SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL

FULFILLMENT OF PGDM PROGRAM

Project Report

On

Market Analysis of AMUL Products

Submitted By: Internal Guide:

Name: Neeraj Kumar Name: Mrs. Ritu Bajaj

Class: Retail & Marketing Management Designation: Management Faculty

Enrollment No: FRM 1115

Jagan Institute of Management Studies(JIMS)

ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, who directly or indirectly

contributed in the development of this work and who influenced my thinking,

behavior, and acts during the course of study.

I am thankful to Mrs. Ritu Bajaj for his support, cooperation, and motivation

provided to me throughout my project for constant inspiration, presence and

blessings.

I also extend my sincere appreciation to CRMC members who provided his valuable

suggestions and precious time in accomplishing my project report.

Lastly, I would like to thank the almighty and my parents for their moral support and

my friends with whom I shared my day-to-day experience and received lots of

suggestions that improved my quality of work.

Neeraj Kumar

Retail & Marketing Management

Enrollment No: FRM 1115

CERTIFICATE

This is to certify that the project work done on (Market Analysis of AMUL Products)

is an original work carried out by Mr. __________________ under my supervision

and guidance. The project report is submitted towards the partial fulfillment of two –

year, full time Post Graduate Diploma in Management.

His /Her performance, during the project was Satisfactory / Excellent.

Name & Sign of Industry Guide

Date: Name & Sign of Faculty

Student‘s Name and Sign

Roll No.

Mrs. Ritu Bajaj

(Guide/Mentor)

DECLARATION

I hereby declare that the project work entitled “Market Analysis of AMUL

Products” submitted to ‗Jagan Institute of Management Studies(JIMS)‘ for the partial

fulfillment of ‗PGDM program‘ is a record of an original work done by me under the

guidance of Mrs. Ritu Bajaj, Faculty Member, Jagan Institute of Management

Studies, and this project work has not formed the basis for the award of any degree,

associate ship, fellowship or any other similar titles.

Neeraj kumar

PGDM(RM)3rd

trimester

Enrollment No: FRM-1115

PREFACE

AMUL is the pride not only of Gujarat but also of entire country. I have

great pleasure in preparing this project of such organization. A person aspiring to

enter in management profession must have practical knowledge of the subject. The

objective of industrial training is to develop practical knowledge in student as a

supplement to the theoretical study of management in general as well as industrial. It

provides foundation to students intending to pursue a career in this field.

The industrial training is the most exciting experience of the education.

Every person needs some changes from the routine education. For this training

industry is selected by me and fetch information about different products of ‗AMUL ‘,

and its activities. But I concentrated more on taking information about Marketing

for AMUL milk to promote AMUL milk.

As I am student of management and the future Manager the training play

vital role in my education. Because of the industrial training I have knowledge

of industrial environment and I felt hat this would be the part of my life. I become

conscious that I am the manager of future and I should also learn how to solve

managerial problem and fulfill others requirement at the time.

I have tried my best to represent all relevant data and information relating

to my project work. I hope this report will serve the purpose of the readers.

Neeraj Kumar

PGDM(RM)

TABLE OF CONTENT

S.No

TOPICS

PAGE NO.

1 EXECUTIVE SUMMARY

2 INTRODUCTION

3 DECLARATION

4 PREFACE

5 ACKNOWLEDGEMENT

6 OBJECTIVE

7 FMCG:- INDUSTRY OVERVIEW

8 DAIRY INDUSTRY:- OVERVIEW

9 AMUL:- COMPANY PROFILE

10 SWOT ANALYSIS

11 RESEARCH METHODOLOGY

12 DATA COLLECTION & SAMPLING

13 FINDING & INTERPRETATION

14 COMPETITOR‘S ANALYSIS

15 AREAWISE REPORT

16 SUGGESTIONS & RECOMMENDATIONS

17 QUESTIONNAIRE & BIBILIOGRAPHY

EXECUTIVE SUMMARY

This project was undertaken with the objective “Market Analysis of AMUL

Products” in some area of South Delhi. The study was conducted at AMUL India

Ltd, NEW DELHI.

A sample size of 30 was taken from Sagar pur , Janak puri, Vikas puri,dwarka,

Palam, Najafgarh, Mahavir enclave, bharthal for the study, whose responses were

studied and interpreted .The research approach was observation and survey. The

process of analysis was done on the basis of responses.

It was found that major area faces a serious problem of milk curdling within 24 hrs.

which reduces the sales of Amul pouched milk. This problem is noticed only on those

areas where the supply of the milk comes from Softe plant of Amul. This problem

directly affects other factors.

As per the research we found that demand of AMUL product is very high. According

to the research it was a direct interaction with the retailers as well as customers. In the

form of personal interaction from retailers and customers we came to know about the

thinking of customers regarding Amul and its products as gone for a positive response

than its competitors.

FMCG:- Industry Overview

Indian FMCG sector size poised to reach US$ 47 bn by 2013 and US$ 74 bn

by 2018, growing annually at 10-12%.

By 2025, total consumption is likely to quadruple making India the 5th

largest consumer market.

Organized retail is expected to grow by 14-18% by 2015 thereby boosting

FMCG growth.

Indian rural market currently worth US$ 9 bn is expected to become a US$

100 bn opportunity by 2025

Indian FMCG industry worth US$ 29 bn roughly constitutes 2.2% of India‘s

GDP. Within the FMCG sector, Food products are the largest consumption

category.

Strategic focus on rural marketing, innovations, niche consumer segments,

exports,

Life style products to further the current 10% annual sector growth.

KEY PLAYERS Sales*(US$ Mn)

Segments

HUL

3921.5 Personal care, Food products, Household, Baby care, Fabric care

Amul India 1771.1 Food and beverage products

Nestle India 1155.4 Food and beverage products

ITC 805.7 Personal care, Food products

Britannia 759.9 Food products Dabur 635.9 Personal care, Food

products, Household Marico Industries 449.3 Personal care, Household,

Food products GSK Consumer 447.9 Food products, Personal

care Cadbury India 430.1 Food products Colgate Palmolive 391.8 Personal care, Oral care Procter & Gamble 388.5 Personal care, Household ,

Baby care, Fabric care Godrej (GPCL) 280.5 Personal care, Fabric care

GROWTH DRIVERS

Increasing disposable income

Growth in organized retail

High consumer confidence

Well established distribution network

Consumer receptiveness to innovation

Rapid urbanization and changing lifestyles CHALLENGES

Dairy industry: A profile (As per Jan 20, 2011)

India is the world leader in milk production with total volume of 115 million tons.

Driven by steady population growth and rising income, milk consumption continues

to rise in India. Dairy market is currently growing at an annual growth rate of around

7 per cent in volume terms. The market size of Indian dairy industry stands at around

US$ 45 billion.

Since India‘s population is predominantly vegetarian; milk serves as an important

part of daily diet. Indians use milk in various preparations such as in brewing tea and

coffee, in making yogurt or curd and in preparing many Indian dishes. For most

households, milk is also a popular beverage due to its nutritional value.

In India, rural households consume almost 50 percent of total milk production. Of the

share of milk sold in the domestic market, almost 50 percent is consumed in fluid

form, 35 percent is consumed as traditional products (cheese, yoghurt and milk based

sweets), and 15 percent is consumed for the production of butter, ghee, milk powder

and other processed dairy products (including baby foods, ice cream, whey powder,

casein, and milk albumin).

Most dairy products are consumed in the fresh form and only a small quantity is

processed for value addition. In recent years, however, the market for branded

processed food products has expanded. Although only around 2 per cent food is

processed in India, still the highest processing happens in the dairy sector, where 35

per cent of the total produce is processed, of which only 13 per cent is processed by

the organised sector.

KEY FACTS

65 per cent of the milk is sold in ―loose‖ form

Only 5 per cent of the milk is sold through retail chains

70 per cent is delivered to the homes by ‗milk agents‘

Carton milk or packaged milk has been growing at 24 per cent annually

Most branded FMCG companies are keen on launching flavoured dairy products

whose market size is pegged at US$ 166 million

PER CAPITA AVAILABILITY OF MILK

Year Grams per day

2000-01 220

2005-06 241

2008-09 250*

*estimated, Source: Department of Animal Husbandry and dairying

SWOT Analysis of the Industry

Strength Weakness

Largest milk producer in the world

A huge base of around 11 million

farmers

Traditional emphasis on consumption

Poor feeding practices

Poor access to institutional credit

Lack of cold storage facilities

Opportunity Threat

Elastic demand; economic growth will

spur demand

Increasing preference for branded dairy

products

Growing focus on health and nutrients

in urban market

Nearly 80 per cent of the Indian dairy

industry is unorganized

Removal of import duty has led to

the threat of dumping

PORTER COMPETITIVE ANALYSIS

Threat of competition is high as there are no entry barriers and consequently

there are many brands and local players making up the competitive rivalry

Threat of substitutes is low as milk is an essential item for beverages like tea,

coffee etc. Also traditional consumption habits make milk a favourite with

most households in India

Bargaining power of suppliers is low because suppliers mainly comprise rural

households and small co-operatives

Bargaining power of consumers is high because of competition in the

organized sector and large unorganized market in rural areas.

MAIN PLAYERS

Milk products - Amul, Mother Dairy, Britannia, Vijaya, Verka and Vadilal

Cheese products- Amul, Britannia, Dabur (Le Bon) are the leading players.

Other prominent players include Verka, Nandini, Vijaya and Vadilal

Dairy Whiteners - Nestle, Amul, Britannia, Dynamix Diary, Sterling Agro,

Haryana Milk Foods, Mohan Food, Modern Dairy, Mother Dairy

CRITICAL ISSUES:-

Key success factors Business concerns Demand drivers

Liquid milk Sourcing

Distribution

Financial distress of

co-operatives

Packaging in smaller

units

Packaged milk Technology Small market size Convenience

Health concerns

Milk products Branding

Refrigeration

Inadequate

infrastructure

Increase in per capita

income

Infant mil Education

Marketing

Poor penetration Changing food habits

REGULATORY CHANGES

Dairy sector was de-licensed in 1991

No industrial license is required fro dairy industry.

Foreign equity participation permitted to the extent of 51 per cent in dairy processing

sector

Excise duty on dairy machinery has been fully waived off.

KEY LEGISLATIONS:-

Milk and Milk Products Order 1992: With following controls

– Collection areas/milk sheds specified

– Processing capacity fixed

Revised MMPO in 2002: Controls stand withdrawn

The production, distribution and supply of milk products are controlled by the Milk

and Milk Products Order, 1992. The order sets sanitary requirements for dairies,

machinery, and premises, and includes quality control, certification, packing, marking

and labeling standards for milk and milk products.

The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of

Production, Supply and Distribution) Act, 1992 and Rules 1993

COMPANY PROFILE OF AMUL

AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit

"Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning

"priceless", are found in several Indian languages. Amul products have been in use in

millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee,

Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream,

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

(Turnover: Rs. 52.55 billion in 2007-08). Today Amul is a symbol of many things. Of

high-quality products sold at reasonable prices.

50 years after it was first launched, Amul'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. All because a thumb-sized girl climbed on to the hoardings and put a

magical spell on the masse

AMUL stands for,

A = Anand

M = Milk

U = Union

L = Limited

Amul (Anand milk union ltd.) is abased on four hands, which are coordinated with

each other. The actual meaning of this symbol is co-ordination of four hands of

different people by whom this union is at the top position in Asia.

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

existed.

Second hand is of processors, who process the row material (milk)into finished

goods.

Third hand is of marketer, without whom the product would have

not reached the customers

Fourth hand is of customers, without whom the products would have not

carried on.

BASIC INFORMATION

Company Name:

Amul India (Gujarat Co-operative Milk Marketing

Federation Ltd.)

Business Type: Manufacturer

Product/Services:

Infant Milk Food,Skimmed Milk Powder,Butter,Cheese

(Cheddar,Mozzarella,Emmental,Gouda),Cheese

spreads,Ghee,Condensed Milk,Chocolates,malted milk

food,Breadspreads,fresh milk,UHT milk,Ice-cream.

Address: Amul Dairy Road

Number of Employees: 501 - 1000 People

URL: http://www.Amul.com

OWNERSHIP & CAPITAL

Year Established: 1973

Representative/Business

Owner: B M Vyas

Trade & Market

Main Markets:

North America

South America

Western Europe

Eastern Europe

Eastern Asia

Southeast Asia

Mid East

Africa

Oceania

Total Annual Sales

Volume: Above US$100 Million

Factory Information

No. of R&D Staff: Above 100 People

BRIEF HISTORY OF AMUL

AMUL (Anand Milk Union Limited), formed in 1946, is a dairy cooperative

movement in India. It is a brand name managed by an apex cooperative organization,

Gujarat Co-operative Milk Marketing Federation Lt. (GCMMF), which today is

jointly owned by some 2.6 million milk producers in Gujarat, India.

AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative

organization's success in the long term. It is one of the best examples of co-operative

achievement in the developing world.

"Anyone who has seen ... the dairy cooperatives in the state of Gujarat, especially the

highly successful one known as AMUL, will naturally wonder what combination of

influences and incentives is needed to multiply such a model a thousand times over in

developing regions everywhere. ‖

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

an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million

producer members with milk collection average of 10.16 million litres per day.

Besides India, Amul has entered overseas markets 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.

Dr Verghese Kurien, former chairman of the GCMMF, is recognized as the man

behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the

Banaskantha Union, was elected chairman of GCMMF.

AMUL : THE ORIGIN

The mighty Ganges at its origin is but a tiny stream in the Gangotri ranges ofthe

Himalayas. Similar is the story of Amul which inspired Operation Flood and heralded

the 'White Revolution' in India. It began with two village cooperatives and 250 liters

of milk per day, nothing but a trickle compared to the flood it has become today.

Today Amul collects processes and distributes over a million liters of milk and milk

products per day, during the peak, on behalf of more than a thousand village

cooperatives owned by half a million farmer members.

THE START OF REVOLUTION

The revolution started as awareness among the farmers that grew and matured into a

protest movement and the determination to liberate them. Over four decades ago, the

life of a farmer in Kaira District was very much like that of his counterpart anywhere

else in India. His income was derived almost entirely from seasonal crops. The

income from milch buffaloes was undependable. The marketing and distribution

system for the milk was controlled by private traders and middlemen. As milk is

perishable, farmers were compelled to sell it for whatever they were offered. Often,

they had to sell cream and ghee at throwaway prices. In this situation, the one who

gained was the private trader. Gradually, the realization dawned on the farmers that

the exploitation by the trader could be checked only if marketed their milk

themselves. In order to do that they needed to form some sort of an organization. This

realization is what led to the establishment of the Kaira District Cooperative Milk

Producers' Union Limited (popularly known as Amul) which was formally registered

on December 14, 1946.

The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in June 1948.

An assured market proved a great incentive to the milk producers of the district. By

the end of 1948, more than 400 farmers joined in more village societies, and the

quantity of milk handled by one Union increased from 250 to 5,000 liters a day.

AMUL‟S SECRET OF SUCCESS:

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

prices for producers' milk besides acting as a channel to market the production

enhancement package. What's more, it does not disturb the agro system of the

farmers. It also enables the consumer an access to high quality milk and milk

products. Contrary to the traditional system, when the profit of the business was

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

for their socio-economic upliftment and common good. Looking back on the path

traversed by Amul, the following features make it a pattern and model for emulation

elsewhere. Amul has been able to:

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

economic systems

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.

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

and harness its fruit for betterment

Produce an appropriate blend of the policy makers farmers board of

management and the professionals: each group appreciating its roles and

limitations

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

andThe 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. The village society also facilitates the

implementation of various production enhancement and member education

programs undertaken by the Union. The staff of the village societies has been

trained to undertake the veterinary first-aid and the artificial insemination

activities on their own.

THE WINNING EDGE

Three aspects of India‘s modern dairy sector are particularly note worthy.

VAST MARKET-

In Indian context there is vast market available. It‘s focus is the increasingly

affluent middle class, numbering more then 300 million which is confined to

well-defined urban pockets & is easily accessible. Milk occupies pride of

place as the most coveted food in the Indian diet, after wheat & rice. Milk-

based sweets are a culinary delight in all homes through out the year

CO-OPERATIVE SYSTEM –

The milk production is pre-dominantly rooted in the co-operative system. Its

focus is on the small rural farmers having one or two cows/buffaloes yielding

3-5 liters of milk per animal. This system is the basis of Operation Flood, the

world’s largest dairy movement program.

PROFITABLE MARKETING –

The preferred dairy animal is the buffalo. Some 65 % of the world buffalo

milk is produced in India. Value for its high fat content is 7% w.r.t. 3.5% that

of cow. It is also high in calcium, phosphorous, lactose & proteins. Thus

Buffaloes milk is the delight of the milk processing for its more profitable

handling.

Amul was formed on Dec. 14, 1946 by an apex co-operative organization, Gujarat

Co-operative Milk Organization ( GCMMF ). Amul based in Anand, Gujarat has been a

sterling example of a co-operative organization‘s success in the long run. It was suggested

by quality control experts. Amul has spurred the Operation Flood of India, which has

made India the largest producer of milk & milk products in the world.

Dr. Verghese Kurien former chairman of the GCMMF is recognized as the man

behind the success of AMUL. On 10 August 2006 Parth Bhatol was elected

chairman of GCMMF.

Amul is an embodiment of faith in the ability of our farmers to break the shackles of

poverty & to create a socio-economic revolution in rural India. Through the ‗Anand Pattern‘,

our farmers demonstrated to the world, the key to successful ‗Management Of Development‘.

Anand Pattern is an innovative three tier structure combines the hard working farmers with

professional management & modern technology.

Slowly & gradually Amul has also expanded its distribution network across the

country. Currently, there are 3,500 distributors for value added milk products & 1800

distributors for fresh milk to ensure that Amul products are available to all segments of

consumers in India through more then 20 lakhs outlets. GCMMF has expanded its network to

more then 4,000 parlors across various towns & cities of the India.

MISSION

After achieving the new milestone of Rs.6,700 crores, now Amul has set new mission.

Federation chairman Parthi Bhatol has mentioned about ―Mission 2020‖. It envisages that

the dairy co-operative of Gujarat will have a total turnover of Rs.27000 crores by the year

2020. They also plan to double the processing capacity of dairy plant to 20.7 million kg.per

day.

Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview

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

products marketing organization. It is a state level apex body of milk cooperatives in

Gujarat which aims to provide remunerative returns to the farmers and also serve the

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

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

assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of

GCMMF.

Member‟s 13 district cooperative milk producers' Union

No. of Producer Members: 2.9 million

No. of Village Societies: 15,322

Total Milk handling capacity: 13.07 million litres per day

Milk collection (Total - 2009-10): 3.32 billion litres

Milk collection (Daily Average 2009-10): 9.10 million litres

Milk Drying Capacity: 647 Mts. per day

Cattlefeed manufacturing Capacity: 3740 Mts. per day

Sales figure of AMUL

Rs (million) US $ (in million)

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

2009-10

67113

74800

1504

1700

INTRODUCTION

a) Aim & Establishment of the company:

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 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, Â 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 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.

MISSION STATEMENT ― W e a t GCMMF (Gujarat Co-operative milk Marketing Federation)

endeavor to satisfy the taste and nutritional requirements of the customers

of the world, through excellence in marketing by our committed team. Through co-

operative networking, we are committed to offering quality products that provide best

value for money.‖

PRODUCT LIFE CYCLE STAGES

A product passes through distinct stages during its life in market, each posing

different challenges, opportunities and problems .Profits rise and fall at different

stages of the product life cycle. There are four different stages of product life cycle,

namely

1. INTRODUCTION STAGE

2. GROWTH STAGE

3. MATURITY STAGE

4. DECLINE STAGE

Different products of AMUL are in different stages in the product life cycle.

Products like milk, butter, chocolate and cheese are in the maturity stage, while

ice-creams , chocolates and shrikhand are still in the growth stage. On the other

hand, products like milk powders, infant food, frozen food items and mix are in

introduction stage.

The company adopts aggressive selling techniques for those products which

are in the introductory stage, while very less promotional programmes are carried

out for those products which are in the growth or maturity stage.

PRODUCT RANGE

A vast varieties of products are offered by AMUL which are as follows:

BREADSPREADS

Amul Butter

Amul Lite Low Fat Breadspread

Amul Cooking Butter

CHEESE RANGE

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozarella) Cheese

Amul Shredded Pizza Cheese

Amul Emmental Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese) Frozen and Tinned

Utterly Delicious Pizza

MITHAEE RANGE (ETHNIC SWEETS)

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

Amul Amrakhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix

MILK RANGE

Amul Taaza 3% fat Milk

Amul Gold 4.5% fat Milk

Amul Slim-n-Trim 0% fat milk

Amul Chocolate Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

Amul Taaza Double Toned Milk

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 3% fat

Amul Smart Double Toned Milk 1.5% fat

CURD PRODUCTS

Amul Masti Dahi (fresh curd)

Amul Butter Milk

Amul Lassi

AMUL ICECREAMS

Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti

Frutti)

Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar

Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi)

Utsav Range (Anjir, Roasted Almond)

Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate)

Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry,

Black Currant)

Sundae Range (Mango, Black Currant, Chocolate, Strawberry)

Millennium Icecream (Cheese with Almonds, Dates with Honey)

Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi,

Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)

Cool Candies (Orange, Mango)

Cassatta Tricone Cones (Butterscotch, Chocolate)

Megabite Almond Cone Frostik - 3 layer chocolate Bar

Fundoo Range - exclusively for kids

SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple)

CHOCOLATE & CONFECTIONERY

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Amul Eclairs

BROWN BEVERAGE

Nutramul Malted Milk Food

MILK DRINK

Amul Shakti Flavoured Milk

SWOT ANALYSIS

STRENGTH:

1. Corporate Image.

2. Diversified product line.

3. Dedicated work force.

4. Totally integrated operation.

5. Good for sightedness and long term vision.

6. Low capital cost

7. Brand Power.

8. High quality product.

9. Customer as well as customer support.

WEAKNESS:

1.Supply is not regular.

2. Distribution of Amul pouch milk is not proper in some of areas

3. Co-ordination of company or retailer is not proper.

4.―Weak management support and less effective customer care‖ said

some retailers.

OPPORTUNITIES:

1. With the liberalization new avenues of exploiting open market

economy are being open up.

2. Being the oldest co-operative society use their brand name as already

being leader in dairy products, the other competitors are very far behind

AMUL.

3. New product from Amul i.e. Amul preferred outlet(APO) can be

very successul in the market as we receive better response from Distributors

as well retailers and consumers.

4. Must take the advantage of priority given to the Dairy industries by

the Govt. in terms of loan.

THREATS:

1. With the globalization and liberalization various global brands are

started to peak in.

2. Competition from other Co-operative and local industries are present in

the market.

3. The milk curdling problem allows the competitors to penetrate the

market which is previously covered by the Amul. The milk from Softe plant

is responsible for that as a retailer can not bear huge loss.

Some serious problem found is of the late delivery of milk in area like R.K.Puram.

Sometime distributor‘s attitude and rude behavior is responsible for decrease in sales.

FINDINGS & INTERPRETATION

Q.1. Do you sell Amul Products?

(A) Yes- 135

(B) No- 16

Interpretation:- In 151 retailers, it includes DMS, Mother dairy and retailers out

of which 135 sells AMUL milk and 16 do not sell Amul milk.

Q.2. Which products:-

A) Milk -100 %

B) Curd - 66 %

C) Buttermilk – 53%

Yes

No

INTERPRETATION:- Out of 151 retailers 151 sells milk, 100 retailers sells curd

and only 80 retailers i.e. only 53 % sells buttermilk. Generally there are

irregularities in the supply of curd.

Q. 3. Which other brand of milk products do you sell?

A) Amul 131

B) Mother Dairy 87

C) Param 0

D) DMS 5

E) Nestle 40

F) Britannia 25

IN %

0

50

100

AMUL

CURD

BUTTERMILK

IN %

INTERPRETATION:- As we can say on the basis of the graph Amul is a leader but

other competitor mother dairy is also gaining the market .Later two competitor shows

their penetration in curd market .

Q.4 Which variance of milk do you sell?

A) Full Cream - 147 retailers

B) Toned - 128 Retailers

C) Double toned- 107 retailers

0

20

40

60

80

100

120

140

No. of Respondents

No. of Respondents

INTERPRETATION:- As most of retailers sell the full cream milk, it means

people prefer full cream in comparison with Toned and double toned.

Q.5 At which time do you receive the supply of milk?

A) 6:00-7:00 a.m. - 69

B) 7:00-8:00 a.m.- 53

C) 8:00-9:00 a.m.- 10

D) 9:00-10:00 a.m.- 2

E) Above 10:00 a.m -0

No. of retailers

FCM

TM

DTM

INTERPRETATION:- Total of 135 Amul retailers only 69 retailers gets milk

before 7:00 a.m. 53 retailers i.e. 40 % retailers gets milk between 7:00 a.m.- 8:00 a.m.

This is not the suitable time as the milk should be deliver within 7:00a.m.

Q.7. How do you think the sale of Amul pouched milk can be increased?

A) Advertisement- 47

B) Promotional schemes - 75

C) Early Delivery - 17

D) Proper mgmt. support - 67

No.of respondents

6:00-7:00

7:00-8:00

8:00-9:00

9:00-10:00

Above 10:00

INTERPRETATION:- AMUL can increase their sale graph by proper mgmt.

support as it is very necessary to make better customer relationship management.

Promotional scheme is also a very good option to increase the sale of milk products.

As we don‘t found the ads in this area and research says 30 % people think promotion

can increase the sale.

Q.9. What kind of problem (complain do you have from the distribution

channels)?

A) Late Delivery. -17

B) Behavior. -16

C) Irregular supply.-18 (especially in curd)

D) No mgmt. support- 47

E) Leaked packets. - 62

F) Demand not met -10

G) No complain -26

No.of respondents

Advertisment

Promotional schemes

Early Delivery

Proper mgmt. support

INTERPRETATION:- As there is more complain about leaked packet and no

replacement of that leaked packets is a major problem and the retailers found less

support from management. Behavior of distributors in area of Bharthal and uttam

nagar is also a matter of consideration. Where there is also a problem of late delivery.

Q.10 Does the distributor take necessary action regarding your problem?

A) Yes - 25

B) No -34

C) Sometimes -39

D) Can‘t say - 37

LateDelivery

Behavior. Irregularsupply

Nomgmt.

support

Leakedpackets

Demandnot met

Nocomplain

17 16 18

47 62

10 26

No. of respondents

No. of respondents

19%

25%

29%

27%

No. of respondents

Yes No Sometimes Can't say

INTERPRETATION:- 29 % retailers said the distributor take action sometimes,

27% said they don‘t know whether distributor take any action. 25% said distributors

didn‘t take any action.

Q.11. Does Amul as an organization taking enough steps to market its milk

products (milk, curd, buttermilk)?

A) Yes - 28

B) No - 48

C) Sometimes -44

D) Can‘t say -22

INTERPRETATION:- 48 retailers said that Amul as an organization don‘t handle

our query. 44 retailers think that sometimes their problem solved. Only 20 %

retailers think that their problems are solved by the Amul.

No. of respondents

Yes

No

Sometimes

Can't say

12. Which factor in milk the customer has major concerns:-

A) Price - 33

B) Quality -81

C) Early delivery -22

D) Brand name -55

E) Easy availability - 39

INTERPRETTION:- Highest area covered by quality factor means quality is

important for customers followed by brand name, availability, Price of the milk and

early delivery. As delivery is timely in the major area visited by me does not a major

issue.

13. Which factor do you consider that affect the sale (retailer point of view)?

A) Price -34

B) Quality - 59

C) Commission on sale -47

0

10

20

30

40

50

60

70

80

90

Price Quality Earlydelivery

Brandname

EasyAvailibility

No. of Respondents

D) Brand - 40

E) Timely Delivery -16

INTERPRETATION:- As result said quality is on the top as major concerns by the

retailers due to the fact that many retailers face milk curdling problem in Amul milk

trying to sell the milk of other brand to retain their own customer and be safe from the

loss due to milk curdling. After the quality commission on sale is important factor

followed by brand name, price and timely delivery. Price is major concerns in the area

where low income group people live.

15. What can be various marketing schemes to promote the sales & encourage

more retailers to sell Amul milk products.

A) Schemes -64

B) Advertisement - 51

C) Credit facility - 3

D) Refrigeration facility - 10

E) Evening supply of milk - 26

F) Proper mgmt. support -50

0

10

20

30

40

50

60

70

No. of respomdents

No. of respomdents

INTERPRETATION:- Most of the retailers want promotional schemes

to increase the sell followed by advertisement, proper mgmt support, evening

supply of milk, refrigeration facility, credit facility.

Q.8 Rate the distributors and his services (out of 10).

From research I found the following overall rating of Amul and their competitors

as per the distributors about their distribution system, distribution channels & product

related services.

A) Amul -------------------------- 7

B) Mother Dairy --------------------------- 8

C) DMS ------------------------- 5

D) Nestle (curd only) ---------------------- 8

E) Paras ----------------------- 5

F) Britannia(curd only) ------------------------ 9

Reasons for Low rating of Amul:-

1. May be due to milk bursting problem in most of area.

2. Somewhere late delivery and irregular supply of curd (cup).

3. Low management support.

4. As the better distribution is the core strength of Mother

0

10

20

30

40

50

60

70

No. of respondents

No. of respondents

dairy and Britannia. Hence they are emerging as tough competitor.

Q. 14 Is about checking the level of satisfaction of customer of Amul on the

semantic differential scale.

Is your customer of milk products is satisfied?

YES ----- *** *** ----- ----- NO

Research said that customer is satisfied at +4-+3 level, which can be considered

as good but retailers satisfaction is very necessary as being a main connecting link

between the customer and organization.

If there is proper distribution channel with some good management support surely

Amul will remain on the top in each area of dairy product.

COMPETITOR ANALYSIS

Amul has many competitors in the market of Delhi. The major competitors are-

Mother dairy, Paras, DMS, Param, Gopaljee, Reliance, Britannia, Nestle, Dairy

India etc.

But the Mother dairy is giving tough competition to Amul in all the range of milk

products.

Strength of AMUL= Quality products, Brand name, Corporate

image, Good work Force.

Strength of Mother Dairy = Very good distribution channel( through

MD booth, Distributors and retailers.

Mother dairy providing extra facilities like refrigeration facility on behalf of small

amount of security to retailers whereas AMUL provide this facility on permanent

basis by taking complete charge of fridge. Some promotional schemes are also

being given by the Mother dairy.

In the term of product quality Amul is far better than Mother dairy and customer‘s

first preference is AMUL.

Market analysis says Amul is No. 1 in the milk market of Delhi.

PRODUCT LINE

AMUL has basically 4 product lines which are milk and milk products, ice-cream,

chocolate, wet product line and dry product line. The company is increasing the

length of its product line by filling its line i.e. by adding more products within the

existing lines.

MILK ICE CREAM &

CHOCOLATE

WET PRODUCTS DRY PRODUCTS

AMUL TAAZA AMUL MILK

CHOCOLATE

AMUL BUTTER AMUL FULL CREAM

MILK POWDER

AMUL GOLD

AMUL FRUIT AND

NUT CHOCOLATE

AMUL LITE LOW

FAT BREAD SPREAD

AMULYA DAIRY

WHITENER

AMUL SLIM AND

TRIM MILK

AMUL ECLAIRS AMUL COOKING

BUTTER

SAGAR SKIMMED

MILK POWDER

AMUL CHOCOLATE

MILK

AMUL FUNDOO

CHOCOLATE

AMUL PROCESSED

CHEESE SPREAD

SAGAR TEA &

COFFEE WHITENER

AMUL FRESH

CREAM

AMUL BINDAS

CHOCOLATE

AMUL PIZZA

CHEESE

AMUL MITHAEE

GULABJAMUN MIX

AMUL SNOWCAP

SOFTY MIX

ALMOND BAR AMUL SHREDED

PIZZA CHEESE

AMUL MITHAEE

KULFI MIX

AMUL TAAZA

DOUBLE TONED

MILK

AMUL COOKING

CHOCOLATE

AMUL EMMENTAL

CHEESE

AMUL INFANT MILK

FORMULA-I

AMUL MITHAIMATE

SWEETENED

CONDENSED MILK

ROYAL TREAT

RANGE

AMUL GAUDA

CHEESE

AMUL INFANT MILK

FORMULA-II

AMUL TAAZA

TONED MILK

NUT-O-MANIA

RANGE

AMUL MALAI

PANEER

AMULSPRAY INFANT

MILK FOOD

AMUL GOLD FULL

CREAM MILK

UTSAV RANGE UTTERLY

DELICIOUS PIZZA

NUTRAMUL-MALTED

MILK FOOD

AMUL SHAKTI

STANDARDISED

MILK

SIMPLY DELICIOUS

RANGE

AMUL SHRIKHAND

AMUL SMART

DOUBLE TONED

MILK

NATURE‘S TREAT AMUL MITHAEE

GULABJAMUNS

AMUL COOL MILK SUNDAE RANGE AMUL PURE GHEE

AMUL SHAKTI

FLAVOURED MILK

MILLENIUM

ICECREAM

SAGAR PURE GHEE

MILKBARS AMUL COW GHEE

COOL CANDIES AMUL MASTI DAHI

TRICONE CONES AMUL BUTTERMILK

FUNDOO RANGE AMUL LASSEE

SLIMSCOOP FAT

FREE FROZEN

DESERT

MASTI TOMATO

SOUP

b) Departments of the Company:

1.Organizational chart showing the different departments:

The following is internal organisation chart of Amul:

I.PRODUCTION DEPARTMENT:-

In this department all the things are been made means here company is producing

product. So it is called as a production department. It is the concern with the creation

of a product. It is a line function, because it contributes directly to the

accomplishment of the objectives of a business. This department involves very huge

variety of ranging, activities from the location of a mfg. Plant to the final preparation

of products to be distributed by the marketing department. Now a days in our India is

developing. There is given much important to the successful company. Successful

company means does not in the Large Scale or in high capital investment but the

industry which is running successfully with the help of the staff.

IMPORTANCE :

In each and every business field production department is very much important,

without production department Company cannot produce anything. The production

management involves aspects like product planning the product line, the co-ordination

and controlling production process etc.

II.PERSONNEL DEPARTMENT:-

In each and every company there are many important and necessary departments.

Each and every successful company or the failure company or the failure company

does not depends on any materials and machines but they are depends on the skill of

the personnel employed in organization. Management of the people is the one of the

main function of the personnel department. There are also the main functions except

the management. Personnel management is people‘s management at work. Thus

management of people is a very important and challenging job for organization. The

functions which are described as above are usually performed by the personnel

manager.

IMPORTANCE Size of the product, purpose, location or importance is the common element for all the

business. These all element are made by the human. AMUL INDUSTRIES PVT.

LTD. Give important to the personnel department. They give more and more

important to the human resource. Because human means employees are the mains part

of successful company.

III.MARKETING DEPARTMENT:-

In each and every business there is one of the main department is Marketing

Department. It is important for each and every successful or unsuccessful business.

Because without Marketing Department any business cannot run properly, and cannot

achieve their desire goal and objective. If we want to achieve the objective therefore

we have to keep the good Marketing Department. If marketing department is good

then our company‘s product will be go ahead and if our marketing department is bad

then our product not go ahead, and there may be possibility that we under go to the

loss.

IMPORTANCE If the company wants to make successful company then company has to give more

and more importance to the Marketing Department. AMUL INDUSTRIES PVT.

LTD. Is always being kept watching in it. They are always giving more and core

importance to the Marketing Department. So that they can achieves their desired goals

or objectives in proper way.

IV. FINANCE DEPARTMENT:-

Finance is rooting of all Industrial a Trading activity. Finance is needed when the

business is started. It is required to keep the business going, and it is needed when the

business expands. According to Henry Fayol, ―Finance is like an arm &leg either.

You use it or loss it.‖ Thus we can say that the Finance is considered as base for every

business & business without finance is shown as dead body.

V. SALES AND PURCHSE DEPARTMENT:-As their names suggests,

both are used for sale or purchase of goods. Sales department is a department made

within the organization which is concerned with sales of products. Selling is

necessary, as it is directly related with profit.

Similarly, the company has a purchases department too, which takes care of purchases

of raw materials from outside. Raw material is required to make finished products by

use of some processes.

OBJECTIVES OF THE STUDY

Following are the major objectives : -

1. To study the milk, curd, and buttermilk market scenario in various area

Sagarpur , Janak puri,Vikas puri, Palam, Najafgarh, Mahavir enclave,

bharthal. The first and foremost objective of the project was perfect. Under

this, the consumption pattern, market share of various brands and the

factors influencing the buying decisions of the shopkeepers were studied.

2. To study the position of amul milk, butter and buttermilk in established

market. The nearest competitor and the various possibilities has been

explored to minimize their threats.

3. To estimate the market potential for amul milk, butter and buttermilk in

unexplored market was one of the major objectives. Here the conditions

were also studied under which the consumer as well as the retailer would

be willing to buy amul milk.

4. To identify the problem areas for all the places separately. Here the

shortcomings of amul were studied which could be removed after careful

understanding & detailed analysis

5. To develop strategies and come out with suggestions for increasing the

sales.

LITERATURE REVIEW

A m u l i s o n e o f t h e m o s t s u c c e s s f u l I n d i a n b u s i n e s s f i r m . I t

p r o v i d e s v a r i o u s m i l k p r o d u c t s i n w h i c h i t s m a i n b r a n d

p r o d u c t A m u l B u t t e r i s a l so p r es en t . Am ul b egi ns w i t h j u s t

l i t t l e g r o u p o f m i l k p r o d u c i n g v i l l a g e r s a n d n o w

b e c o m e l a r g e s t m i l k p r od u c in g co o pe r a t iv e so c i e t y i n In d i a .

I t h ad s t a r t ed wi th t wo v i l l age co op e r a t iv es w i t h 2 5 0 l i t e r s

m i l k p r o d u c i n g c a p a c i t y a n d n o w i t c o l l e c t s d a i l y a 6 . 5

m i l l i o n ( a v e r a g e ) o f m i l k f r o m a v e r y l a r g e n o o f I n d i a n

v i l l a g e s . I t h a s b e c o m e a h o p e f o r poor villagers who were

exploiting by middlemen before the origin of Amul or Gujarat m i l k

m ark e t in g f ed er a t io n o r K a i r a u n io n . B y o r i g i n a t ed Amu l go t i t s

f i r s t cha i rm an Shri Tribhuvandas Patel who through his integrity

had favor of villagers and u n d e r s t and s th e n eeds o f coo p e r a t i ve

s o c i e t y. T h r ou gh th e i r i n t e r pe r so n a l f a i t h an d cooperation Amul got

this success history besides facing various diff iculties.

G u ja r a t Mi l k M ark e t in g Fed e r a t i on i s a co op e r a t iv e so c i e t y. I t

d o ne a v e r y go o d j ob in m i lk m ar k e t in g , m ak i n g w ay f o r po or

v i l l age r s e a rn in gs . I t n o t on l y p r o v id e s e f fec t iv e r e tu rn s t o t h e

f a r m er s bu t a l so t ak e ca r e s o f cus tom ers i n t e re s t s . I t s e r v es f o r

cu s t om er o n t h e b a s i s o f I n d i a n e t h i c s . T h e y p r o v i d e m i l k

o f b e t t e r n u t r i e n t s , b e t t e r q u a l i t y p r od u c t s r egu l a r l y an d h e lp

i n mee t in g th e co un t r y‘ s n eed o f d a i ly m i lk r eq u i r em en t s . Some of

the articles on Amul are as follows: -

“India report part 5: AMUL, India‟s number-one dairy brand”

Published: April 11, 2006 reference www.milk production.com

•On 14 December 1946 the predecessor of the Gujarat Milk Marketing

Federation, better known as the AMUL dairy cooperative, was founded in Kaira

(Gujarat state).

•The daily milk collection was 247 litres.

•Anno 2005 the 2.4 million members/ dairy farmers supplied AMUL daily

with 5.9 million litres of milk.

According to Mr Khanna, an AMUL director ‗with special assignments‘ – as his

business card says– the milk supply to his co-operative is increasing all the

time. In the 2003/04 financial year, the m i lk co l l e c t i on w as u p t o 5 .1

m i l l i on l i t r e s p e r da y, a r i s e o f s om e 1 5 .2 %. B y co n t r as t , t h e co -

operative‘s turnover rose by just 1.4% in the financial year 2004/05, bringing it to

INR 29.22 billion or EUR 584 million. This growth is lower than expected

and due, believes Khanna, to the reduced milk supply in the latter months

of 2004 and the poor increase in the price of basic products in the early

months of 2005.

From what Khanna is saying, it is evident that AMUL is a co-operative operation

without equal. The2 . 4 m i l l i on m em b ers / d a i r y f a r m er s i n t he s t a t e o f

G u ja r a t a r e g r o up ed in to 11 ,6 15 v i l l age co - operatives equipped with

both testing equipment and a milk cooling tank. Some of the unpasteurized milk is

sold to the villagers. The rest is transported by milk tankers twice a day to

the 12 district Milk Unions in the state. These Milk Unions process the milk by

using the services of 24 processing companies. The output of dairy products reflects

the order submitted by the state‘s marketing body, the Gujarat Co-operative Milk

Marketing Federation. These products are then sold throughout India under the

AMUL and Sagar brand names.

Indian consumers are increasingly showing a preference for packaged

dairy products, due to food safety concerns. This explains in part why the

revenues of AMUL‘s consumer range of packaged dairy products grew by

11.8% in the last financial year. The sales revenue of pasteurised drinking

milk in plastic pouches under the AMUL brand rose in 2004/05 by no less than 36%.

This rise was attributable chiefly to the successful introduction of AMUL milk more

than a year ago in the Indian c i t y o f K o lk a t a ( f o rm er l y C a l cu t t a ) , ho me

t o m i l l i on s o f p e op l e . T hank s t o t h i s s u cces s , t h e pasteurised milk

pouches are the biggest contributor to AMUL‘s total turnover. In the

2004/05financial year, this range brought in a turnover of INR 6.26 billion or EUR

125 million.

The turnover of UHT milk grew 23% in the last financial year compared to

preceding year. The turnover of ice cream rose by 10%, consolidating

AMUL‘s position as market leader. And despite cu t - t h ro a t com p et i t i o n ,

t h e s a l e s o f AM U L b r and bu t t e r ros e by 4 . 5 % . T h e s a l e s o f ch ee se

an d cheese spreads rose by 21%. Cheese includes cheese for pizzas.

And, says Kurien, other packaged products such as flavoured milk, fresh

cream, paneer or cottage cheese also have the potential to become major

products bearing the AMUL brand within a couple of years.

As the country‘s largest co-operative dairy, AMUL has developed a two-pronged

strategy to address his issue and develop national presence. Firstly, last year AMUL

expanded its distribution network to include some of India‘s smaller cities. In

so doing, the co-operative has responded quickly to rapidly changing market

conditions.

Situated all over India, these smaller cities are now promising markets with great

purchasing power a s t he i n com es o f In d i a ‘ s m id d l e c l as s a re r ap i d l y

r i s in g an d th e b e t t e r -o f f ru r a l f ami l i e s a r e mi g r a t i n g t o t h e s e

d ev e l op i n g c i t i e s . In t h e l a s t f i n an c i a l yea r A M U L h as in t r od uced

s om e 9 00 f oo d who l es a l e r s i n t h es e s m al l e r c i t i e s t o i t s p r od u c t

r an ge . ‗T h i s i n i t i a t i v e h as a l r e ad y s t a r t ed y i e l d in g r e su l t s .

A M U L p r o du c t s a r e i nc r eas in g l y av a i l ab l e i n sm al l e r c i t i e s

t h ro u gho u t In d i a . T h i s i n i t i a t i v e , w h i ch w e ‘ l l b e con t in u i n g fo r

t h e t im e b e i n g , i s gen e r a t i n g ad d i t i o n a l t u r no ve r , ‘ s ays

K u r i en . Di r ec t o r Kh ann a d e s c r ib es t he s eco nd p r on g o f A MU L‘ s

ex p an s i on p l an . ‗W e ex p ec t t h a t t h e m i lk p r od u c t i on i n ou r

p r o cu r em en t a r ea , t h e s t a t e o f G u j a ra t , w i l l i n c r eas e by 5 % o r

m o re p er yea r i n t h e comi n g p e r i od . T h a t ‘ s t he f i r s t so u r ce o f

gr o w th . A s n o t o n ly t h e d a i r y m ar k e t b u t a l so t h e m ar k e t f o r f a rm

m i lk h as been l i b e ra l i s ed , w e a r e n ow co l l e c t i n g mi l k in s ix o th e r

p l ace s i n In d i a m i lk .

What is new that we would like to talk to other co-operative dairy companies. Most of

them are also organised by state following the Anand model. Our standpoint is clear.

They know about milk processing and we know about marketing. They can continue

to produce dairy products that we will sell under our strong AMUL and SAGAR

brands. In this way, our partners will be able to piggy-back on the success of AMUL‘s

ever expanding distribution network.‘ He foresees a future in which the players in

India‘s co-operative dairy world increasingly cooperate to offer the Indian consumer a

wide range of dairy products. It is completely obvious to him that AMUL will be a

driving force in shaping this new future. ‗AMUL is India‘s oldest dairy brand.

But it is more than a brand. It is also a question of belief. Belief in the co-operative, in

a dairy world owned by the dairy farmers. That is important because they and the rest

of the population in thevillages must be pulled up to a higher standard of living,‘ says

AMUL director Khanna, speaking straight from the heart.

Mithaee is an example of Indian sweets made with sweetened condensed milk. As

AMUL delivers this product in cans, it has a shelf life of nine months and can be

stored outside the cooling chain.

Article from India Dossier, ZuivelZicht - 14 december 2005

“INDIA‟S TOP BRANDS”“AMUL‟S ADVERTISING AND MARKETING

SPEND HAS NEVER EXCEEDED 1% OFITS REVENUES”

By

Rajeshwari Sharma

Sat, Aug 25 2007. 3:30 AM IST

SUMMARY: ‗

Media‘, brand consultancy Asian Integrated Media Ltd and market research company

Synovate done this survey on the top brand in Asia, among this Amul comes one of

the most successful Indian business firm. It is because Amul‘s strategy of

using―umbrella branding‖ has paid off.

According to R.S. Sodhi, chief general manager, GCMMF. ―Our strength comes

from consistency, trust and relevance of our products.‖ Sodhi claimed that

Amul‘s advertising and marketing spend has never exceeded 1% of its revenues. Most

other food companies spend 6-7% of revenues on advertising and marketing,he added.

―They (GCMMF) are not big spenders compared to Britannia or Nestle. Despite a

limited budget, Amul‘s creatives in the form of billboards or the Taste of India

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

and spirit of Indian culture in a contemporary way,‖ said Shashi Sinha,executive

director, FCB Ulka, GCMMF‘s advertising agency.

„We may end up touching a turnover of Rs20,000 cr by 2015‟

Wed, Oct 3 2007. 12:21 AM IST by

Sunil Raghu

Bharat M.Vyas has been the managing director of Gujarat Cooperative Milk

Marketing Federation Ltd (GCMMF), the owner of brand Amul, for more than 12

years. In an interview with Mint, BM, as Vyas is referred to by many, discusses the

business strategy of India‘s biggest cooperative firm, which finds itself under

increasing pressure from nimbler private sector rivals.

RESEARCH METHODOLOGY

The research methodology adopted is of descriptive type. The major purpose of this

research was the description of the state of affairs as it exists at present. Even though

there was no control over the variables. The cause were tried to be discovered. The

method of research utilized here was survey method. The facts or information

gathered were analyzed to make a critical evaluation of the information.

1.1 Research Approach : -

One had to depend mainly on primary data as first had knowledge was required about

market position of various brands in the milk, curd and buttermilk market. So our

actual study was conducted in 3 stages : -

First we discussed with our guiding officers on the various parameters of the project.

We also talked informally with some consumers and retailers to have some

preliminary idea.

Next format was prepared based on priori discussion. Separate questionnaire was

prepared for established and unexplored markets.

Lastly the final questionnaire was prepared with various modification to the previous

questionnaire.

1.2 Sampling techniques : -

The stratified sampling method was followed. The population of all the towns was not

homogeneous. There exists people of different occupation. So stratified sampling

technique had to be applied in order to obtain a representative sample.

1.3 Sample size : -

The sample size varied from town to town for retailers. In Sagarpur , Janak puri,

Vikas puri, Palam, Najafgarh, Mahavir enclave, bharthal the sample size taken was

30. The sample size of retailers varied from 7 to 25 according to the size of the

market.

1.4 Data Analysis : -

The data were analyzed separately for each area. The findings resulting of the analysis

varied from area to area and the recommendations stated accordingly arrived at after

thorough analysis and recommendation stated accordingly.

MAJOR FINDINGS

1) Majority of the consumers assign easy availability and quality as their main

preference in buying milk of a particular brand.

2) Per capital consumption is around 250 ml.

3) In established market, people buy amul milk mainly because of its brand

popularity, good quality and easy availability.

4) Private brand have been able to enter the market only on the basis of their low-

pricing strategy.

5) Brand awareness for amul milk is vey high.

6) The main preference for selling amul milk by the retailers is the customer

demand which also helps in sales of other products like bread, biscuit etc.

7) Town or villages where amul milk is less available at present, most people

prefer centre and nearby local shops.

SUGGESTIONS

1) People use milk for various purposes like making Curd, Lassi, Ice-cream

besides Tea and for drinking purpose. So a positive perception can be created

to make them think that amul milk is best suited for those purposes.

2) Projector films may be shown to the villagers emphasizing on the quality and

the hygenity of amul milk. This would help in convincing the people &

creating a favorable attitude.

3) Arrangement should be made to ensure regular supply of amul milk to the

consumers in new places once the milk in introduced. If possible

transportation facility should also be arranged to make it convenient for the

retailers.

4) 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.

LIMITATION

1) The time for the project was short & it had to be completed on time.

2) Language barrier was also a problem in one or two areas.

3) Retailers were not ready to furnish the detailed information. Some

retailers in the villages were hesitant in giving response which could have

lead to some sort of biasedness.

OVERALL EXPERIENCE

My overall experience was very well. I was responsible for visiting areas,

prescribed by my coordinator and asking various questions from retailers of that

particular area. A particular format was given by him. I worked for marketing

department of the company.

I could have done my work much better by getting sufficient knowledge about the

supply system of the company. One of the major problem I faced was lack of

information. We were informed about several things but most of the people asked me

about many additional things about which I had no idea, somehow I managed but it

could be better if I would have given enough information.

I have gained more experience in the way that I learnt many things. I learnt how to

communicate well with people. Even in the village areas too, I used to speak formal

language. Apart from this it also helped me in gaining confidence. Interacting with a

lot of people each and every day and asking for their details too, helped me overcome

my shyness and fear of public speaking up to a large extent.

My this experience will help me in future in a good way as now I know how an

organization works, what are the tasks they perform and how do they do it. It will help

me in quick learning of any task assigned and also I will be ready for any kind of task

and whatever they will teach me,I will be able to learn and understand quickly.

BIBLIOGRAPHY

Principles of Marketing -- Philip Kotler & Gary Armstrong, 2000.

Marketing Management -- Philip Kotler, 2000.

Product management—S.A.Chunawala, 1999.

Research Methodology - - C.R. Kothari

www.amul.com

www.gcmmf.org

www.indiandairy.com

www.nddb.com