Amul Project

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GRAND PROJECT REPORT ON “RETAILER SATISFACTION OF AMUL PRODUCTS IN TERMS OF AREA DELIVERY AGENT SERVICES” AT MOTHER DAIRY (A UNIT OF GCCMF) PREPARED BY: RAVISH MOTERIYA ROLL NO: 34 SUBMITTED FOR: PARTIAL FULFILLMENT OF REQIREMENT OF TWO YEARS OF FULL MBA Guided By: Mrs. RAKSHA PORIYA Faculty Member, HNSMBA Submitted To:

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Transcript of Amul Project

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GRAND PROJECT REPORT

ON“RETAILER SATISFACTION OF AMUL PRODUCTS IN TERMS OF

AREA DELIVERY AGENT SERVICES”

ATMOTHER DAIRY (A UNIT OF GCCMF)

PREPARED BY:

RAVISH MOTERIYA

ROLL NO: 34

SUBMITTED FOR:

PARTIAL FULFILLMENT OF REQIREMENT OF TWO

YEARS OF FULL MBA

Guided By:

Mrs. RAKSHA PORIYA

Faculty Member, HNSMBA

Submitted To:

H.N.SHUKLA COLLEGE OF MANAGEMANT STUDIES

NEAR LAL PARI LAKE BICHRI, RAJKOT.

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Dr. Vergese Kurien

Founder of ANAND Pattern

DECLARATION

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I RAVISH MOTERIYA student of H.N.SHUKLA COLLEGE OF

MANAGEMENT STUDIES, RAJKOT, hereby declare that the project work

presented in this report is my own work and has been accomplished under the

supervision of our guide MRS.RAKSHA PORIYA (SHREE H.N.SHUKLA

COLLEGE OF MANAGEMENT STUDIES, RAJKOT)

The report has not been previously submitted to any other university or college

for any other examination.

Date:

Place:

RAVISH MOTERIYA

PREFACE

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As a part of curriculum and to be familiar with the real depth and wide span of the

industry every student at the MBA is required to undergo intensive training.

My interest is in Fast Moving Consumer Goods (FMCG) so I selected a

marketing unit of Motherdairy (amul/sagar) as the most suitable place for training.

As a part of my project I undergo to a marketing research work to find out

Retailer’s Satisfaction in terms of Product Performance, Price, Promotion, and

Place of Four AMUL’s liquid milk and milk Products. Scientifically authentic

analysis of Satisfaction Level of the Retailers and find out the reasons, which lead

to dissatisfaction were also a part of my study and survey. To compete with other

large players in the field I have recommended some suggestion in my project.

In my survey I purported the key elements that affect the Satisfaction level of the

retailers and their feedback about the product.

I also declare that this project report is my own preparation and not copied from

any where.

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ACKNOWLEDGEMENT

As a part of our academic study as the student of M.B.A .SEM-4 th are required to

undergo training in marketing department of an industry in order to obtain practical

knowledge and broaden our view regarding the same.

I would like to express my special thanks to the entire executive person as well as staff of

“MOTHER DAIRY AND RAJKOT AMUL OFFICE.” Who have given their costly

time for me and provided all the possible information for my practical study.

I am highly thankful to our director And also thanks to every faculties of college who

gave me lots of guidance.

I am specially thankful to my project guide Mrs. Raksha Poriya who gave me lots of

guidance.

I am also thankful to mr. Vipul joshi Rajkot amul marketing incharge and few others

who extended necessary guidance in preparation of report

Thanking you,

Date:- Ravish Moteriya

INDEX

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SR.NO. PARTICULARS PAGE.NO.

1 EXECUTIVE SUMMERY  8

2 INDUSTRY ANALYSIS  9

3 EVOLUTION OF COOPERATIVES  13

4 GROUP MEMBER UNIONS  16

5 NAME,FORM & SIZE OF ORGANISATION  17

6 LOCATION  19

7 SECRET OF SUCCESS  21

8 ORGANISATION CHART  23

9 INTEGRATED MANAGEMENT SYSTEM  25

10 ACHIEVEMENT  26

11 RESEARCH & DEVELOPMENT  28

12 GLOBAL SCENARIO  30

13 INDIAN SCENARIO  31

  DAILY SALES OF AMUL  33

  MARKET SIZE & GROWTH  34

  MAJOR PLAYERS  35

14 MACRO ENVIRONMENT  39

  POLITICAL  40

  GOVERNMENTAL  41

  SOCIAL FACTOR  43

  TECHNOLOGICAL  45

SR.NO. PARTICULARS PAGE.NO.

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15 MARKETING DEPARTMENT  49

16 ADVERTISEMENT  52

17 DISTRIBUTION CHANNEL  54

18 SWOT ANALYSIS  56

19 INDUSTRIAL RELATION  60

20 SOCIAL RESPONSIBILITY OF BUSINESS  61

21 TIME KEEPING SYSTEM  62

22 QUALITY ASSURACE DEPARTMENT  63

23 PROJECT PROFILE  64

24 SOURCES OF DATA  66

25 SAMPLE AREA  67

26 KALAVAD ROAD AND UNI. ROAD  67

27 GANDHIGRAM  69

  KESHRI HIND BRIDGE  71

  BHAKTINAGAR CIRCLE  73

  MAVADI PLOT  75

28 CONCLUSION  78

  QUESTIOONAIRE  79

  SUGGESTIONS  81

  BIBLIOGRAPHY  82

   

EXECUTIVE SUMMARY

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The objective of this project is To Find out retailer’s satisfaction about four

products of Amul in terms of Communication, As per Time, As per Order, WDs

Services and

To do that in an efficient way I decide a sample size of 150 retailers and further

they are divided into five area wise clusters so we can have the accurate and

unbiased result.

To get accurate finding I have used Questionnaire as a tool of data collection,

which is designed as per the requirement of information. After collecting data of

all 150 retailers the whole analysis and interpretation has been made as per

sample category and then product wise sub-category. In this report rating scales

are used to gather accurate information about different degree of satisfaction,

which is ranging from Fully Satisfied to Fully unsatisfied (5 to 1) where 3 means

partially satisfied. Here I also try to mention the feedback by the customers,

which cause the problem.

Here I also find market penetration level of the product as per the sample area and

it can be shown in a graph at the end of the each sample area’s analysis.

I tried to use my all abilities to do the project in the best way and try to represent

my finding as accurate as possible.

INDUSTRY ANALYSIS

Dairy Industry: In a Globe

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The recently passed US Farm Bill 2002, titled the Farm Security and Rural

Investment Act of 2002 and signed by the US President George Bush, provides

for continuation of the existing Milk Price Support Program. This would further

depress international prices of dairy products and enhance subsidies.

Under this Bill, instead of reducing trade-distorting subsidies, the US Department

of Agriculture's Commodity Credit Corporation is committed to buy unlimited

quantities of butter, cheese and skimmed milk powder (non-fat dry milk) from

dairy plants at prices that enable them to pay a minimum support price for the

milk supplied by farmers.

Under a scenario where international prices are lower than domestic prices,

traders can and do make quick profits without any big investment. But the

interests of the large numbers of farmers with critical dependence on dairy may be

totally forgotten.

Though WTO framework is based on free trade, European Union and the United

States have bypassed and even openly violated their (WTO) commitments. For

developed countries confronting saturation in their own markets, penetration into

large developing countries is but a logical choice. This may be the reason why

New Zealand Dairy Board has dumped a large quantity of butter oil into India at

prices below $ 1000 per ton, whereas the prevailing international price is around

$1300 per ton.

In simple terms, New Zealand's butter oil made available at Rs 64.54 per kg is

roughly cheaper by Rs 15 a kg, compared to the prevailing international prices of

Rs 87.40 per kg.

DAIRY INDUSTRY …. IN INDIA

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Dairy industry in India has come a long way from dependence to self-reliance as

the total amount of milk produced more than tripled from 23 million tones back in

1973 to 81 million tones in 2000.

Interestingly, it's the single largest contributor to India's GDP and involves as

many as 80 million small farming households. The social impact of developing

the dairy industry has thus been profound. With the opening up of the Indian

market to an influx of foreign goods, much concern has been expressed over the

state of the Indian dairy industry.

Indian milk farmers are paid on the basis of the value of fat in the milk. In the last

one year, due to lower realization of ghee prices, there has been approximately 15

per cent erosion in the milk value realized by the farmers. A further drastic

decrease in the milk fat price would be enough for the farmer to exit the dairy

industry. If the undervalued imports are not checked, then all the gains achieved

by Operation Flood may be wiped out.

But this is just the beginning. What happens when imports of highly subsidized

milk powders follow and domestic milk production and supply is taken over by

reconstituted milk?

India has the world's cheapest milk but unfortunately costliest of milk products. It

may be due to cost diseconomies, process inefficiencies and poor yield. In post-

WTO regime cheap foodstuff need not necessarily mean poor quality. It could be

a very high quality product from the developed countries, available at low prices

due to lower tax barriers. I think we have already started to feel the heat of such

market changes with multinationals and domestic majors like Amul improving

their product mix and package.

Being a large country with small milk producers even a slight signal of a shortfall

or surplus in production tends to influence its interests. While developed countries

may have evolved better institutional mechanisms to protect the interests of

farmers and processor, this is not the case with India.

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Indian milk production, however, in contrast to other milk producing countries, is

characterized by lakhs (millions) of small and marginal farmers including landless

milk producers for whom it is not only a business but also the main source of

earning.

Technology and management are both important factors affecting the

competitiveness of India's dairy sector. We need latest technologies to produce

high quality products at low cost and professional management to utilize

optimally the industry's human and financial resources.

We can successfully meet the emerging challenges and harness the new

opportunities if we ensure widespread adoption of the latest available

technologies for processing, packaging and marketing of milk and milk products,

organize milk producers and professionally manage their organizations. I feel that

there should be level playing games for all the countries under WTO rules

Since the country is not faced with milk shortage, innovative use of technology

and proper resource management can help the industry to achieve export

competitiveness in terms of price and yield and quality.

India has emerged as the biggest producer of milk with an output of 81 million

tones in 2000-01, outpacing 72 million tones produced in the United States.

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From the view point of economy dairy industry has several points of

significant to this credit.(1) It gives production of milk and milk products which are dietcurious.

(2) It brings significant change in social economy structure of rural economy.

(3) It has important role in employment generation.

(4) By sound growth of co-operation this industry mutual help and self-

sufficient are cultivated among the masses.

(5) It provides regular source of income as supplementary. Employment to

small and marginal farmers and agricultural labors, therefore it acts

as a cattail change in the directions of equitable society.

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EVOLUTIONS OF COPERATIVES

Dairy Cooperatives

Emergence of Amul and Anand Pattern CooperativesManagement of Dairy Cooperatives

Last decades has witnessed phenomenal rise in milk production due to which

India, today, tops of the list of milk producing countries,. The country has the

largest cattle and buffalo population in the world, accounting for about one sixth

of the world’s cattle and one half of the world’s buffalo population. About 55% of

India milk output consists of buffalo milk.

Prior to formation of cooperatives, the milk producers were at the mercy of the

traditional traders who would pay remunerative prices in lean summer months and

extremely low prices in flush months of monsoon and winter. The irrational

pricing and exploitation by the trade, discourage farmers from initiation better

management practices for more production.

In India, the idea of cooperatives is as old as 1875, registration of societies at the

time was done under the companies act 1882 of societies. Registration act

1860.The cooperatives credit societies act was passed in 1904.

The first dairy society – The Katra Cooperative Dairy Society, Allahabad, was

registered in 1913 in U.P., soon after the cooperatives societies act (1912) was

passed.

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EMERGENCE OF MOTHER DAIRYHISTORY:

Mother Dairy owned by Gujarat Cooperative Milk Marketing federation

Limited(GCMMF Limited) – a state level apex cooperative organization of 1.6

million farmers of Gujarat, was commissioned in September 19, 1994 with a

sole objectives of receiving each and every drops of milk from its member unions

dairies.

The plant was set-up by L&T on turn basis and supported by a consortium of

world renowned dairy equipment and services supplied such as Denmark, LT

niro- Denmark, NUCON-New Zealand, Prepac-France and Westfalia-

Germany.

Mother Dairy receives milk in raw chilled condition from dairies insulated tankers

and after QA clearances and unloads to the silos after filter. Milk in processed and

packed in pouch with surplus milk gets converted into powder and surplus FAT

gets converted into ghee. Recently Ice-cream plant and long life milk plant

equipped with state of art technology have been added to the dairy’s arsenal.

The total investment made into the mother dairy is to the tune of Rs. 150 crore

including recently set up ice cream and long life milk facilities. The dairy operates

in shifts round the clock and managed by 600 young professionals.

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PROMOTERS “Promoters are the owners of the company who established the company and run

it. They bring the necessities for running the business such as capital and handle

all the prospects of the business.”

Promoters & Board of Directors

BANKERS:- State Bank of Saurashtra – Main

State Bank of India –Main

Bank of Baroda-Main

I.C.I.C.I. Bank limited-Main

HEAD OFFICE AND WORKS CORPORATE

OFFICE:-Gujarat co-operative milk marketing Federation

Dairy Road,

Anand.

District: Kheda

State – Gujarat

AUDITOR:-I.G.Muniya

Special Auditor (Milk)

Milk Audit offic

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GROUP MEMBER UNION:-

NO. NAME OF DAIRY PLACE

1. Sabar Dairy Himatnagar

2. Baroda Dairy Baroda

3. Panchamrut Dairy Godhra

4. Rajkot Dairy Rajkot

5. Dudhadhara Dairy Bharuch

6. Dudhsagar Dairy Mehsana

7. Banas Dairy Palanpur

8. Sumul Dairy Surat

9. Uttan Dairy Ahmedabad

10. Vasudhara Dairy Valsad

11. Gandhinagar Dairy Gandhinagar

12. Mother Dairy Gandhinagar

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NAME, FORM AND SIZE OF ORGANIZATON

Name and Address:- Mother Dairy Gandhinagar (A unit of GCCMF)

Near indira bridge,

Village- Bhat

District: Gandhinagar

State – Gujarat.

Size of Organization:- On the basis of size any industrial unit can be categorized into three types:-

1. Large Scale Unit

2. Medium Scale Unit

3. Small Scale Unit

Small scale units are those who are saving are not above three cores. Medium

scale industries are those who are saving are above three cores but not above

hundred cores. Although larges scale units are those who’s saving is above three

cores. Rajkot Mother Dairy is a large scale unit because of his investment.

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Form of Organization:-1. Democratic Management:-

The governing body is also known as managing committee as the government

interferes in the affairs of the society.

2. Service motive:-

The main objective of a co operative society is the service to the members of the

organization by providing them, services at minimum cost.

3. Voluntary association:-

As in the limited company it is an association of people and not of capital. Any

person can join or leave the institution as per his own desires.

4. State control:-

It is registered as per the Indian co operative’s act and Gujarat state co operative

act. Therefore, it mentions all the duties in favors of the state.

5. Distribution of surplus:-

The [art pf the profit earned is transfer to reserve funds. The remaining amount of

profit is utilized by distributing it into various groups of members contain the

amount of share value.

6. Interest on capital:-

The payment of the interest on capital is limited. It is moreover not compulsory

and when it is paid, the rate of interest can be fixed or cannot be fixed.

7. Equal voting rights:-

Only the members of the co operative society have the right to vote and fulfill the

promise of receiving equality. Every member has the right to vote only once.

8. Cash Trading:-

The organization cannot sustain the indebtedness resulting into losses. The trading

on credit is discouraged so the trading on cash is only carried out.

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LOCATION

When a new industrial unit is to be established, three interrelated decision are to

be made. This decision related to:

1. The scale of operations of the new industrial unit to be established,

2. The choice of techniques to be adopted if production.

3. The site at which manufacturing unit is to be located.

Meaning:- “Location is selection of place for established of industry were the cost of

production is the lowest at the time of establishment and where all the factors

necessary for production are available.”

Mother Dairy is located at Gandhinagar. It is very large co-operative society.

There are various factors taken into consideration while selecting location of

an industry:

Nearness to MarketQuickness in marketing action can be ensured by being close to the market.

Slowing down of deliveries can be avoided when the plant is located near the

market. The geographical dispersal of market is also important. Rajkot dairy

market is spread all over the Rajkot district.

Raw MaterialRaw material is very important for an industry to manufacture different products.

They play a very vital role in every industry. Amul milk is the basic raw material

of production of butter, milk power etc. which is easily available because of

abounded availability of cow and buffalo.

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Availability of LaborIt is an important factor to be considered because the manufacture process

requires labor with different skills.

Transport FacilitiesTransportation facility is the necessity for each and every industry to bring in raw

materials and to supply finish goods to market. There are three means of

transportation road, air, and sea. While selecting one these, its cost is also

considered.Mother Dairy uses roadways routes as it is beneficial to it.

Climatic conditions:This factor also influences the location of an industry. Natural climatic factors

which are necessary for a particular industry cannot be artificially created. Thus,

we can see that Mother Dairy has given due consideration to all the factors

influencing the location of an industry which has proved advantageous to it.

Availability of PowerIn an industry which gives quite a due importance to atomization, availability of

power is very important for its machines and equipments to function. Mother

Dairy has its own captive co-generation steam power plant which generates 1.5

MW of power. It is based on Nutria power supply.

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Secret Of Success

Despite of all the problems faced by the dairy industry in India, its progress is

remarkable. It is one of the fastest growing industries, about to acquire second position in

the world. Following are the basic sectors of success on India's dairy industry:

1. The efficient milk production, which is symbiotically integrated into agriculture.

The crop farming system provides residues and by-products are feed and fodders

for dairy animals. The milk production system in turn provides drought power and

organic fertilizers to the farming system.

2. The involvement's of milk producers in setting up their own organization for milk

production enhancement, procurement, processing and marketing. The dairy co-

operative combines the strength of farmers with the skills of professionals to

ensure high returns

3. It has an important role in employment generation with regard to its contribution

to national income it has 1st rank at producer price. The value of its output in the

year 1997-98 was Rs.50,0511 crores. This is the amount next to the value of

paddy.

4. The milk producers in India are assured of remunerative prices. They receive

almost 66% of what is paid by the consumers as retail price. This has acted as an

incentive to increase milk production. A low margin between the producer price

and the retail price has also resulted in reasonable price to the consumer, thus

expanding the market for milk and milk products.

5. Imports of dairy commodities in India have been cancelled through a farmer

friendly NDDB, which ensures that imported commodities are not made available

to the processing plants at a price lower than that of locally produced milk.

6. Collecting milk from the milk producers now carries the responsibility of

supplying those inputs to increase the milk production. This linkage also

optimizes on the transportation cost of the cattle feed to milk producers to the

processing plants.

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7. Bulk of the milk is delivered to processing plants within 3-4 hours of making,

thus avoiding intermediate chilling. This has resulted in reducing the price spread

between the producer and the customer.

8. National milk Grid: Milk now moves right across the length and breadth of the

country, linking producers with the consumers and evening out of regional and

seasonal disparities in production and consumption. This ensures right prices to

the producers and the continues supply to the customers.

9. India ha achieved bilk of the increase in milk production through the genetic up

gradation of the local stock rather than important milk cattle. Only a limited

number of exotic were imported for the production of exotic bulks needed for the

up gradation of local stock.

Cattle feed: Balanced cattle feed concentrates are now being made available to

milk producer’s right at the village level at reasonable price. Trucks that bring

also carry cattle feed thereby saving on the transportation cost.

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ORGANIZATION CHART

Organization chart is a graphical presentation of authority relation in an organization.

Organization chart is a diagrammatical presentation of organizational relation.

Organization chart is a way to explain entire organization in the form of a picture or

sketch chart is essential for managing because it provides readymade information about:-

1. Number of function

2. Number of persons

3. Number of levels

4. It shows authority relation.

DESCRIPTION:- At the top of organization chart of Mother Dairy there are boards of directors

including Chairman Mr. Parthiv Bhatol under the managing director Mr. B. M. Vyas

there is general manager Mr. A.K DHAGAT, under the general manager there are

managers if each and every department.

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ORGANIZATION CHART OF MOTHER DAIRY

Officer Accountant Officer

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INTEGRATED MANAGEMENT SYSTEM(IMS)

(QUALITY, ENVIRONMENT,AND FOOD SAFETY)

Mother dairy will established a brand truly worthy of gaining customers truth. In striving

so mother dairy is committed to receive milk supply from member unions, manufacturing

of quality and safe dairy and food products and reliable delivery to customers. This will

be achieved by apposite integration of food chain, use of frontline technology, efficient

utilization of resources, maintaining support of these values, Mother Dairy Shall-

QUALITY POLICY

“WE THE MOTIVATED AND DEVETED WORK FORCE OF MOTHER DAIRY

ARE COMMITTED TO PRODUCE WHOLESOME AND SAFE FOODS OF

EXCELLENT QUALITY TO REMAIN MARKET LEADER THROUGH THE

DEPLEYMENT OF THE QUALITY MANAGEMENT SYSTEM, SATE OF ART,

TECHNLOGY, INNOVATION AND ECO- FRIENDLY EPERATIONS TO ACHIVE

DELIGHTMENT OF CUSTOMER AND HETTERMENT OF MILK PRODUCERS”

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ACHIEVEMENTS

Mother Dairy a branch of Amul is fully computerized vacuum and

automatic dairy in Asia.

It has 1000000 liters milk producing capacity with managing 200

employees.

The type of technology is imported form L & T.

They can 1000000 liters of milk per day and packed and distribute.

For packing they have own plastic bag factory in Gandhinagar.

They have owned tube well water demand.

Amul was received J.D.Birla Award for rural development in the year

1999.

In the year 1998-99 the GCMMF popular as largest dairy product market

organization.

Milk payment to farmer rising from Rs.2.1 million in 1972 to close to

Rs.40 billion today.

Substantial increase in employment both direct and indirect.

The no. of women who are involved in the running of dairy co-operation

has gone up from 622000 in 1986-87 to 196700 in 1997-98. This

increasing involvement of women has resulted in more girls attending

school longer.

Joint turnover of 12 union federation is more than 2200 cr.

According to Amul official in just 3 years, Amul has become a formidable

player in the organized sector with nearly 40% of total market share.

In this financial year many foreign has demanded amul products.

Veterinary case has reduced the economic losses suffered from disease.

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Strategic Focus of AmulThe GCMMF has targeted a sales turnover of Rs. 10000 cr by 2005.

GCMMF want to increase the export from Rs. 30 Cr to 100 Cr.

They want that their future will include another 100 offices dealing with about

7500 stockiest.

They need of India’s next door neighbour for exports of milk and milk products

i.e. Pakistan, Bangladesh, and China etc.

GCMMF is going to launch VAT milk in a card board pack of 500 ml.

Amul want to gave discount other on average big scale.

Also in place will be a distribution network 7500 stock is (3500 today) and 1

million retail outlets (4 lack today).

Current amul ice-cream are manufactured at 15 plants, which are mainly co-

operative dairies amul plans to increase their 70 to 25.

Amul is focusing on new added value products like “ Butter Milk”.

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RESEARCH AND DEVELOPMENT

Introduction:-Research and Development plays an important role in determining the changes

and techniques to be adopted in an organization. It is the research and

development that helps the organization in making the profits.

The spirit of inquiry, research and development has helped the organization excel

in producing products, which would delight the consumer of this diverse land.

Mother Dairy research and development established in 1991 to benefit the

members by increasing productivity an efficiency or live stock agriculture through

its animal husbandry programmed.

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Area in, which research and development is carried out:-

From the late forty years Rajkot dairy has been investing in schemes to improve

milk yield of animals.

The union built up a full-fledged infrastructure for needing animals and ensuring

animal health care.

An efficient insemination service also was put into place though village society

workers.

The district union looks after the provision of technical inputs to enhance milk

production in animals like artificial insemination, service, veterinary care, better

feeds, etc.

The union has plants to install village chilling unit in the societies so that the

quality and freshness of milk can be retained.

A part of the society is profit is also channeled to drinking troughs for cattle relief

and veterinary services like first aid and artificial insemination in its village.

The union provides a pregnancy diagnosis service too.

The union cattle feed plant the only ISO-9002 feed factory pf the country sales

balance feed concentrate at cost price, to ensure better nutrition for animals.

The union also conducts hygiene audit in village cooperative and grades

accordingly.

Benefits:-

1. The highest production of Ghee was 455 tune in a year 2003-04

2. In 2003-04 the dairy has get the altimetry achievement by sealing 40 lakhs liters

extra milk.

3. The annual profit of Rajkot dairy is Rs.31.17 lakhs

4. Dairy’s processing expense is less.

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Global SenarioThe World’s 20 largest dairy companies 2006-2007

Company Name Turnover (US $)

Nestle 12.9

Dairy Farmers Of America 7.4

Danone 6.4

Phillip Morris (Kraft) 6.3

Parmalat 6.1

Suiza Foods 6.0

Aria Foods 5.3

Lactalis 5.1

Campina Melkunie 4.9

Snow Brand 4.7

Unilever 4.5

Friesland Coberco Dairy Foods 4.3

Bongrain 3.7

Land O’Lakes 3.3

Meiji Milk 3.2

Dean Foods 3.0

Morinaga 2.9

Sodiaal 2.8

Dairy Crest 2.5

Nordmilch 2.4

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Indian Scenario

Scope For Foreign Investment In Dairy Industry

After adoption of the new economic policy 1991, India offers to foreign investors,

a well-balanced package of fiscal incentives for exports and industrial investment,

without many interventions from government.

DFP (Dairy Food Processing) offers a good opportunity to foreign investors in

India. The changing international dairy trade pattern following GATT and the

emergence of WTO (World Trade Organization) offers the Indian dairy industry

an opportunity to take its blow as an exporter. India’s enthusiasm to integrate with

the world economy is reflected in technological up gradation professional

excellence and a cost effective approach.

The two main reasons for the world focus on India are:

1. The low cost economy.

2. The liberalization process initiated since 1991.

Other important factors include:

Low inflation rate, inexpensive labor, the presence of the worlds third largest pool

of technological man power, worlds largest democracy, an independent and well

established judiciary and case is communication due to wide spread use of

English among educated and professional class. At the same time the market

within India as well as the exports markets is fast growing which ensures

attractive return on entrepreneur’s investment.

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Problems Faced By Dairy Industry

1. The consumption of milk among rural population and also low income

groups of urban population is low, despite of India having a tradition of milk

consumption.

2. Inability to feed cattle adequately throughout the year remains the

most wide spread constraint.

3. Quality dairy animals are in short supply. Artificial insemination

service for breeding better cattle has limited coverage, barely reading an estimated

10% of bovines.

4. The animal health cover is getting increasingly neglected. In many

states over 70-80% of the veterinary budget is used up for staff salaries and jeeps,

with little left to buy medicines and other supplies.

5. On the production front, the pesticides contamination of new milk is

demanding immediate remedial steps.

6. Limited marketing support handicaps rural milk producers seriously.

Presently, urban milk supplies largely comes from major milk shed districts.

Dairy producers in remote areas are neglected.

7. Limited investment in setting up or expansion of milk procurement

network is another bottleneck. The rapid expansion in milk processing capacity

has not kept place milk production and procurement.

8. The high cost of credit and unavailability of cheap credit on time is

another adverse factor reducing viability of the dairy industry.

9. The immense problem to the dairy industry is due to infrastructure for

transporting, processing, and distributing rurally produced milk to major

consumer centers in urban areas. Improvement in raw milk by its chilling and

refrigerated transport is vital for making quality products.

The rural women, an invisible partner need access to training in modern cattle

management to maximize return.

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Daily Sales of Amul Milk In Saurashtra Region ( In liters)

District Collection (Lakh Lit.)

Rajkot Local 90000

Rajkot Up-country 22000

Surendranagar 30000

Jamnagar Local 17000

Jamnagar Up-country 4000

Porbandar Local 2500

Porbandar Up-country 1500

Amreli Local 4000

Amreli up-country 2700

Diu 3500

Junagadh Local 2500

Juanagadh Up-country 7000

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Market Size and Growth

Market size for milk is estimated to be 36mn MT valued at Rs.470billion. The

market is currently growing at round 4% p.a. in volume terms. The milk surplus

states in India are U.P., Punjab, Haryana, Rajasthan, Gujarat, Maharastra, A.P.,

Karnataka, and Tamil Nadu. The manufacturing of milk products is concentrate

Tamil Nadu d in these milk surplus states. The top 6 states are U.P, Punjab,

Rajasthan, Gujarat, Tamil Nadu, and A.P together account for 58% of national

production.

Milk production grew by a 1% p.a. between 1947 to 1970. Since the early 70’s,

under operation flood, production growth increased at 5% p.a.

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

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

perceived to be fresh by most consumers, in reality however, it poses a higher risk

of adulteration and contamination.

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

malted food, condensed milk & cheesed stood at 3.07 lakh MT in 2003.

Production of milk powder including infant milk food has raised 2.25 lakh MT in

2003. Where as that of malted food is at 65000 MT. cheese and condensed milk

production stands at 5000 and 11000 MT respectively in same year.

Market Share

GCMMF faces tough competition in the Indian market by different companies

like Britannia, Vadialal Cadbury etc. Though it is quite new in the Indian market

it shares a fair amount of dairy products in India. By advertising and promoting its

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product GCMMF has become one of the leading dairies in India. In western of

India GCMMF shares the most of the market while in other parts of India it is

next so. But slowly and surely GCMMF is growing in sharing the market with

other competitors industries.

Major Players

The packaged milk segment is dominated by the dairy cooperatives. GCMMF is

the largest player. All other local dairy cooperatives have their local

brands.e.g.Warana in Maharastra, Saras in Rajasthan, Vijay in A.P etc. other

private players include J K Dairy, Heritage Foods, Indian Dairy etc.

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Export Prospects For India

Presently, India a non-entity in international dairy market. However exports of

milk products are picking up, having gone up by 40 times by value in the first half

of the nineties, the value worth of RS. 400 million in 1994-95. Today GCMMF

(Gujarat Co-operative Milk Marketing Federation) is India’s largest exported of

dairy products valued at Rs. 18.3 crores in 1995-96. Its exports earnings are likely

to get doubled in 1998-99. Two note worthy export opportunities are emerging

one in South-east Asia and other in Russia, the immediate future is the prospects

of an additional demand of over 3 million tones of milk products in the Asian

region. Equally significant is the rise of Russia as the world’s biggest dairy

importer.

India is not fully utilizing its export potential in respect of dairy products. The

cost of milk production in India is the lowest. And the dairy industry is not getting

any subsidy. There is an urgent need to pay special attention to the quality if India

has to compete with other countries. At present the county is exporting the malted

milk foods, ghee, butter, and cheese to other countries like Bangladesh, UAE,

Nepal, Shri Lanka, Oman and Bahrain. Of course world milk prices are subject to

dramatic fluctuations.

Export earning from the live-stock sector and related products rose to Rs. 19,250

million in 1996-97 from Rs. 7,920 million in 1988-89.

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India’s Export Of Milk Products

India is evident that except for baby food, the exports for all other milk products

are showing an increasing trend in terms of quantity as well as in terms of value.

On the other hand India’s imports of milk production specially milk powder and

baby food is showing a declining trend.

Looking at the growing export opportunities in the post GATT ERA, Indian

planners have measures areas already adopted become quality conscious.

Corrective measures areas already adopted to meet the sanitary and photo-sanitary

specifications prescribed by WTO. Besides, covering processed dairy products,

the specifications of the WTO silos extended to the health status of cattle and

other live stock. Consequently, the main thrust of the ninth plan proposals is on

the improvement of animal health and adoption of sanitary and photo sanitary

specifications for dairy products. Towards this end, the TMDD (Technology

Mission on Dairy Development) has initiated wide ranging programmes.

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Concerns in export competitiveness are

Low cost Of Production

Milk production is a combination of labor & capital intensive. Due to low labor

cost, cost of production of milk is significantly to there in India.

QualitySignificant investment has to be made in milk procurement, equipment, and

chilling and refrigeration facilities. Also, training has to be imparted to improve

the quality to bring it up to international standards.

ProductivityTo have an exportable surplus in the long term and also to maintain cost

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

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

paneer, shrikhand, rasgolas, etc.

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MACRO ENVIRONMENT

PEST ANALYSIS

Internal Environment

Structure Culture

Resources

Task Environment

(Industry)

Societal Environment

Technological Forces

Political-Legal Forces

Sociocultural Forces

Economic Forces

StockholdersGovernments

SuppliersEmployees/ Labor Unions

Special interest groups

Customers

Creditors

Communities

Competitors

Trade Associations

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POLITICAL FACTORS

Political factor is very important aspect for the growth of any industry, thus the

political factor can immerge as opportunity or threat for that industry.

Regulatory Environment in the Dairy Processing Sector

The Indian processed dairy industry has grown and diversified enormously in the

last few years. To ensure the proper development and growth of this industrial

sector, the Government of India has instituted various laws and regulations. The

various regulations that govern the dairy processing industry can broadly be

classified into:

Compulsory Legislation

Prevention of Food Adulteration Act, 1954

This Act is the basic statute that is intended to protect the common consumer

against the supply of adulterated food. This specifies different standards for

various food articles. The standards are in terms of minimum quality levels

intended for ensuring safety in the consumption of these food items and for

safeguarding against harmful impurities and adulteration. The Central Committee

for Food Standards, under the Directorate General of Health Services, Ministry of

Health and Family Welfare, is responsible for the operation of this Act. The

provisions of the Act are mandatory and contravention of the rules can lead to

both fines and imprisonment.

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Government Regulations

Industrial License

No license is required for setting up a Dairy Project in India. Only a

Memorandum has to be submitted to the Secretariat for Industrial Approvals

(SIA) and an acknowledgment is to be obtained.

However Certificate of Registration is required under the Milk and Milk Products

Control Order (MMPO) 1992.

Foreign Investment

Foreign Investment in dairying requires prior approval from the Secretariat of

Industrial Approvals, Ministry of Industry, as dairying has not been included in

the list of High Priority Industries.

Automatic approval will be given upto 51% Foreign Investment in High Priority

Industries.

In case of other Industries, proposals will be cleared on case to case basis.

Government may allow 51% without enforcing the old limit of 40% applicable

under Foreign Exchange Regulations Act at its discretion.

Foreign Technology Agreements:

Foreign Technology Agreements are freely allowed in high priority industries

under the following terms:

Lump sum payment of Rs 10 million

Royalty payment of 5% on domestic sales and 8% as exports subject to total

payment of 8% on sales turnover, over a 10 year period from the date of

agreement or 7 years from commencement of production.

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Foreign Technology Agreements in dairying also need prior approval. Foreign

Exchange required for payment of Royalty will have to be purchased at market

rates.

Foreign Technicians can be freely hired.

Import of Capital GoodsImport of capital goods is automatically allowed if it is financed through Foreign

Equity. Alternatively, approval is needed from the Secretariat of Industrial

Approvals. The approval depends on the availability of Foreign Exchange

Resources.

Import of Second Hand Capital Goods

Import of Second hand goods is allowed subject to the following conditions:

Minimum Residual life of 5 years The equipment should not be more than 7 years

old. A certificate from the Chartered Engineers of the country of origin certifying

the age and the Residual life is to be produced. Import will be allowed only for

actual users.

Dividend Balancing

Remittances of dividend should be covered by earnings from exports recorded in

the years prior to the payment of dividend or in the years of the payment of the

dividend.

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SOCIAL FACTORS

Life Style Trend

With more money on hand, more and more Indians are drinking milk and

buttering their bread. Rising income levels have led to a rapid increase in the

consumption of milk and milk products among Indian households.

Urbanization

Urban population is increased about 26 million 1901 to 62 millions in 1951 an

increase of only 36 million in 50 years. But thereafter the absolute increase during

the next three decades was of the order of 98 million(1951-81). Due to this reason

the consumption of the milk was drastically increase during last two to four

decades. Because of the consumption of milk is high in urban area compared to

rural area. By the year of last the urban population is reached around 25.7 percent

of total population. The effective milk market is largely confined to urban areas,

inhabited by over 25 per cent of the country's population. An estimated 50 per

cent of the total milk produced is consumed here. By the end of the twentieth

century, the urban population is expected to increase by more than 100 million to

touch 364 million in 2000 a growth of about 40 per cent. The expected rise in

urban population would be a boon to Indian dairying. Presently, the organized

sector both cooperative and private and the traditional sector cater to this market.

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Consumption Habit And PracticesDay by day the need of milk is continuously increase. In the year 1972 average

requirement of the milk per capita are 172 per gram. While in 2000 the

requirement 215 gram per year. So there will be more demand or milk and milk

products in nearer future.

The consumption of milk is highest in north India that is 278 gram per day, while

in west region 174 gram per day. In eastern and southern area combines 215

grams per day require. 46% of the total milk is consumed in liquid form and 47%

is converted into ghee, paneer and ice cream and only 7% milk goes for western

products like powder, cheese etc.

The 98% of the milk produced in the rural area which is cats of 72% of the

population whereas the urban sector with 28% populations.

Even in urban India India as high as 83% of the consumed milk comes from the

unorganized sector.

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

pasteurized milk.

Population

During 1981-91, the population of India grew from 683 million in 1981 to 844

million in 1991-indicating in increase of 161 million during the period. The rate of

the growth slightly declined to 2.11 percent during 81-91 decade. Subsequently,

during the 8 years period (1991-98), population grew from 844 million to 987

million-an increase of 120 million. The annual average rate of growth registered a

decline to 1.8 per cent.

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TECHNOLOGICAL FACTORS

Some areas of Indian dairy industry can be strengthened by the induction of

specialized technologies and equipment from overseas. These include:

Raw milk handling: It needs to be upgraded in terms of physico-chemical

and microbiological attributes of the milk collected. The use of clarification and

bactofugation in raw milk processing can help improve quality of the milk

products.

Milk processing: Better operational efficiencies are needed to improve yields

and reduce wastage, minimize fat/protein losses during processing, control

production costs, save energy and extend shelf life. The adoption of GMP (Good

Manufacturing Practices) and HACCP (Hazard Analysis Critical Control Points)

would help manufacture milk products conforming to international standards.

Packaging: Another area is the range of for butter, cheese and the like. Better

packaging can help retain nutritive value of products packed and extend shelf life.

A cold chain distribution system is needed for proper storage and transportation of

dairy products.

Value-added products: There's immense scope for value-added products like

desserts, puddings, custards, sauces, mousse, stirred yoghurt, nectars and sherbets.

In this 21st Century, the Indian dairy industry has set its goal to better manage its

national resources for enhancing milk production and upgrading milk processing

through newer technologies. Multinational dairy giants can carve a niche for they

in this challenging task — a win-win situation that can be won!

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IT Technology

In today’s cost conscious, competitive business environment the efficiency of

streamlined processes, and the flexibility to grow are important for your business.

The IT solution implementation has been deterred by the need for large

investment, huge information technology (IT) teams, and lengthy implementation

schedules to achieve desired benefits until now.

“Smart dairy Solution” a comprehensive solution portfolio that addresses the

unique needs of Dairy plant management. It provides a simple but complete

business solution to efficiently meet a wide variety of general and Dairy-specific

business requirements Supported by a the technical support team Smart Dairy

Solutions is designed to deliver tangible value to Dairy plants today while

providing the scalability to fuel tomorrow's growth A simple but powerful

solution that addresses needs from procurements of milk to final dispatch of

products covering all intermediate activities i.e. Production, Quality control,

Accounts & finance, Personnel & Administration, Purchase & store and

Marketing & Sales.

Dairy industry primarily constitute of dairy plants for procurement, processing

and marketing of milk and milk products, unions to supervise the societies at the

village level, societies for procuring milk from the villagers and additionally the

state federations and organizations like NDDB for technical and commercial

consulting. Each dairy has societies attached to it for supply of milk, chilling

centers for intermediate storage of milk and fodder plants for processing and

supply of fodders to societies. The dairy in turn gives technical support, veterinary

& health services and fodder to the societies.

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I - Bilt Technologies Ltd a along with their consultancy partner James Martin and

Co with their experience of providing integrated solution for all functional areas

at Jaipur Dairy has given us an immense insight into the process and people

requirements of the dairy.

Above Tech.has been short listed by NDDB to implement the Dairy Solution in

India.

The I - Bilt Tech. cater to the needs of dairy industry at all levels, with our offerings

Business Process Reengineering: In the changing business scenario, business

focus needs to shift to consumers/ buyers and it becomes imperative to revisit our

business philosophies in the aspects of operation, culture, social systems and

technology. Our consulting team will do an assessment of the business process

identifying the strengths and weaknesses and propose the opportunities and guidelines

for change.

Information Strategy Plan: Our consulting team will identify the long term IT

needs in terms of hardware, network, and software application.

Dairy Website: To create web presence for the dairies and federations for

effective dissemination of information.

Portal: An on line solution to integrate all the members of the dairy industry,

including NDDB, federations, unions, dairy plants, societies, milk producers and

concerned organizations in the field of dairy development.

Enterprise Resource Planning: A comprehensive application catering to all the

functionalities of dairy plant and its associate entities. The Smart Dairy Solution

shall cater to all the business processes of the dairy plant. The solutions shall

capture the data at the process level of dairies and compile the same for decision

making at Union and federation level. The solution shall also provide ready made

interface to chilling centers and other third party software used at the dairy level.

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Decision Support System: DSS is an interactive computer-based systems and

subsystems Intended to help decision makers use data, documents, knowledge

and/or models to identify and solve problems and make decisions.

Data warehousing: A data warehouse is a computer system designed to

give business decision makers instant access to information by copying data from

existing systems and storing it for use by

Packaging Technology

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

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

sealed with foil. Over the years, several developments in packaging media have

taken place. In the early 80’s, plastic pouches replaced the bottles. Plastic pouches

made transportation & storage very convenient, besides reducing cost. Milk

packed in plastic pouches have a shelf life of just 1 to 2 days, that too only if

refrigerated. In 1996, tetra packs were introduced in India. Tetra packs are aseptic

laminate packs made of aluminum, paperboard and plastic. Milk stored in tetra

packs and treated under ultra high temperature technique (UHT) can be stored for

four months without refrigeration. Most of then dairy co-operatives in A.P, Tamil

Nadu, and Punjab & Rajasthan sell milk in tetra packs. However tetra packed

milk is costlier by Rs. 5 to 7 compared to plastic pouches. In 1999-2000 Nestle

launched its UHT milk. Amul too relaunched its Amul Taaza brand of UHTs

milk. The UHT milk market is expected to grow at a rate of more than 10-12% in

coming years.

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Marketing Department

Introduction

Marketing is very vital function in any industry. Every company has to handle its

marketing function with care. As the whole world is turning in to a global market,

marketing function is getting more and important in every company. The term

marketing is changing in the world. Now selling product by advertising. It is not

only the function of marketing. But in this new world marketing puts weightage

on satisfying consumer needs. If the market does a good job understanding

consumer needs, develops product that provide superior value and price,

distributes and promotes them effectively. This products will sell very easily.

Marketing Environment

The concept of markets finally brings as full circle to the concept pf marketing.

Marketing means managing markets to bring about exchanges for the purpose of

satisfying human wants. Thus we return to our definition of marketing as a

process by which individual and groups obtain what they need and what by

creating and exchanging products and value with others. The follow will show is

the marketing environment of an industry.

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Marketing Environment Chart

Above figure shows the main element in a modern marketing system in the usual

situations, marketing involves serving for market of end users in the face of

competitors send their respective products and message directly to consumer or

their marketing intermediaries to the end users.

Marketing Aspects Of Dairy Industry

India’s diary market is multi-layered, shaped like as pyramid with the base made

up of vast market for low cost milk. The narrow tip at the top is a small but

affluent market for western type milk products. The bulk of demand for milk,

however is among the poor in urban areas where individual requirement is small

may be a glassful for use as whitener for their tea. Nevertheless, it adds up to a

sizeable volume of millions of liters per day in major urban centers where lays the

immense growth potential for the modern sector. Presently, its milk distribution

network serves hardly 778 out of 3700 cities and towns, dispensing hygienically

segment would double in the next five years.

Supplier

Company Marketer

Competitor

Marketing Inter-mediaries

End User Market

Environment

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Following readings are important to understand the market structure of dairy

industry and what is projected for 2000 A.D.

1. Urban V/s rural market:

In 1995 out of the total milk production 44% was retained in rural areas for 72.2% of

population; where as 58% of milk was brought to the urban areas for 27.8%

population. By 2000 A.D. the rural to urban ratio is projected to be 40:60. It is evident

of urban bias in the milk market.

2. Organized V/s unorganized sector:

Despite of the fact that under OF (Operation Flood) programmed, the emphasis was

given on developing organized sector was only 18% in the total milk that was

marketed in the urban area. Its share is projected to increase 22% by 2000 A.D.

The index for plant capacity is also showing a rising trend for organized sector. The

plant capacity is 1950’s was around 10,000-20,000 liter per day, it increased to 1,

00,000 income per day in 1970’s to 5, 00,000 income per day in 1980’s and to 1 mega

liter/day in 1990’s.

3. Co-operative V/s government and private sector:

Within the organized sector the ratio of co-operative V/s governments department to

private sector was 60:40. This ratio is likely to be 50:50 by 2000 A.D. as new private

sector dairies are entering in the market as a result of policy of liberalization.

The proportion of liquid milk to other milk products in co-operative and government

sector was 90:10. The estimation is this ratio will change to 80:20 and 30:70 for co-

operative and private sector respectively. This is an indication of growing market of

other milk products in the country.

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Advertising

Advertising can be traced back to the very beginning of recorded history. Any

paid form of non personal, presentation and promotion of ideas goods or services

by an identified sponsor is known as advertising. Advertising is very important

tool to combat competition.

Amul has got many competitors to compete with. So the company has to give out

adapting in new s papers and magazines at regular interval time period.

GCMMF success lies in its excellence advertisements in the market. In the

beginning GCMMF was nothing that much important on advertisement. But after

some time it understand that if it was to enter in the Indian market, it would have

to advertisement its product largely in the market so it stated advertisements its

products in different media.

Just recently it has adopted a new message or slogan that says “Amul, The taste of

India” and GCMMF has recorded 12% rise in the sales of its products. GCMMF

has made its products very popular by advertisement in all the parts of India.

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Different Advertising Objectives:

Informing

When a product is to be introduced in the market the product gives the

information about it in advance. In this case objectives are to be build the ad in

customers mind. At the time of Uttarayan Amul introduce a new concept of ‘kite

bite’ and ‘chocolate chikki’.

Persuasive advertisingAdvertising used to build selective demand for a brand by persuading consumers

that it offers the best quality for their money.

Combined AdvertisementAmul gives advertisement of Nutramul as well as Sagar ghee and also provide

inter related scheme.

Reminding AdvertisingReminding customers that the product may be needed in the near future reminding

customers where to but the product keeping the product in customers minds

during off seasons maintaining top-of-mind position and product awareness.

Amul advertises itself by giving advertisements everyday in newspaper and

especially on Sunday, they provide many schemes and discounts.

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Distribution Channel

Most producers work with marketing intermediaries to bring their products to

market. The marketing intermediaries make up a marketing channel also called

distribution cannel.

Distribution channels are sets of interdependent organizations involved in the

process of making a product or service available for use or consumption.

A zero level of channel also called a direct marketing channel consists of a

manufacturer selling directly to the final customers.

A one level channel; contain one selling intermediary such as retailer to the final

customers.

A two level channel two intermediaries are typically wholesaler and retailer.

A three level channel are typically wholesaler, retailer and jobber in between.

GCMMF has an excellent distribution. It is its distribution channel, which has

made it so popular. GCMMF’s products like milk and milk products are

perishable. It becomes that much important for them to have a good distribution.

So Amul dairy industry has two level distribution channel in which there are a

wholesaler, retailer to final customer.

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Distribution Chart

We can see from above figure that GCMMF distribution channel is simple and clear. The

produced in the plants are sold to whole sale dealers than to retailers and then the

products comes in the hands of the consumers.

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Manufacturers

Area Delivery Agents

Dealer

Retailers

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SWOT ANALYSIS OF GCMMF

STRENGTHS:

Demand profile: Absolutely optimistic

Margins: Quite reasonable, even on packed liquid milk.

Flexibility of product mix: Tremendous. With balancing equipment, you

can keep on adding to your product line.

Availability of raw material: Abundant. Presently, more than 80% of milk

produced is flowing into the unorganized sector, which requires proper

channelization.

Technical manpower: Professionally-trained, technical human resource

pool, built over last 30 years.

WEAKNESSES:

Parishability:

Pasteurization has overcome this weakness partially. UHT gives milk long life.

Surely, many new processes will follow to improve milk quality and extend its

shelf life.

Lack of control over yield: Theoretically, there is little control over milk yield.

However, increased awareness of development like embryo transplant, artificial

insemination and properly managed animal husbandry practices, coupled with

higher income to rural milk producers should automatically lead to improvement

in milk yields.

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Logistics of procurement :

Woes of bad roads and inadequate transportation facility make milk procurement

problematic. But with the overall economic improvement in India, these problems

would also get solved.

Problematic distribution:

Yes, all is not will with distribution. But then if ice creams can be sold virtually at

every nook and corner, why can’t they sell other dairy products too? Moreover, it

is only a matter of time before they see the emergence of a cold chain linking the

producer to the refrigerator at the consumer’s home.

Competition:

With so many newcomers entering this industry, competition is becoming tougher

day by day. But then competition has to be faced as a ground reality. The market

is large enough for many to carve out their niche.

OPPORTUNITIES

“Failure is never final and success never ending.” Dr. Kurien bears out this

statement perfectly. He entered the industry when there are only threats. He met

failure head-on and now he clearly is an example of “Never ending success.” If

dairy entrepreneurs are looking for opportunities in India, the following areas

must be tapped.

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Value addition

There is a phenomenal scope for innovations in product development, packaging

and presentation. Given below are potential areas of value addition.

Steps should be taken to introduce value addition products like shrikhand, ice-

cream, panner, khoa, favored milk etc. This will lead to a greater presence and

flexibility in the market place along with opportunities in the field of brand

building.

Addition cultured product like yoghurt and cheese lend further strength both in

terms of utilization of resources and presence in the market place.

A lateral view opens up opportunities in milk proteins thro’ casein, castigates and

other dietary protein, future opening up export opportunities.

Yet another aspect can be addition of infant foods geriatric foods and nutritional

.

Export potential

Efforts to exploit export potential are already on. Amul is exporting to

Bangladesh, Srilanka, Nigeria, and Middle East. Following the new GATT treaty,

opportunities will increase tremendously for the export of agri-products in general

and dairy products in particular.

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THREATS

Milk vendors, The un-organized sectorToday milk vendor are occupying the pride of place in the industry. Organized

dissemination of information about the harm that they are doing to producers and

consumers should see a steady decline in their importance.

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INDUSTRIAL RELATION

Industrial relation is used o refer the relations between the two parties concerned

with industry. The two parties in relation are at present is workers and staff

members or say employer employees.

Any organization has one or a set of objectives. The management determines

them. Management involves working with people and getting organizational

objectives. The idea of working trough people is interpreted in terms of assigning

activities to subordinates. Thus in the success of any organization needs the

cooperative of each and every employees along with the management is

necessary.

There are approximately 600 worker working coordinately in Mother dairy which

can be seen by it grand success achieve. Against the co operation received from

worker. Rajkot dairy in return provides sufficing salary and wages to all

employees. As discussed before so many facilities are provided which inspire

each and every worker to put them heart and soul in work. Because of good

relation between management and workers Rajkot dairy is able to erect firmly In

the most competitive market.

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SOCIAL RESPONSIBILITY OF UNIT

It is the prime objective of the unit to contribute something or the other towards the

employee, members, shares holders or society. In the same way, Rajkot Dairy union has

greatly contributed to the abolishment of illiteracy by adopting member education

programmed.

Benefits of member education programmed

Sr. No. Benefits To Numbers

1. Village co operative society 573

2. Women 1437

3. Men 1138

The participation of women milk producers in the dairy co operative society has

been remarkable. During this year Rajkot dairy started 62 new cooperative of

milk and half of the cooperative is managed by women.

Mother Dairy also started a training programmed for dairy and animal husbandry.

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TIME KEEPING SYSTEM

Man can work for some limited time. He can not work for 24 hour. But

organization like Rajkot Gopal Dairy is working round the clock. But jeer also

there are some adjustments made between workers, which are known as shifts.

Some workers work in one shift, others in second and others in third. Generally,

shifts are of 8 hours.

Rajkot Gopal Dairy rune 24 hours. This unit has also its time keeping system.

Time keeping system is divided into three shifts in this dairy, it can be as under.

Worker’s shifts

1. Shifts A : 7:00 AM. To 3:00 PM.

2. Shifts B : 3:00 PM. To 11:00 PM.

3. Shifts C : 11:00 PM. To 7:00 AM.

General Shifts

1. 9:30 AM. To 6:30 PM.

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QUALITY ASSURANCE DEPARTMENT

Introduction

Mother Dairy simply means, “Value for money and quality as it should be.”

They are focused on delighting their customers by developing new products to

meet their expectations and delivering the best quality products at lowest possible.

Mother Dairy and Quality:-At Mother Dairy every half an hour whatever is produced is tested in the Quality

Control Room. From there, they come to know about the percentage of bacteria

present in the product. The equipment here gives the result within four hours.

At butter production section at dairy is being packed with strong glass walls that

prevent the dust from atmosphere to get inside.

Here only the workers are allowed to go inside the room. Also the product should

not have hand touch ability. No moment is allowed near the machine. Workers are

first trained to be dressed in neat clothes with utmost cleanliness of their hands.

After every two hour, all the machines are checked for maintaining the efficiency

in order to get the same quality of the product regularly.

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PROJECT PROFILE

OBJECTIVE

Find out retailer’s satisfaction of the four Amul’s Product which are Amul milk,

Amul butter milk, Amul paneer, Amul Masti Dahi, Amul Lite Dahi.

Communication

Response

As per order

As per time

WDs services

To simplify the work and get the accurate result the whole population is divided

into five clusters. The other related information about the project is as below:

SAMPLING PLAN

Sample size: 150 per sample

Type of sampling: CLUSTER SAMPLING

Total no of clusters: 5

Instrument used for Data Questionnaire

Collection:

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Reasons for using Cluster sampling:

Here Area sampling, which is a most important form of cluster type sampling, is

used because here Population is divided into internally heterogeneous subgroups

and some of them are randomly selected for the further study. The advantage of

using cluster sampling is as under:

It provides an unbiased estimates of population parameters

Economically more efficient than simple random

Lowest cost per sample, especially with geographical clusters

Easy to do without a population list

DISTRIBUTION OF SAMPLES

In this project there are five samples which are differentiate from each other by a

specific area boundaries which are as below:

1. Kalawad Road

2. Gandhigram

3. Keshri Hind Bridge

4. Bhaktinagar

5. Mavdi Plot

After completing data collection, I tried to present my findings as good as

possible and for that the whole data is firstly bifurcate sample area wise and then

the product wise satisfaction rating is displayed in this report.

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SOURCES OF DATA

PRIMARY DATA: In this project a source of primary data is Questionnaire.

The whole data about the retailer’s satisfaction has been collected and measured

through Questionnaire. The designing of the same is relevant and the sample of

that is at the Annexure, which is attached at the end of the project.

SECONDARY DATA : Websites, Magazines, Books

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SAMPLE AREA : KALAWAD ROAD, UNIVERSITY ROAD

By getting in touch with 20 retailers I have find the below drivan satisfaction of the 4

products of Gopal.

The rating of the satisfation given by the retailers located in above sample area is as

under.

Retailer’s Satisfaction Matrix:

communication

Response

As per Order

As per time

WDs SERVICES

Fully Unsatisfied

NIL 3 NIL NIL NIL

Quite Unsatisfied

1 2 6 NIL NIL

Partial Satisfied

4 6 3 5 5

Quite Satisfied

7 7 4

9 9

Fully Satisfied

8 2 7 6 6

Total out of 20

20 20 20 20 20

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KALAWAD ROAD AND UNIVERSITY ROAD

Analysis :

Tacking a glance to the above data, we can say that the retailers are more satisfied

with the response of the wholeseller & distributors. They provide the goods as per

the order & as per time.

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SAMPLE AREA : GANDHIGRAM

By getting in touch with 25 retailers I have find the below drivan satisfaction of the 4

products of Amul.

The rating of the satisfation given by the retailers located in above sample area is as

under:

Retailer’s Satisfaction Matrix:

COMMUNICATION RESPONSE AS PER ORDER

AS PER TIME

WDs service

sFully Unsatisfied

NIL 3 NIL NIL NIL

Quite Unsatisfied

1 2 5 NIL NIL

Partial Satisfied

9 6 5 5 5

Quite Satisfied

8 10 7 11 11

Fully Satisfied

7 4 8 9 9

Total out of 25

25 25 25 25 25

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GANDHIGRAM

Analysis :

Tacking a glance to the above data, we can say that the retailers are more satisfied

with services of wholesalers and distributors. some time they are not ready to

take responsibility of linkage.

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SAMPLE AREA : KESHRI HIND BRIDGE

By getting in touch with 30 retailers I have find the below drivan satisfaction of the 4

products of Amul.

The rating of the satisfation given by the retailers located in above sample area is as

under:

Retailer’s Satisfaction Matrix:

COMMUNICATION RESPONSE AS PER ORDER

AS PER TIME

WDs service

sFully Unsatisfied

NIL 3 NIL NIL NIL

Quite Unsatisfied

3 5 NIL NIL NIL

Partial Satisfied

7 8 7 9 5

Quite Satisfied

12 9 15 14 16

Fully Satisfied

8 5 8 7 9

Total out of 30

30 30 30 30 30

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KESHRI HIND BRIDGE

Analysis :

Tacking a glance to the above data, we can say that the retailers are more satisfied

with the communication and serviced provided by WDs. and retailers also

satisfied with delivery time.

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SAMPLE AREA : BHAKTI NAGAR CIRCLE

By getting in touch with 25 retailers I have find the below drivan satisfaction of the 4

products of Amul.

The rating of the satisfation given by the retailers located in above sample area is as

under:

Retailer’s Satisfaction Matrix:

COMMUNICATION RESPONSE AS PER ORDER

AS PER TIME

WDS service

s Fully Unsatisfied

NIL 3 NIL NIL NIL

Quite Unsatisfied

1 4 2 1 1

Partial Satisfied

3 7 6 5 5

Quite Satisfied

13 8 10 11 11

Fully Satisfied

8 3 7 8 8

Total out of 25

25 25 25 25 25

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BHAKTINAGAR CIRCLE

Analysis :

Tacking a glance to the above data, we can say that the retailers are more satisfied

with the communication skills and service provided by WDs. They also provided

goods as per order and time.

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SAMPLE AREA : MAVDI PLOT

By getting in touch with 50 retailers I have find the below drivan satisfaction of the 4

products of Amul.

The rating of the satisfation given by the retailers located in above sample area is as

under :

Retailer’s Satisfaction Matrix:

COMMUNICATION RESPONSE AS PER ORDER

AS PER TIME

WDs service

sFully Unsatisfied

NIL 3 NIL NIL NIL

Quite Unsatisfied

4 3 5 NIL NIL

Partial Satisfied

12 21 15 12 12

Quite Satisfied

20 16 17 20 20

Fully Satisfied

14 7 13 18 18

Total out of 50

50 50 50 50 50

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MAVDI PLOT

Analysis :

Tacking a glance to the above data, we can say that the retailers are more satisfied

with the WDs services, and their responsibility.

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Suggestion to marketing department

1) The Company should adopt scientific ways to allocate and manage the

resources for advertisements and sales promotion so as to gain optimum

results

2) Amul should design it’s own marketing research system. It should hire people

to carry out systematic market research and surveying the following areas.

- To know consumer taste, preferences and their consumption and buying

pattern.

- Before launching new products in the market.

- Retailers and distributors survey from time to time to know competitors

tricks and practices as well as the satisfaction level.

3) Instead of advertising on national level, one more option that the company

should try for promotion of its brands is to give adds on local cable TV

network.

4) There should be no gaps in products like more flavors, more scheme,

reasonable price etc to compete the local players as well as competitors.

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CONCLUSION

Our overall impression about the unit and GCMMF is inexpressible. In this report

after analyzing we can conclude that “GCMMF” is progressive very rapidly in the

Indian market. The performance of the unit is very impressive in the past year.

Though there is tough competition with Britannia, Nestle, Vadilal, Have more etc.

It has shown a good progress. Amul now days become Asia”s no.1 milk selling

brand.

In present Amul is become popular as The Taste of India. 50 years is a very big

time for any brand to establish itself successfully in the market. This gives us

golden opportunity to know all functional area of amul. We know about the

products of GCMMF, their quality, packaging and price. The product of GCMMF

demanded at very large scale because of their very reasonable price.

Marketing of GCMMF made it so popular. Under the guidance of Dr. Vergees

Kurein Mother Dairy is growing day by day.

Hope and wise that the success story of AMUL going forever and other industries

should take inspiration from this successfully story.

We are sure and confident that successor capable and innovative my best wishes

for future success of the industry is an important part of our visit.

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AMUL(MOTHER DAIRY GANDHINAGAR –A UNIT OF GCMMF).

QUESTIONNAIRE

DEALER’S SATISFACTION

PERSONAL DETAIL

A. Name of Retailer :

B. Name of the out late :

C. Address & Phone No. :

D. Types of Retailer :- General store- Amul store- Dairy farm- Other

E. Which amongst the below stated RAJKOT Dairy’s Products you are currently sales :

- Amul milk - Amul ghee- Amul butter milk- Amul Paneer

Ranks For

1 Fully Unsatisfied

2 Quite Unsatisfied

3 Partial Satisfied

4 Quite Satisfied

5 Fully Satisfied

(Give Rank Below 1 to 5 )

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1. How we are communicating with you? 1 2 3 4 5

2. Can we provide goods and information? As per your need? 1 2 3 4 5

3. Can we give your queries answer? Immediately & satisfactory? 1 2 3 4 5

4. Can we give positive response to your Question and suggestion? 1 2 3 4 5

5. Can we provide our products with Standard quality? 1 2 3 4 5

6. Can we provide our products as? Per your order? 1 2 3 4 5

7. Can we provide our products on time? 1 2 3 4 5

8. Agency / Distributor’s service 1 2 3 4 5

9. Promotional activities 1 2 3 4 5

10. Will you believe that we are working Co-ordinatingly with you? 1 2 3 4 5

11. If there is any competitor near by your store & which type of product they sales?

12. Customer’s response :

13. Suggestion for co. :

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SUGGESTIONS

MAKE SOUND MARKETING DEPARTMENT

GIVE IMPORTANCE TO THE DISTRIBUTOR AS WELL

AS DEALERS COMPLAINTS

KEEP WATCH ON RIVALS ACTIVITY

INCREASE ADVERTISENMENT BUDGET

INCREASE AVAILIBILITY OF PRODUCT

DIFFERNCIATE BOTH LOOSE MILK AND POUCH

MILK

INCREASE MARKETING STAFF

AVOID LATE VEHICLE PROBLEMS

INCREASE AREA DESTRIBUTOR AND MARGIN

INTRODUCE SALES PROMOTION SCHEME IN

COMPETITIORS AREA

PLACE OF PURCHASE MATERIAL SHOULD BE

PROVIDE

TIMELY VISIT OF MARKET BY MARKETING

MANAGER

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BIBLIOGRAPHY

1. Books:

Kotlar Philip “Marketing Management”, Published by Pearson Education, 10th edition

K. Aswathappa, Human Resource And Personal Management 3rd edition C R Kothari, Research Methology

2. Websites:

www.nddb.com www.amul.com www.emediaplan.com/admunch/Brands/amul.asp

3. Search Engine

www.google.com

www.msn.com

www.yahoo.com

4. Magazines:

Review of Dairy Industry

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