A

PROJECT REPORT

ON

“RELAUNCHING OF AMUL PIZZA”

A detailed study done in

“GUJARAT COOPERATIVE MILK MARKETING FEDERATION”

Submitted in partial fulfillment of the requirement for the award of degree of Masters of Management Studies (MMS) under Mumbai University.

Submitted by

NITIN DAFADESAGAR NIKAM

SAMEEULLAH KHAN

BATCH: 2008-2010

Under the guidance of

Mr. S. R. NAGLE

Bharati Vidyapeeth’s Institute of Management Studies & ResearchSector 8, CBD-Belapur, Navi Mumbai –400614

ACKNOWLEDGEMENT

This acknowledgment is meant to facilitate all those people who have lent

support and help for the successful completion of this project. First we

would like to express our warmest thanks and gratitude towards Mr. S. R.

Nagle for endowing us with pristine opportunity to undergo this project in

his esteemed organization.

We would like to express our deepest gratitude to Mr. Swaminathan

Narayan, for his continuous guidance throughout the course of this project

work.

We would like to express our deepest gratitude to Dr D.Y. Patil, Director

BVIMSR, for his support and encouraging us to get actively involved in this

project.

We are also thankful to Mr. Sushil Parekh, Head Corporate Relations,

BVIMSR for making it possible for us to do Summer Internship with a

prestigious organization like Gujarat Cooperative Milk Marketing

Federation (Amul).

We are also thankful to Mr Bhorge and the entire staff at G.C.M.M.F,

Mumbai who took out time from their busy schedule and made sure that we

understood the workings. Their valuable suggestions and constructive

criticisms have acted as a guiding light for us.

Last but not the least we would like to thank our parents for their continuous

support and encouragement, without which the road would have been very

difficult.

Nitin Dafade ( )Sagar Nikam ( )Sameeullah Khan ( )

(i)

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EXECUTIVE SUMMARY

Most of the industries in India are very lucrative as well as competitive and fast food

industry is no exception. With India having a huge population of young people, it offers

tremendous business opportunity for marketers. Pizza forms an important part of the fast

food segment and in India the pizza market is already dominated by some big MNC’s

who are master in their business. So for a new entrant to occupy a position in this

competitive market, it really takes some efforts. Gujarat Cooperative Milk Marketing

Federation (GCMMF), better known as Amul, is one of the most trusted brands in India

and Asia’s largest milk brand. It made few unsuccessful attempts to occupy a position in

pizza market. Amul initially launched pizza at a much lower price than other players, and

price was the USP of Amul pizza. However very soon this proved to be wrong as

customers no more wanted just low priced pizza, but also a pizza that provides them

delight, value and experience.

The major reason for Amul’s entry in the pizza market was that it wanted to increase the

consumption of mozzarella cheese, in which Amul already enjoys the market leadership.

Amul now wants to use its existing network of APO’s and ice cream parlours to re launch

its pizza all over the country.

A detailed study has been carried out in this project to build a proper marketing strategy

for re launching of Amul pizza.

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(ii)

TABLE OF CONTENTS

PARTICULARS PAGE NO: Acknowledgement (i)Executive summary (ii)

Chapter 1: Introduction of the Project 5

1.1: Objective of the Study 6

Chapter 2: Research Methodology

2.1: Data Collection Techniques and Tools

Chapter 3: Data Analysis and Interpretation

Chapter 4: Re-launch Strategy for Amul Pizza

Chapter 5: Conclusion & Limitations 5.1 Conclusions 5.2 Limitations

Bibliography Annexure

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1. Introduction of the Project

Amul a very well known brand in the Indian dairy industry made an attempt to enter in

to the highly competitive pizza market which is already dominated by the several MNCs.

Amul’s major strength was probably it’s leadership in mozzarella cheese market which

is a key ingredient for pizza coupled with its strong distribution network .Though Amul

initially launched pizza at a much lower price than its competitor it was not able to make

a dent in their market share.

Now Amul wants to enter in to the pizza market once again with the new and innovative

strategies .Our project deals with the building of the proper platform for making

successful marketing strategies for relaunching of the Amul Pizza.

In order to achieve this we carried out market research at different places in Mumbai

and collected primary data through questionnaire.

Based on the inferences drawn from market research, observations, secondary data and

several other important factors we made our strategies.

1.1 Objectives of the Study

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The main goal of this project is to build a proper marketing strategy for

relaunching of AMUL Pizza.

The important objectives of the study to achieve the said goal are as under:

To find out the brand consciousness of people regarding pizza.

To find out awareness of AMUL Pizza

To find out the frequency of eating pizza.

To find out the acceptance of Amul as pizza brand

To find out the most important factor for the liking of particular pizza brand

To find out an ideal price for the Amul Pizza.

To get feedback on the different parameters of the Amul Pizza.

To find out the response to pizza from age group.

2. Research Methodology:

Initially for the first week of the start of the project we have collected the raw data by

having direct interview at the different APOs as well as interviewing with customers who

had tested pizzas earlier.

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We have used the systematic random sampling technique to collect primary data with

the help of questionnaire and using product samples.

We have used a sample of 183 respondents questioned at different APO’s of Mumbai :

1- Spot Drinks, Shivaji Park, Dadar

2- Freezing Temptation, Kurla

3- Melting Point, Mulund

4- Cream Corner, Mulund

5- Akshada Online, Airoli

2.1 Data Collection Techniques and Tools

3. Data Analysis and Interpretation:

Sample of 183

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As we can infer from the analysis of above data a whopping 77% of consumers like to have a branded pizza. So when it comes to pizza consumers are pretty much brand conscious. The significance for this type of finding for our project is that is it a very positive signal for Amul, as the company can use its strong brand name to re launch the pizza and win customer trust in pizza segment. As Amul is already an established brand in other food segments, it can use this strength to its advantage.

Probably one of the most alarming situations for any company is when prospective customers are unaware of its products. Same has happened with Amul pizza. 75% of the total respondents questioned answered in negative when they were asked whether they were aware of Amul pizza. So Amul really needs to aware the masses regarding its product.

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When consumers were asked whether they can accept Amul as a pizza brand, 87% of them replied in affirmative. So nothing really wrong with the branding of Amul pizza as consumers can associate Amul brand name with pizza.

When it comes to pizza selection, 47% of the respondents said that they give most importance to the taste of the pizza; service comes next at 23%. So the significance for this type of finding is that Amul needs to focus more on the core needs of the consumers that is taste, with service adding to the delight of the consumers at APO’s.

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The most preferred price range of pizza for Amul consumers is 30-50. To be more precise 48% of the consumers said that they would like to have their pizza ion the price range of 30-50.

When respondents were asked what is the price range of pizza that they actually buy from the market, 82% of them replied Above Rs 70. This is a very significant observation, as there is a very big gap between what consumers want and what they are actually getting. So there is at least 48% market in the 30-50 price range. Amul can explore this opportunity as target this segment and focus on introducing new variants in this new segment.

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60% of the respondents said that they found the taste of Amul pizza to be Good. So there is no major issue with the taste of Amul pizza.

55% of the respondents said that they found the cheese used in Amul pizza to be Good. So there is no major issue with the cheese of Amul pizza.

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Although 50% of the respondents said that they found the quality of base (crust) of Amul pizza to be Good, we cannot ignore the 37% of the respondents who voted just Average for the base of pizza. So there is a need of improving the quality of base of Amul pizza.

60% of the respondents voted as Good for the toppings of Amul pizza, with 18% voting as Average and no votes for Poor. So there is quite a positive feedback for the toppings used in pizza.

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The feedback for the overall quality of the ingredients of the Amul pizza is also quite good as 66% of the respondents voted for Good.

Price is one thing that may give Amul pizza an edge over its competitors as 77% of the respondents found the price of Amul pizza to be Reasonable. So the pricing of Amul pizza is also quite good.

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4. Re-launch Strategy for Amul Pizza

SWOT Analysis:

Strengths

Brand (company) name because of the number of years in the market Readily available production facility Can use the network of APOs as well as Amul parlors. Trust of consumers

Weakness

No expertise in pizza making Late entrant Distribution channel Packaging

Opportunities

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No big competitor in low price pizza category. Growing acceptance of the frozen food in Indian market. Can cater to the needs of huge young working population. Niche market

Threats

High degree of competition from Dominos, Pizza Hut as well as local players

Indian mentality in many regions is not ready to accept frozen food. Local players and restaurants are offering fresh pizza in the same price

range.

Branding

According to our survey most of the customers are ready to associate Amul with the Pizza which shows that Amul can use its brand to promote the pizza. It should have to create the brand awareness with the proper advertising and brand building strategy by educating the customer as well as retailer in the process.

Positioning

Though Amul pizza comes in frozen category but it should use AMUL brand name which is known for its quality and freshness to position the Amul Pizza in the mind of the customer that even though it is frozen it is fresh.

Amul should target the young working population as well as housewives which is big market to position its pizza accordingly. Similarly, AMUL should also build an aura around itself, may be for example taking into consideration the Family Picnics or Outings

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etc. and relate to that. So that whenever consumers are thinking of that event, AMUL should come to their minds.

Relaunch Strategy for Amul Pizza

Product: Amul should concentrate on Pizzas more rather than thinking it as a means to increase the sales of it mozzarella cheese. It should give more emphasis on the taste and quality of pizzas and improve the same. According to the survey 60% of the respondents show their preference GOOD for taste of the pizza.

Product research and product modification should be done. Just like its Jain Pizza, it should have more regional product catering to the

regional need.E.g. It can launch the new regional pizza for Maharashtra region as ‘Maza Pizza’

It should have to develop more variants of pizza like sausage, pepperoni flavors and stuffed crust pizza apart from the basic four cheese pizzas.

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From our finding and observation the pizza is not properly baked at its edges because of its thickness at the edge so there should be modification in the design of pizza before its launch.

Pizza should carry more toppings with even spreading. Pizza which can be easily baked on TAVA should also be launch.

Price:From our survey we found out that the price of 8” pizza Rs.40 is quite reasonable for about 80% of the respondents, even though there are some respondents who are willing to pay more for better quality pizza with more variety of toppings and variants.

So it should have to strategically price the pizza with in range of Rs.30-50.

Place:AMUL should have to concentrate on the availability of pizza until and unless availability is increased sales of the pizza will not take the leap. More steps should be taken to increase the availability.

There should be a national launch with the concentration on tire 2 and tire 3 cities also.

It should have to improve its distribution channel and make sure it should be available at all its APOs .

It can also use its existing network of ice cream parlors to increase the availability.

It should also have to make available at Malls, Retail chains and institutions like BPOs and office canteens.

E.g. 'Dr. Oetker' pizza is available at many retail outlets in Mumbai like Big Bazaar, Hyper city, Alpha Store.

Promotion:A proper mix of appropriate advertising tools should be adopted. Also care should be taken to properly analyze this advertisement on regular basis and their effect on customer.

New advertising campaign should be developed to educate the customer and retain the consumer attention.E.g. When Magi launched in 1984 from that time they have demonstrated their product and educated the customer over many years because of this it is position so well in the mind of the customer.

Pizza has become a staple for teenagers and college students and a convenient backup meal for busy parents so special advertising targeting this group should be launched.

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“Just Heat and Eat” advertising campaign should be run focusing customer education.

Free chess cubes or butter cubes should be given for pizzas to be baked on Tava. Hand outs should be distributed along with news papers promoting the product,

its variants and also educates the customer. It should be promoted in the areas such as schools, colleges and institutions like

Malls, BPO’s, Office canteens etc. It should be promoted at APOs and Ice cream parlors through Glow sign boards,

Sign boards and Hoardings on prominent places. Amul can also promote it as a good vegetarian food like “Everything is vegetarian” . Amul can ask for the customer feedback and favorite topping combination , best

one should be selected and that customer name should be flashed on its boards,

Packaging:It plays a very important role as it marks the first impression of the product.

Packaging should be made such that it should be eye catching. It should carry the information about the pizza, how to cook it as well as

information about the other variants. “How to cook” instructions should also be given in the regional language as

many of our respondents were housewife’s and they were not able to read the instruction in the English.

The pizza box should have to be easily open on the upper side of the box rather than side opening.

The pizza should be packed in a disposable plastic tray in box which also holds it after baking and prevents it from breakage.

Competition:Though there is no big player in frozen pizza category in India still it will face the stiff competition from the local player and restaurants who also serves the fresh pizza in the same price range.

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5. Conclusion & Limitations

5.1 Conclusion

5.2 Limitations

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BIBLIOGRAPHY

Books:

1. Philip Kotler; Marketing Management, 13th Edition

2. V S Ramaswamy and S Namakumari; Marketing Management, 3rd Edition

Websites:http://www.rediff.com/money/2001/jul/23amul.htm

http://www.business-standard.com/india/news/amul-aims-at-1mn-mark-for-pizza-biz/235435/

pods.dasnr.okstate.edu/docushare/dsweb/Get/.../FAPC-103web.pdf

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Market Survey on Pizza

Name: ______________________________ Gender: M F

1 .Do you eat pizza?

a) Yes b) No

2. Do you eat branded pizza?

a) Yes b) No

3. How often do you eat pizza?

a) Once in a week b) Once in 15 days

c) Once in a month d) Regularly

4. Which pizza brands are you familiar with?

____________________________________

(In case Amul brand is not mentioned in response to question no.4 ask question no.5) 5. Are you aware of Amul Pizza?

b) Yes b) No

6.How did you come to know about Amul Pizza?

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c) Newspaper b) Internet

c) Television d) Pamphlets e) Any other _____________

7. Will you associate brand name of Amul with a pizza?a) Yes b) No

8. Rank the pizza brands you like starting with the favorite brand ranked as number 1?

9. Why do you like that particular brand?

a)Brand name b) Value for money

c) Service d) Taste e) Any other ______

10. What is the price range of pizza that you buy?a)Rs. 20-30 b) Rs. 30-50

c) Rs. 50-70 d) Above Rs. 70

11. What is the ideal price of pizza for you?

a. Rs. 20-30 b) Rs. 30-50

d) Rs. 50-70 d) Above Rs. 70

12. Rank the most important criteria you consider while ordering pizza?

a) Base b) Variety of toppings

c) Cheese d) Brand

13. Describe your experience with Amul Pizza according to the following?

Parameter Excellent Good Average PoorTasteCheeseBaseToppingsQuantity of Ingredients

14. What is your opinion about the price of Amul Pizza?

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b) Inexpensive b) Reasonable

c) Quite Expensive

15. Will you recommend Amul Pizza to a friend?

a) Yes b) No

Age Group: a) Below 18 b) 18-25 c) 26-35 d) Above 35

Income p.m: a)Up to Rs.7000 b) 7000-15000 c)15000-30000 d) above 30000

Occupation: a) Student b) Business c) Service d) Housewife e) Any other:

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