Research Project on Amul

Retailer’s and Consumer Behaviour towards Amul

Introduction

In this research Researcher have surveyed the product performance

and buying behavior of two famous brands of dairy – Amul and Saras,

which are consumed by people of all ages. During this research

Researcher have interacted with people of “Jaipur”.

After this research Researcher came to know how people perceives

these products on the variables like price, quality, advertisement,

satisfaction, taste, packaging, brand loyalty etc. Researcher also came to

know which particular brand of milk is most preferred by people of

different age groups.

In this research Researcher have surveyed that how frequently and

how much dairy products they consume, whether they buy small, or big

packs. Trend of ongoing changes in their likings has been shown in the

report. In this report Researcher have tried to explain the entire research

and facts product wise.

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Objectives of Research

1. To know the market share of Amul products

2. To know the perception of customers regarding Amul products.

3. To determine the customers satisfaction regarding Amul products.

4. To determine the factors influencing the choice of customers

regarding Amul products.

5. To know effectiveness of the marketing strategy and sales

promotion in market.

6. Evaluating the competitor’s strength and weakness in rural market

7. Retailer’s expectation from company.

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Overview of Dairy Co-Operatives

Dairy cooperatives account for the major share of processed liquid

milk marketed in the country. Milk is processed and marketed by 170

milk producers’ cooperative unions, which federate into 15 state

cooperative milk marketing federations.

The dairy board’s programmes and activities seek to strengthen the

functioning of dairy cooperatives, as producer-owned and controlled

organisations. NDDB supports the development of dairy cooperative by

providing them financial assistance and technical expertise, ensuring a

better future for India’s farmers.

Some of the major dairy cooperatives federations include:

Andhra Pradesh Dairy Develeopment Cooperative Federation Ltd.

(APDDCF)

Bihar State Cooperative Milk Producers’ Federation Ltd.

(COMPFED)

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF)

Haryana Dairy Development Cooperative Federation Ltd.

(HDDCF)

Himachal Pradesh State Cooperative Milk Producers’ Federation

Ltd. (HPSCMPF)

Karnataka Cooperative Milk Producers’ Federation Ltd. (KMF)

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Kerala State Cooperative Milk Marketing Federation Ltd.

(KCMMF)

Madhya Pradesh State Cooperative Dairy Federation Ltd.

(MPCDF)

Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh

(MAHASANGH)

Orissa State Cooperative Milk Producers’federation Ltd. (OMFED)

Pradeshik Cooperative Dairy Federation Ltd. (UP) (PCDF)

Punjab State Cooperative Milk Producers’ Federation Ltd.

(MILKFED)

Rajasthan Cooperative Dairy Federation Ltd. (RCDF)

Tamilnadu Cooperative Milk Producers’ Federation Ltd. (TCMPF)

West Bengal Cooperative Milk Producers’ Federation Ltd.

(WBCMPF)

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Gujarat Co-Operative Milk Marketing Federation

An Overview

Gujarat Co-Operative Milk Marketing Federation (GCMMF) is

India's largest food products marketing organisation. It is a state level

apex body of milk cooperatives in Gujarat which aims to provide

remunerative returns to the farmers and also serve the interest of

consumers by providing quality products which are good value for

money.

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.

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 liters

per day

Milk collection (total - 2008-09) : 3.05 billion liters

Milk collection (daily average 2008-09) : 8.4 million liters

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Milk drying capacity : 626 mts. Per day

Cattlefeed manufacturing capacity : 3500 mts per day

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Company Profile – Literature Review

Type : Co-Operative

Industry : Dairy

Founded : 1946

Headquarters : Anand

Key people : Chairman, Kaira District

Cooperative Milk Producers’

Union Limited (KDCMPUL)

Revenue : INR 67.11 Billion; $1.33 (in 2008-

09)

Employees : 735 employees of marketing arm.

However, real pool Consist of 2.8

million milk producers

Website : www.amul.com

Amul is the largest food brand in India and world’s largest

Pouched milk brand with an annual turnover of us $1050 million

(2006-07).

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http://www.amul.com/


Introduction and History of Amul

In the year 1946 the first milk union was established. This union

was started with 250 liters of milk per day. In the year 1955 Amul was

established. In the year 1946 the union was known as Kaira District Co-

Operative Milk Producers’ Union. This union selected the brand name

Amul in 1955.

The brand name Amul means “Amulya”. This word derived from

the sanskrit word “Amulya” which means “priceless”. A quality control

expert in anand had suggested the brand name “Amul”. Amul products

have been in use in millions of homes since 1946. Amul butter, Amul

milk powder, Amul ghee, Amulspray, Amul cheese, Amul chocolates,

Amul shrikhand, Amul ice cream, nutrAmul, Amul milk and Amulya

have made Amul a leading food brand in India. (the total sale is INR 6

billion in 2005). Today Amul is a symbol of many things like of the high-

quality products sold at reasonable prices, of the genesis of a vast co-

operative network, of the triumph of indigenous technology, of the

marketing savvy of a farmers' organization. And have a proven model for

dairy development (generally known as “anand pattern”).

In the early 40’s, the main sources of earning for the farmers of

Kaira District were farming and selling of milk. That time there was high

demand for milk in Bombay. The main supplier of the milk was Polson

Dairy Limited, which was a privately owned company and held

monopoly over the supply of milk at Bombay from the Kaira District.

This system leads to exploitation of poor and illiterates’ farmers by the

private traders. The traders used to beside the prices of milk and the

farmers were forced to accept it without uttering a single word.

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However, when the exploitation became intolerable, the farmers

were frustrated. They collectively appealed to Sardar Vallabhbhai Patel,

who was a leading activist in the freedom movement. Sardar Patel

advised the farmers to sell the milk on their own by establishing a co-

operative union, instead of supplying milk to private traders. Sardar patel

sent the farmers to Shri Morarji Desai in order to gain his co-operation

and help. Shri Desai held a meeting at Samarkha village near Anand, on

4th January 1946. He advised the farmers to form a society for collection

of the milk.

These village societies would collect the milk themselves and

would decide the prices at which they can sell the milk. The district union

was also form to collect the milk from such village co-operative societies

and to sell them. It was also resolved that the government should be asked

to buy milk from the union.

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However, the govt. Did not seem to help farmers by any means. It

gave the negative response by turning down the demand for the milk. To

respond to this action of Govt., the farmers of Kaira District went on a

milk strike. For 15 whole days not a single drop of milk was sold to the

traders. As a result the Bombay milk scheme was severely affected. The

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

Having seemed the condition, he decided to fulfill the farmers demand.

Thus their cooperative unions were forced at the village and district

level to collect and sell milk on a cooperative basis, without the

intervention of government. Mr. Verghese Kurien showed main interest

in establishing union who was supported by Shri Tribhuvandas Patel who

lead the farmers in forming the co-operative unions at the village level.

The Kaira District Milk Producers Union was thus established in Anand

and was registered formally on 14th December 1946. Since farmers sold

all the milk in anand through a co-operative union, it was commonly

resolved to sell the milk under the brand name Amul.

At the initial stage only 250 liters of milk was collected everyday.

But with the growing awareness of the benefits of the cooperativeness,

the collection of milk increased. Today Amul collect 11 lakhs liters of

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milk everyday. Since milk was a perishable commodity it becomes

difficult to preserve milk flora longer period.

Besides when the milk was to be collected from the far places,

there was a fear of spoiling of milk. To overcome this problem the union

thought out to develop the chilling unit at various junctions, which would

collect the milk and could chill it, so as to preserve it for a longer period.

Thus, today Amul has more than 150 chilling centers in various villages.

Milk is collected from almost 1073 societies.

With the financial help from UNICEF, assistance from the Govt. of

New Zealand under the Colombo plan, of INR 50 millions for factory to

manufacture milk powder and butter was planned. Dr. Rajendra Prasad,

the president of India laid the foundation on November 15, 1954. Shri

Pandit Jawaharlal Nehru, the prime minister of India declared it open at

Amul dairy on November 20, 1955.

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People Power: Amul's Secret of Success

The system succeeded mainly because it provides an assured

market at remunerative prices for producers' milk besides acting as a

channel to market the production enhancement package. What's more, it

does not disturb the agro-system of the farmers. It also enables the

consumer an access to high quality milk and milk products. Contrary to

the traditional system, when the profit of the business was cornered by

the middlemen, the system ensured that the profit goes to the participants

for their socio-economic upliftment and common good.

Looking back on the path traversed by Amul, the following

features make it a pattern and model for emulation elsewhere.

Amul has been able to:

Produce an appropriate blend of the policy makers farmers board

of management and the professionals: each group appreciating its

rotes and limitations,

Bring at the command of the rural milk producers the best of the

technology and harness its fruit for betterment.

Provide a support system to the milk producers without disturbing

their agro-economic systems,

Plough back the profits, by prudent use of men, material and

machines, in the rural sector for the common good and betterment

of the member producers and

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Even though, growing with time and on scale, it has remained with

the smallest producer members. In that sense Amul is an example

par excellence, of an intervention for rural change.

The union looks after policy formulation, processing and marketing

of milk, provision of technical inputs to enhance milk yield of animals,

the artificial insemination service, veterinary care, better feeds and the

like - all through the village societies. Basically the union and

cooperation of people brought Amul into fame i.e. Amul (Anand Milk

Union Limited), a name which suggest the taste of India.

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Plants

First plant is at Anand, which engaged in the manufacturing of

milk, butter, ghee, milk powder, flavored milk and buttermilk.

Second plant is at Mogar, which engaged in manufacturing

chocolate, NutrAmul, Amul ganthia and Amul lite.

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Third plant is at kanjari, which produces cattelfeed.

Fourth plant is at khatraj, which engaged in producing cheese.

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Today, twelve dairies are producing different products under the

brand name Amul. Today Amul Dairy is No. 1 dairy in Asia and no. 2 in

the world, which is matter of proud for Gujarat and whole India.

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Products

1. Bread Spreads:

a. Amul Butter - Utterly butterly delicious

b. Delicious Table Margarine - The delicious way to eat

healthy

c. Amul Lite - Low fat, low cholestrol bread spread

2. Milk Drinks:

a. Amul Kool Milk Shaake

b. Amul Kool

c. Amul Kool Koko - A delight to chocolate lovers delicious

chocolate taste

d. Amul Kool Chocolate Milk

e. Amul Kool Café

3. Nutramal Energy Drink:

a. A Drink For Kids - Provides energy to suit the needs of

growing kids

b. Amul Kool Flavoured Bottled Milk

c. Amul Masti Spiced Buttermilk

d. Amul Introduces The Best Thirst Quenching Drink

e. Amul Kool Thandai

f. Amul Lassee

g. Amul Kool Flavoured Tetra Pack

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4. Powder Milk:

a. Amul Spray Infant Milk Food - Still, mother's milk is best

for your baby

b. Amul Instant Full Cream Milk Powder - A dairy in your

home

c. Sagar Skimmed Milk Powder - Which is especially useful

for diet preparations or for use by people on low calorie and

high protein diet.

d. Amulya Dairy Whitener - The richest, purest dairy whitener

e. Sagar Tea Coffee Whitener

5. Fresh Milk:

a. Amul Fresh Milk - This is the most hygienic milk available

in the market. Pasteurised in the state of the art processing

plants and pouch –packed for convenience.

b. Amul Gold Milk

c. Amul Taaza Double Toned Milk

d. Amul Lite Slim And Trim

e. Amul Fresh Cream

f. Amul Shakti Toned Milk

g. Amul Calci+

h. Amul Buttermilk

6. Cheese:

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a. Amul Pasteeurised Processed Cheese - 100% vegetarian

cheese made from microbial rennet

b. Amul Cheese Spreads - Tasty cheese spreads in 3 great

flavours.

c. Amul Pizza Mozzarella Cheese - Pizza cheese...makes great

tasting pizzas!

d. Amul Emmental Cheese - The great swiss cheese from

Amul, has a sweet-dry flavour and hazelnut aroma

e. Gouda Cheese

7. For Cooking:

a. Amul/Sagar Pure Ghee - Made from fresh cream. Has

typical rich aroma and granular texture. An ethnic product

made by dairies with decades of experience.

b. Cooking Butter

c. Utterly Delicious Pizza

d. Mast Dahi

e. Amul Malai Paneer - Ready to cook paneer to make your

favourite recipes!

f. Mithai Mate

g. Weetened Condensed Milk – free flowing and smooth

texture. White to creamy color with a pleasant taste.

h. Pro-biotic Dahi

8. Desserts:

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a. Amul Ice Creams - Premium ice cream made in various

varieties and flavours with dry fruits and nuts.

b. Amul Mithaee Gulab Jamun - Pure khoya gulab

jamums...best served piping hot.

c. Amul Basundi

d. Amul Shrikhand - A delicious treat, anytime.

e. Amul Chocolates - The perfect gift for someone you love.

9. Health drink:

a. NutrAmul - Malted milk food made from malt extract has

the highest protein content among all the brown beverage

powders sold in india.

b. Amul Shakti Health Food Drink - Available in kesar-almond

and chocolate flavours.

c.

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Research design

Research Problem

Increase the awareness level of Amul milk.

Seek the general perception of consumer towards Amul milk.

To find the performance of Amul milk vis-à-vis other brands.

To know the consumer psyche and their behaviour towards

Amul milk.

Research Objectives & Related Sub Objectives

To know the relationship of sales with the advertisement.

To know awareness of people towards Amul milk and other

products.

To know which advertisement tool is mostly preferred by

people.

To know the preference of Amul milk with comparison to Other

competitive brands.

To know the factors which affects consumer’s buying behaviour

To purchase chocolates.

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Information Requirement

First, Researcher had to know about all the competitors present in

the milk segment (reputed and well established brands as well as

local brands).

Before going for the survey Researcher had to know the

comparative packs and prices of all the competitors existing in the

market.

As milk is different product, the main information needed is the

various types of milk available in the market, their calorific value,

fat percentage and fat percentage and various other facts.

As Amul milk advertisements are mainly done through audio

visual media and on television the advertisement is being telecasted

timely and on the proper time or not.

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Choice of Research Design – Alternatives & Choice

Despite the difficulty of establishing an entirely satisfactory

classification system, it is helpful to classify marketing research on the

basis of the fundamental objectives of the research. Consideration of the

different types, their applicability, their strengths, and their weakness will

help the student to select the type best suited to a specific problem.

The two general types of research are:

1. Exploratory Research

Exploratory research seeks to discover new relationship,

emphasis on discovery of ideas. Marketing researches devote a

significant portion of their work on exploratory studies when very

little is known about the problem being examined.

2. Conclusive Research

Conclusive studies attempts to determine the frequency with

which something occurs or the relationship between two

phenomenons. Usually conclusive studies assume certain under

underlying characteristics of the market or have some precise

statement of research questions/hypothesis.

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Research instrument used - details & why?

If one wants to know what type of dentifrice people use, what they

think of, television commercials, or why they buy particular brands of

cars, the natural procedure is to ask them. Thus, the questionnaire method

has come to be the more widely used of the two data collection method.

Many consumers are now familiar with the telephone caller who greets

them with “we are making a survey”, and then proceeds to ask a series of

questions. Some interviews are conducted in person, others by telephone,

and others by mail. Each of these has its special advantages and

disadvantages and limitations. The questionnaire method in general,

however, has a number of pervasive advantages and disadvantages.

Discussion of particular variations will be more meaningful if these

characteristics of the general methods are brought out first.

A questionnaire consists of list of questions to be asked from the

respondents and the space provided to record the answer / responses.

Questionnaire can be used for the personal interviews, focus groups,

mails and telephonic interviews. The choice among these alternatives is

largely determined by the type of information to be obtained and by the

type of respondents from whom it is to be obtained.

The common factor in all varieties of the questionnaire method is

this reliance on verbal responses to question, written or oral.

Questionnaire in the research consists of:-

Multiple Choice Questions

Open End Questions

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Dicthomus

1. Multiple Choice Questions:

Questions of this type offer the respondents an

alternative to choose the right answer among others. It is

faster, time saving and less biased. It also simplifies the

tabulating process.

2. Open end Questions:

In this type respondents are free to answer in their

own words and express the ideas they think are relevant,

such questions are good as first questions or opening

questions. They introduce the subject and obtain general

reaction.

3. Dicthomus:

These are the questions which are boolean in nature.

These answers are straightforward and respondents have to

answer them in a straight way. That means the answer can

only be either ‘yes” or ‘no’.

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Sampling Technique Used & Sample Size - Why?

Sample design is a definite plan of obtaining some items from the

whole population. The sample design used in this research is two state

sampling i.e. cluster and convenience. In the probability sampling

methods, each items in the sample is chosen one at a time from a

complete list of universe elements. In marketing research practice, it will

sometimes be more expedient to select clusters or groups of universe

elements, rather than to choose sample items individually.

Sampling methods in which universe elements are chosen in

groups rather than individually are called cluster-sampling methods. They

are widely used in the sampling of human populations. When no

complete universe listing exists, a type of sampling is called area

sampling may be the only practically feasible form of probability

sampling.

Nondisguised, Structured Techniques

The non structured techniques for attitude measurement are

primarily of value in exploratory studies, where the researcher is looking

for the salient attributes of given products and the important factors

surrounding purchase decisions as seen by the consumer. Structured

techniques can provide a more objective measurement system, one which

is more comparable to a scale or a yardstick. The term scaling has been

applied to the efforts to measure attitudes objectively, and a number of

useful scales have been developed.

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Sampling Methods

Sample design is a definite plan of obtaining some items from the

whole population. The sample design used in this research is two state

sampling i.e. cluster sampling and convenience sampling. The whole city

was divided into some geographical areas and Research have chosen

sanganer and jagatpura the total sample size was 50.

1. Cluster Sampling

Here the whole area is divided into some geographical

area and a definite number of consumers and retailers were

to be surveyed.

2. Convinience Sampling

This type of sampling is chosen purely on the basis of

convenience and according to convenience. Researcher

visited bus stands, milk parlours, gardens, etc.

Sampling

Sampling technique : non probability sampling (a non

probability sampling technique is

that in which each element in the

population does not have an equal

chance of getting selected)

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Sample unit : people who buy milk available in

retail outlets, superstores, etc

Sample size : 50 respondents (age ranging

between 15 yrs to 65 yrs)

Method : direct interview through

questionnaire.

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Field Work- Method Used For Data Collection

a. Questionnaire was prepared keeping the objective of research in

mind.

b. Questions were asked to respondents as regards to their willingness

to purchase milk.

c. The help of questionnaires conducted direct interviews, in order to

get accurate information.

d. In order to get correct information Researcher had to approach

consumers ranging From 15 yrs to 65 yrs.

e. Researcher visited as many respondents as Researcher can and

asked them their real likings of customer.

f. It is really a herculean task to understand consumer behaviour, as

the definition suggest, “consumer behaviour is a physical activity

as well as decision process individual engaged in when evaluating,

acquiring, using and disposing goods and services”.

g. In order to collect accurate information Researcher visited to

garden, parks, milk parlors, superstores, retailers and each and

every question was filled personally by the respondents and

checked properly.

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h. People were not willing to answer, when they were contacted

between 1.00 Pm to 5.00 pm, the time when most of the people

take rest during the scorching heat.

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Research Project on Amul

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