DEMAND ESTIMATION OF DAIRY PRODUCTS AND THE STUDY OF DISTRIBUTION NETWORK OF GCMMF (AMUL) - CHENNAI

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DEMAND ESTIMATION OF DAIRY PRODUCTS AND THE

STUDY OF DISTRIBUTION NETWORK OF GCMMF (AMUL) -

CHENNAI

Summer project report submitted in partial fulfillment of the requirements for the post

graduate diploma in management

By Ramaprabhu.R.P

(Roll No: PG 2009-52)

Supervisors:

1. Mr. Apurava Suryadeo

2. Dr. Gopal Iyengar

3. Prof. E. Anand

Kirloskar Institute of Advanced Management Studies, Harihar, Karnataka

2009-10



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ACKNOWLEDGEMENTS

Help and encouragement have come from a number of valued sources for completing my project. I would like to thank my company guide Mr. Apurava Suryadeo, branch manager

GCMMF, Chennai for his constant supervision and guidance during the period of internship.

I would like to extend my gratitude for the distributors of Amul, who are responsible to

deliver the products in areas where I worked in Chennai, Mr. Praveen Kumar of Lakshmi

agencies, Mr. Ranjith of Lakshmi Narasimha agencies and Mr. Daniel of T.J Marketing. They

always made sure that I was assisted by one of their employees for locating the Amul retail shops

and to find my way through the intricate network of lanes, gullies and roads of Chennai. My

work of conducting surveys was simplified by their employees. My classmate Adhithya.B

deserves my token of appreciation for working along with me during surveys and for all the brainstorming sessions with him, which helped me a lot in my project.

I would like to thank my college Kirloskar Institute of Advanced Management Studies,

Harihar for getting me the summer internship project in a reputed company like GCMMF,

Chennai. Eventually, I had got a great exposure by working here in the south zonal office and in

a metropolitan city like Chennai.

Finally I am thankful to my project guides Dr. Gopal Iyengar and Professor. E. Anand for

their time to time advice and for their efforts to scrutinize and refine my project. They have

corrected my mistakes and guided me properly to transform all my collected data into

meaningful information.



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TABLE OF CONTENTS

S.NO PARTICULARS PAGE NO.

1 EXECUTIVE SUMMARY 4

2 INTRODUCTION 6

3 OBJECTIVES OF THE STUDY 7

4 HISTORICAL BACKGROUND OF GCMMF 7

5 METHODOLOGY FOLLOWED 12

6 TABULATIONS 14

7 FINDINGS 16

8 RECOMMENDATIONS 25

9 SUMMARY 31

10 LIMITATIONS OF THE STUDY 32

11 SCOPE FOR FUTURE IMPROVEMENTS 32

12 APPENDIX 33

13 BIBLIOGRAPHY 38



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EXECUTIVE SUMMARY

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat

which aims to provide remunerative returns to the farmers and also serve the interest of

consumers by providing quality products which are good value for money.

CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned its

highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF. In June 2009

Amul was ranked No.1 dairy product in Asia pacific region.

Members: 13 district cooperative milk producers'

Union

No. of Producer Members: 2.79 million

No. of Village Societies: 13,328

Total Milk handling capacity: 11.22 million litres per day

Milk collection (Total - 2008-09): 3.05 billion litres

Milk collection (Daily Average 2008-

09):

8.4 million litres

Milk Drying Capacity: 626 Mts. per day

Cattlefeed manufacturing Capacity: 3500 Mts per day

Sales Turnover (2008-09): Rs. 8000 crore

Milk and milk products are an integral part Indian cuisine. Milk is consumed as such or

in form of tea, coffee or health drinks at least once a day in an Indian family, while dairy

products derived from milk like butter, cheese, ghee etc., are used as ingredients in Indian food.GCMMF caters to this market of dairy products, under the umbrella brand Amul along with

edible oil under the brand name Dhara and processed fruits and vegetable food business under

the brand name Safal. The demand for these products differs with different products of Amul.

The demand pattern for milk, butter and ghee in Indian market is trend, where the

demand increases year on year. The demand pattern for ice creams, flavored milk and butter milk

http://www.amul.com/photogal/pg260608.html






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is seasonal, which fluctuates due to the weather, holiday or particular events that take place on a

seasonal basis. While the demand pattern for other products like dark chocolates, milk sweets

and condensed milk is random variation where many factors play a vital role in affecting the

demand during specific periods on a random basis. For example the demand for milk sweets

increases exponentially during the festival times and a large part of milk procured by GCMMF is

utilized in manufacturing milk sweets during those times to meet the demand. Thus to meet the

varying demand of various dairy products it is necessary to estimate the current demand and to

forecast it for the upcoming quarters.

This project is to estimate the demand for Amul dairy products in Chennai by conducting

surveys for the retailers of Amul products. In total there are seventeen distributors for Amul in

Chennai out of which ten are for dairy products and seven are for ice creams. Survey was

conducted in the areas of three distributors in Chennai for two months April and May of 2010.

Demand was estimated by quantifying the amount of dairy products each retailer sells in a

month. Apart from this to get a customer end perspective, customers of Amul were also surveyed

in these areas and the amounts have been quantified.

By interacting with the retailers in various places of Chennai the glitches in the

distribution network of Amul was also found out. Various problems faced by the retailers due to

certain miscommunications in the delivery system have been identified and the losses incurred

due to these problems have been quantified. Along with this the competitor‘s practices and the

industry best practices were also identified. This gives a broad picture of where Amul stands in

the terms of competition and how it can improve its distribution efficiency.

On the whole the demand for dairy products has been estimated and recommendations for improving the efficiency of the distribution have been given in this project. This information and

the primary data collected by means of survey could be very useful for Amul in the forthcoming

quarters of the financial year as they have been collected through one on one interaction by

visiting the market place in person and the source is highly reliable. Ways of implementing the

recommendations and the consequences have also been discussed in the project which will give a

clear idea for GCMMF to implement the same.



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INTRODUCTION

In India one could start the day by boiling (as is the traditional Indian practice) one of thedifferent varieties of liquid milk supplied in pouches and making one‘s morning tea or coff ee. If

one preferred to use creamer, one could reach for the Amulya creamer on the shelf. For

breakfast, butter the toasts with Amul regular butter or, if you are calorie conscious, with Amul

lite butter. Drink a cup of Amul chocolate milk. Make sandwiches with one of the different

varieties of Amul cheese and take them to the office; add Amul ghee (clarified butter) to one‘s

dishes for lunch; cook your lunch with a curry containing Amul paneer or cottage cheese and

have a sweet dish made from Amul gulab jamun mix. If it is a hot day, have an Amul ice cream;

and when you return home after the office; relax with tea or coffee, whitened with Amulya

creamer or Amul milk. If you are a pizza fan, bake a pizza and top it with Amul mozzarella

cheese, and finally retire for the day with a glass of warm Amul milk. In India, Amul was notmerely one of the most well-known brands, way ahead of coca cola or pepsi, and even ahead of

age old brands such as dalda, lifebuoy and lux, but a lifestyle range of products, consumed in

some form or other by a large number of Indians of different income and social strata.

GCMMF was the sole marketing agency for the products produced by the different milk

co-operative member societies of the state of Gujarat and for those of other states marketing their

products under the Amul brand name.

There was no doubt that from the time of its inception in 1973, GCMMF was a great

success story, as indeed was the co-operative movement in the milk sector initiated and carried togreat heights by the ― milkman of India‖ Dr. Verghese Kurien. Currently GCMMF has five zonal

offices and 48 sales offices spread across India to market its dairy products throughout the

country.

India being a land of varied cultures and people of different social strata, there is a huge

difference in the lifestyle of its citizens. Hence the consumption of dairy products differs with

every individual‘s lifestyle. Chennai being the third largest metropolitan city in terms of

population in India has the same varied culture of India as a whole. Chennai, the capital of

Tamilnadu covers an area of 609 sq.km and has around 75, 45,000 people1

which turns out to be

the most densely populated city (11,500 per sq.km) after Kolkata. For every company it ismandatory to know the potential demand for its products and its market share along with its

competitor‘s status in every major city like Chennai where GCMMF has its south zonal office.

This is needed for the company to progress in future and to identify new scopes for

improvement. Chennai in total has a workforce of 1.5 million and the total personal income is

1 “Demography (PDF) Second Master Plan – II” by Chennai Metropolitan Authority pp 1-5,1-10.



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Rs. 12, 488.83 crore. The literacy rate is at 80.14% which is far more than India‘s average of

64%. So Chennai has a good amount of workforce who is majorly literate and earning around

10.9% of Tamilnadu‘s total personal income. GCMMF has a huge scope of improving its market

share as Amul can leverage its brand equity to sell to its loyal and earning customers. Now, to

meet the demand efficiently every company should have an excellent supply chain management

system. It is necessary to be aware about its problems in supply chain and also be updated with

the industry best practices followed by its competitors.

OBJECTIVES OF THE STUDY

To estimate the demand of dairy products in Chennai by surveying retailers and

consumers

To know the problems in the distribution network of Amul products

To quantify the losses incurred by the retailers and GCMMF due to the inefficiency of

the distribution network

To identify the industry best practices and competitor‘s methods to implement them

To give recommendations to Amul in order to implement and thus increase its market

share

HISTORICAL BACKGROUND OF GCMMF

In the 1940s, in the district of kaira in the state of Gujarat, India, a unique experiment was

conducted that became one of the most celebrated success stories of India. At that time, in

Gujarat, milk was procured from farmers by private milk contractors and by private company,

Polson‘s Dairy in Anand, the headquarters of the district. The company had a virtual stranglehold

on the farmers, deciding the prices both of the procured as well as the sold milk.



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In 1946, Mr. Tribhuvandas Patel, a local farmer, freedom fighter and social worker,

organized the farmers into co-operatives. These co-operatives would procure milk from farmers,

process the milk and sell it in Gujarat and in Bombay. In 1949, a dairy engineer, named

Dr. Verghese Kurien, who had just completed his studies in dairy engineering in the U.S.A, came

to India and was posted by the Government of India to a job at the dairy research institute at

Anand. He took interests in Kaira District Co-operative Milk Producers Union Limited (that was

the name of the co-operative registered) and soon extended to the larger sociological issues

involved in organizing the farmers into co-operatives and running these co-operatives

effectively.

At first, the main activity was collection and processing of the milk brought everyday by

the member farmers to the local office of the co-operative. It soon realized that it was not enough

to merely act as the collection and selling agents for the farmers. A variety of support services

were required to enable the farmers to continue selling their milk of adequate quality and to

avoid disasters such as death of their cattle. Co-operatives were expanded to cover more and

more areas of Gujarat and in each area, a network of local village level co-operatives and district

level co-operatives were formed on a pattern similar to that at Anand (the so called Anand

pattern). Kaira District Co-operative Milk Producers Union became better known by the brand

name of the products marketed by it (Amul) than by the name of the co-operative itself. Amul

means priceless in Sanskrit.

In 1954, Kaira District Co-operative Milk Producers Union built a plant to convert

surplus milk produced in the cold seasons into milk powder and butter 2. In 1958, a plant to

manufacture cheese and one to produce baby food were added. Subsequent years saw the

addition of more plants to produce different products. In 1973, the milk societies/ district level

unions decided to set up a marketing agency to market their products. This agency was the

GCMMF (Gujarat Co-operative Milk Marketing Federation). It was registered as a co-operative

society on 9 July 19733

. It had, as its members (ordinary shareholders), the district level milk

unions. No individual could become a shareholder in GCMMF. Starting from a daily

procurement of 250 liters per day in 1946, GCMMF had become a milk giant with the milk

procurement at about 4 million liters a day by 1999 with 12 dairy plants.

2 This was a feature of India‘s dairy industry. The milk output of cows varied heavily during the seasons, with the winter season

leading to heavy oversupply of milk. This naturally led to depressed prices, unless the milk could be converted into other

products that could be stored for a long time.

3 An organization registered as a co-operative society had certain restrictions on its operations.



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The co-operative system formed under the so-called Anand pattern has a three-tiered

structure (Exhibit 1). At the base is the village level dairy co-operative society. This is composed

of the milk producers, mostly residents of the same area, who had joined the co-operative

society. A managing committee, of about eight to nine members is elected, one of whom would

be elected as the chairperson. Care is taken to ensure that these meetings are held, and seen to be

held, in an open and transparent manner. The next level is at the district, and this co-operative

(called unions) had, as its members, the village dairy co-operative societies within the district,

represented by the chairpersons of the village level societies.

For this co-operative, a Board of Directors, consisting of 12 persons, was elected from

among the members (i.e., the chairpersons of the village level co-operatives), with its own chief

executive, called the Managing Director. The third level is at the state, where the co-operative

(GCMMF in Gujarat and other states) is formed with district level milk unions (and certain other

milk unions from other states) as members. The state level organization was called the

Federation consisted of the Chairpersons of the district level co-operatives as the members, and

in addition, the following ex officio members:

1. The registrar of co-operatives of the state concerned.

2. A representative, from the National Dairy Development Board (NDDB), which was a

body created by the Government of India to replicate the Anand pattern in the other

states of India.

3. One nominated technical expert.

4. The Managing Director (CEO) of the State level federation

As on April 2000, there were 10,800 village level co-operatives in Gujarat under the

GCMMF umbrella with 2.1 million milk producers. Out of 25 districts in Gujarat, there were

district level unions in 12 districts4

A pattern similar to the Anand pattern has been built in other states in India also. This

was done under a program launched by the Government of India, under the title ―Operation

Flood‖. The operation was co-ordinate by the National Dairy Development Board (NDDB), a

body formed by the Government of India with this objective. Dr. Kurien was the Chairperson of

the NDDB and the main moving force behind the program. As on April 2000, there were 22 state

4 Some of the districts that had no district level unions were those formed through reorganization of existing districts at different

points of time



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federations in India, with 170 district level unions, 72,774 village level societies and 9.31 million

milk producer members in the different states.

Each of the state level federations marketed their own brands. Amul was the brand

marketed by GCMMF. Vijaya was the brand name marketed by the federation in the state of Andhra Pradesh. Thus GCMMF could market its Amul brand butter in Andhra Pradesh

competing with Vijaya butter. It was believed by the officials of the National Dairy Development

Board that such competition was healthy and would curb monopolistic tendencies.

EXHIBIT 1

The Anand Pattern

State Marketing Federation

All dairies in a state (GCMMF)

22 state federations in India

District Milk Processing Unions

Every district in the state

12 district unions in Gujarat

170 unions all over India

Village Co-operative Societies

All villages in a district

72,774 villages in India

Milk Producers

All milk producers in a village

2.1 million In Gujarat

9.31 million In India.



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ORGANIZATION STRUCTURE OF GCMMF

(See Exhibit 4)

GCMMF is a lean organization, which their executives believed led to a cost advantage.

At its headquarters in the town of Anand, three general managers and two assistant General

Managers assist the managing director. The three general managers look after the functions of

Marketing, Human resource development (HRD) and quality assurance. The general manager

(marketing) is in charge of the whole marketing operation of the dairy products, liquid milk and

ice cream. This general manager is assisted by one assistant general manager (marketing, dairy

products)4

and managers (commercial), (exports) and (liquid milk). The general manager (HRD)

also looks after edible oils, administration, legal matters and new opportunities. The whole

country was divided into five zones, each headed by a zonal manager responsible for the sales of all the products under his zone. They reported to the managing director, but functionally each

reported also to the various assistant general managers/ general managers at the headquarters.

Under the zonal managers were the branch managers. Generally there are three product managers

in each branch reporting to the branch manager: one each for the edible oil, dairy products and

ice cream. They were assisted by sales officers and field salespersons. There were 48 sales

offices spread over the country (of which only two are in Gujarat). The entire country had been

represented in this structure. GCMMF has one overseas office, at Dubai.

OBJECTIVES AND PHILOSOPHY OF GCMMF:

The main stakeholders of GCMMF are the farmer members for whose welfare, it exists.

Unlike other organizations, the objective is not to maximize its profit but it is to give the best

price for the farmers for their milk. It is restricted, by bye-laws, to giving a maximum of 12

percent on the paid share capital as the dividend.

GCMMF has declared, as its business philosophy, the following5

To serve the interests of milk producers

To provide quality products that offer the best value to consumers for money spent.

The biggest strength of GCMMF is the trust it has created in the minds of its consumers

regarding the quality of its products. In India, where trust was hard to come by, this could

provide a central anchor for GCMMF‘s future business plans.

5 Asian Case Research Journal, Vol.6, Issue 2, 205-239 (2002)



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Exhibit 4

Organization Structure of GCMMF

METHODOLOGY FOLLOWED

Research Design:

GCMMF Chennai is the marketing company for Amul, the apex brand of Kaira District

Co-operative Milk Producers Union. It has 17 distributors to cover the 609 Sq.Km wide Chennaicity to reach the 75, 45,000 people of the city. Out of which 7 distributors take care of only ice-

cream distribution while the rest 10 are involved in dairy products distribution. To estimate the

demand for dairy products in Chennai is to exactly find the demand prevalent at present. The

best suited methodology for this is Descriptive Research which has been done through surveys

and fact-finding enquiries of different kinds. It is also called Ex post facto research; the main

characteristic of descriptive research is that the researcher has no control over the variables; and



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he can only report what has happened or what is happening and can be used to measure such

items as demand for dairy products. Ex post facto studies also include attempts by researchers to

discover causes even when they cannot control the variables.

The research problem is to estimate the demand for dairy products in Chennai city andthe research design that has been followed is Description. The means of obtaining the

information is through survey of Amul retailers and consumers of dairy products. Survey was

conducted to few of the retailers in three major areas in Chennai viz. Ramapuram, Tambaram

and Adyar as these are the major areas where the demand for the dairy products is consistently

increasing year-on-year, mainly due to the rise of new IT majors and other companies from

various industries. These areas have seen a surge of increase in households on account of many

young working professionals settling here. They find it comfortable and easy to find houses and

the realtors are building new apartments and are expanding the area limits. The survey was

conducted in the months of April and May.

Sample design:

The sample design followed for the project was Deliberate Sampling which is a type of

non-probability sampling where each element of the population does not have a known

probability of being included in the sample. The survey was conducted for the retailers and

consumers of the above mentioned areas of Chennai city as the population in this area is a good

representation of the population mix in Chennai city with people from different social strata and

different lifestyle which influences the demand of dairy products. Three distributors Lakshmiagencies of Ramapuram; TJ Marketing of Adyar and Lakshmi Narasimha agencies of Tambaram

were the chosen distributors. The demand for the dairy products is consistently increasing year-

on-year, mainly due to the rise of new IT majors and other companies from various industries. 60

retailers and 20 consumers from each of these beats were surveyed. On the whole 180 retailers

and 60 consumers were surveyed. Care was taken to include varied consumers of different age,

social status, economic class etc.

Data Collection:

Primary data can be collected through experiment or through survey. Here data was

collected by survey through schedules. I was the enumerator and was provided with schedules

from GCMMF on day one. The work to be done was explained clearly by the project guide and

data was collected by filling up the schedules on the basis of replies given by respondents, since

many retailers were not so proficient with English, the language used in the schedule, it required



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me to translate the questions in local language, Tamil without distorting the meaning of the

questions. During the execution period the data collected and the progress of the project was

monitored time and again by the company guide. The data collected were fed in Microsoft Excel

sheets for calculating the demand for the dairy products and the potential losses incurred by

GCMMF in terms of quantity and money.

TABULATIONS

DEMAND ANALYSIS

Amul Retailer'sDemand

Amul ConsumerDemand

The Retailer end‘s demand and consumer end‘s demand for different products of Amul

products namely Liquid milk, Curd, Paneer, Milk powder, Ghee, Cheese, Condensed Milk, Milk

Sweets, Flavored Milk, Butter Milk and Butter is given in the Microsoft Excel sheets – Amul

Retailer‘s Demand and Amul Consumer Demand repectively.

CALCULATIONS:

In retailer‘s demand the work sheet named Total gives the total demand of dairy products of

retailers of Chennai.

Sample size provides the number of retailers out of 180 retailers (60 retailers/ distributor)who stock those products

Total retail universe – is the number of shops in Chennai which sell those products



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In Consumer‘s demand

Sample size gives the number of consumers out of 60 consumers who consume the

product

Total population of Chennai is 75, 45,000 out of which only 75% (56, 58,750) of them

consume dairy products regularly

The Chennai population can be divided into three categories based on income level

Total Chennai Population 75, 45,000

Total Population who consume dairy

products regularly

5658750

High Income Population (Annual Income > Rs. 10, 00,000) 707340

Mid - income Population (Rs.1, 50,000 < Annual Income < Rs.10, 00,000) 2724520

Low income Population (Annual Income < Rs. 1, 50,000) 2226890

During the survey it was found that:

Milk, Curd, Milk Powder, Ghee and Butter Milk were consumed by all class of consumers

Paneer, Condensed Milk, Flavored Milk and Butter were majorly consumed by middleand high income groups

Cheese and Milk sweets were majorly consumed by high income group though there wasa substantial amount of middle income group consumers too.

The demand has been estimated with the above findings

The deviation in values between retailers and consumers demand may be due to the fact

that people from other income groups may also buy those products.



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FINDINGS

FIGURE I: DEMAND OF VARIOUS PRODUCTS IN TERMS OF WEIGHT

FIGURE II: POTENTIAL SALES REVENUE FROM VARIOUS PRODUCTS IN TERMS OF

RS.LAKHS

LIQUID MILK

CURD/DAHI

PANEER

MILK POWDER

GHEE

CHEESECONDENSED MILK

FLAVOURED MILK

BUTTERMILK

BUTTER



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FIGURE III: NUMBER OF RETAILERS STOCKING VARIOUS PRODUCTS

ANALYZING FIGURE I, II, III:

LIQUID MILK

CURD/DAHI

PANEERMILK POWDER

GHEE

CHEESE

CONDENSED MILK

FLAVOURED MILK

BUTTERMILK

BUTTER

LIQUID MILK

CURD/DAHI

PANEER

MILK POWDER

GHEE

CHEESE

CONDENSED MILK

FLAVOURED MILK

BUTTERMILK

BUTTER



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From fig. I it is evident that Liquid milk has the highest demand in terms of volume of sale (70%) followed by curd (12%) and Ghee (5%). The least ones are milk powder (2%)

and butter (1%).

From fig. II it is seen that in terms of potential sales revenue Liquid milk has the larger part of the pie (34%), followed by Ghee (20%) and curd (16%). The least ones in terms

of volume follow the lead, whereby milk powder can contribute (8%) and butter (6%) of

the potential sales.

This discrepancy between the volume of demand and potential revenue is due to price of the products. For eg:1 liter of liquid milk is just rs.26 but one liter of ghee is around

rs.200

From fig. III we get the preference of the retailers to stock various products. Here Milk

Powder has the highest preference (14%), followed by Ghee (13%) and Butter (12%).

Curd (10%) and Liquid Milk (8%) trails behind them

From the above points it can be suggested that Ghee needs more attention as it is the cashcow product for Amul in Chennai. Its demand in terms of volume is less but its potential sales

revenue is high and is preferred by most of the retailers as Amul Ghee is priced relatively low

and is preferred by the customers for the quality it delivers. Amulya and Sagar are the most preferred brands of Milk Powder by retailers compared to other products of Amul and it enjoys a

better market share than its competitors like Everyday by Nestle etc. GCMMF has already

utilized this opportunity and is tapping the potential market for more revenues. Like Ghee the

small retail packs of Amulya has a huge demand. Customers from lower social strata prefer the

small retail packs of milk powder than liquid milk, which needs to be treated to keep it fresh.

Followed by these two products it is preferable for GCMMF to concentrate on curd

which is also a potential revenue generator and preferred by retailers. Major competitor in thismarket is Nestle and Britannia. Customers of Amul curd are from the middle class and upper middle class. The lower class people do not prefer branded curd packs since they are relatively

expensive. So the target customer for Amul, Nestle and Britannia are the same class of people.

The only glitch Amul faces in this market is delivery of fresh stocks. The consumer tends to pick

up Nestle curd after comparing Amul curd‘s date of manufacturing.

POTENTIAL LOSSES INCURRED



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Amul- LossesQuantified

Losses incurred in the following PRODUCT‘s are quantified: Butter, Cheese, Flavored Milk,Milk Powder, Curd and Buttermilk/ Lassie – in the Microsoft Excel Sheet Amul Losses

Quantified.

GCMMF incurs loss in potential business majorly due to three reasons:

Delay in supply and fulfilling the entire order

Damaged and expired products

Inability to meet unplanned demands of the retailers

The salesperson of the distributors works in a one week cycle i.e. order is taken from the

retailer on the first day and goods are delivered on the second day. The salesperson covers all the

shops under his area within a week‘s time and the cycle continues. Some retailers face problemslike delay in supply; supply of damaged or expired products and the inability to meet unplanned

demands at least once a month due to which they place lesser orders which is much below their

potential to sell within a week. To be on safer side, retailers appreciate this practice in order to

minimize their losses.

When the order placed is less they are able to get their entire order, the number of

damaged or expired product which they tend to receive is minimal and they do not mind their

inability to meet unplanned demands which occurs during festival seasons as they suffice thedemand with competitor‘s products.

Potential loss for GCMMF in sale of Amul products**

(Loss in one week in the area of three distributors)

Order

met*

properly

Loss due to*

Delayed

supply (a)

Loss due to*

Damaged /

Expired (b)

Loss due to*

Unplanned

demand (c)

Total sales*

lost (a+b+c)

Total amount lost

in a week by 3

distributors (Rs.)

Butter 82.22% 1.44% 16.33% 0% 17.78% 49056



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Cheese 66.75% 5.79% 24.67% 2.78% 33.24% 26271

Flavored Milk 54.61% 2.00% 42.90% 0.47% 45.38% 25118

Milk Powder 68.88% 5.82% 22.44% 2.84% 31.11% 117442

Curd 52.44% 2.08% 45.48% 0% 47.56% 25956

Butter Milk 57.88% 2.53% 39.58% 0% 42.11% 6632

TOTAL Rs. 250475

*As a percentage of sales potential.

**Monetary loss is given in the Microsoft Excel sheet – Amul Losses Quantified.

FIGURE IV: COMPARISON OF POTENTIAL LOSSES IN VARIOUS PRODUCTs

Loss Due to Damaged / Expired Products:

Butter

Cheese

Flavored Milk

Milk Powder

Curd

Butter Milk



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In the losses thus quantified it is obvious that the loss due to damaged / expired products is

huge. This happens in two stages:

STAGE I:

The retailer is supplied with damaged product for eg: the Amulya, Sagar or 100gm Butter

cases are slightly torn. In case of the milk powder it happens during handling and transportation

while in butter the case is different.

This problem is prevalent in 100gm Butter packs which comes in carton cases. They are

stored in the cooler room when it is with the distributor. The delivery vans are loaded with these

butter packs at around 10:30 am in the morning and it moves out for delivery. Chennai is a city

well known for its hot and humid climate and the delivery vans have a steel body. The steel body

gets heated up immediately when exposed to sun and it also retains the heat. So the butter tends

to melt soon. As it melts it soaks the cartons and the wet cartons tear off before delivery. Though

the delivery men take care to deliver butter orders as early as possible few of them gets damaged

in the evening at around 5:00 pm. So the retailers who are slightly far away from the distributors

area have more frequency of getting damaged butter packs. They also get delivery only once a

week as they are located at remote places and hence their order would be in bulk to suffice for

the entire weeks demand and this adds up to the frequency of getting damaged products.

STAGE II:

Dairy products have a maximum shelf life of only 6 months. Amul has all its manufacturing

units in North and Central India. It has its stock point at Alappakkam in Chennai. By the time the

products reach the stock point; then the distributor and then the retailer the stocks become a

month or two old. Sometimes certain stocks of Amul tend to remain unsold for some days.

Customers, as observed during survey, check for the expiry dates carefully before buying a

product, and they tend to reject those products which are above to expire in a month. So these

left over stocks though not expired tends to remain unsold till it expires. GCMMF does not have

the practice of taking return of the unsold and expired products as they insist the retailers to stock

exactly to their demand. Ultimately the retailer suffers the loss and he is compelled to dispose the

products. There are instances where the retailer has thrown out expired milk powder and paneer packs before the municipal authorities had visited the shop for inspection. This has forced the

retailers to stock below their actual demand levels, to be on safer side. They are not ready to

incur huge losses on unsold products instead they suffice the extra demand by convincing the

customers to buy the competitor‘s products. Ultimately Amul not only loses its market share but

also paves way for the competitor‘s brand to eat away its share and hence they gain more.



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Rarely do the retailers get expired products on delivery; this is prevalent in products which

has only three months shelf life like buttermilk. The retailers usually do not check the products

for expiry dates when they are delivered as they will be busy attending their customers. But

unfortunately, this has happened to certain retailers in certain products and they have gone to the

extent of not stocking those products like paneer, cheese, dark chocolates and curd.

Loss Due to Delayed Supply:

Various product‘s of Amul has varied amounts of demand during various seasons in a

year. Ghee, milk powder, curd has a constant demand but products like buttermilk and flavored

milk have seasonal demand. The demand for flavored milk shot up during the period of survey as

it was summer in Chennai. Taking the case of flavored milk, it has various flavours like elaichi,

kesar, rose and chocolate and they come either in tetra packs or in glass bottles. It also has

premium variant called Amul kool café which comes in cans and it is priced slightly high. So

under one PRODUCT of flavored milk the customer has seven different variants to satisfy his

thirst. Now to predict the demand for each and every variant is more difficult and even the

consumer might not be able to predict his flavor of demand at different points of time.

Ultimately the retailer and hence the distributor runs out of stock of a particular flavor

and even if the retailer places an order he will not be able to get till next week. In this case he

loses his customers or Amul losses its customer to its competitors either ways it is loss for

GCMMF.

Sometimes distributor may be having the required stock but will not be able to deliver it

has he cannot break the cycle of delivery within a week and hence asks the retailer himself to

collect the required stock in person. If the retailer is close by he spends for the transportation and

gets his required stock else he loses his customers.

They are times when the distributor is not able to fulfill the entire demand of a retailer in

certain products as the demand peaks up all of a sudden and it is unforeseen. So in that case the

distributor supplies only fewer stocks to the retailers to make sure that all the retailers in his area

get at least few pieces of the products instead of having none.

GENERAL DISSATISFYING FACTORS

No returns:



23

In the retail industry it is a general practice to take return of the unsold and damaged

pieces of the product from the retailers. Companies like Nestle, Britannia and Heritage the

competitors of Amul has the practice of taking returns in order to minimize the loss incurred by

the retailers, and they are the money is refunded. For example Nestle takes return of the unsold,

expired or damaged curd packs and refunds. The retailer buys Nestle curd at 4% VAT but when

he is refunded he is not reimbursed with the VAT amount but the retailer is satisfied with

whatever he has got as refund as his losses are minimized. They employ separate personnel, who

visit the retailers once a month, to take care of returns.

Distributors 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). But this is not the case with local retailers. GCMMF does not take returns

of the product as it emphasis the retailers to stock only to their anticipated demand and not in

excess. In case the products are unsold the retailer suffers losses. This has pushed certain

retailers to stock below their potential demand and some retailers who are not able to forecast

their demand properly have even stopped stocking certain PRODUCT‘s like milk powder.

Stocks not delivered on credit:

The employee of the distributor who delivers the dairy products to the retailer‘s shops

collects the amount to be paid, after producing the bill for the delivered items, immediately after

delivery. Sometimes the store manager or the purchase manager who is responsible for the

payment fails to be present or is unable to pay the deliverer immediately and since the

distributors does not deliver the goods on credit the deliverer waits till he can collect the money

and then leaves the shop. This delays his work and also dissatisfies the retailers.

There are small retailers who pay out of the day‘s earnings so in case at the time of

delivery if the retailer has not earned the amount to be paid he is not in a position to pay or

makes the deliverer wait till he arranges for money. The major reason for the retailers to demand

the products on credit is that. Order is taken on a particular day and goods are delivered on the

very next day. So either the retailer forgets to make arrangements for the money or is unable to

pay the distributor the next day. This is not the scenario with Nestle or Britannia. They give

either bill to bill credit or 15 days credit on their product line.

Low Margin:

The margin provided by Amul is relatively low when compared to that of its competitors.

This is mainly due to the objectives and business philosophy of GCMMF. It believes in quality



24

delivered to its customers and delivers the best value for the money spent. Amul products are

inexpensive when compared with the quality it delivers and so it has earned the trust of its

customers over the years. This is the central anchor for GCMMF‘s future business plans. So

eventually the retailers get a relatively low margin (around 8% - 12%). The competitors have a

lesser market share when compared to Amul but their market penetrating strategy is to give high

profit margin to retailers (around 12% - 15%) but they compromise on quality. But this is easily

perceived by the customers of Amul and they stick to Amul as they are brand loyal.

There are retailers who stock Amul products just to satisfy their customers and not make

profits. Others try to push competitor‘s product in order to gain more profits, in this process

GCMMF incurs a loss though the important cog in the wheels of the distribution network, the

retailer gains.

Connect between GCMMF and its Retailers:

Throughout the process of survey it was observed that the retailers were dissatisfied with

these above said issues and they were looking forward to put across these issues to the company

in order to seek a solution. But it seems none of the company personnel visits the retailers on a

regular basis. They visit only to promote a newly launched product, which happens once in six

months or so. Unlike, GCMMF its competitors like Nestle and Britannia harnesses those

employees who take return to know the grievances of the retailers. If not at least their distributors

visit the retailers. This does not happen in GCMMF. So the bond between the company and the

retailers is weakening. GCMMF should look into this issue seriously as the retailers play a major

in promoting Amul products at POS (point of sale).

Schemes offered:

GCMMF offers a lot of schemes time and again for the benefit of retailers and

consumers. These schemes do help to boost the sales and consumers are allured to buy the

products in bigger volumes. But the schemes offered to retailers, at times, do not reach them and

are coveted by the distributors. For example GCMMF was giving two curd packs free for the

retailers for one case of curd (24 packs of 200 ml each) they buy. The distributors receive their stocks only in cases and not as loose packs so they get the offer from the company but when they

distribute them to the retailers some buy as cases and some as individual packs since they do not

require so much. Ultimately the offer packs is retained by the distributor. Few retailers get to

know about the offer so they demand it from the distributors but those who are unaware tend to

lose the offer. Even the APO who gets intimation about the offers from GCMMF, at times, does

not get the schemes.



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Non-availability of Amul Products:

Unlike other factors stated above this was suggested by the customers. Certain variants or

flavors in a particular product‘s are not available in their neighborhood. This is happens in

flavored milk, butter and cheese. There were certain customers who were dissatisfied by the

distance they need to commute to buy Amul products.

Certain variants of Cheese, flavored milk are available only in supermarkets and these

supermarkets are not placed in neighborhoods and the local retailers are neither aware of their

customers demand nor aware of the entire array of products available.

RECOMMENDATIONS

Harnessing the ERP system of GCMMF:

GCMMF is utilising IT to optimise efficiency and production at each point in its supply

chain through a customised ERP package called Enterprise-wide Integrated Application System

(EIAS) which has been designed in such a way that it can be plugged into various points of the

supply chain for seamless information exchange. Through this, the federation has also connected

zonal offices, its Guwahati regional office, as well as major member dairies/milk unions and its

own unit — Mother Dairy through VSAT. All sales offices and wholesale distributors of the

organisation have also been connected through TCP/IP internet mail accounts for timely

exchange of information.

GCMMF gets the secondary sales data from the distributors on a 7-day frequency as the

distributor places his order to the stock point. But in the FMCG industry, distribution is the key

to success and GCMMF cannot afford to lose its business due to delay in supply and not able to

meet the exact demand. The constant challenge is to track the movement of products at the

distributor and retail levels and ensure that retail store shelves are refilled as quickly as possible.

So there is need for the secondary sales data to reach GCMMF at a higher frequency. In short,



26

the company needs a software package to capture secondary sales data or distributor sales data

and feed it into its ERP system. The aim is to enhance the responsiveness of the company‘s

distribution network. IBM along with SAP has implemented a state-of the-art ERP system for

GCMMF ltd. just recently. GCMMF can leverage the internet to find a solution and minimize its

losses. Apart from using the TCP/IP mail accounts for timely exchange of information it needs to

connect all the Chennai distributors with the stock point in Chennai and with the manufacturing

unit which supplies Chennai‘s stock point for exchange of inventory level information. This will

help the stock points to anticipate the demand of the distributors beforehand. For which it

requires an automation system which is already available in the ERP system developed by IBM

and SAP. This can be taken to internet so that it can be a multi-user and multi-company product,

in case the finished goods are received from different plants of Amul. Wipro Ltd. can develop a

single virtual office on the internet that could be accessed by GCMMF distributors, the stock

point and the manufacturing units. To make the entire system work like a virtual office, it is

required to integrate SAP system compatible with multiple platforms and operating systems,such as Microsoft windows or Unix, APO module (Advanced planner and optimizer, a software)

and BW(Business information warehouse). Preferred architecture is to have the intermediate BW

system that functions as a data repository for the APO-BW system. The intermediate system

does provide some real advantages, in that it is easier to migrate historical data from the BW to

APO-BW system as the host and target are more similar.

The newest version of the suite is MySAP 2007 or SAP ECC 7.0.It is advisable for

GCMMF to go for the latest version i.e SAP ECC 7.0. This ensures that there is a constant flow

of data between these systems. SAP allows the IT supported processing of a multitude of tasks,

accruing in a typical companyBy this way the Chennai distributors, the stock point in Chennai and the manufacturing

unit which supplies Chennai‘s stock point will be connected. The distributors need to log on to

the website once daily and upload their sales data for that day.

The system can be customized to automatically replenish stocks, which is a big step

towards precise streamlined inventory management. Stock norms for every distributor can be fed

into the ERP system. Comparing the sales on a day with the norm, the program generates a

dispatch order for the quantity needed to maintain the required levels of inventory, thereby

eliminating the opportunity for dumping to a large extent.

PHASE I: Implementation

GCMMF should select a list of leading distributors out of the 17 distributors who will implement

the software and will be examples to their counterparts. All the distributor has to do is to buy the

hardware, the PC and the modem. Some distributors are already using local software, which may

be tailor made but the company must convince them that in the long run, this ERP system will be



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more efficient. GCMMF should send a team of technologists (from GCMMF) and implementers

(from Botree). The technologists should explain the working procedures. Since every distributor

has a computer of their own and adept in using them they need not require separate training to

implement this automation procedure.

PHASE II: Backward integration with ERP systems - Total Integration

The second phase involves hooking all these distributors to the company‘s SAP system. This is

pretty simple as this has already been done by IBM and SAP just recently.

In future:

The portal can be made wireless and can be accessed through handheld, mobile gadgets.

Now the sales force who takes order can directly punch in the order and this will reach stock

point in no time. This not only astronomically increases the frequency within which stock points

get the information; it also simplifies the sales forces job without much of congested work. This

is currently implemented by Coca-Cola in major cities and Marico Ltd. has plans to implement

this technology, in future.

Advantages:

Reduction in late deliveries and working capital requirement

Will enable to capture and analyse secondary sales data in terms of daily sales and stock

availability for every distributor, distributor sales team performance, outlet monitoring,

merchandising monitoring, new product performance monitoring

Will enable to analyse information related to planned orders, primary sales invoicing,dispatch details and claims

Market information on a product comes everyday to factory, SKU-wise defect-wise in a

report called DQR (Daily quality report), which enable to meet customer satisfaction all

the time.

Improving the delivery time:

In the FMCG industry the minimum level of service (time taken by the company to

deliver the product to the customer once the order is placed) should always be the least possible

that is when a customer anticipates buying a product it should be available on the shelf. This

happens with Amul products due to its efficient distribution network. But the problem is some

distributors of Chennai does not receive fresh stocks and are not able to deliver fresh stocks for

the retailers. This problem has been prevalent for a long time in Chennai mainly due to the lack

of manufacturing facility in South India. Though there are warehouses close by, even they do not



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receive fresh stocks. This immediately calls for attention as, though customers prefer Amul

products over its competitors they are pushed to buy other products due to stale stocks of Amul.

This can be done by exploiting the ERP system. The warehouse can be enabled to receive

real-time inventory load of the distributors and it can intimate the manufacturing facilities. Thiscan help the facilities to reschedule their MPS (Master Production Schedule) in accordance with

the anticipated demand. GCMMF, being a market leader in various products it is important for

GCMMF to improve logistics to reduce the delivery time and to make sure that its distributors

get fresh stocks. A detailed account on this suggestion is not possible as manufacturing does not

come under the scope of the report.

Delivering on Credit:

Distributors can give bill to bill credit on all the dairy products for the retailers. This

should be done after meticulous evaluation of the retailer‘s potential and habit of settling his

dues in the past. The distributors should keep track of the retailer‘s practices and should be able

to evaluate them carefully. Based on the order placed by the retailer, every week and based on

his aptness to repay the amount due he can be given on credit.

For example if this is the scenario with a retailer

Order placed per week – Rs.1000

Tenure of business with GCMMF – 4 years

Aptness in paying the bills on time – 95%

No. of days taken in meeting the dues – 3 days

The entire stock need not be given on credit instead he can be given a credit of Rs.950 (based on

previous practice of settling dues) for a week and the rest of the amount rs.50 can be collected

during the next delivery on the next week.

Pros:

This will boost the retailer‘s morale (mainly the smaller ones) to stock more of Amul

products and hence he will promote them to his customers. During survey it was found

that retailers are ready even to double their orders if given on credit.



29

So in the above scenario just by delaying the payment of rs.950 by a week GCMMF will

be able to generate revenue of rs2000 in the place of rs1000

He will be aware of his due amount the next week and will be ready with money.

This will lead to increase in the order placed every week and the credit limit can also be

increased based on his timeliness and consistency to meet his dues.

This will spread by word of mouth to other retailers on the same street and he will also be

interested in stocking Amul products.

Cons:

Some retailers may stock beyond their potential to sell and may end up in losses.

Few might still try to evade paying the dues.

In case his aptness to pay the bills even after delivering on credit deteriorates then the credit limit

can be minimized accordingly or if his number of days taken in meeting the dues increases his

credit timing can be reduced accordingly. If still his practice deteriorates then he should be

denied delivery on credit and should be delivered products only on clearing his debts.

The above stated initiatives, taken by the distributors, demands GCMMF to deliver stocks

on credit to the distributors. They can be given bill to bill credit as they also receive stocks on a

weekly basis. This can be used as tool to increase the sales volume. The credit limit should

depend on the sales volume shown by the distributor.

Small retail packs:

Retail packs of Ghee and cooking butter have a huge demand. During the survey there

were strong suggestions from retailers to launch small retail packs of Ghee (50gm) due to huge

demand in the market. Customers prefer small retail packs of 50gm than 200gm packs (std.

Amul Ghee packs) as there usage is less and they can open a fresh pack whenever one gets over.

So they tend to stock four 50gm packs rather than a single 200gm pack.

It‘s been found that the count of 50gm and 100gm retail packs of ghee selling is twice

that of 200gm packs. The profits earned by selling them are quite high. It is advisable for Amul

to launch small sachets of 50 gm rather than plastic cases in order to cut down costs.

Salesperson efficiency improvement:



30

During the survey it has been observed that the salespersons who take order are unskilled

labors. Some distributors have employees who are old enough and mature enough to understand

the retailers while interacting with them but other employees of some distributors are just school

kids or undergraduates in their freshmen year. They work on an incentive basis, the more order

they procure the more are their incentives. So instead of spending time with each retailer to

explain the array of products available they tend to cover as many retailers as possible in the

shortest span of time. Ultimately, the retailer is unaware of the products available and the

customers of those neighborhoods complain about the non-availability of Amul products.

If the salesperson spends more time in explaining about the product width and depth

available; the schemes offered by Amul he will be able to procure more order. They can also try

and pitch to new retailers. The salesperson can also act as a spokesperson for their agency, by

which they can collect responses and expectations of customers; can make sure that the schemes

offered to the retailers reach the retailers and communicate retailer‘s problem to the distributors

and who in turn and can inform GCMMF. The issues which come to the board of GCMMF

should be considered seriously and resolved if they are feasible and cost effective. The

salesperson should be skilled enough to maintain a good relation with the retailers as he depicts

GCMMF and the brand Amul to the retailer who is solely responsible for promoting Amul at the

POS (point of sale).

Issues Not to be Resolved:

Other issues of taking returns and increasing the profit margin to the retailers are not

possible as they are least cost effective and will also pay way for disrupting the whole objective

and business philosophy of GCMMF.

SWOT ANALYSIS FOR GCMMF



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STRENGHTS

Consistency in delivering quality

Affordable and Competitive pricing

Brand loyal customers

WEAKNESS

Not favored by many retailers as their

demands are not met on time

Relatively low profit margin for retailers

Non-availability of fresh stocks

Boardroom fracas due to resignation of

Mr. B M Vyas

OPPORTUNITIES

Can leverage brand equity to diversify into

new markets

Dairy industry is the new found attraction

for private equity and venture capitalist

firms

THREATS

Competitor’s brands are preferred by

retailers

New entrant’s low cost market penetrating

strategy

SUMMARY

The total demand estimated for various Amul products are as follows:

particulars Liquid

Milk

Curd Paneer Milk

powder

Ghee Cheese Condensed

Milk

Milk

Sweet

Flavored

Milk

Butter

Milk

Butter

Through

Retailer‘s

Survey

(Rs.lakhs)

3216.9 1552.4 274.0 762.2 1927.9 303.8 227.8 94.7 364.0 247.6 553.4

Through

Consumer‘s

Survey

6673.7 1307.2 391.9 829.4 2085.3 287.24 260.6 99.2 496.1 292.7 726.2



32

(Rs.lakhs)

The total losses incurred in a week‘s time in the three distributor‘s area are as follows:

Products Butter Cheese Flavored

Milk

Milk

Powder

Curd Butter

Milk

Total

Losses

Incurred

Rs.49056 Rs.26271 Rs.25118 Rs.117442 Rs.25956 Rs.6632 Rs.250475

General dissatisfying factors for the retailers and consumers of Amul have been stated

and recommendations and their ways of implementation have been given. They can be

implemented and many of the issues can be resolved. It will be helpful in strengthening the bond

with retailers and increase the brand equity of Amul.

LIMITATIONS OF THE STUDY

The survey was conducted only in the areas of three distributors leaving the other areas

untouched. The constraints were manpower and time. Only two people were involved in

surveying through schedules and the total retail universe in a metropolitan city like Chennai is

huge and it is practically impossible to cover all the retail outlets in two months time. However,

care was taken to cover almost all the beats under one distributor‘s area so that the data collected

would represent the population as such.

The responses given by the retailers were jotted down as it was given by the respondents.

There may be high chances of few retailers in enunciating the demand figures. In the same way

the complaints given by them also needs consideration as they few retailers were angry with

GCMMF‘s inefficiency to meet the demand. So when they had a chance to pour out their

grievances they might have hyped it.



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SCOPE FOR FUTURE IMPROVEMENTS

GCMMF believes in low inventory and JIT delivery system for various reasons. As of

now the replenishment time for retailers in Chennai is one week and for certain retailers who are

close to the distributors it is 3-4 days. GCMMF can work on reducing the replenishment time to

2-3 days for all the retailers. This will address various issues and result in better profitability.

APPENDICIES

(The questionnaires were provided by GCMMF)

APPENDIX - 1

SURVEY FOR AMUL PRODUCTS QUESTIONNAIRE FOR RETAILERS

1. What kind of milk & milk products do you sell?

product Avg. sale per

week

Whether

Packaged or

Loose

If Packaged

specify Brand

Rate (Rs./pack)

& Margin (%)



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Liquid Milk

Curd/Dahi

Paneer

Milk Powder

Ghee

Cheese

Condensed

Milk

Milk Sweets

Flavored Milk

Butter Milk

Ice- cream

Butter

Other

2. Are these products delivered at your doorstep?

Yes

No

If yes, who delivers the Products?

Company directly

Distributor

Whole-seller

Buying on own from market

Any other (please specify) ____________



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3. Are you satisfied with the way these products are delivered to you?

Yes

No

If no, how would you like it to be delivered?

4. Are you satisfied with the quality of products you are selling currently?

Yes

No

5. Are you satisfied with the quality of service provided by company/ distributor?

Yes

No

If no, what are the problems with quality of service?

6. What are the schemes/ promotion support provided by the company?

7. Any suggestions for improvements in ‗Amul‘ products?

Retailer Information

Name of the Establishment:

Type of Establishment:

Contact Person:

Address & Phone No.:



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APPENDIX - 2

SURVEY FOR AMUL PRODUCTS QUESTIONNAIRE FOR CONSUMERS

1. What kind of milk do you consume:

Pouch

Loose

If Pouch

1. Brand name

2. Variant (Full-Cream, Std., Toned DTM, Skimmed, Cow Milk)

3. Quantity per day

4. Rate of milk (Rs./Lit.)

If loose,

Quantity per Day

Rate (Rs./ Lit.)

2. What is the mode of purchasing of milk?

Home delivery

Retailer

Others (Please Specify)

3. What is the Consumption of other Milk Products?



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Product Consumption

per day/per

week

Whether made

at home or

brought from

the market

If brought

from the

market, specify

the brand

Rate(Rs./pack)

Curd/Dahi

Paneer

Milk Powder

Ghee

Condensed Milk

Milk Sweets

Flavored Milk

Buttermilk/Lassi

Ice cream

Butter

Other(Pl.

specify

4. Are you satisfied with the availability of above products in your neighbourhood?

Yes

No

If no, how would you like product to be available?

5. Are you satisfied with the Quality of product you are using currently?

Yes

No

If not, what are the problems with its quality?



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6. Are you satisfied with the Price of product you are using?

Yes

No

If no what must be the price?

7. Any suggestions for improvements in ‗Amul‘ products?

Respondent Information

Name:

Age:

Educational Qualification:

Occupation:

Total members in family:

Average Income of the Family:

Complete Address:

BIBLIOGRAPHY



39

Kothari, C. R. (2004), Research Methodology, 2nd

edition, New Age International Ltd.

Arnold Tony .J.R, Chapman .N Stephen & Ramakrishnan .R.V, Introduction to Materials

Management, 5th

edition, Pearson Education

Pingali, Venugopal, Sales and Distribution Management an Indian Perspective, 1st

edition, 2008,

Sage Publications India Pvt.Ltd.

Goldratt.M Eliyahu, Eshkoli Ilan & Brown .L Joe, Isn‘t It Obvious?, 2010, Productivity &

Quality Publishing Pvt.Ltd

Asian Case Research Journal, Vol.6, Issue 2, 205-239 (2002)

―Demography (PDF) Second Master Plan –II‖ by Chennai Metropolitan Authority

www.supplychain.org

www.managementparadise.com

http://www.supplychain.org/


http://www.managementparadise.com/




DEMAND ESTIMATION OF DAIRY PRODUCTS AND THE STUDY OF DISTRIBUTION NETWORK OF GCMMF (AMUL) - CHENNAI

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