UNIVERSITY OF MUMBAI Academic year 2010-2011

BHAVANS COLLEGE ANDHERI (W)

PROJECT ON Amul - The Taste of India.

PROJECT GUIDE MRS. KRUPA RAI

SUBMITTED BY SIDDHANT VITHAL PATIL T.Y.BMS SEMISTER V

ACKNOWLEDGEMENT

If words are considered as a symbol of approval and token of appreciation then let the words play the heralding role expressing my gratitude. First of all I would like to take this opportunity to thanks the Mumbai University for having projects as a part of the B.M.S curriculum. I would like to express my gratitude and sincere thanks to my Project Guide Prof. krupa Rai, for instilling confidence in me to carry out this study and extending valuable guidance and encouragement from time to time, without which it would not have been possible to undertake and complete this project. I also wish to extend my appreciation to the management and staff of my college especially the Chief Co-ordinator of BMS Mrs. Krupa Rai and our principal,for their kind co-ordination and support. Last but not the least; I would like to thanks my parents for giving me the best education and my colleagues for their valuable comments and suggestions for making this a cherishable experience for me.

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INDEX

SL. NO CHAPTER NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 2 2.1 2.2 2.3 3 4

TITLE

PAGE NO

EXECUTIVE SUMMARY INTRODUCTION INTRODUCTION TO THE PROBLEM REVIEW OF LITERATURE SIGNIFICANCE OF STUDY OBJECTIVE OF STUDY SCOPE OF STUDY METHODOLOGY SAMPLING PLAN CHAPTERIZATION INDUSTRY AND COMPANY PROFILE BACKGROUND INTRODUCTION TO THE GROUP INTRODUCTION TO THE COMPANY CONCEPTUAL FRAME WORK DATA ANALYSIS AND INTERPRETATION

4 6 8 9 14 15 16 17 18

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99 131

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FINDINGS RECOMMENDATION AND CONCLUSION

139 140 142 143

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BIBLIOGRAPHY ANNEXURE

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EXECUTIVE SUMMARY

The Indian Dairy Industry specializes in the procurement , production, processing, storage and distribution of dairy products. India as nation stands first in its share of dairy production in the international scenario. Amul means "priceless" in Sanskrit. The brand name "Amul," came from the Sanskrit word "Amoolya," was suggested by a quality control expert in Anand. Amul was formed in 1946, which is a dairy cooperative in India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.8 million milk producers in Gujarat, India. It all started in December 1946 with a group of farmers keen to free themselves from intermediaries, gain access to markets and thereby ensure maximum returns for their efforts. Verghese Kurien is called the father of the White Revolution in India. He is also known as the Milkman of India. He was the chairman of the Gujarat Co-operative Milk Marketing Federation Ltd.(GCMMF). GCMMF is an apex cooperative organization that manages the Amul food brand. The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level which in turn is further federated into a Milk Federation at the State level.

The above three-tier structure was set-up in order to delegate the various functions, milk collection is done at the Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation. The Food Brand Amul has received various awards such as the Ramkrishna Bajaj National Quality Award in 2003, Award International Cio 1000 for Resource fulness, and also the Rajiv Gandhi National Quality Award in 1999.

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Chapter 1

INTRODUCTION

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1. INTRODUCTION The Indian Dairy Industry engages in the production and processing of milk & cream. This industry is involved in the manufacture of various dairy products like cheese, curd, yoghurt etc. The Indian Dairy Industry specializes in the procurement , production, processing, storage and distribution of dairy products. India as nation stands first in its share of dairy production in the international scenario. The industry contributes about Rs 1, 15, 970 to the national economy The Indian Diary industry which is in the developing stage provides gainful employment to a vast majority of the rural households. It employs about 8.47 million people on yearly basis out of which 71% are women Jobs in Indian dairy industry are mainly in the fields of production and processing of dairy products. An individual with minimum of 60% marks who has bachelors degree course in the dairy technology can easily be availing an opportunity to work in this industry. For the graduation course in Dairy technology one has to qualify the All India Entrance Test that is affiliated to the Indian Council of Agricultural Research. After that the person can continue with his masters in dairy technology. Jobs would be for the following positions Dairy Scientists: The main job of the dairy scientists is to deal with collection of milk and taking care of the high yielding variety of animals. Dairy Technologists: The work of Dairy technology requires procurement officers who take the responsibility of collecting milk from farmers, milk booths and cattle-rearers. This particular procurement officer should well understand the latest technology that is applicable in maintaining the quality of milk of the process of transporting it to the desired location. Dairy Engineers: Dairy engineers are usually appointed is to set up and maintain dairy plants. Marketing Personal: These individuals deal with the sale and marketing of milk together with milk products.

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In India Milk production is dominated by small and marginal land-holding farmers and also by landless labourers who in aggregate own 70% of the national milch animal herd. And as the crop production on 78% of the agricultural land still depends on rain, which is prone to both drought and floods, rendering agricultural income is very much uncertain for most of the farmers.

Dairying, as a the society. Usually one or two milch animals enable the farmers to generate sufficient income to break the vicious subsistence agricultural-debt cycle. The Operation Flood which is the successful Indian dairy development programmed has analyzed that how food aid can be utilized as an investment in building the type of institutional infrastructure that can bring about national dairy development. Programmes like this, with similar policy orientations, may prove to be appropriate to dairy development in India. India in the early 1950's was commercially importing around 55000 tonnes of milk powder annually to meet the urban milk demand. Most of the significant developments in dairying have taken place in India in this century only.

Fluid Milk Ghee Butter Curd Khoa ( Patially Dehydrated Condensed Milk) Milk Powder including IMF Paneer and chhana Other including cream , ice cream

46.0% 27.5% 6.5% 7.0% 6.5% 3.5% 2.0% 1.0%

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1.1 INTRODUCTION TO THE PROBLEMThe Indian market is dominated by a large number of small local and regional players. There are an estimated 150 manufacturers in the organized segment, which accounts for 30-35% of sales and about 1000 units in the unorganized segments of the market. In the organized segment the significant brands are Kwality Walls , Vadilal, Amul, Havmor, Mother dairy and Baskins & Robbins. GCMMF is facing very tough competition from both in and outside India.

Amul combats competition from its competitors by providing quality products at a price which its customers value. Along with good quality products and reasonable price the packaging is also very good. Most of its products are available in many flavors. Excellent advertising backs its products and helps GCMMF (AMUL) to leave its competitors a tough time. Also Amul has come out with Amul Parlours to cater to various segments of customers. Amul has a very strong Brand Image in the Domestic market. Many products are exported by GCMMF.

PROBLEM ARRISES In competitative world Amul has many competitors that sells milk and milk products in the market. To position of Amul milk dairy and also to know strengeh of Amul among its competitors. Have to find AMUL IS THE BIGGEST SELLER OF MILK AND MILK PRODUCTS IN INDIA AMONG ITS COMPETITORS This will help us to know Amul can able to compete in marketand target more customers by increasing sales.

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1.2 REVIEW OF LITERATURE Milk- Development or Revolution

Published on: 01/31/2011

Author : Dr.P.George K John (Animal Feed Specialist)

India, the cradle of Indus valley civilization, is well-known for the agriculture in the past. Aryans had brought with them cows to generate power for agriculture operations and milk for their consumption. The story of 'holy cow' is till in the history and is used as a mighty tool in politics. Nevertheless India has been recognized as the top nation in the world for milk production reaching 104 MMT (NDDB). The advent of milk cooperative movement in the middle of the last century under the unique leadership of Dr.V.Kurien lifted the country to such an enviable position. He, a highly qualified and USA trained dairy engineer sacrificed his whole life for the cause of milk industry in India and converted Anand a remote village into the centre of operations for the country.

The development was totally based on the industry by introducing milk process, product development and marketing to fetch reasonable income to the poor farmers who had to throw away milk after two hours unless sold. Once the market got established the operation agreed to spend some fund for the development of cattle. The operation remained in the area of animal reproduction and veterinary treatment. The trader's intervention in enhancing the price of cotton seed the then feed for milk production forced Dr. Kurien to introduce the feed industry as a part of his operation.

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Ultimately the milk revolution called 'Operation Flood' had the following industrial wings.

1. Dairy plant 2. Feed plants 3. Semen bank 4. Veterinary mobile units.

The major portion of the operation 'the milk production' remained invisible with the poor farmers. Since no one estimated the costing at the farmer's door step and the farmer considered the money flown to his hands as sole profit the system flourished.Hence the milk industry in India had the strength of 340 million cows, 64 million buffaloes clustered to 150 dairy projects (NDDB 1990). Prof. Ramaswamy who argued for bullocks claimed that 200 million cows produce 80 million bull calves in a year which contribute to the large quantity of milk production in the country. The bottom line is there was no thrust to increase the productivity of dairy cows and buffaloes in India.

When large farms with high producing cows were coming up in the developed countries there was no encouragement for such operations in India. As long as milk was available at reasonable price there was no cry from the public against the cooperative system which remained unpolluted with politics with their bye laws. The milk price was increased carefully to avoid public agitation. Operation flood also formed a milk grid to flow milk to the deficient states to stabilize the price.

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FUTURE PLAN Chairman's Speech: 36th Annual General Body Meeting held on 18th August, 2010, The year that passed by was challenging one, not just for the global economy as a whole but also for India and its dairy industry. During the last year, India witnessed one of the worst monsoons in two decades leading to drop in agricultural production mainly in case of Wheat, Rice, Sugar and Pulses with its impact varying across different geographies and categories. With record buffer stock of Rice and Wheat accumulated by the Government during previous year, the nation could meet demand of Rice and Wheat from within. However in case of Sugar and Pulses, we had to resort to large-scale imports. India being one of the largest consumers of Pulses and Sugar in the World, import of these commodities resulted into record International prices and domestic prices too, shot up leading to price increases not only in these commodities but also in their substitutes and by-products. Compared to these commodities, there was relatively lower impact of draught on milk production in the country and substantial growth has also been achieved. Due to the sound procurement and distribution network as well as immaculate planning, in Gujarat we were able to wither the draught and also achieve 6.68% growth in milk procurement. We could foresee the impact of below normal monsoon in August 2009 itself and started planning to maintain milk production, procurement and inventory levels. At a time when due to lower production of cereals, fodder prices had jumped almost two-fold, we enhanced our supplies of cattle-feed to milk producers and maintained its prices below cost and were able to provide better returns to the milk producers to overcome the stress of draught.Our cooperative system stood by their members on one hand and also tried to be more cautious in keeping the consumers prices of milk and milk products at the barest minimum.

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Our cooperatives have therefore been successful in enhancing trust amongst its members as well as consumers during such difficult time. We are sure that with these measures and near normal monsoon during the next year, would lead to major increase in milk production as well as procurement. The current drought can be mainly attributed to the phenomenon of world-wide climate change. Developed nations in their quest for industrialisation, have perpetrated unhealthy levels of carbon emissions in the atmosphere. Developing nations including India have also joined the league. While every nation has a right of economic development, the current carbon emissions are not desirable and must be immediately brought down in order to provide a better tomorrow to our future generations. Our dairy cooperatives have initiated various activities to tackle this challenge prominent being; Tree Plantation Programme for afforestation, installation of Bio-gas plants for curbing methane emissions, installation of solar power packs at village level, adoption of energy efficient methods for milk processing and distribution, etc. While the previous year led to the world-wide economic recession, the year in retrospect was more of a global effort to overcome from the recession and all major economies announcing stimulus packages to provide necessary momentum to the economies. All these measures have restricted the fall in growth rates of developed nations, large-scale Government spending and cut in taxes have led to huge sovereign debts and many countries especially in Western Europe are battling to address this issue. In case of India however, the effect of economic recession was lower due to the inherent nature of the domestic consumption led growth story of the economy. Further, the slew of stimulus measures announced by the Government has provided necessary momentum to the economy and the economy is again geared to achieve double-digit growth in the coming years. Apart from the tax breaks provided to various Industries in form of stimulus package, the economy also got a boost from the increase in Government spending, which had a cascading effect leading to higher consumption.

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1.3 SIGNIFICANCE OF STUDY

Create the awareness in the market.

Building confidence in retailers as well as in the customer.

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

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1.4 OBJECTIVE OF STUDY

1) To know the market share of Amul products

2) To know the perception of customer regarding Amul products

3) To know effectiveness of marketing strategy and sales promotion in market

4) Evaluating the competitors strength and weakness in market

5) Retailer expectation from company

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1.5 SCOPE OF THE STUDY

This project is used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process Our marketing research on Amul specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications. It help to know about consumer that concentrates on understanding the preferences, attitudes, and behaviors of consumers in a market-based economy, and it aims to understand the effects and comparative success of marketing campaigns and also relevant, accurate, reliable, valid, and current information. Competitive marketing environment and the ever-increasing costs attributed to poor decision making require that marketing research provide sound information. Sound decisions are not based on gut feeling, intuition, or even pure judgment Cooperative dairy giant Amul is aiming to expand its presence out of India. It is considering to open a processing facility in US and subsequently Europe market. The representatives of Kaira District Co-operative Milk Producers' Union Limited that operates 65 year old Amul Dairy are likely to visit US next month to shape its ambitious plans to go international. The delegation will prepare a detailed report for costs and logistics. Currently, apex marketing body of 13 district unions, including Kaira Union, Gujarat Cooperative Milk Marketing Federation Limited (GCMMF) is exporting Amul and Sagar dairy products in middle east , Europe and US. "Considering presence of a million Indian families in US, we are anticipating market for at last 500 tonne of Ghee. Today, GCMMF exports only 500 tonne of ghee per annum.

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1.6 METHODOLOGYResearch is defined as human activity based on intellectual application in the investigation of matter. The primary aim for applied research is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. Scientific researchrelies on the application of the scientific method, a harnessing of curiosity. This research provides scientific information and theories for the explanation of the nature and the properties of the world around us.

METHODS OF DATA COLLECTIONo PRIMARY DATA

Primary data was collected through personnel interview and seeks answer to a setof preconceived questions in a structural way.The data collected through interview and observation called primary data because the researcher attains them from the field of research directly and for the first time.

For this research the researcher uses the following methods:

Personal Interview

o SECONDARY DATA

Secondary data are the information, which are attained indirectly. The researcher does not attain them himself or directly. Secondary data are generally attained from published and unpublished materials. They can gathered from public documents such as diaries, letters or they can gathered from public documents such as books, manuscripts, records and census reports.

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Secondary data were collected also from the other sources like company journals, company web site, company brouchers and internet.

1.7 SAMPLING PLAN

SAMPLE UNIT o The sample unit consists of milk retailers

SAMPLE SIZE o A sample size of 28 milk retailers that sells Amul milk and milk products with competitors products .

SAMPLING METHOD o The sampling method adopted was Simple random sampling.

RESEARCH TOOL o Pie Diagram and Bar Charts o Simple Percentage Analysis

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Sample design Sampling is a product of obtaining information about an entire population by examining only a part of it As depricted below , I have taken 14 retailers as may sample size. Retailers 28

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 are analysis are the main tools used for the purpose of interpretation. Survey were conducted by me in the following Areas: 1. Kajupada 2. Safedpool road 3. Jari mari road 4. Tanaji nagar 5. Krishna nagar 6. Barnat market 7. Paredwadi 8. Asalpha pipeline

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1.8 CHAPTERIZATIONFurther content had distributed in chapters that will help us to get proper understand and we should always select process of making research in correct manner so that we can able to get right final conclusion. Chapter 1 : This chapter focus on origin of milk dairy industry in India. In now current competitive situation Amul is the biggest player in the market. So lets focus on Amul and analysis the current position of Amul and assume one find final research Amul is the biggest seller of milk and milk products in the India among its competitors. To find out our assumption we had set objectives, research methodology, research design, samping plan etc. Chapter 2 : This chapter has assess all current data and facts of Amul also its competitors that compete tough with Amul to know more specific about Amul. Chapter 3 : All theory like Amul market facts that describes winning competitive position by Amul etc. Concepts helps us to better understanding this hilps to gain more knowledge to know Amul is the biggest seller of milk and milk products in the India among its competitors . Chapter 4 : After making primary data and also introducing secondary data that helps to data analysis and interpretation to obtain final conclusion of our research . Chapter 5 : From chapter 1,2,3 and second last chapter 4 we finally came to know hypothesis we had mad past Amul is the biggest seller of milk and milk products in the India among its competitors had become true . Our all objectives had also shown us posititive impact that has strong position in market to sell products and also to fight with competitors.

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Chapter 2

INDUSTRY AND COMPANY PROFILE

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2 INDUSTRY AND COMPANY PROFILE2 (A) INTRODUCTION TO THE INDIANDAIRY INDUSTRY The world's biggest dairy producing country is growing fast and looking to become an export powerhouse despite major quality problems. India is the world's largest milk producing country and is growing fast, with an eye toward becoming a major dairy exporter. Consumer Habits and Practices Milk hasbeen an integral part of Indian food for centuries.The per capitaavailability of milk in India has grown from 172 gm per person per day in 1972 to 182gmin 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 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, ice creams, cheese, milk powders, malted milk food, condensed milk infants food etc.

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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 only45% 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 dueto the strong perception that loose milk is fresh. Also, the current level of processing and packaging capacity limits the availability of packaged milk. 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. Market Size and Growth

Market size for milk is estimated to be 36 mm MT valued at Rs 470bn. 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.

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2 (B) PROFILE OF AMUL DAIRY INDUSTRYAmul means "priceless" in Sanskrit. The brand name "Amul," came from the Sanskrit word "Amoolya," was suggested by a quality control expert in Anand. Amul was formed in 1946, which is a dairy cooperative in India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.8 million milk producers in Gujarat, India. VISION

Amuls is to provide more and more satisfaction to the farmers , their customers, employees and distributors. Mission

We the motivated and dedicated workforce at Amul are committed to produce wholesome and safety food of excellent quality to remain market leader through development of quality management system state of art technology. Innovation and eco-friendly operations to achieve delightment of customer and milk producers Amul is based in Anand, Gujarat and has been an example of a co-operative organization's success in the long term. "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 (200607). Currently Unions making up GCMMF have 2.8 million producer members with milk collection average of 10.16 million liters per day. Besides India, Amul has entered overseas markets such as Mauritius ,UAE, USA, Banglades Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to

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enter Japanese market in 1994 did not succeed, but now it has fresh plans entering the Japanese markets. Other potential markets being considered include Sri Lanka.

ORGANIZATION STRUCTURE

Organization structure is divided into two parts:

1) External organization structure 2) Internal organization structure

1) External organization structure

External organization structure is the organization structure that affects the organization from the out side.

STATE LEVEL MARKETING FEDERATION

DISTRICT MILK PRODUCT UNION Ltd.

VILLAGE MILK PRODUCT UNION Ltd.

VILLAGERS

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As we know, GCMMF is unit of Gujarat Milk Marketing Federation, Which is a co-operative organization. The villagers of more than 10,000 villages of Gujarat are the bases of this structure. They all make village milk producers union, district level milk producers union and then a state level marketing federation is established. The structure is line relationship, which provides easy way to operate. It also provides better communication between two stage

2) Internal organization structure

Internal organization structure is the organization that affects the inside of the organization i.e. employees, managers, clerks, staff etc

A systematic and well defined organizational structure plays a vital role and provides accurate information to the top-level management .An organization structure defines a clear cut line of authorities and responsibilities among the employees of GCMMF.

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INTERNAL ORGANIZATION STRUCTURE CHART

CHAIRMAN MANAGING DIRECTOR GENERAL MANAGER ASSISTANT GENERAL MANAGERFINANCE DEPARTMENT SENIOR MANAGER FINANCE MANAGER PRODUCTION DEPARTMENT SENIOR MANAGER PRODUCTION MANAGER MARKETING DEPARTMENT SENIOR MANAGER MARKETING MANAGER PURCHASE AND SALES DEPARTMENT SENIOR MANAGER SALES MANAGER PERSONNEL DEPARTMENT SENIOR MANAGER PERSONAL MANAGER

ACCOUNTS MANAGER

OFFICER

MARKETING EXECUTIVE

OFFICER

P.R.F

ACCOUNTANTS

SUPERVISOR

F.S.R

SALESMAN

EXECUTIVE

The organization structure of Amul is well-arranged structure. At a glance a person can completely come to know about the organization structure. Amul is leaded by the director under him five branches. They are Factory, Marketing, Accounts, Purchase, Human Resources Department.

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The Three-tier "Amul Model" The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level which in turn is further federated into a Milk Federation at the State level. The above three-tier structure was set-up in order to delegate the various functions, milk collection is done at the Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation. This helps in eliminating not only internal competition but also ensuring that economies of scale is achieved. As the above structure was first evolved at Amul in Gujarat and thereafter replicated all over the country under the Operation Flood Programme, it is known as the Amul Model or Anand Pattern of Dairy Cooperatives It all started in December 1946 with a group of farmers keen to free themselves from intermediaries, gain access to markets and thereby ensure maximum returns for their efforts. Based in the village of Anand, the Kaira District Milk Cooperative Union expanded exponentially. It joined hands with other milk cooperatives, and the Gujarat network now covers 2.12 million farmers, 10,411 village level milk collection centers and fourteen district level plants under the overall supervision of GCMMF.

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There are similar federations in other states. Right from the beginning, there was recognition that this initiative would directly benefit and transform small farmers and contribute to the development of society. Markets, then and even today, are primitive and poor in infrastructure. Amul and GCMMF acknowledged that development and growth could not be left to market forces and that proactive intervention was required. Two key requirements were identified. The first, that sustained growth for the long term would depend on matching supply and demand. It would need heavy investment in the simultaneous development of suppliers and consumers. Second, that effective management of the network and commercial viability would require professional managers and technocrats. To implement their vision while retaining their focus on farmers, a hierarchical network of cooperatives was developed, which today forms the robust supply chain behind GCMMF's endeavors.

The vast and complex supply chain stretches from small suppliers to large fragmented markets. Management of this network is made more complex by the fact that GCMMF is directly responsible only for a small part of the chain, with a number of third party players large roles. Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by low consumer prices supported by a low cost system.

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Developing demand

At the time Amul was formed, consumers had limited purchasing power, and modest consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money. Introducing higher value products Beginning with liquid milk, GCMMF enhanced the product mix

through the progressive addition of higher value products while maintaining the desired growth in existing products. The distribution network 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 operations.

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About 1200 distributors in small towns across India were added during this initiative. Today about 3000 Distributors ensure availability of our products across India, whether it is in Leh or Lakshadweep, in Kutch or Arunachal.

Simultaneously, to augment fresh milk distribution in various markets of India, approximately 1400 exclusive Milk Distributors have been inducted. Mascot Since 1967 Amul products' mascot has been the very recognizable "Amul baby" (a chubby butter girl usually dressed in polka dotted dress) showing up on hoardings and product wrappers with the equally recognisable tagline Utterly Butterly Delicious Amul. The mascot was first used for Amul butter. But in recent years in a second wave of ad campaign for Amul products, she has also been used for other product like ghee and milk. Advertising Its advertising has also started using tongue-in-cheek sketches starring the Amul baby commenting jovially on the latest news or current events. The pun in her words has been popular. Amul outdoor advertising uses billboards, with a humorous take on current events and is updated frequently. The Amul ads are one of the longest running ads based on a theme, now eying for the Guinness records for being the longest running ad campaign ever with Smokey Bear. Sylvester D Cunha was the Managing Director of the advertising agency, ASP, that created the campaign in 1967. The slogan for amul ice-cream is"Real Milk, Real Ice-cream".

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Amuls Advertising Campaign Simple, social message, Creative & Always Funny

Amul - Utterly Butterly Delicious Utterly dishy or the story of a girl who wont grow up! Let us start with telling you something you didnt know about Amul the Amul advertising campaign which is Indias longest running ad campaign at present is going to make a bid in the Guinness Book of World Records for being one of the longest running ad campaigns in the whole world (Only the American Smokey Bear campaign is older). The Amul ads have almost become a part of folklore in the Advertising and Communications industry nowadays and when we checked out its inception we found out this amazing nugget.

Can you believe that the chubby-faced angelic polka-dotted Amul moppet was brainstormed to counter the Paulson doll, a glam desi girl with all the works, long before the reality show was in? Paulson, the competitor of Amul had relied on the old-as-hills strategy of having an image in itsy-bitsy clothing and when Sylvester daCunha got hold of the Amul account in 1966, he along with the art director Eustace Fernandez hit bulls eye by figuring out the mascot of a girl who will have all the fun by not growing up!

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Initially, the ads chugged on the strength of their base line and witty puns but later they went on to become more topical. Now, if we look back at the archives of Amul ads, we would see history unfurl before our eyes.

See the early ones:

This is what one would call keeping it straight and simple!

Another one from the days when things were beginning!

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And then the ads became more topical. The ones on Gavaskar look dated but you still can enjoy the fun :

Ha, Ha! Those guys must have had a rocking time while creating moments like these! And now, as we all know, it has become more than an ad if thats possible and also become a social critique that entertains as well as educates. Be it the controversy on Tata Nano, Himesh Reshammiyas stardom, the IPL fracas or the comedy Lage Raho Munnabhai the ads are always laugh out loud funny.

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See for yourself-

That's nano flattery Is there any better way to sum up the controversy?

Himesh Reshamiya and Amul - Feeling the nasal effect?

Munnabhai or is it "Maska Bhai"? Laugh out loud!

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Even Cricket is not spared by Amul's cheeky humo Mark the change. This reflects the present professional spirit to the hilt and if the charm and pace of the gentelemans game is missing, then it is because we have moved on. And Amul ads are so clued in with each of these perceptional shifts that you feel like you are living history if you rewind!

Dhoni in Amul's radar Guess, Bollywood will alaways be relevant in India. This is a take on the titletrack of super duper oldie called Amar Akbar Anthony and the track goes like Anhonee ko honee kar de, honee ko anhonee/ Ek jaigah jab jamah ho tinoh Amar Akbar Anthon. Is this why they call old is gold because we can use them again and again J ?

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Shreesanth - Center of controversy Even fakeiplplayer must be laughing his guts out! We dont need to be in-your-face to make our point.

SAFETY STANDARDS AND ENVIRONMENTAL CONCERNS Amul have created strong brand name in the market, with the help of their commitment to customers, and by providing best quality products at reasonable price.QUALITY MOVEMENT QUALITY POLICY The motivated and devoted work-force of AMUL- are committed to produce wholesome and safe foods of excellent quality to remain market leader through deployment of quality management systems, state-of-art-technology, innovation and eco-friendly operations to achieve delightment of customers and betterment of milk producers.

1) Quality Management System Initiative. The initiation of Total Quality Management (TQM) way back in 1994 was to work with the well known quality management initiatives which have proven to be effective elsewhere to create a culture of transparency, openness and leadership in the organization.

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As a very unique measure Amul extended all the TQM initiatives to its business partners whether it was the farmer producer in the village or a wholesale distributor in a metro town or its most sophisticated production unit.From the strength of Total Quality Management initiative Amul went on to implement Quality Management System of International Standard. Amul has been the first dairy in India to get accredited with certification of ISO 2200:2005 & ISO 9001 for its operations and plants. Further Amul has set an example that village Dairy Co-operative Societies could also achieve this milestone as these societies are accredited with ISO 9001:2000 a remarkable achievement in the history of irying in India.

2. Amul Plants are certified by Agricultural and Processed Food Exports Development Authority (APEDA) for export of dairy products to international markets. Gujarat Co-operative Milk Marketing Federation (GCMMF) which markets and exports dairy products under the brand of Amul has bagged award 11th time for excellent performance in exports of dairy products from APEDA - 2008-09, IMC Ramkrishna Bajaj National Quality Award 2003, "Best Best of All" Rajiv Gandhi National Quality Award - 1999, The International Dairy Federation Marketing Award (2007) for Amul pro-biotic ice-cream launch.

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3

FOOD SAFETY POLICY

We at AMUL, are committed to produce safe and wholesome food to continually remain as the market leader by providing food products delighting customer expectations and bestow safety.

We strive to achieve this by:

Improving raw milk quality. Applying innovative technology for manufacturing food products. Employing quality and food safety management practices to manufacture food products in a eco-friendly environment. Meeting applicable statutory and regulatory requirements . Effectively communicate and constantly improve professional skills of employees emphasizing continuous improvement of quality and food safety issues.

Amul has implemented the Quality Management System of international standard to offer invaluable products to national and international customers. Its plants are certified for ISO 22000:2005 for excellence in food safety management system

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4. ISO Accreditation of Primary Dairy Co-operative Societies: Amuls primary village cooperative societies are the first grass root level organizations in the rural sector to achieve ISO 9001 : 2000 certification in India, perhaps in the world. This has been possible because of Amuls continued commitment to offer consumers excellent products from the house of Amul.

The focus on health and hygiene, housekeeping, village chilling units, management of village co-operative societies, rapid transportation of raw milk to dairy plant, accelerated milk handling at the dairy reception dock has retained the freshness of milk being received at dairy plant. To sustain and rebuild on this effort, training programmes are organised for all the 2) stakeholder groups involved in the milk procurement chain, namely, milk producers, village society personnel and dairy plant personnel. Laboratories are equipped with state of the art equipments and well trained professional

5.Hygienic & Clean Milk Production Drive

The primary village dairy co-operative societies operate every morning and evening for the village farmers. Milk delivered by a producer is measured and a sample is drawn for a qualitytesting. Each centre is equipped with an electronic milko-tester for testing quality of milk, automatic weighing machine for weighing of milk with data processing facilities. 3)

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The entire operation is electronically captured with member-id. Various training programmes, especially on quality management system, good management practises in animal husbandry are imparted on continuous basis to member producers, dairy co-operative personnel and personnel at dairy plants.

6. Bulk Milk Chillers: As a part of Amuls quality movement Bulk Milk chillers are introduced at primary village cooperative society level. This system has drastically improved the microbiological quality of milk, therefore better return to farmers and good quality of products to consumers. Special 4) trainings are imparted to dairy co-operative personnel for better management of Bulk Milk Chillers.

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7. Road Milk Tankers

The chilled milk of the co-operative societies are transported to Amul Dairy Plant through road milk tankers once in a day. These milk tankers are insulted to safeguard the quality of milk. A tanker carries three to four societies milk together which helps in achieving economy in transportation of milk. These tankers are thoroughly cleaned at every unloading of milk at Dairy Plant and certified for its hygiene for transportation of milk by QC personnel.

This system has almost wiped out any possibility of spoilage to milk. Chilling milk at grass root level and transportation of the same in road milk tankers have reduced microbial load in raw milk which in turn has reduced processing costs in terms of energy, thereby better return to farmer producers.Geo-remote sensing based vehicle tracking system has been put in use for efficient handling of Road Milk Tankers carrying milk to Dairy Plant.

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8. Animal Disease Diagnostic Laboratory

The mobile and immobile laboratories have contributed to clean milk production drive in routine and emergencies especially in cases of plant or chemical poisoning and diseases claiming sudden death of animals; prompt and accurate diagnosis of the disease to keep the livestock in sound health, taking adequate preventive measures to avert major outbreak of diseases by diagnosing the disease at an early stage; planning for appropriate feeding strategy with the help of complete analysis of metabolic profile of the animal; improving infertility by timely remedial measures; timely detection of sub clinical cases of mastitis and control the incidences; assessing efficacy of vaccination could be determined by detection vaccination tite.

9.Animal Nutrition

Amuls focus on balanced cattle feed supplies to its dairy farmers has helped in better productivity and cattles free from problems associated with malnutrition. This has been possible due to its state-of-art cattle field plant which produces more than 1100 Tons of cattle feed daily. It has future plan to expand its present manufacturing capacity. Amul also helps in development of green fodder.

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10 . Quality of life: Assured market for their milk and daily income round the year from milk has improved the quality of life of farmers. The role village dairy co-operative societies in the over all development of the villages have brought better social infrastructures in the villages such as roads, communication system, schools, health centers, water facilities, banks etc. Introducing higher value products for its customers

Beginning with liquid milk, GCMMF enhanced the product mix through the progressive addition of higher value products while maintaining the desired growth in existing products . Despite competition in the high value dairy product segments from firms such as Hindustan Level, Nestle ,and Britannia ,GCMMF ensures that the product mix and the sequence in which Amul introduces its products is consistent with the core philosophy of providing milk at a basic

Price 1. Amul. India has brought a whole new revolution when it comes to pricing strategies which s evident through the success of its amul pralours outlets.

2. The main objective of Amul is to produce the low price and profitable for the customers. 3. Amuls product pricing reflecs the affordability of the local consumers. affordable price.

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AMUL RELIEF TRUST GCMMF formed a specific organization named Amul relief trust. Donation of 50 million given for reconstruction of the school building. Trust reconstructed 6 schools for a cost of Rs 41.1 millions. High revenue to government GCMMF has signed an agreement with wal-marl to stock its shelves with products under its Amul brand name . Amul processed cheese, pure ghee, shrikhand, nutramul , amuls mithaee Gulab Jamuns are few of the products marketed in the US markets. 1. 50 per cent of Americans being medically obese , and if Amul is really looked to capture the hearts of the second and third generation . Indians, offering low-fat versions of its brands , would make a lot of commercial sense. 2. Hence targeting the large Indian community in the US markets will its niche products like mithai, packaged ready to eat foods market it can definitely expand its market to a large extent. 3. Oversas Market Mauritius, UAE, Bangladesh, Australia, China, Singapore, Malasia, Nepal, Pakistan, Hongkong and a few South African countries. 4. Fresh plans of flooding the markets of Japan and Srilanka 5. Tie up with Glaxo to sell baby food. 6. According to points considered above the government of India gets Good foreign exchange, because of exports done by AMUL.

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Rivals The success of Amul resulted in similar organizations being setup by state governments throughout India, most of which had reasonable success. Examples are Milma in Kerala, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, K.M.F in Karnataka, Sudha in Bihar, Omfed in Orissa, saras in Rajasthan, Parag in Uttar Pradesh, Verka in Punjab, Aanchal in Uttarakhand, Vita in Haryana and others.Other co-operative rivals of Amul include National Dairy Development Board (NDDB) . With Amul entering the sports drink market, its rivals now include Coca Cola and PepsiCo.

AWARDS The Food Brand Amul has received various awards such as the Ramkrishna Bajaj National Quality Award in 2003, Award International Cio 1000 for Resource fulness, and also the Rajiv Gandhi National Quality Award in 1999. PRODUCT PORTFOLIO Amul is the biggest brand in the pouched milk sector in the world and in India it is the biggest food brand. Amul's range of products includes milk, ghee, milk powders, curd, ice cream, paneer, cream, chocolate, cheese, butter, and shrikhand.

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Brand Umbrella

Bread Spreads Amul Butter Utterly Butterly Delicious Amul Lite Low fat, low Cholesterol Bread Spread Delicious Table Margarine The Delicious way to eat healthy

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Milk Drinks Amul Kool Millk Shaake 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

Amul Kool Chocolate Milk

Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Tetra Pack

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Amul Masti Spiced Buttermilk Amul introduces the Best Thirst Quenching Drink

Amul Lassee

Amul Kool Thandai

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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

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

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Fresh Milk Amul Fresh Milk This is the most hygienic milk available in the market. Pasteurised in state-ofthe-art processing plants and pouchpacked for convenience. Amul Gold Milk

Amul Taaza Double Toned Milk

Amul Lite Slim and Trim Milk

Amul Fresh Cream

Amul Shakti Toned Milk

Amul Calci+

Amul Buttermilk

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Cheese Amul Pasteurised Processed Cheese 100% Vegetarian Cheese made from microbial rennet Amul Cheese Spreads Tasty Cheese Spreads in 3 great flavours..

Amul Emmental Cheese The Great Swiss Cheese from Amul, has a sweetdry flavour and hazelnut aroma

Amul Pizza Mozzarella Cheese Pizza cheese...makes great tasting pizzas!

Gouda Cheese

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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. Pro-biotic Dahi Cooking Butter

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.

Masti Dahi

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Desserts Amul Ice Creams Premium Ice Cream made in various varieties and flavours with dry fruits and nuts. Amul Shrikhand A delicious treat, anytime.

Amul Mithaee Gulab Jamuns Pure Khoya Gulab Jamums...best served piping hot.

Amul Chocolates The perfect gift for someone you love.

Amul Basundi

Amul Yogi Yoghurt

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2.1 BACKGROUND The Birth of Amul The birth of Amul at Anand provided the impetus to the cooperative dairy movement in the country. The Kaira District Cooperative Milk Producers Union Limited was registered on December 14, 1946 as a response to exploitation of marginal milk producers by traders or agents of existing dairies in the small town named Anand Milk Producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand. Often milk went sour as producers had to physically carry the milk in individual containers, especially in the summer season. These agents arbitrarily decided the prices depending on the production and the season. Milk is a commodity that has to be collected twice a day from each cow/buffalo. In winter, the producer was either left with surplus / unsold milk or had to sell it at very low prices. Moreover, the government at that time had given monopoly rights to Polson Dairy to collect milk from Anand and supply it to Bombay city in turn. India ranked nowhere amongst milk producing countries in the world because of its limitations in 1946 British Raj. Angered by the unfair and manipulative trade practices, the farmers of Kaira District approached Sardar Vallabhbhai Patel under the leadership of the local farmer leader Tribhuvandas Patel. Sardar Patel advised the farmers to form a Cooperative and supply milk directly to the Bombay Milk Scheme instead of selling it to Polson. He sent Morarji Desai to organize the farmers. In 1946, the farmers of the area went on a milk strike refusing to be further oppressed. Thus the Kaira District Cooperative was established to collect and process milk in the District of Kaira in 1946. Milk collection was also decentralized, as most producers were marginal farmers who were in a position to deliver 1-2 litres of milk per day. Village level cooperatives were established to organize the marginal milk producers in each of these villages.

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The Cooperative was further developed & managed by Dr. V Kurien along with Shri H M Dalaya. The first modern dairy of the Kaira Union was established at Anand. Indigenous R&D and technology development at the Cooperative had led to the successful production of skimmed milk powder from buffalo milk the first time on a commercial scale anywhere in the world. The foundations of a modern dairy industry in India were thus laid since India had one of the largest buffalo populations in the world. The success of the dairy co-operative movement spread rapidly in Gujarat. Within a short span five other district unions Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were organized. In order to combine forces and expand the market while saving on advertising and avoid a situation where milk cooperatives would compete against each other it was decided to set up an apex marketing body of dairy cooperative unions in Gujarat. Thus, in 1973, the Gujarat Co-operative Milk Marketing Federation was established. The Kaira District Co-operative Milk Producers Union Ltd. which had established the brand name AMUL in 1955 decided to hand over the brand name to GCMMF (AMUL). With the creation of GCMMF (AMUL), we managed to eliminate competition between Gujarats cooperatives while competing with the private sector as a combined stronger force. GCMMF (AMUL) has ensured remunerative returns to the farmers while providing consumers with products under the brand name AMUL. This was possible due to the leadership of the founder Chairman of AMUL, Tribhuvandas Patel and the vision of the father of the White Revolution, Dr. Verghese Kurien who worked as a professional manager at AMUL. Numerous people contributed to this movement which would otherwise not have been possible. Dr. Verghese Kurien, the World Food Prize and the Magsaysay Award winner, is the architect of Indias White Revolution, which helped India emerge as the largest milk producer in the world. Impressed with the development of dairy cooperatives in Kaira District & its success, Shri Lal Bahadur Shastri, the then Prime Minister of India during his visit to Anand in 1964, asked Dr. V Kurien to replicate the Anand type dairy cooperatives all over India.

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Thus, the National Dairy Developed Board was formed and Operation Flood Programme was launched for replication of the Amul Model all over India. Operation Flood, the worlds largest dairy development programme, is based on the experience gained from the Amul Model dairy cooperatives. The facilities at all levels are entirely farmer-owned. The cooperatives are able to build markets, supply inputs and create value-added processing. Thus, Amul Model cooperatives seem to be the most appropriate organizational force for promoting agricultural development using modern technologies and professional management and thereby generating employment for the rural masses and eradicating poverty in these undeveloped areas. India has already demonstrated the superiority of this approach. ROLE OF Dr.VARGESE IN THE EVOLUTION OF AMUL

Verghese Kurien is called the father of the White Revolution in India. He is also known as the Milkman of India.Born on November 26, 1921 in Kozhikode, Kerala, Dr. Verghese Kurien graduated with Physics from Loyola College, Madras in 1940. Subsequently, he did his B.E. from the Madras University and went to USA on a government scholarship to do his Masters in Mechanical Engineering from Michigan State University. In between, he completed special studies in engineering at the Tata Iron and Steel Company Institute at Jamshedpur, Bihar, in February 1946 and underwent nine months of specialized training in dairy engineering at the National Dairy Research Institute of Bangalore. He was the chairman of the Gujarat Co-operative Milk Marketing Federation Ltd.(GCMMF). GCMMF is an apex cooperative organization that manages the Amul food brand. He is recognised as the man behind the success of the Amul brand. Amul had a revenue of $1b USD in 2006-07. He is credited with being the architect of Operation Flood the largest dairy development program in the world. Kurien helped modernize Anand model of cooperative dairy development and thus engineered the White Revolution in India, and made India the largest milk producer in the world.

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His uncle, John Mathai, was an economist who served as India's first Railway Minister and subsequently as India's Finance Minister. Kurien also set up GCMMF (Gujarat Cooperative Milk Marketing Federation) in 1973 to sell the products produced by the dairies. Today GCMMF sells AMUL brand products not only in India but also overseas. The White Revolution Kurien has since then built this organization into one of the largest and most successful institutions in India. The Amul pattern of cooperatives had been so successful, in 1965, then Prime Minister of India, Shri Lal Bahadur Shastri, created the National Dairy Development Board (NDDB) to replicate the program on a nationwide basis citing Kurien's "extraordinary and dynamic leadership" upon naming him chairman. Kurien also set up GCMMF (Gujarat Cooperative Milk Marketing Federation) in 1973 to sell the products produced by the dairies. Today GCMMF sells AMUL brand products not only in India but also overseas. He quit the post of GCMMF Chairman in 2006 following disagreements with GCMMF management. Kurien, plays a key role in many other organizations, ranging from chairing the Viksit Bharat Foundation, a body set up by the President of India to chairman of the Institute of Rural Management, Anand's (IRMA) Board of Governors in India. Dr. Kurien was mentioned by the Ashoka foundation as one of the eminent present Day Social Entrepreneurs. Kurien's life story is chronicled in his memoirs 'I too had a dream'. Dr. Kurien and his team were pioneers in inventing the process of making milk powder and condensed milk from buffalo's milk instead of cow's milk. This was the reason Amul became so successful and competed well against Nestle who only used cow milk to make powder and condensed milk. In India buffalo milk was the main raw material unlike Europe where cow milk is abundant. India's first Prime Minister Jawahar Lal Nehru visited Anand to inaugrate AMUL "factory" and he embraced Dr. Kurien for his groundbreaking work.

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2.2 INTRODUCTION TO THE GROUP

AMUL has some few important competitors that always in a way to go ahead from Amul and to capture more market than Amul to increase sales. Amul main comprtitors are Mother dairy and Nestle, Amul

Gujarat co-operative milk marketing federation (GCMMF) owns Amul. Rajiv Gandhi National Quality Award and Ramakrishna National Quality Award winner. Amul delivers milk, butter, ghee, ice creams, cheese etc. and has over 50 products. Amul has milk handling capacity of 11.2 million litres per day.

Mother Dairy

Mother dairy is owned by National Dairy Development Board of India (NDDB). It was established in 1974 and is an ISO certified organisation. Also offers Dhaara - range of edible oils and Safal range of fresh fruit juices. Mother dairy markets around 2.8 million litres of milk everyday

Nestle

Nestle S.A. (Switzerland) runs its subsidiary in India with the name Nestle India. It has a total of six thousand brands. In 2009 Nestle recorded a net profit of CHF 10.43 billion, 16% of which was from Asia.

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A) Mother dairy Mother Dairy's range of products include the brands Mother Dairy (milk, milk products, curd, ice cream, butter, etc), Dhara (range of edible oils) and Safal (range of fresh fruits and vegetables, frozen vegetables, fruit juices). Mother Dairy Fruit and Vegetable Pvt. Ltd. offers the following products: Mother Dairy markets dairy products like Liquid Milk, Ice Creams, Flavoured Milk, Dahi, Lassi, Mishti Doi, Ghee, White Butter, Table Butter, Cheese, UHT Milk, 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 Mother Dairy sources significant part of its requirement of liquid milk from dairy cooperatives. Mother Dairy sources fruits and vegetables from farmers / growers associations. .

The companys derives significant competitive advantage from its unique distribution network of bulk vending booths, retail outlets and mobile units. Mother 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.

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QUALITY STANDARDS

Mother Dairy is an IS/ ISO 9002, IS 15000 HACCP and IS 14001 EMS certified organization. Mother Dairy, Delhi has been awarded ISO 9001:2000 (Quality Management Systems), HACCP, 2002 RvA (Food Safety Management Systems) and ISO 14001:2004 (Environmental Management Systems) Certifications. Moreover, National Accreditation Board accredits its Quality Assurance Laboratory as per ISO/IEC 17025:1999 for Testing and Calibration Laboratories, Department of Science and Technology, Government of India.

Focused approach In a nutshell, Mother Dairy wants to get into bigger markets and have bigger shares in those markets. The co-operative is also expanding its product portfolio further to match rival offerings - particularly those of Amul. For the first 22 years of its existence, liquid milk was the only dairy product that Mother Dairy offered. So while the product portfolio has been growing, Mother Dairy has plans for reach out to newer markets but the strategy here is more product specific. In liquid milk, it will initially concentrate only on four markets . Delhi, its home ground; the Junagarh region and Ahmedabad in Gujarat; Mumbai, which it entered a year ago; and Hyderabad, where it moved in a little more than a year ago. Wider spread However, as far as other dairy products are concerned, Mother Dairy plans to expand across the board. In ice creams, it was only two years ago that Mother Dairy entered its first market outside Delhi - UP and Punjab .Today, it's extended its operation to Haryana, Jaipur, Mumbai and Kolkata as well. Next year, it plans to go south to Hyderabad and Bangalore. As far as Mother Dairy's non-dairy products are concerned, edible-oil brand Dhara has already has nationwide presence.

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Product differentiation While Mother Dairy still may not have a product portfolio as large as Amul, which is also expanding across the country in a big way and is a much bigger player, it's doing its bit. Mother Dairy says the idea is not just to enter new markets, but to do well in those markets which means bigger market shares in the different product categories in whichever market it is present. The drivers will be value created through quality of the offerings as well as innovations in products. This will, of course, be backed by relevant marketing and promotion campaigns. Smart marketing On the marketing front, Mother Dairy says it's trying to take its product campaigns and communications to a higher platform. For instance, in the case of milk, the campaigns do not talk about the obvious benefits milk is good for health, it has calcium and so on but rather it targets children and are created around ideas such as "The country needs you, grow faster". As far as products such as butter, cheese and ice creams go, the campaigns have been created around "taste". For butter again, the focus is on children. "Amul butter may be selling the most, but the advertising and promotions are almost always targeted at adults," points out an analyst citing Amul's popular Utterly-Butterly campaigns. Here, Mother Dairy has dared to go different. Since 60 per cent butter is consumed by kids, the company wants them to sit up and take notice of its butter. Makkhan Singh, a sturdy jovial cow has been made its brand ambassador. It's cheese for children again. A couple of months ago, Mother Dairy carried out a retail activity: "Cheese khao superhero ban jao", where kids buying cheese at a retail outlet were invited for a photo op - dressed as superheros through Polaroid cameras; and the framed photograph was presented to them. The activity was carried out in about 150 outlets in Delhi and Mumbai, with about 20,000-25,000 snaps being taken.

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Cheese was also something that helped the company bond better with its retailers. In November 2005, retailers in Delhi displayed banners proclaiming, "Cheese ke saath bees ki cheez," a proposal that said if a consumer buys Mother Dairy cheese, the retailer can offer him anything worth Rs 20 from the shop - which worked better than offering something free with the product, which the consumer didn't even needs. Marketing drive

Mother Dairy expects new markets to drive up sales of its ice cream by 41% this year, compared to 25% growth last year. Mother Dairy, the Delhi based dairy products company, plans to increase its marketing budget to between Rs35-40 crore, up from Rs25 crore last year, primarily on advertising and promotions of new product launches, mostly in Mumbai and Kolkata. In the ice cream business, where Mother Dairy trails market leader Amul and Kwality Walls, its advertising and promotions budget will double to Rs10 crore. Amul, which is the market leader with 37% market share, spends Rs2.5 crore on advertising. Kwality has a 8% market share and Mother Dairy has about 7%. Mother Dairy expects new markets to drive up sales of its ice cream by 41% this year, compared to 25% growth last year. Set up in 1974 to provide marketing and retail operations for the National Dairy Development Board, which developed Indias milk cooperative movement, Mother Dairy has sales of Rs2,200 crore. More than half of such sales comes from milk sales. It also sells vegetables, oil, ice cream and yoghurt. While in Delhi the growth of our business was supported by the easy accessibility of our own outlets, we do not intend to have our stores elsewhere, says Paul Thachil, Mother Dairys chief executive. We will use the existing retail network so that we are easily available.

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The company intends to have up to 4,000 outlets selling its ice creams in Mumbai by year end from around 2,000 now. But extending its distribution network could be the hardest part, analysts said.Gaining a foothold in Mumbai and Kolkata will also reduce the seasonality of its ice cream business. Nationally, 45% of all ice cream sales take place in March, April and June.

LIMITATIONS

CHARGING MORE THANTHE EXACT MRP

MISBEHAVIOR BY VENDOR

MILK SMELLS LIKE DETERGENT

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B) NESTLEMarketing of formula One of the most prominent controversies involving Nestl concerns the promotion of the use of infant formula to mothers across the world including developing countries, an issue that attracted significant attention in 1977 as a result of the Nestl boycott which is still ongoing. Nestl continues to draw criticism that it is in violation of a 1981 World Health Organization code that regulates the advertising of breast milk formulas. Nestl's policy states that breast milk is the best food for infants, and that women who cannot or choose not to breast feed for whatever reason need an alternative to ensure that their babies are getting the nutrition they need.

Ethiopian debt In 2002 Nestl demanded the nation of Ethiopia repay $6million of debt to the company. Ethiopia was suffering a severe famine at the time. Nestl backed down from their demand after more than 8,500 people complained to the company about its treatment of the Ethiopian government, and agreed to re-invest any money they received from Ethiopia back into the country. Melamine in Chinese milk In late September 2008, the Hong Kong government claimed to have found melamine in a Chinese-made Nestl milk product. The Dairy Farm milk was made by Nestl's division in the Chinese coastal city Qingdao. Nestl affirmed that all its products were safe and were not made from milk adulterated with melamine. On October 2, 2008 the Taiwan Health ministry announced that six types of milk powders produced in China by Nestl contained traces of melamine. Nestl has announced that it will begin a recall of milk products produced in China.

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2.3 INTRODUCTION TO THE COMPANY Intelligent marketing

One of the most conservative FMCG entities , GCMMF spend a mere 1% of its turnover on promotions.

GCMMF has written and re-written rules of the game.

Amul butter girl is one of the longest running ad campaigns in the country for 41 years.

Intelligent marketing of milk, ice-cream and butter milk.

Defense Strategy

Moving consumers from loose milk to packaged milk and gradually move them up the value chain.

Expansion to foreign shores

7. GCMMF has signed an agreement with wal-marl to stock its shelves with products under its Amul brand name . Amul processed cheese, pure ghee, shrikhand, nutramul , amuls mithaee Gulab Jamuns are few of the products marketed in the US markets.

8. 50 per cent of Americans being medically obese , and if Amul is really looked to capture the hearts of the second and third generation . Indians, offering low-fat versions of its brands , would make a lot of commercial sense.

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9. Hence targeting the large Indian community in the US markets will its niche products like mithai, packaged ready to eat foods market it can definitely expand its market to a large extent.

10. Being exposed to a brand , its is natural for a customer t try more products. Products vice strategy of amul

1. Ice- cream: Under its sub brand snowcap .Amul launch fundoo to combat to capture the HULs max expanding Ice-cream market. 2. Chocolate: Confectionery amul launch milk chocolate confectionery to compete with Cadbury, Nestle etc. 3. BUTTER : Amul enter this area width low price butter with its main competitor being Britannia its focuses on high margin 4. Cheese: Amul has created a market for its mozzarella cheeses competitor nestle focuses on cheese slices. 5. Paneer: Amul has created a market for its branded paneer by launching non deice product 6. Condensed milk : Amul condensed milk faces heavy gross promotion of nestle milk made. 7. Pizzas: Amul has entered the ready to cook consumer segment through utterly butterly delicious amul.

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List of Products Marketed

Bread spreads

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, Refrigerated 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 Avsar Ladoos

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UHT Milk Range

Amul Shakti 3% fat Milk Amul Taaza 1.5% fat Milk Amul Gold 4.5% fat Milk Amul Lite Slim-n-Trim Milk 0% fat milk Amul Shakti Toned Milk Amul Fresh Cream Amul Snowcap Softy Mix 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 Whitene

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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 Standardized Milk 4.5% fat Amul Slim & Trim Double Toned Milk 1.5% fat Amul Saathi Skimmed Milk 0% fat Amul Cow Milk Curd Products

Yogi Sweetened Flavored Dahi (Dessert) Amul Masti Dahi (fresh curd) Amul Butter Milk Amul Lassee Amul Ice creams

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.)

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Sundae Range (Mango, Black Currant, Chocolate, Strawberry) Millennium Ice cream (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) HealthIsabcool

Chocolate & Confectionery

Amul Milk Chocolate Amul Fruit & Nut Chocolate

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Brown Beverage

Nutramul Malted Milk Food Milk Drink Amul Kool Flavoured Milk

Health Beverage

Amul Shakti White Milk Food

Ready to Serve Soups

Masti Tomato Soup Masti Hot & Sour Soup

Recently launched

Amul Ganthiya.

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Market share

Categories Chocolate drink Butter, ghee Cheese Sweets Milk powder Ice-cream chocolates

Market share 90% 85% 50% 50% 40% 24.75% 10%

Market position 1 1 1 1 1 3 2

Exports

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 9 years. Contests Amul chef of the year, 2007-08 Amul maharani contest,2007-08 Amul food festival contest Winners of slogan likho Disneyland dekho contest Winners of Amulya fly to Bangkok contest

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The major export products are:

Consumer Packs Amul Pure Ghee Amul Butter Amul Shrikhand Amul Mithaee Gulabjamun Nutramul Brown Beverage Amulspray Infant Milk Food Amul Cheese Amul Malai Paneer, Amul UHT Milk (Long Life), Amul Fresh Cream,Bulk Packs Amul Skimmed Milk Powder Amul Full Cream Milk Powde

The products are exported to 18 countries namely, USA, Kuwait, Qatar, UAE, Yemen, Bahrain, Muscat, Saudi Arabia, Tanzania, Madagascar, Sri Lanka, Singapore, Nepal, Bangladesh, Nepal Thailand and Australia.

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AMUL MARKETING OBJECTIVES

1) Identify & cater to emerging markets all over India.

2) Create awareness about the brand name and increase customer loyalty.

3) Tackle the problem of imitation of design.

4) Increase retailer satisfaction by providing better margins.

4PS PRODUCT STRATEGIES (MARKETING MIX) Product

Create awareness about its different brands thereby enabling the customer to differentiate between its various brands. Copy-write the packaging design to preserve the distinguishing identity barring competitors from imitating the same. Introduction of larger volume pouches in line with economy packs to provide large scale buyers price benefits. Different shaped pouches for its products for easy identification, e.g Square shaped pouch for Amul Tazaa, rectangular shaped for Amul Gold, etc

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Place

Place refers to marketing activities that make products available to consumers at the right time in a convenient location. It is the process of moving products from the producer to the consumer, which may involve several steps and the participation of multiple. AMUL has developed federation and AMUL parlors located in several part of country. The GCMMF handles the works relating to managing of stocks and distributors in country. Thus GCMMF look after the disbursement of product to the various marketing channels

Price

It is the value, usually in monetary terms that sellers ask for in exchange for the products they are offering. Pricing and product image are closely related. Customers will pay a higher price for well known, well regarded products, partly because of the image created through advertising and other promotions. This includes list price, discount, allowance, and credit terms. The prices of products of AMUL are also decided by the GCMMF. The GCMMF conducts the market survey to check the validity and feasibility of prices in the market and accordingly decides the prices of AMUL products.

However, the price is inclusive of several elements like,

Cost of milk. Labour cost. Processing cos Packaging cost.

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Advertising cost. Transportation cost. Sales promotion costs. Taxes etc. The GCMMF considers all these cost aspects and set them up in pricing structure to decide the selling price of milk and milk products.

Promotion

Place refers to marketing activities used to communicate positive, information about an organization, its products and activities to directly or indirectly expedite exchanges in target market. It includes a variety of techniques including advertisement, sale promotion, public relation and personal selling that are used to communicate with customers and potential customers.

AMUL promotes its products through newspaper, T.V.; hoarding etc. television is the best media for advertising. The GCMMF however uses hoarding for advertising in local areas. Hoarding designed on the creative basis attract the customer more.

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THE DIFFERENT PRODUCT FOR DIFFERENT PEOPLE

Amul never forgot its primary customer .

Amul collects 447,000 ltrs of milk from 2.12 million farmers (many illiterate) Product for youth

Amul launched Chocolate milk under brand name of Amul Kool Koko targeting the youth. Product for diabetic people

Indias First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics Product for the health conscious

Amul Launched lowfat, low cholesterol bread spreads

Product for the price sensitive India

Low Priced Amul Ice Creams and affordable sagar whitener Product for the urban class

Amul launched emmental, gouda and pizza mozzarella cheese

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AMUL PRODUCT MIX

Amul Product Portfolio

Amul mainly produces dairy product which falls under nondurable goods category but also produces durable goods

Examples

Durable Goods :-Milk Powders,Ready to Serve Soups Non Durable Goods:- Fresh Milk,Cheese Range & Ice creams .

Segmentation ,Targeting and Positioning.(S.T.P)

Segmentation

Wide range of product categories caters to consumers across all market segments. For example , Amul kool is targeted at children , while teenagers prefe kool caf , as it has a cool imagery assocated with it .

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Targeting

1. Changing retail environment

2. Striking out on its own, with Amul outlets or parlours to deliver consumer total brand experience.

3. Launched in 2002 , there are now over 4700 Amul parlours across the country, which contributed 3% to the brands total turnover in year 2009

Positioning

An mass market player,no premium offerings. USP : Quality with affordability . Against niche players- value addition to customers. Sheer sze and scale of operation. New offering for health conscious and vibrant India Health and energy drinks stamina , a health drinks made from milk with added vitamin c against red bull and Gatorade, milk better than cola. Aimed at youngsters, priced at Rs12. Ice-cream. Probiotic and sugar- free variants. Chocolates Sugar-free brand called Choco-mini to target the diabetic.

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Promotion 1. Give this wide product portfolio, Amul s approach is to promote its brands in a rotational cycle of two to three years.

2. After ice-creams were launched in 1996 , the category was re-visied in 1999, in order to improve availability of the product and make it affordable.

3. The focus shifted to cheese in 20001 , Amul Masti chaas in 2004-05 (sales of masti dahi grew by 25% ) nutramul and kool kafe in 2006 and this year the focus is on Amul . koko-cold chocolate drink.

4. Uses a variety of media to communicate.

5. Most fameous is billboard campaign

6. The endearing polka dressed girl and pun at various issues increased brands fan following.

7. Amul food festival , which has been held for the last four year between October and December in about 50,000 retail outlets.

8. The chef of India contest invites people to come up with recipes using as many Amul products as possible.The recipe can be submitted on amuls website.

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9. Slogan like Disneyland dekho contest.

10. Amul maharani contest: Qustions about Amul are asked.

11. Amul sponsored the singing competition. Amul star voice of India , Amul music ka maha mukabla. Cusomer based marke segmentation.

Kids: Amul kool,chocolae, milk nutramul energy drink,Amul kool mlk. Women: Amul calci+. Youth: Utterly Delicious pizza,Amul pizza cheese,Amul cheese spread. Calorie conscious: Amul lite,Sagar skimmed milk powder,Amul lite slim and trim milk. Health conscious: nutramul,Amul shskti health food drink.

Industry based market segmentation.

Milk : Ice-cream manufacturers ,Restaurant/Food chains,Coffee shop Chains.

Butter,Cheese,Ghee: Bakery and confectionaries,Pizza retailers,Snacks Retailers.

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DIFFERENT SEGMENTS AND DIFFERENT COMPETITORS BUTTER BABY FOOD Dairy WHITENER SEGMENT Britannia. Nestle. Nestle. Heinz. CHEESE ICE CREAMS Nestle. Britannia

CHOCOLATES AND CONFCTIONARIES

Britanna.

HLL

Cadbury Nestle

PIZZA

CURD

MLK ADDITIVES

Pizza Hut Dominos

Nestle

Cadbury

Motherdary

Smithkline Beecham

Nirulas Frozen Pizza ULTRA HIGH TRATED MLK SWEETS CONDENSED MLK Nestle Britannia Nestle Britannia COTAGE CHEESE

FLAVOURED MILK

Britanna Nest;le

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Product strategy of Amul The taste of India

Product strategy : Overview

1. Product positioning strategy. 2. Product Re-positioning strategy. 3. Product overlap strategy. 4. Product design strategy. 5. Product elimination. 6. Diversification strategy. 7. Value marketing strategy.

1.Product Positioning. o Placing a product n that part of the market .Where it will receive a favorable reception compared to competing products. o Indias first Pro-biotic wellness ice-cream and sugar free delights for diabetics. Amul sugar free. Amul prolife. o Probiotic wellness ice-cream Low price Amul ice-cream made kwalty walls lf hell.

Chocolate milk was launched Amul kool koko

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o Positioning Continued Amul launches chocolate mlk under brand name Amul kool koko. This is targeting at teenagers and youths. o Nov11,2007 Amul in Multinational arena with snack launch: Munch time Flavours: Masala, Mint and Tomato. o New Product activity Nov 26,2007: Amul launches fresh Paneer. (free from any harmful chemicals) o Flank Attack Expanding its cheese segment.

2.Product Repositioning. o New competition. o Change in consumer preference. o Wrong original positioning. Amul marketed bottle water product named JALDHARA but due to less potential in the market it turned out to be blunder. Now Amul is all set to launch bottled water NARMADA NEER.

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3.Product overlap strategy. o Amul processed cheese Vs cheese spread. o Nutramul energy drink Vs Amul kool.

o Situation where company decides to compete against its own brand. Powder milk. Health and price conscious Sagar Vs Amulya-

USP: Sagar is affordable whitener for health conscious one. Cheese Spreads. Specific Vs General. Amul processed cheese Vs Cheese spread. USP : Cheese spread is highly accepted spread for regular use

Milk Drink. Nutramul energy drink Vs Amul kool.

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4. Product Elimination.

o Product reaches the stage where continued support is no longer justified where performance is falling short of expectations, it is desirable to pull the product out of the market place. It eliminated JALDHARA a decade ago as bottled water product do not have potential customers.

5.Diversifcaton strategy. A) Dairy products.

Eg: fresh milk, drinks and desserts, bread spreads, cheese products.

B) Non dairy products Eg: veg oils,snacks, Instant food o Seeking unfamiliar products or markets or both in the pursuits of growth.

Secrets of Amuls diversification philosophy.

Progressive addition of higher value products while maintaining the desired growth in existing products. Amul introduced product with consistent value addition but never left core philosophy of providing milk at a basic, affordable price.

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o Benefits of diversfcation.

High growth. Expansion of network Advantage of each underline objectives.

6.Value marketing strategy.

Providing a product that work as claimed, is accompanied by decent service, and is delvered on time. Commitment to quality. Value for money. The generation for awareness. Fostering of loyality.

The taste of competition.

Ice-cream Amul-Expandng reach. o Expanding marketwith snowcap. o Launched fundoo to combat HLLs Max. HUL-Focusing on lower price point o Building a national chain of ice-cream parlours NIRULAS-Fortifying Delhi-centric presence with ice-cream only retal chain.

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Chocolate: Amul: launching a puffed-rce cenred bar. Launched milk/Chocolate confectionery. Planning to enter value added segments. Cadbury: Re-launched 5 Star and Gems launched temptations. Nestle: Re-launched 5 Stars and gems launched temptations. HUL: Extended max brand to sugar confectionery. Pizza

Amul : Enterng the ready- to - cook consumer segment through utterly delicious. Nirulas: Fortifying Delhi- Centric presence, by launching frozen ready-to-cook pizza. Pizza Hut:Increase outlets Dominos : Closing unprofitable outlets

Butter

Amul : Protect near dominance in low- margin market wth price. Britanna: focusing on just top 30 cities. Nestle : Outsourced product to complete dairy range.

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Curd

Amul: Expanding reach by a ligning with other milk co-operatives. Nestle: Means to complete its dairy range. Mother Dairy: leveraging its liquid milk distributio