Post on 23-Apr-2021
SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL
FULFILLMENT OF PGDM PROGRAM
Project Report
On
Market Analysis of AMUL Products
Submitted By: Internal Guide:
Name: Neeraj Kumar Name: Mrs. Ritu Bajaj
Class: Retail & Marketing Management Designation: Management Faculty
Enrollment No: FRM 1115
Jagan Institute of Management Studies(JIMS)
ACKNOWLEDGEMENT
It is my pleasure to be indebted to various people, who directly or indirectly
contributed in the development of this work and who influenced my thinking,
behavior, and acts during the course of study.
I am thankful to Mrs. Ritu Bajaj for his support, cooperation, and motivation
provided to me throughout my project for constant inspiration, presence and
blessings.
I also extend my sincere appreciation to CRMC members who provided his valuable
suggestions and precious time in accomplishing my project report.
Lastly, I would like to thank the almighty and my parents for their moral support and
my friends with whom I shared my day-to-day experience and received lots of
suggestions that improved my quality of work.
Neeraj Kumar
Retail & Marketing Management
Enrollment No: FRM 1115
CERTIFICATE
This is to certify that the project work done on (Market Analysis of AMUL Products)
is an original work carried out by Mr. __________________ under my supervision
and guidance. The project report is submitted towards the partial fulfillment of two –
year, full time Post Graduate Diploma in Management.
His /Her performance, during the project was Satisfactory / Excellent.
Name & Sign of Industry Guide
Date: Name & Sign of Faculty
Student‘s Name and Sign
Roll No.
Mrs. Ritu Bajaj
(Guide/Mentor)
DECLARATION
I hereby declare that the project work entitled “Market Analysis of AMUL
Products” submitted to ‗Jagan Institute of Management Studies(JIMS)‘ for the partial
fulfillment of ‗PGDM program‘ is a record of an original work done by me under the
guidance of Mrs. Ritu Bajaj, Faculty Member, Jagan Institute of Management
Studies, and this project work has not formed the basis for the award of any degree,
associate ship, fellowship or any other similar titles.
Neeraj kumar
PGDM(RM)3rd
trimester
Enrollment No: FRM-1115
PREFACE
AMUL is the pride not only of Gujarat but also of entire country. I have
great pleasure in preparing this project of such organization. A person aspiring to
enter in management profession must have practical knowledge of the subject. The
objective of industrial training is to develop practical knowledge in student as a
supplement to the theoretical study of management in general as well as industrial. It
provides foundation to students intending to pursue a career in this field.
The industrial training is the most exciting experience of the education.
Every person needs some changes from the routine education. For this training
industry is selected by me and fetch information about different products of ‗AMUL ‘,
and its activities. But I concentrated more on taking information about Marketing
for AMUL milk to promote AMUL milk.
As I am student of management and the future Manager the training play
vital role in my education. Because of the industrial training I have knowledge
of industrial environment and I felt hat this would be the part of my life. I become
conscious that I am the manager of future and I should also learn how to solve
managerial problem and fulfill others requirement at the time.
I have tried my best to represent all relevant data and information relating
to my project work. I hope this report will serve the purpose of the readers.
Neeraj Kumar
PGDM(RM)
TABLE OF CONTENT
S.No
TOPICS
PAGE NO.
1 EXECUTIVE SUMMARY
2 INTRODUCTION
3 DECLARATION
4 PREFACE
5 ACKNOWLEDGEMENT
6 OBJECTIVE
7 FMCG:- INDUSTRY OVERVIEW
8 DAIRY INDUSTRY:- OVERVIEW
9 AMUL:- COMPANY PROFILE
10 SWOT ANALYSIS
11 RESEARCH METHODOLOGY
12 DATA COLLECTION & SAMPLING
13 FINDING & INTERPRETATION
14 COMPETITOR‘S ANALYSIS
15 AREAWISE REPORT
16 SUGGESTIONS & RECOMMENDATIONS
17 QUESTIONNAIRE & BIBILIOGRAPHY
EXECUTIVE SUMMARY
This project was undertaken with the objective “Market Analysis of AMUL
Products” in some area of South Delhi. The study was conducted at AMUL India
Ltd, NEW DELHI.
A sample size of 30 was taken from Sagar pur , Janak puri, Vikas puri,dwarka,
Palam, Najafgarh, Mahavir enclave, bharthal for the study, whose responses were
studied and interpreted .The research approach was observation and survey. The
process of analysis was done on the basis of responses.
It was found that major area faces a serious problem of milk curdling within 24 hrs.
which reduces the sales of Amul pouched milk. This problem is noticed only on those
areas where the supply of the milk comes from Softe plant of Amul. This problem
directly affects other factors.
As per the research we found that demand of AMUL product is very high. According
to the research it was a direct interaction with the retailers as well as customers. In the
form of personal interaction from retailers and customers we came to know about the
thinking of customers regarding Amul and its products as gone for a positive response
than its competitors.
FMCG:- Industry Overview
Indian FMCG sector size poised to reach US$ 47 bn by 2013 and US$ 74 bn
by 2018, growing annually at 10-12%.
By 2025, total consumption is likely to quadruple making India the 5th
largest consumer market.
Organized retail is expected to grow by 14-18% by 2015 thereby boosting
FMCG growth.
Indian rural market currently worth US$ 9 bn is expected to become a US$
100 bn opportunity by 2025
Indian FMCG industry worth US$ 29 bn roughly constitutes 2.2% of India‘s
GDP. Within the FMCG sector, Food products are the largest consumption
category.
Strategic focus on rural marketing, innovations, niche consumer segments,
exports,
Life style products to further the current 10% annual sector growth.
KEY PLAYERS Sales*(US$ Mn)
Segments
HUL
3921.5 Personal care, Food products, Household, Baby care, Fabric care
Amul India 1771.1 Food and beverage products
Nestle India 1155.4 Food and beverage products
ITC 805.7 Personal care, Food products
Britannia 759.9 Food products Dabur 635.9 Personal care, Food
products, Household Marico Industries 449.3 Personal care, Household,
Food products GSK Consumer 447.9 Food products, Personal
care Cadbury India 430.1 Food products Colgate Palmolive 391.8 Personal care, Oral care Procter & Gamble 388.5 Personal care, Household ,
Baby care, Fabric care Godrej (GPCL) 280.5 Personal care, Fabric care
GROWTH DRIVERS
Increasing disposable income
Growth in organized retail
High consumer confidence
Well established distribution network
Consumer receptiveness to innovation
Rapid urbanization and changing lifestyles CHALLENGES
Dairy industry: A profile (As per Jan 20, 2011)
India is the world leader in milk production with total volume of 115 million tons.
Driven by steady population growth and rising income, milk consumption continues
to rise in India. Dairy market is currently growing at an annual growth rate of around
7 per cent in volume terms. The market size of Indian dairy industry stands at around
US$ 45 billion.
Since India‘s population is predominantly vegetarian; milk serves as an important
part of daily diet. Indians use milk in various preparations such as in brewing tea and
coffee, in making yogurt or curd and in preparing many Indian dishes. For most
households, milk is also a popular beverage due to its nutritional value.
In India, rural households consume almost 50 percent of total milk production. Of the
share of milk sold in the domestic market, almost 50 percent is consumed in fluid
form, 35 percent is consumed as traditional products (cheese, yoghurt and milk based
sweets), and 15 percent is consumed for the production of butter, ghee, milk powder
and other processed dairy products (including baby foods, ice cream, whey powder,
casein, and milk albumin).
Most dairy products are consumed in the fresh form and only a small quantity is
processed for value addition. In recent years, however, the market for branded
processed food products has expanded. Although only around 2 per cent food is
processed in India, still the highest processing happens in the dairy sector, where 35
per cent of the total produce is processed, of which only 13 per cent is processed by
the organised sector.
KEY FACTS
65 per cent of the milk is sold in ―loose‖ form
Only 5 per cent of the milk is sold through retail chains
70 per cent is delivered to the homes by ‗milk agents‘
Carton milk or packaged milk has been growing at 24 per cent annually
Most branded FMCG companies are keen on launching flavoured dairy products
whose market size is pegged at US$ 166 million
PER CAPITA AVAILABILITY OF MILK
Year Grams per day
2000-01 220
2005-06 241
2008-09 250*
*estimated, Source: Department of Animal Husbandry and dairying
SWOT Analysis of the Industry
Strength Weakness
Largest milk producer in the world
A huge base of around 11 million
farmers
Traditional emphasis on consumption
Poor feeding practices
Poor access to institutional credit
Lack of cold storage facilities
Opportunity Threat
Elastic demand; economic growth will
spur demand
Increasing preference for branded dairy
products
Growing focus on health and nutrients
in urban market
Nearly 80 per cent of the Indian dairy
industry is unorganized
Removal of import duty has led to
the threat of dumping
PORTER COMPETITIVE ANALYSIS
Threat of competition is high as there are no entry barriers and consequently
there are many brands and local players making up the competitive rivalry
Threat of substitutes is low as milk is an essential item for beverages like tea,
coffee etc. Also traditional consumption habits make milk a favourite with
most households in India
Bargaining power of suppliers is low because suppliers mainly comprise rural
households and small co-operatives
Bargaining power of consumers is high because of competition in the
organized sector and large unorganized market in rural areas.
MAIN PLAYERS
Milk products - Amul, Mother Dairy, Britannia, Vijaya, Verka and Vadilal
Cheese products- Amul, Britannia, Dabur (Le Bon) are the leading players.
Other prominent players include Verka, Nandini, Vijaya and Vadilal
Dairy Whiteners - Nestle, Amul, Britannia, Dynamix Diary, Sterling Agro,
Haryana Milk Foods, Mohan Food, Modern Dairy, Mother Dairy
CRITICAL ISSUES:-
Key success factors Business concerns Demand drivers
Liquid milk Sourcing
Distribution
Financial distress of
co-operatives
Packaging in smaller
units
Packaged milk Technology Small market size Convenience
Health concerns
Milk products Branding
Refrigeration
Inadequate
infrastructure
Increase in per capita
income
Infant mil Education
Marketing
Poor penetration Changing food habits
REGULATORY CHANGES
Dairy sector was de-licensed in 1991
No industrial license is required fro dairy industry.
Foreign equity participation permitted to the extent of 51 per cent in dairy processing
sector
Excise duty on dairy machinery has been fully waived off.
KEY LEGISLATIONS:-
Milk and Milk Products Order 1992: With following controls
– Collection areas/milk sheds specified
– Processing capacity fixed
Revised MMPO in 2002: Controls stand withdrawn
The production, distribution and supply of milk products are controlled by the Milk
and Milk Products Order, 1992. The order sets sanitary requirements for dairies,
machinery, and premises, and includes quality control, certification, packing, marking
and labeling standards for milk and milk products.
The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of
Production, Supply and Distribution) Act, 1992 and Rules 1993
COMPANY PROFILE OF AMUL
AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit
"Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning
"priceless", are found in several Indian languages. Amul products have been in use in
millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee,
Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream,
Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India.
(Turnover: Rs. 52.55 billion in 2007-08). Today Amul is a symbol of many things. Of
high-quality products sold at reasonable prices.
50 years after it was first launched, Amul's sale figures have jumped from 1000
tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No other brand comes
even close to it. All because a thumb-sized girl climbed on to the hoardings and put a
magical spell on the masse
AMUL stands for,
A = Anand
M = Milk
U = Union
L = Limited
Amul (Anand milk union ltd.) is abased on four hands, which are coordinated with
each other. The actual meaning of this symbol is co-ordination of four hands of
different people by whom this union is at the top position in Asia.
First hand is of farmers, without whom the organization would not have
existed.
Second hand is of processors, who process the row material (milk)into finished
goods.
Third hand is of marketer, without whom the product would have
not reached the customers
Fourth hand is of customers, without whom the products would have not
carried on.
BASIC INFORMATION
Company Name:
Amul India (Gujarat Co-operative Milk Marketing
Federation Ltd.)
Business Type: Manufacturer
Product/Services:
Infant Milk Food,Skimmed Milk Powder,Butter,Cheese
(Cheddar,Mozzarella,Emmental,Gouda),Cheese
spreads,Ghee,Condensed Milk,Chocolates,malted milk
food,Breadspreads,fresh milk,UHT milk,Ice-cream.
Address: Amul Dairy Road
Number of Employees: 501 - 1000 People
URL: http://www.Amul.com
OWNERSHIP & CAPITAL
Year Established: 1973
Representative/Business
Owner: B M Vyas
Trade & Market
Main Markets:
North America
South America
Western Europe
Eastern Europe
Eastern Asia
Southeast Asia
Mid East
Africa
Oceania
Total Annual Sales
Volume: Above US$100 Million
Factory Information
No. of R&D Staff: Above 100 People
BRIEF HISTORY OF AMUL
AMUL (Anand Milk Union Limited), formed in 1946, is a dairy cooperative
movement in India. It is a brand name managed by an apex cooperative organization,
Gujarat Co-operative Milk Marketing Federation Lt. (GCMMF), which today is
jointly owned by some 2.6 million milk producers in Gujarat, India.
AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative
organization's success in the long term. It is one of the best examples of co-operative
achievement in the developing world.
"Anyone who has seen ... the dairy cooperatives in the state of Gujarat, especially the
highly successful one known as AMUL, will naturally wonder what combination of
influences and incentives is needed to multiply such a model a thousand times over in
developing regions everywhere. ‖
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
the largest producer of milk and milk products in the world. It is also the world's
biggest vegetarian cheese brand.
Amul is the largest food brand in India and world's Largest Pouched Milk Brand with
an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million
producer members with milk collection average of 10.16 million litres per 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.
Dr Verghese Kurien, former chairman of the GCMMF, is recognized as the man
behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the
Banaskantha Union, was elected chairman of GCMMF.
AMUL : THE ORIGIN
The mighty Ganges at its origin is but a tiny stream in the Gangotri ranges ofthe
Himalayas. Similar is the story of Amul which inspired Operation Flood and heralded
the 'White Revolution' in India. It began with two village cooperatives and 250 liters
of milk per day, nothing but a trickle compared to the flood it has become today.
Today Amul collects processes and distributes over a million liters of milk and milk
products per day, during the peak, on behalf of more than a thousand village
cooperatives owned by half a million farmer members.
THE START OF REVOLUTION
The revolution started as awareness among the farmers that grew and matured into a
protest movement and the determination to liberate them. Over four decades ago, the
life of a farmer in Kaira District was very much like that of his counterpart anywhere
else in India. His income was derived almost entirely from seasonal crops. The
income from milch buffaloes was undependable. The marketing and distribution
system for the milk was controlled by private traders and middlemen. As milk is
perishable, farmers were compelled to sell it for whatever they were offered. Often,
they had to sell cream and ghee at throwaway prices. In this situation, the one who
gained was the private trader. Gradually, the realization dawned on the farmers that
the exploitation by the trader could be checked only if marketed their milk
themselves. In order to do that they needed to form some sort of an organization. This
realization is what led to the establishment of the Kaira District Cooperative Milk
Producers' Union Limited (popularly known as Amul) which was formally registered
on December 14, 1946.
The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in June 1948.
An assured market proved a great incentive to the milk producers of the district. By
the end of 1948, more than 400 farmers joined in more village societies, and the
quantity of milk handled by one Union increased from 250 to 5,000 liters a day.
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. What's more, it does not disturb the agro system of the
farmers. It also enables the consumer an access to high quality milk and milk
products. Contrary to the traditional system, when the profit of the business was
cornered by the middlemen, the system ensured that the profit goes to the participants
for their socio-economic upliftment and common good. Looking back on the path
traversed by Amul, the following features make it a pattern and model for emulation
elsewhere. Amul has been able to:
Provide a support system to the milk producers without disturbing their agro-
economic systems
Even though, growing with time and on scale, it has remained with the
smallest producer members. In that sense, Amul is an example par excellence,
of an intervention for rural change.
Bring at the command of the rural milk producers the best of the technology
and harness its fruit for betterment
Produce an appropriate blend of the policy makers farmers board of
management and the professionals: each group appreciating its roles and
limitations
Plough back the profits, by prudent use of men, material and machines, in the
rural sector for the common good and betterment of the member producers
andThe Union looks after policy formulation, processing and marketing of
milk, provision of technical inputs to enhance milk yield of animals, the
artificial insemination service, veterinary care, better feeds and the like - all
through the village societies. The village society also facilitates the
implementation of various production enhancement and member education
programs undertaken by the Union. The staff of the village societies has been
trained to undertake the veterinary first-aid and the artificial insemination
activities on their own.
THE WINNING EDGE
Three aspects of India‘s modern dairy sector are particularly note worthy.
VAST MARKET-
In Indian context there is vast market available. It‘s focus is the increasingly
affluent middle class, numbering more then 300 million which is confined to
well-defined urban pockets & is easily accessible. Milk occupies pride of
place as the most coveted food in the Indian diet, after wheat & rice. Milk-
based sweets are a culinary delight in all homes through out the year
CO-OPERATIVE SYSTEM –
The milk production is pre-dominantly rooted in the co-operative system. Its
focus is on the small rural farmers having one or two cows/buffaloes yielding
3-5 liters of milk per animal. This system is the basis of Operation Flood, the
world’s largest dairy movement program.
PROFITABLE MARKETING –
The preferred dairy animal is the buffalo. Some 65 % of the world buffalo
milk is produced in India. Value for its high fat content is 7% w.r.t. 3.5% that
of cow. It is also high in calcium, phosphorous, lactose & proteins. Thus
Buffaloes milk is the delight of the milk processing for its more profitable
handling.
Amul was formed on Dec. 14, 1946 by an apex co-operative organization, Gujarat
Co-operative Milk Organization ( GCMMF ). Amul based in Anand, Gujarat has been a
sterling example of a co-operative organization‘s success in the long run. It was suggested
by quality control experts. Amul has spurred the Operation Flood of India, which has
made India the largest producer of milk & milk products in the world.
Dr. Verghese Kurien former chairman of the GCMMF is recognized as the man
behind the success of AMUL. On 10 August 2006 Parth Bhatol was elected
chairman of GCMMF.
Amul is an embodiment of faith in the ability of our farmers to break the shackles of
poverty & to create a socio-economic revolution in rural India. Through the ‗Anand Pattern‘,
our farmers demonstrated to the world, the key to successful ‗Management Of Development‘.
Anand Pattern is an innovative three tier structure combines the hard working farmers with
professional management & modern technology.
Slowly & gradually Amul has also expanded its distribution network across the
country. Currently, there are 3,500 distributors for value added milk products & 1800
distributors for fresh milk to ensure that Amul products are available to all segments of
consumers in India through more then 20 lakhs outlets. GCMMF has expanded its network to
more then 4,000 parlors across various towns & cities of the India.
MISSION
After achieving the new milestone of Rs.6,700 crores, now Amul has set new mission.
Federation chairman Parthi Bhatol has mentioned about ―Mission 2020‖. It envisages that
the dairy co-operative of Gujarat will have a total turnover of Rs.27000 crores by the year
2020. They also plan to double the processing capacity of dairy plant to 20.7 million kg.per
day.
Gujarat Cooperative Milk Marketing Federation
GCMMF: An Overview
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.
CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has
assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of
GCMMF.
Member‟s 13 district cooperative milk producers' Union
No. of Producer Members: 2.9 million
No. of Village Societies: 15,322
Total Milk handling capacity: 13.07 million litres per day
Milk collection (Total - 2009-10): 3.32 billion litres
Milk collection (Daily Average 2009-10): 9.10 million litres
Milk Drying Capacity: 647 Mts. per day
Cattlefeed manufacturing Capacity: 3740 Mts. per day
Sales figure of AMUL
Rs (million) US $ (in million)
1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09
2009-10
67113
74800
1504
1700
INTRODUCTION
a) Aim & Establishment of the company:
It all began when milk became a symbol of protest
Founded in 1946 to stop the exploitation by middlemen
Inspired by the freedom movement
The seeds of this unusual saga were sown more than 65 years back in Anand, a small
town in the state of Gujarat in western India. The exploitative trade practices followed
by the local trade cartel triggered off the cooperative movement. Angered by unfair
and manipulative practices followed by the trade, the farmers of the district
approached the great Indian patriot Sardar Vallabhbhai Patel for a solution. He
advised them to get rid of middlemen and form their own co-operative, which would
have procurement, processing and marketing under their control.
In 1946, the farmers of this area went on a milk strike refusing to be cowed down by
the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like
Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in 1946.
This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began
with just two village dairy co-operative societies and 247 litres of milk and is today
better known as Amul Dairy. Amul grew from strength to strength thanks to the
inspired leadership of Tribhuvandas Patel, the founder Chairman and the committed
professionalism of Dr Verghese Kurien, who was entrusted the task of running the
dairy from 1950.
The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach
should become the basis of a National Dairy Development policy. He understood that
the success of Amul could be attributed to four important factors. The farmers owned
the dairy, their elected representatives managed the village societies and the district
union, Â they employed professionals to operate the dairy and manage its business.
Most importantly, the co-operatives were sensitive to the needs of farmers and
responsive to their demands.
At his instance in 1965 the National Dairy Development Board was set up with the
basic objective of replicating the Amul model. Dr. Kurien was chosen to head the
institution as its Chairman and asked to replicate this model throughout the country.
MISSION STATEMENT ― W e a t GCMMF (Gujarat Co-operative milk Marketing Federation)
endeavor to satisfy the taste and nutritional requirements of the customers
of the world, through excellence in marketing by our committed team. Through co-
operative networking, we are committed to offering quality products that provide best
value for money.‖
PRODUCT LIFE CYCLE STAGES
A product passes through distinct stages during its life in market, each posing
different challenges, opportunities and problems .Profits rise and fall at different
stages of the product life cycle. There are four different stages of product life cycle,
namely
1. INTRODUCTION STAGE
2. GROWTH STAGE
3. MATURITY STAGE
4. DECLINE STAGE
Different products of AMUL are in different stages in the product life cycle.
Products like milk, butter, chocolate and cheese are in the maturity stage, while
ice-creams , chocolates and shrikhand are still in the growth stage. On the other
hand, products like milk powders, infant food, frozen food items and mix are in
introduction stage.
The company adopts aggressive selling techniques for those products which
are in the introductory stage, while very less promotional programmes are carried
out for those products which are in the growth or maturity stage.
PRODUCT RANGE
A vast varieties of products are offered by AMUL which are as follows:
BREADSPREADS
Amul Butter
Amul Lite Low Fat Breadspread
Amul Cooking Butter
CHEESE RANGE
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese
Amul Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese) Frozen and Tinned
Utterly Delicious Pizza
MITHAEE RANGE (ETHNIC SWEETS)
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
Amul Amrakhand
Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamun Mix
Amul Mithaee Kulfi Mix
MILK RANGE
Amul Taaza 3% fat Milk
Amul Gold 4.5% fat Milk
Amul Slim-n-Trim 0% fat milk
Amul Chocolate Milk
Amul Fresh Cream
Amul Snowcap Softy Mix
Amul Taaza Double Toned Milk
PURE GHEE
Amul Pure Ghee
Sagar Pure Ghee
Amul Cow Ghee
INFANT MILK RANGE
Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 ( 6 months above)
Amulspray Infant Milk Food
MILK POWDERS
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener
SWEETENED CONDENSED MILK
Amul Mithaimate Sweetened Condensed Milk
FRESH MILK
Amul Taaza Toned Milk 3% fat
Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardised Milk 3% fat
Amul Smart Double Toned Milk 1.5% fat
CURD PRODUCTS
Amul Masti Dahi (fresh curd)
Amul Butter Milk
Amul Lassi
AMUL ICECREAMS
Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti
Frutti)
Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar
Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi)
Utsav Range (Anjir, Roasted Almond)
Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate)
Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry,
Black Currant)
Sundae Range (Mango, Black Currant, Chocolate, Strawberry)
Millennium Icecream (Cheese with Almonds, Dates with Honey)
Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi,
Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)
Cool Candies (Orange, Mango)
Cassatta Tricone Cones (Butterscotch, Chocolate)
Megabite Almond Cone Frostik - 3 layer chocolate Bar
Fundoo Range - exclusively for kids
SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple)
CHOCOLATE & CONFECTIONERY
Amul Milk Chocolate
Amul Fruit & Nut Chocolate
Amul Eclairs
BROWN BEVERAGE
Nutramul Malted Milk Food
MILK DRINK
Amul Shakti Flavoured Milk
SWOT ANALYSIS
STRENGTH:
1. Corporate Image.
2. Diversified product line.
3. Dedicated work force.
4. Totally integrated operation.
5. Good for sightedness and long term vision.
6. Low capital cost
7. Brand Power.
8. High quality product.
9. Customer as well as customer support.
WEAKNESS:
1.Supply is not regular.
2. Distribution of Amul pouch milk is not proper in some of areas
3. Co-ordination of company or retailer is not proper.
4.―Weak management support and less effective customer care‖ said
some retailers.
OPPORTUNITIES:
1. With the liberalization new avenues of exploiting open market
economy are being open up.
2. Being the oldest co-operative society use their brand name as already
being leader in dairy products, the other competitors are very far behind
AMUL.
3. New product from Amul i.e. Amul preferred outlet(APO) can be
very successul in the market as we receive better response from Distributors
as well retailers and consumers.
4. Must take the advantage of priority given to the Dairy industries by
the Govt. in terms of loan.
THREATS:
1. With the globalization and liberalization various global brands are
started to peak in.
2. Competition from other Co-operative and local industries are present in
the market.
3. The milk curdling problem allows the competitors to penetrate the
market which is previously covered by the Amul. The milk from Softe plant
is responsible for that as a retailer can not bear huge loss.
Some serious problem found is of the late delivery of milk in area like R.K.Puram.
Sometime distributor‘s attitude and rude behavior is responsible for decrease in sales.
FINDINGS & INTERPRETATION
Q.1. Do you sell Amul Products?
(A) Yes- 135
(B) No- 16
Interpretation:- In 151 retailers, it includes DMS, Mother dairy and retailers out
of which 135 sells AMUL milk and 16 do not sell Amul milk.
Q.2. Which products:-
A) Milk -100 %
B) Curd - 66 %
C) Buttermilk – 53%
Yes
No
INTERPRETATION:- Out of 151 retailers 151 sells milk, 100 retailers sells curd
and only 80 retailers i.e. only 53 % sells buttermilk. Generally there are
irregularities in the supply of curd.
Q. 3. Which other brand of milk products do you sell?
A) Amul 131
B) Mother Dairy 87
C) Param 0
D) DMS 5
E) Nestle 40
F) Britannia 25
IN %
0
50
100
AMUL
CURD
BUTTERMILK
IN %
INTERPRETATION:- As we can say on the basis of the graph Amul is a leader but
other competitor mother dairy is also gaining the market .Later two competitor shows
their penetration in curd market .
Q.4 Which variance of milk do you sell?
A) Full Cream - 147 retailers
B) Toned - 128 Retailers
C) Double toned- 107 retailers
0
20
40
60
80
100
120
140
No. of Respondents
No. of Respondents
INTERPRETATION:- As most of retailers sell the full cream milk, it means
people prefer full cream in comparison with Toned and double toned.
Q.5 At which time do you receive the supply of milk?
A) 6:00-7:00 a.m. - 69
B) 7:00-8:00 a.m.- 53
C) 8:00-9:00 a.m.- 10
D) 9:00-10:00 a.m.- 2
E) Above 10:00 a.m -0
No. of retailers
FCM
TM
DTM
INTERPRETATION:- Total of 135 Amul retailers only 69 retailers gets milk
before 7:00 a.m. 53 retailers i.e. 40 % retailers gets milk between 7:00 a.m.- 8:00 a.m.
This is not the suitable time as the milk should be deliver within 7:00a.m.
Q.7. How do you think the sale of Amul pouched milk can be increased?
A) Advertisement- 47
B) Promotional schemes - 75
C) Early Delivery - 17
D) Proper mgmt. support - 67
No.of respondents
6:00-7:00
7:00-8:00
8:00-9:00
9:00-10:00
Above 10:00
INTERPRETATION:- AMUL can increase their sale graph by proper mgmt.
support as it is very necessary to make better customer relationship management.
Promotional scheme is also a very good option to increase the sale of milk products.
As we don‘t found the ads in this area and research says 30 % people think promotion
can increase the sale.
Q.9. What kind of problem (complain do you have from the distribution
channels)?
A) Late Delivery. -17
B) Behavior. -16
C) Irregular supply.-18 (especially in curd)
D) No mgmt. support- 47
E) Leaked packets. - 62
F) Demand not met -10
G) No complain -26
No.of respondents
Advertisment
Promotional schemes
Early Delivery
Proper mgmt. support
INTERPRETATION:- As there is more complain about leaked packet and no
replacement of that leaked packets is a major problem and the retailers found less
support from management. Behavior of distributors in area of Bharthal and uttam
nagar is also a matter of consideration. Where there is also a problem of late delivery.
Q.10 Does the distributor take necessary action regarding your problem?
A) Yes - 25
B) No -34
C) Sometimes -39
D) Can‘t say - 37
LateDelivery
Behavior. Irregularsupply
Nomgmt.
support
Leakedpackets
Demandnot met
Nocomplain
17 16 18
47 62
10 26
No. of respondents
No. of respondents
19%
25%
29%
27%
No. of respondents
Yes No Sometimes Can't say
INTERPRETATION:- 29 % retailers said the distributor take action sometimes,
27% said they don‘t know whether distributor take any action. 25% said distributors
didn‘t take any action.
Q.11. Does Amul as an organization taking enough steps to market its milk
products (milk, curd, buttermilk)?
A) Yes - 28
B) No - 48
C) Sometimes -44
D) Can‘t say -22
INTERPRETATION:- 48 retailers said that Amul as an organization don‘t handle
our query. 44 retailers think that sometimes their problem solved. Only 20 %
retailers think that their problems are solved by the Amul.
No. of respondents
Yes
No
Sometimes
Can't say
12. Which factor in milk the customer has major concerns:-
A) Price - 33
B) Quality -81
C) Early delivery -22
D) Brand name -55
E) Easy availability - 39
INTERPRETTION:- Highest area covered by quality factor means quality is
important for customers followed by brand name, availability, Price of the milk and
early delivery. As delivery is timely in the major area visited by me does not a major
issue.
13. Which factor do you consider that affect the sale (retailer point of view)?
A) Price -34
B) Quality - 59
C) Commission on sale -47
0
10
20
30
40
50
60
70
80
90
Price Quality Earlydelivery
Brandname
EasyAvailibility
No. of Respondents
D) Brand - 40
E) Timely Delivery -16
INTERPRETATION:- As result said quality is on the top as major concerns by the
retailers due to the fact that many retailers face milk curdling problem in Amul milk
trying to sell the milk of other brand to retain their own customer and be safe from the
loss due to milk curdling. After the quality commission on sale is important factor
followed by brand name, price and timely delivery. Price is major concerns in the area
where low income group people live.
15. What can be various marketing schemes to promote the sales & encourage
more retailers to sell Amul milk products.
A) Schemes -64
B) Advertisement - 51
C) Credit facility - 3
D) Refrigeration facility - 10
E) Evening supply of milk - 26
F) Proper mgmt. support -50
0
10
20
30
40
50
60
70
No. of respomdents
No. of respomdents
INTERPRETATION:- Most of the retailers want promotional schemes
to increase the sell followed by advertisement, proper mgmt support, evening
supply of milk, refrigeration facility, credit facility.
Q.8 Rate the distributors and his services (out of 10).
From research I found the following overall rating of Amul and their competitors
as per the distributors about their distribution system, distribution channels & product
related services.
A) Amul -------------------------- 7
B) Mother Dairy --------------------------- 8
C) DMS ------------------------- 5
D) Nestle (curd only) ---------------------- 8
E) Paras ----------------------- 5
F) Britannia(curd only) ------------------------ 9
Reasons for Low rating of Amul:-
1. May be due to milk bursting problem in most of area.
2. Somewhere late delivery and irregular supply of curd (cup).
3. Low management support.
4. As the better distribution is the core strength of Mother
0
10
20
30
40
50
60
70
No. of respondents
No. of respondents
dairy and Britannia. Hence they are emerging as tough competitor.
Q. 14 Is about checking the level of satisfaction of customer of Amul on the
semantic differential scale.
Is your customer of milk products is satisfied?
YES ----- *** *** ----- ----- NO
Research said that customer is satisfied at +4-+3 level, which can be considered
as good but retailers satisfaction is very necessary as being a main connecting link
between the customer and organization.
If there is proper distribution channel with some good management support surely
Amul will remain on the top in each area of dairy product.
COMPETITOR ANALYSIS
Amul has many competitors in the market of Delhi. The major competitors are-
Mother dairy, Paras, DMS, Param, Gopaljee, Reliance, Britannia, Nestle, Dairy
India etc.
But the Mother dairy is giving tough competition to Amul in all the range of milk
products.
Strength of AMUL= Quality products, Brand name, Corporate
image, Good work Force.
Strength of Mother Dairy = Very good distribution channel( through
MD booth, Distributors and retailers.
Mother dairy providing extra facilities like refrigeration facility on behalf of small
amount of security to retailers whereas AMUL provide this facility on permanent
basis by taking complete charge of fridge. Some promotional schemes are also
being given by the Mother dairy.
In the term of product quality Amul is far better than Mother dairy and customer‘s
first preference is AMUL.
Market analysis says Amul is No. 1 in the milk market of Delhi.
PRODUCT LINE
AMUL has basically 4 product lines which are milk and milk products, ice-cream,
chocolate, wet product line and dry product line. The company is increasing the
length of its product line by filling its line i.e. by adding more products within the
existing lines.
MILK ICE CREAM &
CHOCOLATE
WET PRODUCTS DRY PRODUCTS
AMUL TAAZA AMUL MILK
CHOCOLATE
AMUL BUTTER AMUL FULL CREAM
MILK POWDER
AMUL GOLD
AMUL FRUIT AND
NUT CHOCOLATE
AMUL LITE LOW
FAT BREAD SPREAD
AMULYA DAIRY
WHITENER
AMUL SLIM AND
TRIM MILK
AMUL ECLAIRS AMUL COOKING
BUTTER
SAGAR SKIMMED
MILK POWDER
AMUL CHOCOLATE
MILK
AMUL FUNDOO
CHOCOLATE
AMUL PROCESSED
CHEESE SPREAD
SAGAR TEA &
COFFEE WHITENER
AMUL FRESH
CREAM
AMUL BINDAS
CHOCOLATE
AMUL PIZZA
CHEESE
AMUL MITHAEE
GULABJAMUN MIX
AMUL SNOWCAP
SOFTY MIX
ALMOND BAR AMUL SHREDED
PIZZA CHEESE
AMUL MITHAEE
KULFI MIX
AMUL TAAZA
DOUBLE TONED
MILK
AMUL COOKING
CHOCOLATE
AMUL EMMENTAL
CHEESE
AMUL INFANT MILK
FORMULA-I
AMUL MITHAIMATE
SWEETENED
CONDENSED MILK
ROYAL TREAT
RANGE
AMUL GAUDA
CHEESE
AMUL INFANT MILK
FORMULA-II
AMUL TAAZA
TONED MILK
NUT-O-MANIA
RANGE
AMUL MALAI
PANEER
AMULSPRAY INFANT
MILK FOOD
AMUL GOLD FULL
CREAM MILK
UTSAV RANGE UTTERLY
DELICIOUS PIZZA
NUTRAMUL-MALTED
MILK FOOD
AMUL SHAKTI
STANDARDISED
MILK
SIMPLY DELICIOUS
RANGE
AMUL SHRIKHAND
AMUL SMART
DOUBLE TONED
MILK
NATURE‘S TREAT AMUL MITHAEE
GULABJAMUNS
AMUL COOL MILK SUNDAE RANGE AMUL PURE GHEE
AMUL SHAKTI
FLAVOURED MILK
MILLENIUM
ICECREAM
SAGAR PURE GHEE
MILKBARS AMUL COW GHEE
COOL CANDIES AMUL MASTI DAHI
TRICONE CONES AMUL BUTTERMILK
FUNDOO RANGE AMUL LASSEE
SLIMSCOOP FAT
FREE FROZEN
DESERT
MASTI TOMATO
SOUP
b) Departments of the Company:
1.Organizational chart showing the different departments:
The following is internal organisation chart of Amul:
I.PRODUCTION DEPARTMENT:-
In this department all the things are been made means here company is producing
product. So it is called as a production department. It is the concern with the creation
of a product. It is a line function, because it contributes directly to the
accomplishment of the objectives of a business. This department involves very huge
variety of ranging, activities from the location of a mfg. Plant to the final preparation
of products to be distributed by the marketing department. Now a days in our India is
developing. There is given much important to the successful company. Successful
company means does not in the Large Scale or in high capital investment but the
industry which is running successfully with the help of the staff.
IMPORTANCE :
In each and every business field production department is very much important,
without production department Company cannot produce anything. The production
management involves aspects like product planning the product line, the co-ordination
and controlling production process etc.
II.PERSONNEL DEPARTMENT:-
In each and every company there are many important and necessary departments.
Each and every successful company or the failure company or the failure company
does not depends on any materials and machines but they are depends on the skill of
the personnel employed in organization. Management of the people is the one of the
main function of the personnel department. There are also the main functions except
the management. Personnel management is people‘s management at work. Thus
management of people is a very important and challenging job for organization. The
functions which are described as above are usually performed by the personnel
manager.
IMPORTANCE Size of the product, purpose, location or importance is the common element for all the
business. These all element are made by the human. AMUL INDUSTRIES PVT.
LTD. Give important to the personnel department. They give more and more
important to the human resource. Because human means employees are the mains part
of successful company.
III.MARKETING DEPARTMENT:-
In each and every business there is one of the main department is Marketing
Department. It is important for each and every successful or unsuccessful business.
Because without Marketing Department any business cannot run properly, and cannot
achieve their desire goal and objective. If we want to achieve the objective therefore
we have to keep the good Marketing Department. If marketing department is good
then our company‘s product will be go ahead and if our marketing department is bad
then our product not go ahead, and there may be possibility that we under go to the
loss.
IMPORTANCE If the company wants to make successful company then company has to give more
and more importance to the Marketing Department. AMUL INDUSTRIES PVT.
LTD. Is always being kept watching in it. They are always giving more and core
importance to the Marketing Department. So that they can achieves their desired goals
or objectives in proper way.
IV. FINANCE DEPARTMENT:-
Finance is rooting of all Industrial a Trading activity. Finance is needed when the
business is started. It is required to keep the business going, and it is needed when the
business expands. According to Henry Fayol, ―Finance is like an arm &leg either.
You use it or loss it.‖ Thus we can say that the Finance is considered as base for every
business & business without finance is shown as dead body.
V. SALES AND PURCHSE DEPARTMENT:-As their names suggests,
both are used for sale or purchase of goods. Sales department is a department made
within the organization which is concerned with sales of products. Selling is
necessary, as it is directly related with profit.
Similarly, the company has a purchases department too, which takes care of purchases
of raw materials from outside. Raw material is required to make finished products by
use of some processes.
OBJECTIVES OF THE STUDY
Following are the major objectives : -
1. To study the milk, curd, and buttermilk market scenario in various area
Sagarpur , Janak puri,Vikas puri, Palam, Najafgarh, Mahavir enclave,
bharthal. The first and foremost objective of the project was perfect. Under
this, the consumption pattern, market share of various brands and the
factors influencing the buying decisions of the shopkeepers were studied.
2. To study the position of amul milk, butter and buttermilk in established
market. The nearest competitor and the various possibilities has been
explored to minimize their threats.
3. To estimate the market potential for amul milk, butter and buttermilk in
unexplored market was one of the major objectives. Here the conditions
were also studied under which the consumer as well as the retailer would
be willing to buy amul milk.
4. To identify the problem areas for all the places separately. Here the
shortcomings of amul were studied which could be removed after careful
understanding & detailed analysis
5. To develop strategies and come out with suggestions for increasing the
sales.
LITERATURE REVIEW
A m u l i s o n e o f t h e m o s t s u c c e s s f u l I n d i a n b u s i n e s s f i r m . I t
p r o v i d e s v a r i o u s m i l k p r o d u c t s i n w h i c h i t s m a i n b r a n d
p r o d u c t A m u l B u t t e r i s a l so p r es en t . Am ul b egi ns w i t h j u s t
l i t t l e g r o u p o f m i l k p r o d u c i n g v i l l a g e r s a n d n o w
b e c o m e l a r g e s t m i l k p r od u c in g co o pe r a t iv e so c i e t y i n In d i a .
I t h ad s t a r t ed wi th t wo v i l l age co op e r a t iv es w i t h 2 5 0 l i t e r s
m i l k p r o d u c i n g c a p a c i t y a n d n o w i t c o l l e c t s d a i l y a 6 . 5
m i l l i o n ( a v e r a g e ) o f m i l k f r o m a v e r y l a r g e n o o f I n d i a n
v i l l a g e s . I t h a s b e c o m e a h o p e f o r poor villagers who were
exploiting by middlemen before the origin of Amul or Gujarat m i l k
m ark e t in g f ed er a t io n o r K a i r a u n io n . B y o r i g i n a t ed Amu l go t i t s
f i r s t cha i rm an Shri Tribhuvandas Patel who through his integrity
had favor of villagers and u n d e r s t and s th e n eeds o f coo p e r a t i ve
s o c i e t y. T h r ou gh th e i r i n t e r pe r so n a l f a i t h an d cooperation Amul got
this success history besides facing various diff iculties.
G u ja r a t Mi l k M ark e t in g Fed e r a t i on i s a co op e r a t iv e so c i e t y. I t
d o ne a v e r y go o d j ob in m i lk m ar k e t in g , m ak i n g w ay f o r po or
v i l l age r s e a rn in gs . I t n o t on l y p r o v id e s e f fec t iv e r e tu rn s t o t h e
f a r m er s bu t a l so t ak e ca r e s o f cus tom ers i n t e re s t s . I t s e r v es f o r
cu s t om er o n t h e b a s i s o f I n d i a n e t h i c s . T h e y p r o v i d e m i l k
o f b e t t e r n u t r i e n t s , b e t t e r q u a l i t y p r od u c t s r egu l a r l y an d h e lp
i n mee t in g th e co un t r y‘ s n eed o f d a i ly m i lk r eq u i r em en t s . Some of
the articles on Amul are as follows: -
“India report part 5: AMUL, India‟s number-one dairy brand”
Published: April 11, 2006 reference www.milk production.com
•On 14 December 1946 the predecessor of the Gujarat Milk Marketing
Federation, better known as the AMUL dairy cooperative, was founded in Kaira
(Gujarat state).
•The daily milk collection was 247 litres.
•Anno 2005 the 2.4 million members/ dairy farmers supplied AMUL daily
with 5.9 million litres of milk.
According to Mr Khanna, an AMUL director ‗with special assignments‘ – as his
business card says– the milk supply to his co-operative is increasing all the
time. In the 2003/04 financial year, the m i lk co l l e c t i on w as u p t o 5 .1
m i l l i on l i t r e s p e r da y, a r i s e o f s om e 1 5 .2 %. B y co n t r as t , t h e co -
operative‘s turnover rose by just 1.4% in the financial year 2004/05, bringing it to
INR 29.22 billion or EUR 584 million. This growth is lower than expected
and due, believes Khanna, to the reduced milk supply in the latter months
of 2004 and the poor increase in the price of basic products in the early
months of 2005.
From what Khanna is saying, it is evident that AMUL is a co-operative operation
without equal. The2 . 4 m i l l i on m em b ers / d a i r y f a r m er s i n t he s t a t e o f
G u ja r a t a r e g r o up ed in to 11 ,6 15 v i l l age co - operatives equipped with
both testing equipment and a milk cooling tank. Some of the unpasteurized milk is
sold to the villagers. The rest is transported by milk tankers twice a day to
the 12 district Milk Unions in the state. These Milk Unions process the milk by
using the services of 24 processing companies. The output of dairy products reflects
the order submitted by the state‘s marketing body, the Gujarat Co-operative Milk
Marketing Federation. These products are then sold throughout India under the
AMUL and Sagar brand names.
Indian consumers are increasingly showing a preference for packaged
dairy products, due to food safety concerns. This explains in part why the
revenues of AMUL‘s consumer range of packaged dairy products grew by
11.8% in the last financial year. The sales revenue of pasteurised drinking
milk in plastic pouches under the AMUL brand rose in 2004/05 by no less than 36%.
This rise was attributable chiefly to the successful introduction of AMUL milk more
than a year ago in the Indian c i t y o f K o lk a t a ( f o rm er l y C a l cu t t a ) , ho me
t o m i l l i on s o f p e op l e . T hank s t o t h i s s u cces s , t h e pasteurised milk
pouches are the biggest contributor to AMUL‘s total turnover. In the
2004/05financial year, this range brought in a turnover of INR 6.26 billion or EUR
125 million.
The turnover of UHT milk grew 23% in the last financial year compared to
preceding year. The turnover of ice cream rose by 10%, consolidating
AMUL‘s position as market leader. And despite cu t - t h ro a t com p et i t i o n ,
t h e s a l e s o f AM U L b r and bu t t e r ros e by 4 . 5 % . T h e s a l e s o f ch ee se
an d cheese spreads rose by 21%. Cheese includes cheese for pizzas.
And, says Kurien, other packaged products such as flavoured milk, fresh
cream, paneer or cottage cheese also have the potential to become major
products bearing the AMUL brand within a couple of years.
As the country‘s largest co-operative dairy, AMUL has developed a two-pronged
strategy to address his issue and develop national presence. Firstly, last year AMUL
expanded its distribution network to include some of India‘s smaller cities. In
so doing, the co-operative has responded quickly to rapidly changing market
conditions.
Situated all over India, these smaller cities are now promising markets with great
purchasing power a s t he i n com es o f In d i a ‘ s m id d l e c l as s a re r ap i d l y
r i s in g an d th e b e t t e r -o f f ru r a l f ami l i e s a r e mi g r a t i n g t o t h e s e
d ev e l op i n g c i t i e s . In t h e l a s t f i n an c i a l yea r A M U L h as in t r od uced
s om e 9 00 f oo d who l es a l e r s i n t h es e s m al l e r c i t i e s t o i t s p r od u c t
r an ge . ‗T h i s i n i t i a t i v e h as a l r e ad y s t a r t ed y i e l d in g r e su l t s .
A M U L p r o du c t s a r e i nc r eas in g l y av a i l ab l e i n sm al l e r c i t i e s
t h ro u gho u t In d i a . T h i s i n i t i a t i v e , w h i ch w e ‘ l l b e con t in u i n g fo r
t h e t im e b e i n g , i s gen e r a t i n g ad d i t i o n a l t u r no ve r , ‘ s ays
K u r i en . Di r ec t o r Kh ann a d e s c r ib es t he s eco nd p r on g o f A MU L‘ s
ex p an s i on p l an . ‗W e ex p ec t t h a t t h e m i lk p r od u c t i on i n ou r
p r o cu r em en t a r ea , t h e s t a t e o f G u j a ra t , w i l l i n c r eas e by 5 % o r
m o re p er yea r i n t h e comi n g p e r i od . T h a t ‘ s t he f i r s t so u r ce o f
gr o w th . A s n o t o n ly t h e d a i r y m ar k e t b u t a l so t h e m ar k e t f o r f a rm
m i lk h as been l i b e ra l i s ed , w e a r e n ow co l l e c t i n g mi l k in s ix o th e r
p l ace s i n In d i a m i lk .
What is new that we would like to talk to other co-operative dairy companies. Most of
them are also organised by state following the Anand model. Our standpoint is clear.
They know about milk processing and we know about marketing. They can continue
to produce dairy products that we will sell under our strong AMUL and SAGAR
brands. In this way, our partners will be able to piggy-back on the success of AMUL‘s
ever expanding distribution network.‘ He foresees a future in which the players in
India‘s co-operative dairy world increasingly cooperate to offer the Indian consumer a
wide range of dairy products. It is completely obvious to him that AMUL will be a
driving force in shaping this new future. ‗AMUL is India‘s oldest dairy brand.
But it is more than a brand. It is also a question of belief. Belief in the co-operative, in
a dairy world owned by the dairy farmers. That is important because they and the rest
of the population in thevillages must be pulled up to a higher standard of living,‘ says
AMUL director Khanna, speaking straight from the heart.
Mithaee is an example of Indian sweets made with sweetened condensed milk. As
AMUL delivers this product in cans, it has a shelf life of nine months and can be
stored outside the cooling chain.
Article from India Dossier, ZuivelZicht - 14 december 2005
“INDIA‟S TOP BRANDS”“AMUL‟S ADVERTISING AND MARKETING
SPEND HAS NEVER EXCEEDED 1% OFITS REVENUES”
By
Rajeshwari Sharma
Sat, Aug 25 2007. 3:30 AM IST
SUMMARY: ‗
Media‘, brand consultancy Asian Integrated Media Ltd and market research company
Synovate done this survey on the top brand in Asia, among this Amul comes one of
the most successful Indian business firm. It is because Amul‘s strategy of
using―umbrella branding‖ has paid off.
According to R.S. Sodhi, chief general manager, GCMMF. ―Our strength comes
from consistency, trust and relevance of our products.‖ Sodhi claimed that
Amul‘s advertising and marketing spend has never exceeded 1% of its revenues. Most
other food companies spend 6-7% of revenues on advertising and marketing,he added.
―They (GCMMF) are not big spenders compared to Britannia or Nestle. Despite a
limited budget, Amul‘s creatives in the form of billboards or the Taste of India
campaign have always managed to evoke a larger-than-life brand feel, consistency
and spirit of Indian culture in a contemporary way,‖ said Shashi Sinha,executive
director, FCB Ulka, GCMMF‘s advertising agency.
„We may end up touching a turnover of Rs20,000 cr by 2015‟
Wed, Oct 3 2007. 12:21 AM IST by
Sunil Raghu
Bharat M.Vyas has been the managing director of Gujarat Cooperative Milk
Marketing Federation Ltd (GCMMF), the owner of brand Amul, for more than 12
years. In an interview with Mint, BM, as Vyas is referred to by many, discusses the
business strategy of India‘s biggest cooperative firm, which finds itself under
increasing pressure from nimbler private sector rivals.
RESEARCH METHODOLOGY
The research methodology adopted is of descriptive type. The major purpose of this
research was the description of the state of affairs as it exists at present. Even though
there was no control over the variables. The cause were tried to be discovered. The
method of research utilized here was survey method. The facts or information
gathered were analyzed to make a critical evaluation of the information.
1.1 Research Approach : -
One had to depend mainly on primary data as first had knowledge was required about
market position of various brands in the milk, curd and buttermilk market. So our
actual study was conducted in 3 stages : -
First we discussed with our guiding officers on the various parameters of the project.
We also talked informally with some consumers and retailers to have some
preliminary idea.
Next format was prepared based on priori discussion. Separate questionnaire was
prepared for established and unexplored markets.
Lastly the final questionnaire was prepared with various modification to the previous
questionnaire.
1.2 Sampling techniques : -
The stratified sampling method was followed. The population of all the towns was not
homogeneous. There exists people of different occupation. So stratified sampling
technique had to be applied in order to obtain a representative sample.
1.3 Sample size : -
The sample size varied from town to town for retailers. In Sagarpur , Janak puri,
Vikas puri, Palam, Najafgarh, Mahavir enclave, bharthal the sample size taken was
30. The sample size of retailers varied from 7 to 25 according to the size of the
market.
1.4 Data Analysis : -
The data were analyzed separately for each area. The findings resulting of the analysis
varied from area to area and the recommendations stated accordingly arrived at after
thorough analysis and recommendation stated accordingly.
MAJOR FINDINGS
1) Majority of the consumers assign easy availability and quality as their main
preference in buying milk of a particular brand.
2) Per capital consumption is around 250 ml.
3) In established market, people buy amul milk mainly because of its brand
popularity, good quality and easy availability.
4) Private brand have been able to enter the market only on the basis of their low-
pricing strategy.
5) Brand awareness for amul milk is vey high.
6) The main preference for selling amul milk by the retailers is the customer
demand which also helps in sales of other products like bread, biscuit etc.
7) Town or villages where amul milk is less available at present, most people
prefer centre and nearby local shops.
SUGGESTIONS
1) People use milk for various purposes like making Curd, Lassi, Ice-cream
besides Tea and for drinking purpose. So a positive perception can be created
to make them think that amul milk is best suited for those purposes.
2) Projector films may be shown to the villagers emphasizing on the quality and
the hygenity of amul milk. This would help in convincing the people &
creating a favorable attitude.
3) Arrangement should be made to ensure regular supply of amul milk to the
consumers in new places once the milk in introduced. If possible
transportation facility should also be arranged to make it convenient for the
retailers.
4) Suggestions & complaints made by retailers & consumers should be given due
attention to provide maximum satisfaction. This could create and impression
that amul cares for them.
LIMITATION
1) The time for the project was short & it had to be completed on time.
2) Language barrier was also a problem in one or two areas.
3) Retailers were not ready to furnish the detailed information. Some
retailers in the villages were hesitant in giving response which could have
lead to some sort of biasedness.
OVERALL EXPERIENCE
My overall experience was very well. I was responsible for visiting areas,
prescribed by my coordinator and asking various questions from retailers of that
particular area. A particular format was given by him. I worked for marketing
department of the company.
I could have done my work much better by getting sufficient knowledge about the
supply system of the company. One of the major problem I faced was lack of
information. We were informed about several things but most of the people asked me
about many additional things about which I had no idea, somehow I managed but it
could be better if I would have given enough information.
I have gained more experience in the way that I learnt many things. I learnt how to
communicate well with people. Even in the village areas too, I used to speak formal
language. Apart from this it also helped me in gaining confidence. Interacting with a
lot of people each and every day and asking for their details too, helped me overcome
my shyness and fear of public speaking up to a large extent.
My this experience will help me in future in a good way as now I know how an
organization works, what are the tasks they perform and how do they do it. It will help
me in quick learning of any task assigned and also I will be ready for any kind of task
and whatever they will teach me,I will be able to learn and understand quickly.
BIBLIOGRAPHY
Principles of Marketing -- Philip Kotler & Gary Armstrong, 2000.
Marketing Management -- Philip Kotler, 2000.
Product management—S.A.Chunawala, 1999.
Research Methodology - - C.R. Kothari
www.amul.com
www.gcmmf.org
www.indiandairy.com
www.nddb.com