Amul Final Project Report

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Transcript of Amul Final Project Report



This project was undertaken with the objective of PROMOSATIONAL STRATEGY OF AMUL INDIA Ltd. AND ITS EFFECT ON CUSTOMER SATISAFACTION. It also looked into the different factor promotional activity to the product in the retail outlets. The study was conducted at Amul India Ltd, Gondia district. The retailers preference was studied through using questionnaire. A sample size of 60 respondents was taken for the study, whose responses were studied and interpreted .The sampling design was used convenience sampling. This topic provides me the detailed practical knowledge and its applications of marketing strategy. Finally the whole study of the research work, the company needs the effective advertisement of the product in the local channel and print media for awareness of Amul product.

Introduction to the Subject:


Our world today is characterized by the promotion. Every day when we open the newspaper or see view on T.V. channels we are bombarded with the advertisements. Just look at the prized sponsored by several firms at the end of well known television programmed like Airtel desh ki awaj, Dus ka Dum, Indian Idol on Sony, etc.


Channels it isnt the prized on the television to attract the customers it may have discount coupons, gifts and several similar incentives program creatively designed by marketer that draws the customers brain in the organization. Promotional activity is one of the most loosely used terms in marketing but in beverages companies it use separate. Sales promotion consist short term incentives to encourage purchase and sales or services The project delves into the workings from the distribution aspect of an FMCG organization in detail. AMUL, being an FMCG company, attaches a lot of significance to the distribution aspect of its business. The distribution channel of AMUL holds a lot of potential in affecting the demand or sales of AMUL products through delivery on time, delivery of variety of products, the retailer-friendliness of the policies being set by the distributors and equitable distribution of products to all the retail outlets in a particular region, to name a few. Addition to this we carried out sales promotion activity through discount coupons. Sales promotion consists of diverse collection of incentive tools, most shortterm designed to stimulate and/or greater purchase of a particular product by consumers or the trade. Whereas advertise offers a reason to buy, sales promotion offers incentive to buy. Sales promotion includes tools for consumer promotion (for example samples, coupons, prizes, cash refund, warranties, demonstrations, contest); trade promotion (for example buying allowance, free goods, merchandise allowances, co-operative advertising, advertising and display allowances, dealer sales contests); sales force promotion (for example bonuses, contests, sales rallies).

NEED OF STUDY:Managers are always curious about the position of their companys products in the market which largely depend upon the companys goodwill, and the position of their brand. In order to maximize the sale and profit, company must deliver outstanding satisfaction to the retailers, wholesaler & customers. So market survey of retailers,


wholesalers & customers, chart out the position of the company as compared to the competitors. It helps the organization to find out the brand being sold most by the retailers along with their stocking and also consumer buying preferences.



1) To study about the Amul company sales promotional strategy in Gondia district. 2) To study about the awareness of amul product among the people in Gondia district.


3) To know the factors which affects consumers buying behavior to the purchase Amul Product. 4) To analyze the promotional activity and its effect on customer product buying decision.



1. The scope of the study is limited only in Gondia district. 2. This project for increasing Sale and Finding the market for Amul product. 3. There is a study to increase in consumers and retailers expectation.


4. This project will lead to necessary insight and requisite data to accomplish the preceding motive.



Hypothesis is a preliminary or tentative explanation or postulate by the researcher of what the researcher considers the outcome of an investigation will be. It indicates the expectations of the researcher regarding certain variables. It is the most specific way in which an answer to a problem can be stated. 10

It offers explanations for the relationships between those variables that can be empirically tested. Promotional activity used by Amul co. leads into No.1 position in Gondia region.

Promotional Strategy influences the customer Product buying decision.

Motivation of Customer interest on Amul product.

Company profile:


In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION. This union selected the brand name AMUL in 1955.


The brand name Amul means AMULYA. This word derived form the Sanskrit word AMULYA which means PRICELESS. A quality control expert in Anand had suggested the brand name AMUL. 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. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the 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 have a proven model for dairy development (Generally known as ANAND PATTERN). In the early 40s, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterates farmers by the private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word.

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, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri


Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk. These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union. However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira district went on a milk strike. For 15 whole 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. Having seemed the condition, he decided to fulfill the farmers demand.


Gujarat Cooperative Milk Marketing Federation (GCMMF):





Federation (GCMMF) is India's largest food products marketing organisation. 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. Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January 2006, Amul plans to launch India's first sports drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's Gatorade . 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 recognised 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 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 a