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PROJECTPROJECTPROJECTPROJECT REPORTREPORTREPORTREPORT ONONONON

“Market Analysis & Sales Development of Amul Milk”

This study was conducted from 8 th June 09 to 8 th August 09

conducted from 8 t h June 09 to 8 t h August 09 At Gujarat Co-operative

At Gujarat Co-operative Milk Marketing Federation Limited

BY:

PRASANTA KUMAR MOHAPATRA PGDM OFOFOFOF
PRASANTA KUMAR MOHAPATRA
PGDM
OFOFOFOF

ASIAN SCHOOL OF MANAGEMENT

A report submitted in partial fulfillment of the requirements of PGDM (2008-10)

Company Guide:

Mr. PRANIL JADHAV SENIOR EXECUTIVE (SALES) GCMMF Ltd. PUNE

Faculty Guide:

PROF. K K BHASIN

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PREFACE The PGDM programme is well structured and integrated course of business studies. The main
PREFACE The PGDM programme is well structured and integrated course of business studies. The main

PREFACE

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

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

help me in the future when I will enter the practical field. Training is an integral

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

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

In today’s globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that “Experience is best teacher”.

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CERTIFICATE The following summer internship project report titled “MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL
CERTIFICATE The following summer internship project report titled “MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL

CERTIFICATE

The following summer internship project report titled “MARKET ANALYSIS &

SALES DEVELOPMENT OF AMUL MILK” at Gujarat Co-operative Milk

Marketing Federation Ltd., Pune from 8 th June 2009 to 8 th August 2009 is here by

approved as a certified study in management carried out and presented in a manner

satisfactory to warrant it’s acceptance as a prerequisite for the award of post-graduate

diploma in management (PGDM). For which it has been submitted. It is understood

that by this approval the undersigned do not necessarily endorse or approve any

statement made, opinion expressed on conclusion drawn therein but approve the summer internship report only
statement made, opinion expressed on conclusion drawn therein but approve the
summer internship report only for the purpose it is submitted.

Signature Prof. K.K BHASIN Faculty guide

Signature Mrs. K Madhavi Director

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CERTIFICATE This is to certify that Mr. Prasanta Kumar Mohapatra, Roll No. A-7028 a student
CERTIFICATE This is to certify that Mr. Prasanta Kumar Mohapatra, Roll No. A-7028 a student

CERTIFICATE

This is to certify that Mr. Prasanta Kumar Mohapatra, Roll No. A-7028 a student

of course PGDM from the institute Asian School of Management has done his

summer

training

at

GUJARAT

FEDERATION LIMITED, PUNE.

CO-OPERATIVE

MILK

MARKETING

The project work entitled “MARKET ANALYSIS & SALES DEVELOPMENT

OF AMUL MILK” has done under the supervision of Mr. K.K. BHASIN faculty member of
OF AMUL MILK” has done under the supervision of Mr. K.K. BHASIN faculty
member of ASIAN SCHOOL OF MANAGEMENT.

The project work embodies the original work done by Mr. Prasanta Kumar Mohapatra

during his summer project training period.

Signature Prof. K.K BHASIN Faculty guide

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ACKNOWLEDGEMENT With immense pleasure, I would like to present this project report for Gujarat Co-operative
ACKNOWLEDGEMENT With immense pleasure, I would like to present this project report for Gujarat Co-operative

ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for

Gujarat Co-operative Milk Marketing Federation Ltd. It has been an enriching

experience for me to undergo my summer training at “GCMMF”, which would not

have possible without the goodwill and support of the people around. As a student of

Asian School of Management”, Pune I would like to express my sincere thanks too

all those who helped me during my training program.

I would like to express my gratitude to all those who gave me the encouragement to

complete this project. I would like to thank my college authorities and Director Mrs. Madhavi Khare, for providing me the opportunity to work with the one prestigious organization.

I would like to give my heartily gratitude to the Mr. Pranil Jadhav, Senior Executive
I would like to give my heartily gratitude to the Mr. Pranil Jadhav, Senior Executive
(SALES), GCMMF Ltd., Pune for having given me the opportunity to do my project
work in the organization and lighted my way of progress with his guidance.

My sincere and deepest thanks to Mr. K.K. Bhasin, Faculty Member of ASIAN SCHOOL OF MANAGEMENT, PUNE for having spared his valuable time with me and for all the guidance given in executing the project as per requirements.

I would like to give my special thanks to my parents, their love, support and blessing enabled me to complete this Project work.

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

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DECLARATION I hereby declare that the following project report titled “MARKET ANALYSIS & SALES DEVELOPMENT
DECLARATION I hereby declare that the following project report titled “MARKET ANALYSIS & SALES DEVELOPMENT

DECLARATION

I hereby declare that the following project report titled “MARKET ANALYSIS &

SALES DEVELOPMENT OF AMUL MILK” at Gujarat Co-operative Milk

Marketing Federation Ltd., Pune is an authentic work done by me. It is to the best

of my knowledge and belief. This is to declare that all my work indulged in the

completion of this Project Report such as research, competitor analysis and sales

promotion is a profound and honest work of mine.
promotion is a profound and honest work of mine.

Date:

Signature Mr. PRASANTA KUMAR MOHAPATRA

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-:CONTENTS:- Sr. Subject Page No. No. 1 EXECUTIVE SUMMARY 9 2 INTRODUCTION 12 3 INDUSTRY
-:CONTENTS:- Sr. Subject Page No. No. 1 EXECUTIVE SUMMARY 9 2 INTRODUCTION 12 3 INDUSTRY

-:CONTENTS:-

Sr. Subject Page No. No. 1 EXECUTIVE SUMMARY 9 2 INTRODUCTION 12 3 INDUSTRY &
Sr.
Subject
Page No.
No.
1
EXECUTIVE SUMMARY
9
2
INTRODUCTION
12
3
INDUSTRY & COMPANY PROFILE
16
4
OBJECTIVE & SCOPE OF STUDY
43
5
RESEARCH METHODOLOGY
45
6
DATA PROCESSING & ANALYSIS
51
7
OBSERVATION & FINDINGS
68
8
LIMITATIONS
71
9
CONCLUSION
73
10
SUGGESTION & RECOMMENDATION
75
11
BIBLIOGRAPHY & WEBLIOGRAPHY
78
12
ANNEXURE
80

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EXECUTIVE SUMMARY 9
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY

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

In today’s competitive world while entering in the market it is very necessary to have good knowledge of the potential of a particular market. The information regarding the activities of competitor’s existing in the market so that we can plan our each activity according to that. It is also necessary to retain the existing customers apart from attracting the new customers.

The Project is concern with the market analysis & sales development of Amul dairy milk in Pune city. The project included as part of MBA Programme and the project is done from 8 th June to 8 th August.

1.1 Title:

“MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN PUNE CITY”.

1.2 Organization:

“Gujarat Co-operative Milk Marketing Federation (GCMMF), Anand, Gujarat”.

1.3 Objective:
1.3 Objective:

The Primary objective of study was to find size of retail network of Amul Taaza and Amul Gold in specific areas of Pune city. In the study my intention was go through the retail network of Amul dairy milk to know retailers view about supply chain of Amul dairy milk, to know the complaints of Amul dairy milk and to find the suggestions from retailers for more penetration of Amul dairy milk in Pune region. The secondary objective was to find customer response towards Amul milk. My aim was to go through the customers to know the interest of purchasing & using Amul milk. Basically the study was for the demand of Amul milk among the customers. And also to know the complaints on Amul milk.

1.4 Research Methodology:

Research type was descriptive. The research was done through retailers. I have collected the primary data through questionnaire which was filled by retailers, customers. Questions were both open and close ended. The secondary data was collected from website www.amul.com.

Sampling done is nonprobability sampling. The type of sampling method was Judgment sampling.

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1.5 Findings: In Pune region there are around more players in of liquid milk exist.
1.5 Findings: In Pune region there are around more players in of liquid milk exist.

1.5 Findings:

In Pune region there are around more players in of liquid milk exist. Those are like Chitale, Katraj, Krishnai, Mahanand, Amul, Warna, and many other local brands.

As per the findings CHITALE is the Market leader and having more market share. Awareness of Amul dairy milk among the retailers as well as consumers is average but acceptance is low. The sale is totally depends on the retailers.

1.6 Data Analysis:

The data analysis has done area wise. It gives idea about the competitors of Amul dairy milk. It gives information regarding their market share.

1.7 Conclusion:
1.7 Conclusion:

It was concluded that Amul dairy milk i.e. Full Cream milk and Cow milk has a high potential in the market and it is the known to its customers but still its acceptance is comparatively low as other competitors present in the market, because perception of customers towards the product is wrong, most of the consumer continuously using other brand and they do not want to switch over other brand.

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INTRODUCTION 12
INTRODUCTION
INTRODUCTION

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2.1 CONTEXT OF THE TOPIC: The dairy industries companies run mainly on the factors such
2.1 CONTEXT OF THE TOPIC: The dairy industries companies run mainly on the factors such

2.1 CONTEXT OF THE TOPIC:

The dairy industries companies run mainly on the factors such as availability, service frequency, affordability, taste and marketing. Availability is plays a vital role because purchasing power is depend upon availability of that product, in case distributors and retailers service matter a lot. Retailing includes all the activity in selling goods or service directly to the customers or personal nonbusiness use .A retailer or retail store is any business enterprises whose sales volume comes primarily from retailing.

Retailers are the part of milk marketing channels and perform the work of moving goods from producers to the customers. It overcomes the time, place and possession gap that separates goods and service from those who needs or wants them. Retailers as member of marketing channel perform a number of key functions. Some functions (physical, title, promotion) constitute a forward flow of activity from the company to the customers; other functions (ordering and payment) constitute a backward flow from customers to the company. Still others (information, negotiation, finance and risk taking) in both directions.

negotiation, finance and risk taking) in both directions. The project delves into the workings from the

The project delves into the workings from the distribution aspect of an FMCG organization, in detail. AMUL, being an FMCG company, attaches a lot of significance to the distribution aspect of its business. The distribution channel of AMUL holds a lot of potential in affecting the demand or sales of AMUL products through delivery on time, delivery of variety of products, the retailer- friendliness of the policies being set by the distributors and equitable distribution of products to all the retail outlets in a particular region, to name a few.

So, In order to plan retail coverage we map out the positions of Amul outlets, Amul parlors, and competitor’s outlets. This project was carried out in Pune city. For analyzing and presenting information that is tied to geographical location, we divided the city in different wards. By analyzing geographical representation and sales data with spatial distribution Amul outlets, competitor’s outlets and the density of others in an area, we identify unexplored area and plan location outlets to increase its market penetration. Using such research we can ascertain the quality and depth of retail penetration in specific area.

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Addition to this we carried out sales promotion activity through discount coupons. Sales promotion consists
Addition to this we carried out sales promotion activity through discount coupons. Sales promotion consists

Addition to this we carried out sales promotion activity through discount coupons. Sales promotion consists of diverse collection of incentive tools, most short-term designed to stimulate and/or greater purchase of a particular product by consumers or the trade. Whereas advertise offers a reason to buy, sales promotion offers incentive to buy. Sales promotion includes tools for consumer promotion (for example samples, coupons, prizes, cash refund, warranties, demonstrations, contest); trade promotion (for example buying allowance, free goods, merchandise allowances, co-operative advertising, advertising and display allowances, dealer sales contests); sales force promotion (for example bonuses, contests, sales rallies).

Sales promotion efforts are directed at final consumers and designed to motivate, persuade and remind them of the goods and receives that are offered.

2.2

Promotion Tool Used:

The consumer promotion tools mean the promotion activities, which are beneficial for consumers as well
The consumer promotion tools mean the promotion activities, which are beneficial for
consumers as well as company. Such as price discounts, samples, cash refund, premiums, prizes,
cross promotion and coupons etc. We decided to use discount coupons. We distributed it among
customers and validity kept seven days from issued.

The consumers are seduced to buy the product.

It helped to increase sales volume.

Consumer can get good quality of good in cheaper price.

It can attract the new consumers and customers buying other milk brands.

Attract brand switchers, who are primarily looking for low price, good value or premiums.

Turn switcher to loyal users,

It induced to make some subsequent purchases.

Give little permanent gain in market share.

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2.3 Need of Study: Managers are always curious about the position of their company’s products
2.3 Need of Study: Managers are always curious about the position of their company’s products

2.3 Need of Study:

Managers are always curious about the position of their company’s products in the market which largely depend upon the company’s goodwill, and the position of their brand. In order to maximize the sale and profit, company must deliver outstanding satisfaction to the retailers, wholesaler & customers. So market survey of retailers, wholesalers & customers, chart out the position of the company as compared to the competitors. It helps the organization to find out the brand being sold most by the retailers along with their stocking and also consumer buying preferences.

2.4 Statement of The Problem:

“MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN PUNE CITY”

It helps to study all activities which can be used to influence large number of
It helps to study all activities which can be used to influence large number of customers so as
to increase the sales of the Amul milk effectively”.

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INDUSTRY & COMPANY PROFILE 16

INDUSTRY

& COMPANY PROFILE
&
COMPANY PROFILE

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3.1 Industry Profile:- 3.1.1 The World Dairy Situation: According to a report published by International
3.1 Industry Profile:- 3.1.1 The World Dairy Situation: According to a report published by International

3.1

Industry Profile:-

3.1.1

The World Dairy Situation:

According to a report published by International Dairy Federation (IDF) on the World Dairy Situation 2007 the worldwide milk production is expected to grow at a slower pace in 2007-08 and is estimated at 655 million tonnes, only 9 million tonnes more than the production of 2006 – 2007. The strongest growth would be in Asia, notably in China and India. Milk production is projected at 36 million tonnes in China and 94.60 million tonnes in India. India would continue to be the largest milk producer, followed by the US, with projected production of 82.60 million tonnes.

Major changes are not expected in dairy products basket. World butter production increased for two
Major changes are not expected in dairy products basket. World butter production increased
for two years, in 2004 and 2005 and then declined in 2006-07. It is expected to decline again in
2007-08. Industrial cheese production is continuing to grow. The major cheese producing regions are
Europe and North America and both areas are expected to have a faster growth rate.

The production of condensed and evaporated milks is subject to a declining trend for many years in the developed market. It has been replaced by many other dairy products, especially liquid milks of UHT type, coffee cream and coffee whitener including some of the non-dairy origin.

World trade in dairy products after a period of relative stagnation, started recovery in the second half of 2006-07 and it continued in the first half of 2007-08. The recovery is due to prosperity resulting from economic demand. However, the bullish price situation is not likely to continue long and would level down.

Export of butter and butter-oil recovered in 2006-07 and this recovery continued in early 2007-08. The total volume of the world trade in cheese has accelerated and this trend is likely to continue in the year 2008.

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The outlook for the trade in dairy commodities for 2007-08 appears bright. However, since the
The outlook for the trade in dairy commodities for 2007-08 appears bright. However, since the

The outlook for the trade in dairy commodities for 2007-08 appears bright. However, since the new market equilibrium, in respect of prices has to be found, the question is whether international trade in dairy products will continue its growth in 2007-08 at the same momentum as in previous years. Because of the price situation in 2007-08, one may ask whether demand can follow the expected trends, but it would be premature to expect stagnation in the trade. In established markets, the potential for demand to reduce slightly can release the additional supplies, which are needed to maintain the growth of trade.

3.1.2 Indian Dairy Industry -- A Profile:

India’s dairy sector is expected to triple its production in the next 10 years in veiw of expanding potential for export to Europe and the West. Morever with WTO regulations expected to come into force in coming years all the develope countries which are amoung big exporters today would have to withdraw the support and subsidy to their domestic milk product sector. Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the US’ 63 cent. Also to take advantage of this lowest cost of milk production and increasing production in yhe country multinational companies are planning to expand their activities here. Some of those milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form.

their products in foreign countries in processed form. The urban market for milk products is expected

The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.83, 500 crores by year 2010. This growth is going to come from the greater emphasis on the processed food sector and also by increase in the conversation of milk into milk products. By 2010, the value of Indian dairy produce is expected to be Rs 10, 00,000 million. Presently the market is valued at around Rs7, 00,000mn.

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3.1.3 Co – Operative Unions: Backward integration of the process led the cooperatives to advances
3.1.3 Co – Operative Unions: Backward integration of the process led the cooperatives to advances

3.1.3 Co – Operative Unions:

Backward integration of the process led the cooperatives to advances in animal husbandry and veterinary practice. 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.

Recently the Indian cooperative movement got a much needed facelift. With competition snapping at its heels, the sector which has been governed by arcane laws until the recent past will see a special provision inserted in the companies Act, 1956. All the cooperative unions will be re- christened cooperative companies; they will come under the purview of the registrar of companies, instead of the registrar of cooperatives.

of companies, instead of the registrar of cooperatives. Dairy cooperatives account for the major share of

Dairy cooperatives account for the major share of processed liquid milk marketed in the country. Milk is processed and marketed by 170 milk producer’s cooperative unions, which federate into 15 state co-operative milk marketing federations.

The dairy board's programmes and activities seek to strengthen the functioning of dairy co- operatives, as producer-owned and controlled organizations. NDDB supports the development of dairy co-operatives by providing them financial assistance and technical expertise, ensuring a better future for India's farmers.

Over the years, brands created by cooperatives have become synonymous with quality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned customer confidence.

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-:Some of the major dairy cooperative federations include :- • Andhra Pradesh Dairy Development Co-operative
-:Some of the major dairy cooperative federations include :- • Andhra Pradesh Dairy Development Co-operative

-:Some of the major dairy cooperative federations include:-

Andhra Pradesh Dairy Development Co-operative Federation Ltd (APDDCF)

Bihar State Co-operative Milk Producers Federation Ltd (COMPFED)

Gujarat co-operative Milk Marketing Federation Ltd (GCMMF)

Haryana Dairy Development Cooperative Federation Ltd. (HDDCF)

Himachal Pradesh State Cooperative Milk Producers Federation Ltd (HPSCMPF)

Karnataka Cooperative Milk Producers Federation Ltd (KMF)

Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF)

Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF)

• Maharashtra Rajya Sahkari Maryadit Dugdh Mahasangh (Mahasangh) • Orissa State Cooperative Milk Producers Federation
• Maharashtra Rajya Sahkari Maryadit Dugdh Mahasangh (Mahasangh)
• Orissa State Cooperative Milk Producers Federation Ltd (OMFED)
• Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF)
• Punjab State Cooperative Milk Producers Federation Ltd (MILKFED)

Rajasthan Cooperative Dairy Federation Ltd (RCDF)

Tamilnadu Cooperative Milk Producers Federation Ltd (TCMPF)

3.1.4 The Dairy Cooperative Network

Includes 170 milk unions

Operates in over 338 districts

Covers nearly 1,08574 village level societies

Is owned by nearly 12 million farmer members. Apart from making India self sufficient in milk, these dairy co-operatives have established our country as the largest milk-producing nation in the world.

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3.2 The Organization: 3.2.1 Introduction & History: In the year 1946 the first milk union
3.2 The Organization: 3.2.1 Introduction & History: In the year 1946 the first milk union

3.2

The Organization:

3.2.1

Introduction & History:

In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the brand name AMUL in 1955.

The brand name Amul means “AMULYA”. This word derived form the Sanskrit word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for dairy development (Generally known as “ANAND PATTERN”).

dairy development (Generally known as “ANAND PATTERN”). In the early 40’s, the main sources of earning

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

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However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar
However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar

However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co- operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk.

the farmers to form a society for collection of the milk. These village societies would collect

These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union.

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

However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand.

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

the milk in Anand through a co-operative union, it was commonly resolved to sell the milk

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At the initial stage only 250 liters of milk was collected every day. But with
At the initial stage only 250 liters of milk was collected every day. But with

At the initial stage only 250 liters of milk was collected every day. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs liters of milk every day. Since milk was a perishable commodity it becomes difficult to preserve milk for a longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1073 societies.

With the financial help from UNICEF, assistance from the govt. of New Zealand under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Dr.Rajendra Prasad, the president of India laid the foundation on November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20, 1955.

1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy

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3.2.2 Amul Secret Of Success: The system succeeded mainly because it provides an assured market
3.2.2 Amul Secret Of Success: The system succeeded mainly because it provides an assured market

3.2.2 Amul Secret Of Success:

The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good.

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

Amul has been able to:

Produce an appropriate blend of the policy makers farmers board of management and the professionals:
Produce an appropriate blend of the policy makers farmers board of management and the
professionals: each group appreciating its rotes and limitations.

Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment.

Provide a support system to the milk producers without disturbing their agro-economic systems.best of the technology and harness its fruit for betterment. Plough back the profits, by prudent

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.producers without disturbing their agro-economic systems. Even though, growing with time and on scale, it has

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.use of men, material and machines, in the rural sector for the common good and betterment

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

The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like - all through the village societies. Basically the union and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF INDIA.

Amul (Anand milk union ltd.) is based 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.

people by whom this union is at the top position in Asia. First hand is of

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
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.

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3.2.3 GCMMF Overview: Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing
3.2.3 GCMMF Overview: Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing

3.2.3 GCMMF Overview:

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.

Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the largest Organisation in FMCG industry engaged in marketing of milk & milk products under the brand names of AMUL and SAGAR with an annual turnover exceeding Rs 5000 crores.

GCMMF is a unique organisation. It's a body created by Farmers, managed by competent professionals serving a very competitive and challenging consumer market. It is a true testimony of synergistic national development through the practice of modern management methods.

3.2.4 Vision:
3.2.4 Vision:

GCMMF will be an outstanding marketing organization, with specialization in marketing of food and dairy products both fresh and long life with customer focus and IT integrated. The network would consist of over 100 offices, 7500 stockiest covering at least every Taluka. Head quarter servicing nearly 10 lakh outlets with a turnover of Rs.10,000 Cr and serving several co-operatives. GCMMF shall also create markets for its products in neighboring countries.

3.2.5 Mission:

We at GCMMF endeavor to satisfy the taste and nutritional requirements of the customer of the world through excellence in the marketing by our committed team. Through co-operative networking, we are committed to offering quality product that provides best value for money.

27

3.2.6 Organization Structure: Organization Structure is divided into two parts: • External Organization Structure •
3.2.6 Organization Structure: Organization Structure is divided into two parts: • External Organization Structure •

3.2.6 Organization Structure:

Organization Structure is divided into two parts:

External Organization Structure

Internal Organization Structure

External Organization Structure

External Organization Structure is the organization structure that affects the organization from the out side.

State Level Marketing Federation

District Milk Product Union Ltd. Village Milk Product Union Ltd.
District Milk Product Union Ltd.
Village Milk Product Union Ltd.

Villagers

As we know, GCMMF is unit of Gujarat Milk Marketing Federation, which is a co-operative organization. The villagers of more than 10000 villages of Gujarat are the bases of this structure. They all make village milk producers union, district level milk producers union and then a state level marketing federation is established. The structure is line relationship, which provides easy way to operation. It also provides better communication between two stages.

28

• Internal Organization Structure: The following is internal organisation chart of Amul: Organization Structure Chart
• Internal Organization Structure: The following is internal organisation chart of Amul: Organization Structure Chart

Internal Organization Structure:

The following is internal organisation chart of Amul:

Organization Structure Chart

Chairman

chart of Amul: Organization Structure Chart Chairman Managing Director General Manager Ass. General Manager

Managing Director

Organization Structure Chart Chairman Managing Director General Manager Ass. General Manager Finance Production

General Manager

Structure Chart Chairman Managing Director General Manager Ass. General Manager Finance Production Marketing Sales

Ass. General Manager

Finance Production Marketing Sales & Purchase Dept. Personnel Dept. Dept. Dept. Dept.
Finance
Production
Marketing
Sales & Purchase
Dept.
Personnel
Dept.
Dept.
Dept.
Dept.

Senior

Senior

Senior

Senior

Senior

Manager

Manager

Manager

Manager

Manager

Senior Manager Manager Manager Manager Manager Finance Production Marketing Sales Personnel
Senior Manager Manager Manager Manager Manager Finance Production Marketing Sales Personnel
Senior Manager Manager Manager Manager Manager Finance Production Marketing Sales Personnel
Senior Manager Manager Manager Manager Manager Finance Production Marketing Sales Personnel
Senior Manager Manager Manager Manager Manager Finance Production Marketing Sales Personnel

Finance

Production

Marketing

Sales

Personnel

Manager

Manager

Manager

Manager

Manager

Manager Manager Manager Manager Manager Accountant Officer Marketing Officer P.R.F.
Manager Manager Manager Manager Manager Accountant Officer Marketing Officer P.R.F.
Manager Manager Manager Manager Manager Accountant Officer Marketing Officer P.R.F.
Manager Manager Manager Manager Manager Accountant Officer Marketing Officer P.R.F.
Manager Manager Manager Manager Manager Accountant Officer Marketing Officer P.R.F.

Accountant

Officer

Marketing

Officer

P.R.F.

 

Executive

Officer Marketing Officer P.R.F.   Executive Officers Supervisor F.S.R. 29 Salesmen Executive

Officers

Supervisor

F.S.R.

29

Salesmen

Executive

3.2.7 Production Function: Explosion of the production technology and changes in technical field is going
3.2.7 Production Function: Explosion of the production technology and changes in technical field is going

3.2.7 Production Function:

Explosion of the production technology and changes in technical field is going to bring out revolution in the industry sector which eventually gives stand to study and favors the come backing subject i.e. production and management.

Production and operation management is planning, organizing, staffing, directing and controlling of all the production system those portion of organization that convert inputs into products and services. In general production system takes raw material, personnel, machines, buildings and other resources and produce products and services.

The core of production system is its conversion subsystem where in workers; raw materials are used to convert inputs into products and services. This production department is at heart of the firm, as it is able to produce low cost products and superior quality in timely manners.

Thus, there arises enormous need of giving due importance to this department as a whole
Thus, there arises enormous need of giving due importance to this department as a whole
and a strong concrete base being foundation pillars of a manufacturing organization, if the intention
is to succeed domestically and globally.

30

• Operating Analysis- Amul’s only source of raw material is Village Milk societies. Milk is
• Operating Analysis- Amul’s only source of raw material is Village Milk societies. Milk is

Operating Analysis-

Amul’s only source of raw material is Village Milk societies. Milk is brought from such village milk societies every morning and evening. This milk is then sent to the dairy plant. In the dairy plant the milk is processed i.e. it is made free from germs.

· Milk Processing

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

Steps:

Milk Processing Chart:

Collection of Raw-Milk

steps: Steps: Milk Processing Chart: Collection of Raw-Milk Electronic Milk Test Methyline Blue Reduction Test

Electronic Milk Test

Methyline Blue Reduction Test

Purchasing And Standardizing Process Separation Process
Purchasing And Standardizing Process
Separation Process

Quality Check

Packaging Process

Cold Storage

31

3.2.8 Distribution Network: Most producers work with marketing intermediaries to bring their products to market.
3.2.8 Distribution Network: Most producers work with marketing intermediaries to bring their products to market.

3.2.8 Distribution Network:

Most producers work with marketing intermediaries to bring their products to market. The marketing intermediaries make up a marketing channel also called distribution cannel. Distribution channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption.

The entire market is divided in 5 zones.

The zonal offices are located at Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai. Moreover

there are 49 Depots located across the country and GCMMF caters to 13 Export markets.

The Head Office of GCMMF is located at Anand.

A zero level of channel also called a direct marketing channel consists of a manufacturer selling directly to the final customers. A one level channel; contains one selling intermediary such as retailer to the final customers. A two level channel two intermediaries are typically wholesaler and retailer. A three level channel are typically wholesaler, retailer and jobber in between.

GCMMF has an excellent distribution. It is its distribution channel, which has made it so popular. GCMMF’s products like milk and milk products are perishable. It becomes that much important for them to have a good distribution.

Distribution Chart Products Agents
Distribution Chart
Products
Agents
a good distribution. Distribution Chart Products Agents Wholesaler Retailer Consumer We can see from above figure
a good distribution. Distribution Chart Products Agents Wholesaler Retailer Consumer We can see from above figure

Wholesaler

Distribution Chart Products Agents Wholesaler Retailer Consumer We can see from above figure that GCMMF

Retailer

Distribution Chart Products Agents Wholesaler Retailer Consumer We can see from above figure that GCMMF

Consumer

We can see from above figure that GCMMF distribution channel is simple and clear. The products change hands for three times before it reaches to the final consumer. First of all the products are stored at the Agents end who are mere facilitators in the network. Then the products are sold to wholesale dealers who then sell to retailers and then the product finally reaches the consumers.

32

3.2.9 Managing Competition: The Indian market is dominated by a large number of small local
3.2.9 Managing Competition: The Indian market is dominated by a large number of small local

3.2.9 Managing Competition:

The Indian market is dominated by a large number of small local and regional players. There are an estimated 150 manufacturers in the organized segment, which accounts for 30-35% of sales and about 1000 units in the unorganized segments of the market. In the organized segment the significant brands are Kwality Walls , Vadilal, Amul, Havmor, Mother dairy and Baskins & Robbins. GCMMF is facing very tough competition from both in and outside India.

Amul combats competition from its competitors by providing quality products at a price which its customers value. Along with good quality products and reasonable price the packaging is also very good. Most of its products are available in many flavors. Excellent advertising backs its products and helps GCMMF (AMUL) to leave its competitors a tough time. Also Amul has come out with Amul Parlours to cater to various segments of customers. Amul has a very strong Brand Image in the Domestic market. Many products are exported by GCMMF.

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

FCB Ulka looks after a broad range of products namely, Amul Lite Breadspread, Amul Shrikhand, Amul Chocolates, Amul Paneer, Amul SnowCap Softy Mix Ice cream, Amul/Sagar Ghee, Amul Infant Milk Formula 1 & 2, Sagar Tea and Coffee whitener, Amul Spray Infant Milk Food, Amul Mithaee, Amul Gulab Jamun, Amulya Dairy Whitener, Mithaimate Sweetened Condensed Milk, Amul Ice cream, Sagar Skimmed Milk Powder and Amul Whole milk Powder.

Da Cunha looks after the Amul butter. Da Cunha also prepares the very popular Amul butter billboard campaigns, which we see at various locations. Over and above the Amul butter, Da Cunha also looks after the Amul Cheese, Cheese spread, Gouda Cheese, Emmental Cheese, Masti Dahi and Buttermilk, Amul Slim-n-Trim, Amul Taaza and Amul Gold (all different brands of milk), Amul Fresh Cream, Amul Chocolate Milk, Amul Fresh Milk and Nutramul.

FCB Ulka also looks after the corporate campaign.

33

3.2.11 Sales Turnover: Sales turn over of GCMMF from 1994 to 2009:- Sales Turnover Rs
3.2.11 Sales Turnover: Sales turn over of GCMMF from 1994 to 2009:- Sales Turnover Rs

3.2.11 Sales Turnover:

Sales turn over of GCMMF from 1994 to 2009:-

Sales Turnover Rs (million) US $ (in million) 1994-95 11140 355 1995-96 13790 400 1996-97
Sales Turnover
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
67113
1504

3.2.12 Areas of Operation:

Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA,

Bangladesh, Australia, China, Singapore, Hong Kong and a few South African nations. Other

potential markets being considered include Sri Lanka.

34

3.2.13 Some Facts: M e m b e r s : 13 district cooperative milk
3.2.13 Some Facts: M e m b e r s : 13 district cooperative milk

3.2.13 Some Facts:

Members:

13 district cooperative milk producers' Union

No. of Producer Members:

2.79 million

No. of Village Societies:

13,328

Total Milk handling capacity:

11.22 million litres per day

Milk collection (Total - 2008-09):

3.05 billion litres

Milk collection (Daily Average 2008-09):

8.4 million litres

Milk Drying Capacity:

626 Mts. per day

Cattlefeed manufacturing Capacity:

3500 Mts per day

3.2.14 Achievement & Awards: Amul: Asia’s largest dairy co-operative was created way back in1946 to
3.2.14 Achievement & Awards:
Amul: Asia’s largest dairy co-operative was created way back in1946 to make the milk
producer self-reliant and conduct milk- business with pride. Amul has always been the trend setter in
bringing and adapting the most modern technology to door steps to rural farmers.

Amul created history in following areas:

First self motivated and autonomous farmers “organization comprising of more than 5000000to rural farmers. Amul created history in following areas: marginal milk producers of Kaira District”. Created

marginal milk producers of Kaira District”.

Created Dairy co-operatives at village level functioning with milk collection centers owned by them.than 5000000 marginal milk producers of Kaira District”. Computerized milk collection system with electronic scale

Computerized milk collection system with electronic scale and computerized accounting system.functioning with milk collection centers owned by them. The first and only organization in world to

The first and only organization in world to get ISO 9000 standard for its farmers co-operatives.with electronic scale and computerized accounting system. First to produce milk from powder from surplus milk.

First to produce milk from powder from surplus milk. Amul is the live example of how co-to get ISO 9000 standard for its farmers co-operatives. operation amongst the poor marginal farmers can

operation amongst the poor marginal farmers can provide means for the socio-economic

development of the under privileged marginal farmers.

35

AWARDS:- Amul a co-operative society and its co-operation has led many different awards in its
AWARDS:- Amul a co-operative society and its co-operation has led many different awards in its

AWARDS:-

Amul a co-operative society and its co-operation has led many different awards in its favour.

Magsaysay award for community leadership presented in manila.co-operation has led many different awards in its favour. Philippines to Shri Tribhuvandas Patel, Shri D

Philippines to Shri Tribhuvandas Patel, Shri D N Khurody and Shri V. Kurienaward for community leadership presented in manila. 1964: “Padmabhusan” award given to Shri T.K. Patel

1964: “Padmabhusan” award given to Shri T.K. Patel

1965: “Padmshri” awarded was given to V. Kurien, general manager, by the president of India.

1987: “Best Productivity” awarded by national productivity council for the year 1985-86 awarded to Amul dairy.

1988: “Best Productivity” awarded for the second successive year 1986-87 by the president of India,
1988: “Best Productivity” awarded for the second successive year 1986-87 by the president of
India, Mr. R. Venkatrao to kaira union.
1993: “ICA” Memenoto towards genuine and self sustaining cooperative worldwide ICA regional
office for Asia and pacific, New Delhi, 1996.

1999: G.B.Birla award. Moreover the Amul union has achieved the prestigious ISO 9001-2000 and HACCP Certificate and effects are got to obtain ISO 14000.

1999: Best of All" Rajiv Gandhi National Quality Award for the year,

2003:

The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the top scorer in the service category of the prestigious IMC Ramkrishna Bajaj National Quality Award.

2006-07: GCMMF has bagged award for excellent performance in exports of dairy products from Agricultural and Processed Food Exports Development Authority (APEDA).

2007:

Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit.

36

3.3 List of Products Marketed:- Bread spreads • Amul Butter • Amul Lite Low Fat
3.3 List of Products Marketed:- Bread spreads • Amul Butter • Amul Lite Low Fat

3.3 List of Products Marketed:-

Bread spreads

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,
• Amul Emmental Cheese
• Amul Gouda Cheese
• Amul Malai Paneer (cottage cheese), Frozen, Refrigerated 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

Avsar Ladoos

Pure Ghee

Amul Pure Ghee

Sagar Pure Ghee

Amul Cow Ghee

37

UHT Milk Range • Amul Shakti 3% fat Milk • Amul Taaza 1.5% fat Milk
UHT Milk Range • Amul Shakti 3% fat Milk • Amul Taaza 1.5% fat Milk

UHT Milk Range

Amul Shakti 3% fat Milk

Amul Taaza 1.5% fat Milk

Amul Gold 4.5% fat Milk

Amul Lite Slim-n-Trim Milk 0% fat milk

Amul Shakti Toned Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

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
• Amulspray Infant Milk Food
Milk Powders
• Amul Full Cream Milk Powder
• Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Fresh Milk

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardized Milk 4.5% fat

Amul Slim & Trim Double Toned Milk 1.5% fat

Amul Saathi Skimmed Milk 0% fat

Amul Cow Milk

38

Sweetened Condensed Milk Amul Mithaimate Sweetened Condensed Milk Curd Products • Yogi Sweetened Flavored Dahi
Sweetened Condensed Milk Amul Mithaimate Sweetened Condensed Milk Curd Products • Yogi Sweetened Flavored Dahi

Sweetened Condensed Milk

Amul Mithaimate Sweetened Condensed Milk

Curd Products

Yogi Sweetened Flavored Dahi (Dessert)

Amul Masti Dahi (fresh curd)

Amul Butter Milk

Amul Lassee

Amul Ice creams

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)
• 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 Ice cream (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)

Health Isabcool

39

Chocolate & Confectionery • Amul Milk Chocolate • Amul Fruit & Nut Chocolate Brown Beverage
Chocolate & Confectionery • Amul Milk Chocolate • Amul Fruit & Nut Chocolate Brown Beverage

Chocolate & Confectionery

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Brown Beverage

Nutramul Malted Milk Food

Milk Drink

Amul Kool Flavoured Milk

Health Beverage

• Amul Shakti White Milk Food Ready to Serve Soups • Masti Tomato Soup •
Amul Shakti White Milk Food
Ready to Serve Soups
• Masti Tomato Soup
• Masti Hot & Sour Soup

Recently launched

Amul Ganthiya

40

PLANTS First plant is at ANAND , which engaged in the manufacturing of milk, butter,
PLANTS First plant is at ANAND , which engaged in the manufacturing of milk, butter,

PLANTS

First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk butter etc.

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

41

Third plant is at Kanjari , which produces cattelfeed. Fourth plant is at Khatraj, which
Third plant is at Kanjari , which produces cattelfeed. Fourth plant is at Khatraj, which

Third plant is at Kanjari, which produces cattelfeed.

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

42

OBJECTIVE & SCOPE OF THE STUDY 43

OBJECTIVE

&

SCOPE OF THE STUDY
SCOPE
OF THE STUDY

43

4.1 Objectives of Project: The main objective of the Study can be listed as follows
4.1 Objectives of Project: The main objective of the Study can be listed as follows

4.1 Objectives of Project:

The main objective of the Study can be listed as follows

A. Primary Objective

1. To find size of retail network of Amul Taaza and Amul Gold in specific Pune city.

areas of

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

2. To collect the information about the competitors.

B. Secondary Objective

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

2. To generate and secure consumer awareness. 4.2 Scope of Project: The study carried out
2. To generate and secure consumer awareness.
4.2 Scope of Project:
The study carried out in Pune city so its scope is mainly limited to Pune city.

It gives information about the size of the retail network.

It gives information about the services given by distributor to their retailer.

It gives information about the competitors’ products.

It will serve consumer in better manner.

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

It gives information about the sales promotion activities to improve the milk

sale

44

RESEARCH METHODOLOGY 45
RESEARCH METHODOLOGY
RESEARCH
METHODOLOGY

45

5.1 Research Methodology: The research was conducted from 8 t h June, to 8 t
5.1 Research Methodology: The research was conducted from 8 t h June, to 8 t

5.1 Research Methodology:

The research was conducted from 8 th June, to 8 th July, 2009. The research include meetings

with the retailers, consumers and dealers. It included preparation of the questionnaire to be answered

by above people for knowing the competitive position of Amul in the milk market. The views of the

above parties were recorded in the research as per the questionnaire set by us.

5.1.1 Research Approach:

The objective was to know the competitive position of Amul in the milk market thus in order

to successfully conduct the research the unbiased opinion of the above parties was desirable. Thus

we conducted the research as the representative of Amul company and sometimes the representatives

of the other company like Chitale or Katraj in order to have an unbiased opinion of the concerned

persons and it worked to achieve our goal. 5.1.2 Research Instrument: The research instrument was
persons and it worked to achieve our goal.
5.1.2 Research Instrument:
The research instrument was the structured questionnaire formulated for the respondents. The
questionnaire was different for the retailers and dealers and for the consumers there was a different

set of questionnaire. There were also the area maps.

5.1.3 Types of Question:

The second important aspect in the designing a question is to decide which types of question

are to be used. Question can be classified in various ways.

Questionnaire contains following type information-

1. Open-ended question

2. Dichotomous question

3. Multiple-choice Question

Both the questionnaire consists of all three types of question. Mostly all questions are multiple type questions. Dichotomous question are few in number. There is only one open-ended type question.

46

5.1.4 Phrasing of Question: In questionnaire, I try to phrase the question in logical way.
5.1.4 Phrasing of Question: In questionnaire, I try to phrase the question in logical way.

5.1.4 Phrasing of Question:

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

in sequence as personal information, awareness data, usage data, and finally related to reason and

satisfaction.

5.1.5 Sampling Plan:

Sample Size:

The sample size was as follows:

SR. NO. RESPONDENT TOTAL NUMBER 1. Retailers 169 2. Consumers 95 3. Distributors 4 Sampling
SR. NO.
RESPONDENT
TOTAL NUMBER
1.
Retailers
169
2.
Consumers
95
3.
Distributors
4
Sampling Technique:

A stratified sampling technique was used. A

different Stratum for

different type of

respondent within every stratum the respondents was selected as per convenience basis.

5.1.6 Method of Survey:

Personal Interview:

It is direct form of investigation, involving face-to-face communication with free feedback

information. It offers a sense of participation. It is more flexible form of data collection. Use of

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

Complex questions can be asked. The interview can have questions to secure more information.

Observation approach can be combined to verify age, income, status, standard information. Visual

aids in the form of catalogues samples etc. can be used to get views, opinions, and attitudes of

responder.

47

5.2.1 Product for Which Survey Was Conducted:- Composition: Variety Fat (%) SNF(%)* Amul Gold (Whole
5.2.1 Product for Which Survey Was Conducted:- Composition: Variety Fat (%) SNF(%)* Amul Gold (Whole

5.2.1 Product for Which Survey Was Conducted:-

5.2.1 Product for Which Survey Was Conducted:- Composition: Variety Fat (%) SNF(%)* Amul Gold (Whole Milk)

Composition:

Variety

Fat (%)

SNF(%)*

Amul Gold (Whole Milk)

6

9

Amul Taaza (Toned milk)

3

8.5

*Every 100 parts of SNF (Solids Not Fat) contains 56 parts of carbohydrates, 34 parts of protein and 9 parts of minerals.

Special Features: Amul Milk is the most hygienic liquid milk available in the market. It
Special Features:
Amul Milk is the most hygienic liquid milk available in the market. It is pasteurized in state-
of-the-art processing plants and pouch-packed to make it conveniently available to consumers.

Product Specification:

Amul milk meets the PFA standards for the respective type of milk.

Pricing of the Milk Amul Gold:

Price to distributor

:

Rs. 25.37

Price to Retailer

:

Rs. 26.00

MRP

:

Rs.27.00

Amul Taaza:

Price to distributor

:

Rs. 20.57

Price to Retailer

:

Rs. 21.00

MRP

:

Rs. 22.00

48

5.3.1 Area of Operation: The areas of operation were the research was done are as
5.3.1 Area of Operation: The areas of operation were the research was done are as

5.3.1 Area of Operation:

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

Sahakar Nagar

Upper

Sukhsagar Nagar

Bibewadi

Balaji Nagar

Dhankwadi

How the survey conducted To approach the outlets with the following requirements in mind

At Approach: • What type of shop it is? (hotels, amrutulya, bakery, restaurant, general stores,
At Approach:
• What type of shop it is? (hotels, amrutulya, bakery, restaurant, general stores, super
market)
• Does it stock Amul products?
• What other brands available in the shop

Secondary Level:

Whether it sells milk ?

If yes, whether it sells Amul milk ?

Whether the company provides any promotional support ?

Territory Level:

Does he sell local milk or not ?

Which is the most selling milk in the market ?

Who supplies milk to your shop ?

Does the delivery of milk is on time ?

What is the mode of payment credit or cash ?

49

Others: • Types of schemes given to him. • What are the uses of milk
Others: • Types of schemes given to him. • What are the uses of milk

Others:

Types of schemes given to him.

What are the uses of milk ?

Addendum:

Outlets may include institutions, general stores, mithai shops, super market, canteens, juice bars, ice-cream corners etc.

These sectors were chosen because the company believed that these segments could be the best potential buyers for this product.

were chosen because the company believed that these segments could be the best potential buyers for

50

DATA PROCESSINNG & ANALYSIS 51

DATA PROCESSINNG

& ANALYSIS
&
ANALYSIS

51

6.1 Data Analysis For Retailers:- 1) Number of retailers stocking Amul milk. Answer No. of
6.1 Data Analysis For Retailers:- 1) Number of retailers stocking Amul milk. Answer No. of

6.1 Data Analysis For Retailers:-

1) Number of retailers stocking Amul milk.

Answer

No. of

Percentage

respondents

Yes

55

20%

No

114

80%

Yes 33% No 67%
Yes
33%
No
67%

Yes

No

20% No 114 80% Yes 33% No 67% Yes No Interpretation: • The above graph indicates

Interpretation:

The above graph indicates that only 1/3 rd of the retailers are selling Amul milk.

It shows that Amul milk brand is not popular among the retailers.

52

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

2)

Sizes of Amul milk packets retailers preferred to store.

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

Answer

No. of

respondents

250ml

0

500 ml

32

1

Ltr

23

5

Ltr

0

0 500 ml 32 1 Ltr 23 5 Ltr 0 5 Ltr 0 1 Ltr 23
5 Ltr 0 1 Ltr 23 500 ml 32 250ml 0 0 5 10 15
5 Ltr
0
1 Ltr
23
500 ml
32
250ml
0
0
5
10
15
20
25
30
35
No. of respondents

Interpretation:

The above graph shows that most of the retailers preferred to stored 500 ml and 1 Ltr pouch

of Amul milk as per the customer demand.

In case of 5 Ltr. Pouch there was no customers demand.

250 ml pouches were not available to retailers.

53

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

3)

Reasons for Amul milk not stored by retailers.

(Out of 169 retailers 114 were not buying Amul milk.)

 

No.

of

Answer

respondents

Absence of packaging date

6

Low margin

75

No replacement for leakage

20

No distribution

13

0 10 20 30 40 50 60 70 80 No. of respondents
0
10
20
30
40
50
60
70
80
No. of respondents
No distribution 13 No replacement for leakage 20 Low margin 75 Absence of packaging date
No distribution
13
No replacement for
leakage
20
Low margin
75
Absence of packaging
date
6

Interpretation:

From above graph it is clear that half of the retailers were not satisfied with Amul

replacement and margin policy.

Some retailers responded about absence of packaging date.

Very less retailers complained about distribution network

54

4) Preference of retailer’s to milk brand. BRANDS RESPONDENTS Amul 15 Chitale 77 Katraj 45
4) Preference of retailer’s to milk brand. BRANDS RESPONDENTS Amul 15 Chitale 77 Katraj 45

4)

Preference of retailer’s to milk brand.

BRANDS

RESPONDENTS

Amul

15

Chitale

77

Katraj

45

Gokul

6

Others

26

Others 26 Gokul 6 Katraj 45 Chitale 77 Amul 15 0 10 20 30 40
Others
26
Gokul
6
Katraj
45
Chitale
77
Amul
15
0
10
20
30
40
50
60
70
80
90
RESPODENT
Amul 15 0 10 20 30 40 50 60 70 80 90 RESPODENT . Interpretation: •

.

Interpretation:

The above graph shows that the Chitale is most preferable brand in all.

Some retailers also prefers Katraj and others brands.

55

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

5)

Sources from where retailers get Amul milk

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

Answer

No.

of

Percentage

respondents

Distributors

52

95 %

Other suppliers

3

5 %

Distributors 52 95 % Other suppliers 3 5 % Interpretation: • Almost all retailers said that

Interpretation:

Almost all retailers said that they purchased milk from Amul distributors.

56

6) Retailer’s satisfaction with Amul distributor. (Out of 169 retailers only 55 were buying Amul
6) Retailer’s satisfaction with Amul distributor. (Out of 169 retailers only 55 were buying Amul

6)

Retailer’s satisfaction with Amul distributor.

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

Answer

No.

of

Percentage

respondents

Yes

34

62

%

No

21

38

%

No 38%
No
38%

Yes

62%

Yes

No

% No 21 38 % No 38% Yes 62% Yes No Interpretation: • Graph shows that

Interpretation:

Graph shows that most of the retailers were satisfied with the service provided by the Amul

distributors.

57

7) Awareness among retailers about different Sales Promotional activities for Amul (Out of 169 retailers
7) Awareness among retailers about different Sales Promotional activities for Amul (Out of 169 retailers

7)

Awareness among retailers about different Sales Promotional activities for Amul (Out of 169 retailers only 55 were buying Amul milk.)

milk.

Activities

Aware

Not aware

Price off

37

18

Free samples

13

42

Credit facility

16

39

Advertisement

49

6

P-O-P Displays

41

14

Coupons

50

5

6 P-O-P Displays 41 14 Coupons 50 5 60 6 5 50 14 18 40 39
60 6 5 50 14 18 40 39 42 30 49 50 20 41 37
60
6
5
50
14
18
40
39
42
30
49
50
20
41
37
10
16
13
0
Price off
Free samples
Credit facility Advertisement
P-O-P
Coupons
Displays
Aware
Not aware

Interpretation:

The graph shows that retailers were aware about the sales promotion activity that Amul carried out, but some respondents were unaware about various activities.

Most of the retailers were aware about advertisement and coupons scheme during festivals.

Credit facility and free samples were not provided to single retailers.

58

8) Interest of retailers in wholesale distribution of Amul milk. Answer No. of Percentage respondents
8) Interest of retailers in wholesale distribution of Amul milk. Answer No. of Percentage respondents

8)

Interest of retailers in wholesale distribution of Amul milk.

Answer

No. of

Percentage

respondents

Yes

27

16

%

No

142

84

%

Yes

16%

No
No

84%

Yes

No

% No 142 84 % Yes 16% No 84% Yes No Interpretation: • Graph represents the

Interpretation:

Graph represents the interest of the retailers to start Amul milk distribution .The questions

asked to increase the retail coverage.

Most of the retailers were not interested.

Only 16% of the retailers were ready to start Amul distribution.

59

9) Awareness among retailers for Amul Parlor (APO) and its benefits. (Out of 169 retailers
9) Awareness among retailers for Amul Parlor (APO) and its benefits. (Out of 169 retailers

9)

Awareness among retailers for Amul Parlor (APO) and its benefits.

(Out of 169 retailers only 118were questioned as they had large store.)

Answer

No. of

Percentage

respondents

Yes

70

59

%

No

48

41

%

No 41% Yes No Yes 59%
No 41% Yes No
No
41%
Yes
No

Yes

59%

Interpretation:

APO is the outlet where you get Amul milk and milk products and it helps to increase the

market share. This question asked to the retailers who were strong enough in capital.

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

60

10) Interest of retailers in opening an Amul Parlor (APO). (Out of 169 retailers only
10) Interest of retailers in opening an Amul Parlor (APO). (Out of 169 retailers only

10)

Interest of retailers in opening an Amul Parlor (APO).

(Out of 169 retailers only 118 were questioned as they had large store.)

.

Answer

No. of

respondents

Percentage

Yes

15

13 %

No

103

87 %

Yes

13%

Yes 13% No 87% Yes No

No

87%

Yes

No

Yes 15 13 % No 103 87 % Yes 13% No 87% Yes No Interpretation: •

Interpretation:

The graph represent that very less number of retailers were interested to start APO.

61

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

11) Consumer’s expectation from Amul milk.

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

ATTRIBUTE

RESPONDENTS

Good quality

7

Clear packaging date

23

Availability

25

0

5

0 5 10 RESPODENT 15 20 25 30

10

RESPODENT

15

20

25

30

Availability 25 Clear packaging date 23 Good quality 7
Availability
25
Clear packaging date
23
Good quality
7

Interpretation:

The question asked to the retailers where the Amul milk is being sale, and tried to collect feedback of customers about Amul milk.

More customers were having complaints about the clear date of packaging and availability.

Some customers were not happy with quality of milk.

62

12) Ratings from retailers for attributes of Amul milk. (Out of 169 retailers only 55
12) Ratings from retailers for attributes of Amul milk. (Out of 169 retailers only 55

12) Ratings from retailers for attributes of Amul milk.

(Out of 169 retailers only 55 were questioned as they buying Amul milk.)

Attribute Brand Rating Quality Availability Packaging Margin image Very good 37 48 34 5 0
Attribute
Brand
Rating
Quality
Availability
Packaging
Margin
image
Very good
37
48
34
5
0
Good
13
7
15
2
0
Average
5
0
0
48
0
Bad
0
0
6
0
0
Very bad
0
0
0
0
55
Total
55
55
55
55
55
60 0 0 5 0 0 0 0 0 0 7 6 50 0 13
60
0 0 5
0 0 0
0
0 0
7
6
50
0
13
15
40
48
30
55
48
20
37
34
10
2
5
0
Quality Brand image Availability Packaging 0 0 0 0 Margin Very good Good Average Bad
Quality
Brand image
Availability
Packaging
0 0 0 0
Margin
Very good
Good
Average
Bad
Very bad

Interpretation:

From the above graph it can be concluded that

QUALITY: Most of the retailers were satisfied with Amul milk quality.

BRAND IMAGE: The graph shows that Amul is having good brand image.

AVAILABILITY: Most of the retailers were satisfied with the Amul milk distribution.

PACKAGING DATE: Most of the retailers were not satisfied about not printing of packaging date and they were facing a problem regarding same.

MARGIN: All retailers were not satisfied with the margin policy given by Amul.

63

6.2 Data Analysis for Customers:- 1) Number of customers purchasing Amul milk. Answer No. of
6.2 Data Analysis for Customers:- 1) Number of customers purchasing Amul milk. Answer No. of

6.2 Data Analysis for Customers:-

1)

Number of customers purchasing Amul milk.

Answer

No. of

Percentage

respondents

Yes

30

32%

No

65

68%

Yes 32% No 68%
Yes
32%
No
68%

Yes

No

30 32% No 65 68% Yes 32% No 68% Yes No Interpretation: • The above graph

Interpretation:

The above graph indicates that only 32% of the customers are purchasing Amul milk.

It shows that Amul milk brand is not popular among the customers.

64

13) Ratings from customers for attributes of Amul milk. (Out of 95 customers only 30
13) Ratings from customers for attributes of Amul milk. (Out of 95 customers only 30

13) Ratings from customers for attributes of Amul milk.

(Out of 95 customers only 30 were questioned as they buying Amul milk.)

Attribute Brand Rating Quality Availability Packaging Price image Very good 18 25 16 5 6
Attribute
Brand
Rating
Quality
Availability
Packaging
Price
image
Very good
18
25
16
5
6
Good
9
5
9
2
13
Average
3
0
0
15
11
Bad
0
0
5
8
0
Very bad
0
0
0
0
0
Total
30
30
30
30
30
35 30 0 0 0 0 0 0 0 0 3 0 5 5 8
35
30
0 0 0
0
0
0 0
0 3 0
5 5
8
25
0
11
9
9
20
15
15
25
13
10
18
16
2
5
6
5
0
Quality Brand image Availability Packaging Price Very good Good Average Bad Very bad
Quality
Brand image
Availability
Packaging
Price
Very good
Good
Average
Bad
Very bad

Interpretation:

From the above graph it can be concluded that

QUALITY: Most of the customers were satisfied with Amul milk quality.

BRAND IMAGE: The graph shows that Amul is having good brand image.

AVAILABILITY: Most of the customers were satisfied with the Amul milk distribution.

PACKAGING DATE: Most of the customers were not satisfied about not printing of packaging date and they were facing a problem regarding same.

PRICE: Some customers were not satisfied with the price given by Amul.

65

14) Preference of retailer’s to milk brand. BRANDS RESPONDENTS Amul 15 Chitale 44 Katraj 11
14) Preference of retailer’s to milk brand. BRANDS RESPONDENTS Amul 15 Chitale 44 Katraj 11

14) Preference of retailer’s to milk brand.

BRANDS

RESPONDENTS

Amul

15

Chitale

44

Katraj

11

Gokul

8

Others

17

0 5 10 15 20 25 30 35 40 45 RESPODENTS
0
5
10
15
20
25
30
35
40
45
RESPODENTS
17 Others 8 Gokul 11 Katraj 44 Chitale 15 Amul
17
Others
8
Gokul
11
Katraj
44
Chitale
15
Amul

.

Interpretation:

The above graph shows that the Chitale is most preferable brand in all.

Some customers also prefers Katraj and others brands.

66

6.3 Data Analysis for Sales Promotion Activity:- We carried sales promotion activity at two places
6.3 Data Analysis for Sales Promotion Activity:- We carried sales promotion activity at two places

6.3 Data Analysis for Sales Promotion Activity:-

We carried sales promotion activity at two places of Pune city

1. Sahakar nagar

2. Sinhgad road

Store name

 

Sales(Ltr)

 
 

Initially

Day 1

Day 2

Day 3

Day 4

Day 5

Day 6

Day 7

Sai

0

10

5

5

5

5

5

5

Vaishali

0

15

15

15

15

15

15

15

New hanuman

5

20

15

15

15

15

15

15

Hanuman

15

30

25

25

25

25

25

25

Durga

5

10

10

8

8

8

8

8

Sales (Ltr) 35 30 30 25 25 25 25 25 25 25 sai 20 20
Sales (Ltr)
35
30
30
25
25
25
25
25
25
25
sai
20
20
vaishali
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
hanuman
10
10
10
new
8
8
8
8
8
8
hanuman
Durga
5
5
5
5
5
5
5
5
5
0
0 0
initially
Day 1
Day 2
Day 3
Day 4
Day 5
Day 6
Day 7

Interpretation:

Most of the retail outlets were not interested in Amul milk selling, but after launching coupons scheme, not only sales shoot up by considerable amount initially but also remain constant for next days.

In case of Sai and Vaishali retail outlet they were not interested in Amul milk selling but now they are selling 20 Ltr of milk daily. And they said if response will remain same they will increase milk order.

67

OBSERVATION & FINDINGS 68

OBSERVATION

& FINDINGS
&
FINDINGS

68

7.1 Observation Findings:- 7.1.1 Retailers: (super market, grocery shops, ets) • Retailers are not interested
7.1 Observation Findings:- 7.1.1 Retailers: (super market, grocery shops, ets) • Retailers are not interested

7.1 Observation Findings:-

7.1.1 Retailers: (super market, grocery shops, ets)

Retailers are not interested because they don’t have storage facility but if company provides them such facility they will be sale Amul milk.

Because of low profit margin almost all retailers are not interested in Amul milk selling.

The 250 ml and 5 Ltr milk pouch are no available to the retailers for selling.

On question, why retailers are not interested in selling of Amul milk, it is found they were not happy with margin, availability and replacement of leak pouches.

• Retailers were selling different brands. Because they were able to receive more margin from
• Retailers were selling different brands. Because they were able to receive more margin from
non popularized brand that they could not from well known brands.
• All retailers get Amul milk from company selected distributors.
• Measurable amount of retailers were not happy with the distributors, because of frequent
change in distributors and late delivery of milk.

All retailers were familiar with sales promotion activities undertaken by Amul. But more of

the activities were not communicated by distributors. So it shows that the advantage of such activities.

distributors are taking

Some questions were asked with view to convert retailers into distributors, but due to low margin they denied that.

Retailers were not interested to start APO because to start APO one required large amount investment i.e. near about 2 Lakhs and with this it is mandatory to sale only Amul products, so most of the retailers did not show interest in APO.

I found that customers were complaining about the packaging especially packaging date because Amul do not print packaging date on pouch.

When question came to retailers ratings towards Amul milk rating most of the most respondents complaining about profit margin and packaging date.

69

• During campaign it is found that the mindset of consumers towards Chitale milk is
• During campaign it is found that the mindset of consumers towards Chitale milk is

During campaign it is found that the mindset of consumers towards Chitale milk is very high and hence it has become a milk maket player. As from the sales chart it is clear that the sales of Chitale pouch milk is 50% more then Amul pouch milk.

Retailers also demand for the replacements for the damage due to the spoilage of milk that they have to bear when the Amul milk gets spoiled after the purchase.

7.1.2 End Users: (House holds)

Consumer’s preference for purchasing of liquid milk is mainly based on quality, taste, availability, home delivery and freshness respectively.

Awareness level among the consumers is around 75% to 80% but still only around 15% consumers are consuming Amul milk.

• Consumers have a perception that Amul milk is unfresh and is having lots of
• Consumers have a perception that Amul milk is unfresh and is having lots of cuddling
problem.
• The packaging of Amul milk is not popular among the customers as compared to other milk
brands are available in the market.

7.1.3 Bulk Users: (sweet shops, restaurants, hotels, canteens etc).

The awareness level of Amul milk in bulk users is around 90% but only 10% are using Amul milk.

The preference of purchasing milk by the bulk users is mainly quality, price and timely availability.

The reasons for not using milk by the bulk users are :

1. Higher price that is not meeting the competitors rate as bulk user are very price sensitive.

2. In sweet marts mawa generation is less and there is a complaint about cuddling of milk.

3. In case of canteens contract some of them prefer credit purchasing which is against

company’s norms and policies.

70

LIMITATIONS 71
LIMITATIONS
LIMITATIONS

71

Limitations:- This report had to work under several constraints and limitations. Some of the key

Limitations:-

This report had to work under several constraints and limitations. Some of the key limitation are.

.

1.

The survey is limited only for six wards.

2.

Time period of the project was 8 weeks, which may not be enough to understand the

whole market.

3.

Convenient sampling was used as the mode of conducting the research.

4.

The sample size of the taken was small, therefore it can be said that the chosen sample is

not the representative of the whole population and this hindered quantitative research.

5.

The psychology and temperament of a respondent play a significant role. Some

respondents are more sensitive as against others who are more tolerant. A change in the

composition of the respondents can affect the answers adversely or favorably.

6.

Respondents may not have been true in answering various questions and may be biased to

certain other questions. 7. Out of the whole research and analysis, only three major brands
certain other questions.
7. Out of the whole research and analysis, only three major brands could be highlighted,
leaving aside the other non-popular brands.
8. The questionnaire mostly contained multiple choice questions, therefore many
respondents did not give a proper thought before up the questions, and some even ticked

things, which were not applicable. Therefore, all this increased the bias.

9. The sample size of Retailers / Wholesalers was very small and therefore response from

them dose not reflect the exact view because they may to biased.

72

CONCLUSION 73
CONCLUSION
CONCLUSION

73

Conclusion:- Amul means different things to different people . To a milk producer – A
Conclusion:- Amul means different things to different people . To a milk producer – A

Conclusion:-

Amul means different things to different people.

To a milk producer – A life enriching experience To a consumer – Assurance of having wholesome milk To a mother – A reliable source of nourishment for her child To the country – Rural development and self reliance

As we know that Amul is very big organization and market leader in dairy products. It has maximum market share in Milk, Butter, Cheese & Ice-Cream which are its main/core products. But in case of local market like Pune the Amul milk is not a popular product as compared to other Amul Products. With the help of research, company can find out its week points in Milk product and can increase its market share through rectify mistakes. People have believed in Amul’s product and they will accept it also if effective actions were taken.

The survey resulted into following conclusions :
The survey resulted into following conclusions :

Amul must come up with new promotional activities such that people become aware about Amul Milk like Amul Tazza & Gold.

Quality is the dominating aspect which influences consumer to purchase Amul product, but prompt availability of other Milk brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales.

In comparison to Amul Milk, the other players such as Chitale, Katraj,Gokul & Krushnai provide a better availability and give competition to the hilt.

People are mostly satisfied with the overall quality of Amul Milk, but for the existence in the local market Amul must use aggressive selling techniques

74

. SUGGESTIONS & RECOMMENDATION 75

.

SUGGESTIONS

&

RECOMMENDATION
RECOMMENDATION

75

Suggestions & Recommendation:- The Milk products market has reached Maturity stage in India large no.
Suggestions & Recommendation:- The Milk products market has reached Maturity stage in India large no.

Suggestions & Recommendation:-

The Milk products market has reached Maturity stage in India large no. of Co-operatives having a variety of product range has entered the market, thus there is one way for Amul to sustain their milk business in the market by delivering outstanding satisfaction to their retailers, so that they can take interest in selling of Amul milk products. This can be done as follows

Company should start printing packaging date on milk pouch.

Amul has a relatively good distribution network, but still company is not able to fulfill the demand of outlet in the peak season when demand is very high. Here company should consider on the supply of product in the peak season.

Supply should be regular to all the outlets including those that lie in the pocket roads and not just in the outlets which lie on the easily accessible routes.

250 ml milk pouch should make available to retailers for selling, because lower income family has intention to buy small pouch milk.

• Provide reasonable Margin to retailers as compared to competitors, this motivates them to promote
Provide reasonable Margin to retailers as compared to competitors, this motivates them to
promote company’s milk and milk products.
Improve delivery schedule to provide products on time for the retailers about who claimed
that Amul milk is not available to them on time.
Incentives & schemes should be given to the retailers and some scrutiny should be follow to
check the scheme get being communicated properly by distributors or sales person.

Provide consistent service to retailers as this will help gain company goodwill in the market.

Do not change distributor frequently, because he is the only person who act as a connecting link between company and retailers.

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

Try to minimize bank deposits for APO, which help to retailer think to start.

Though the customers are asking for Branded milk is very few but Amul should invest more money in Brand promotion and marketing in Pune, it will be beneficial for the company in the long run as well as in the short run.

For Brand promotion and marketing of Amul milk in Pune it should introduce a mascot for the Amul milk as it already has for Amul Butter i.e. The Amul Butter Girl in order to gain a good position in the mind of customers. This will also help in easy Brand differentiation and Recognition.

76

• Also advertising on the television, Radio Mirchi and Sponsorship of the events, Trade Fairs
• Also advertising on the television, Radio Mirchi and Sponsorship of the events, Trade Fairs

Also advertising on the television, Radio Mirchi and Sponsorship of the events, Trade Fairs will be a better choice.

The study of milk market reveled that there is no Mergers and Acquisition in the milk industry. Amul should go for Mergers and Acquisition and try to acquire the local players in the Pune market like Chitale, Katraj and Gokul etc. It will help the company in increasing its Dealers network, Market share, Customer base etc. It will also save time of establishing a new manufacturing unit.

Our Research revealed that there is no awareness among the consumers regarding the Amul milk in Pune. So it is advisable to the company to conduct various consumer awareness programs like distributing of pamphlets outside the big shopping malls, giving presentations in schools and colleges about the Amul Milk by telling them about the qualities of milk. By this we can able to reach to a large number of people at one time only as there will students along with their teachers and other staff members of the school and colleges.

The pamphlets should be printed in such a way that it not only advertise about the milk but also provides information about how to preserve the milk in different conditions.

• In order to attract the ladies segment the pamphlets should have some recepies on
• In order to attract the ladies segment the pamphlets should have some recepies on the other
side of it.
• Some brand ambassador like M S Dhoni, Hrithik Roshan or Vriendra Sehwag may be used.
That will help customers to accept the product more quickly.
• Special offers should be there for dealers, retailers and consumers at the time of diwali and
holi.

Discount coupons should be given to the consumers in order to buy more milk.

If adding preservatives in the milk keeps the milk for longer times then Amul should also add some preservatives in the milk as people not only see quality but also sees the time duration i.e. how much times we can store the milk.

In order to push the milk to the customers the profit margin should be increased.

Company should improve its distribution channel and should increase the number of distributors.

Company should take care of retailers by solving their problems and should call back by appointing separate company representatives.

Timely visit should be given to the retail shops.

77

BIBLIOGRAPHY AND WEBLIOGRAPHY 78

BIBLIOGRAPHY

AND WEBLIOGRAPHY
AND
WEBLIOGRAPHY

78

Books: i. Marketing Management (12 t h Edition) – Philip Kotlar ii. Research Methodology –
Books: i. Marketing Management (12 t h Edition) – Philip Kotlar ii. Research Methodology –

Books:

i. Marketing Management (12 th Edition) – Philip Kotlar

ii. Research Methodology – C. R. Kothari

Websites:
Websites:

i.

www.google.co.in

ii.

www.wikipedia.com

iii.

www.amul.com.

iv.

www.marketresearch.com

v.

www.dairy.com

79

ANNEXURE 80
ANNEXURE
ANNEXURE

80

QUESTIONNAIRE :- ( Retailer Survey ) Name of the shop: Retailer Name: Address: 1) Do
QUESTIONNAIRE :- ( Retailer Survey ) Name of the shop: Retailer Name: Address: 1) Do

QUESTIONNAIRE:-

(Retailer Survey)

Name of the shop:

Retailer Name:

Address:

1)

Do you stock Amul milk?

a) Yes

a) Yes

b) No

b) No
2) If yes, what is the size of Amul milk packets do you preferred to
2)
If yes, what is the size of Amul milk packets do you preferred to store?
a) 250 ml
b) 500 ml
c) 1 Ltr
d) 5 Ltr.

3)

If No, Why?

a. Absence of packaging date

a. Absence of packaging date

b. Low margin

b. Low margin

c. No replacement for leakage

c. No replacement for leakage

d. Low distribution

d. Low distribution

4)

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

Amul

• Amul

Chitale

• Chitale

Katraj

• Katraj

Gokul

• Gokul

Others

• Others

81

5) From where do you get Amul milk?     a) Distributors b) Other suppliers
5) From where do you get Amul milk?     a) Distributors b) Other suppliers

5)

From where do you get Amul milk?

 
 

a) Distributors

  a) Distributors

b) Other suppliers

b) Other suppliers

6)

Are you satisfied with Amul distributor?

 

a) Yes

  a) Yes

b) No

b) No

7)

Do you know which Sales promotional activities does the company undertake for Amul milk?

a)

Price off

d)

Free samples

undertake for Amul milk? a) Price off d) Free samples b) Credit facility e) Coupons c)
b) Credit facility e) Coupons c) Advertisement f) P-O-P Displays 8) Are you interested in
b) Credit facility
e) Coupons
c) Advertisement
f) P-O-P Displays
8)
Are you interested in distribution of Amul milk?

a) Yes

b) No

9)

Are you aware of Amul Parlor (APO) and its benefits?

a) Yes

a) Yes

b) No

b) No

10) Are you interested in opening an Amul Parlor (APO)

a) Yes

a) Yes

b) No

b) No

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11) What is consumer’s expectation from Amul milk? a) Good quality b) Packaging c) Availability
11) What is consumer’s expectation from Amul milk? a) Good quality b) Packaging c) Availability

11) What is consumer’s expectation from Amul milk?

a) Good quality

a) Good quality

b) Packaging

b) Packaging

c) Availability

c) Availability

12) Give your ratings to following attributes of Amul milk.

a) Quality

Very good

Good

Average

Bad

Very bad

of Amul milk. a) Quality Very good Good Average Bad Very bad b) Brand image c)
b) Brand image c) Availability d) Packaging e) Margin
b) Brand image
c) Availability
d) Packaging
e) Margin

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QUESTIONNAIRE :- ( Customer survey ) Name of the shop: Retailer Name: Address: 1) Do
QUESTIONNAIRE :- ( Customer survey ) Name of the shop: Retailer Name: Address: 1) Do

QUESTIONNAIRE:-

(Customer survey)

Name of the shop:

Retailer Name:

Address:

1)

Do you know about Amul?

Yes

Name: Address: 1) Do you know about Amul? Yes No 2) What are the products of

No

Name: Address: 1) Do you know about Amul? Yes No 2) What are the products of

2)

What are the products of Amul you use very frequently?

Butter Cheese Shrikhand Milk Powder Dahi Milk Ice-Cream Butter Milk 3) Do you regularly get
Butter
Cheese
Shrikhand
Milk Powder
Dahi
Milk
Ice-Cream
Butter Milk
3)
Do you regularly get the Amul Milk?
Yes
No
Milk 3) Do you regularly get the Amul Milk? Yes No 4) Which brand’s milk do

4)

Which brand’s milk do you like most?

 

Amul

Amul Katraj Chitale Gokul

Katraj

Amul Katraj Chitale Gokul

Chitale

Amul Katraj Chitale Gokul

Gokul

Other (Specify)……………………

 

5)

Do you know about Amul God and Taaza?

 

Yes

Yes

No

No
 

6)

How is the taste of Amul Gold?

 

Poor

and Taaza?   Yes No   6) How is the taste of Amul Gold?   Poor

Satisfactory

and Taaza?   Yes No   6) How is the taste of Amul Gold?   Poor
and Taaza?   Yes No   6) How is the taste of Amul Gold?   Poor

Excellent

and Taaza?   Yes No   6) How is the taste of Amul Gold?   Poor

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7) How is the taste of Amul Tazza?   Poor Satisfactory Excellent 8) What about
7) How is the taste of Amul Tazza?   Poor Satisfactory Excellent 8) What about

7)

How is the taste of Amul Tazza?

 

Poor

Poor Satisfactory Excellent

Satisfactory

Excellent

Excellent

Poor Satisfactory Excellent

8)

What about the price of Amul milk?

Low

Low Average High

Average

Low Average High

High

High

9)

How is the packing of Amul milk?

 

Poor

Poor Good Excellent

Good

Poor Good Excellent

Excellent

Excellent

10.

Do you like the home delivery scheme of Amul Milk?

Yes

Do you like the home delivery scheme of Amul Milk? Yes No 11. Give your ratings

No

Do you like the home delivery scheme of Amul Milk? Yes No 11. Give your ratings
11. Give your ratings to following attributes of Amul milk. Very good Good Average Bad
11. Give your ratings to following attributes of Amul milk.
Very good
Good
Average
Bad
Very bad
f) Quality
g)
Brand image
h) Availability
i) Packaging
j) Price

12. Any suggestion about Amul milk:

85