“ANALYSIS OF CONSUMER PREFERENCE FOR AMUL BUTTER AND AMUL LITE

AND THEIR COMPETITOR’’

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

OF THE DEGREE OF POST GRADUATE DIPLOMA IN MANAGEMENT

CHANDRAGUPT INSTITUTE OF MANAGEMENT

PATNA

BY

NAINA

[15/06/2015]

CHANDRAGUPT INSTITUTE OF MANAGEMENT PATNA

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EXECUTIVE SUMMARY

This project titled “Analysis of consumer preference for Amul butter and Amul lite’’. Mainly

focus on identifying the technical difference in Amul butter and Amul lite. Project also focuses

on communicational difference in advertising of Amul lite which has resulted in difference in

sale volume. The awareness of Amul lite and delicious which is low fat butter is less among

people Proper consumer survey is needed to be done to understand the buying pattern of

consumers and consumer preference. The area of my project is to understand the compositional

difference and communicational difference which has led to difference in the sale volume of

Amul Butter and Amul Lite. The research draws attention to the fact that Amul has been the

market leader in India in the category of bread spread, the market share of Amul is around 63%

the shares of their key competitors such as Sudha has 16%, Nutralite has 17%, and other butter

has 4% . The further investigation reveals that this market shrinkage coincide with an increase in

heath awareness amongst consumers moreover an increasing number of rivals are also appearing

like Nuralite and others. Moreover market survey of consumers and retailers and meeting with

distributors also indicates flaw in the supply of Amul bread spread products.

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DECLERATION

This is to certify that this report entitled “Analysis of consumer preference for Amul butter and

Amul lite’’ submitted by NAINA to Chandragupt Institute of Management Patna, as a

requirement for the award of the Post Graduate Diploma in Management, is a bonafide record of

research work carried out by him/her under our supervision. The contents of this report, in full

or in parts, have not been submitted to any other Institute or University for the award of any

degree or diploma.

(REBTI RAMAN) ------------------------------ (Sign)

(RAJESH KUMAR) ------------------------------- (Sign)

Date: ___________________

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ACKNOWLEDGMENT

The satisfaction that comes through the successful completion of any task would be incomplete

without mentioning the names of people who made it possible because success is the epitome of

hard work and guidance so with gratitude, I acknowledge all those guidance and encouragement

that served as a beacon of light and crowned my effort with success so far.

I avail this opportunity to express with utmost sincerity my thanks to all people of Gujarat

cooperative milk marketing federation ltd(GCMMF Ltd) for giving me this opportunity to

undergo my summer internship in this prestigious organization.

I am deeply grateful to Mr Manoj Prabhakar and Mr Rebti Raman assistant sales manager for his

support suggestion and enthusiasm which helped me in the successful completion of this report

and to have thorough knowledge of the subject and its application.

I would like to thank Prof. Rajesh faculty mentor for providing me the key inputs at every step

for the project and extending his continuous support during the complete tenure.

I also express my gratitude to Dr V Mukund Das director Chandragupt Institute of Management

Patna for giving me an opportunity to work with Amul.

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Table of content

Sr. No Content Page no

1 ACKNOWLEDGEMENT 1 - 3

2 EXECUTIVE SUMMARY 4

3 DECLERATION 5

4 INTRODUCTION ABOUT THE PROJECT 6

5 INTRODUCTION ABOUT THE COMPANY 7 - 10

6 AMUL MODEL 11 - 12

7 INTRODUCTION ABOUT BUTTER 13 – 16

8 RESEARCH METHODOLOGY 17 - 18

9 CONTENT ANALYSIS OF INTERVIEW 19 - 20

10 ANALYSIS OF PRIMARY DATA 21 - 33

11 OUTCOME OF INDEPTH INTERVIEW 34

12 SWOT ANALYSIS 35 – 36

13 CONCLUSION 37

14 RECOMMENDATIONS 38

15 REFFERENCE 39

16 ANNEXURE-1 40 - 42

17 ANNEXURE-2 43 - 44

18 ANNEXURE-3 45-46

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INTRODUCTION ABOUT THE PROJECT:-

Bread spread comes under the FMCG sector. The products in this category are the fat dominated

spred which includes butter cheese lite and margarine. The Indian market of bread spread is

estimated to be nearby rs 1800 crores. Amul has ruled this market in India with its range of

bread spread products with all types .Several generation of Indian consumers have grown up

with the taste of Amul butter for past six decades. Amul brand of GCMMF has a consumer

preference because of its quality and taste other prime players of this category are Britannia,

Nutralite, mother dairy, and Sudha. Regional and local dairy products are also competitors in

this arena.

The change in lifestyle of consumers in the past decades has complicated them to change their

food habits to suit their fast routine. Keeping these health concerned consumers in mind, the lite

products such as Amul lite was introduced in the category of bread spread, which have low

calorie content and suit the consumer who do less physical activity so that they can avoid

medical illness.Taking advantage of this, Zydus wellness camp up with Nutralite bread spread

which claims to be better than butter and is posing a threat to the entire butter category

consumers perceive Nutralite as an easy way to reduce calorie intake rather than changing their

routine to metabolize butter. After Nutralite came into market, Amul came up with Delicious

(margarine) but butter continues to be its main category. Nutralite has managed to secure a

market share of around 17% of that of Amul .

In the market of Patna, brand of Sudha, Zydus, Britannia, are present in the bread spread

category. Moreover local daries also manufacture butter which is also a competitor.

The market of Amul butter, in Patna butter continues to be the main category for Amul.

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INTRODUCTION OF AMUL COMPANY

The Birth of Amul

It all began when milk became a symbol of protest

Founded in 1946 to stop the exploitation by middlemen

Inspired by the freedom movement

The seeds of this unusual saga were sown more than 65 years back in Anand, a small town in the

state of Gujarat in western India. The exploitative trade practices followed by the local trade

cartel triggered off the cooperative movement. Angered by unfair and manipulative practices

followed by the trade, the farmers of the district approached the great Indian patriot Sardar

Vallabhbhai Patel for a solution. He advised them to get rid of middlemen and form their own

co-operative, which would have procurement, processing and marketing under their control. 

In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel.

Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and

Tribhuvandas Patel, they formed their own cooperative in 1946. 

This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just

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two village dairy co-operative societies and 247 litres of milk and is today better known as Amul

Dairy. Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas

Patel, the founder Chairman and the committed professionalism of Dr Verghese Kurien,who was

entrusted the task of running the dairy from 1950.The then Prime Minister of India, Lal Bahadur

Shastri decided that the same approach should become the basis of a National Dairy

Development policy. He understood that the success of Amul could be attributed to four

important factors. The farmers owned the dairy, their elected representatives managed the

village societies and the district union, they employed professionals to operate the dairy and

manage its business. Most importantly, the co-operatives were sensitive to the needs of farmers

and responsive to their demands. At his instance in 1965 the National Dairy Development Board

(NDDB) was set up with the basic objective of replicating the Amul model. Dr. Kurien was

chosen to head the institution as its Chairman and asked to replicate this model throughout the

country. Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) is India's largest food

product marketing organization with annual turnover (2012-13) US$ 2.54 billion. Its daily milk

procurement is approx. 13 million lit per day from 16914 village milk cooperative societies, 17

member unions covering 24 districts, and 3.18 million milk producer members. It is the Apex

organization of the Dairy Cooperatives of Gujarat, popularly known as 'AMUL', 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. Its success has not only been

emulated in India but serves as a model for rest of the World. It is exclusive marketing

organization of 'AMUL' and 'SAGAR' branded products. It operates through 48 Sales Offices

and has a dealer network of 5000 dealers and 10 lakh retailers, one of the largest such networks

in India. Its product range comprises milk, milk powder, health beverages, ghee, butter, cheese,

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Pizza cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc. GCMMF is

India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. Many

of our products are available in USA, Gulf Countries, Singapore, The Philippines, Japan, China

and Australia. GCMMF has received the APEDA Award from Government of India for

Excellence in Dairy Product Exports for the last 13 years. For the year 2009-10, GCMMF has

been awarded "Golden Trophy" for its outstanding export performance and contribution in dairy

products sector by APEDA For its consistent adherence to quality, customer focus and

dependability, GCMMF has received numerous awards and accolades over the years. It received

the Rajiv Gandhi National Quality Award in1999 in Best of All Category. In 2002 GCMMF

bagged India's Most Respected Company Award instituted by Business World. In 2003, it was

awarded the The IMC Ramkrishna Bajaj National Quality Award - 2003 for adopting

noteworthy quality management practices for logistics and procurement. GCMMF is the first

and only Indian organization to win topmost International Dairy Federation Marketing Award.

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GCMMF OVERVIEW

Year of Establishment 1973

Members 17 District Cooperative Milk Producers'

Unions (16 Members & 1 Nominal

Members)

No. of Producer Members 3.18 Million

No. of Village Societies 16,914

Total Milk handling capacity per day 16.8 Million litres per day

Milk Collection (Total - 2012-13) 4.66 billion litres

Milk collection (Daily Average 2012-13) 12.7 million litres

Cattle feed manufacturing Capacity 5890 Mts. per day

Sales Turnover -(2012-13) ` 13735 Crores (US $ 2.54 Billion)

The Amul Model

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

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

middlemen

Milk Producers (farmers) control

procurement, processing and

marketing

Professional management

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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 1,44,500 dairy cooperative societies across the

country. Their milk is processed in 184 District Co-operative Unions and marketed by 22 State

Marketing Federations, ensuring a better life for millions.

Reference - http://www.amul.com/m/about-uss

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INTRODUCTION ABOUT BUTTER

The word butter comes from bou-tyron, which seems to mean "cowcheese" in Greek. Some

scholars think, however, that the word was borrowed from the language of the northern and

butterophagous Scythians, who herded cattle; Greeks lived mostly from sheep and goats whose

milk, which they consumed mainly as cheese, was relatively low in butter (or butyric) fat.

Making Butter Traditionally

First, the cream is separated from fresh whole milk. The cream is then churned by shaking or

beating it vigorously until it thickens. The remaining liquid (buttermilk) is removed. The

clustered butter is washed and formed into its solid shape.

Making Butter Today

Fresh milk from dairy farms is collected and brought to the creamery. The cream is then

separated from the fresh whole milk using centrifugal force. It is then pasteurized by heating it

rapidly to a high temperature to eliminate potential disease-causing bacteria and help the butter

stay fresh longer.

Once pasteurized, the cream is beaten vigorously in a churning cylinder until it thickens

naturally into butter. The remaining liquid (buttermilk) is drained off, and the butter is mixed

and blended. At this point, salt is sometimes added.

The final product is, by regulation, at least 80% fat, about 16% water and 3% milk solids. After

being weighed, cut, wrapped and chilled, the butter is delivered to your grocery store, ready for

you to add to your favorite foods

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TYPE OF BUTTER

Churned butter- Churned butter is traditional, salted butter made by churning pasteurized cream.

By Canadian regulations it contains at least 80% fat, about 16% water and about 3% milk solids.

It is generally available in 1 lb (454 g) blocks, 8 oz (250 g) blocks and 1 lb (454 g) blocks of 4

individually wrapped sticks. Churned butter is available in salted and unsalted versions, as well

as “semi-salt” with about half the amount of salt of regular salted butter

Sweet butter- Also labeled “unsalted butter”, sweet butter is the same as churned butter but

made without any added salt. It is used in baking and for general cooking and allows for more

control of the salt level added to a dish. Sweet butter doesn’t stay fresh as long as salted butter

so should be used soon after purchase

Light butter- Light butter is traditional churned butter that has added air and water and is about

25% lower in butterfat than regular butter. Because of the added water, light butter is best used

cold as a spread on bread or crackers and isn’t well suited to cooking or for melting on hot foods

such as toast or popcorn. It shouldn’t be used in recipes unless they are specifically created for

light butter

Cultured butter- Cultured Butter is butter made from cream that is cultured with active bacteria

(similar to yogurt) and has a distinctive, slightly tangy taste. It can be used interchangeably with

regular butter in cooking where the tangy taste will complement the recipe. Cultured butter has a

longer shelf life than traditional churned butter and is available in salted and unsalted versions.

Cultured butter is common in Europe and is becoming increasingly available in Canada. It may

also be called “Old Fashioned” or “Antique”.

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Other type of butter-

Flavoured Butter- Flavoured butter is traditional butter with added flavourings such as garlic,

spices and herbs. Using flavoured butter adds different seasoning to foods, along with a pure

butter taste. You can also make your own flavoured butter.

Blended Butter- Blended butter is a blend of real butter with liquid oil, such as canola, to make a

spread that tastes like butter, yet is soft and easy to spread straight from the refrigerator. Blended

butter is available in regular and light versions.

Whey Butter- Whey butter is made from the whey that has been separated from the curd in cheese

making. Whey butter has a deeper yellow colour and stronger flavour than churned butter with a

cheese-like flavour and is sometimes salty if the curd was salted. It is often found at specialty

stores and farmers’ markets.

Whipped Butter-Whipped butter is butter with air whipped into it to make a lighter, softer spread.

It is often served in restaurants for spreading on dinner rolls or pancakes. Whipped butter is not

interchangeable with regular butter for cooking or baking.

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MARGARINE

Margarine is an imitation butter spread used for spreading, baking, and cooking. It was

originally created from beef tallow and skimmed milk in 1869 in France by Hippolyte Mège -

Mouriès, as a result of a challenge proposed by Emperor Louis Napoleon III, as a substitute

for butter which would later be renamed “margarine”. Whereas butter is made from the butterfat

of milk, modern margarine is made mainly of refined vegetable oil and water, and may also

contain milk. In some locales it is colloquially referred to as "oleo", short for oleomargarine.

Margarine, like butter, consists of a water-in-fat emulsion, with tiny droplets of water dispersed

uniformly throughout a fat phase which is in a stable crystalline form. Margarine has a minimum

fat content of 80%, the same as butter, but unlike butter, reduced-fat varieties of margarine can

also be labeled as margarine (in some countries). Colloquially in the US, the term margarine is

used to describe "non-dairy spreads" like Country Crock, and I Can't Believe It's Not

Butter! with varying amounts of fat content. Margarine usually tops butter when it comes to

heart health. Margarine is made from vegetable oils, so it contains no cholesterol. Margarine is

also higher in "good" fats — polyunsaturated and monounsaturated — than butter is. These

types of fats help reduce low-density lipoprotein (LDL), or "bad," cholesterol when substituted

for saturated fat.

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RESEARCH METHODOLOGY

RESEARCH METHOD: - Research methodology depends to a large extent, on the target

population, and how easy of difficult to access it is. The second factor which influence research

methodology is, of course, the importance of decision which will be taken based on the research.

Research method is based on primary, quantitative and qualitative data.

PRIMARY METHOD- The primary data refer to original information gathered for

specific purpose and provide up to date, relevant and accurate information according to

the need of the problem

QUANTITATIVE – In this method interviewer administered questionnaire face to and

then Data analysis method is used using the statistical method, bar graph, pie chart, and

demand.

QUALITATIVE- This involve more control over the cause and effect, when compared to a

survey. In experiments we try to measure the effect of one or more variable. I have also prepared

SWOT analysis was also undertaken

SAMPLING:-

SAMPLING METHOD

CONVINENCE SAMPLING - A statistical method of drawing representative data by selecting

people because of the ease of their volunteering or selecting units because of their availability or

easy access. The advantages of this type of sampling are the availability and the quickness with

which data can be gathered.

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SAMPLING UNIT

It refers to the individuals who are to be surveyed in the study and it includes adult male and

female, users and non users of butter

SAPLING SIZE

It refers to the number of people surveyed for the topic in the study 114 has been surveyed and

response drawn.

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CONTENT ANALYSIS OF INTERVIEWS:-

Once we got the insight of the current demand of AMUL Butter. The analysis and understanding

of the current demand of butter towards certain drawbacks, to understand more and actual

demand of the mechanism and issues, we interview various existing customers of AMUL and

other butter to understand the competitors even.

The factors which came out of the Focus Group Discussion are as follows:

Price

Taste

Availability

Quality

Affordability

Ones the factors are decided the questionnaire was prepared.

DATA ANALYSIS

SPSS

Reliability Of data - The first operation performed on the data was to check its reliability, to

know that the further analysis could be done on this data or not. After getting the value of

Cornbach Alpha greater than 6 the further analysis was done.

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Reliability Statistics

Cronbach's Alphas Cronbach's Alpha Based on Standardized Items

N of Items

.696 .703 5

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ANALYSIS OF PRIMARY DATA

RESPONSE COUNTUSERS 96

NON USER 18

users84%

nonusers16%

Interpretation:-

In the population of Patna my sample size was of 144 people in which, 18% of the population

don’t use butter whereas 96 % of the population prefer occasional use or even regular use of

butter. Generally people of old age avoid butter due to heart problem and moreover people of

age above 55 and above don’t prefer butter, some people use ghee, some people don’t use butter

because it is not of their food habit, the 18% comprises of those people.

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Q. Male or Female?

RESPONSE COUNT

MALE 45

FEMALE 69

39%

61%

% of Male and Female

MALE FEMALE

Interpretation:-

In my survey in Patna I found that among the customer of Amul, 61% of the female purchase

butter and 39% of the male purchase butter this is mainly about who purchase butter in a

household. Mostly female purchase the household stuff therefore they purchase butter as they

know the children preference and family choice of taste.

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Q. What is the Occupation: Student/Businessman/Salaried/Daily Worker/Self-employed/housewife:-

RESPONSE COUNT

STUDENT 63

SALARIED 23

HOUSEWIFE 17

SELF EMPLOYED 11

55%

20%

15%10%

% OF STUDENT,SALARIED,SELF EMPLOYED,HOUSEWIFE

STUDENT SALARIED HOUSEWIFE SELF EMPLOYED

Interpretation:-

In my survey 55% of the people were student , 20% of the people were salaried , 15% of the

people were housewife , and 10% of the people were self-employed. We can see through the

analysis that maximum of the students prefer butter because it is a readymade item for them

moreover students prefer fast food in which butter is used .student mainly prefer butter as a

bread spread as it is a ready to eat and don’t not require much time.

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Q. Age group: 18-24 25-34 35-44 45-54 55=>

RESPONSE COUNT

18-24 59

25-34 31

35-44 12

45-54 12

Interpretation:-

In my survey 53 % of the people were between age group 18-24, and 27% of the people were

between age group 25-34, 11% of the people were between age group of 35-44, and 9 % of the

people were between 45-54 . In the analysis we can see that maximum youth prefer butter ie

people between age group of 18-24, moreover we can also analyze that people of old age does

not prefer butter due to heart problem or due to health issue.

Q. Education: Intermediate/ under graduate/ Post Graduate /Others

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54%

27%

11% 9%

AGE DISTRIBUTION

18-24 25-34 35-44 45-54

RESPONSE COUNT

POST GRADUATE 58

UNDER GRADUATE 20

INTERMIDIATE 20

OTHERS 16

51%

18%

18%

14%

POST GRADUATION UNDER GRADUATION INTERMIDIATE OTHERS

Interpretation:-

In my sample survey 51% of the populations were in post graduation, 17% of the people were

undergraduate and 18 % of the people were intermediate and 14% were of other degree.

Q. Income level: <=25k 25k-50k 50k-75k 75k-1cs 1 lcs=>

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RESPONSE COUNT

<=25K 36

25K-50K 36

50K-75K 34

75K-1LCS 8

<=25k32%

25k-50k32%

50k-75k30%

75k-1lcs7%

INCOME DISTRIBUTION

Interpretation:-

According to the survey 32% of the people lies between the income of 25k-50k, 31% of the

people were of income were less than 25k, 30% of the people had income between 50k-75k and

7% of the people had income between 75k-1lcs. Moreover people whose income was less than

or equal to 25k amongst them 33% of people don’t use butter because they consider it costly.

While 67% of people whose income<=25k use butter. Thus income is also a factor for people to

use butter.

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3. If yes then which brand you prefer?

Amul butter Sudha butter Nutralite Britannia Others

RESPONSE COUNT

SUDHA 15

AMUL 61

NUTRALITE 16

OTHERS 4

16%

64%

17%4%

Sudha Amul Nutralite Others

Interpretation:-

Amul is enjoying the highest market share of 63%, whereas on the second position is Nutralite

followed by Sudha. And 16% of people use other butte like either home made of loose butter

which is generally for commercial purpose.

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Q. You use Amul butter or Amul lite / delicious ?

Amul butter Amul lite Delicious

RESPONSE COUNT

AMUL BUTTER 46

AMUL LITE 7

DELICIOUS 8

75%

11%

13%

% of usage of amul butter,amul lite &delicious

AMUL BUTTER AMUL LITE DELICIOUS

Interpretation:-

As Amul as a parent brand has highest market share but it also include other product of amul

like amul lite and delicious Thus Amul Butter has 75%, Amul lite has 12%, and Delicious has

13% market share

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Q. How often you buy/use butter?

RESPONSE COUNTREGULAR BUYER 35OCCATIONAL BUYER 61

36%

64%

% of regular and occational buyer

REGULAR BUYER OCCATIONAL BUYER

Interpretation:-

64% of the people are occasional users of butter , and 36% of the users are regular users. In

bihar people do not include butter as their regular use an generally use ghee at home inspite of

butter.

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Q. Why you prefer this brand/ due to………….. Quality Taste Price Availability

RESPONSE COUNT

QUALITY 31

TASTE 38

PRICE 7

AVAILABILITY 20

21%

32%

40%

7%

AVAILABILITY QUALITY TASTE PRICE

Interpretation

According to the survey 40% of the people prefer their brand because of taste , 32% of people

prefer their brand because of quality, 21% of people prefer their brand because of availability,

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7% of population prefer their brand because of price .Thus we can conclude that for most of the

people first priority is taste and then quality .

Q. Are you satisfied with the butter you are consuming?

RESPONSE COUNT

SATISFIED 95

NOT SATISFIED 1

99%

1%

%of satified and unsatisfied

satisfied unsatisfied

Interpretation:-

99% of the populations are satisfied with the butter they are using and only one percent of the

population are not satisfied with the butter they are using.

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Q. Why you have chosen Amul butter/Amul lite/delicious ?

Bread spread Low Fat Low Cholesterol Others

RESPONSE COUNT

BREAD SPREAD 68

LOW FAT 2

LOW CHOLESTROL 15

OTHERS 11

71%

11%

16% 2%

BREADSPREAD OTHERS LOW CHOLESTROL LOW FAT

Interpretation:-

Among the sample size 71% of the people use butter for bread spread, 16% of the people use

butter because of the perception of it being low cholesterol, 11% of the people use butter for

other pourpose and 2% of the population use butter because of low fat.

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Q. Are you switching Amul butter/Lite with other brand because of

Taste Quality Unavailability Price Others

RESPONSE COUNT

QUALITY 16

UNAVAILABILITY 68

PRICE 6

OTHERS 6

6% 17%

6%

71%

others quality price unavailability

Interpretation:-

According to my survey 71% of population switch Amul because of unavailability, 17% of

people switch amul because of quality, 6% of people switch Amul because of price and 6%

because of other factors. As Amul is not a regular food habit of people of Bihar so they are not

so specific for the brand of butter they use and if they don’t get the preferred brand they

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purchase the available brand. And according to the survey most of the customers agreed to that

amul has a problem of availability due to which they switch the brand.

OUTCOME OF INDEPTH INTERVIEW TO CUSTOMER OF AMUL BUTTER

AMUL

low visibility is a major problem in the demand of Amul lite , since most of the

customers are unaware of the customer are unaware of the product and its attributes.

Moreover

Amul products are under recognized than their actual quality.

At some places general stores are not happy with the distribution services due to shortage

of Amul products

Amul should also focus on its packaging of butter especially of 500gm because its

competitor like Nutralite provide butter bucket for 500gm which is easy to use and easy

to store whereas Amul provide cardboard box .

As products of Amul are not prepared at Patna or nearby places so it transported by

trains from Ahmadabad and Kolkata to Patna and stored in storage facilities so because

of this there is sometimes shortage of products in the market.

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SWOT ANALYSIS

Amul is one of the largest milk and milk based products manufacturer in India. Known to be the

founder of the white revolution in India, Amul has some strong products and brands up its

sleeves. The Milk & Dairy products company has a very in depth product portfolio including

cheese, butter, curd, chocolates, ice cream, and others. Although Amul is the largest brand still

the visibility of the product is low thus there are some weaknesses in Amul butter and, following

are the points in the SWOT analysis of Amul. 

STRENGTH

Best quality of product associated with strong brand

Trusted by consumers

Creative advertisement

Strong sales force

Good demand in market

WEAKNESS

Supply is less than demand

Poor after sale service

Low visibility of Amul lite and other products responsible for unawareness of these

product amongst consumers

OPPORTUNITY

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MARKET SUPPLY of small packs (10gm)

Spreading awareness about its Lite product for calorie conscious consumers can help it to

restrict and reduce the market of Nutrilite

Sufficient and regular supply of product in market

Entry of new small dairies.

THREATS

Mother dairy has entered into the market of Patna

Health cautious people are unaware about Lite and hence prefer Nutralite

Some consumers are strongly associated with Sudha as it is easily available.

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CONCLUSIONS

1. In my survey 55% of the people were student. We can see through the analysis that

maximum of the students prefer butter because it is a readymade item for them moreover

students prefer fast food. Student mainly prefer butter as a bread spread as it is a ready to

eat and don’t not require much time.

2. Amul is enjoying the highest market share of 63%, whereas on the second position is

Nutralite followed by Sudha.

3. 71% of people switch Amul because of unavailability.

4. In the market of Patna the major competitor brand available in the bread spread is

Nutralite, and Sudha as Sudha has an easy reach to consumers through its dairy parlors.

5. Amul has around 63% share in Patna market of bread spread.

6. Distributor earn a gross margin of 11.63% on Amul butter and 19.23% on Amul lite and

Retailer earn 8.4% margin on Amul butter and 15.68% on Amul lite and 8.89% margin on

10 gm Amul butter pack to retailer

7. Gcmmf is unable to fulfill the demand of in peak season as of festival and auspicious day

when demand is high.

8. Distributor earn gross margin of 19.23% on Amul lite and retailers earn 15.68% on Amul

lite.

9. Distributor earn gross margin of 11.63% on Amul butter. And retailers earn 8.4% margin

on Amul butter.

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10. Distributor earn gross margin of 26.72% on delicious whereas retailers earn 22% margin.

RECOMMENDATIONS

1. Wall painting can be done to increase awareness for Amul lite and margarine products.

2. Small pack of 10gm has less supply which should be increased as it is easy to use and easy to

carry. like children can carry them in lunch box, people can carry while travelling, they can be

served in resultants’ as an option pack for those who want extra butter.

3. More Amul parlors should be opened in Patna to increase visibility manifold and ensure an

easy access to consumers.

4. Amul lite and delicious should be promoted as other options in bread spread to compete

Nutralite.

5. Supply shortage should be monitored regularly to ensure adequate supply so that consumer

don’t switch to other brand

6. Promotional event organization will help to make product visible.even like run for health on

occasion of festival season is recommended.

7. More and more retailers should be encouraged to keep amul lite and delicious to ensure easy

availability to consumers.

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8. Projector films may be shown to the villagers emphasizing on the quality and the hygenity of

Amul. This would help in convincing the people & creating a favourable attitude towards Amul.

9. Suggestions & complaints made by retailers & consumers should be given due Attention to

provide maximum satisfaction. This could create and impression that Amul cares for them.

REFFERENCES:-

1. http://www.amul.com/m/about-uss

2. www.Google.com

3. Wikiepedia

4. http://www.businessdictionary.com/definition/convenience-

sampling.html#ixzz3d7adrYG

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ANNEXURE -1

Dear Sir/Madam,

I am student of Chandragupt Institute of Management Patna and is conducting a survey on

AMUL butter and variant. The purpose of survey is solely academic. It will be very thankful of

you to give your response for my research work.

Respondent Profile:-

Name: Age group: 18-24 25-34 35-44 45-54 55=>

Gender: Male Female

Address:

Education: Intermediate/ Under graduation/ Post Graduation /Others

Occupation: Student/Businessman/Salaried/Daily Worker/Self-employed/housewife

Income level: <=25k 25k-50k 50k-75k 75k-1cs 1 lcs=>

1. Do you use butter?

Yes No

2. If not why don’t you use butter?

It is not my food habit It may cause weight gain

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It increases the risk of heart disease I don’t like taste It is costly

3. If yes then which brand you prefer?

Amul butter Sudha butter Nutralite Britannia Others

4. Why you prefer this brand/ due to………….. Quality Taste Price Availability

5. Are you satisfied with the butter you are consuming?

Yes No

6. How often you buy/use butter?

Regular Occasional buyer

7. You use Amul butter or Amul lite / delicious ?

Amul butter Amul lite Delicious

8. Why you have chosen Amul butter/Amul lite/delicious ?

Bread spread Low Fat Low Cholesterol Others

9. Is Taste a consideration while choosing a Brand of Butter?

1 2 3 4 5

10. Is quality a consideration while choosing a Brand of Butter? (1-strongly disagree,5-strongly agree)

1 2 3 4 5

11. Is price a consideration while choosing a Brand of Butter?

1 2 3 4 5

12. How do you rate Amul as a Brand? (1-lowest 5-higest )

1 2 3 4 5

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13. Is Amul butter/Amul lite affordable in price.

1 2 3 4 5

14. Is your brand of butter affordable in price.

1 2 3 4 5

15. Are you switching Amul butter/Lite with other brand because of

Taste Quality Unavailability Price Others

16. How do you scale your butter?

ATTRIBUTE POOR AVERAGE GOOD EXCELLENTPRICETASTEPACKAGINGAVAILIBILITYSCHEMES

42 | P a g e

ANNEXURE-2

Name of OutletAddress

1. Do you sell Butter ?

Yes No

2. Why would you sell Amul Butter ?

Due to brand

Due to quality

Due to demand

Due to service by distributor

3.Are the product delivered to your shop by the company ?

Yes No

4. How frequently you place the order to distributor ?

Weekly After 10 days After 15 days

5. Does this happen that product is not available when consumers approach to your shop ?

Yes No

6.Which variant of Butter is most demanded by customer ?

10gm 100gm 500gm

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7.What are your weekly sale of Butter ?

Below 100pc 100-200pc 200-250 pc Above 250pc

8.Are you satisfied by the distributor service ?

Yes No

9.In which area you would suggest Amul to improve?

Quality Price Promotion Availability Others

10.Do the customers know about Amul butter or you suggest them ?

Yes No

11.According to you what is the main problem of amul Butter ?

Quality Price Promotion Availability Others

12.Does advertisement affect buying decision of customer?

Yes No

13.Which type of promotion adverts catches customer Eye ?

Poster Magazine Newspaper TV Billboard Others

14.How is your relation with the distributor ?

Poor Average Good Excellent

15.What are the major challenges while selling Amul Butter ?

Quality Price Promotion Availability Others

16.Rate the following:-

POOR AVERAGE GOOD EXCELLENTQUALITYPRICEPROMOTIONAVAILABILITYPACKAGINGSCHEME

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ANNEXURE-3

Dear Sir/Madam,

I am student of Chandragupt Institute of Management Patna and is conducting a survey on

AMUL butter and variant. The purpose of survey is solely academic. It will be very thankful of

you to give your response for my research work.

Respondent Profile:

Name of Outlet :-

Location: -

1. Do you use Butter ?

Yes No

2. If butter then which brand you prefer?

Amul butter Sudha butter Nutralite Delicious Others

Or Unbranded/Loose Butter

3. What quantity do you use ?

10gm 100gm 500gm

4. Are you satisfied with the butter you are using?

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Yes No

5. Have you heard about “AMUL LITE”?

Yes No

6. If yes why you have chosen AMUL LITE

Bread Spread Low Fat Low Cholesterol Other____________

7. Is price a consideration while choosing a Brand of Butter?

1 2 3 4 5

8. Is Taste a consideration while choosing a Brand of Butter(1-lstrongly disagree 5-strongly agree)

1 2 3 4 5

9. Is Quality a consideration while choosing a Brand of Butter

1 2 3 4 5

10. How do you rate Amul as a Brand? (1-lowest 5-higest)

1 2 3 4 5

11. Amul butter is affordable in price.

1 2 3 4 5

13. Are you switching Amul butter with other brand because of unavailability?

1 2 3 4 5

14. You prefer Amul butter over Amul lite why?

Tase Quality Unavailability Others

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15. How do you scale your butter?

ATTRIBUTE POOR AVERAGE GOOD EXCELLENTPRICETASTEPACKAGINGAVAILIBILITYSCHEMES

47 | P a g e