A PROJECT REPORT ON

“A STUDY ON MARKET ANALYSIS AND SALES DEVELOPMENT OF AMUL TAAZA IN KANPUR CITY”

Submitted in partial fulfillment of the requirement

For the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION DEPARTMENT OF BUSINESS ADMINISTRATION

SESSION (2012-2013)

Under the guidance of: Submitted By: Mr. Navneet Gupta Kushagra Shukla Milk Marketing Officer Roll No.: 0401296 Kanpur Depot Batch: BBA 2010-13

DAYANAND ACADEMY OF MANAGEMENT STUDIES, KANPUR AFFILIATED TO

C.S.J.M. UNIVERSITY, KANPUR

A PROJECT REPORT ON

“A STUDY ON MARKET ANALYSIS AND SALES DEVELOPMENT OF AMUL TAAZA IN KANPUR CITY”

Submitted in partial fulfillment of the requirement For the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Of

C.S.J.M. University, Kanpur Session – (2012-13)

By

Kushagra Shukla Roll No.: 0401296

Batch: 2010-13

ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for KAIRA DISTRICT CO-OPERATIVE MILK PRODUCER’S UNION LTD., ANAND. It has been an enriching experience for me to undergo my summer training at AMUL, which would not have possible without the goodwill and support of the people around. As a student of DAYANAND ACADEMY OF MANAGEMENT STUDIES, KANPUR. I would like to express my sincere thanks to all those who helped me during my practical training program.

Words are insufficient to express my gratitude towards MR. NAVNEET GUPTA, the Depot-in-charge of AMUL. I would like to give my heartily thanks to MR. ROHIT PURI, Faculty guide, who helped me at every step whenever needed, for having spared her valuable time with me and for all the guidance given in executing the project as per requirements.

At last but not least my grateful thanks are also extended to all my faculty members for the proper guidance and assistance extended by them. I am also grateful to my parents, friends to encourage & giving me moral support.

(Kushagra Shukla)

(Mr. Rohit Puri) (Sign. of external examiner)

I

PREFACE

In spite of the theoretical knowledge gained through class room study, a person is incomplete if not objected to practical exposure of real corporate and may have to face hurdles which will be difficult to overcome without any firsthand experience of business.

In this context research program has been designed to make the person aware of happening of the real business world. The project entitled “A STUDY ON MARKET ANALYSIS AND SALES DEVELOPMENT OF AMUL TAAZA IN KANPUR CITY” has been done at Kanpur as completion part of B.B.A. program.

The study was made by collecting relevant data about awareness and market size with the help of questionnaire survey, secondary data were collected from the organization broacher’s, magazines, newspaper, websites etc.

This report is the result of the work done during the training period. I have tried my level best to be as a systematic as possible and to avoid any sort of biases.

II

CERTIFICATE

This is to certify that KUSHAGRA SHUKLA, Roll no. 0401296 a student

of course Bachelors of Business Administration from the DAYANAND

ACADEMY OF MANAGEMENT STUDIES, KANPUR has done his

summer training at GUJARAT CO-OPERATIVE MILK MARKETING

FEDRATION LIMITED (GCMMF).

The project work entitled “A STUDY ON MARKET ANALYSIS AND

SALES DEVELOPMENT OF AMUL TAAZA IN KANPUR CITY”

has done under the supervision of MR. ROHIT PURI faculty member of

DAYANAND ACADEMY OF MANAGEMENT STUDIES, KANPUR.

The project work embodies the original work done by KUSHAGRA

SHUKLA during his summer project training period.

III

STUDENT DECLARATION

I Kushagra Shukla student of B.B.A. at Dayanand Academy of

Management Studies, Kanpur of hereby declare that the project work

entitled “A Study on Market Analysis And Sales Development of

AMUL TAAZA in Kanpur city” is compiled and submitted under the

guidance of Mr. Navneet Gupta. I would also like to thank Mr. Krishna

Kumar Dwivedi, of AMUL (Kanpur) who helped me during my training

program and guided in doing the market. This is my original work.

Whatever information furnished in the project report is true to the best of

my knowledge.

Kushagra Shukla

BBA 6th Semster

0401296

IV

V

SYNOPSIS

I Kushagra Shukla felt privileged to be a part of DAYANAND

ACADEMY OF MANAGEMENT STUDIES, KANPUR. I did my summer

internship training in GUJARAT CO-OPERATIVE MILK

MARKETING FEDERATION (GCMMF) a FMCG sector company

under the brand name “AMUL MILK”. My project title is the

“A STUDY ON MARKET ANALYSIS AND SALES

DEVELOPMENT OF AMUL TAAZA IN KANPUR CITY”. The

project basic objectives were to estimate demand of Amul Milk and perform

a whole comparative study of it as compared to other brands.

As a methodology, I chose direct interview in the form of questionnaire to

know about consumer’s preferences. On the basis of these preferences I

drew out the factors effecting demand of Amul Milk, consumer’s nature of

purchase and their perception towards the brand.

Also the sales were also estimated by questioning the retailers through the

questionnaires. It helped me to know a lot about the whole supply chain of

the product along with its profit margin.

There were certain limitations of the project which are as follows:

• The field of study was very vast,

• Consumer’s socially desirable answers make a clear difference in

what they say and what actually they do.

VI

Out of these two parts of my project I learnt two things:

• Visibility is one of the area required for Amul Milk to position

into the people’s mind,

• Secondly, Amul should understand the expectations of people.

If one wants to grow in FMCG sector one should keep

the following factors in mind that the products are easily available to the

consumer’s, to improve the quality of products from time to time, thirdly,

the price of the product should be low and last but not the least the

visibility and the promotional strategy should be such that it hits people’s

mind.

So analysis is based on sample results. It was a difficult

task to gather information from respondents by meeting them personally in

order to get questionnaire filled. There was a lot of time pressure and

sometimes unwillingness of the respondents to respond.

VII

EXECUTIVE SUMMARY

In today’s competitive world while entering in the market it is very

necessary to have good knowledge of the potential of a particular market.

The information regarding the activities of competitor’s existing in that we

can plan our each activity according to that. It is also necessary to retain

the existing customer’s apart from attracting the new customers.

The Project is concern with the market analysis & sales development of

Amul dairy milk Kanpur city. The project included as part of BBA

Programme and the project is done from the 7th January 2013 to

18th February 2013.

1. Title:

“A STUDY ON MARKET ANALYSIS AND SALES

DEVELOPOMENT OF AMUL TAAZA IN KANPUR CITY”

2. Organization:

“Gujarat Co-operative Milk Marketing Federation

(GCMMF), Anand, Kanpur”.

VIII

3. Objective:

The Primary Objective of the study was to find size of retail network of

Amul Taaza in specific areas of Kanpur city. In the study my intention was

go through the retail network of Amul dairy milk to know retailers view

about supply chain of Amul dairy milk, to know the complaints of Amul

dairy milk and to find out the suggestions from retailers for more

penetration of Amul dairy milk in Kanpur region.

The Secondary Objective was to find the customer response towards Amul

milk. My aim was to go through the customers to know the interest of

purchasing & using Amul milk. Basically the study was for the demand of

Amul milk among the customers. And also to know the complaints on

Amul milk.

4. Research Methodology:

Research type was descriptive. The research was done through retailers. I

have collected the primary data through questionnaire which was filled by

retailer’s, customer’s.

Questions were both open and close ended. The secondary data was

collected from website www.amul.com.

Sampling done is Stratified Sampling. The type of sampling method was

Judgment Sampling.

IX

5. Findings:

In Kanpur region there are around 5 more players of milk that exist. Those

are like Namaste India, Mother Dairy, Paras, Parag and many other local

brands. Awareness of Amul milk among the retailers as well as consumers

is average but acceptance is low. The sale totally depends on the retailers.

6. Data Analysis:

The data analysis has done area wise. It gives idea about the competitors of

Amul milk. It gives information regarding their market share.

7. Conclusion:

It was concluded that Amul milk have a high potential in the market and it

is the known to its customers but still its acceptance is comparatively low

as other competitors present in the market, because perception of customers

towards the product is wrong, most of the consumer continuously using

other brand and they do not want to switch over other brand.

X

_

______________________________________________________

ANAND MILK UNION LIMITED

THE KAIRA DISTRICT CO-OPERATIVE MILK

PRODUCERS’ UNION LIMITED

ANAND

XI

XII

INDEX

Table of Content Page No.

CHAPTER – 1 :: INTRODUCTION

Context of the Topic 2 Promotion Tool Used 4 Need of Study 5 Statement of the problem 5

CHAPTER – 2 :: INDUSTRY & COMPANY PROFILE

Introduction & History of Amul 8 People Power: Amul’s Secret of Success 15 The Amul Model 18 The Three Tier Structure 20 GCMMF Overview 22 Plants 24 Organization Structure 29 GCMMF Supply Chain 39 Technology And E-initiatives 47 List of Products Marketed 49 Amul Competitors 56 SWOT Analysis 59

CHAPTER – 3 :: ACHIEVEMENTS AND AWARD’S

Achievements 61 Awards And Certification 69

CHAPTER – 4 :: RESEARCH METHODOLOGY

Objective of the Report 86 Scope of Project 86 Research Design 87 Sampling Plan 89 Analysis And Technique Used 92

CHAPTER – 5 :: DATA ANALYSIS AND INTERPRETATION

Analysis of the Retailer’s Questionnaire 95 Analysis of the Consumer’s Questionnaire 108

CHAPTER – 6 :: FINDINGS AND OBSERVATION

Observation Findings 115 Limitations 117 Conclusion 118 Suggestions & Recommendations 119

CHAPTER – 7 :: ANNEXURE

Bibliography And Webliography 123 Questionnaire for Retailers 125 Questionnaire for Customers 128

CHAPTER – 1

INTRODUCTION

1

Context of the Topic:

The dairy industries companies run mainly on the factors such as

availability, service frequency, taste and marketing. Availability is plays a

vital role because purchasing power is depend upon availability of that

product, in case distributors and retailers service matter a lot. Retailing

includes all the activity in selling goods or service enterprises whose

sales volume comes primarily from retailing.

Retailers are the part of milk marketing channels and perform the

work of moving goods from producers to the customers. It overcomes the

time, place and possession gap that separates goods and service from

those who needs and wants them. Retailers as member of marketing

channel perform a number of key functions. Some functions (physical,

title, promotion) constitute a forward flow of activity from the company

to the customers; other functions (ordering and payment) constitute a

backward flow from customers to the company. Still others (information,

negotiation, finance and risk taking) in both directions.

The project delves into the workings from the distribution aspect of

an FMCG organization, in detail. AMUL, being an FMCG company,

attaches a lot of significance to the distribution aspect of its business.

The distribution channel of AMUL holds a lot of potential in affecting

the demand or sales of AMUL products through delivery on time,

delivery of variety of products, the retailer friendliness of the policies

being set by the distributers and equitable distribution of products to all

the retail outlets in a particular region, to name a few.

2

So, In order to plan retail coverage we map out the positions of

Amul outlets, Amul parlors, and competitor’s outlets. This project was

carried out in Kanpur city. For analyzing and presenting information that

is tied to geographical location, we divided the city in different wards.

By analyzing geographical representation and sales data with spatial

distribution Amul outlets, competitor’s outlets and the density of others in

an area, we identify unexplored area and plan location outlets to increase

its market penetration. Using such research we can ascertain the quality

and depth of retail penetration in specific area.

Addition to this we carried out sales promotion activity through

discount coupons. Sales promotion consists of diverse collection incentive

tool, most short-term designed to stimulate or greater purchase of a

particular product by consumers or the trade. Whereas advertise offers a

reason to buy, sales promotion offers incentive to buy. Sales promotion

includes tools for consumer promotion (for example: buying allowance,

free goods, merchandise allowances, co-operative advertising, advertising

and display allowances, dealer sales contests); sales force promotion (for

example: bonuses, contests, sales rallies).

Sales promotion efforts are directed at final consumers and designed

to motivate, persuade and remind them of the goods and receives that

are offered.

3

Promotion Tool Used:

The consumer promotion tools mean the promotion activities, which

are beneficial for consumers as well as company. Such as price

discounts, samples, cash refund, premiums, prizes, cross promotion ad

coupons etc. We decided to use discount coupons. We distributed it

among customers and validity kept seven days from issued.

The consumers are seduced to buy the product.

It helped to increase sales volume.

Consumer can get good quality of good in cheaper price.

It can attract the new consumers and customers buying other milk

brands.

Attract brand switchers, who are primarily looking for low price,

good value or premiums.

Turn switchers to loyal users.

It induced to make some subsequent purchases.

Give little permanent gain in market share.

4

Need of Study:

Managers are always curious about the position of their company’s

products in the market which largely depend upon the company’s

goodwill, and the position of their brand. In order to maximize the sale

and profit, company must deliver outstanding satisfaction to the retailers,

wholesaler & consumers. So market survey of retailers, wholesalers &

customers, chart out the position of the company as compared to the

competitors. It helps the organization to find out the brand being sold

most by the retailers along with their stocking and also consumer buying

preferences.

Statement of the Problem:

“A STUDY ON MARKET ANALYSIS AND SALES

DEVELOPMENT OF AMUL TAAZA IN KANPUR CITY”

It helps to study to all activities which can be used to influence

large number of customers so as to increase the sales of the Amul milk

effectively.

5

CHAPTER - 2

INDUSTRY &

COMPANY PROFILE

6

7

INDUSTRY PROFILE

The World Dairy Situation :-

Acoording to a report published by International Dairy Fedration

(IDF) on the World Dairy Situation, the worldwide milk production is

expected to grow at a slower pace and is estimated at 655 million tonnes.

The strongest growth would be in Asia, notably in China and India. Milk

production is projected at 36 million tonnes in China and 94.60 million

tonnes in India. India would continue to be the largest milk producer,

followed by the US, with projected of 82.60 million tonnes.

Major changes are not expected in dairy products basket. Industrial

cheese production is continuing to grow. The major cheese producing

regions are Europe and North America and both areas are expected to have

a faster growth rate.

The production of condensed and evaporated milks is subject to a

declining trend for many years in the developed market. It has been

replaced by many other dairy products, especially liquid milks of UHT type,

coffee cream and coffee whitener including some of the non-dairy origin.

The recovery is due to prosperity resulting from economic demand.

However, the bullish price situation is not likely to continue long and

would level down.

8

In established markets, the potential for demand to reduce slightly can

release the additional supplies, which are needed to maintain the growth of

trade.

Indian Dairy Industry - A Profile:-

India’s dairy sector is expected to triple its production in the next 10

years in view of expanding potential for export to Europe and the West.

Moreover with WTO regulations expected to come into force in coming

years all the develop countries which are among big exporters today would

have to withdraw the suport and subsidy to their domestic milk product

sector.

Also India today is the lowest cost producer of per litre of milk in

the world, at 27 cents, compared with the US’63 cent. Also to take

advantage of this lowest cost of milk production and increasing production

in the country multinational companies are planning to expand their

activities here. Some of those milk producres have already obtained quality

standrad certificates from the authorities. This will help them in marketing

their products in foreign countries in processed from.

The urban market for milk products is expected to grow at an

accelerated pace of around 33% per annum to around ` 83,500 crores by

year 2010. This growth is going to come from the greater emphasis on the

processed food sector and also by increase in the conversation of milk into

milk products. By 2010, the value of Indian dairy produce is expected to

be ` 10,00,000 million. Presently the market is valued at around ` 7,00,000

million.

9

Co – operative Unions:-

Backward integration of the process led the co-operatives to advance

in animal husbandry and veterinary practice. The system succeeded mainly

because it provides an assured market atremunerative 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 of the

participants for their socio-economic upliftment and common good.

Recently the Indian co-operative movement got a much needed facelift.

With competition snapping at its heels, the sector which has been governed

by arcane laws until the recent past will see a special provision inserted in

the companies Act, 1956. All the co-operative unions will be re-christened

co-operative companies; they will come under the pureview of the registar

of companies, instead of the registrar of co-operatives.

Dairy co-operatives account for the major share of procesed liquid

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

producer’s co-operative unions, which fedration into 15 State Co-Operative

Milk Marketing Federations.

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

functioning of dairy co-operatives, as producer-owned and controlled

organizations. National Dairy Development Board (NDDB) supports the

development of dairy co-operatives by providing them financial assistance

and technical expertise, ensuring a better future for India’s farmers.

10

Some of the major dairy co-operative federation include :

• Andhra Pradesh Dairy Development Co-operative Federation Ltd.

(APDDCF)

• Bihar State Co-operative Milk Federation Ltd. (BCOMPFFD)

• Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF)

• Haryana Dairy Development Co-operative Federation Ltd. (HDDCF)

• Himachal Pradesh State Co-operative Milk Producers Federation Ltd.

(HPSCMPF)

• Karnataka Co-operative Milk Producers Federation Ltd. (KMF)

• Kerala State Co-operative Milk Marketing Federation Ltd. (KCMMF)

• Madhya Pradesh State Co-operative Dairy Federation Ltd. (MPCDF)

• Maharashtra Rajya Sahkari Maryadit Dugdh Mahasangh (Mahasangh)

• Orissa State Co-operative Milk Producers Federation Ltd. (OMFED)

• Pradeshik Co-operative Dairy Federation Ltd. (UP) (PCDF)

• Punjab State Co-operative Milk Producers Federation Ltd. (MILKFED)

• Rajasthan Co-operative Dairy Federation Ltd. (RCDF)

• Tamil Nadu Co-operative Milk Producers Federation Ltd. (TCMPF)

The Dairy Co-operative Networks:-

• Include 170 milk unions,

• Operates in over 338 districts,

• Covers nearly 1,08,574 village societies level,

• Is owned by nearly 12 million’s farmer members.

Apart from making India self-sufficient in milk, these dairy co-operatives

have established our country as the largest milk producing nation in the

world.

11

COMPANY PROFILE (The Organization)

Introduction & History:-

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 PRODUCER’S UNION.

This union selected the brand name AMUL in 1955.

The brand name “AMUL” means “AMULYA”.

The word “AMUL” (vewy) is derived from the Sanskrit word “AMULYA”

(vewY;) was suggested by a quality control expert in Anand, 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, Amul Spray,

Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice-cream,

Nutramul, Amul Milk and Amulya have made Amul a leading food brand

in India. (Turnover: ` 80.05 billion in 2009-10). 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 survey of a farmer’s organization and have a

proven model for dairy development. (Generally known as “ANAND

PATTERN”).

12

In the early 40’s, the main source 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 the milk

was Polson Dairy Limited, which was a privately owned company and

held monopoly over the supply of milk at Bombay from the Kaira

District. This system leads to exploitation of poor and illiterates’ farmers

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

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

However, when the exploitation became intolerable,

the farmers were frustrated. They collectively appealed to Sardar

Vallabhbhai Patel, who was a lading 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.

13

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 Government should be asked to buy

milk from the union.

However, the Government 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 Government 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 co-operatives unions were forced at the village and

district level to collect and sell milk on co-operatives 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-operatives unions at the village level.

The Kaira District milk producer’s 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 every day.

But with the growing awareness of the benefits of the co-operatives, the

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

every day. 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.

14

To overcome this problem the union thought out to develop the

chilling unit at various junctions, which would collect the milk and could

chill, 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

Government of New Zealand under the Colombo plan, of ` 50 million’s 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 d airy on November 20, 1955.

PEOPLE POWER: AMUL’S SCERET OF SUCCESS

15

The system succeeded mainly because it provides an assured market

at remunerative prices for producer’s 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:

1. Produce an appropriate blend of the policy makers’ farmers’ board of

management and the professionals: each group appreciating its routes and

limitations.

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

technology and harness its fruit for betterment. 16

3. Provide a support system to the milk producers without disturbing their

agro-economic systems.

4. 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

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

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

artifical insemination service, veterinary care, better feeds and the like – all

through the village societies. Basically the union and co - operation of

people brought Amul into fame i.e. AMUL (ANAND MILK UNION

LIMITED), a name which suggest THE TASTE OF INDIA.

AMUL (Anand Milk Union Ltd.) is based on four hands, which are

co-ordinated with each other. The actual meaning of this symbol is co-

ordination of four hands of different people by whom this union is at the

top position in Asia.

• First hand is of farmers, without whom the organization would not

have existed.

• Second hand is of processors, who process the raw material (milk)

into finished goods.

• Third hand is of marketer, without whom the product would have not

reached the customers.

• Fourth hand is of customers, without whom the products would have

not carried on.

17

The Amul Model

The Amul Model of dairy development is a three-tiered structure with the

dairy co-operative societies at the village level federated under a milk

union at the district level and a federation of member unions at the state

level.

• Establishment of a

direct linkage

between milk

producers and

consumers by

eliminating

middleman

• Milk Producers

(farmers) control

procurement,

processing and

marketing

• Professional

management

18

The Amul model has helped India to emerge as the largest milk

producer in the world. More than 15 million milk producers pour their

milk in 1,44,246 dairy cooperative societies across the country. Their milk

is processed in 177 District Co-operative Unions and marketed by 22 State

Marketing Federations, ensuring a better life for millions.

19

THE THREE TIER STRUCTURE

The 1st Tier – Primary Village Co-operative Society:

An Anand Pattern village Dairy Co-operative Society (DCS) is formed by

milk producers. Any producer can become a DCS member by buying a

share and committing to sell milk only to the society. Each DCS has a

milk collection Centre where members take milk every day. Each

member’s milk is tested for quality with payments based on the

percentage of FAT and SNF. At the end of each year, a portion of the

DCS profits is used to pay each member a patronage bonus based on the

quantity of milk poured. This also acts as a vital link for various

productivity enhancement and development programmes of farmers

programmes.

20

The 2nd Tier – District Union:

A District Co-operative Milk Producers’ Union is owned by dairy co-

operative societies. It is a Union of primary village co-operative societies

within a district. The Union buys all

the societies’ milk, then processes and

markets fluid milk and products. Union

also provides a range of inputs and

services to village co-operative societies

and their members: feed, veterinary

care, artificial insemination to sustain

the growth of milk production and the co-operatives’ business. Union

staff train and provide consulting services to support village co-operative

society leaders and staff.

The 3rd Tier – The State Federation:

The Co-operative milk producers’ unions

in a state from a State Federation which

is an apex marketing body responsible

for marketing of milk products of

members union. The Federation also

plays a role in the overall development

of the district unions federated to it.

Maximizing farmer profit and productivity through co-operative effort

is the hallmark of the Anand Pattern.

21

G.C.M.M.F. Overview:

Gujarat Co-operative Milk Marketing Federation (GCMMF) is India’s

largest food products marketing organization. It is a state level apex body

of milk co-operatives 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.

Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) is the

largest Organization in FMCG industry engaged in marketing of milk &

milk products under the brand names of AMUL and SAGAR with an

annual turnover exceeding ` 5,000 Crores. GCMMF is a unique

organization. It is a true testimony of synergistic national development

through the practice of modern management methods.

Vision:-

GCMMF will be an outstanding marketing organization, with specialization

in marketing of food and dairy products both fresh and long life with

customer focus and IT integrated. The network would consist of over 100

offices, 7500 stockiest covering at least every Taluka. Head quarter

servicing nearly 10 lakhs outlets with turnover of ` 10,000 crore and

servicing several co-operatives. GCMMF shall also create markets for its

products in neighboring countries.

Mission:-

We at GCMMF endeavor to satisfy the taste and nutritional requirements

of the customers of the world through excellence in the marketing by our

committed team. Through co-operative networking, we are committed to

offering quality that provides best value for money.

22

CRISIL Rating for GCMMF

Credit Rating Report Gujarat Co-operative Milk Marketing Federation Limited

` 229 Million Cash Credit CRISIL AAA/Stable (Reaffirmed)

` 5 Billion Bill Discounting CRISIL A1+ (Reaffirmed) ` 300 Million Short-Term Bank Facility CRISIL A1+ (Reaffirmed) ` 80 Million Inland Guarantees CRISIL A1+ (Reaffirmed) ` 80 Million Inland/Import Letter of Credit CRISIL A1+ (Reaffirmed)

Year of Establishment 1973

Members 17 District Co-operative Milk Producers’ Unions (16 Members & 1 Nominal Member)

No. of Producers Members 3.18 million

No. of Village Societies 16,117

Total Milk Handing capacity per day

13.67 million liters per day

Milk collection (Total - 2011-12)

3.88 billion liters

Milk collection (Daily Average 2011-12)

10.6 million liters (peak 13 million)

Milk Drying Capacity 647 Mts. Per day

Cattle feed manufacturing Capacity

3690 Mts. Per day

Sales Turnover (2011-12) ` 11,668 Crores (US $ 2.5 Billion)

23

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 of Chocolate,

Nutramul, Amul Ganthia and Amul Lite.

24

Third plant is at Kanjari, which produces cattelfeed.

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

25

Today, twelve dairies are producing different products under the brand name

Amul.

Amul Dairy, Anand: 17.00 LLPD Dudhsagar Dairy, Mehsana: 22.00 LLPD

Sabar Dairy, Himatnagar: 15.00 LLPD Banas Dairy, Palanpur: 22.00 LLPD

Sumul Dairy, Surat: 10.00 LLPD Pancharmrut Dairy, Godhra: 4.00 LLPD

26

Gopal Dairy, Rajkot: 2.50 LLPD Dudhmansagar Dairy, Manesar: 10.00 LLPD

Vasudhara Dairy, Boisar: 4.00 LLPD Vasudhara Dairy, Valsad: 3.00 LLPD

Vidya Dairy, Anand: 1.00 LLPD Mother Dairy, Gandhinagar: 25.00 LLPD

27

Amul Whey Powder Plant, Khatraj Amul Paneer Plant, Khatraj

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.

28

ORGANISATION STRUCTURE

29

It all started in December 1946 with a group of farmers keen to free

themselves from intermediaries, gain access to markets and thereby ensure

maximum returns for their efforts. Based in the village of Anand, the

Kaira District Milk Co-operative Union (better known as Amul) expanded

exponentially. It joined hands with other milk co-operatives, and the

Gujarat network now covers 3.12 million farmers, 13,411 village level

milk collection centers and fourteen district level plants (unions) under the

overall supervision of G.C.M.M.F.

There are similar federations in other states. Right from the beginning,

there was recognition that this initiative would directly benefit and

transform small framers and contribute to the development of society.

Markets, then and even today are primitive and poor in infrastructure.

Amul and GCMMF acknowledge that development and growth could not

be left to market forces and that proactive intervention was required. Two

key requirements were identified.

The first, that sustained growth for the long term would depend on

matching supply and demand. It would need heavy investment in the

simultaneous development of suppliers and consumers.

Second, that effective management of the network and commercial viability

would require professional managers and technocrats. To implement their

vision while retaining their focus on farmers, a hierarchical network of co-

operatives was developed, this today forms the robust supply chain behind

GCMMF’s endeavors’. The vast and complex supply chain stretches from

small suppliers to large fragmented markets. Management of this network

is made more complex by the fact that GCMMF is directly responsible

only for small chain, with a number of third party players (distributors,

retailers and logistics support providers) playing large roles. Managing this

30

supply chain effectively is critical as GCMMF’s competitive position is

driven by low consumer prices supported by a low cost system.

Organization Structure is divided into two parts:-

External Organization Structure,

Internal Organization Structure.

External Organization Structure :

External Organization Structure is the organization structure that affects the

organization from the outside.

As we know, GCMMF is unit of Gujarat Milk Marketing Federation,

which is a co-operative organization. The villagers of more than 10,000

villages of Gujarat are the bases of this structure. They all make village

milk producers union, district level milk producers union and then a state

level marketing federation is established. This structure is line relationship,

which provides easy way to operation. It also provides easy way to

operation. It also provides better communication between two stages.

Village Milk Product Union Ltd.

Villagers

District Milk Product Union Ltd.

State Level Marketing Federation

31

Internal Organization Structure :

The following is internal organization chart of Amul.

Organization Structure Chart

Managing Director

General Manager

Ass. General Manager

Finance Dept.

Production Dept.

Marketing Dept.

Sales & Purchase

Dept.

PersonnelDept.

Senior Manager

Senior Manager

Senior Manager

Senior Manager

Senior Manager

Finance Manager

ProductionManager

MarketingManager

Sales Manager

Personnel Manager

Accountant Officer Marketing Executive

Officer P.R.F.

Officers Supervisor F.S.R. Executive

Salesma 32

BOARD OF DIRECTORS

SHRI PARTHIBHAI G. BHATOL

chairman

Gujarat co-operative milk marketing federation ltd.

chairman

Banaskantha district co-operative milk producer’s union ltd. Palanpur

SHRI RAMSINHBHAI P. PARMAR SHRI VIPULBHAI M. CHAUDHARY

Chairman Chairman

Kaira district co-operative milk Mehsana district co-operative milk

Producers’ union ltd., anand producers’ union ltd., mehsana

SHRI JETHABHAI P. PATEL SHRI MANSINHBHAI K. PATEL

Chairman Chairman

Sabarkantha district co-operative milk Surat district co-operative milk

Producers’ union ltd., himatnagar Producers’ union ltd., surat

SHRI NARENDRABHAI M. PATEL (MUKHI) SHRI MOHANBHAI R. BHARWAD

Chairman Chairman

Baroda district co-operative milk Ahmedabad district co-operative

Producers’ union ltd., baroda Milk Producers’ union ltd.,

Ahmedabad

SHRI JETHABHAI G. AHIR (BHARWAD) SHRI MOGHABHAI M. DESAI

Chairman Chairman

Panchmahal district co-operative milk Valsad district co-operative milk

Producers’ union ltd., godhra Producers’ union ltd., alipur

SHRI R.S. SODHI

Managing Director

33

SHRI GOVINDBHAI S. RANPARIYA DR. SHANKARSINH R. RANA

Chairman Chairman

Rajkot district co-operative milk Gandhinagar district co-operative

Producers’ union ltd., Rajkot Milk Producers’ union ltd.,

Gandhinagar

SHRI GHANESHYAMBHAI J. PATEL SHRI VIHABHAI’S SABHAD

Chairman Chairman

Bharuch district co-operative milk Surendranagar district

Producers’ union ltd., Bharuch Co-operative Milk Producers’

union ltd., Wadhwan

SHRI MAHENDRABHAI A. PANOT SHRI ASHVINBHAI M. SAVALIYA

Chairman Chairman

Bhavnagar district co-operative milk Amreli district co-operative milk

Producers’ union ltd., Sihor Producers’ union ltd., Amreli

DR. AMRITA PATEL SHRI DILIPBHAI RAVAL

Invitee member registrar

Chairman co-operative societies, Gujarat

National dairy development board, anand

34

Production Function:

Explosion of the production technology and changes in technical

field is going to bring out revolution in the industry sector which

eventually gives stand to study and favors the come backing subject i.e.,

production and management.

Production and operation management is planning, organizing,

staffing, directing and controlling of all the production system those

portion of organization that convert inputs into products and services. In

general production system takes raw material, personnel, machines,

buildings and other resources and produce products and services.

The core of production system is its conversion subsystem where in

workers; raw materials are used to convert inputs into products and

services. This production department is at heart of the firm, as it is able

to produce low cost products and superior quality in timely manners.

Thus, there arises enormous need of giving due importance to this

department as a whole and a strong concrete base being foundation

pillars of a manufacturing organization, if the intention is to succeed

domestically and globally.

Operating Analysis:

Amul’s only source of raw material is Village Milk Societies. Milk is

bought from such village milk societies every morning and evening. This

milk is then sent to the dairy plant. In the dairy plant the milk is

processed i.e., it is made free from germs.

35

Milk Processing:

The entire process of milk can be divided into following steps:

STEPS:

Milk Processing Chart

Collection Of Raw-Milk

Purchasing & Standardizing

Process

Separation Process

Quality Check

Packaging Process

Cold Storage

Eloctronic Milk Test

Methyline Blue Reduction Test

36

Developing Demand:

At the time Amul was formed, consumers had limited purchasing

power, and modest consumption levels of milk and other dairy products.

Thus, Amul adopted a low-cost price strategy to make its products

affordable and attractive to consumers by guaranteeing them value for

money.

The Distribution Network:

Amul products are available in over 500,000 retail outlets across

India through its network of over 3,500 distributors. There are 47 depots

with dry and cold warehouses to buffer inventory of the entire range of

products.

GCMMF transacts on an advance demand draft basis from its

wholesale dealers instead of the cheque system adopted by other major

FMCG companies. This practice is consistent with GCMMF’s philosophy of

maintaining cash transactions throughout the supply chain and it also

minimizes dumping. The just-in-time inventory strategy improves dealers

Return on Investment (ROI). All GCMMF branches engage in route

scheduling and have dedicated vehicle operations.

37

Consumers expect marketers to deliver products in the locations and

forms they require. To meet expectations of such demanding consumers,

alignments of our four Distribution Highways of Fresh, Chilled, and Frozen

and Ambient products were already made by introducing project DIL.

Subsequently, a major initiative was taken to enhance distribution network to

smaller towns. About 1200 distributors in small towns across India were

added during this initiative. Today about 3000 Distributors ensure

availability of our products across India, whether it is in Leh or

Lakshadweep, in Kutch or Arunachal. Simultaneously, to augment fresh milk

distribution in various markets of India, approximately 1400 exclusive Milk

Distributors have been inducted.

Distribution Process

COMPANY

DEALER

WHOLESELLER

RETAILER

SHOPKEEPER

FRANCHISEE

CONSUMERS

38

GCMMF’S SUPPLY CHAIN

Farmers

Village Co-operative

Societies (with Chilling units)

Village Co-operative

Societies (without Chilling

Local Restaurants/

Other Milk related

businesses

Milk Sold to Village &

Local Residents

Chilling Plants

Milk Processing Union &

Warehouses

GCMMF Warehouses

Wholesalers/C&S

Network Services ::

Veterinary Services

Animal Husbandry

Animal Feed Factory

Milk Can Producers

Agriculture university

Rural Management Institute

Trucking Facilities

Retailers Home Delivery

Contractor

CONSUMERS CONSUMER

39

AMUL has the largest cold chain network in India (i.e. 18,000

refrigerators) as compared to any other company. The chemical components

of milk are water, SNF and solids. Milk is very perishable product so it

has to be consumed within 24 hours. In order to avoid wastage AMUL

converts the milk in to SNF and milk solids by evaporating the water,

which comprises up to 60-70% of milk contents. This is possible only if

the distribution channel right from the producer to the consumer is well

organized. It will be surprising to know that AMUL makes even the

‘Sarpanch’ to eat pizza i.e., it supplies pizzas even to rural market.

Last year, they divided the retail market into 14 specific segments to

achieve further distribution efficiency. This year our focus was on inducting

distributions having expertise in servicing such specific market segments.

This initiative is yielding by way of ensuring wider availability of our

product range.

The role of distributors in our business process has never been more

diverse or more important, as it is today. As a matter of fact, we consider

our Distributor to be the real “Marketing Managers” of our organization. To

enhance business performance of our Distributors, a workshop on Marketing

and Sales Management was designed in collaboration with a premier

business school. The objective of the entire initiative was to upgrade the

knowledge of our Distributors in terms of contemporary Business

Management Practices, so that they can perform well not only as our

business partner but also as Marketing Managers. During the year, 659

Distributors have undergone this program in 39 locations.

To get an exposure to our co-operative structure, our culture as well

as operational systems and processes, every year we invite our distributors,

major retailers and other business partners to Anand, for Amul, for Amul

40

Yatra. So far, about 7,000 distributors and other business partners have

participated in this Amul Yatra.

Over recent years, the Federation has successfully introduced new

product lines. This year, in order to leverage their distributions network

strengths, to optimize market supervision expenditures, to achieve increasing

efficiency while keeping the distribution infrastructure lean, focused and

productive, the Federation amalgamated its different distribution networks.

Today, they operate an efficient distribution infrastructure consisting

of 46 sales offices, catering to 3,000 distribution and 5 lakh retailers.

Almost every Federation stockiest has visited Anand to participate in a

unique program called ‘Amul Yatra’. During this program, stockiest are

exposed to the Federation Philosophy, the culture of co-operation, as well as

operational systems and processes.

First hand is of

FARMERS, without whom the organization would not

have existed.

Second hand is of

PROCESSORS, who process the raw material

(milk) into finished goods.

Fourth hand is of CUSTOMERS, without

whom the product would have not carried on.

Third hand is of

MARKETERS, without whom the product would

have not reached the customers.

41

Sales Turnover:

Sales turnover of GCMMF’s from 1994-95 to 2011-12 .

Sales Turnover ` (in millions) US $ (in millions)

1994 - 1995 11,140 355

1995 - 1996 13,790 400

1996 - 1997 15,540 450

1997 - 1998 18,840 455

1998 - 1999 22,192 493

1999 - 2000 22,185 493

2000 - 2001 22,588 500

2001 - 2002 23,365 500

2002 - 2003 27,457 575

2003 - 2004 28,941 616

2004 - 2005 29,225 672

2005 - 2006 37,736 850

2006 - 2007 42,778 1,050

2007 - 2008 52,554 1,325

2008 - 2009 67,113 1,504

2009 - 2010 80,053 1,700

2010 - 2011 97,742 2,172

2011 - 2012 1,16,680 2,500

42

43

Umbrella Brand

An umbrella brand is a brand that covers diverse kinds of products

which are more or less related. It applies also to any company that is

identified only by its brand and history. It is contrasted with individual

branding in which each product in a portfolio is given a unique identified

and brand name.

The network follows an umbrella branding strategy. Amul is the

common brand for most product categories produced by various unions:

liquid milk, milk powders, butter, ghee, cheese, cocoa products, sweets, ice-

cream and condensed milk. Amul’s sub-brands include variants such as

Amul spray, Amulya and Nutramul. The edible oil products are grouped

around Dhara and Lokdhara, mineral water is sold under the Jal Dhara

brand while fruit drinks bear the Safal name.

Amul has high brand equity and umbrella branding of Amul has

helped the company in bigger sense. Amul’s brand name has helped its

other also like Mitahi made, Amul Ice creams, chocolates, Amul kool etc.

So umbrella Brand, Amul is used to build and offer value to customers in

higher sense. Amul has explored various available opportunities to reach to

mass customers. The brand value of Amul will surely help company to

maintain the status of largest food brand in India at least for sometimes in

future.

By insisting on an umbrella brand, GCMMF not only skillfully

avoided inter-union conflicts but also created an opportunity for the union

members to co-operate in developing products. Amul’s strategy of using

“Umbrella branding” has really paid off. Amul’s advertising and

marketing spend has never exceeded 1% of its revenues.

44

Amul’s creative in the form of billboards or the Taste of India

campaign have always managed to evoke a larger-than-life brand feel,

consistency and spirit of Indian culture in a contemporary way.

Managing the Supply Chain:

Even though the co-operative was formed to bring together farmers,

it was recognized that professional managers and technocrats would be

required to manage the network effectively and make it commercially viable.

Co-ordination:

Given the large number of organizations and entities in the supply

chain and Decentralized responsibility for various activities, effective

coordination is critical for efficiency and cost control. GCMMF and the

unions play a major role in this process and jointly achieve the desired

degree of control.

45

Buy in form the various is assured as the plans are approved by

GCMMF’s board. The board is drawn from the heads of all the unions, and

the boards of the unions comprise of farmers elected through village

societies, thereby creating a situation of interlocking control.

The federation handles the distribution of end products and

coordination with retailers and the dealers. The unions coordinate the supply

side activities. These include monitoring milk collection contractors; the

supply of animal feed other supplies, provision of veterinary services, and

educational activities.

Establishing Best Practices:

A key source of competitive advantage has been the enterprise’s

ability to continuously implement best practices across all elements of the

network: the federation, the unions, and the village societies and the

distribution channel.

In developing these practices, the federation and the unions have

adapted successful models from around the world. It could be the

implementation of small group activities or quality circles at the federation.

Or a TQM program at the unions. Or housekeeping and good accounting

practices at the village society level.

More important, the network has been able to regularly roll out

improvement programs across to a large number of members and the

implementation rate is consistently high.

For example: every Friday, without fail, between 10:00 A.M to 11:00

A.M, all employees of GCMMF meet at the closest office, be it a

department or a branch or a depot to discuss their various quality concerns. 46

Each meeting has its pre-set format in terms of Purpose, Agenda and

Limit (PAL) with a process check at the end to record how the meeting

was conducted. Similar processes are in place at the village societies, the

unions and even at the wholesaler and C&F agent level as well.

Examples of benefits from recent initiatives include reduction in

transportation time from the depots to the wholesale dealers, improvement in

ROI of wholesale dealers, improvement in ROI of wholesale dealers,

implementation of Just-in-Time in finance to reduce the float.

Kaizens at the unions have helped improve the quality of milk in

terms of acidity and sour milk. (Undertaken by multi-disciplined teams,

Kaizens are highly focused projects, reliant on a structured approach based

on data gathering and analysis.) For example, Sabar Union’s show a

reduction from 2.0% to 0.5% in the amount of sour milk/curd received at

the union.

Technology and E-initiatives:

47

GCMMF’s technology strategy is characterized by four distinct

components: New Products, Process Technology, and compulsory assets to

enhance milk production and commerce.

Few dairies of the world have the wide variety of products produced

by the GCMMF network. Village societies are encouraged through subsidies

to install chilling units. Automation in processing and packing areas is

common, as is HACCP certification. Amul actively pursues developments in

embryo transfer and cattle breeding in order to improve cattle quality and

increases in milk yields.

GCMMF was one of the first FMCG (Fast Moving Consumer

Goods) firms in India to employ Internet Technologies to implement B2C

commerce. Today customers can order a variety of products through the

Internet and be assured of timely delivery with cash payment upon receipt.

Another e-initiative underway is to provide farmers access to

information relating to markets, technology and best practices in the dairy

industry through net enabled kiosks in the villages.

GCMMF has also implemented a Geographical Information System

(GIS) at both ends of the supply chain, i.e. milk collection as well as the

marketing process. Farmers now have better access to information on the

output as well as support services while providing a better planning tool to

marketing personnel.

48

LIST OF PRODUCTS MARKETED

49

50

51

52

NEW PRODUCTS

53

54

The Top 10 Companies In FMCG Sector

Sr. No. Companies

1. Hindustan Unilever Ltd.

2. ITC (Indian Tobacco Company)

3. Nestle India

4. GCMMF (AMUL)

5. Dabour India

6. Asian Paints (India)

7. Cadbury India

8. Britannia Industries

9. Procter & Gamble Hygiene and Health Care

10. Marico Industries

55

AMUL COMPETITORS

Product Range Competitor

Butter Britannia, Nestle

Cheese Britannia

Baby Food Nestle, Heniz

Dairy Whitener Segment Nestle, Britannia

Sweet Condensed milk Nestle

Ultra High Treated Milk Nestle, Britannia

Ice-crams HLL

Cottage Cheese (Paneer) Britannia

Milk Additives Smithkline Beecham,

Cadbury

Flavored Milk Britannia , Nestle

Chocolates &

Confectionaries

Cadbury, Nestle

Pizza Pizza Hut, Dominos

Curd Nestle, Mother dairy

56

Managing Competition:

The Indian market is dominated by a large number of small

local and regional players. There are an estimated 150 manufactures in the

organized segment, which accounts for 30-35% of sales and about 1000

units in the unorganized segments of the market. In the organized segment

the significant brands are Mother Dairy, Britannia, Nestle, Heniz, AMUL,

HLL, Cadbury, Pizza Hut, Dominos, Smithkline Beecham. GCMMF is facing

very tough competition from both in and outside India.

Amul combats competition from its competitors by providing

quality products at a price which its customers value. Along with good

quality products and reasonable price the packaging is also very good. Most

of its products are available in many flavors. Excellent advertising backs its

products and helps GCMMF (AMUL) to leave its competitors a tough time.

Also Amul has come out with Amul Parlours to cater to various segments

of customers. Amul has a very strong Brand Image in the Domestic Market.

Many Products are exported by GCMMF.

Advertising by AMUL:

Amul has two agencies that look after its entire range of products namely FCB Ulka and Da Cunha.

57

FCB Ulka looks after the corporate campaign. FCB Ulka also

looks a broad range of products namely, Amul Lite Bread Spread, Amul

Shrikhand, Amul Chocolates, Amul Paneer, Amul Snow Cap Softy Mix Ice-

cream, Amul/Sagar Ghee, Amul Infant Milk Formula 1 & 2, Sagar Tea and

Coffee Whitener, Amul Spray Infant Milk Food, Amul Mithaee, Amul

Gulab Jamun, Amulya Dairy Whitener, Mithaimate Sweetened milk, Amul

Ice-cream, Sagar Skimmed Milk Powder and Amul Whole Milk Powder.

Da Cunha looks after the Amul Butter. Da Cunha also prepares

the very popular Amul butter billboard campaigns, which we see at various

locations. Over and above the Amul Butter, Da Cunha also looks after the

Amul Cheese, Cheese Spread, Gouda Cheese, Emmental Cheese, Masti Dahi

and Buttermilk, Amul Slim-n-Trim, Amul Taaza And Amul Gold (all

different brands of milk), Amul Fresh Cream, Amul Chocolate milk, Amul

Fresh Milk and Nutramul.

58

SWOT Analysis of Amul

• Demand profile, • Flexibility of product mix, • Technical manpower, • Trust enjoyed by its products, • Strong co-operative organization, • Introduced Total Quality Management (TQM).

Strength

• Logistics of procurement, • Competition, • Short self life of its products, • Completely dependent on villages for its raw material, • Salaries offered is less compared to competitors.

Weakness

• Value addition, • Export potential, • Used internet to sell its products, • Introduced hybrid products in the market, • Exploring foreign markets.

Opportunities

• Milk vendors, the un-organized sector, • Strong competition from MNC's, • Competition from private dairies and local milk

suppliers, • The yield of Indian cattle still much lower than other

dairy countries.

Threats

59

CHAPTER - 3

ACHIEVEMENTS &

AWARDS

60

ACHIVEMENTS

Amul has always been the trend setter in bringing and adapting the most modern technology to door steps to rural farmers. Amul is the live example of how co-operation amongst the poor marginal farmers can provide means for the socio-economic development of the under privileged marginal farmers.

Amul created history in following areas:

a) First self-motivated and autonomous farmer’s organization comprising of

more than 50,00,000 marginal milk producers of Kaira District.

b) Created Dairy co-operatives at village level functioning with milk

collection centers owned by them.

c) Computerized milk collection system with electronic scale and

computerized accounting system.

d) The first and only organization in world to get ISO 9000 standard for

its farmers co-operatives.

e) First to produce milk from powder from surplus milk.

61

Amul Relief Trust (ART):

A devasting earthquake (Richter scale – 7.9) hit Gujarat on 26th January

2001. The epicenter of the quake was located in Kutch district. It caused

death of thousands of people, tens of thousands were injured, hundreds of

thousands were rendered homeless and damage of billions of Rupees was

done.

GCMMF formed a specific organization named “Amul Relief Trust” (ART)

under the Chairmanship of Dr. V. Kurien in 2001 with a donation of

` 50 Million’s for reconstruction of the school buildings damaged in the

2001 earthquake in the Kutch area.

The Trust reconstructed 6 schools damaged by the above earthquake at a

cost of ` 41.1 million’s in Kutch area. Four of these schools started

re-functioning from the last two academic sessions and the other two

schools from the current session.

62

1. A school reconstructed by Amul Relief Trust in

the earthquake affected Ratadia Village in

Mundra Taluka of Gujarat.

63

2. A school reconstructed by Amul Relief Trust in

the earthquake affected Nana Asalia Village in

Mundra Taluka of Gujarat.

64

3. A school reconstructed by Amul Relief Trust in

the earthquake affected Devpar Village in Mandvi

Taluka of Gujarat.

65

4. A school reconstructed by Amul Relief Trust in

the earthquake affected Toda Village in Mundra

Taluka of Gujarat.

66

5. A school reconstructed by Amul Relief Trust in

the earthquake affected Moti Bhadai Village in

Mandvi Taluka of Gujarat.

67

6. A school reconstructed by Amul Relief Trust in

the earthquake affected Kathada Village in

Mandvi Taluka of Gujarat.

68

CERTIFICATION AND AWARDS

69

70

AWARDS

1. 1985-86:: NATIONAL PRODUCTIVITY COUNCIL

PRODUCTIVITY AWARD

2. 1986-87:: NATIONAL PRODUCTIVITY COUNCIL

PRODUCTIVITY AWARD

3. 1987-88:: NATIONAL PRODUCTIVITY COUNCIL

PRODUCTIVITY AWARD

71

4. 1988:: INDIAN MERCHANT’S CHAMBER BOMBAY

AWARD::

5. 1991-92:: NATIONAL PRODUCTIVITY COUNCIL

PRODUCTIVITY AWARD

6. 1992-93:: NATIONAL PRODUCTIVITY COUNCIL

PRODUCTIVITY AWARD

7. 1993-94:: NATIONAL PRODUCTIVITY COUNCIL

PRODUCTIVITY AWARD

72

8. 1994-95:: NATIONAL PRODUCTIVITY COUNCIL

PRODUCTIVITY AWARD

9. 1995:: INDUSTRIAL GOOD HOUSE KEEPING CONTEST

GUJARAT STATE -

10. 1995-96:: NATIONAL PRODUCTIVITY COUNCIL

PRODUCTIVITY AWARD

11. 1996-97:: NATIONAL PRODUCTIVITY COUNCIL

PRODUCTIVITY AWARD

73

12. 1997-98:: BARODA PRODUCTIVITY COUNCIL

13. 1998-99:: NATIONAL PRODUCTIVITY COUNCIL

PRODUCTIVITY AWARD

14. 2004:: INDIAN CO-OPERATIVE CENTENARY

CELEBRATION : SHAKARI VIKAS RATNA AWARD

15. 2009:: NATIONAL ENERGY CONSERVATION AWARD

74

16. Amul Bags International Dairy Federation

Award:

On 28th April 2010, attended by over 150 dairy industry

representatives from all over the world Mr. Richard Doyle, President,

International Dairy Federation, presented an award to Shri Parthibhai Bhatol,

Chairman, and Dr. S. T. Desai, General Manager (Co-operative Services and

Administration), GCMMF (Gujarat Co-operative Milk Marketing Federation

Ltd.). The award was given to GCMMF (Amul) for the best environmental

initiative in the "sustainability category" during the 4th Global Dairy

Conference held from 27th April to 29th April 2010 at Salzburg Congress

Centre, Austria.

The inaugural awards programme attracted over 170 entries from 29

countries in 12 categories. The award has been given to Amul by IDF for

its environmental initiative for tree plantation.

On 15th August 2007 the milk producers of more than 15,000 village

dairy cooperative societies planted 18.9 lakh tree saplings across 19 districts

of Gujarat. On 15th August 2008 in which 52.74 lakh tree saplings were

planted. In the year 2009, again conducted tree plantation around 84.04 lakh 75

saplings. Hence in the last three years milk producers of Amul have planted

around 155.68 lakh tree saplings.

17. 2009:: Srishti G-cube Award For Good Green

Governance

Amul has bagged the prestigious Srishti G-Cube Award for Good

Green Governance in the service category. At a glittering function held

at New Delhi on April 22, 2010 H.E. Shri Muralidhar Chandrakant

Bhandare, Hon'ble Governor of Orissa presented the award. Shri D. K.

Bhatnagar, Asst. Manager (Admn. & Personnel), New Delhi received the

award on behalf of the Gujarat Co-operative Milk Marketing Federation

(marketing body of Amul) the apex marketing federation of 13 District

Milk Unions of Gujarat.

18. Amul Pro-Biotic Ice-cream Gets No. 1 Award

At World Dairy Summit

76

"Sh VK Singh, IAS, Managing Director, Punjab Cooperative Dairy

Federation accepting 2007 IDF Marketing Award from Sh Jim Begg,

President, International Dairy Federation for Amul Prolife Probiotic Ice

Cream on 3rd Oct 2007 at World Dairy Summit, Dublin, Ireland. Sh VK

Singh had kindly accepted award on behalf of GCMMF."

19. Amul receives Green Globe Foundation Award

The Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) -

India's largest food products marketing organization and apex body of dairy

cooperatives of Gujarat — has won the "Green Globe Foundation Award"

in the Manufacturing Category at the Delhi Sustainable Development

Summit 2012. Mr. R. S. Sodhi, Managing Director, GCMMF Ltd. received

the award in a glittering ceremony organized in association with TERI and

United Nations Environment Programme (UNEP) at the Taj Palace Hotel,

New Delhi on 2nd February, 2012.

77

20. International CIO 100 Award for Resourcefulness

___________________

AMUL - THE TASTE OF INDIA (GCMMF)

Receives

INTERNATIONAL CIO 100 AWARD FOR RESOURCEFULNESS

This CIO International IT excellence Award has recognized the

Cooperative Movement & its Leadership under the "Amul" brand, initiated

by Dr. V Kurien, Milkman of India, whose main Motto is to build Indian

Society economically & literally strong through innovative cooperative

resourceful network, so as to provide quality service & products to the end

consumers and good returns to the farmer members.

The Gujarat Co-operative Milk Marketing Federation (GCMMF)

has been honoured at the CIO 100 Symposium & Award Ceremony on

August 19, 2003, at the Broadmoor in Colorado Springs, Colorado, USA.

Shri Subbarao Hegde, Head of IT had been to USA and received the

said Award on behalf of GCMMF.

78

21. Rajiv Gandhi National Quality Award – 1999

After creating ripples in the market whether it be with a ` 20/-

Pizza or with a "real" Ice Cream, Amul has done it again. But this time,

it is not only for new product launches or giving a tough fight to best

of the food companies in extremely competitive segments, it has now

topped as the winner of the “Best of All” Rajiv Gandhi National

Quality Award for the year, 1999 .

22. AMUL VIDYA SHREE AWARD

79

Amul takes immense pleasure in presenting ‘The Amul Vidya Shree

Award’, India’s first of its kind award that recognizes and rewards

Standard X toppers across India. The ‘Amul Vidya Bhushan Award’, is

reward for Standard XII toppers across India.

The awards are:

• Trophy,

• Citation,

• A cash Award of ` 1,000/-

• The winner will be featured in one of India’s leading newspaper and

will get national recognition.

Amul in Abroad:

80

Amul is going places. Literally after having established its presence

in China, Mauritius and Hong Kong, Gujarat Co-operative Milk Marketing

Federation (GCMMF), India’s largest milk co-operative, is waiting to flood

the Japanese market.

Then, GCMMF is also looking at Sri Lanka as one of its next

export destinations. Amul products are already available on shelves across

several countries, including the US, China, Australia, West Asian countries

and Africa.

GCMMF recorded a turnover of ` 2,922 crore last fiscal. Its

products include pouch milk, Ultra Heat Treated (UHT) milk, ice-cream,

butter, cheese and buttermilk. It is India’s largest exporter of Dairy

Products. It has been accorded a “Trading House” status. GCMMF has

received the APEDA Award from Government of India for excellence in

Dairy Product Exports for the last 11 years.

Amul is available today in over 40 countries of the world. They are

exporting a wide variety of products. The major markets are the US, West

Indies, countries in Africa, the Gulf region, and our SAARC neighbour’s,

Singapore, Philippines, Thailand, Japan and China. They have demonstrated

that if a level playing field is granted, Indian dairy products are successful

in the global market. Growth in consumer pack exports has been creditable

and they consolidated their exports.

81

82

The major export products are:

Consumer Packs ::

• Amul Pure Ghee,

• Amul Butter,

• Amul Shrikhand,

• Amul Mithaee Gulabjamuns,

• Nutramul Brown Beverage,

• Amul Cheese,

• Amul Malai Panner,

• Amul Fresh Cream,

• Amul UHT Milk ( Long Life ) :

a.) Amul Gold Milk,

b.) Amul Taaza Double Toned Milk,

c.) Amul Lite Slim - n – Trim Milk,

Bulk Packs ::

• Amul Skimmed Milk Powder,

• Amul Full Cream Milk Powder.

Many of our products are now available in the USA, Gulf Countries and

Singapore.

Pricing Strategy

At a time was formed, consumers had limited purchasing power, and

modest consumption levels of milk and other dairy products. Thus Amul

adopted a Low-Cost Price strategy to make its products affordable and

attractive to consumers by guaranteeing them value for money.

83

Amul Hits of 2012-2013

84

CHAPTER - 4

RESEARCH METHODOLOGY

85

Objective of Project:

The main objective of the study can be listed as follows:

A. Primary Objective:

I. To find size of retail network of Amul Taaza in specific areas

of Kanpur city.

II. To find the problems faced by retailers in selling and storing.

III. To know consumer’s behavior on Amul Taaza.

IV. To collect the information about the competitor’s.

B. Secondary Objective:

I. To organize sales promotional activities to improve milk selling.

II. To generate and secure consumer awareness.

Scope of Project:

The study is carried out in Kanpur city so its scope is mainly limited to

Kanpur city.

It gives information about the size of the retail network.

It gives information about the services given by distributor to their

retailors.

It gives information about the competitor’s products.

It will serve consumer in better manner.

It provides suggestions to the company to improve their products sale.

It gives information about the sales promotional activities to improve

the milk sale.

86

RESEARCH METHDOLOGY:

The research was conducted from 7th Jan to 18th Feb, 2013.

The research includes meetings with the retailers, consumers and dealers.

It includes preparation of the questionnaire to be answered by above

people for knowing the competitive position of Amul Taaza in the

market. The views of the above parties were recorded in the research as

per the questionnaire set by us.

Research Approach:

The objective was to know the competitive position of Amul Taaza

in the milk market thus in order to successfully conduct the research the

unbiased opinion of the above parties was desirable. Thus we conducted

the research as the representative of Amul Company and sometimes the

representatives of the other company like Namaste India in order to have

an unbiased opinion of the concerned persons and it worked to achieve

our goal.

Research Design:

Descriptive Research is the research method used because

descriptive studies embrace a large proportion of market research. The

purpose is to provide an accurate snapshot of some aspect of the market

environment. Descriptive Research is more rigid than exploratory research

and seeks to describe users of a product, determine the proportion of the

population that uses a product, or predict future demand for a product.

As opposed to exploratory research, descriptive research should define

questions, people surveyed, and the method of analysis prior to beginning

data collection. In other words who, what, where, when, why and how

aspects of the research should be defined. 87

DATA COLLECTION TECHNIQUES:

Sources of Data:

a) Primary Data To collect primary data from Retailer’s & Customer’s Questionnaire

were used. Questionnaire was prepared very carefully so that it

proves to be effective in collecting the right information.

b) Secondary Data Secondary data collected from different websites. This secondary data

formed the conceptual background for the project. This secondary

data was compared with the primary data collected in area.

Research Instrument:

The research instrument was the structured questionnaire formulated

for the respondents. The questionnaire was different for the retailers &

dealers and for the consumers there was a different set of questionnaire.

Types of Questions:

The second important aspect in the designing a question is to

decide which type of question are to be used. Question can be classified

in various ways. Questionnaire contains following type information –

1. Open-ended Question

2. Dichotomous Question

3. Multiple-choice Question

88

Both the questionnaire consists of all three types of question.

Mostly all questions are multiple type questions. Dichotomous question

are few in number. There is only one open-ended type question.

Phrasing of Questions:

In questionnaire, I try to phrase the question in logical way. For

example I arrange question in sequence as personal information,

awareness data, usage data, and finally related to reason and satisfaction.

SAMPLING PLAN:

Sample Size:

The Sample Size was as follows:

SR. NO. RESPONDENTS TOTAL NO.

1. Retailor 169

2. Consumer 200

SAMPLING TECHNIQUE:

A Stratified Sampling technique was used. A different Stratum for

different type of respondent within every stratum the respondents was

selected as per convenience basis.

89

METHOD OF SURVEY:

Personal Interview:

It is direct form of investigation, involving face-to-face

communication with free feedback information. It offers a sense of

participation. It is more flexible form of data collection. Use of

unstructured, open-end questions is possible. Rate of refusal is low. Depth

interview is possible. Complex questions can be asked. The interview can

have questions to secure more information. Observation approach can be

combined to verify age, income, status, standard information. Visual aids

in the form of catalogues samples etc. can be used to get views,

opinions, and attitudes of responder.

Product for which Survey was conducted:

AMUL TAAZA

90

Product Details:

Product Name Amul Taaza

Description Pasteurized Milk Amul milk meets the PFA standard’s for the respective type of milk.

Packing Poly Pack- 175 ml, 500 ml, 1 Ltr.,

Product Specifications:

Composition

FAT (%) 3

SNF (%) 8.5

Product Features:

1. Amul milk is the most hygienic liquid milk available in

the market.

2. It is pasteurized in state-of-the-art processing plants

and pouch-packed to make it conveniently available to

consumers.

91

ANALYSIS AND STATISTICAL TECHNIQUE USED

Types of data analysis techniques used in the project:

Tabular Analysis

Graphical Analysis

Percentage Analysis

Area of Operation:

The areas of operation were the research was done are as follows:

• Yashoda Nagar

• Ratanlal Nagar

• Shyam Nagar

• Sanigawan

• Naubasta

• Kidwai Nagar

• Swaroop Nagar

• Saket Nagar

How the survey conducted to approach the outlets with the following

requirements in mind.

At Approach:

1. What type of shop it is ? (Bakery, General Store, )

2. Does it stock Amul Products ?

3. What other brands available in the shop ?

92

Secondary Level:

1. Whether it sells milk ? 2. If Yes, whether it sells Amul milk ? 3. Whether the company provides any promotional Support ?

Territory Level:

1. Which is the most selling milk in the market ? 2. Who supplies milk to your shop ? 3. Does the delivery of milk is on time ?

Others:

1. Types of schemes given to him. 2. What are the uses of milk ?

Addendum:

1. Outlets may include general stores, mithai shopes,

canteens etc. 2. These sectors were chosen because the company believed

that these segments could be the best potential buyers

for this product.

93

CHAPTER - 5

DATA ANALYSIS &

INTERPRETATION

94

DATA ANALYSIS FOR RETAILERS 1) Number of retailers stocking Amul Taaza Milk.

Answer No. of respondents Percentage Yes 55 33 % No 114 67 %

INTERPRETATION:

• The above graph indicates that 33% of the retailers are selling

Amul milk.

• It shows that Amul milk brand is popular among the retailers.

33 %

67 %

No. of respondents

Yes

No

95

2) Sizes of Amul Milk packets retailers preferred to store. (Out of 169 retailers only 55 were buying Amul milk)

Answer No. of respondents 175 ml 26 500 ml 23 1 ltr. 6

INTERPRETATION:

• The above graph indicates that most of the retailers preferred to

store 175 ml and 500 ml pouch of Amul Taaza milk as per the

customer demand.

• In case of 1 Ltr. Pouch’s there was very low customer demand.

26

23

6

0 5 10 15 20 25 30

175 ml

500 ml

1 Ltr.

No. of respondents

96

3) Reasons for Amul milk not stored by retailers. (Out of 169 retailers only 114 were not buying Amul milk)

Answer No. of respondents

Low Profit Margin 72 Low Distribution 8 No replacement for leakage 28 Others 6

INTERPRETATION:

• The above graph it is clear that half of the retailers were not

satisfied with Amul replacement and profit margin policy.

• Very less retailers complained about distribution network.

01020304050607080

Low ProfitMargin

Low Distribution No replacementfor leakage

Others

72

8 28

6

Amul milk not stored by retailers

97

4) Preference of retailer’s to milk brand.

Brands No. of respondents Percentage Amul 40 24 % Namaste India 77 46 % Mother dairy 15 9 % Paras 27 15 % Parag 5 3 % Others 5 3 %

INTERPRETATION:

• The above graph shows that the Namaste India is most preferable

brand in all it.

• Some retailers also prefers Namaste India, Mother Dairy.

Amul 24%

Namaste India 40%

Mother Dairy 9%

Paras 3%

Parag 2%

Others 3%

Amul

Namaste India

Mother Dairy

Paras

Parag

Others

98

5) Sources from where retailers get Amul Taaza Milk. (Out of 169 retailers only 55 were buying Amul milk)

Answer No. of respondents Percentage

Distributors 52 95 % Other Suplliers 3 5 %

INTERPRETATION:

• Almost all retailers said that they purchased milk from Amul

Distributors.

Distributor, 95%

Other Suppliers,

5%

Distributor

Other Suppliers

No. of respondents

99

6) Retailers satisfaction with Amul distributors. (Out of 169 retailers only 55 were buying Amul milk)

Answer No. of respondents Percentage

Yes 34 62 % No 21 38 %

INTERPRETATION:

• The above graph shows that most of the retailers were satisfied

with the service provided by the Amul distributors.

Yes 62%

No 38%

No. of respondents

Yes

No

100

7) Awareness among retailers about different schemes Sales Promotional Activities for Amul Taaza Milk.

(Out of 169 retailers only 55 were buying Amul milk)

Activities Aware Not aware Free Samples 37 18 Credit facility 49 6 Advertisements 50 5 Coupons 16 39 P-O-P Displays 41 14

INTERPRETATION:

• The above graph shows that retailers were aware about the sales

promotional activity that Amul carried out, but some respondents

were unaware about various activities.

• Most of the retailers were aware about advertisement and coupons

scheme during festivals.

• Most of the retailers were aware about the P-O-P displays.

37 49 50

16

41

18 6 5

39

14

0

10

20

30

40

50

60

Aware Not Aware

101

8) Interest of retailers in wholesale distributors of Amul Taaza Milk

Answer No. of respondents Percentage

Yes 27 16 % No 142 84 %

INTERPRETATION:

• The above graph represents the interest of the retailers to start

Amul Taaza Milk distribution. The questions asked to increase the

retail coverage.

• Most of the retailers were not interested.

• Only 16% of the retailers were ready to start Amul Taaza

distribution.

Yes 16%

NO 84%

No. of respondents

Yes

NO

102

9) Number of retailers aware about Amul Preferred Outlets (APO’s) and its benefits. (Out of 169 retailers only 118 were questioned as they had large store)

Answer No. of respondents Percentage

Yes 103 87 % No 15 13 %

INTERPRETATION:

• APO is the outlet where you get Amul milk and milk products and

it helps to increase the market share. This question asked to the

retailers who were strong enough in capital.

• From graph it can be interpreted that the awareness about APO is very low.

Yes 87%

No 13%

No. of respondents

Yes

No

103

10) Number of retailers interested in opening an Amul Parlor (APO’s). (Out of 169 retailers only 118 were questioned as they had large store)

Answer No. of respondents Percentage

Yes 15 13 % No 103 87 %

INTERPRETATION:

• The above graph represents that very less number of retailers were

interested to start Amul Parlor’s (APO’s).

Yes 13%

No 87%

No. of respondents

Yes No

104

11) Retailer’s expectation from Amul Taaza Milk. (Out of 169 retailers only 55 were buying Amul milk)

Attributes No. of respondents

Good Quality 7 Availability 23 Clear Packaging Date 25

INTERPRETATION:

• The question asked to the distributors where the Amul Taaza milk

is being sold, and tried to collect feedback of customers about

Amul Taaza milk.

• More customers were having complaints availability.

• Some customers were not happy with quality of milk.

7

25

23

0 5 10 15 20 25 30

Good Quality

Availability

Clear Packaging Date

No. of respondents Respondents

105

12) Ratings from retailers for attributes of Amul Taaza Milk. (Out of 169 retailers only 55 were questioned as they buying Amul milk)

Ratings Attributes

Quality Brand Image

Availability Packaging Profit Margin

Very Good 37 48 30 5 0

Good 13 7 15 10 2 Average 5 0 2 32 5 Bad 0 0 6 5 8 Very Bad 0 0 2 3 40 Total 55 55 55 55 55

0

5

10

15

20

25

30

35

40

45

50

Quality Brand Image Availabilty Packaging Profit Margin

37

48

30

5

0

13

7

15

10

2 5

0 2

32

5

0 0

6 5 8

0 0 2 3

40

Very Good Good Average Bad Very Bad

106

INTERPRETATION:

• QUALITY :: Most of the retailers were satisfied with Amul

Taaza milk quality.

• BRAND IMAGE :: The graph shows that Amul Taaza is having

good brand image.

• AVAILABILITY :: Most of the retailers were satisfied with the

Amul Taaza milk distribution.

• PACKAGING DATE :: Most of the retailers were not satisfied,

about leakage of the packet and they were facing a problem

regarding same.

• PROFIT MARGIN :: All retailers were not satisfied with the

Profit margin policy given by Amul Taaza Milk.

107

DATA ANALYSIS FOR CUSTOMERS

1) Number of customer purchasing Amul Taaza Milk.

Answer No. of respondents Percentage Yes 80 40 % No 120 60 %

INTERPRETATION:

• The above graph indicates that only 40% of the customers are

purchasing Amul Taaza milk.

• It shows that Amul Taaza milk brand is not too much popular

among the customers.

Yes 40%

No 60%

No. of respondents

Yes

No

108

2) Preferences of customers towards milk brands.

Brands No. of respondents Percentage Amul 30 15 % Namaste India 88 44 % Mother dairy 34 17 % Paras 22 11 % Parag 16 8 % Others 10 5 %

INTERPRETATION:

• The above graph shows that the Namaste India is most preferable

brand in all it.

• Some customers also prefers Amul, Mother Dairy and Paras.

Amul 15%

Namaste India 44%

Mother Dairy 17%

Paras 11%

Parag 8%

Others 5%

No. of respondents

Amul

Namaste India

Mother Dairy

Paras

Parag

Others

109

3) Number of customer’s aware about Amul Parlors (APO’s). (Out of 200 customers only 80 were questioned as they were buying Amul Taaza Milk)

Answer No. of respondents Percentage

Yes 12 15 % No 68 85 %

INTERPRETATION:

• The above graph shows that the awareness about Amul Parlor’s

(APO’s) is very low.

Yes 15%

No 85%

No. of respondents

Yes

No

110

4) Customer’s expectation from Amul Taaza Milk. (Out of 200 customers only 80 were buying Amul milk)

Attributes No. of respondents

Good Quality 20 Availability 46 Clear Packaging Date 14

INTERPRETATION:

• The question asked to the customers where the Amul Taaza milk is

being purchased, and tried to collect feedback of customers about

Amul Taaza milk.

• More customers were having complaints availability.

• Some customers were not happy with quality & clear packaging

date of Amul Taaza milk.

20

46

14

0 10 20 30 40 50

Good Quality

Availability

Clear Packaging Date

No. of respondents

Respondents

111

5) Ratings from customers for attributes of Amul Taaza Milk. (Out of 200 retailers only 80 were questioned as they buying Amul Taaza milk)

Ratings

Attributes Quality Brand

Image Availability Packaging

Very Good 36 60 30 20

Good 24 15 15 12 Average 20 5 10 25 Bad 0 0 16 15 Very Bad 0 0 9 8 Total 80 80 80 80

0

10

20

30

40

50

60

Quality Brand Image Availabilty Packaging

24

15 15 12

20

5 10

25

0 0

16 15

0 0

9 8

Very Good Good Average Bad Very Bad

112

INTERPRETATION:

• QUALITY :: Most of the customers were satisfied with Amul

Taaza milk quality.

• BRAND IMAGE :: The graph shows that Amul Taaza is having

good brand image.

• AVAILABILITY :: Most of the customers were satisfied with

the Amul Taaza milk distribution.

• PACKAGING DATE :: Most of the retailers were not satisfied,

about leakage of the packet and they were facing a problem

regarding same.

113

CHAPTER - 6

FINDINGS &

OBSERVATION

114

OBSERVATION FINDINGS

• Retailors:

Retailers are not interested because they don’t have storage facility

but if company provides them such facility they will be sale Amul

Taaza Milk.

Because of low profit margin almost all retailers are not interested

in Amul Taaza Milk selling.

On question, why retailers are not interested in selling of Amul

milk, it is found they were not happy with profit margin,

availability and replacement of leak pouches.

Retailers were selling different brands. Because they were able to

receive more margin from non-popularized brand that they could

not from well-known brands.

All retailers get Amul Taaza milk from company selected

distributors.

Measurable amount of retailers were not happy with the

distributors, because of frequent change in distributors.

Retailers go for other brands as Amul Taaza faces survival problem

in sunlight.

Most of the retailers were annoyed by the promotional tool

(coupon), as they complain of no communication by distributor.

I found that customers were complaining about the packaging

problem & leave availability.

115

When question came to retailers ratings towards Amul Taaza milk

ratings most of the respondents complained about profit margin and

leakage.

During research it is found that the mindset of consumers towards

Namaste India milk is very high and hence it has become a milk

market player. As from the sales of Namaste India pouch milk is

more than Amul Taaza milk.

Retailers also demand for the replacements for the damage due to

the spoilage of milk that they have to bear when the Amul milk

gets spoiled after the purchase.

• End Users : (Households)

Consumer’s preference for purchasing of liquid milk is mainly

based on quality, taste, availability, home delivery and freshness

respectively.

The awareness level of Amul Taaza milk in bulk users is around

75% to 80% but still only 15% are using Amul Taaza milk.

The preference of purchasing milk by the bulk users is mainly

quality, price and timely availability.

116

LIMITATIONS

This report had to work under several constraints and limitations. Some

of the key limitations are…..

Time period of the project was 6 weeks, which may not be enough

to understand the whole market.

Convenient Sampling was used as the mode of conducting the

research.

The psychology and temperament of a respondent play a significant

role. Some respondents are more sensitive as against others who

are more tolerant. A change in the composition of the respondents

can affect the answers adversely or favorably.

Respondents may not have been true in answering various questions

and may be biased to certain other questions.

The questionnaire mostly contained multiple choice questions,

therefore many respondents did not give a proper thought before up

the questions, and some even ticked things, which were not

applicable. Therefore, all this increased the bias.

117

CONCLUSION

Amul means different things to different people.

To a milk producer - A life enriching experience

To a consumer - Assurance of having wholesome milk

To a mother - A reliable source of nourishment for her child

To the country - Rural development and self-reliance

As we know that Amul is very big organization and market leader

in dairy products. It has maximum market share in Milk, Butter, Cheese

& Ice-cream which are its main/core products. But in case of local

market like Kanpur the Amul milk is not a popular product as compared

to other Amul Products. With the help of research, company can find out

its week points in Milk product and can increase its market share

through rectify mistakes. People have believed in Amul’s product and

they will accept it also if effective actions were taken.

The survey resulted into following conclusions :

Quality is the dominating aspect which influences consumer to

purchase Amul product, but prompt availability of other Milk brands

and aggressive promotional activities by others influences the

consumer towards them and also leads to increase sales.

In comparison to Amul Milk, the other players such as Namaste

India, Mother Dairy, Paras and Parag provide a better availability

and give competition to the hilt.

People are mostly satisfied with the overall quality of Amul Milk,

but for the existence in the local market Amul must use aggressive

selling techniques. 118

SUGGESTIONS & RECOMMENDATIONS

The Milk Products market has reached has reached Maturity stage in

India large number of Co-operatives having a variety of product range

has entered the market, thus there is one way for Amul to sustain their

milk business in the market by delivering outstanding satisfaction to their

retailers, so that they can take interest in selling of Amul milk products.

The survey resulted into following SUGGESTIONS :

Company should start strong joint packing, to avoid leakage.

Amul has a relatively good distribution network as compared to

other brands, other brands give-up during festival season and are

not able to meet the demand, here Amul can hammer the market

and influence the retailers and consumers.

Supply should be regular to all the outlets including those that lie

in the pocket roads and not just in the outlets which lie on the

easily accessible routes.

175 ml milk pouch can prove a strong market, because lower

income family has intention to buy small pouch milk.

Provide reasonable margin to retailers as compared to competitors,

this motivates them to promote company’s milk and milk products.

Improve delivery schedule to provide products on time for the

retailers about who claimed that Amul Taaza milk is not available

to them on time.

119

Incentives & Schemes should be given to the retailers and some

scrutiny should be follow to check the scheme get being

communicated properly by distributors or sales person.

Provide consistent service to retailers as this will help gain

company goodwill in the market.

Do not change distributor frequently, because he is the only person

who act as a connecting link between company and retailers.

Do not place more than one distributor in same market area.

Amul should invest more money in Brand promotion and marketing

in Kanpur, it will be beneficial for the company in the long run.

For Brand promotion and marketing of Amul milk in Pune it

should introduce a mascot for the Amul Taaza milk as it already

has for Amul Butter i.e., The Amul Butter Girl in order to gain a

good position in the mind of the customers. This will also help in

easy Brand differentiation and recognition.

Also advertising on the Television, Radio Mirchi and Sponsorship

of the events.

The study of milk market reveled that there is no mergers and

Acquisition in the milk industry. Amul should go for mergers and

acquisition and try to acquire the local players in the Kanpur

market like Namaste India, Mother Dairy etc. It will help company

in increasing its Dealers Networks, Market Share, Customer base

etc. It will also save time of establishing a new manufacturing unit.

Some brand ambassador like M. S. Dhoni, Hrithik Roshan or

Virendra Sehwag may be used. That will help customers to accept

the product more quickly.

120

Special offers should be there for dealers, retailers and customers at

Festival time.

Discount coupons should be to the consumers in order to buy more

milk.

If adding preservatives in the milk keeps the milk for longer times

than Amul should also add some preservatives in the milk as

people not only see quality but also sees the time duration i.e.,

how much times we can store milk.

Company should take care of retailers by solving their problems

and should call back by appointing separate company

representatives.

Timely visit should be given to the retail shops.

121

CHAPTER – 7

ANNEXURE

122

Books:

I. Philip Kotler - Marketing Management (Pearson

Education, 12th Edition)

II. C. R. Kothari - Research Methodology Methods &

Techniques (New Age International Publishers, 2nd

Edition, 2004)

Websites:

http://www.amul.com/m/about-us

http://www.amul.com/m/organisation

http://www.amul.com/m/awards

http://www.amul.com/m/exports

http://www.amul.com/m/amul-topical-story

http://www.amul.com/m/amul-hits

http://www.amul.com/m/amul-relief-trust

http://www.amul.com/products/amul-taaza-info.php

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http://www.amuldairy.com/index.php?option=com_co

ntent&view=article&id=49&Itemid=172

http://www.amuldairy.com/index.php?option=com_co

ntent&view=article&id=106&Itemid=67

http://www.amuldairy.com/index.php?option=com_co

ntent&view=article&id=69&Itemid=82

http://www.amuldairy.com/index.php?option=com_co

ntent&view=article&id=94&itemid=162

http://www.indiadairy.com

http://en.wikipedia.org/wiki/Amul

http://toi.amul.com/products.html

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Questionnaire

(Retailor Survey)

Name of the shop: ………………………………….......................................

Retailer Name: …………………………………………………………………………..

Address: …………………………………………………………………………………….

Contact No ………………………………………………

1. Do you stock Amul Taaza Milk?

a) Yes b) No

2. If yes, what is the size of milk packets do you preferred to store?

a) 175 ml b) 500 ml

c) 1 Ltr.

3. If No, Why?

a) Low Profit Margin b) Low Distribution

c) No replacement for leakage d) Others

4. Which is the most preferable brand of packaged milk that you stock?

a) Amul b) Namaste India

c) Mother Dairy d) Paras

e) Parag f) Others

5. From where do you get Amul Taaza Milk?

a) Distributors b) Other Suppliers

6. Are you satisfied with Amul Distributor?

a) Yes b) No

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7. Do you know which Sales promotional activities does the company

undertake for Amul Taaza Milk?

Activities Aware Not Aware

Free Samples

Credit Facility

Advertisements

Coupons

P-O-P Displays

8. Are you interested in distribution of Amul Taaza Milk?

a) Yes b) No

9. Are you aware of Amul Preferred Outlets (APO’s) and its benefits?

a) Yes b) No

10. Are you interested in opening an Amul Parlor (APO’s)?

a) Yes b) No

11. What is consumer’s expectation from Amul Milk?

a) Good Quality b) Availability

c) Packaging

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12. Give your Ratings to following attributes of Amul Taaza Milk?

NOTE :- [please tick mark ( √ ) in the specified column]

Ratings

Attributes

Very Good Good Average Bad Very Bad

Quality

Brand Image

Availability

Packaging

Profit Margin

13. Any Suggestions:-

127

Questionnaire

(Customer Survey)

Name: ………………………………………………

Address: …………………………………………………………………………..

Contact No.: …………………………………

Age: …........... years

Sex: ……………………………..

Occupation:

a) Self-employed

b) Professional

c) House-wife

d) Student

1. Do you know Amul ?

a) Yes b) No

2. Do you regularly get the Amul Milk?

a) Yes b) No

3. Which brand milk do you like the most?

a) AMUL b) Namaste India

c) Mother Dairy d) Paras

e) Parag f) Others (specify) …….…

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4. What are the products of Amul you use very frequently?

a) Butter b) Cheese

c) Milk d) Dahi

e) Ice-cream f) Chocolates

5. Do you know about Amul Taaza ?

a) Yes b) No

6. How is the taste of Amul Taaza ?

a) Poor b) Satisfactory

c) Excellent

7. What about the price of Amul Taaza ?

a) Low b) Average

c) High

8. How is the packaging of Amul Taaza Milk ?

a) Poor b) Good

9. Are you know about an Amul Parlor (APO’s)?

a) Yes b) No

10. What are the expectations from Amul Milk?

a) Good Quality b) Availability

c) Packaging

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11. Give your Ratings to following attributes of Amul Taaza Milk?

NOTE :- [please tick mark ( √ ) in the specified column]

Attributes

Ratings

Very Good Good Average Bad Very Bad

Quality

Brand Image

Availability

Packaging

12. Any Suggestions about Amul:-

130