A PROJECT REPORT ON

EFFECTIVENESS 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

Amul Ice cream. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION. The main supplier of the milk was Polson dairy limited. Amul Chocolates. 6 billion in 2005). Amul Butter. Amul products have been in use in millions of homes since 1946. of the triumph of indigenous technology. Amulspray. That time there was high demand for milk in Bombay. Amul Ghee. Amul Shrikhand. which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. of the marketing savvy of a farmers' organization. This word derived form the Sanskrit word AMULYA which means PRICELESS . This union was started with 250 liters of milk per day. Amul Cheese. This union selected the brand name AMUL in 1955. And have a proven model for dairy development (Generally known as ANAND PATTERN ). (The total sale is Rs. Amul Milk Powder.INTRODUCTION AND HISTORY OF AMUL In the year 1946 the first milk union was established. In the year 1955 AMUL was established. the main sources of earning for the farmers of Kaira district were farming and selling of milk. Amul Milk and Amulya have made Amul a leading food brand in India. In the early 40 s. The brand name Amul means AMULYA . Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices. Nutramul. of the genesis of a vast co-operative network. A quality control expert in Anand had suggested the brand name AMUL . This system leads to exploitation of poor and illiterates farmers by the 5 .

when the exploitation became intolerable. He advised the farmers to form a society for collection of the milk. However. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his cooperation and help. They collectively appealed to Sardar Vallabhbhai Patel. on 4th January 1946. Instead of supplying milk to private traders. who was a leading activist in the freedom movement. Shri Desai held a meeting at Samarkha village near Anand. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union. 6 .private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word. the farmers were frustrated.

Having seemed the condition. However.. the farmers of Kaira district went on a milk strike. The district union was also form to collect the milk from such village co-operative societies and to sell them. 7 . he decided to fulfill the farmers demand. The milk commissioner of Bombay then visited Anand to assess the situation. It gave the negative response by turning down the demand for the milk. without the intervention of Government. Since farmers sold all the milk in Anand through a co-operative union. As a result the Bombay milk scheme was severely affected. Mr. For 15 whole days not a single drop of milk was sold to the traders. It was also resolved that the Government should be asked to buy milk from the union. did not seem to help farmers by any means. it was commonly resolved to sell the milk under the brand name AMUL. the govt. 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. Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis. To respond to this action of govt. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946.These village societies would collect the milk themselves and would decide the prices at which they can sell the milk.

Milk is collected from almost 1073 societies. Dr. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period. of Rs. Besides when the milk was to be collected from the far places. today Amul has more than 150 chilling centers in various villages. With the financial help from UNICEF.Rajendra 8 . Thus. so as to preserve it for a longer period. To overcome this problem the union thought out to develop the chilling unit at various junctions. 50 millions for factory to manufacture milk powder and butter was planned.At the initial stage only 250 liters of milk was collected everyday. which would collect the milk and could chill it. there was a fear of spoiling of milk. assistance from the govt. the collection of milk increased. But with the growing awareness of the benefits of the cooperativeness. Today Amul collect 11 lakhs liters of milk everyday. of New Zealand under the Colombo plan.

1955.Prasad. What's more. Contrary to the traditional system. It also enables the consumer an access to high quality milk and milk products. 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. it does not disturb the agro-system of the farmers. Shri Pandit Jawaharlal Nehru. 9 . the president of India laid the foundation on November 15. 1954. when the profit of the business was cornered by the middlemen. the prime minister of India declared it open at Amul dairy on November 20.

material and machines. by prudent use of men. The Union looks after policy formulation. growing with time and on scale. the artificial insemination service. of an intervention for rural change. Looking back on the path traversed by Amul.the system ensured that the profit goes to the participants for their socio-economic upliftment and common good. y Plough back the profits. processing and marketing of milk. in the rural sector for the common good and betterment of the member producers and y Even though. the following features make it a pattern and model for emulation elsewhere. Amul is an example par excellence. better feeds and the like all through the village societies. Basically the union and cooperation of 10 . 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. In that sense. veterinary care. it has remained with the smallest producer members. y Provide a support system to the milk producers without disturbing their agro-economic systems. y Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. provision of technical inputs to enhance milk yield of animals.

which engaged in the manufacturing of milk. butter. milk powder. flavored milk and buttermilk. ghee.people brought Amul into fame i.e. a name which suggest THE TASTE OF INDIA. Plants First plant is at ANAND. nutramul. Second plant is at MOGAR. Amul Ganthia and Amul lite. which engaged in manufacturing chocolate. 11 . AMUL (ANAND MILK UNION LIMITED).

12 . Fourth plant is at Khatraj. which engaged in producing cheese. which produces cattelfeed.Third plant is at Kanjari.

1 dairy in Asia and no. which is matter of proud for Gujarat and whole India. 13 . 2 in the world.Today. twelve dairies are producing different products under the brand name Amul. Today Amul dairy is no.

M. Vyas Director G.C.F Shri Deepak Dalal District Registrar Managing Director Shri Rahul Kumar 14 .BOARD MEMBERS Shri Ramsinh Prabhatsinh Parmar Shri Rajendrasinh Dhirsinh Parmar Shri Dhirubhai Amarsinh Zala Smt.M. 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. Sarayuben Bharatbhai Patel Shri Ranjitbhai Kantibhai Patel Chairman Vice-Chairman Director Director Director Director Director Director Director Director Director Director Managing Shri B.M.

ADVERTISEMENT FOR AMUL 15 .

RESEARCH METHODOLOGY 16 .

3.  To know the factors which affects consumer s buying behaviour to purchase chocolates.  To know which advertisement tool is mostly preferred by people. 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.´ 17 .  To know awareness of people towards Amul chocolates.  To know the preference of Amul chocolates with comparison to Other competitive brands. LITERATURE REVIEW OF AMUL CHOCOLATES: y A study conducted on amul chocolates of the market for confectionery products in India.A report prepared for the National Confectioners Association January.RESEARCH OBJECTIVES  To know the relationship of sales with the advertisement.  To know in which segment chocolates are mostly like/preferred.

Tathawade. 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. Mysore y AMUL CHOCOMINIS By: anmol. 2008 18 . 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. Sec-44.) 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.NOIDA.rao Nov 03.Post Graduate Diploma in Management (Marketing) By SHASHANK SHEKHAR AGARWAL y Study conducted for amul at Indira School of Business Studies.

ASOMA.Summer Internship Report.com. PGDM 09-11 | 1 y Amul products in india.y amul chocolate are really amulya By: mdtabishnasim Aug 19.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. Report on Identifying factors behind decreasing market share of amul chocolate and study of consumer behavior Submitted by :-Arpita Gupta PGDM.in devanath@iimahd.ernet.(Dr. Date: 3/06/2005 19 . Date submitted: 4/18/2010 y Effectiveness of advertising in amul chocolates. qweryallprojectreports@gmail. Submitted by: pinkykh. Ahmedabad 380015 India chandra@iimahd.ernet.in Revised April 2003 y Summer internship PROJECT Post Graduate Diploma in Business Management.Col.) 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. Submitted by: BK Mehata. 2007 y Master in business administrative Of Doon Business SchoolDehradunProject report ³OnMARKET RESEARCH WITH REFERENCE TO Amul Chocolate´ Lt.

I visited Superstores. 20 .k nagar. gowripalayam.RESEARCH INSTRUMENT USED . south masi street. CONVINIENCE SAMPLING This type of sampling is chosen purely on the basis of convenience and according to convenience. The total sample size was 197. villapuram . periyar. bypass road.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. 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. west masi street.

6. Area of survey : Madurai District.METHOD USED FOR DATA COLLECTION y Questionnaire was prepared keeping the objective of research in mind. FIELD WORK. 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. etc 3.SAMPLING 1. Data analysis method : Graphical method. Sample Unit : People who buy chocolates available in retail outlets. 21 . 5. superstores. Sample size : 197 respondents (Age ranging between 15 yrs to 65 yrs) 4. Method : Direct interview through questionnaire.

Theatres and Gymnasium. each and every question was filled personally by the respondents and checked properly. y The help of questionnaires conducted direct interviews.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 . y I visited as many respondents as I can and asked them their real likings about any chocolate and also got an idea. 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.

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 .

[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. 25 . So we should give stress on children & tenager segment to increase market share.

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. followed by wafer i.e.e. 26 . Cookies are all time favorites with 14% while other forms are preferred to the extent of 6%. 20%.

V. In other channels sports and news channels are preferred. So it will be more beneficial top give advertisements on STAR VIJAY & CARTOON channels. SUN TV & CARTOON channels are also popular but not as STAR.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. CARTOON channel is specially preferred by children. 27 . it covers all the age groups. This channel is very popular among all the age group people.[4] Which Television channel you like to watch most? STAR VIJAY ZEE TAMIL SUN TV CARTOON Others 97 15 30 30 25 T.

[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. so it is good to advertise on preferred channels on these timings. Because Mostly people belong to service class & females in the families got their work by this time. after 8 pm to 11 pm. At 5 to 8 pm 33% respondents in which especially children watch cartoon channel & etc.V. 28 .

V. Children are getting attracted through advertisement on television and hoardings.[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. 29 . Company tries to give attractive advertisement through T. and hoardings because advertisement through hoardings is less costly.

suriya. 30 . slow music & specially children like jingles in advertisements.At the same time people like comedy.S.[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. Sachin Tendulkar. Mostly people likes to see celebrities like Amitabh Bacchan. asin as a Brand Ambassador in chocolate advertisements.Dhoni. Saniya Mirza. M.

Amul must use proper techniques in order to cater the needs of every common man. 31 . while still 10% have not tried Amul Chocolates.[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.

Therefore Amul must use strong promotional activities and advertisement in order to retain their potential consumers. 32 . This shows how much Amul lags behind in promotional activities and advertisement.[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.

[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. followed by Nestle with 28% share. 33 . whereas Amul have only 13% market share and thus lags behind.

13% fortnightly. 22% weekly. 34 .[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. and there is a Hugh chunk of people who buy chocolate occasionally.

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 .

37 .  When I interviewed children and teenagers.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.  As summer training is going under summer season so sometimes people are less interested in filling up questionnaire. sometimes they use to give answers under the influence of their parents or elders.  Non-cooperative approach and rude behavior of the respondents.

 There is lake of Sales Promotional Activities i. so it is not concentrating upon chocolates. 38 . 88%. extra weight.  Lack of Awareness in consumers. quiz contest etc. 66%.MY FINDINGS  During the survey it was found that still there are 10% people who have not tasted Amul Chocolate.  When I interviewed people then many of the people can not recall Amul chocolate advertisement.  In its advertisement is not using any brand ambassador which attracts all age group people like Cadbury.  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. toys. It shows Lack of Advertisement or advertisement is not timely given or advertisement is not given on right time. after it Amul is concentrating upon butter & cheese which has market share of approx.e. Many people are not know about Amul chocolates specially children and teenagers. free tattoo.

 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. 39 . Cadbury is main competitor and strategically better performer then Amul.

SUGGESTIONS & CONCLUSIONS 40 .

It shows that there is only need to give advertisement 41 . Amitabh Bacchan. promotional policies. Shaktimaan. Local advertisement must mention the exclusive Amul shops of the city.SUGGESTIONS  In order to maintain and increase the sales in the city of madurai. Superman. because although being on a top slot in Butter and milk supplies it does not get the sales in chocolate. suriya. which it should get.  Try and change the perception of the people through word of mouth about Amul in advertisements. Krrish. asin.e.  Company should use brand ambassador which attracts each age segment i. because they are the best source to reach Children and families.  Amul should give local advertisements apart from the advertisements given at the national level. distribution. Jadoo. the following recommendations regarding Amul Chocolates.  Though Amul chocolate advertisements are rarely shown on television yet many people could recall it as per the data of research. Saniya Mirza. are hereby suggested:  First and foremost Amul should take proper action in order to improve service. etc. particularly regarding advertisement.

 Company should launch chocolate in new attractive packing to change image of Amul chocolate in consumers mind. pranky.  Company should launch chocolates in new flavors like Mix Fruit Pineapple Elaichi Coffee Strawberry Banana Mango 42 . free gifts etc.  Advertisement can be done with the help of animations that attracts children and teenagers because chocolates are consumed largely in this segment. Because Amul is very strong brand name.only to rememorize customers. tattoo. contest.  Company should introduce sales promotion schemes like free weight.

As we know Amul is a cooperative organisaion but chocolate industry is a profitable industry we can t ignore it. People have believed in Amul s product and they will accept its chocolates also if effective actions were taken.CONCLUSION As we know that Amul is very big organization and market leader in dairy products. but for the existence in the local market Amul must use aggressive selling techniques. company can find out its week points in chocolate product and can increase its market share through rectify mistakes. the other players such as Cadbury. and Fundoo.  In comparison to Amul Chocolate. With the help of research. The survey resulted into following conclusions :  Amul must come up with new promotional activities such that people become aware about Amul Chocolates like Chocozoo.  Quality is the dominating aspect which influences consumer to purchase Amul product. Butter and Cheese. which are its main/core products. but prompt availability of other chocolate brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales. and Perfetti provide a better availability and give competition to the hilt. It has maximum market share in Milk. Bindaaz. Nestle. 43 .  People are mostly satisfied with the overall quality of Amul Chocolate.

ANNEXURES 44 .

C. www. www.amul. ( Harper W. R.amuldairy.com 6. www. Kothari ) 45 .google. Research Methodology.marketresearch.com 2.com 5.com 4. www.dairy. www.Boyd.BIBLIOGRAPHY 1.com 3.

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. [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 .

[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 .

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