Table of Contents

1 Introduction:.......................................................................................................................3
1.1 Introduction to the Problem / Opportunity:.................................................................3
1.2 Background of the Study:............................................................................................3
1.3 Statement of the Problem:...........................................................................................3
1.4 Purpose of the Study:...................................................................................................3
1.5 Rationale:.....................................................................................................................4
1.6 Research Objectives:...................................................................................................4
1.7 Primary Research:.......................................................................................................4
1.8 Secondary Research Objective:...................................................................................5
2 Literature Review / Secondary Research...........................................................................6
2.1 About the sector:..........................................................................................................6
2.1.1 Market Size..........................................................................................................6
2.1.2 Market Share........................................................................................................6
2.1.3 Sector Contribution to GDP.................................................................................6
2.1.4 Sector Composition:.............................................................................................6
2.1.5 Sector & Sector Composition CAGR..................................................................6
2.1.6 Sector & Sector Composition growth/de-growth catalyst...................................6
2.1.7 Government Initiatives & FDI:............................................................................6
2.1.8 Porter 5 Force Model Analysis:...........................................................................7
2.1.9 Macro Environmental Analysis:..........................................................................7
2.1.10 Micro Environmental Analysis:...........................................................................8
2.2 About the company:....................................................................................................9
2.2.1 Brief History and Introduction company:............................................................9
2.2.2 Brief notes on Top Management:.........................................................................9
2.2.3 Companies Product:.............................................................................................9
2.2.4 Michael Porter Value chain Analysis:................................................................10
2.2.5 Market Penetration of product...........................................................................10
2.2.6 Segment, Target & Positioning:.........................................................................11
2.2.7 Sales & Distribution Channels:..........................................................................12
2.2.8 Concept of Margin: GMROI & ROI of Product / Service.................................12
2.2.9 Promotional Mix of Amul Product:...................................................................13
2.2.10 Recent Merger:...................................................................................................13
2.2.11 Acquisition:........................................................................................................13
 2.3 Application of Marketing Tools................................................................................13
2.3.1 SWOT:...............................................................................................................13
2.3.2 BCG Matrix:.......................................................................................................14
2.3.3 4P’s Marketing Mix:..........................................................................................14
2.3.4 PLC:...................................................................................................................15
2.3.5 Product -Unique Selling Propositions:...............................................................15
2.3.6 The McKinsey 7S Framework:..........................................................................16
3 Research Methodology.....................................................................................................17
3.1 Research Objectives:.................................................................................................17
3.2 Research Design:.......................................................................................................17
3.3 Constructs:.................................................................................................................17
3.4 Variables:...................................................................................................................18
3.5 Theoretical Framework:............................................................................................19
3.6 Conceptual Framework:............................................................................................19
3.7 Questionnaire design - Developed (if developed used 7 step process):....................20
3.8 Hypotheses:...............................................................................................................20
3.9 Sample and Selection Criteria:..................................................................................21
3.10 Data Collection:.....................................................................................................21
3.11 Statistical Tools used with Justification:...............................................................21
4 Data Analysis and Interpretation......................................................................................21
1 Introduction:
1.1 Introduction to the Problem / Opportunity:
The retail industry plays a crucial role in the distribution and marketing of consumer goods,
including fresh food products. In India, Amul is a well-known brand in the dairy industry,
offering a wide range of fresh milk and milk-based products. The objective of this study is to
investigate the perception and behavior of retailers towards Amul's fresh product division.
This research aims to understand the factors that influence retailer's decision-making in
stocking and promoting Amul's fresh products, as well as the challenges they face in doing
so. The findings of this study will provide valuable insights for Amul and other fresh food
product manufacturers to improve their distribution and marketing strategies in the retail
sector.
1.2 Background of the Study:
The dairy industry in India has been growing rapidly in recent years, driven by increasing
demand for milk and milk-based products. According to the National Dairy Development
Board, India is the world's largest milk producer, with an annual production of around 180
million tonnes. Among the major players in the Indian dairy industry, Amul is one of the
most well-known and respected brands.
Amul, which stands for Anand Milk Union Limited, is a cooperative society that was formed
in 1946 to promote the interests of milk producers in Gujarat, India. Today, Amul is a leading
brand in the Indian dairy industry, with a wide range of fresh milk and milk-based products,
including butter, cheese, ice cream, and paneer.
However, despite its strong brand and wide range of products, Amul faces challenges in the
retail sector. Many retailers have limited space and resources to stock and promote fresh
products, and may be hesitant to carry Amul's products due to concerns about shelf life,
storage, and distribution. Additionally, retailers may have perceptions about the quality,
price, and value of Amul's products that may affect their decision-making.
This study aims to investigate the perception and behavior of retailers towards Amul's fresh
product division, and to understand the factors that influence their decision-making in
stocking and promoting Amul's fresh products. The findings of this study will provide
valuable insights for Amul and other fresh food product manufacturers to improve their
distribution and marketing strategies in the retail sector.
1.3 Statement of the Problem:
The problem addressed in this study is the lack of understanding of the perception and
behavior of retailers towards Amul's fresh product division. Despite Amul's strong brand and
wide range of fresh milk and milk-based products, there are challenges in the retail sector that
may affect the decision of retailers to stock and promote Amul's products. These challenges
may include limited space and resources for fresh products, concerns about shelf life and
storage, and perceptions about the quality, price, and value of Amul's products.
The main research question for this study is: What are the factors that influence the
perception and behavior of retailers towards Amul's fresh product division, and how do these
factors affect the decision of retailers to stock and promote Amul's products?
1.4 Purpose of the Study:
The purpose of this study is to understand the perception and behavior of retailers towards
Amul's fresh product division and the factors that influence their decision-making in stocking
and promoting Amul's fresh products. The study aims to provide insights into the challenges
faced by retailers in stocking and promoting Amul's products, and recommend strategies for
Amul and other fresh food product manufacturers to improve their distribution and marketing
in the retail sector. This research is expected to contribute to the body of knowledge on the
retail industry by providing a deeper understanding of the challenges faced by retailers in
relation to fresh food products, specifically those offered by Amul. Additionally, this study
will provide practical insights for Amul and other fresh food product manufacturers on how
to improve their distribution and marketing strategies in the retail sector.
1.5 Rationale:
The growing significance of the retail sector in the Indian dairy industry served as the
justification for conducting this study on retailers' perceptions of and behaviors toward
Amul's fresh product division. Amul, a well-known brand in the Indian dairy industry, offers
a variety of fresh milk and milk-based products, but the retail market is difficult. Retailers
may lack the space and funds to stock and advertise fresh products, and they may be reluctant
to carry Amul's products due to worries about shelf life, storage, and distribution.
Additionally, the perceptions of retailers regarding the worth, cost, and quality of Amul's
products may have an impact on their choices.
To improve their distribution and marketing strategies in the retail sector, Amul and other
fresh food product manufacturers need to understand how retailers view and behave toward
their fresh product division. The study will offer valuable insights for Amul and other fresh
food product manufacturers on how to overcome the difficulties encountered in the retail
sector and increase their market share by examining the factors that influence retailers'
decisions to stock and promote Amul's fresh products.
Additionally, this study will add to the body of knowledge about the retail sector by
elucidating the difficulties faced by retailers when selling fresh food items, particularly those
supplied by Amul. For other fresh food product producers, retailers, and policy makers in the
dairy industry, the study's findings will be helpful.
1.6 Research Objectives:
 To understand the perceptions of retailers towards Amul's fresh product division in
terms of product quality, price, and value.
 To identify the factors that influence the decision of retailers to stock and promote
Amul's fresh products.
 To explore the challenges faced by retailers in stocking and promoting Amul's fresh
products.
1.7 Primary Research:
The primary research for this study will involve a quantitative to gather data on retailer's
perception and behavior towards Amul's fresh product division.
Quantitative research methods:
 Surveys: Surveys will be distributed to a sample of retailers who sell Amul's fresh
products in order to gather quantitative data on their perceptions and behaviors
 towards the products. The survey will include questions on product quality, price,
value, and factors that influence their decision to stock and promote Amul's fresh
products.
 Data Analysis: The data collected from the surveys will be analyzed using statistical
methods to identify patterns and trends in retailer's perceptions and behaviors towards
Amul's fresh product division.
1.8 Secondary Research Objective:
The secondary research objective for this study on retailer's perception and behavior towards
Amul's fresh product division is to gather existing data and literature on the subject in order
to provide a comprehensive understanding of the research problem and context. The
secondary research will include:
 Literature Review: A thorough review of the existing literature on retailer's perception
and behavior towards fresh food products, specifically those offered by Amul, will be
conducted. This will include academic articles, reports, and other relevant sources.
The literature review will provide an understanding of the current state of research on
the topic and identify any gaps in the existing literature that the study aims to fill.
 Data Collection: Data on the Indian dairy industry and the retail sector will be
collected from various sources such as industry reports, government publications, and
online databases. This data will provide a context for the study by providing
information on the size, growth, and trends of the industry and the retail sector in
India.
 Benchmarking: Benchmarking of the Amul's fresh product division with other leading
brands in the Indian dairy industry will be conducted in order to understand the
performance and competitiveness of the products in the market.
The secondary research will be conducted through desk research, which includes literature
review and data collection from various sources such as academic journals, industry reports,
government publications, and online databases.
The secondary research will provide a comprehensive understanding of the research problem
and context, and will also provide a basis for comparison for the findings of the primary
research.
2 Literature Review / Secondary Research
2.1 About the sector:
2.1.1 Market Size
2.1.2 Market Share
2.1.3 Sector Contribution to GDP
2.1.4 Sector Composition:
A variety of goods, including food and drink, cosmetics, and household goods, are included
in the fast-moving consumer goods (FMCG) market in India.
 Food and Beverages: This market segment consists of packaged foods, sweets,
snacks, and non-alcoholic beverages. By 2020, it will make up about 45% of the
entire Indian FMCG market, making it the largest segment of the market.
 Products for personal care, including soap, shampoo, toothpaste, and skin care items,
are included in this category. It is a segment that is expanding quickly, with a
compound annual growth rate (CAGR) of 12% between 2015 and 2020.
 Household Care: This category includes items for the home like insecticides, cleaning
supplies, and detergents. It is a market that is expanding quickly, with a CAGR of
15% from 2015 to 2020.
 Other Segments: The FMCG industry also consists of a number of other segments,
including those for tobacco, healthcare, and over-the-counter (OTC) goods.
The Indian FMCG industry is diverse overall and provides a large selection of goods to
satisfy consumer demand. While the personal care and household segments are expanding
quickly, the food and beverage segment is the largest. The other market segments are also
significant and are anticipated to continue expanding in the future.
2.1.5 Sector & Sector Composition CAGR
2.1.6 Sector & Sector Composition growth/de-growth catalyst
2.1.7 Government Initiatives & FDI:
The Indian government has taken several initiatives to promote the growth of the fast-moving
consumer goods (FMCG) sector in the country.
 Ease of Doing Business: The government has implemented several measures to
improve the ease of doing business in the country, including the simplification of
regulations and the reduction of red tape. This has made it easier for FMCG
companies to set up and operate in India.
 Foreign Direct Investment (FDI): The government has also liberalized the FDI policy
for the FMCG sector, allowing 100% FDI under the automatic route for most
products. This has made it easier for foreign companies to invest in the Indian FMCG
market.
 Make in India: The government's 'Make in India' initiative aims to promote the
manufacturing of goods in India and increase the share of manufacturing in the
country's GDP. This initiative is expected to benefit the FMCG sector as it will make
it easier for companies to set up manufacturing facilities in India.
  Digital India: The government's 'Digital India' initiative aims to increase the use of
digital technologies in the country, including in the FMCG sector. This is expected to
make it easier for FMCG companies to reach and engage with consumers.
 Skill India: The government's 'Skill India' initiative aims to train and equip the
workforce with the necessary skills to meet the demands of different sectors,
including the FMCG sector.
Overall, the Indian government has taken several initiatives to promote the growth of the
FMCG sector in the country, including measures to improve the ease of doing business,
liberalize FDI policy and promote digital and manufacturing of goods in India. These
initiatives are expected to benefit the FMCG sector in the long run.
2.1.8 Porter 5 Force Model Analysis:
The Porter Five Forces Model is a framework that helps to analyze the competitive dynamics
of an industry. It can be used to analyze the FMCG (Fast-moving consumer goods) sector to
understand the factors that shape competition and profitability in the market. The five forces
in the model are:
 Threat of New Entrants: The threat of new entrants in the FMCG sector is relatively
low. The sector is highly consolidated, with a few large players dominating the
market. It can be difficult for new entrants to compete with these established players
in terms of economies of scale, distribution networks, and brand recognition.
Additionally, the high level of investment required to enter the market, including the
need to build manufacturing and distribution facilities, also acts as a barrier to entry.
 Threat of Substitutes: The threat of substitutes in the FMCG sector is relatively low.
Most FMCG products have few close substitutes, and consumers are likely to
continue purchasing these products even if prices increase.
 Bargaining Power of Suppliers: The bargaining power of suppliers in the FMCG
sector is relatively low. Most FMCG companies have a large number of suppliers, and
the cost of switching suppliers is relatively low. Additionally, many FMCG products
are made from commodity inputs, which are widely available and easily substitutable.
 Bargaining Power of Buyers: The bargaining power of buyers in the FMCG sector
is relatively high. Many FMCG products are sold through retail channels, which are
dominated by a few large retailers. These retailers have significant bargaining power
over FMCG companies, as they can choose which products to stock and at what price
to sell them.
 Competitive Rivalry: The competitive rivalry in the FMCG sector is high. The sector
is highly consolidated, with a few large players dominating the market. These players
compete fiercely for market share and engage in price wars, promotional campaigns,
and other forms of competition. Additionally, the sector is characterized by intense
competition from smaller and emerging players.
Overall, the Porter Five Forces Model analysis suggests that the FMCG sector is a relatively
competitive market with a few large players dominate the market, low threat of new entrants,
low threat of substitutes and high bargaining power of buyers. However, the competitive
rivalry among the players is high, resulting in intense competition in the market.
2.1.9 Macro Environmental Analysis:
Macro environmental analysis is a process of evaluating the factors that are outside of a
company's direct control, but that have a significant impact on its business operations. A
macro environmental analysis of the FMCG (Fast-moving consumer goods) sector would
include the following factors:
 Economic: The FMCG sector is highly sensitive to economic conditions, such as
GDP growth, inflation, and unemployment. Understanding the current and future
economic conditions is critical for FMCG companies.
 Demographic: The FMCG sector is highly sensitive to demographic factors, such as
population size, age distribution, and income levels. Understanding the demographic
profile of target markets is critical for FMCG companies.
 Political/Legal: The FMCG sector is subject to a wide range of political and legal
regulations, such as trade barriers, tariffs, and environmental regulations.
Understanding the political and legal environment is critical for FMCG companies.
 Technological: The FMCG sector is highly sensitive to technological changes, such
as advancements in packaging, transportation, and communication. Understanding the
technological environment is critical for FMCG companies.
 Sociocultural: The FMCG sector is highly sensitive to sociocultural factors, such as
consumer attitudes, beliefs, and values. Understanding the sociocultural environment
is critical for FMCG companies.
 Natural: The FMCG sector is highly sensitive to the natural environment, such as
weather conditions, climate change, and natural resources availability. Understanding
the natural environment is critical for FMCG companies.
Overall, Macro environmental analysis is a comprehensive approach to understanding the
factors that shape competition and profitability in the FMCG sector. It includes the factors
that are outside of a company's direct control, but that have a significant impact on its
business operations. This analysis helps FMCG companies to understand the current and
future economic conditions, demographic profile of target markets, political and legal
environment, technological environment, sociocultural environment, and natural
environment.
2.1.10 Micro Environmental Analysis:
Micro environmental analysis is a process of evaluating the factors that are close to a
company and that have direct impact on its business operations. A micro environmental
analysis of the FMCG (Fast-moving consumer goods) sector would include the following
factors:
 Customers: The FMCG sector serves a wide range of customers, including
households, small businesses, and large organizations. Understanding the needs,
preferences, and buying behavior of these different customer segments is critical for
FMCG companies.
 Suppliers: The FMCG sector relies on a large number of suppliers for raw materials,
packaging, and other inputs. Understanding the strengths and weaknesses of these
suppliers is critical for FMCG companies.
  Competitors: The FMCG sector is highly competitive, with a large number of
players competing for market share. Understanding the strategies and capabilities of
competitors is critical for FMCG companies.
 Distribution Channels: The FMCG sector relies on a wide range of distribution
channels, including supermarkets, convenience stores, and e-commerce platforms.
Understanding the strengths and weaknesses of different distribution channels is
critical for FMCG companies.
 Publics: The FMCG sector is subject to a wide range of public scrutiny, including
customers, regulators, and the media. Understanding the concerns and perceptions of
these publics is critical for FMCG companies.
 Internal Factors: The FMCG sector is subject to a wide range of internal factors that
can have a direct impact on business operations, including the company's culture,
structure, and processes. Understanding the strengths and weaknesses of internal
factors is critical for FMCG companies.
Overall, Micro environmental analysis is a comprehensive approach to understanding the
factors that shape competition and profitability in the FMCG sector. It includes the factors
that are close to a company and that have direct impact on its business operations. This
analysis helps FMCG companies to understand the needs, preferences, and buying behavior
of customers, the strengths and weaknesses of suppliers, the strategies and capabilities of
competitors, the strengths and weaknesses of different distribution channels, the concerns and
perceptions of publics, and the strengths and weaknesses of internal factors.
2.2 About the company:
2.2.1 Brief History and Introduction company:
In India, the dairy industry is known by the brand name Amul. With the assistance of Dr.
Verghese Kurien, known as the "Father of the White Revolution" in India, a group of farmers
from the state of Gujarat established the business in 1946.
The beginnings of Amul can be found in the 1940s, a period of low milk production and
subpar milk quality in the nation. A dairy development officer for the Indian government, Dr.
Kurien assisted Gujarati farmers in establishing the Kaira District Cooperative Milk
Producers Union. This union, the first of its kind in the nation, served as the impetus for the
creation of the Amul brand.
Just two village dairy cooperatives and 245 liters of milk were used when Amul (Anand Milk
Union Limited) first started operations in 1946. With over 3.6 million milk producers and a
yearly turnover of over US $2 billion, it is currently one of the biggest and most successful
dairy cooperatives in the world.
The success of Amul can be attributed to Dr. Dot Kurien's vision of empowering small
farmers and providing them with a just share of the profits. His cooperative business model
made it possible to do away with middlemen and guarantee that milk producers were paid
fairly.
Amul is a well-known brand of dairy products in India today and sells a variety of items like
milk, butter, cheese, ice cream, and more. Additionally, the company has grown
internationally, with more than 60 nations receiving its exports. The accomplishments of
Amul serve as an example for other agricultural cooperatives and farmers worldwide.
2.2.2 Brief notes on Top Management:
2.2.3 Companies Product:
Amul offers a wide range of dairy products, including:
 Milk: Amul offers a variety of milk products, including toned milk, double-toned
milk, full-cream milk, and flavored milk.
 Butter: Amul is well-known for its high-quality butter, which is available in different
varieties and packaging options.
 Cheese: Amul offers a range of cheese products, including cheddar cheese,
mozzarella cheese, and processed cheese.
 Ice Cream: Amul has a wide range of ice cream flavors and products, including cups,
cones, and bars.
 Paneer: Amul offers fresh, high-quality paneer that is used in a variety of Indian
dishes.
 Milk Powder: Amul offers milk powder that is made from high-quality milk and is
used in a variety of food and beverage applications.
 Ghee: Amul offers traditional, high-quality ghee that is made from pure butter.
In addition to these dairy products, Amul also offers a range of non-dairy products, including
dairy whitener, chocolates, and health drinks. Amul is committed to providing high-quality
products and services that meet the needs of its customers and members.
2.2.4 Michael Porter Value chain Analysis:
Michael Porter's Value Chain Analysis is a tool used to analyze a company's internal
processes and activities to understand how they create value for its customers. When applied
to Amul, the Value Chain Analysis can help to identify the key drivers of competitiveness
and profitability for the company.
The following are the key components of Amul's Value Chain Analysis:
 Inbound Logistics: Amul has an extensive network of collection centers and dairy
farms where it sources raw milk from. The company also has strong partnerships with
suppliers to ensure that it has access to high-quality raw materials.
 Operations: Amul has state-of-the-art processing facilities that are equipped with the
latest technology to ensure high-quality products. The company has a strong focus on
efficiency and productivity in its operations, which helps to keep costs low and
improve profitability.
 Outbound Logistics: Amul has a well-developed distribution network that includes a
large network of retailers and wholesalers. The company also has a strong focus on
delivering products to customers in a timely and efficient manner.
 Marketing and Sales: Amul has a strong brand image and is well-known for its high-
quality dairy products. The company has a range of marketing and sales activities to
promote its products and reach new customers.
 Service: Amul provides excellent customer service and support to its customers,
which helps to build strong relationships and create customer loyalty.
 Procurement: Amul has a strong focus on procurement and has a team of
professionals who are responsible for sourcing raw materials and managing supplier
relationships.
  Technology Development: Amul invests in technology and innovation to
continuously improve its processes and product offerings. This helps to maintain a
competitive advantage and improve profitability.
Overall, the Value Chain Analysis of Amul highlights the key drivers of competitiveness and
profitability for the company. By focusing on these areas, Amul can continue to create value
for its customers and achieve long-term success.
2.2.5 Market Penetration of product
2.2.5.1 Rural:
Amul's market penetration in the rural area is driven by its wide reach, affordable prices,
awareness programs, customized products, and direct sales strategy. The company has been
successful in gaining a significant market share in the rural area and is well-positioned for
continued growth in the future.
2.2.5.2 Semi Urban:
The market penetration of Amul's products in semi-urban areas will depend on several
factors, including the company's distribution network, competition, consumer behaviour,
level of awareness, and demographic characteristics of the area. A detailed study of these
factors and an analysis of the market would be required to accurately determine the market
penetration of Amul in semi-urban areas.
2.2.5.3 Urban:

2.2.6 Segment, Target & Positioning:

2.2.6.1 Segment:
Amul segments its market based on various demographic, psychographic, and geographic
factors. Some of the key segments that Amul targets include:
 Geographical Segmentation: Amul divides its market into urban and rural areas and
offers products that are specifically designed to meet the needs and preferences of
each segment.
 Demographic Segmentation: Amul segments its market based on age, income,
gender, and family size. For example, the company targets families with young
children with its range of dairy-based products, such as flavored milk and ice creams.
 Psychographic Segmentation: Amul segments its market based on lifestyle,
personality, values, and attitudes. For example, the company targets health-conscious
consumers with its low-fat and high-protein products, such as skimmed milk and
yogurt.
By segmenting its market, Amul is able to better understand the unique needs and preferences
of its customers, and tailor its products and marketing efforts to meet those needs. This helps
the company to achieve greater customer satisfaction and increased market share.
2.2.6.2 Target:
Amul targets customers across various segments, including:
 Urban and Rural Consumers: Amul's products are available across both urban and
rural areas, with a range of dairy-based products that cater to the needs and
preferences of each segment.
  Families: Amul targets families with its range of dairy-based products, such as milk,
yogurt, cheese, and ice creams, which cater to the needs of both adults and children.
 Health-conscious Consumers: Amul targets health-conscious consumers with its
range of low-fat and high-protein products, such as skimmed milk, yogurt, and lassi.
 Young Adults: Amul targets young adults with its range of flavored milk and ice
creams, which are popular among this segment
 Office-goers: Amul targets office-goers with its range of convenient and on-the-go
dairy products, such as milk-based drinks and cheese-based snacks.
By targeting these customer segments, Amul is able to better understand the unique needs
and preferences of its customers and tailor its products and marketing efforts to meet those
needs. This helps the company to achieve greater customer satisfaction and increased market
share.
2.2.6.3 Positioning:
Amul positions its various dairy products based on the specific needs and preferences of its
target segments.
For example, Amul Butter is positioned as a premium quality butter that is made from pure
and fresh milk, with a rich and creamy taste.
Amul Cheese is positioned as a versatile and convenient product that can be used in a variety
of dishes, and is suitable for both vegetarians and non-vegetarians.
Amul Milk is positioned as a healthy and nutritious beverage that is made from pure and
fresh milk, and is suitable for people of all ages.
Amul Ice Creams are positioned as a fun and indulgent treat that is perfect for all occasions.
In general, Amul positions its products based on the quality, convenience, and affordability of
its offerings, which has helped to establish the brand as a leader in the Indian dairy market.
2.2.7 Sales & Distribution Channels:
Amul uses a multi-channel distribution strategy to reach its customers. The company's sales
and distribution channels include:
 Direct Sales: Amul has a direct sales force that sells its products to retailers and
institutions such as hotels, restaurants, and canteens.
 Retail Outlets: Amul has a strong retail network, with its products sold in
supermarkets, grocery stores, and independent retailers across India.
 Online Sales: Amul has an online presence, where customers can purchase its
products through its website, as well as through various online marketplaces.
 Distributors and Wholesalers: Amul products are also sold through a network of
distributors and wholesalers, who stock the products and supply them to retailers.
 Co-operative Network: Amul is a co-operative organization, and its products are
also sold through a network of co-operative stores across India.
The company has a strong distribution network, which enables it to reach a wide range of
customers in both urban and rural areas, and helps to ensure the availability of its products in
all parts of the country.
2.2.8 Concept of Margin: GMROI & ROI of Product / Service
2.2.8.1 GMROI of Product:
GMROI (Gross Margin Return on Investment) is a measure of the return generated from an
investment, expressed as a percentage of the investment. In the case of Amul, GMROI for its
products can be calculated as:
GMROI = (Gross Margin / Total Inventory Investment) * 100
Where Gross Margin is the difference between the selling price and the cost of goods sold,
and Total Inventory Investment is the value of the inventory held by the company.
2.2.8.2 ROI of Product:
ROI (Return on Investment) is a measure of the profitability of an investment, expressed as a
percentage of the investment. In the case of Amul, ROI for its products can be calculated as:
ROI = (Net Income / Total Investment) * 100
Where Net Income is the profit generated from the sale of the product, and Total Investment
is the value of the investment made by the company in the product, including costs such as
research and development, production, marketing, and distribution.

2.2.9 Promotional Mix of Amul Product:

The promotional mix for Amul products typically includes various elements such as:
 Advertising: Amul has a strong brand image and uses a variety of media to promote
its products, including print, television, and digital media.
 Sales Promotion: Amul offers discounts, contests, and other incentives to drive sales
and encourage customer loyalty.
 Public Relations: Amul participates in various community events and activities to
maintain a positive image and build a strong relationship with consumers.
 Personal Selling: Amul has a dedicated sales team that visits retailers, distributors,
and customers to promote its products and provide support.
 Direct Marketing: Amul uses direct mail, email, and other direct marketing tools to
reach customers and promote its products.
Each element of the promotional mix is carefully selected and integrated to achieve specific
marketing objectives and reach target customers effectively.
2.2.10 Recent Merger:
A multi-state cooperative society (MSCS), made up of Amul and five other cooperative
societies, will be created. The process to combine Amul and five other cooperative societies
to form a multi-state cooperative society has begun in order to certify natural products.
Natural agriculture and digital agriculture are priorities for the government led by Prime
Minister Narendra Modi. As soon as the products are certified, the MSCS will ensure their
export, allowing the farmers to receive their profits in full.
2.2.11 Acquisition:
2.3 Application of Marketing Tools
2.3.1 SWOT:
Strengths:
1. Strong brand recognition and reputation.
2. Wide distribution network.
3. Strong cooperative structure and support to farmers.
4. Diverse product portfolio, including dairy products, ice cream, and confectionery.
5. High-quality products and strict adherence to quality standards.
Weaknesses:
1. Limited international presence and market penetration.
2. Dependence on local raw material procurement, which can be affected by weather and
disease.
3. Relatively high cost of products compared to competitors.
Opportunities:
1. Growing demand for dairy products globally.
2. Expansion into new markets, including international markets.
3. Increasing demand for premium and organic dairy products.
4. Opportunities for product innovation and line extensions.
Threats:
1. Intense competition from other dairy brands and private label products.
2. Fluctuations in raw material prices, particularly for milk.
3. Government regulations and policies affecting the dairy industry.
4. Climate change and its impact on milk production and procurement.

2.3.2 BCG Matrix:

2.3.3 4P’s Marketing Mix:
 Product:
Amul offers a wide range of dairy products, including:
I. Milk
II. Butter
III. Cheese
IV. Ice cream
V. Confectionery items (e.g. sweets, chocolate)
The company emphasizes quality, safety, and nutritional value in its products, using
processes such as pasteurization, homogenization, and strict adherence to food safety
regulations. Amul also offers a diverse range of products to cater to different consumer
preferences and needs.
 Price:
Amul's pricing strategy is based on affordability and competitiveness in the market. The
company aims to balance the cost of production and the price of the product to attract and
retain customers. Also, give the best margin to farmers. Amul is known for providing high-
quality dairy products at affordable prices, which has helped to increase its customer base and
strengthen its brand reputation. The company also offers discounts and promotions from time
to time to attract new customers and retain existing ones.
 Place:
Amul has a wide distribution network that includes:
I. Modern trade: Supermarkets, hypermarkets, and convenience stores
II. General trade: Wholesale and retail shops
III. Rural and remote areas: Through a network of distributors and cooperative societies
The company has its own dairy plants and a network of distributors to ensure the availability
of its products in different regions. Amul also has partnerships with retailers, such as
supermarkets and hypermarkets, to increase the visibility of its products. This wide
distribution network helps to ensure that Amul products are easily accessible to consumers
across India.
 Promotion:
Amul uses a mix of advertising, sales promotion, public relations, and personal selling to
communicate with its customers. The company's marketing efforts are aimed at promoting
the quality, safety, and nutritional value of its products.

 Advertising: Amul uses traditional media such as television, print, and outdoor
advertising, as well as digital media, to reach its target audience. The company's
advertising campaigns emphasize the quality and nutritional value of its products.
 Sales promotion: Amul offers discounts, coupons, and special promotions from time
to time to attract new customers and retain existing ones.
 Public relations: Amul participates in trade shows and exhibitions, sponsors events,
and collaborates with organizations to increase brand visibility and awareness.
 Personal selling: Amul's sales representatives visit retailers and distributors to
promote the company's products and to establish strong relationships with customers.
2.3.4 PLC:
2.3.5 Product -Unique Selling Propositions:
Amul has several unique selling propositions (USP) that set its products apart from its
competitors:
 Quality: Amul is known for its high-quality dairy products, which are made from
fresh milk sourced directly from farmers.
 Nutritional value: Amul's products are rich in nutrients, such as calcium, protein, and
vitamins, making them a healthy choice for consumers.
  Affordable pricing: Amul's products are competitively priced, making them
accessible to a wide range of consumers.
 Wide range of products: Amul offers a wide range of dairy products, including milk,
butter, cheese, ice cream, and other dairy-based products, which cater to the diverse
needs and preferences of consumers.
 Strong brand recognition: Amul has a strong brand image and recognition, which
helps to build consumer trust and loyalty.
 Strong distribution network: Amul has a wide distribution network, including its
own dairy plants and a network of distributors, which helps to ensure the availability
of its products across India.
 Social responsibility: Amul is committed to supporting farmers and rural
communities, and has implemented several initiatives to promote sustainable
agriculture and rural development.
2.3.6 The McKinsey 7S Framework:
The McKinsey 7S Framework is a management tool used to assess the alignment of seven
key elements within an organization. The seven elements of the framework are: strategy,
structure, systems, shared values, skills, staff, and style.
The McKinsey 7S Framework of Amul could be analyzed as follows:
 Strategy: Amul has a clear strategy of providing high-quality dairy products at
affordable prices, which has helped it to establish a strong market position and
reputation.
 Structure: Amul has a cooperative structure, which allows it to involve farmers
directly in the decision-making process and to ensure that their interests are aligned
with the company's objectives.
 Systems: Amul has implemented a number of systems, such as quality control
processes, supply chain management, and marketing and distribution systems, which
help it to operate effectively and efficiently.
 Shared values: Amul has a strong culture of social responsibility and is committed to
supporting farmers and rural communities. This shared value is reflected in its
practices and initiatives.
 Skills: Amul has a highly skilled workforce, including experts in dairy technology,
marketing, and distribution, which helps it to maintain its competitive advantage.
 Staff: Amul has a dedicated and committed staff who are dedicated to delivering
high-quality products and services to its customers.
 Style: Amul has a collaborative and participative style, which involves farmers in the
decision-making process and fosters a sense of ownership and commitment.
Overall, the McKinsey 7S Framework suggests that Amul has a strong alignment between its
key elements, which contributes to its success and helps it to maintain its competitive
advantage.
3 Research Methodology
3.1 Research Objectives:
 To understand the perceptions of retailers towards Amul's fresh product division in
terms of product quality, price, and value.
 To identify the factors that influence the decision of retailers to stock and promote
Amul's fresh products.
 To explore the challenges faced by retailers in stocking and promoting Amul's fresh
products.
3.2 Research Design:
 Research Objective: To understand retailer's perception and behavior towards Amul
fresh product division
 Study Design: Cross-sectional survey using a structured questionnaire
 Sample Size: A sample of retail outlets selling Amul products in a specific geographic
region
 Data Collection Method: Self-administered questionnaire or face-to-face survey with
the retailer
 Data Analysis: Descriptive statistics and inferential statistics (e.g. chi-square test,
regression analysis)
 Study Limitations: Potential response bias, limited generalizability to other
regions/retailers
 Ethical Considerations: Confidentiality of respondents' information, informed
consent, voluntary participation.
3.3 Constructs:
Constructs: Constructs are the underlying concepts or factors that are being measured in a
study. For a study on retailer's perception and behavior towards Amul fresh product division,
some relevant constructs could be:
 Product Quality: This construct refers to the perceived taste, freshness, and quality
of Amul fresh products.
 Customer Satisfaction: This construct refers to the retailer's overall satisfaction with
Amul fresh products and their level of customer demand in their retail store.
 Delivery and Packaging: This construct refers to the reliability of delivery and the
perceived quality of the packaging of Amul fresh products.
 Pricing: This construct refers to the perceived competitiveness of the pricing of Amul
fresh products compared to other similar products in the market.
 Support and Assistance: This construct refers to the perceived level of support and
assistance provided by the Amul Fresh Product Division to retailers.
 Product Fit: This construct refers to the retailer's perception of the fit of Amul fresh
products with their retail store and customer demand.
  Return and Rejection: This construct refers to the frequency of returns or rejections
of Amul fresh products due to spoilage or quality issues.
3.4 Variables:
Variables: Variables are the specific aspects of the constructs that are being measured. For a
study on retailer's perception and behavior towards Amul fresh product division, some
relevant variables could be:
1. Product Quality:
 Taste
 Freshness
 Quality
2. Customer Satisfaction:
 Overall satisfaction
 Customer demand
3. Delivery and Packaging:
 Delivery reliability
 Packaging quality
4. Pricing:
 Price competitiveness
 Comparison to similar products
5. Support and Assistance:
 Level of support and assistance
 Availability of customer service
6. Product Fit:
 Fit with retail store
 Fit with customer demand
7. Return and Rejection:
 Frequency of returns or rejections
 Reasons for returns or rejections
1. Independent Variables:
 Demographic characteristics of retailers (age, gender, education level,
years of experience, etc.)
 Store characteristics (size, location, type, etc.)
 Marketing activities by Amul (promotions, advertisements, etc.)
2. Dependent Variables:
 Retailer's perception of Amul fresh product division (quality, value for
money, brand image, etc.)
  Retailer's behavior towards Amul fresh product division (purchasing
frequency, product range, etc.)
3. Intervening Variables:
 Retailer's attitude towards Amul fresh product division
 Retailer's beliefs about Amul fresh product division
 Retailer's subjective norms towards Amul fresh product division.

3.5 Theoretical Framework:

The theoretical framework for a study on retailer's perception and behavior towards Amul
fresh product division can be based on the following concepts:
 Perception: The study can explore the retailer's perception of the Amul fresh product
division in terms of product quality, brand image, and marketing strategies.
 Attitude: The study can analyze the retailer's attitude towards Amul fresh products,
including their willingness to stock and sell the products.
 Consumer behavior: The study can examine the retailer's behavior towards Amul
fresh products, including their purchasing decisions, frequency of purchase, and
marketing efforts.
 Trust: The study can investigate the retailer's level of trust in Amul fresh products
and the brand, which can influence their perception and behavior.
 Market factors: The study can consider market factors, such as competition and
consumer demand, that may influence the retailer's perception and behavior towards
Amul fresh products.
 Marketing mix: The study can evaluate the impact of the marketing mix elements
(product, price, promotion, and place) on the retailer's perception and behavior
towards Amul fresh products.
 Relationship marketing: The study can analyze the role of relationship marketing in
shaping the retailer's perception and behavior towards Amul fresh products.
3.6 Conceptual Framework:
A conceptual framework for a study on retailer's perception and behavior towards Amul fresh
product division can include the following elements:
1. Independent variables: The independent variables in this study can include retailer
characteristics, such as their demographics and business size, as well as marketing
mix elements, such as product quality, brand image, and marketing strategies.
2. Dependent variables: The dependent variables in this study can include the retailer's
perception of Amul fresh products, their attitude towards the products, and their
behavior, such as purchasing decisions and marketing efforts.
3. Relationships: The study can explore the relationships between the independent and
dependent variables, such as how retailer characteristics and marketing mix elements
influence their perception and behavior towards Amul fresh products.
4. Theoretical basis: The study can be based on relevant theories and models, such as the
theory of planned behavior, which suggests that behavior is influenced by a
combination of attitudes, subjective norms, and perceived behavioral control.
 5. Research questions: The study can address research questions, such as what factors
influence the retailer's perception and behavior towards Amul fresh products and how
the marketing mix elements impact their decision to stock and sell the products.
6. Methodology: The study can use appropriate research methods, such as surveys or
case studies, to gather data and test the conceptual framework.
7. Contributions: The study can contribute to the existing literature on retailer perception
and behavior towards fresh products and provide insights for Amul to improve its
marketing strategies and strengthen its relationships with retailers.
3.7 Questionnaire design - Developed (if developed used 7 step process):
1. Determine research objectives:
 To understand the perceptions of retailers towards Amul's fresh product division in
terms of product quality, price, and value.
 To identify the factors that influence the decision of retailers to stock and promote
Amul's fresh products.
 To explore the challenges faced by retailers in stocking and promoting Amul's fresh
products.
2. Identify target population:
 Target population: 69(Katraj Area)
 Sampling method: Convenience Sampling: This method involves selecting
participants who are easily accessible and convenient to approach. Retailers who are
easily accessible to the researcher can be chosen for the study.
3. Develop questions: Construct questions to gather the necessary information and
ensure they are clear, concise, and unbiased.
4. Determine question format: Our question format is a combination of both multiple-
choice and open-ended.
5. Pretest questionnaire: Administer the questionnaire to a small sample to identify any
issues or improvements before finalizing.
6. Finalize questionnaire: Make any necessary changes based on feedback from the
pretest and finalize the questionnaire.
7. Data collection: Administer the questionnaire to the target population and collect the
data for analysis.
3.8 Hypotheses:
1. To understand the perceptions of retailers towards Amul's fresh product division in
terms of product quality, price, and value:
 H1: Retailers have a positive perception of Amul's fresh product division's product
quality.
 H2: Retailers have a positive perception of Amul's fresh product division's price.
 H3: Retailers have a positive perception of Amul's fresh product division's value.

2. To identify the factors that influence the decision of retailers to stock and promote
Amul's fresh products:
 H1: Product quality is a significant factor in the decision of retailers to stock and
promote Amul's fresh products.
  H2: Price is a significant factor in the decision of retailers to stock and promote
Amul's fresh products.
 H3: Availability is a significant factor in the decision of retailers to stock and promote
Amul's fresh products.
 H4: Brand reputation is a significant factor in the decision of retailers to stock and
promote Amul's fresh products.

3. To explore the challenges faced by retailers in stocking and promoting Amul's fresh
products:
 H1: Availability of products is a significant challenge faced by retailers in stocking
and promoting Amul's fresh products.
 H2: Price competitiveness is a significant challenge faced by retailers in stocking and
promoting Amul's fresh products.
 H3: Quality consistency is a significant challenge faced by retailers in stocking and
promoting Amul's fresh products.
3.9 Sample and Selection Criteria:
Convenience Sampling: This method involves selecting participants who are easily accessible
and convenient to approach. Retailers who are easily accessible to the researcher can be
chosen for the study.
3.10 Data Collection:
Surveys: Collecting data through self-administered questionnaires.
Secondary Data: Analyzing existing data such as market reports and customer feedback to
understand the perception and behavior of retailers.
3.11 Statistical Tools used with Justification:

4 Data Analysis and Interpretation

 Demographic Profile of the respondents
 Descriptive Statistics
 Impact of Demographic variable on Depended and Independent Variable
 Cross-Tabs, Chi-Square, T-test & Anova

Chapter – 5 - Findings and Conclusion

 Findings from Analysis
 Suggestions
 Conclusion
 Managerial Implication

Chapter - 6 -Practical Learning & Contribution

Internship Summary
  Internship Designation & Duration
 Internship – Roles & Responsibilities
 Internship Daily Routine – Task & Work Process
 Expected Competency (Knowledge & Skill & Attitude)
 Achieved Competency with justification (Knowledge & Skill & Attitude)
 Overall Learning outcomes
 Overall contribution to the company in the Internship duration (Revenue, Leads,
Ideas)
 Special Recognition / Certificate / Appreciation letter
Annexure
Questionnaire
Reference / bibliography
Research Article
Book Reference
Newspaper / Blog reference
Database resource reference
Consulting project reference