ABSTRACT

In today’s competitive world while entering in the market it is very necessary to have

good knowledge of the potential of a particular market. The growth of a company is

invariably determined not just by its strategy, but on how it responds to the challenges

it encounters. Over the decades AMUL has succeZssfully countered several

challenges that have come its way with innovative responses and continuous

improvement, which have enabled it to remain stable and even convert some of these

challenges into opportunities. It is the culture of endurance that has accorded AMUL

the insight and focus to deal with the current economic environment. Drawing from

its inner strength and beliefs, AMUL responded by launching several initiatives

across all its operations in various geographies that are helping the group achieve

growth even in current times. It is also this very strategic culture that will propel

AMUL to continue on its growth trajectory in years to come.

The report provides a comprehensive insight into the company and also about the

company’s SWOT analysis. This report mainly studies in detail the various product

mix strategies of the company and also focuses on the segmentation of both company

based and industry based and helps in analyzing the company’s competitive

advantage and the reason behind its success.

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OBJECTIVE OF THE STUDY

Amul & Parag Dairy is the market leader of dairy based food products in Meerut

City. Amul is the major competitors in the market against Parag Dairy. It is important to

get an idea regarding Amul’s & Parag Dairy position in Meerut City. It would not help

Amul to capitalize on existing potential but also to formulate strategies and to fill the

look holes and gaps to fight the competitive situation

The Objective also contains:

To determine the consumer preferences of Amul & Parag dairy product with the

help of some parameters -quality, taste, price, packing style.

To compare the dairy product of Amul and Parag dairy on the basis of above

parameters

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SIGNIFICANCE OF THE TOPIC

To know perception regarding these dairy products among both retailers as well

as in the customers.

To Understand the terminologies used in market by retailers.

Develop the usefulness in enhancing the usability of the product.

To know different selling skills at various situation of market.

To gain knowledge about distribution network of Amul and Parag.

To learn different strategies which are used by retailers in market to convince the

customers.

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INTRODUCTION TO THE INDIAN DAIRY

INDUSTRY

 The world's biggest dairy producing country is growing fast and looking to become

an export powerhouse despite major quality problems...

A Note to our Readers: the following information on India's dairy sector is reproduced

from India Infoline.com. India is the world's largest milk producing country and is

growing fast, with an eye toward becoming a major dairy exporter. This article is helpful

reading for anyone interested better understanding.

Consumer Habits and Practices

Milk has been an integral part of Indian food for centuries. The per capita

availability of milk in India has grown from 172 gm per person per day in 1972 to 182gm

in 1992 and 203 gm in 1998-99.This is expected to increase to 212gms for 2008.

However a large part of the population cannot afford milk. At this per capita consumption

it is below the world average of 285 gm and even less than 220 gm recommended by the

Nutritional Advisory Committee of the Indian Council of Medical Research.

There are regional disparities in production and consumption also. The per capita

availability in the north is 278 gm, west 174 gm, south 148 gm and in the east only 93 gm

per person per day. This disparity is due to concentration of milk production in some

pockets and high cost of transportation. Also the output of milk in cereal growing areas is

much higher than

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elsewhere which can be attributed to abundant availability of fodder, crop residues, etc

which have a high food value for milky animals.

In India about 46 per cent of the total milk produced is consumed in liquid form

and 47 per cent is converted into traditional products like cottage butter, ghee, paneer,

khoya, curd, malai, etc. Only 7 per cent of the milk goes into the production of western

products like milk powders, processed butter and processed cheese. The remaining 54%

is utilized for conversion to milk products. Among the milk products manufactured by the

organized sector some of the prominent ones are ghee, butter, cheese, ice creams, milk

powders, malted milk food, condensed milk infants’ foods etc. Of these ghee alone

accounts for 85%.

It is estimated that around 20% of the total milk produced in the country is

consumed at producer-household level and remaining is marketed through various

cooperatives, private dairies and vendors. Also of the total produce more than 50% is

procured by cooperatives and other private dairies.

While for cooperatives of the total milk procured 60% is consumed in fluid form and rest

is used for manufacturing processed value added dairy products; for private dairies only

45% is marketed in fluid form and rest is processed into value added dairy products like

ghee, makhan etc.

Still, several consumers in urban areas prefer to buy loose milk from vendors due

to the strong perception that loose milk is fresh. Also, the current level of processing and

packaging capacity limits the availability of packaged milk.

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The preferred dairy animal in India is buffalo unlike the majority of the world

market, which is dominated by cow milk. As high as 98% of milk is produced in rural

India, which caters to 72% of the total population, whereas the urban sector with 28%

population consumes 56% of total milk produced. Even in urban India, as high as 83% of

the consumed milk comes from the unorganized traditional sector.

Presently only 12% of the milk market is represented by packaged and branded

pasteurized milk, valued at about Rs.8, 000 crores. Quality of milk sold by unorganized

sector however is inconsistent and so is the price across the season in local areas. Also

these vendors add water and caustic soda, which makes the milk unhygienic.

Market Size and Growth

Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued

at Rs470bn. The market is currently growing at round 4% pa in volume terms. The milk

surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat,

Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk

products is concentrated in these milk surplus States. The top 6 states viz. Uttar Pradesh,

Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu and Gujarat together account for 58%

of national production. Milk production grew by a mere 1% pa between 1947 and 1970.

Since the early 70's, under Operation Flood, production growth increased significantly

averaging over 5% pa.

About 75% of milk is consumed at the household level which is not a part of

commercial dairy industry. Loose milk has a larger market in India as it is perceived to be

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fresh by most consumers. In reality however, it poses a higher risk of adulteration and

contamination.

The production of milk products, i.e. milk products including infant milk food,

malted food, condensed milk & cheese stood at 3.07 lakh MT in 2008. Production of milk

powder including infant milk-food has risen to 2.25 lakh MT in 2008, whereas that of

malted food is at 65000 MT. Cheese and condensed milk production stands at 5000 and

11000 MT respectively in the same year.

Major Players

The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative

Milk Marketing Federation (GCMMF) is the largest player. All other local dairy

cooperatives have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in

Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, etc). Other

private players include J K Dairy, Heritage Foods, Indiana Dairy, Dairy Specialties, etc.

Amrut Industries, once a leading player in the sector has turned bankrupt and is facing

liquidation.

Packaging Technology

Milk was initially sold door-to-door by the local milkman. When the dairy co-

operatives initially started marketing branded milk, it was sold in glass bottles sealed with

foil. Over the years, several developments in packaging media have taken place. In the

early 80's, plastic pouches replaced the bottles. Plastic pouches made transportation and

storage very convenient, besides reducing costs. Milk packed in plastic pouches/bottles

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have a shelf life of just 1-2 days, that too only if refrigerated. In 1996, Tetra Packs were

introduced in India. Tetra Packs are aseptic laminate packs made of aluminum, paper,

board and plastic. Milk stored in tetra packs

and treated under Ultra High Temperature (UHT) technique can be stored for four

months without refrigeration. Most of the dairy co-operatives in Andhra Pradesh, Tamil

Nadu, Punjab

and Rajasthan sell milk in tetra packs. However tetra packed milk is costlier by Rs5-7

compared to plastic pouches. In 2008-00 Nestle launched its UHT milk. Amul too

relaunched its Amul Taaza brand of UHT milk. The UHT milk market is expected to

grow at a rate of more than 10-12% in coming years.

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Regulatory Framework

The dairy industry was de-licensed in 1991 with a view to encourage private

investment and flow of capital and new technology in the segment. Although de-licensing

attracted a large number of players, concerns on issues like excess capacity, sale of

contaminated/ substandard quality of milk etc induced the Government to promulgate the

MMPO (Milk and Milk Products Order) in 2008. Milk and Milk Products Order

(MMPO) regulates milk and milk products production in the country. The order requires

no permission for units handling less than 10,000 litres of liquid milk per day or milk

solids up to 500 TPA. MMPO prescribes State registration to plants producing between

10,000 to 75,000 litres of milk per day or manufacturing milk products containing

between 500 to 3,750 tones of milk solids per year. Plants producing over 75,000 litres

per day or more than 3,750 tones per year of milk solids have to be registered with the

Central Government. The stringent regulations, government controls and licensing

requirements for new capacities have restricted large Indian and MNC players from

making significant investments in this product category. Most of the private sector

players have restricted themselves to manufacture of value added milk products like baby

food, dairy whiteners, condensed milk etc.

All the milk products except malted foods are covered in the category of

industries for which foreign equity participation up to 51% is automatically allowed. Ice

cream, which was

earlier reserved for manufacturing in the small-scale sector, has now been de-reserved.

As such, no license is required for setting up of large-scale production facilities for

manufacture of ice cream.

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Subsequent to de-canalization, exports of some milk based products are freely

allowed provided these units comply with the compulsory inspection requirements of

concerned agencies like: National Dairy Development Board, Export Inspection Council

etc. Bureau of Indian standards has prescribed the necessary standards for almost all

milk-based products, which are to be adhered to by the industry.

Penetration of milk products

Western table spreads such as butter, margarine and jams are not very popular in

India. All India penetration of butter/ margarine is only 4%. This is also largely

represented by urban areas, where penetration is higher at 9%. In rural areas, butter/

margarine have penetrated in 2.1% of households only. The use of these products in the

large metros is higher, with penetration at 15%.

Penetration of cheese is almost nil in rural areas and negligible in the urban areas. Per

capita consumption even among the cheese-consuming households is a poor 2.4kg pa as

compared to over 20kg in USA. The lower penetration is due to peculiar food habits,

relatively expensive products and also non-availability in many parts of the country.

Butter, margarine and cheese products are mainly manufactured by organized sector.

Similarly, penetration of ghee is highest in medium sized towns at 37.2%

compared to 31.7% in all urban areas and 21.3% in all rural areas. The all India

penetration of ghee is 24.1%. In relative terms, penetration of ghee is significantly higher

in North and West, which are milk surplus regions. North accounts for 57% of ghee

consumption and West for 23%, South & East together account for the balance 20%. A

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large part of ghee is made at home and by small/ cottage industry from milk. The relative

share of branded products in this category is very low at around 1-2%.

Milk powder and condensed milk have not been able to garner any significant

consumer acceptance in India as indicated by a very low 4.7% penetration. The

penetration is higher at

8.1% in urban areas and lower at 3.5% in rural areas. Within urban areas, it is relatively

higher in medium sized towns at 8.5% compared to 7.7% in large metros.

Export Potential

India has the potential to become one of the leading players in milk and milk

product exports. Location advantage: India is located amidst major milk deficit countries

in Asia and Africa. Major importers of milk and milk products are Bangladesh, China,

Hong Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other

gulf countries, all located close to India.

The major export products: - The products of Amul is being exported in the 40

countries of the world . Many of the products are now available in the U.S.A , Gulf

countries and Singapore. Amul products are being exported to the Singapore since last

three decades . undoubtedly , Amul is the preferred taste of Indians in the Gulf countries.

Low Cost of Production :

Milk production is scale insensitive and labor intensive. Due to low labor cost, cost of

production of milk is significantly lower in India.

Concerns in export competitiveness are Quality: Significant investment has to be

made in milk procurement, equipments, chilling and refrigeration facilities. Also, training

has to be imparted to improve the quality to bring it up to international standards.

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Productivity: To have an exportable surplus in the long-term and also to maintain cost

competitiveness, it is imperative to improve productivity of Indian cattle.

There is a vast market for the export of traditional milk products such as ghee,

paneer, shrikhand, rasagulas and other ethnic sweets to the large number of Indians

scattered all over the world.

India's exports of milk products

Description

(Quantity, M T.: Value, Rs.

million)

2009-10 2010-11 2011-12

 

  Quantity Value Quantity Value Quantity Value  

Skimmed milk powder 4,638.62 3,35.32 282.70 19.64 5.00 0.375  

Milk and Milk Food for

babies

8.27 2.019 111.37 4.27 11.00 2.02 

Milk cream 332.23 28.04 1.00 0.084 - -  

Sweetened condensed milk 41.73 2.84 9.22 0.97 60.39 7.22  

Whey 78.46 3.75 11.50 1.01 6.00 0.342  

Ghee/Butter/Butter oil 7,895.08 431.1 299.97 19.2 4,352.08 2,38.95  

Cheese

(a) Fresh 0.10 0.013 - - - -  

(b) Processed 5.67 1.20 2.1 0.375 22.10 2.19  

(c) Other 66.64 8.35 36.78 0.69 24.84 4.55  

TOTAL - 8,72.7 - 52.4 - 2,55.6  

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Indian (traditional) Milk Products

There are a large variety of traditional Indian milk products such as

Makkhan - unsalted butter. Ghee - butter oil prepared by heat clarification, for longer

shelf life. Kheer - a sweet mix of boiled milk, sugar and rice. Basundi - milk and sugar

boiled down till it thickens. Rabri - sweetened cream. Dahi - a type of curd. Lassi - curd

mixed with water and sugar/ salt. Channa/Paneer - milk mixed with lactic acid to

coagulate. Khoa - evaporated milk, used as a base to produce sweet meats. The market

for indigenous based milk food products is difficult to estimate as most of these products

are manufactured at home or in small cottage industries catering to local areas.

Consumers while purchasing dairy products look for freshness, quality, taste and texture,

variety and convenience. Products like Dahi and sweets like Kheer, Basundi, Rabri are

perishable products with a shelf life of less than a day. These products are therefore

manufactured and sold by local milk and sweet shops. There are several such small shops

within the vicinity of residential areas. Consumer loyalty is built by consistent quality,

taste and freshness. There are several sweetmeat shops, which have built a strong brand

franchise, and have several branches located in various parts of a city.

Branding Of Traditional Milk Products

Among the traditional milk products, ghee is the only product, which is currently

marketed, in branded form. main ghee brands are Sagar, Milkman (Britannia), Amul

(GCMMF), Aarey (Mafco Ltd), Vijaya (AP Dairy Development Cooperative Federation),

Verka ( Punjab Dairy Cooperative), Everyday (Nestle) and Farm Fresh (Wockhardt).

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With increasing urbanization and changing consumer preferences, there is

possibility of large scale manufacture of indigenous milk products also. The equipments

in milk manufacturing have versatility and can be adapted for several products. For

instance, equipments used to manufacture yogurt also can be adapted for large scale

production of Indian curd products (dahi and lassi). Significant research work has been

done on dairy equipments under the aegis of NDDB.

Mafco Limited sells Lassi under the Aarey brand and flavored milk under the

Energee franchise (in the Western region, mainly in Mumbai). Britannia has launched

flavored milk in various flavors in tetra packs.

GCMMF has also made a beginning in branding of other traditional milk products

with the launch of packaged Paneer under the Amul brand. It has also created a new

umbrella brand "Amul Mithaee", for a range of ethnic Indian sweets that are proposed to

be launched the first new product Amul Mithaee Gulabjamun has already been launched

in major Indian markets.

Western Milk Products

Western milk products such as butter, cheese, yogurt have gained popularity in the Indian

market only during the last few years. However consumption has been expanding with

increasing urbanization.

Butter

Most Indians prefer to use home made white butter (makkhan) for reasons of taste and

affordability. Most of the branded butter is sold in the towns and cities. The major brands

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are Amul, Vijaya, Sagar, Nandini and Aarey. Amul is the leading national brand while

the other players have greater shares in their local markets. The latest entrant in the butter

market has been Britannia. Britannia has the advantages of a wide distribution reach and

a strong brand recall.

Priced at par with the Amul brand, it is expected to give stiff competition to the existing

players. In 2008-00 the butter production is estimated at 4 lakh MT of this only 45K MT

is in the white form used for table purposes rest all is in the yellow form.

Cheese

The present market for cheese in India is estimated at about 9,000 tonnes and is growing

at the rate of about 15% per annum. Cheese is mainly consumed in the urban areas. The

four metro cities alone account for more than 50% of consumption. Mumbai is the largest

market (accounting for 30% of cheese sold in the country), followed by Delhi (20%).

Calcutta (7%) and Chennai (6%). Mumbai has a larger number of domestic consumers,

compared to Delhi where the bulk institutional segment (mainly hotels) is larger.

Demand for various types of cheese in the Indian market

Type of cheese % of total consumption

Processed 50

Cheese spread 30

Mozzarella 10

Flavored/Spiced 5

Others 5

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The major players are Amul, Britannia, and Dabon International dominating the market.

Other major brands were Vijaya, Verka and Nandini (all brands of various regional dairy

cooperatives) and Vadilal. The heavy advertising and promotions being undertaken by

these new entrants is expected to lead to strong 20% growth in the segment. Amul has

also become more aggressive with launch of new variants such as Mozzarella cheese

(used in Pizza), cheese powder, etc.

The entry of new players and increased marketing activity is expected to expand the

market. All the major players are expanding their capacities

Capacity expansion in Cheese

Company Brands State Capacity

Dynamics Group Manufactures for Britannia Maharashtra 35 tons per day

GCMMF Amul Gujarat 20 tons per day

APDDCF Vijaya Andhra Pradesh 10 tons per day

 

Milk Powder

Milk powder is mainly of 2 types

_ Whole milk powder

_ Skimmed milk powder

Whole milk powder contains fat, as distinguished from skimmed milk powder, which is

produced by removing fat from milk solids. Skimmed milk powder is preferred by diet

conscious consumers. Dairy whiteners contain more fat than skimmed milk powder but

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less compared to whole milk powder. Dairy whiteners are popular milk substitute for

making tea, coffee etc.

The penetration of these products in milk abundant regions is driven by

convenience and non perishable nature (longer shelf life) of the product.

Dairy sector of advanced nations export milk products with a subsidy of $ 1000 per tones

with a level of subsidy more than 60 % of the price of milk powder produced in India,

this has led to large scale imports of milk powder both in whole and skimmed form. To

protect the domestic sector from these subsidized imports the central government has

recently increased the basic import duty on all imports of milk powder more than 10000

MT to 60% from 15%. For imports less than 10000 MT the basic customs duty has been

left unchanged at 15%.

In 2008 India is estimated to have imported about 18,000 tonnes of milk powder against a

total estimated production of 2.40 Lakh MTs. In 2007-08 India is expected to export

10000 MT of skimmed milk powder due to rise in international prices to $2300 per MT

from last year's levels of $1400 per MT. These expectations are based on the strong

demand from Russia, East Asia and Latin America, and also on tightening of supply in

EU, which accounts for 75% of the annual global Skimmed Milk Powder exports.

Milk Collection Cycle

The success of each and every dairy industry is the getting the milk from the

farmers and making that milk in use as soon as possible before that milk get spoiled

because the milk is the perishable product. For the smooth running the business of dairy

industry the industry must concentrate on the milk collection cycle. Amul dairy is very

conscious about the milk collection cycle because the base of the success of the Amul is

milk collection cycle.

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Production capacity of Amul

Butter 50 to 60 Tones

Powder plant 70 tones

Flavour milk 40000 bottles

Major Players

Milk Powder/Dairy Whiteners: Major skimmed milk brands are Sagar (GCMMF) and

Nandini (Karnataka Milk Federation), Amul Full Cream milk powder is a whole milk

powder brand.

Leading brands in the dairy whitener segment are Nestlé’s Everyday, GCMMF's Amulya,

Dalmia Industry's Sapan, Kwality Dairy India's cream country, Wockhardt's Farm Fresh

and Britannia's Milkman Dairy Whitener.

Future Prospects

India’ s dairy sector is expected to triple its production in the next 10 years in view of

expanding potential for export to Europe and the West. Moreover with WTO regulations

expected to come into force in coming years all the developed countries which are among

big exporters today would have to withdraw the support and subsidy to their domestic

milk products sector. Also India today is the lowest cost producer of per liter of milk in

the world, at 27 cents, compared with the U.S' 63 cents, and Japan= = s $2.8 dollars. Also

to take advantage of this lowest cost of milk production and increasing production in the

country multinational companies are planning to expand their activities here. Some of

these milk producers have already obtained quality standard certificates from the

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authorities. This will help them in marketing their products in foreign countries in

processed form.

The urban market for milk products is expected to grow at an accelerated pace of around

33% per annum to around Rs.43,500 crores by year 2008. This growth is going to come

from the greater emphasis on the processed foods sector and also by increase in the

conversion of milk into milk products. By 2008, the value of Indian dairy produce is

expected to be Rs 10, 00,000 million. Presently the market is valued at around Rs7,

00,000mn.

COMPANY PROFILE OF AMUL

The Amul – Meaning

AMUL means “ priceless “ in Sanskrit . A quality control expert in Anand suggested the brand

name “AMUL” from the Sanskrit word “Amoolya” variants, all meaning “priceless” are found in

several Indian languages. Amul products have been used in millions of home since 1946 .

Amul butter

Amul milk powder

Amul ghee

Amulspray

Amul cheese

Amul chocolates

Amul Ice- cream

Today Amul is a symbol of many things . of high – quality products sold at reasonable prices . F

triumph of indigenous technology . Of the marketing savvy of a farmers organization . And

proven model for dairy development .

MOTTO, VISION, AND QUALITY POLICY

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MOTTO

The main motto of AMUL is to help farmers. Farmers were the foundation stone of

AMUL. The system works only for farmers and for consumers, not for profit. The main

of AMUL is to provide quality products to the consumers at minimum cost. The goal of

AMUL is to provide maximum profit in terms of money to the farmers.

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VISION

Vision of AMUL is to provide and vanish the problems of farmers (milk producers). The

AMUL apparition was to run the organization with co-operative of four main parties, the

farmers, the representatives, the marketers, and the consumers.

QUALITY POLICY

We the motivated and devoted work force of AMUL are committed to produce whole

some and safe foods of excellent quality to remain market leaders through deployment of

quality management system, state of art technology innovation and eco- friendly

delightment of customer and betterment of milk producer

HISTORY

In early 1940’s a farmer in Kaira district, as elsewhere in India, derived his income

almost entirely from seasonal crops. The income from milk was paltry and could not be

depended upon. The main buyers were milk traders of Polson Ltd.-a privately owned

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company that enjoyed monopoly for supply of milk from Kaira to the Government Milk

Scheme Bombay. The system leads to exploitation of poor and illiterate farmers by the

private traders.

However, when the exploitation became intolerable, the farmers were frustrated. They

collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the

freedom movement. Sardar Patel advised the farmers to sell the milk on their own by

establishing a cooperative union, instated of supplying milk to private traders. Sardar

Patel sent the farmer to Shri Morarji Dasai in order to gain his Co-operation and help.

Shri Dasai held a meeting at ‘Samrkha’ village near Anand, on January 4, 1946. He

advised the farmers to from a society for collection of the milk.These village societies

would collect the milk themselves and also decided prices for that which would be

profitable for them. The district union was also from to collect the milk from such village

cooperative societies and to sell them. It was also resolved that the government should

asked to buy milk from the union.

However, the government did not seem to help farmer by any means. It gave the negative

response by turning down the demand for the milk. To respond to this action of

government, farmer of Kaira district went on a milk strike. For 15 days not a single drop

of milk was sold to the traders. As a result the Bombay milk scheme was severely

affected. The milk commissioner of Bombay then visited Anand to assess the situation.

Finely he decided to fulfill the farmers demand.

Thus their cooperative unions were forced at village and district level to collect and sell

milk on a cooperative basis, without the intervention of government. Mr. Verghese

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Kurien had main interest in establishing union who was supported by Shri Tribhuvandas

Patel who convinced farmers in forming the cooperative unions at the village level. ‘The

Kaira District Co-operative Milk Producers’ Union’ was thus established in Anand and

was registered formally under section 10 of Bombay Act VII of 1925 on December 14,

1946. Since then farmers are selling all the milk in Anand through cooperative union. In

1955 it was commonly decided the sell milk under the brand name ‘Amul’

At the initial stage only 250 liters of milk was collected every day. But with the

growing awareness of the benefits of the co-cooperativeness the collection of milk

increased. Today Amul collect 50, 00,000 liters of milk every day. As the milk is

perishable commodity it became difficult to preserve milk for a longer period. Besides

when the milk was to be collected from the far places there was a fear of spoiling of milk.

To over come this problem the union thought to develop the chilling unit at various

junctions, which would collect the milk and could chill so as preserve it a for a longer

period. Thus, today Amul has more than 168 chilling centers in various villages. Milk is

collected from almost 1097 societies.      

With the financial help from UNICEF, assistance from the government of New

Zealand under the Colombo plan, of Rs. 50 million for factory to manufactory milk

powder and butter. Dr. Rajendara Prasad, the president of India laid the foundation on

November 50, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it

open at Amul dairy on November 20, 1955.

A plant to manufacture balanced cattle feed was formally commissioned on

October 31, 1964 by Shri Lalbahadur Shastri, the Prime Minister of India. At the request

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of the government of India, a new dairy with a capacity to manufacture 40 tons of milk

powder and 20 tons of butter a day was completed in 1963. This was meant to meet the

requirement of India’s defense forces. The dairy was declared open by ShriMorarji Desai

in April, 1965. in 1974, the Kaira Union setup a plant to manufacture high-protein

weaning food, chocolate and malted food at Mogar, about 8 km south of Anand.

 In September, 1981, the second cattle feed plant at ‘Kanjari’ were started. The

succesion of the co-generation project on September 11, 1985, marked a milestone on the

energy front when two gas turbine generators of 1.5 MW each based on natural gas, were

commissioned. On October 31, 1992, Dr. V. Kurien chairman, National Dairy

Development Board, laid the foundation of Kaira Union’s third dairy with a processing

capacity of 6.5 lakh liters of milk a day. Work on the third dairy and cheese plant at

‘Khatraj’ with capacity for 20 Metric Ton of cheese per day, began in February, 1994.

Also in 1994, Kaira Union put up bread spread plant at ‘Mogar’ with the assistance from

National Dairy Development Board.

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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Members: 13 district cooperative milk producers'

Union

No. of Producer Members: 2.6 million

No. of Village Societies: 12,792

Total Milk handling capacity: 10.16 million litres per day

Milk collection 2.38 billion litres

Milk collection 6.5 million litres

Milk Drying Capacity: 594 Mts. per day

Cattle feed manufacturing Capacity: 2640 Mts per day

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ORGANISATION STRUCTURE OF AMUL

Board of Director

CHAIRMAN

MANAGING CHAIRMAN

GENERAL MANAGER

ASSISTANT GENERAL MANAGER

MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

SENIOR EXECUTIVE

SENIOR OFFICER

SENIOR ASSITANT

WORKERS

Grade ( Ato E)

.

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Sales Turnover

Sales Turnover Rs (million) US $ (in million)

1996-97 11140 355

1997-98 13790 400

1998-99 15540 450

1999-00 18840 455

2000-01 22192 493

2001-02 22185 493

2002-03 22588 500

2003-04 23365 500

2004-05 27457 575

2005-06 28941 616

2006-07 29225 672

2007-08 37736 850

2008-09

2009-10

2010-11

2011-12

42778

52254

67113

80053

1050

1325

1505

1700

Milk Collection Cycle

28

The success of each and every dairy industry is the getting the milk from the

farmers and making that milk in use as soon as possible before that milk get spoiled

because the milk is the perishable product. For the smooth running the business of dairy

industry the industry must concentrate on the milk collection cycle. Amul dairy is very

conscious about the milk collection cycle because the base of the success of the Amul is

milk collection cycle.

Production capacity of Amul

Butter 50 to 60 Tones

Powder plant 70 tones

Powder plant 60 tones

Flavour milk 40000 bottles

29

Butter section

The utterly Butterly Delicious butter of the Amul is one of the most popular product of

Amul dairy along with the famous butter girl . The butter section is located in Amul -3

which manufactures Table Butter , white butter and renduced salt butter . The section is

completely computer controlled and is equipped with most modern imported

equipments .Butter section very important as it handles fat, which is the costliest

constituent . The cream obtained from process section is fully utilized for butter making .

Amul white and table Butter is exported to USA and various Middle Eastern countries .

OPERATION

The cream for manufacturing Butter is receiving from Amul-3 process section while

standardization of milk . In Amul -3 the milk fat will be separated at above 60 Celsius ,

the centrifugal separators inline with Milk pasteurizer separate this as cream . The cream

thus separated is pasteurized and then pumped to the cream buffer tanks and to cream silo

.After ageing at 8 Celsius for 24 hrs , cream is pumped to cream chilling unit in the

butter section . there the temperature of cream is adjusted to the required churning

temperature of continuous Butter Making Machine

30

Packing materials used :

Delocalize market

Double laminated is used for export

Tin – used for 400g Army pack

Card board box- used for tertiary packing

3ply for 9.1 g weight package

5ply for normal & export

Powder plant

F-35 plant is situated in Amul -2 near to the railway siding . The plant is a single stage

drying plant having a capacity of 35 TDP. The plant is not in regular use and mainly used

for the manufacturing of cheese whey powder .

F-35 CONDENSING PLANT DETAILS

Make : SSP ,Faridabad

Type : Falling film vertical tube type

No of Pre heater : 5

No of calendria : 7

No of vapor separators : 5

31

OPERATION DETAIL

PRODUCT USE AND CHARACTERISTICS

MILKOne of the most versatile food consumed by us. All children start their with mother’s

milk and continue to use it in one other throughout their life. It is the secretion from the

mammary glands of a lactating mammal. The white fluid, know as milk, is made up of

milk fat and other milk solids.

AMUL ICE CREAM

Amul ice cream is made up from fresh milk.

Ice cream are rich in protein, calcium, dairy cream and vitamins.

Ice cream are a complete food, easy to digest and full of energy.

MANUFACTURING PROCESS FOR ICE CREAM

Amul ice cream is made up from milk, milk products, sugar, stabilizers and emulsifiers.

Composition

Milk Fat 13.5% to 14.5%

Total Solids 40% to 41%

Sugar 15% Approx.

Acidity 0.17% to 0.19%

Protein 3.9% to 4.1%

32

Food Energy Value

Calories per 100 ml -196.7 kcal

Flavors

VANILA , Strawberry, Pineapple, Orange, Rose, Mango, Chocolate, Honey-Dew-Melon, Tutee Fruity,

Litchi, Kesar Pista, Kaju Draksh, Butterscotch, Chocó chips, Rajbhog and Cashew Break.

Packaging

50 ml cup, 100 ml cup, 500 ml pack,1 litre pack, 4 litre pack, Chocobar, Ice candies, Cones and Kulfies .

MANUFACTURING PROCESS FOR MILK

MILK PROCUREMENT

Total milk procurement by our Member Unions during the year 2006-07 averaged 67.25

lakh kilograms (6.7 million kg) per day, representing a growth of 4.5 per cent over 64.38

lakh kilograms (6.4 million kg) per day achieved during 2005-06. The highest

procurement as usual was recorded during January 2007 at 84.09 lakh kilograms (8.4

million kg) per day. This increase in milk procurement is very impressive, keeping in

mind the massive loss suffered by our farmers due to

floods during the monsoon season, specially in Surat district.

33

MILK PROCESSING

1 Homogenization: - Milk must then be homogenized. Without homogenization, the

milk fat would separate from the milk and rise to the top. Milk fat is what gives milk its

rich and creamy taste. In this process Milk is transferred to a piece of equipment called a

homogenizer. In this machine the milk fat is forced, under high pressure through tiny

holes.

2 . Pasteurization:- Pasteurization is the process that purifies milk and helps it stay

fresher, longer. Milk is pasteurized by heating it to 72°C for 16 seconds then quickly

cooling it to 4°C. Pasteurization is named after Louis Pasteur, the famous scientist.

34

3 .Adding Vitamins; - Before homogenization, vitamin D is added to all milk. Vitamin

D combined with the calcium that naturally exists in milk help gives us strong bones and

teeth. Dairies also add Vitamin A to skim, 1% and 2% milk. Vitamin A is good for our

eyesight.

4.Packaging Milk: - Milk is now ready to be packaged. Milk is pumped through

automatic filling machines direct into bags, cartons and jugs. The machines are carefully

sanitized and packages are filled and sealed without human hands. During the entire time

that milk is at the dairy, it is kept at 1° - 2°C. This prevents the development of extra

bacteria and keeps the milk it’s freshest.

35

5.Storing:- Milk is delivered to grocery stores, convenience stores and restaurants in

refrigerated trucks that keep milk cooled to 1° - 4°C. The stores take their milk and

immediately place it in their refrigerated storage area. Because fresh milk is so important

to our diets, dairies, and our health.

36

Supply chain management of AMUL

SUPPLIERS

GCMMF’S SUPPLY CHAIN

Processing :

After the union received the milk, it was tested and if it was found to be of good quality,

it was sent for processing. If the milk was found to have high acidity, it was used to make

buttermilk. Raw milk was sent through a filter and clarifier and was pasteurized. For

pasteurization, milk was treated at high temperatures for a specified.

This helped in destroying the pathogens and in maintaining the quality. After

pasteurization, the milk was sent through a separation machine. Here the cream was

separated and skimmed milk was obtained. According to the demand, the unions packed

the milk after it was pasteurized and sent for distribution. The cream was marketed as

Amul Fresh cream .

37

Distribution

GCMMF coordinated with various unions to get a regular supply of milk and dairy

products. The processed milk and dairy products were procured from district dairy unions

and distributed through third party distributors. To ensure quality and timely deliveries,

GCMMF and the district unions had several mechanisms in place. The VCS constantly

monitored the deliveries of the milk collected and ensured that the milk was picked up on

time. The unions monitored the supplies of milk and the distribution of finished products.

WARE HOUSING: Amul products are available in over 500,000 retail outlets across

India through its network of over 3,500 distributors. There are 47 depots with dry and

cold warehouses to buffer inventory of the entire range of products. GCMMF transacts on

an advance demand draft basis from its wholesale dealers instead of the cheque system

adopted by other major FMCG companies. This practice is consistent with GCMMF's

philosophy of maintaining cash transactions throughout the supply chain and it also

minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care

of the transit time from the branch warehouse to their premises. This just-in-time

inventory strategy improves dealers' return on investment (ROI). All GCMMF branches

engage in route scheduling and have dedicated vehicle operation .

38

MILK PROCESSING BLOCK

39

SUPPLY CHAIN EXPLANATION WITH DIAGRAME

DEFINITION OF VALUE CHAIN

As per the above diagram there are the first components is raw material:

In our company the raw materials are milk, powder for ice creams manufacturing,

different types of flavors for ice creams, packaging material, sugar etc. required by the

company for manufacturing. In this step GCMMF play a very important role it procures

milk from villages and for this it develops three types of system and that is societies at

villge level, district level and state level.

40

Second component is suppliers are the farmers and other raw material for manufacturing

the ice creams are provided by MAHAN PROTEINS LTD., IDEAL ICE CREAMS and

BHARAT ESSENCE.

This component is manufacturing process which is describe above. In milk process there

are mainly five steps are required and i.e. homogenization, pasteurization, adding

vitamins, packaging, storing. In this process there are also requirement of warehouse for

storing the product which already made and also for the raw material.

The next step is the distribution channel in which GCMMF plays very important role in

that. It handle all the marketing for AMUL products. GCMMF's products were marketed

through 50 sales offices located across India to 4,000 stockists. These stockists supplied

the products to more than 500,000 retail outlets.

41

The next step is the customers in this category there are restaurants includes. Also the

retail shops and whole sellers are included.

The last step is the consumer in which the actual hose hold are included in this category.

Our Product

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. 42.78

billion in 2007-08). Today Amul is a symbol of many things. Of high-quality products

sold at reasonable prices. Of the genesis of a vast co-operative network. Of the triumph of

indigenous technology. Of the marketing savvy of a farmers' organization. And of a

proven model for dairy development.

42

Check out this vast and ever-growing range of 'tasteful' Amul delectable!

Bread Spreads

Amul Butter

Utterly Butterly

Delicious

Amul Lite

Low fat, low

Cholesterol Bread

Spread

Delicious Table

Margarine

The Delicious way to

eat healthy

Milk Drinks

Amul Kool Amul Kool Cafe

Kool Koko

A delight to Chocolate

Lovers. Delicious

Chocolate taste

Nutramul Energy Drink

A drink for Kids - provides

energy to suit the needs of

growing Kids

43

Amul Kool Chocolate

Milk

Amul Kool Flavoured

Bottled Milk

Amul Kool Flavoured

Tetra Pack

Amul Masti Spiced

Buttermilk

Amul introduces the Best

Thirst Quenching Drink

Amul Kool Thandai

Powder Milk

Amul Spray Infant

Milk Food

Still, Mother's Milk is

Best for your baby

Amul Instant Full

Cream Milk Powder

A dairy in your home

44

Sagar Skimmed Milk

Powder

Which is especially

useful for diet

preparations or for use

by people on low

calorie and high

protein diet.

Sagar Tea Coffee

Whitener

Amulya Dairy

Whitener

The Richest, Purest

Dairy Whitener

   

Fresh Milk

Amul Fresh Milk

This is the most hygienic

milk available in the

market. Pasteurised in

state-of-the-art processing

plants and pouch-packed

Amul Gold Milk

45

for convenience.

Amul Taaza Double

Toned Milk

Amul Lite Slim and Trim

Milk

Amul Fresh Cream Amul Shakti Toned Milk

Amul Calci+

Cheese

Amul Pasteurised

Processed Cheese

100% Vegetarian Cheese

made from microbial

Amul Cheese Spreads

Tasty Cheese Spreads in 3

great flavours.

46

rennet

Amul Emmental Cheese

The Great Swiss Cheese

from Amul, has a sweet-

dry flavour and hazelnut

aroma

Amul Pizza Mozzarella

Cheese

Pizza cheese...makes great

tasting pizzas!

Gouda Cheese

   

For Cooking

Amul / Sagar Pure Ghee

Made from fresh cream.

Has typical rich aroma and

granular texture. An ethnic

product made by dairies

with decades of

experience.

Cooking Butter

47

Amul Malai Paneer

Ready to cook paneer to

make your favourite

recipes!

Utterly Delicious Pizza

Mithai Mate

Sweetened Condensed

Milk –

Free flowing and smooth

texture. White to creamy

color with a pleasant taste.

Masti Dahi

48

Desserts

Amul Ice Creams

Premium Ice Cream made

in various varieties and

flavours with dry fruits

and nuts.

Amul Shrikhand----

A delicious treats,

anytime.

Amul Mithaee Gulab

Jamuns

Pure Khoya Gulab

Jamums...best served

piping hot.

Amul Chocolates

The perfect gift for

someone you love.

Amul Lassee Amul Basundi

Health Drink

49

Nutramul

Malted Milk Food

made from malt extract

has the highest protein

content among all the

brown beverage

powders sold in India.

Amul Shakti Health

Food Drink

Available in Kesar-

Almond and Chocolate

flavours.

50

PROFILE OF PARAG DAIRY

Parag Dairy – Delhi was set up in 1974 under the Operation Flood Programme. It is now

a wholly owned company of the National Dairy Development Board (NDDB).

Parag Dairy markets & sells dairy products under the Parag Dairy brand (like Liquid

Milk, Dahi, Ice creams, Cheese and Butter), Dhara range of edible oils and the Safal

range of fresh fruits & vegetables, frozen vegetables and fruit juices at a national level

through its sales and distribution networks for marketing food items.

Parag Dairy sources significant part of its requirement of liquid milk from dairy

cooperatives. Similarly, Parag Dairy sources fruits and vegetables from farmers / growers

associations. Parag Dairy also contributes to the cause of oilseeds grower cooperatives

that manufacture/ pack the Dhara range of edible oils by undertaking to nationally market

all Dhara products. It is Parag Dairy’s constant endeavor to

(a)  Ensure that milk producers and farmers regularly and continually receive market

prices by offering quality milk, milk products and other food products to consumers at

competitive prices and;

(b)  Uphold institutional structures that empower milk producers and farmers through

processes that are equitable.

51

At Parag Dairy, processing of milk is controlled by process automation whereby

state-of-the-art microprocessor technology is adopted to integrate and completely

automate all functions of the milk processing areas to ensure high product quality/

reliability and safety. Parag Dairy is an IS/ ISO-9002, IS-15000 HACCP and IS-14001

EMS certified organization. Moreover, its

Quality Assurance Laboratory is certified by National Accreditation Board for Testing

and Calibration Laboratory (NABL)-Department of Science and Technology,

Government of India.

Parag Dairy markets approximately 2.8 million liters of milk daily in the markets

of Delhi, Mumbai, Saurashtra and Hyderabad. Parag Dairy Milk has a market share of

66% in the branded sector in Delhi where it sells 2.3 million liters of milk daily and

undertakes its marketing operations through around 14,000 retail outlets and 845

exclusive outlets of Parag Dairy.

The company’s derives significant competitive advantage from its unique

distribution network of bulk vending booths, retail outlets and mobile units. Parag Dairy

ice creams launched in the year 1995 have shown continuous growth over the years and

today boasts of approximately 62% market share in Delhi and NCR. Parag Dairy also

manufactures and markets a wide range of dairy products that include Butter, Dahi, Ghee,

Cheese, UHT Milk, Lassi & Flavored Milk and most of these products are available

across the country.

The company markets an array of fresh and frozen fruit and vegetable products

under the brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops

and more than 20,000 retail outlets in various parts of the country. Fresh produce from

52

the producers is handled at the Company’s modern distribution facility in Delhi with an

annual capacity of 200,000 MT. An IQF facility with capacity of around 75 MT per day

is also operational in Delhi. A state-of-the-art fruit processing plant of fruit handling

capacity of 120 MT per day, a 100 percent EOU, setup in 1996 at Mumbai supplies

quality products in the international market.

53

With increasing demand another state-of-the-art fruit processing plant has been

set up at Bangalore with fruit handling capacity of around 250 MT per day. Parag Dairy

has also been marketing the Dhara range of edible oils for the last few years. Today it is a

leading brand of edible oils and is available across the country in over 2, 00,000 outlets.

The brand is currently available in the following variants: Refined Vegetable Oil, Refined

Soybean Oil, Refined Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil

and Filtered Groundnut Oil. Parag Dairy has also launched extra virgin Olive Oil under

the Daroliva brand.

Parag Dairy has over the last 3 decades, harnessed the power of farmer

cooperatives to deliver a range of delicious products and bring a smile on your face. In

times to come, Parag Dairy shall strive to remain one of India’s finest food companies.

List of Products Marketed:

Bread spreads:

Parag Butter

Cheese Range:

Parag Processed Cheese

Parag Pizza Cheese

Parag Paneer

UHT Milk Range:

Parag Milk

54

Parag Fresh Cream

Pure Ghee:

Parag Pure Ghee

Infant Milk Range:

Parag spray Milk Food

Milk Powders:

Paragya Dairy Whitener

Sagar Skimmed Milk Powder

Fresh Milk:

Parag Taaza Toned Milk

Parag Cow Milk

55

Consumer Perception towards Amul & Parag Dairy Products

Export Potential

India has the potential to become one of the leading players in milk and milk product

exports. Location advantage: India is located amidst major milk deficit countries in Asia

and Africa. Major importers of milk and milk products are Bangladesh, China, Hong

Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf

countries, all located close to India.

Low Cost of Production : Milk production is scale insensitive and labour intensive. Due

to low labour cost, cost of production of milk is significantly lower in India.

Concerns in export competitiveness are Quality: Significant investment has to be made

in milk procurement, equipments, chilling and refrigeration facilities. Also, training has

to be imparted to improve the quality to bring it up to international standards.

Productivity: To have an exportable surplus in the long-term and also to maintain cost

competitiveness, it is imperative to improve productivity of Indian cattle.

There is a vast market for the export of traditional milk products such as ghee, paneer,

shrikhand, rasgolas and other ethnic sweets to the large number of Indians scattered all

over the world

56

RESEARCH METHODOLOGY

Methodology for a study like this is the most important part .The method of study

operate by me is totally is to increase $ to gather the more information regarding this

project.

The major emphasis in such studies is on the discovery of the ideas fruitful

relevant information. As such the research design appropriate for such studies must

be flexible enough to provide opportunity for considering different aspect of a

problem under study.

I collected the information regarding this project through –

I. PRIMARY DATA

II. SECONDARY DATA

Primary data is collected by the customers and retailers.

Secondary data is collected by various newspapers and magazines also staff.

Since our research is Exploratory type, so research design is also Exploratory

57

Sample design:

Sampling is a process of obtaining information about an entire population by

examining only a part of it.

As depicted below, I have taken 25 retailers and 60 customers as my sample size

Sample size:

RETAILER : 25

CUSTOMER: 60

Analytical tools: This study is based on collecting data by using well-connected

questionnaire for consumer from various demographic segments and also data is

collected using secondary sources. After collecting data it is arranged in the form of

tables from analysis and interpretation. Graphs and percentage analysis are the main tools

used for the purpose of interpretation.

Areas where I made survey

Pallav Puram.

Mangal pandey nagar.

58

ANALYSIS AND INTERPRETATION OF DATA

I. Which company's dairy product you use?

Parag, 15%

Amul, 55%

Other, 30%

Interpretation:

55 percent consumers use Amul & 30 per cent used others and last 15 percent

consumer used Parag dairy products.

59

II. Which of the product mostly you go for?

32%

20%

48%

28%25%

47%

38%

12%

50%

36%

22%

40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Ghee Milk Butter Cheese

Amul

Parag

Others

Interpretation:

Amul Ghee used consumer 32%, Parag Ghee used 20% and others 48%. Milk

used by consumer 28% Amul, 25% Parag and others 47%. Butter used by consumer 38%

Amul, 12% Parag and 40% others.

60

III. Are you satisfied with your product?

Yes, 80%

No, 20%

Interpretation:

80% Consumer satisfied with their products and 20 % consumer not satisfied their

products.

61

IV. Why are you inclined to your product?

60%

40%

68%

32%

70%

30%

80%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Quality Brand Price Taste

Amul

Parag

Interpretation:

Amul Quality inclined to products by consumer 60%, Parag satisfied 40%. Brand

preferred by consumer e.g. 68% Amul and 32% Parag. Price satisfaction with consumer

70% Amul and 30% Parag.

62

V. Do you like any change in product?

Interpretation:

All consumers satisfied with their product and some consumer change product

Taste by consumer Amul 80% and no20% and Parag with satisfied 45% and not satisfied

45%. Price by consumer Amul 30% and no70% and Parag with satisfied 40% and not

satisfied 60%. Packing by consumer Amul 25% and no75% and Parag with satisfied 75%

and not satisfied 25%. Quality wise Amul 15% and no 85% and Parag with satisfied 60%

and not satisfied 40%.

63

20%

80%

55%

45%

30%

70%

40%

60%

25%

75%75%

25%

15%

85%

60%

40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Taste Price Packing Style Quality

Amul Yes

Amul No

Parag Yes

Parag No

RETAILER ANALYSIS

I. In dairy products, which company product demand is higher?

Parag, 20%

Amul, 50%

Other, 30%

Interpretation:

50per cent consumers demand for Amul dairy products & 30 per cent consumer

preferred others branded products and last 20 percent consumer preferred Parag dairy

products.

64

II. Reason……………………………………………

60%

40%

68%

32%

70%30%

80%20%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Price

Taste

Brand

Packing style

Parag

Amul

Interpretation:

Amul dairy products Packing Style wise by consumer 80%, Parag preferred 20%.

Brand preferred by consumer e.g. 70% Amul and 30% Parag. Taste preferred by

consumer 68% Amul and 32% Parag. Price wise by consumer 60% Amul and 40% Parag.

65

III. Which product of Amul is preferred by customers?

32%

20%

48%

28%

25%

47%

38%

12%

50%

36%

22%

40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Ghee Milk Butter Cheese

Others

Parag

Amul

Interpretation:

All consumers Preferred with their product and some consumer change product

Taste by consumer Amul 80% and no20% and Parag with Preferred 45% and not

Preferred 45%. Price by consumer Amul 30% and no70% and Parag with Preferred 40%

and not Preferred 60%. Packing by consumer Amul 25% and no75% and Parag with

Preferred 75% and not Preferred 25%. Quality wise Amul 15% and no 85% and Parag

with Preferred 60% and not Preferred 40%.

66

LIMITATIONS OF THE STUDY

This survey although carried out with fullest possible efforts and devotion, the

limitation of the time, resources available and limited area chose may lead to limited

representation of the universe. The major limitations from which the study suffers are as

follows.

Time Constraint:-

Time factor has been a very big limitation in the research/survey like this. The

retailers have limited time so they sometimes refuse to answer the questionnaire, also me

as a surveyor has less time to conduct the survey. So the size of the sample was restricted

to Meerut city.

Biasness in Information:-

It was felt that retailers did not come up with true responses, in several cases the retailers

answered the questions with the help of other members and it was mostly in case of less

educated persons.

Financial Constraint:-

The financial aspect, which includes the traveling cost, cost of administrating

questionnaire and collection of data through other resources was also costly.

67

Constraint regarding the use of technique:-

The deeper statistical techniques such as analysis using variance, multiple

regressions etc., could not be adopted due to the constraint of time and efforts. So, simple

statistical techniques were used to analyze the data

RECOMMENDATIONS1. Company should have feed back from market and consumer about the Dairy

based Products.

2. The more Flavors of Amul & Parag Dairy Products should become in the Market.

3. The company provided some small schemes for retailer also.

4. The company gives some gifts for customer also.

5. The company should associate itself with some games or tournaments like

football, cricket and so on.

6. Company should provide sponsored seminar market intelligence- Company

should maintain the healthy relationship with market distribution channel i.e.

whole seller, distributor, retailers which will boost the brand image.

7. Company should check the market real position help the trainees and other survey

organizations.

8. Company should launch its website and use new advertising channels; i.e.

♦ Trailer in cinema halls

♦ Hoardings

♦ Spencer any education scholarship or games.

68

69

CONCLUSION

I have studied and analyzed the Dairy based food Product Market of Amul &

Parag Dairy Products at Meerut on different aspects of the markets, outlets, distribution

& consumers. The survey was conducted in various areas of Meerut city with great

enthusiasm. This project report Concludes that Amul & Parag Dairy are easily available

in various parts of Meerut. The Parag distribution channel of the Amul is much strong the

most important thing, which I feel to improve is “the availability to retailers &

consumers”.

The retailers & consumers both promotes either Amul or Parag Dairy of it’s brands

for could be with regard to order processing, warehousing, inventory management &

transportation; besides that shop covering, exit from the market by the salesmen

glow shine board, schemes, incentives, prizes, gifts, discount, returning of defective

goods, proper supply should be improved.

My job was to make marketing managers aware of all the problems so that a

proper course of action is required to be undertaken.

70

BIBLIOGRAPHY

Market Research - Luck and Rubin

Research Methodology - C.R. Kothari

Product Management - Ramanuj Majumdar

Marketing Management - R.L. Vashney & S.L. Gupta

www.google.com

www.amul.com

www.Paragdairy.com

71

ANNEXURE

72

QUESTIONNAIRE

CUSTOMER: ADDRESS:

NAME:

I. Which company's dairy product you use

a) Parag b) Amul

c) Others

II. Which of the product mostly you go for?

a) Ghee b) milk

c) Butter d) cheese

III. Are you satisfied with your product?

a) Yes b) No

REASON…

IV. Why are you inclined to your product?

a) Quality b) brand

c) Price d) taste

73

V. Do you like any change in product

a) Yes b) no

VI. IN WHICH PARAMETER: ……………………………

a) Taste b) price

c) Packing style d) quality

VII. In dairy products, which company product demand is higher?

a) Amul b) Parag dairy c) others

VIII. Reason……………………………………………

a) Price b) taste

c) Brand d) packing style

IX. Which product of Amul is preferred by customers?

a) Ghee b) milk

c) Cheese d) butter

e) Any other

REASON…

a) Price b) taste

c) Quality d) packing style

X. Which product of Parag dairy is preferred by customers?

74

a) Ghee b) milk

c) Cheese d) butter

e) Any other

XI. Which product of amul is preferred least by customers?

a) Ghee b) milk

c) Cheese d) butter

e) Any other

XII. Which of Parag dairy is preferred least by customer?

a) Ghee b) milk

c) Cheese d) butter

e) Any other

XIII. Rank the preferences of consumers for Amul $ Parag dairy.

Amul Parag dairy Others

Ghee

Cheese

Dahi

Butter

Milk

75

Others

COMPARATIVE STUDY OF AMUL AND PARAG DAIRY PRODUCTS

Consumer Preferences Parag Dairy Amul

Ghee Milk Butter Cheese Ghee Milk Butter Chees

e

1. Price High High High High Low Low Low Low

2. Quality High High High High Good Good Good Good

3. Taste Better Better Better Better Good Good Good Good

4. Packing Style Better Better Better Better Best Best Best Best

76