shri Ranjitbhai Kantibhai Patel Chairman Vice-Chairman Director Director Director Director Director Director Director Director Director Director Managing Shri B. ADVERTISEMENT FOR AMUL 15 . RESEARCH METHODOLOGY 16 . To know awareness of people towards Amul chocolates. LITERATURE REVIEW OF AMUL CHOCOLATES: y A study conducted on amul chocolates of the market for confectionery products in India.´ 17 .RESEARCH OBJECTIVES To know the relationship of sales with the advertisement. 2005 y A report prepared for The National Confectioners Association Report prepared by mitalishah19 Date Submitted: 09/03/2011 y ³To Analyze Sales of Dairy Products Amongst Unorganized Retailers and Concept Testing of Aseptic milk in Pouch for Amul in Pune and PCMC region. 3. To know which advertisement tool is mostly preferred by people. To know in which segment chocolates are mostly like/preferred. To know the factors which affects consumer s buying behaviour to purchase chocolates.A report prepared for the National Confectioners Association January. To know the preference of Amul chocolates with comparison to Other competitive brands. Tathawade. Sec-44. Mysore y AMUL CHOCOMINIS By: anmol.NOIDA.Post Graduate Diploma in Management (Marketing) By SHASHANK SHEKHAR AGARWAL y Study conducted for amul at Indira School of Business Studies.) y Sales and distribution management of AMUL SUBMITTED By: Nirmay Abichandani M-09-01 Dilip Pawara M-09-38 y MICRO ANALYSIS OF AMUL & GUJARAT COOPERATIVES OF MILK MARKETING FEDERATION Submitted by: Rashid Ali. Rukmini Devi Institute of Advanced Studies (Aff. To Guru Gobind Singh Indraprastha University) y ³ EFFECTIVENESS OF CHOCOLATE ADVERTISEMENT TOWARDS ITS SALES´ KAIRA DISTRICT CO-OPERATIVE MILK PRODUCESµUNION LIMITEDANAND submitted by: chandraj 1st may to june 30th y Amul taste of india Submitted by: 666 preran88 Date of submitted:02/07/2011 Dept of Management GFGC. Pune 411033 Report prepared by zebrarhino Data submitted: 10/7/2010 y DESSERTATION REPORT ON ³INDIAN CHOCOLATE INDUSTRY OF AMUL´ Submitted by Ankur arora (MBA) AMITY INTERNATIONAL BUSINESS SCHOOL (AMITY UNIVERSITY. 2008 18 .rao Nov 03. qweryallprojectreports@gmail. Date submitted: 4/18/2010 y Effectiveness of advertising in amul chocolates. Submitted by: pinkykh. Submitted by: BK Mehata.ernet.ASOMA. 2007 y Master in business administrative Of Doon Business SchoolDehradunProject report ³OnMARKET RESEARCH WITH REFERENCE TO Amul Chocolate´ Lt. Report on Identifying factors behind decreasing market share of amul chocolate and study of consumer behavior Submitted by :-Arpita Gupta PGDM.Asian school of management studies y Business Strategies for Managing Complex Supply Chains in Large Emerging Economies: The Story of AMUL Pankaj Chandra Devanath Tirupati Indian Institute of Management Vastrapur.in devanath@iimahd. Ahmedabad 380015 India [email protected] amul chocolate are really amulya By: mdtabishnasim Aug 19.com.) Anirudh tomarMBA 2nd Semester Director Doon Business School DOON BUSINESS SCHOOL y ³A study on penetration amul chocolates in retail outlets of pune city´ This study is conducted from 8th june 09 to 8th august 09 By: sumeet singh jasrotia PGDM.(Dr.ernet.Col.Summer Internship Report. PGDM 09-11 | 1 y Amul products in india.in Revised April 2003 y Summer internship PROJECT Post Graduate Diploma in Business Management. Date: 3/06/2005 19 . bypass road.RESEARCH INSTRUMENT USED . CLUSTER SAMPLING Here the whole area is divided into some geographical area and a definite number of consumers were to be surveyed. Theatres and Gymnasium. CONVINIENCE SAMPLING This type of sampling is chosen purely on the basis of convenience and according to convenience.DETAILS & WHY? The data collected for this project is Questionnaire Questionnaire in the project consists of: Multiple choice questions Dicthomus Open ended question SAMPLING TECHNIQUE USED & SAMPLE SIZE SAMPLING METHODS The whole city of Madurai was divided into some geographical areas and I have chosen annanagar. k. The total sample size was 197. gowripalayam. periyar.k nagar. south masi street. west masi street. 20 .I visited Superstores. villapuram . superstores. Method : Direct interview through questionnaire. FIELD WORK. Sample size : 197 respondents (Age ranging between 15 yrs to 65 yrs) 4.METHOD USED FOR DATA COLLECTION y Questionnaire was prepared keeping the objective of research in mind. 21 . Data analysis method : Graphical method. Area of survey : Madurai District. Sample Unit : People who buy chocolates available in retail outlets. 5. etc 3. 6.SAMPLING 1. Sampling Technique : Non probability sampling (A non probability sampling technique is that in which each element in the population does not have an equal chance of getting selected) 2. y In order to get correct information I had to approach consumers ranging from 15 yrs to 65 yrs. in order to get accurate information. each and every question was filled personally by the respondents and checked properly. y The help of questionnaires conducted direct interviews. y I visited as many respondents as I can and asked them their real likings about any chocolate and also got an idea. Theatres and Gymnasium.y Questions were asked to respondents as regards to there willingness to purchase Chocolates. How a chocolate should be? y In order to collect accurate information I visited to Superstores. 22 . DATA ANALYSIS AND FINDINGS 23 . PRIMARY TABULATION & INTERPRETATION [1] What kind of Chocolate do you eat? Branded Non branded 92 % 08% INFERENCE 92% respondents in the region of Madurai consume Branded Chocolates. while 8% still consume non branded. 24 . 25 .[2] Who uses chocolates in your family? Children Teenager Young Old 34 % 33 % 26 % 07 % CHOCOLATE USERS 7% 0% 35% 26% Teenager Young Old Children 32% INFERENCE Mostly children & teenagers likes chocolates in their families. Young people also using chocolates for consuming & for giving as a gift. So we should give stress on children & tenager segment to increase market share. followed by wafer i. 20%. 60%.[3] What form of Chocolate do you like? Cookies Bar Wafer Other 14% 60% 20% 06% Form of chocolate 6% 20% 14% Cookies Bar Wafer Other 60% INFERENCE The above diagram suggest that the most preferred form is bar i.e.e. 26 . Cookies are all time favorites with 14% while other forms are preferred to the extent of 6%. 27 .CHANNEL PREFERENCE Others Cartoon Sony Zee Star 0 20 40 15 97 60 80 100 120 25 30 30 INFERENCE Mostly people like STAR VIJAY channel.[4] Which Television channel you like to watch most? STAR VIJAY ZEE TAMIL SUN TV CARTOON Others 97 15 30 30 25 T.V. CARTOON channel is specially preferred by children. This channel is very popular among all the age group people. In other channels sports and news channels are preferred. So it will be more beneficial top give advertisements on STAR VIJAY & CARTOON channels. it covers all the age groups. SUN TV & CARTOON channels are also popular but not as STAR. V. after 8 pm to 11 pm.[5] In between what time you like to watch television? Timings _____________ 5 to 8 pm 8 to 11 pm Late Night Morning Afternoon 33 % 37 % 10 % 15 % 05 % TIMING PREFERENCE 5% 5 to 8pm 15% 10% 38% 32% 8 to 11pm Late night Morning After noon INFERENCE From the survey it was found that 37% of the respondents likes to watch T. At 5 to 8 pm 33% respondents in which especially children watch cartoon channel & etc. so it is good to advertise on preferred channels on these timings. 28 . Because Mostly people belong to service class & females in the families got their work by this time. V. 29 . and hoardings because advertisement through hoardings is less costly.[6] By which media you prefer to watch advertisements? Television Hoardings Newspapers Magazines Others (Mention) 67 % 17 % 08 % 05 % 03 % MEDIA PREFERENCE TO WATCH ADVERTISEMENT 5%3% 8% 0% 17% 67% Television Hoardings Newspapers Megazines Others INFERENCE Mostly people like to watch an advertisement through Television because most of them belongs to service class. Children are getting attracted through advertisement on television and hoardings. Company tries to give attractive advertisement through T. M.At the same time people like comedy.Dhoni. asin as a Brand Ambassador in chocolate advertisements. Sachin Tendulkar. 30 . Saniya Mirza. slow music & specially children like jingles in advertisements. suriya.S. Mostly people likes to see celebrities like Amitabh Bacchan.[7] What factors effects you in a chocolate advertisement? Brand ambassador Jingles Comedy Music Emotions Others (Mention) 60 30 45 40 20 05 EFFECTIVE FACTORS 70 60 50 40 30 20 10 0 Jingles Brand ambassador Comedy Music Emotions Others INFERENCE Good Brand Ambassador generally effects people s perception towards a product and create an image in their mind. Amul must use proper techniques in order to cater the needs of every common man. 31 .[8] Have you ever tasted Amul Chocolate? Yes No 90 % 10 % Ever Tasted 10% Yes No 90% INFERENCE The chart shows that 90% respondents have tasted Amul Chocolate. while still 10% have not tried Amul Chocolates. 32 . Therefore Amul must use strong promotional activities and advertisement in order to retain their potential consumers.[9] Can you recall AMUL Chocolate advertisement? Yes No 32 % 68 % Advertising Effectiveness 32% Yes No 68% INFERENCE Here it was observed that only 32% respondents in the city of madurai were able to recall Amul Chocolate advertisement. This shows how much Amul lags behind in promotional activities and advertisement. [10] Which Chocolate do you like most? Nestle Cadbury Amul Any other 28% 58% 13% 01% Market share 13% 1% 28% Nestle Cadbury Amul Any other 58% INFERENCE We can clearly gauge from the pie chart that Cadbury being on the top slot with 58% market share dominates the chocolate market. 33 . followed by Nestle with 28% share. whereas Amul have only 13% market share and thus lags behind. and there is a Hugh chunk of people who buy chocolate occasionally.[11] What is the frequency of purchasing Chocolate? Daily Weekly Fortnightly Occasionally 17 % 22 % 13 % 48 % Frequency of purchase 17 % 48% 22% 13% Daily Weekly Fortnightly Occasionally INFERENCE The frequency of chocolate differ a lot where 17% respondents buy it daily. 22% weekly. 34 . 13% fortnightly. 35 . [12] How do you scale your Chocolate? ATTRIBUTE POOR AVERAGE GOOD EXCELLENT PRICE 48% 22% 23% 07% SWEETNESS 20% 14% 20% 46% PACKAGING 33% 18% 12% 37% SOFTNESS 12% 16% 23% 49% SCHEMES 37% 13% 17% 33% AVAILABILITY 12% 15% 23% 50% 36 . LIMITATIONS Limited time available for interviewing the respondents. If the respondents answer does not falls between amongst the options given then it will turn up to be a biased answer. As a result of this it was not possible to gather full information about the respondents. sometimes they use to give answers under the influence of their parents or elders. Non-cooperative approach and rude behavior of the respondents. When I interviewed children and teenagers. As summer training is going under summer season so sometimes people are less interested in filling up questionnaire. 37 . toys. 38 . As I found that the main product of Amul is Milk and company firstly wants to capture maximum market share in milk market which is approx. There is lake of Sales Promotional Activities i. 88%. quiz contest etc. In its advertisement is not using any brand ambassador which attracts all age group people like Cadbury. When I interviewed people then many of the people can not recall Amul chocolate advertisement. It shows Lack of Advertisement or advertisement is not timely given or advertisement is not given on right time. Lack of Awareness in consumers.MY FINDINGS During the survey it was found that still there are 10% people who have not tasted Amul Chocolate. free tattoo. after it Amul is concentrating upon butter & cheese which has market share of approx. 66%.e. Many people are not know about Amul chocolates specially children and teenagers. so it is not concentrating upon chocolates. extra weight. 39 . I find the main thing is that Amul brand name has very good image in consumer s mind and they consider it as Pure & Good Product. Cadbury is main competitor and strategically better performer then Amul. SUGGESTIONS & CONCLUSIONS 40 . distribution. particularly regarding advertisement. Krrish. Saniya Mirza. Company should use brand ambassador which attracts each age segment i. Superman. Amul should give local advertisements apart from the advertisements given at the national level. are hereby suggested: First and foremost Amul should take proper action in order to improve service. Amitabh Bacchan.e. asin. because although being on a top slot in Butter and milk supplies it does not get the sales in chocolate. the following recommendations regarding Amul Chocolates. Local advertisement must mention the exclusive Amul shops of the city. promotional policies. which it should get. because they are the best source to reach Children and families. Jadoo. suriya. Try and change the perception of the people through word of mouth about Amul in advertisements. etc. Shaktimaan. Though Amul chocolate advertisements are rarely shown on television yet many people could recall it as per the data of research.SUGGESTIONS In order to maintain and increase the sales in the city of madurai. It shows that there is only need to give advertisement 41 . tattoo. free gifts etc. Company should launch chocolates in new flavors like Mix Fruit Pineapple Elaichi Coffee Strawberry Banana Mango 42 . Because Amul is very strong brand name. Advertisement can be done with the help of animations that attracts children and teenagers because chocolates are consumed largely in this segment. pranky.only to rememorize customers. Company should introduce sales promotion schemes like free weight. contest. Company should launch chocolate in new attractive packing to change image of Amul chocolate in consumers mind. the other players such as Cadbury.CONCLUSION As we know that Amul is very big organization and market leader in dairy products. which are its main/core products. The survey resulted into following conclusions : Amul must come up with new promotional activities such that people become aware about Amul Chocolates like Chocozoo. With the help of research. It has maximum market share in Milk. People have believed in Amul s product and they will accept its chocolates also if effective actions were taken. Nestle. and Perfetti provide a better availability and give competition to the hilt. but for the existence in the local market Amul must use aggressive selling techniques. and Fundoo. People are mostly satisfied with the overall quality of Amul Chocolate. As we know Amul is a cooperative organisaion but chocolate industry is a profitable industry we can t ignore it. but prompt availability of other chocolate brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales. 43 . Bindaaz. Quality is the dominating aspect which influences consumer to purchase Amul product. Butter and Cheese. company can find out its week points in chocolate product and can increase its market share through rectify mistakes. In comparison to Amul Chocolate. ANNEXURES 44 . ( Harper W.com 4.BIBLIOGRAPHY 1.amul.Boyd. C.dairy. www.com 3.amuldairy.marketresearch.com 6. www.com 5. www.google. Research Methodology. Kothari ) 45 . www. R.com 2. www. [1] What kind of Chocolate do you eat? Branded ______ Non-branded ______ [2] Who uses chocolates in your family? Children Young Teenager Old [3] What form of Chocolate do you like? Cookies _____ Wafer _____ Bar_____ Other _____ [4] Which Television channel you like to watch most? STAR VIJAY _______ SUN Others _______ _______ ZEE TAMIL________ CARTOON ________ 46 .APPENDIX QUESTIONNAIRE I am a student of MBA from VELAMMAL conducting COLLEGE a survey OF on ENGINNERING AND TECHNOLOGY Effectiveness of AMUL CHOCOLATES advertising towards its sales. [5] In between what time you like to watch television? Timings _____________ [6] By which media you prefer to watch advertisements? Television Newspapers Others (Mention) Hoardings Magazines [7] Which advertisement you like the most? _______________ [8] What factors effects you in a chocolate advertisement? Brand ambassador _______ Comedy Others (Mention) _______ _______ Jingles ________ Music ________ [9] Have you ever tasted Amul Chocolate? Yes_____ No ______ [10] Can you recall AMUL Chocolate advertisement? Yes ____ No ____ [11] What is the frequency of purchasing Chocolate? Daily ______ Weekly _______ Fortnightly ______ Occasionally_______ 47 . [12] How do you scale your Chocolate? ATTRIBUTE POOR AVERAGE GOOD EXCELLENT PRICE SWEETNESS PACKAGING SOFTNESS SCHEMES AVAILABILITY [13] Which Chocolate do you like most? AMUL CADBURY NESTLE PERFETTI OTHERS ____________ ____________ ____________ ____________ ____________ 48 . [14] What would you like to see in a chocolate advertisement? ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________ NAME: ___________ AGE: ___________ 10-15 15-25 25-35 35-45 45 and above THANK YOU _________________ ______________ ____________ 49 .