Project Report ON Market Segmentation: Designed by Pooja Devija
Project Report ON Market Segmentation: Designed by Pooja Devija
Project Report ON Market Segmentation: Designed by Pooja Devija
PROJECT REPORT
ON
MARKET
SEGMENTATION
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LIST OF CONTENTS
SL PAGE
TITLE
NO NO
I. INTRODUCTION 5-8
V. FINDINGS 32-33
VI. SUGGESTIONS 34
VIII. BIBLIOGRAPHY 37
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CHAPTER-1
INTRODUCTION
Market segmentation is the identification of portions of the market that are different from one
another. Segmentation allows the firm to better satisfy the needs of its potential customers.
The marketing concept calls for understanding customers and satisfying their needs better than
the competition. But different customers have different needs, and it rarely is possible to satisfy
all customers by treating them alike.
Mass marketing refers to treatment of the market as a homogenous group and offering the same
marketing mix to all customers. Mass marketing allows economies of scale to be realized
through mass production, mass distribution, and mass communication. The drawback of mass
marketing is that customer needs and preferences differ and the same offering is unlikely to be
viewed as optimal by all customers. If firms ignored the differing customer needs, another firm
likely would enter the market with a product that serves a specific group, and the incumbent
firms would lose those customers.
Target marketing on the other hand recognizes the diversity of customers and does not try to
please all of them with the same offering. The first step in target marketing is to identify different
market segments and their needs.
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COMPANY PROFILE
Amul was formally registered on December 14, 1946. The brand name Amul, sourced
from the sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in
Anand. Some cite the origin as an acronym to (Anand Milk Union Limited).
The Amul revolution was started as awareness among the farmers. It grew and matured
into a protest movement that was channeled towards economic prosperity. It is a dairy
cooperative movement in India. It is a brand name managed by an apex cooperative organisation,
Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned
by some 2.41 million milk producers in Gujarat, India. It is based in Anand town of Gujarat and
has been a sterling example of a co-operative organization's success in the long term. The Amul
Pattern has established itself as a uniquely appropriate model for rural development. Amul has
spurred the White Revolution of India, which has made India one of the largest milk producers in
the world. It is also the world's biggest vegetarian cheese brand.
Amul's product range includes milk powders, milk, butter, ghee, cheese, chocolate, ice cream,
cream, shrikhand, paneer, gulabjamuns, basundi, Nutramul brand and others. In January 2006,
Amul plans to launch India's first sports drinkStamina, which will be competing with Coca
Cola's Powerade and PepsiCo's Gatorade.
Amul is the largest food brand in India with an annual turnover of US $868 million
(2009-2010). Currently Amul has 2.41 million producer members with milk collection average
of 5.08 million litres/day. Besides India, Amul has entered overseas markets such as Mauritius,
UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African
countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans
of flooding the Japanese markets. Other potential markets being considered include Sri Lanka.
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Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims
to provide remunerative returns to the farmers and also serve the interest of consumers by
providing quality products which are good value for money.
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Sales Turnover Rs (million) US $ (in million)
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CHAPTER-2
LITERATURE REVIEW
In addition to having different needs, for segments to be practical they should be evaluated
against the following criteria:
Identifiable: the differentiating attributes of the segments must be measurable so that they
can be identified.
Accessible: the segments must be reachable through communication and distribution
channels.
Substantial: the segments should be sufficiently large to justify the resources required to
target them.
Unique needs: to justify separate offerings, the segments must respond differently to the
different marketing mixes.
Durable: the segments should be relatively stable to minimize the cost of frequent
changes.
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MARKET SEGMENTATION
Geographic
Demographic
Psychographic
Behavioralistic
1. Geographic Segmentation
The following are some examples of geographic variables often used in segmentation.
2. Demographic Segmentation
Age
Gender
Family size
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Family lifecycle
Income
Occupation
Education
Ethnicity
Nationality
Religion
Social class
Many of these variables have standard categories for their values. For example, family lifecycle
often is expressed as bachelor, married with no children (DINKS: Double Income, No Kids),
full-nest, empty-nest, or solitary survivor. Some of these categories have several stages, for
example, full-nest I, II, or III depending on the age of the children.
3. Psychographic Segmentation
Activities
Interests
Opinions
Attitudes
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Values
4. Behavioralistic Segmentation
Benefits sought
Usage rate
Brand loyalty
Readiness to buy
Behavioral segmentation has the advantage of using variables that are closely related to the
product itself. It is a fairly direct starting point for market segmentation.
Market segmentation is the process in marketing of grouping a market (i.e. customers) into
smaller subgroups. These markets are often termed niche markets or specialty markets. These
segments are fairly homogeneous in their attitudes about certain variables. Because of this intra-
group similarity, they are likely to respond somewhat similarly to a given marketing strategy.
That is, they are likely to have similar feeling and ideas about a marketing mix comprised of a
given product or service, sold at a given price, distributed in a certain way, and promoted in a
certain way.
The purpose of segmentation is to identify and target prime customer groups (eg the 20% that
account for 80% of your sales) so that you get the maximum return from a limited marketing
budget (the most bang for your buck).
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A given diagram is a generic process-data model is given for the whole process of
segmenting and positioning as a basis of deciding on the most effective marketing strategy and
marketing mix.
This model consists of the three main activities: segmenting, targeting and positioning. It
shows the chronological dependency of the different activities. On the right side of the model the
concepts resulting from the activities are showed. The arrows show that one concept results from
one or more previous concepts; the concept cannot be made when the previous activities have
not taken place. Below the three main activities are shortly described as well as their role as a
basis for the next step or their dependency on the previous step.
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CHAPTER-3
RESEARCH METHODOLOGY
Research, particularly in social science contains endless word spinning and too many quotations;
end result though may be far from expectations. In context of planning and development it is to
be noted that it significant lies in quality than quantity.
Therefore, eventually proper attention has to be paid to designing and adhering to appropriate
methodology throughout so as to improve the quality of the research.
Research type:
This type of result is Descriptive research .Descriptive Research includes surveys and fact
finding enquiries of different kinds. The major purpose of Descriptive Research is description of
the state of affairs, as it exists at present.
Research Design:
The survey was conducted for the Amul products where a questionnaire was filled from
the retailers, wholesaler and consumers. The population and the samples were evenly divided in
such a manner so as to extract the best possible results within the given limitation.
Sampling Design:
The survey was conducted within a selected part of Pune region by dividing the sample
evenly. The whole of Pune region was divided based on the number of wholesalers and retailers.
There are several method of data collection available but,one of the most common
method is-questionnaire method,same was found appropriate for this research , for the reason
that
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Questionnaire are one of the most commonly used methods.
It is cost-effective.
It is time-effective.
The questionnaire was designed by us and also with the help of panel members of Amul.
A list of retailers were generated area wise and later on contacted individually.
Sampling procedures:
For the collection of primary data one to one interview method with the help of well structured
questionnaire with both open and closed ended questions were used.The survey of all retailers
was conducted and their responses were taken down carefully with the help questionnaire.
For the purpose of analyzing the data statistical tools such as weighted average method
and percentage analysis were used.For better understanding the raw data tools like bar graphs
and pie charts were used.
Limitations:
The sample size: The biggest limitation of the research is the wide area of Pune region. Only
30% of the entire area was considered for the research.
1. The sample size was too small when we take the universe into the consideration, which is
very big.
2. The survey was done in a part of Pune city hence if generalizations are to be made for
whole city, some deviations might occur.
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3. Though the data is collected in a best possible way but still the above figures depict the
performance of the company.
4. The sample selected wasdone on random basis and taken from few selected areas that are
supposed to represent the whole population. Hence some deviations might be there when
the same is applied to the whole universe.
5. Retailers did not provide the real data for the study.
6. Retailers are scattered all over Pune city and its very difficult to locate and contact each
of them.
7. The big retailer are not ready to fill up the questionnaire.
8. Feedback may not be very reliable owing to difference in opinion.
Research Design
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Analyzing and tabulating the Data
2. Also, Data was tabulated with the help of Bar charts and Pie diagrams.
Interpretation of Data
Findings
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CHAPTER-4
The data is obtained by administering the questionnaire to the selected samples and the results
are calculated on the basis of the data thus collected.
Fig.1
CADBURY
48%
OTHERS
18%
NESTLE `
18% AMUL
16%
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Cadbury 48
Nestle 18
Amul 16
Others 18
Explanation:
From the fig.1, we can see that, Amul faces a tough competitoneith the leaders from chocolate
industry like Cadbury & Nestle. Cadbury leads the market of Chocolates with a market share of
48% and Amul with a share of mere 16%.
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Fig.2
Warna Gagangiri
20% 10%
Amul
Chitale 30%
40%
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Amul 30
Chitale 40
Warna 20
Gagangiri 10
Explanation:
From the fig.2, it shows the market share of shrikhnad in Pune region. The fig. clearly reflects
that the share of Amul Shrikhand holds a good position after Chitale. The market share is about
30% of Amul, 40% of Chitale , 20% of Warna& 10% of Gagangiri.
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Fig.3
Others, 10.00%
10%
9% Cadbury, 8%
8%
7% Nestle, 5.86%
Cadbury
6%
Nestle
5% z Amul, 4%
Amul
4% Others
3%
2%
1%
0%
Cadbury Nestle Amul Others
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Amul 4
Nestle 6
Cadbury 9
Others 10
EXPLANATION:
From the fig.3, it reflects that the dealer margin is quite low for Amul Chocolates as
compared to Nestle & Cadbury with a dealer margin of 6 and 9 points respectively.
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Fig.4
12 0thers, 11
Gagangiri, 10.02
10 Amul, 9.4
Chitale, 8.77
Amul
8
Chitale
6 Gagangiri
0thers
4
0
Amul Chitale Gagangiri 0thers
EXPLANATION:
From the Fig.4, it shows the dealer margin for Shrikhand market in Pune region.
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Fig.5
z
Nestle Nestle, 11.2
Cadbury Cadbury, 12
0 5 10 15 20
EXPLANATION:
From the Fig.5, it shows the dealer margin for Chocolates market in Pune region.
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MARKET TARGETING
After the most attractive segments are selected, a company should not directly start targeting
all these segments. The attractiveness of the segments is also depending on other important
factors. In the main activity of defining a target market, four sub activities are given which are
the bases for deciding on which segments will actually be targeted.
60
50
40
30
Target
20
10
0
7 - 20 yrs 21 - 40 yrs 40 - 50 yrs
Defining the abilities of the product and resources needed to enter a market
Analyzing competitors on their resources and skills
Considering the company’s abilities compared to the competitors’
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Deciding on the actual target markets.
The first three sub activities are described at the topic competitor analysis. The last sub activity
of deciding on the actual target market is an analysis of the information made available when
comparing the companies abilities to the competitors’.
This analysis leads to a list of segments which are most attractive to target and have a good
chance of leading to a profitable market share.
Obviously, targeting can only be done when segments are predefined; there have to be segments
to analyze the competitors which are in this market. When the process of targeting is ended, the
markets to target are selected, but the way to use marketing in these markets is not yet defined.
To decide on the actual marketing strategy, knowledge of the differential advantages of each
segment is needed. When positioning a product, the segments are first analyzed, this process is
described next.
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DISTRIBUTION STRATEGY
In order to ensure a continuous & efficient distribution, an approximate figure has to be arrived
at for getting the initial orders & to ensure adequate supply so that any delays or resultant losses
are avoided. For this purpose, the company adopted the consumer response hierarchy model so
that, it is ensured that all the company enters the market with a bang avoiding any problems of
late or inadequate supplies. This is highly essential to support the huge promotional budget, since
if the supplies aren’t at the right time, all other effort can be in vain. As Per The Consumer
Response Hierarchy Model; The Calculations Are Like Below:
RE-
5% of Trial
PURCHASE
TRIAL 10%
ofPreferencePrefer
ence
PREFERENCE 20% of Liking
AWARENESS
80% of Targeted
Population
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It is expected that 80% of this targeted population will get aware about the products with
the help of the sales promotion, advertising and other marketing tactics.
Out of the People being aware of the products & the company, 60% will have somewhat
exact knowledge of the product.
It is expected that out of the people having the knowledge of the product, with the
product features and the requirement of milk in the country, 40% will develop a liking for
the products.
20% of the target audience who have developed a liking, will opt for the company’s
product as against the products they are using for daily consumption.
10% of the people who might prefer the product, will actually try it for the first time.
5% of the people who have tried it for the first time, might be convinced to purchase the
product again
Thus, adding up the people trying the product and the re-purchaser of the products, it
comes up to 624960 people.
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CHAPTER-5
In the survey of each outlet I found that availability of Amul Shrikhand is more than
other brand.
The service provided by Amul to retailer is very good comparing with other brand.
The quality of Amul Chocolate and Shrikhand is very good comparing with other brands.
Amul Shrikhand sales is more than any other brand.
At most of the outlets, employees are not satisfied even dealers also.
According to them, Amul only takes action for customer satisfaction but for the outlets
employee’s satisfaction, Amul tries to avoid it.
In retail outlets customers focus on quality of products and not on service given by them.
Customer trust on brand of product and name of company while purchasing the product.
Retailers feedback
The survey we carried out among 950 retailers for Amul Chocolates and Shrikhand was a great
success in finding some important feedback. The survey we carried out was a face to face
interview with retailers and customer.
Pricing
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Product Quality
Majority of the people said that the quality of Amul Chocolate and Shrikhand is very
good.
They don’t have any problem regarding this.
Many said that Amul should maintain its quality in coming years.
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CHAPTER-6
SUGGESTIONS
It is said that the ‘line to perfection never exists’, in a way it suggests that continuous
improvement and development is essential to atleast near to the ‘Perfection’.
To help a plant grow it must be suitably watered, sunlight and soil, which best suit its
kind, similarly the organization too, to see that its efforts get results, must provide with proper
attention for the development of the company.
After analyzing the data collected during the survey, following improvements can be
made in future.
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CHAPTER-7
CONCLUSION
Amul India sells quality products like Amul milk, Amulshrikhand, Amul Chocolates,
Amul Ice-cream and Amul butter which are a brand in itself. So, its widely favoured with
the consumers.
Consumers get good quality, good product, good brand & good service at their door-step
at an affordable price.
From the survey, it shows that the Shrikand market is favourable for Amul rather than
Chocolate market as it faces stiff competition with the leaders in chocolate industry like
Cadbury & Nestle.
The dealer margin is quite low as compared to other competitors.
Also, the distribution network of Amul India is quite efficient
Competition will never end so let's not avoid it but face it confidently,
"For a chief executive, unless he knows where he is going no one can take him there".
What's the use of Market Segmentation if it does not reach desired results? Therefore it is
necessary for every individual who has something to sell but no one to buy, to detect the
problem areas and try to solve them. But for this, knowing the right problem is extremely
essential otherwise hitting the target in dark means nothing.
Therefore, it is rightly said that a "well defined problem is half done". Once you know your
drawbacks only then you can correct it. Therefore, to know your drawbacks you need to
conduct a survey and get information right from the ultimate users of your product. They
should be asked to bring out your drawbacks. This will help you to not only know your
pitfalls but also what your customers want and their likes and dislikes and while doing so
build a good rapport with your customers. While conducting such surveys you can also
advertise your products among those customers who are not much aware of it.
"There are three ways of doing a thing—- the wrong way, the right way and our way"
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whichever may be your way the ultimate aim is to achieve the results and implement them
to maximize customer satisfaction we all know competition is intense then why not take it
positively so that it helps us to improve our product quality, makes customers loyal to us,
helps us know our shortcomings and rectify them. The best way to overcome your
competitors is to give your customers what they expect or probably more than that.
To know the customers expectations towards Amul, I had conducted a market Research of the
existing customers, which helped me to know the satisfaction, awareness and liking among
customers for the products of Amul and analyze the situation and provide them suggestion to
improve the situation.
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CHAPTER-8
BIBLIOGRAPHY
Books referred :
Millennium Edition(1998)
Second Edition,
WishwaPrakashan,
New Delhi.
1997(Ninth Edition)
www.google.com
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CHAPTER-9
APPENDIX
WHOLESALER(WD) 1. 2. 3. 4.
WD Name
Location
More?
1. Milk Chocolate
2.Fruit n Nut
3.Fundoo
4.Bindass
5.Almond bar
6.Chocozoo
7.Sugar free
8.Rejoice
Demand of
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Chocolates more?
1.Festival
2.Holiday
3.School open
The sale?
1.Chocolate
2.Shrikhand
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CONSUMER 1. 2. 3. 4.
Name
Location
Chocolate?
Taste?
1.Milk Chocolate
2.Fruit n Nut
3.Fundoo
4.Bindass
5.Almond
6.Chocozoo
7.Sugar free
8.Rejoice
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When would you like
To eat chocolates?
Is chocolate easily
Available in your
Locality?
Amul chocolates?
Eat?
Is Shrikhand available
In your locality?
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RETAILERS 1. 2. 3. 4.
Retailer Name
Location
1. Chocolate
2. Shrikhand
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A)Warna B)Chitale C)Gagangiri D)Others
Trade schemes on
A) Chocolates B) Shrikhand
1. Chocolates 2.Shrikhand
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