25263114 amul projects by ravi kant saini

8/7/2019 25263114 Amul Projects by Ravi Kant Saini

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A PROJECT REPORTON

AMUL MILK AND CURD

Project Work entitled as

Effective implementation of Amul milk shoppe, Postmarketing research of TVC ad or post ad tracking &Sales promotion of curd in Nagpur city

GUJARAT COOPERATIVE MILK MARKETING FEDERATIONLTD.

Presented to- Submitted by-Mrs. Parul Kapoor Ravi Kant Saini(Faculty of ISB&M, NOIDA) ISB&M NOIDA


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PREFACE

The PGPBM programme is well structured and integrated course of business studies.The main objective of practical training at PGPBM level is to develop skill in studentby supplement to the theoretical study of business management in general. Industrialtraining helps to gain real life knowledge about the industrial environment andbusiness practices. The PGPBM programme provides student with a fundamentalknowledge of business and organizational functions and activities, as well as anexposure to strategic thinking of management.

In every professional course, training is an important factor. Professors give ustheoretical knowledge of various subjects in the college but we are practically exposedof such subjects when we get the training in the organization. It is only the trainingthrough which I come to know that what an industry is and how it works. I can learnabout various departmental operations being performed in the industry, which would,in return, help me in the future when I will enter the practical field.

Training is an integral part of PGPBM and each and every student has to undergo thetraining for 2 months in a company and then prepare a project report on the same after the completion of training.

During this whole training I got a lot of experience and came to know about themanagement practices in real that how it differs from those of theoretical knowledgeand the practically in the real life.

In todays globalize world, where cutthroat competition is prevailing in the market,theoretical knowledge is not sufficient. Beside this one need to have practicalknowledge, which would help an individual in his/her carrier activities and it is true

that Experience is the best teacher.


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ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for GujaratCooperative Milk Marketing Federation Ltd., Anand (Amul). It has been anenriching experience for me to undergo my summer training at AMUL, which wouldnot have possible without the goodwill and support of the people around. As a studentof INTERNATIONAL SCHOOL OF BUSINESS & MEDIAI would like to express my sincere thanks to all those who helped me during mypractical training program.

Words are insufficient to express my gratitude toward Mr. ASHOK MATHUR , theBranch Manager AMUL, JAIPUR . I would like to give my heartily gratitude to the

organization guide, Mr. NARENDRA SINGH , Assistance Manager ( Sales) AMUL,JAIPUR for having given me the opportunity to do my project work in theorganization and lighted my way of progress with his guidance.

My sincere and deepest thanks to Mrs. Parul Kapoor Faculty Member, ISB&MNOIDA having spared his valuable time with me and for all the guidance given inexecuting the project as per requirements.

However, I accept the sole responsibility for any possible error of omission and wouldbe extremely grateful to the readers of this project report if they bring such mistakes tomy notice.

Ravi Kant Saini


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Declaration

I hereby declare that the report Effective Implementation Of Amul Milk Shoppe,Post Marketing Research of TVC Ad or Post Ad Tracking & Sales Promotion Of Curd In Jaipur Cityis a bonafide record of the summer project done by me for Amul INDIA LTD, Jaipur,

during the period mid April-June 2009 as part of my PGPM program atINTERNATIONAL SCHOOL OF BUSINESS & MEDIA , NOIDA .

I also declare that this report has not been submitted in full or part thereof, to anyuniversity or institutions for the award of any degree or diploma.

Place: Jaipur Ravi Kant SainiDate: 30/09/2009 International School of Business & Media

NOIDA


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CERTIFICATE

This is to certify that Mr. Ravi Kant Saini was a summer trainee at our organization for aperiod of five months starting from15 th April to 15 th September 2009.

His project entitled:

Effective implementation of Amul milk shopee, Post marketing research of TVC ad or post ad tracking & Sales promotion of curd in Jaipur city

was done under my guidance. He is found sincere, hardworking and with dueinitiative and well disciplined.

We wish him luck in all his future endeavors.

Project Guide Faculty Mentor Mr. Narendra Sonigra Prof. Parul Kapoor Assistant Manager ( Sales ) ( Faculty of ISB&M, NOIDA )


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Sr. No. CONTENTS Page No.

1 Executive Summary..8

2. Indian Scenario..9

Milk a Commodity......10 Pure Dairy11

3. Introduction & History.13

GCMMF Introduction15

Milk procurement..20 Mil Processing..20 Milk Business24

Amul Pattern..31

Amul at Marketing Front...32

4. PROJECT

First Part

Distribution Channel study (Distributors & Retailers).40 Working methodology...41

Second Part

Market Research for AdvertisementOR


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Appendix.65

1. EXECUTIVE SUMMARY


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The project has three different phases. The objective of undertaking this project i.e.phase first is To find out the requirements in the area of respective retailers and Towork for expansion of retail distribution network for implementation of a valuedriven retail chain for effective linkage between consumer and organization and to

give suggestions for further improvement. This is the project has been completed withthe help of primary data. A survey has been conducted to know that how theDistribution Network working and what are the problems being faced in distribution.

As per objective I have find out the possible ways to improve the efficiency andeffectiveness of distribution network. I found that there are some problems such asLack of retail outlets, Supply problems, improper supervision, which have to beimproved and rectified and hence we have proposed some recommendations also.The objective of second part is to know the relationship of sales with theadvertisement & to know awareness of people towards new Amul Milk TVC Ad bymarketing survey i.e.post Ad tracking focusing three segment (youth,children&housewives)

The objective of third phase is to promoting of the AMUL CURD in Jaipur City.

As a part of our recommendation, I have proposed about maintaining product qualityaccording to the area [as the quality, thickness and taste preferences of people a Jaipur differ a lot from Gujarat] of sales.

2. INDIAN SCENARIO


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Milk a Commodity :-

Which is Indias No. 1 farm commodity ? Wheat, rice, sugarcane, cotton or oilseeds ? Well,

none of them: The right answer is milk. In 2006-07, the country produced an estimated 100 million

tones (mt) of milk. At an average farmgate price of Rs 10 per kg, this would have been worth Rs

100,000 crore, exceeding that of any other crop (see Table).

Moreover, the share of the milk group in the total value of output from agriculture and

livestock during 04-05 (at current prices) was 17.89 per cent. This means almost every fifth rupee

generated from agriculture and allied activities in the country comes from dairying. And amidst an

overall stagnant farm sector, this is one segment that has exhibited significant dynamism in recenttimes. Between 1990-91 and 06-07, milk production has nearly doubled from 53.9 mt to 100 mt,

while rising from 55.1 mt to 74.9 mt for wheat and 74.3 mt to 92.8 mt for rice.

Yet, strangely enough, milk excites neither policymakers nor corporate. The planner sees

dairying as basically an activity subsidiary to agriculture. Partly this belief stems from the cattle and

buffaloes in India being largely fed on crop residues wheat and paddy straw, sugarcane tops or

the protein-rich cake remaining after extraction of oil from groundnut or mustard-seed. Milk, from

this perspective, is more of a residual than a primary agricultural product. Though farmers do grow

barseem, sorghum or maize as independent fodder crops in isolated plots, the idea of a pure dairy

farmer is something that has not really caught on, leave alone capture official imagination.

Likewise, the big corporate entities in dairying today are pretty much the same

ones that have been around for the past three-four decades: Nestle, Amul, National Dairy

Development Board and various other State dairy federations.

Even when it comes to the commodities space, the two premier exchanges MCX and

NCDEX deal in everything from chana, chilly and coffee to guar seed, jeera, mentha oil

and mulberry green cocoons, but not skimmed milk powder, ghee or khoa. That is again

surprising, given the seasonal fluctuations in milk availability and demand, which make its products

eminently amenable to futures contracts.


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Why this indifference? One reason has to do with the unique nature of milk as a

crop that is harvested and marketed daily. This is as opposed to wheat and paddy, which take over

four months to mature, or sugarcane that is harvested 11-12 months after planting. Harvesting here is

a conspicuous one-time event, whereas it is a daily affair for milk sans any pongal or baisakhi

festivities marking its arrival.

Cane, wheat and rice, furthermore, generate bulk revenue at one go for the

farmer, unlike the steady trickle of cash flowing daily from milk sales. A buffalo, once it delivers its

first calf when around four years of age, keeps producing milk for the next 290-300 days, before

going dry prior to the next calving taking place roughly 450 days after the first.

A single buffalo in its lifetime undergoes 8-9 calvings, with each cycle yielding

1,500-odd kg of milk. A farmer, who keeps three-four animals and is able to coordinate their dry

periods, can ensure year-round sales.

But this simple fact of being marketed daily in kg or litres against quintals

and tonnes in the case of field crops renders cattle rearing and dairying a business that goes

virtually unnoticed or is reported as a subsidiary farming.While the bulk monies from cane may help the farmer marry off his daughter,

discharge old debts or buy new farm equipment, it is milk that provides the liquidity to meet day-to-

day household expenses and an effective insurance against drought or crop failure. Unattractive to

corporate.

At the same time, the manner in which dairying has evolved in India being

widely dispersed across space and time has made it relatively unattractive to corporates. Dealing

with a perishable commodity supplied by thousands of scattered producers each delivering a few

litres every day involves formidable logistics requiring not just deep pockets, but painstaking

effort and organisation at the grassroots.

It is the complexity of this task, often belatedly realised, that has led to many

corporates (barring the odd Nestle or Hatsun, which have invested in back-end extension and

procurement infrastructure) burning their fingers in the sector. The ones to have truly succeeded are


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the cooperatives, especially Amul, which procures over 65 lakh litres of milk on an average daily

from some 25 lakh producer-members. That works out to less than three litres per producer, making

it arguably the countrys most efficient and transparent rural employment scheme.

The Amul model has proved to be robust and stood the test of time, for all the

organised attempts at belittling and sabotage even from within. However, its chief protagonist has

been the small or marginal farmer, engaged in dairying as a subsidiary income activity. The basic

underlying framework, thus, remains one of livestock rearing and milk production being an adjunct

to mainstream crop agriculture. Considering the sheer size to which it has grown today, there is a

need to rescue dairying from a narrow subsidiary/residual approach and view it as an independent

business in itself. The pure dairy farmer is perhaps an idea deserving of support whose time has

come.

Pure dairying :

By pure dairying, one is not talking of the farms with 2,000-plus cattle that produce a quarter of the

milk in the US or the average member of New Zealands Fonterra Cooperative, who supplies 3,600

litres per day (against Amuls less than three!).

Even more far-fetched are the captive dairy farms of Saudi Arabias Almarai Company that house

over 45,000 Holstein Friesians, protected against the desert heat by special air-droplet fans and

evaporative cooling systems, fed on imported barley and concentrates, and milked in fully-

automated, continuous cycle-operated parlours. More promising are experiments of the kind being

tried out by Hatsun Agro. The Chennai-based company is targeting ordinary five-acre farmers to

switch to pure dairying by getting them to exclusively grow quality fodder (Co-3, desmanthes,

multi-cut sorghum) and raise 35-40 cows (at 90 square feet per animal and 436 square feet equal to

0.01 acres, less than 0.1 acres suffifor 40 cows). By increasing on-farm fodder yields, relying less on

expensive purchased concentrates and selective mechanization (use of brush-cutters for harvesting,

rain-guns to halve water consumption, and milking machines to save on labor), milk production

costs can be reduced by up to Rs two to Rs 6.5-7 a liter. A farmer selling 300 liters daily at Rs 10 a


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liter can, then, earn over Rs 25,000 a month, it is claimed.

Concessional schemes

Models like these, no doubt, offer opportunities for educated rural youth

nursing entrepreneurial ambitions and addressing the rather disturbing flight of talent from the

countryside.

But this calls for a changed official mindset, still entrenched in the two-animals, milk-as-a-residual-

product mould. A good cross-bred, giving 3,000 liters annually, costs Rs 18,000 or so. There is no

dearth of concessional finance schemes for buying two cows; none when it comes to a 30-animal

farm entailing investment of around Rs 8 lacs (inclusive of sheds and assorted machinery), even if

the promoter is a small-holder having a secure marketing arrangement with a cooperative or private

processor.

In this case, not only is there no subsidy, but banks additionally insist on land as collateral security

notwithstanding the fact that farms are often jointly-held family property, on which clean title

deeds may not be available to the satisfaction of lenders.

It is necessary to revisit such policies, more so in a country that has emerged

as the worlds leading milk producer.If only organized dairying were to get the official recognition and treatment accorded nowadays to

horticulture, bio-fuel plantations, floriculture or wineries, it could stimulate the growth of a new type

of educated farmer-turned-rural entrepreneur without at all undermining the successful home-grown

Amul model.

INTRODUCTION AND HISTORY


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In the year 1946 the first milk union was established. This union was started with 250 litersof milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known asKAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION . This union selected thebrand name AMUL in 1955.

The brand name Amul means AMULYA . This word derived form the Sanskrit wordAMULYA which means PRICELESS. A quality control expert in Anand had suggested thebrand name AMUL. Amul products have been in use in millions of homes since 1946. AmulButter, Amul Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates, AmulShrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading foodbrand in India. Today Amul is a symbol of many things like of the high-quality products sold atreasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenoustechnology, of the marketing savvy of a farmers' organization. And have a proven model for dairydevelopment (Generally known as ANAND PATTERN ).

In the early 40s, the main sources of earning for the farmers of Kaira district were farmingand selling of milk. That time there was high demand for milk in Bombay. The main supplier of themilk was Polson dairy limited , which was a privately owned company and held monopoly over thesupply of milk at Bombay from the Kaira district. This system leads to exploitation of poor andilliterates farmers by the private traders. The traders used to beside the prices of milk and thefarmers were forced to accept it without uttering a single word.

However, when the exploitation became intolerable, the farmers were frustrated. Theycollectively appealed to Sardar Vallabhbhai Patel , who was a leading activist in the freedommovement. 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 ShriMorarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4 th January 1946 . He advised the farmers to form a society for collection of the milk.

These village societies would collect the milk themselves and would decide the prices at which they cansell the milk. The district union was also form to collect the

milk from such village co-operative societies and to sellthem. It was also resolved that the Government should beasked to buy milk from the union.

However, the govt. did not seem to help farmers by any means. It gave the negative responseby turning down the demand for the milk. To respond to this action of govt., the farmers of Kairadistrict went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders.


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As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay thenvisited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmersdemand.

Thus their cooperative unions were forced at the village and district level to collect and sellmilk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showedmain interest in establishing union who was supported by Shri Tribhuvandas Patel who lead thefarmers in forming the Co-operative unions at the village level. The Kaira district milk producersunion was thus established in ANAND and was registered formally on 14 th December 1946 . Sincefarmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sellthe milk under the brand name AMUL .

At the initial stage only 250 liters of milk was collected every day. But with the growing awarenessof the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs

liters of milk everyday. Since milk was a perishable commodity it becomes difficult to preserve milk for a longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit atvarious junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is collectedfrom almost 1073 societies .

With the financial help from UNICEF , assistance from the govt. of New Zealand under theColombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned.Dr.Rajendra Prasad , the president of India laid the foundation on November 15, 1954 . ShriPandit Jawaharlal Nehru , the prime minister of India declared it open at Amul dairy on November20, 1955 .

G.C.M.M.F. INTRODUCTION


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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD., ANAND

Facts and Figures:- GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food productsmarketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims toprovide remunerative returns to the farmers and also serve the interest of consumers by providing

quality products which are good value for money.

Members: 13 district cooperative milk producers'Union

No. of Producer Members: 2.6 million

No. of Village Societies: 12,792

Total Milk handling capacity: 10.16 million liters per day

Milk collection (Total - 2006-07): 2.38 billion liters

Milk collection (Daily Average 2006-07):

6.5 million liters

Milk Drying Capacity: 594 Mts. per day

Cattle feed manufacturing Capacity: 2640 Mts per day

Sales Turnover Rs (million) US $ (in million)


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1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

2008-09 67113 1504

List of Products Marketed:Breadspreads:

Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozzarella) Cheese Amul Shredded Pizza Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese) Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand


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Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix Avsar Ladoos

UHT Milk Range:

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

Pure Ghee:

Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 ( 6 months above) Amulspray Infant Milk Food

Milk Powders:

Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardised Milk 4.5% fat Amul Slim & Trim Double Toned Milk 1.5% fat Amul Saathi Skimmed Milk 0% fat Amul Cow Milk


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Curd Products:

Yogi Sweetened Flavoured Dahi (Dessert) Amul Masti Dahi (fresh curd) Amul Masti Spiced Butter Milk Amul Lassee

Amul Icecreams:

Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi) Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond) Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant,

Santra Mantra, Fresh Pineapple) Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae) Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite,

Cassatta)

Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)

Chocolate & Confectionery:

Amul Milk Chocolate Amul Fruit & Nut Chocolate

Brown Beverage:

Nutramul Malted Milk Food

Milk Drink:

Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate) Amul Kool Caf Amul Kool Koko Amul Kool Shake (Mango, Badam, Banana)

Health Beverage:

Amul Shakti White Milk Food

Awards:-

Amul Pro-Biotic Ice-Cream Gets No. 1 Award at World Dairy Summit Anand, Gujarat, India, Friday, October 05, 2007 -- (Business Wire India)Its another triumph for brand Amul. After emerging as Indias topmost brand, it has gone to winone of the worlds most prestigious awards The International Dairy Federation Marketing Award


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(2007) for Amul pro-biotic ice-cream launch.

Announcing the award on October 03, at Dublin, Ireland on the occasion of the World DairySummit, Mr. Jim Begg the IDF President commented These campaigns are excellent examples of best practice in branded and generic marketing from around the world. In markets around the world

that are volatile and highly competitive, dairy products have a role in health balanced diets, and thesecampaigns have demonstrated the ability of well planned and executed marketing investments.

GCMMF is the first and the only Indian organization to receive the 2007 IDF Marketing Awardwhich covered three categories Nutri-marketing, Innovation and Marketing Communication. AmulPro-biotic Ice-cream received the award in the Nutri-marketing category.According to Shri B. M. Vyas, Managing Director, GCMMF, We launched Amul Pro-biotic Ice-cream as well as Amul Pro-biotic Sugar Free Ice-cream, due to the constraints of cold chain which isa pre-requisite for ice-cream distribution. In a country like India where we have waterborne diseaseslike diarrhea, eating a spoonful or two of pro-biotic ice-cream would keep the family healthy andstrong. The product was launched with this in view. We were the first in the country to introduce

pro-biotic ice-cream and pro-biotic sugar free ice-cream. We are happy that our efforts have beenglobally recognized by bestowing the prestigious IDF Marketing Award.

In January 2007, for the first time in India and the world GCMMF introduced the Amul range of sugar free and Pro-biotic ice-creams aimed at the health- conscious and diabetic. Probiotics are livebeneficial culture which, when administered in adequate amounts, confer a beneficial health effecton the host. They help in digestion, especially of milk sugar (lactose). They improve the immunesystem, build stronger bones and are effective in controlling travelers diarrhea. They also help in theprevention of formation and growth of colon cancer.

GCMMF was the first organization in the country to launch Pro-biotic food. In order to educate

consumers and trade about the benefits of Pro-biotic ice- cream, GCMMF ran extensive advertisingand direct marketing campaigns during the year.

MILK PROCUREMENT

Total milk procurement by our Member Unions during the year 2006-07 averaged 67.25 lakhkilograms (6.7 million kg) per day, representing a growth of 4.5 per cent over 64.38 lakh kilograms(6.4 million kg) per day achieved during 2005-06. The highest procurement as usual was recorded


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during January 2007 at 84.09 lakh kilograms (8.4 million kg) per day. This increase in milk procurement is very impressive, keeping in mind the massive loss suffered by our farmers due tofloods during the monsoon season, specially in Surat district.

MILK PROCESSING:-

1. Homogenization: - Milk must then be homogenized. Without homogenization, the milk fatwould separate from the milk and rise to the top. Milk fat is what gives milk its rich andcreamy taste. In this process Milk is transferred to a piece of equipment called ahomogenizer. In this machine the milk fat is forced, under high pressure through tiny holes.

2. Pasteurization:- Pasteurization is the process that purifies milk and helps it stayfresher, longer. Milk is pasteurized by heating it to 72C for 16 seconds then

quickly cooling it to 4C. Pasteurization is named after Louis Pasteur, the famous scientist.

3. Adding Vitamins; - Before homogenization, vitamin D is added to all milk. Vitamin Dcombined with the calcium that naturally exists in milk help gives us strong bones and teeth.Dairies also add Vitamin A to skim, 1% and 2% milk. Vitamin A is good for our eyesight.


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4. Packaging Milk: - Milk is now ready to be packaged. Milk is pumped through automaticfilling machines direct into bags, cartons and jugs. The machines are carefully sanitized andpackages are filled and sealed without human hands. During the entire time that milk is atthe dairy, it is kept at 1 - 2C. This prevents the development of extra bacteria and keepsthe milk its freshest.

5. Storing:- Milk is delivered to grocery stores, convenience stores and restaurants inrefrigerated trucks that keep milk cooled to 1 - 4C. The stores take their milk andimmediately place it in their refrigerated storage area. Because fresh milk is soimportant to our diets, dairies, and our health.

PRODUCT SPECIFICATION:-


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Fat (min) SNF

AMUL GOLD 6.0% 9.0%

AMUL TAAZA 3.5% 8.5%

SNT 5.0% 9.0%

MILK PRODUCT:-

Pasteurized Milk Sterilized Milk Flavored Milk

Cultured Milk Chocolate Milk Cream

Butter Sweetened Condensed Milk Ghee

Milk Shake Powder Malted Milk Whole Milk Powder

Baby Food Skim Milk Powder Whey Powder

Ice Cream Milk Powder Yoghurt


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MILK:-One of the most versatile food consumed by us. All children start their with mothers milk andcontinue to use it in one other throughout their life.It is the secretion from the mammary glands of a lactating mammal. The white fluid, know as milk,is made up of milk fat and other milk solids.

Imp. Constituents of MILK

Solid Non FatfaFat

WaterFat

Vitamins A, D, K, E

Proteins Minerals Sodium,Cal, Iron etc

Enzymes,Vitamins B & B12


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MILK PROCESSING BLOCK DIGRAM:-

Milk Business

SALES

During the year, sales of our Federation registered a growth of 13.4 per cent to reach Rs. 4,277.84crores (Rs. 42.77 billion). This is an extremely impressive growth, when viewed from theperspective of 29 per cent growth that we had achieved last year. In global terms, we have nowbecome a billion dollar organization.I am also pleased to note that our Federation has done remarkably well in most of the value-addedconsumer packs. Sales of Amul Milk in pouches have grown by 40% in value terms. Similarly, salesof Ghee in Amul and Sagar brands have also grown by 28%. UHT Milk has also shown animpressive value growth of 25%. With the highly successful launch of Amul Kool Caf, our salesvalue in the Flavored Milk segment has seen an exponential increase of 55%. We reaffirmed our status as the undisputed leader in Ice-cream segment, by registering impressive growth in sales. Inline with our policy of continuous innovation, we have launched Probiotic and Sugar-free Ice-creamto cater to the growing health conscious segment.

Our sales in Amul Processed Cheese have shown consistent and very impressive growth, year after year. In 2006-2007, we recorded 20% growth in value sales for Cheese, yet again. We managed toregister double-digit value growth in Butter and Milk Powders, despite intense competition in thesecategories. We have introduced an entirely new range of chocolates in world-class packaging, under the brand name Amul Chocozoo. In the health-spread category, Amul Lite and Delicious Margarinehave performed extremely well, with a combined growth of 58% in sales value.


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RETAILING

The advent of modern format retailing has led to a sea change in purchasing behavior of consumers.While large retail chains do provide some convenience to consumers, historically they have rarelyhad any beneficial impact on farmers who supply agricultural produce to them. Across the world, itis observed that the farmers share in the consumers rupee, keeps on declining due to the risingbargaining power of supermarket chains. This phenomenon will definitely take place in India, aswell, within the next few years. To counter this, we have decided to set up our own Amul PreferredOutlets (APOs), all across the country.GCMMF ventured into organized retailing in 2002 with a view of getting closer to the consumer andprovide her the complete brand experience. We have made our presence felt by creating severalstrategically located parlors, in a short period of time. The entire expansion drive is based on thefranchisee route adopted by GCMMF, which means an employment opportunity for thousands of enterprising Indians. The Retailing operations would not only help farmers and small timeentrepreneurs to counter the onslaught of Modern Format stores but would also help consumers torelish complete Amul brand experience.

EXPORT


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As you are aware, the Government of India has recently banned export of milk powders till 30thSept 2007 and also does not allow exports based on the Letter of Credit received by us prior to theban. In todays global economy, ban on exports would definitely be considered a retrograde step.

As you are aware, the milk producers of Gujarat and neighboring states of Maharashtra, MadhyaPradesh and Rajasthan have suffered immensely due to heavy rains and floods in June Augustperiod last year. This had not only reduced their income levels but had also made them suffer lossesdue to death of cattle and damage to farms and property.

Despite these hardships, our milk producer members have continued to make their efforts inmaintaining milk supply which has helped to tide over the crisis period. The only ray of hope hasbeen the hope of realization of better prices for their milk since international market prices haveincreased due to removal of subsidy in Europe and drought in Australia in the last few months. Sincethe ban in February this year, the international SMP prices have increased from US$ 3000 per MT toUS$ 5000 per MT. Our milk producers are obviously sustaining an opportunity loss of US$ 2000 per

MT in terms of additional realization that we could have obtained.

Further, the Ministry of Agriculture and Ministry of Commerce have been fighting very hard sincelast more than 10 years at WTO to ensure that Europe removes agricultural subsidy, which resultsinto better prices and market access to our Indian farmers. The Indian farmers have barely started torealize the fruits of removal of subsidy on SMP by EU as they have seen rise in milk procurementprices and increase in Indias presence in global dairy market.The move to ban exports of milk powder is hurting us since India shall not be able to export part of surpluses at the prevailing international prices that are marginally better than the current domesticprices.

The notification is also not allowing exports under para 1.5 of Foreign Trade Policy and hence thebuyers, who have made 100 % advance payment or have established Letter of Credit before the dateof ban, are also not able to import milk powders, which has tarnished Indias image as reliablesupplier.

Many of our dairies have invested in better plant and machinery by importing Capital goods under EPCG licenses and thereby entering into export obligations. With force of ban on milk powder, theplants will not be able to fulfill their export obligations.Since the existing system in place for milk production encourages income generation for millions of milk producers, it is important that the Union Government should have policies that facilitate dairydevelopment consistent with this profile. Equally important, the Union Government must take

necessary measures to ensure that the Indian milk producer gets a fair chance to sell his produce inglobal market, which has historically been having a lot of subsidy in milk products, and he does notface threat or erode Indias comparative advantage in dairying as well as its competitive strengths inthe sector.We have met the Hon. Prime Minister of India, Hon. Commerce Minister and Hon. AgricultureMinister and have urged the Union Government to withdraw the ban on exports of milk powders, inthe interests of not just Indias farmers and milk producers but also in the national interest.

During the year, our export turnover has decreased from Rs 134 crores in 2005-06 to Rs 60 croresthis year. This is due to the export ban in the last couple of months. However, I am pleased to inform


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that the consumer pack exports has increased by 32% over the previous year. Our Kool Caf andButtermilk have got excellent response in UAE, Singapore and Australian markets. We have alsostarted exports of Amul Ice-cream to Dubai this year. We expect our consumer pack business to helpin further improve our brand presence in our target export markets and reinforce our position asAsias largest milk brand.

y DISTRIBUTION NETWORK

Overall economic growth, higher disposable incomes, changing attitude of consumers towardsspending, various alternative consumption forms, and emergence of Organized Retail throws upchallenges and also opportunities to the Distribution function of Federation. To keep pace with thechanging market scenario, in the previous years, we have increased our distribution network in smalltowns. During this year Amul have divided markets into 14 segments to ensure improved availabilityof our products. Improved distribution focus on newly launched products was on top of Amul`sagenda. Amul product lines were divided into Main Line and New Line. Separate distributors wereappointed during the year exclusively for New Line. For specific product categories also exclusivedistributors have been appointed. Separate manpower has been earmarked for each line.To impart concepts of modern marketing amongst our distributors an initiative of Marketing andSales Management Program of our distributors have been taken. In collaboration with a premier business school, a 2 days workshop has been designed. All distributors of Federation will undergothis Training Program.Amul Yatra Program has been continuing to bring our channel partners to Amul to give them anexposure to our cooperative institutions. This year our emphasis was upon our newly appointeddistributors and channel partners from various business segments like Organized Retail, Caterers etc.

y COOPERATIVE DEVELOPMENT PROGRAMMEDuring the last seven years, Amul`s Member Unions are implementing Internal ConsultantDevelopment (ICD) intervention for developing self leadership among member producers andthereby enabling them to manage their dairy business efficiently leading to their overalldevelopment.

During the year, Member Unions continued to implement the module on Vision Mission Strategy(VMS) for primary milk producer members & Village Dairy Cooperatives. Facilitated by speciallytrained consultants, 901 Village Dairy Cooperative Societies (VDCS) have already conducted their Vision Mission Strategy Workshops, prepared their Mission Statements & Business Plans for next

five years. Till today, a total of 4,428 VDCS have prepared their mission statement and businessplan. Member Unions are reviewing this business plan every year under VMS annual revisit programand facilitate VDCS to prepare action plan for next year to propel the momentum gained throughVMS.The VMS module has prompted milk producers to initiate activities at villages such as Water management, Planned Animal Breeding, Animal Feed management, Improved member servicesmanagement, Information Technology Integration and Networking, which has very far reaching andlong-term effects on the milk business. This planned management of milk production and VDCSwill not only help producer members to increase economic returns from their milk business but alsohelp VDCS management to face the fierce competition ahead. Continuing the Cleanliness drive at


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village level, till March 2007, Member Unions have identified & imparted training to 8,774 Coregroups formed of milk producers and Management of the VDCS. To enhance the level of Cleanliness this year 7,313 VDCS celebrated Red Tag Day on Gandhi Jayanti - 2nd October andthe Unions also awarded best performing VDCS.

As a part of the Breeding Services Improvement Program, during the year, Member Unions havecontinued implementation of the module of Improvement in Artificial Insemination Services andimparted training to 212 Core groups at village level and have decided to cover all the VDCS under Breeding Services with this module over the next year. To boost this movement, Member Unions arealso conducting Mass De-worming campaign. Further, Member Unions implemented the AI AuditCompetition during the year and in the process, identified & awarded the best performing VDCS &AI Workers of these Societies in order to motivate them to further improve their work.In order to increase awareness about dairy industry scenario and impart leadership skills to theChairmen & Secretaries of the Village Dairy Cooperatives, Member Unions in collaboration withFederation, are conducting Chairmen & Secretaries Orientation Program at Mother Dairy,Gandhinagar. During the year 1,114 Village Dairy Cooperative Societies have been covered under

this program involving 2,150 Chairmen & Secretaries of the Village Dairy Cooperatives.During the year, our Member Unions continued to encourage increased participation of women milk producers in the Dairy Cooperative Societies. To develop their skills and enhance leadershipqualities, Member Unions organised Self Managing Leadership (SML) Program at PrajapitaBrahmakumaris, Mount Abu for 1,660 women resource persons along with Chairmen andSecretaries of 282 VDCS.In order to strengthen knowledge and skill base of young girls and women of the villages about milk production management and to motivate them to implement scientific milch animal breeding,feeding and management methods for their animals, Federation, with technical collaboration andresources of Anand Agriculture University, has initiated Mahila Pashupalan Talim Karyakram for women resource persons of the Member Unions. It is envisaged that women resource persons trained

through this program would lead the torch light in villages to facilitate women milk producer members to increase productivity per milch animal and in turn improve the livelihood of their fellowmilk producers household. During the year, 99 women resource persons have been trained under thisprogram.To meet the differential nutritional requirement of animals, we have started marketing of cattlefeedin four different variants under Amul Super dan, Amul Power dan, Amul Josh dan and Amul Purak dan brand names. During the year, total sale of cattlefeed under these brands is 50,060 MT which is22% higher compared to previous year.On the basis of results of Animal Survey carried out by MUs, it is observed that there are largenumber of NPG - NECO (Non Pregnant Not Even Calved Once) animals in milkshed area of MUs.Therefore with an objective to reduce NPG NECO animal population and to improve productivity

of milch animals it is envisaged to initiate Fertility Improvement Program (FIP) and ProductivityEnhancement Program (PEP) in village dairy cooperative societies affiliated to member unions incoming years.

In our sustained effort to professionalize the dairy cooperative sector and create a pool of talentedmanpower to serve the rural producer, we continue to support the Institute of Rural Management,Anand in several ways. We provide financial assistance to 15 deserving students in form of Amulscholarship, with a financial outlay of Rs. 15 Lakhs per annum. We have already decided to continuethis support for another five years.


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y INFORMATION TECHNOLOGY INTEGRATION

GCMMF has further advanced its Information Technology solutions by enhancing its customizedERP System (EIAS & Web EIAS) to improve its operational efficiencies.Communication is the key word to achieve highest level of performance in todays competitivebusiness environment. To strengthen the Business Linkages with the business partners of GCMMF,we have deployed Amul e-Groupware System. The said system facilitates two-way Onlinecommunication with the business partners and helps in improving the performance.It has also successfully deployed Customer Relationship Management (CRM) solution with apersonalized mailing list manager. The said system helps us in informing a large number of customers about our product launch, consumer schemes, recipes etc. instantly and get their feedback.Your Federation has also further advanced its Geographical Information Systems by implementingthe same at all Milk Marketing Offices to smoothen its supply chain management and to improveoperational efficiencies .

Plants:-

First plant is at ANAND , which engaged in the manufacturing of milk, butter, ghee, milk powder,flavored milk and buttermilk.

Second plant is at MOGAR , which engaged in manufacturing chocolate, nutramul, Amul Ganthiaand Amul lite.


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Third plant is at Kanjari , which produces cattelfeed.

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

Today, twelve dairies are producing Today twelve dairies are producing differentproducts under the brand name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in theworld , which is matter of proud for Gujarat and whole India.


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Amul Pattern

The Amul Pattern has established itself as a uniquely appropriate model for rural development.

Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand.

Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice

cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others.

Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual

turnover of US $868 million (2005-06). Currently Amul has 2.41 million producer members with

milk collection average of 5.08 million liters/day. Besides India, Amul has entered overseasmarkets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and

a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now

it has fresh plans of flooding the Japanese markets. Other potential markets being considered

include Sri Lanka.


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Amul : At Marketing Front

Amul Butter Girl

The moppet who put Amul on India's breakfast table 50 years after it was first launched, Amul's salefigures have jumped from 1000 tonnes a year in 1966 to over 25,000 tons a year in 1997. No other brand comes even close to it. All because a thumb-sized girl climbed on to the hoardings and put aspell on the masses.

Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old housewife is out inthe balcony drying clothes. From her second floor flat she can see her neighbors on the road. Thereare other people too. The crowd seems to be growing larger by the minute. Unable to curb her curiosity Sheela Mane hurries down to see what all the commotion is about. She expects the worstbut can see no signs of an accident. It is her four-year-old who draws her attention to the hoardingthat has come up overnight. "It was the first Amul hoarding that was put up in Mumbai," recallsSheela Mane. "People loved it. I remember it was our favourite topic of discussion for the next oneweek! Everywhere we went somehow or the other the campaign always seemed to crop up in our conversation."

Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you, from strategicallyplaced hoardings at many traffic lights. She is the Amul moppet everyone loves to love (includingprickly votaries of the Shiv Sena and BJP). How often have we stopped, looked, chuckled at theAmul hoarding that casts her sometime as the coy, shy Madhuri, a bold sensuous Urmila or simplyas herself, dressed in her little polka dotted dress and a red and white bow, holding out her favouritepacket of butter.

For 30 odd years the Utterly Butterly girl has managed to keep her fan following intact. So much sothat the ads are now ready to enter the Guinness Book of World Records for being the longestrunning campaign ever. The ultimate compliment to the butter came when a British companylaunched a butter and called it Utterly Butterly, last year.

It all began in 1966 when Sylvester daCunha, then the managing director of the advertising agency,ASP, clinched the account for Amul butter. The butter, which had been launched in 1945, had astaid, boring image, primarily because the earlier advertising agency which was in charge of theaccount preferred to stick to routine, corporate ads.

One of the first Amul hoardings


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In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna movement, Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative team working on the Amulaccount came up with a clincher -- 'Hurry Amul, Hurry Hurry'. Bombay reacted to the ad with afervour that was almost as devout as the Iskon fever.

That was the first of the many topical ads that were in the offing. From then on Amul began playingthe role of a social observer. Over the years the campaign acquired that all important Amul touch.

India looked forward to Amul's evocative humour. If the Naxalite movement was the happeningthing in Calcutta, Amul would be up there on the hoardings saying,

"Bread without Amul Butter, cholbe na cholbe na (won't do, won't do). If there was an IndianAirlines strike Amul would be there again saying, Indian Airlines Won't Fly Without Amul.

There are stories about the butter that people like to relate over cups of tea. "For over 10 years I havebeen collecting Amul ads. I especially like the ads on the backs of the butter packets, "says Mrs.Sumona Verma. What does she do with these ads? "I have made an album of them to amuse mygrandchildren," she laughs. "They are almost part of our culture, aren't they? My grandchildren arealready beginning to realise that these ads are not just a source of amusement. They make themaware of what is happening around them."

Despite some of the negative reactions that the ads have got, DaCunhas have made it a policy not toplay it safe. There are numerous ads that are risque in tone.

"We had the option of being sweet and playing it safe, or making an impact. A fine balance had to bestruck. We have a campaign that is strong enough to make a statement. I didn't want the hoardings to

be pleasant or tame. They have to say something," says Rahul daCunha.

"We ran a couple of ads that created quite a furore," says Sylvester daCunha. "The Indian Airlinesone really angered the authorities. They said if they didn't take down the ads they would stopsupplying Amul butter on the plane. So ultimately we discontinued the ad," he says laughing. Thenthere was the time when the Amul girl was shown wearing the Gandhi cap. The high command camedown heavy on that one. The Gandhi cap was a symbol of independence, they couldn't have anyonenot taking that seriously. So despite their reluctance the hoardings were wiped clean. "Then therewas an ad during the Ganpati festival which said, Ganpati Bappa More Ghya (Ganpati Bappa take

more). The Shiv Sena people said that if we didn't do something about removing the ad they wouldcome and destroy our office. It is surprising how vigilant the political forces are in this country.Even when the Enron ads (Enr On Or Off) were running, Rebecca Mark wrote to us saying howmuch she liked them."


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Amul's point of view on the MR coffee controversy

There were other instances too. Heroine Addiction, Amul's little joke on Hussain had the artistringing the daCunhas up to request them for a blow up of the ad. "He said that he had seen thehoarding while passing through a small district in UP. He said he had asked his assistant to take aphotograph of himself with the ad because he had found it so funny," says Rahul daCunha in amusedtones. Indians do have a sense of humor, afterall.

From the Sixties to the Nineties, the Amul ads have come a long way. While most people agree thatthe Amul ads were at their peak in the Eighties they still maintain that the Amul ads continue totease a laughter out of them.

Where does Amul's magic actually lie? Many believe that the charm lies in the catchy lines. That welaugh because the humor is what anybody would enjoy. They don't pander to your nationality or certain sentiments. It is pure and simple, everyday fun.


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Obstacles

U nawareness of quality of product:

As long as milk was available consumers could not care less about aspects such as fat contents and

consumer could not differentiate between Amul and other competitors.

I lliteracy:

Highlighting brand strengths effectively was harder still since a large segment of the consumers

was illiterate.

C ut throat competition:

Competition was so intense that all 20 brands sold at exactly the same price. In 1993 Amulsmarket share was 27.9%. With this cut throat competition, Local dairies (dabba walas) and other

product companies also make the competition intense.

Applied Strategies

M arketing Strategies

P rofit minimization

Amul offered the margin of only 15 paisa per liter compared to 40 paisa by other private

packers.

A ttractive packaging The fat and SNF content began to appear on pouches in an attempt to educate the

customers.

P icturesInstead of making the pouch design copy-heavy, colorful images were used as these were

easy for the customer to remember. Hence, different early morning symbols like birds,

flowers, the sun and buffalo were printed. C olors

The bright colors were used to distinguish the various types of milk. It began to seem that

the brand was acquiring an identity for itself.


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Response of C onsumers

In response to the strategies regarding consumer awareness, started asking for Bhainswala

or Harawala

ADVERTISING STRATEGY

E motional touch:

Since 1967 Amul products' mascot has been the very recognizable "Amul baby" (a chubby butter

girl usually dressed in polka dotted dress) showing up on hoardings and product wrappers with the

equally recognizable tagline U tterly Butterly Delicious A mul . Through this Amul baby Amul

creates emotional touch with consumers.

T he A mul Bayby:

50 years after it was first launched, A mul's sale figures have jumped from 1000 tonnes a year in

1966 to over 25,000 tonnes a year in 1997. No other brand comes even close to it. A ll because a

thumb-sized girl climbed on to the hoardings and put a spell on the masses.

Through the Amul baby, Amul shows after consuming the Amul products kids can grow with

creativity & innovativeness. It has even left great impact on parents outlook. Now they feel their

kids can grow in the best possible.

A dvertisement as per the situation:

Amul focuses more and more on effective advertising. They advertise their products to co-

relate Amul baby with current scenario.


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Ex- an Amul butter ad on Pakistan's Kargil War fiasco. The image shows the "Amul baby" in

between George Fernandez and Vajpayee.

O peration Flood

The Amul started project called Operation Flood (OF), with all the subsidiary cooperatives of

NDDB, meant to create a flood of milk in India's villages with funds mobilized from foreign

food donations.

Under the operation flood Amul and other subsidiaries of NDDB introduced an advertisement for

attracting the people towards milk that is known as Wonderful Doodh. It got great success in the

market. Due to this add, the demand of the milk got doubled and also its effects on the sales of other

brand competitors like as Pepsi, coca cola etc.

A mul T he T aste of I ndia

Amul introduced the tag line The Taste of India to attract more customers towards it, as Indians

are emotionally bound towards the feeling of being Indian when something is related to their

sentiments of being Indian, they tend to attract towards their particular product.

Through this tag line Amul believes to entrust the customers to deliver batter quality product

Present Scenario:Amul is targeting export turnover of Rs 150 crore and expects milk product sales to

rise in overseas market such as west Asia, US and Sri Lanka. Amul added 900

distributers across small town to expend their reach. Amul is also applying following

activities to expand their market: Amul is advertising his products through press advertisement, radios,

boarding and cable TV


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Amul started printing its logo on home delivery bags, T-shirts, caps,

umbrellas.

Amul is organizing many competitions in different institute & distributing

gifts with its logo to aware the consumers.

Future Aspects:

Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlors created in

major cities like Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat. Amul has

plans to create a large chain of such outlets to be managed by franchisees throughout the country.

"Amul Utterly Delicious" parlors are an excellent business opportunity for investors,

shopkeepers and organizations. In order to come closer to the customer, we have decided to

create a model for retail outlets, which would be known as "Amul Preferred Outlets"(APO).

Amul plans to launch India's first sports drink Stamina , which will be competing with Coca

Cola's PowerAde and PepsiCo's Gatorade .

1. Renovation Work of the Shop to give it a standard look

Renovation work would be done to meet the design and specifications at your cost. The

cost of renovation of a typical shop would normally be between Rs. 60,000 to Rs. 1 lac.

2. Branding -

The APOs would be branded as "Amul Utterly Delicious". The cost of the signage

fabrication and installation would be borne by GCMMF office operating in your region.


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People Power: Amuls Secret Of Success

The system succeeded mainly because it provides an assured market at remunerative prices for

producers' milk besides acting as a channel to market the production enhancement package. What'smore, 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 goods.

Looking back on the path traversed by Amul, the following features make it a pattern and model for

emulation elsewhere.

Amul has been able to:

Produce an appropriate blend of the policy makers farmers board of management and the

professionals: each group appreciating its rotes and limitations, Bring at the command of the rural milk producers the best of the technology and harness its

fruit for betterment.

Provide a support system to the milk producers without disturbing their agro-economicsystems,

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

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

members. In that sense. Amul is an example par excellence, of an intervention for rural

change.

The Union looks after policy formulation, processing and marketing of milk, provision of technical

inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better

feeds and the like - all through the village societies. Basically the union and cooperation of people

brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED) , a name which suggest

THE TASTE OF INDIA .


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PROJECT FIRST PART

Effective implementation of Amul milk shopeeDistribution channel study is a very important factor

To know the amuls milk market To know the hurdles & obstacles in selling of amul milk To increase the amul milk sale in market at amul milk retailer To add new retailer or to incease the network of distributor To know other milk brand keeper attached with Amul with other products To get the feedback on selling of amul milk in the market To know the retailers and consumers opinion To get the suggestions for improvement

Different regions of Jaipur were allotted to me so there were different types of observations which Ihave found there.

Our main task was to set a chain of retail network in those areas so that penetration of Amul Milk can be increased and it should make easily available to the consumer.The consumers were also not fully aware of availability of Amul Milk in their area.


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WORKING METHODOLOGY:-

Route Visit:-

We visited the routs with the distributers vehicle where the distributer supplies the products.Our main focus was on milk. By this we knew what are the front selling hurdles of retailers for amulmilk.We also convince those retailers who were attached with the amul with other products (except milk ) to sell amul milk.And also note down the per day sales of amul milk at respective retailers and also tried to know thementality of the consumers and retailers.

Fill the gapIncrease the amul milk saleAdded new retailersMade the service proper i.e. distributor to retailer Promotion by amul milk wall painting, stickers

I visited following two distribotors route with the salesman

1. NK Agency (Salesman- Mohd. Aneesh)-

Raja Park Tilak Nagar Adarsh Nagar

2. Ashoka Agency (Salesman- Mr.Kailash Sharma)-

Railway StationRailway Station RoadSindhi CampJalupuraJohari Bazar Bapu Bazar Choura RastaBadi Chopar Subhash Chowk

We had a format to note down the necessary information regarding amuls milk market.We use to approach every retailer of amul and discuss the hurdles and obstacles for amul milk andnote down all the necessary information, which could be useful for our projects research work.


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SECOND PARTMarket Research for Advertisement

OR Ad tracking

Marketing Research

Marketing research plays an important role in the process of marketing. Starting with marketcomponent of the total marketing talks. It helps the firm to acquire a better understanding of the

consumers, the competition and the marketing environment.

Definition-

Marketing research is a systematic gathering, recording and analysis marketing problem to facilitatedecision making.

- Coundiff & Still.

Marketing research is a systematic problem analysis, model building and fact finding for the

purpose of important decision making and control in the marketing of goods and services.- Phillip Kotler.


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MAIN STEPS INVOLVED IN MARKETING RESEARCH :

Defining the Marketing Problem to be tackled and identifying the market research problem involvedin the task.

A.Background

1.Purpose or Objective of Marketing Research or Purpose of Ad Tracking2. Identify the problem.3. Information requirement & Source of Information

B.Research Methodology

4. Sampling5. Field Work 6. Research Limitations

C. Measures Or Primary Tabulation, Analysis & InterpertationD.Findings, Conclusion & Suggestion

Every day when we open the newspaper or see T.V. channels we are bombarded with theadvertisements, designed by marketer that draws the customers brain in the organization.

Ad tracking , also known as post-testing or ad effectiveness tracking is in-market research thatmonitors a brands performance including brand and advertising awareness, product trial and usage,and attitudes about the brand versus their competition.

Depending on the speed of the purchase cycle in the category, tracking can be done continuously (afew interviews every week) or it can be pulsed, with interviews conducted in widely spaced waves(ex. every three or six months). Interviews can either be conducted with separate, matched samplesof consumers, or with a single (longitudinal) panel that is intervewed over time.

Since the researcher has information on when the ads launched, the length of each advertising flight,the dollars spent, and when the interviews were conducted, the results of ad tracking can provideinformation on the effects of advertising.


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2.Research Problem

Increase the awareness level of AMUL MILK.

To find the performance of AMUL MILK vis--vis other Brands.

To know the consumer psyche and their behaviour towards AMULMILK.

Advertising is a paid form of non-personal presentation and promotion of ideas,goods or services by an identified sponsor.

3. Information requirement & Source of Information

First, I had to know about all the competitors present in the milk segment (Reputed and well established brands as well as Local brands).

Before going for the survey I had to know the comparative packs and prices of all the competitors existing in the market.

Since milk is a product that attracts everyone hence I had to trace the market and segment it,

which mainly deals with people of various age groups.

As Amul Milk advertisements are mainly done through hoardings but on television theadvertisement is being telecasted timely and on the proper time or not.

Information on when the ads launched, the length of each advertising flight, the money spent,and when the interviews were conducted


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B. Research Methodology or Research Design

1. SAMPLING

1. Sampling Technique : Non probability sampling(A non probability sampling technique is

that in which each element in thepopulation does not have an equalchance of getting selected)

2. Sample Unit : People who buy milk from dairy boothsuperstores, etc.

3. Sample size : 200 respondents (Age rangingbetween 15 yrs to 65 yrs)

4. Method : Direct interview through questionnaire.

5.Method for calculation : Software-ANNOVA

6. Data analysis method : Graphical method.

7. Area of survey : Jaipur City


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2. FIELD WORK- METHOD USED FOR DATACOLLECTION

y Questionnaire was prepared keeping the objective of research in mind.

y Questions were asked to respondents as regards to their willingness to purchase Amul Milk.

y The help of questionnaires conducted direct interviews, in order to get accurate information.

y In order to get correct information I had to approach consumers ranging from 15 yrs to 65yrs.

y It is really a Herculean task to understand Consumer Behavior, as the definition suggest, Consumer behavior is a physical activity as well as decision process individual engaged inwhen evaluating, acquiring, using and disposing goods and services.

y In order to collect accurate information I visited to Garden, Temple, and Superstores,Malls each and every question was filled personally by the respondents and checkedproperly.

y People were not willing to answer, when they were contacted between 1.00 pm to 5.00 pm,the time when most of the people take rest during the scorching heat.


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3. LIMITATIONS

Limited time available for interviewing the respondents. As a result of this it was not possibleto gather full information about the respondents.

When I interviewed children and teenagers, sometimes they are not aware of the new TVC adas compare to the old one.

As summer training is going under summer season so sometimes people are less interested in filling up questionnaire.

Sometimes the problem which I face is language problem for which I have to make themunderstand.

Non-cooperative approach and rude behavior of the respondents.

If the respondents answer does not falls between amongst the options given then it will turnup to be a biased answer.


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D. MEASURES OR PRIMARY TABULATION, ANALYSIS &INTERPRETATION

[1]The mind share for different milk brands among therespondents are:

Saras Amul Lotus Gorus OthersTop of Mind 57% 34% 2% 8% 0%

Second 35% 52% 3% 4% 3%

Third 6% 6% 27% 4% 4%

INFERENCE

57% respondents consider Saras as Top of mind brand while 34% respondents consider Amul as top of mind Brand

[2] Awareness about Amul Milk Brand-Yes 94%No 6%

0%

50%

100%

Saras Amul Lotus Gorus Others

Mind Share For Different Milk Brands

Top of Mind Second Third


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94% of respondent are aware of presence of Amul milk in city Print Media, TVC and Word of mouth act as major source of awareness Wall painting act as effective medium for awareness

[4]The awareness of Amul milk ads, among the respondents, aware of amulmilk are?Amul Dudh pita hai india 67%DUDE WHR IS THE DUDH 33%

INFERENCE

The Amul Dudh Pita hai India TVC is rated higher in awareness level than the new TVC.

[5] The new TVC is considered asHonest Energetic Refreshing

17% 41% 42%

67%

33%

Awareness of Amul Milk Ads FromThe Respondents Aware of Amul

Milk

Amul Dudh pita haiindia

DUDE WHR IS THEDUDH


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INFERENCE New commercial is energetic and refreshing but low in honesty 54% of respondents who viewed the tvc are ready to try amul milk, remaining 46% are

undecisive or not interested.

[6] Top of mind brands for different OccupationBrands Student Housewife service BusinessSARAS 62% 29% 100% 72%AMUL 36% 45% 0% 16%LOTUS 0% 0% 0% 13%GORUS 2% 25% 0% 0%

INFERENCE

17%

4 1%

4 2%

New TVC Ads Considered As

Honest

Energetic

Refreshing

0%

20%

4 0%

60%

80%

100%

Student housewife service business

Top of Mind Brand For DifferentOccupation

SARAS

AMUL

LOTUS

Gorus


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Amul is considered as 1 st choice by House wifes while Others consider Saras.

[7] TOP OF MIND BRAND FOR DIFFERENT AGE GROUPSBrands 40SARAS 71% 61% 45% 45%AMUL 29% 37% 12% 55%LOTUS 0% 0% 10% 0%Gorus 0% 2% 33% 0%

INFERENCE

Respondent above 40 years consider Amul as their first choice. Saras leads as top of mind brands for Children and Youths.

[8] Awareness of Amul milk v/s top of mind brand?

SARAS 55%AMUL 35%LOTUS 2%Gorus 8%

0%10%20%30%

4 0%50%60%70%80%

4 0

Top of Mind Brand For Different AgeGroups

SARAS

AMUL

LOTUS

Gorus


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INFERENCE

Saras Considered as top of mind with 55% while Amul Milk Considered as Second with 35%

[9]% of medium of awareness for the respondents aware of new Amul milk advertisement?TV 78%Print Media 11%Word of Mouth publicity 1%

INFERENCE

TVC act as strongest medium for awareness generation of new Amul milk ad.

[10] % analysis for new Amul milk TVC on different parametersParameters Bad Av. GoodIn getting Mind Share 3% 21% 76%In conveying message 2% 21% 77%

55%35%

2% 8%

Awareness of Amul Milk v/s topof Mind Brand

SARAS

AMUL

LOTUS

Gorus

0%

50%

100%

TV Print MediaWord of Mouth publicity

Medium of Awarness for therespondents aware of new Amul Milk

Advertisement

TV

Print Media

Word of Mouth publicity


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Appealing 9% 17% 74%Convincing 9% 39% 52%

INFERENCE

New ad is good in getting mind share, conveying message but comparatively low inConvincing

[11] % analysis for the type of adds for the new AMUl milk TVC?

Honest 11%Energetic 45%Refreshing 43%Non-credible 1%

0%

20%

4 0%

60%

80%

IN gettingMind Share

Inconveyingmessage

Appealing Convincing

Analysis for New Amul Milk TVC onDifferent Parameters

Bad

Av.

Good


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INFERENCE

New commercial is energetic and refreshing but low in honesty

11%

4 5%

4 3%

1%

Analysis for the type of Add forthe new Amul Milk TVC

Honest

Energetic

Refreshing

Non-credible


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THIRD PART

SALES PROMOTION STRATEGIES OF AMUL CURD

INTRODUCTION:-

Our world today is characterized by the promotion. Every day when we open the newspaper or seeview on T.V. channels we are bombarded with the advertisements.

Just look at the prized sponsored by several firms at the end of well known television programmedlike Shaktiman on Doordarshan, Airtel desh ki awaj, Dus ka Dum, Indian Idol on Sony, etc.

Channels it isnt the prized on the television to attract the customers it may have discount coupons,gifts and several similar incentives program creatively. Designed by marketer that draws thecustomers brain in the organization.

Sales promotion is one of the most loosely used terms in marketing but in beverages companies ituse separate. Sales promotion consist short term incentives to encourage purchase and sales or services.

WHO USING SALES PROMOTION TOOLS:-

SALES PROMOTION tools are used by most organization including manufactures, distributers,traders, nonprofit instructions, and retailers etc. Today many customers packaged goods companyssales promotion accounts for 75% or more of all marketing expenditure, Sales promotion 12%annually, compared with advertising increase of only 7.7%

Sales Promotion is basically in 3 Forms-

Consumer promotion: - Targeted final buyers.Trade promotion: - Targeted retailers and wholesalers.Sales force promotion: - Targeted the numbers of sales force


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OBJECTIVE OF SALES PROMOTION:-

Sales Promotion is main tool for increasing sales, so here are following causes for adopting salespromotion.

1. To stimulate the demand by popularizing product.2. To face competition effectively.3. To keep the memory of products in mind of consumers.4. To supplement the personal selling and advertising.5. To establish the large market segment.6. To capture more market share from competitor.7. To maintain the market.8. To attract distributors towards our brands.9. To attract more consumers by giving them free gifts on products.10. To include middle man wholesaler and retailers to purchase goods in large quantity

by offering them more facilities on higher trade more cash discount, bonus etc.11. To arrest seasonal decline in sales.12. To assist sales man in increasing sales, achieving sales target and salesmans

activities for problem sales.13. To help of products this introduced in market recently.14. To introduce such sales promotion methods as to adopt aggressive selling and their by

increase sales.15. To stimulate market research.

METHODS OF SALES PROMOTION:-

Various types of sales promotion methods are being used in the organization in AMUL thesefollowing methods are using in sales promotion technique.

1. Consumer sales promotion methods.2. Traders, wholesalers, retailers sales promotion methods.3. Sales force promotion methods.

1. Consumer sales promotion methods - Consumer sales promotion methodsare those which are directed at consumers to induce them to buy the companysproduct, that are some consumer sales promotion devices.

Free trials Samples Premium Bonus stamps Cash refund offer


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2. Trade sales promotion method - Trade sales promotion is an incentive givento middle man to buy. Good in large quaint from the producer or manufacturer. Themain sales promotion methods are such as:

Discount Display and advertising allowance Buy-back allowances Store demonstration Free goods Free tours etc.

3. Sales Promotion method Sales promotion method is those methods whichintended to motivate the sales force to increase sales. These methods support a salesman to perform his job more effectively and sincerely.

Bonus to sales force Sales force contests Sales meeting convention and conferences.

PROMOTION STRATEGIES:-

A promotion strategy is an important element of market strategy. A key ingredient in marketingcampaigns consists of a diverse collection of incentives tools, mostly short term, designed tostimulate quicker or greater purchase of particular products or services by consumers or trade.

SALES PROMOTION VARIABLES:- Discount for retailers. Scheme for retailers.

Objective of the work study:-

To get the retailers wants in terms of product selling. To know effectiveness of the marketing strategy and sales promotions in market. Ensuring the visibility of the product. Ensuring the availability of products in outlets. Analyzing the effect of scheme. Analyzing the effect of discounts. Evaluating the competitors strength and weakness in rural market. Retailers expectation from company.


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WORKING METHODOLOGY:-

Route Visit:-

We visited the routs with the distributers vehicle where the distributer supplies the products.I observed the display norms for outlets in all route and each type of outlet.Every day I went to the corresponding route and observed all techniques of selling product toretailers by AMUL salesman and also try to know the mentality of the consumers and retailers.I visited following route with the salesman.

C-Scheme Civil Lines Ram Nagar Sodala Shyam Nagar

With this work I interviewd the retailers, in that I asked about the scheme that the company is givingon the Curd. I also satisfied them that their profit would not be distributed by the distributer & wouldget full margin in selling every pouch of AMUL CURD.Also promoted the Amul curd by distributing stickers & pamphlates to every retailer.At last I took the consumer and retailers feedback.


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5.Findings, Conclusion & Suggestion

FINDINGS

During the survey it was found that still there are less no. of people who does not seen the

new AMUL MILK TVC Ads.

Lack of Awareness in consumers. Many people do not know about Amul MILK speciallychildren and teenagers.

As I found that the main product of Amul is Milk and company firstly wants to capturemaximum market share in milk market which is approx. 66%, after it Amul is concentratingupon butter & cheese which has market share of approx. 88%

When I interviewed people then many of the people cannot recall the new Amul MILK TVC advertisement. It shows advertisement is not timely given or advertisement is notgiven on right time.

Not using any brand ambassador in advertisement which attracts all age group people likeMother Dairy.

SARAS is the main competitor and strategically better performer then Amul.

I find the main thing is that Amul brand name has very good image in consumers mindand they consider it as Pure & Good Product.

People who have tasted Amul MILK are not ready to purchase the same again.


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CONCLUSION

As we know that Amul is very big organization and market leader in dairy products. Ithas maximum market share in Butter and Cheese, Ice-Cream which are its main/core products. Aswe know Amul is a co-operative organization but milk industry is a profitable industry we cantignore it. With the help of research, company can find out its weak points in milk segment and canincrease its market share through rectify mistakes. People have believed in Amuls product andthey will accept its milk also if effective actions are taken.This project was a greater importance to me ,I have learnt a lot in this project . This project showsme the way to work in the market .How to communicate with different type of people .How toconvince one for better job .Learnt how to sell ,how things work in Fast moving Consumer goods .having perishable nature of these product one need a excellent distribution network and carefully select market because theseproduct if transferred to far area then cost attached to the product will make it un competitive .

Milk marketing is full game of Branding .if branding of a product is done then the following thingshas to be taken into consideration like availability of product ,continuous change in the product asrequired by consumers and third is price of the product according to satisfaction level of the peopleand last but not the least is the visibility of product and a promotional strategy to hit, peoples mind.Ultimately I must say that I am privileged to work in the company like Amul and get such a real timeexposure of FMCG company .

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 theconsumer towards them and also leads to increase sales.

In comparison to Amul Milk, the other players such as Saras, Lotus, Gorus and Others provide a

better availability and give competition to the hilt.


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SUGGESTIONS

In order to maintain and increase the sales in the city of Jaipur, the following recommendationsregarding Amul MILK; particularly regarding advertisement, distribution, promotional policies,etc, are hereby suggested.

First and foremost Amul should take proper action in order to improve service, becausealthough being on a top slot in Dairy products supplies it does not get the sales in Milk,which it should get. Control over the order generation and order placement should be madestrict, this only factor can improve the milk sale 10% to 20%.Right now this is very manualand based on estimation which cause sometimes oversupply sometimes short of supply, andretailers get unsatisfied by the service of the company.

Company should use brand ambassador which attracts each age segment i.e. Saniya Mirza,Shaktimaan, Amitabh Bacchan, Superman, Krrish, Jadoo etc.

Amul should give local advertisements apart from the advertisements given at the nationallevel. Local advertisement must mention the exclusive Amul shops of the city.

Try and change the perception of the people through word of mouth about Amul inadvertisements, because they are the best source to reach Children and families.

Though Amul Milk advertisements are rarely shown on television yet many people couldrecall it as per the data of research. It shows that there is only need to give advertisementonly to rememorize customers. Because Amul is very strong brand name.

Advertisement can be done with the help of animations that attracts children and teenagersbecause milk is consumed largely in this segment.

Amul milk new TVC must have shown milk benefits on health directly and there should havebe a comparison with local milk in terms of quality & benefit.


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6.BIBLIOGRAPHY

Philip Kotler for marketing management

www.amul.com www.amuldairy.com www.google.com www.dairy.com www.indiandairy.com


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APPENDIX

Project-First Part

Format for milk information

Date- GCMMF (AMUL)Area-Distributor-

S.NoRetail outletname Address

ContactNo.

MilksellingY/N Milk Brand Sale (Carrat) Remark

1

2

3

4

5

6

7

8

9

10

11

11

12

13

14

15

16

17

18

19

20

21


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25263114 amul projects by ravi kant saini

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