Final Report Amul

A Project on MTR Ready to Eat Products
CONTENTS
1. Introduction
a. Introduction to study
2. Objectives of the study.
a) Research Methodology
b) Limitations
3. Company Profile
a. Departmental functions
b. organizational structure
4. Product profile
5. Products
a) Instant Tools
a. Instant Mix
6. Findings
7. SWOT Analysis
8. Suggestions
9. Bibliography
MIM COLLEGE KOPPAL – MBA FINAL YEAR

INTRODUCTION TO TOPIC
Several generations of .n consumer have grownup eating ice creams, which
traditionally is combination of full cream milk, lot of sugar and nuts. Amul ice cream
available in many flavours . I did project on “A study on promotional tools to push
slow moving flavors of Amul ice-cream in Karnataka -..”
.
NEED FOR THE STUDY

Project is to understand reasons behind slow moving flavors of ice creams and
competitor promotional activities It will help to company to adopt new promotional
activities.
PROJECT OBJECTIVE
The research study is made keeping in view of following objectives
• To asses the factor affecting to sale of slow moving flavors of Amul
products.
• To analyze the effectiveness of present promotional activities.
• To study performance and strategies of close competitor.
• To study perception of retailers and customers towards these product.

INDUSTRY PROFILE
FMCG industry
The FMCG industry is volume driven and is characterized by low margins.

The products are branded and backed by marketing, heavy advertising, slick
packaging and strong distribution networks. The FMCG segment can be classified
under the premium segment and popular segment. The premium segment caters
mostly to the higher/upper middle class which is not as price sensitive apart from
being brand conscious. The price sensitive popular or mass segment consists of
consumers belonging mainly to the semi-urban or rural areas who are not particularly
brand conscious. Products sold in the popular segment have considerably lower prices
than their premium counterparts

What are Fast Moving Consumer Goods (FMCG)
Products which have a quick turnover, and relatively low cost are known as
Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced
within a year. Examples of FMCG generally include a wide range of frequently
purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning
products, shaving products and detergents, as well as other non-durables such as
glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also
include pharmaceuticals, consumer electronics, packaged food products, soft drinks,
tissue paper, and chocolate bars.
FMCG Sector
The .n FMCG sector is the fourth largest in the economy and has a market size
of US$13.1 billion. Well-established distribution networks, as well as intense
competition between the organized and unorganized segments are the characteristics
of this sector. FMCG in . has a strong and competitive MNC presence across the
entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4
billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural
segments of the .n population are the most promising market for FMCG, and give
brand makers the opportunity to convert them to branded products. Most of the
product categories like jams, toothpaste, skin care, shampoos, etc, in ., have low per
capita consumption as well as low penetration level, but the potential for growth is
huge.
The .n Economy is surging ahead by leaps and bounds, keeping pace with
rapid urbanization, increased literacy levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as
well. According to the study conducted by AC Nielsen, 62 of the top 100 brands are
owned by MNCs, and the balance by .n companies. Fifteen companies own these 62
brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number three

followed by Thums Up. Britannia takes the fifth place, followed by Colgate (6),
Nirma (7), Coca-Cola (8) and Parle (9).
The Top 10 companies in FMCG sector
S. NO. Companies
1. Hindustan Unilever Ltd.
2. ITC (.n Tobacco Company)
3. Nestlé .
4. GCMMF (AMUL)
5. Dabur .
6. Asian Paints (.)
7. Cadbury .
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries
Source: Naukrihub.com
The personal care category has the largest number of brands, i.e., 21, inclusive
of Lux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands in
the 21, aggregating Rs. 3,799 crore or 54% of the personal care category. Cigarettes
account for 17% of the top 100 FMCG sales, and just below the personal care
category. ITC alone accounts for 60% volume market share and 70% by value of all
filter cigarettes in ..
The foods category in FMCG is gaining popularity with a swing of launches

by HLL, ITC, Godrej, and others. This category has 18 major brands, aggregating Rs.
4,637 crore. Nestle and Amul slug it out in the powders segment. The food category
has also seen innovations like softies in ice creams, chapattis by HLL, ready to eat
rice by HLL and pizzas by both GCMMF and Godrej Pillsbury. This category seems
to have faster development than the stagnating personal care category. Amul, .'s
largest foods company, has a good presence in the food category with its ice-creams,
curd, milk, butter, cheese, and so on. Britannia also ranks in the top 100 FMCG

brands, dominates the biscuits category and has launched a series of products at
various prices.
Source: Edited from an article by chillibreeze writer — Shital Vakhariya
Market size
The .n FMCG industry size was estimated to be around US$ 15 bn in 2007, as

per ASSOCHAM. Of this, close to US$ 8 bn was confined to the rural areas with US$
4 bn in the urban & metro area and almost US$ 3 bn in the semi-urban area. The large
young population of approximately 180 mn in the rural and semi-urban region is
driving the .n FMCG industry, with the continuous rise in their disposable income,
life style, food habit etc, among others. The lifestyle of this section of the population
is undergoing a rapid change on the back of rising income levels.
According to ASSOCHAM, the market size of FMCG in the rural and semi-
urban segment is likely to jump up by 10% and 6% respectively by 2010. Currently,
almost 52% of the rural market size is captured by FMCG products and is projected to
reach 57% in the next three years. This size is further expected to grow by 10% in the
next three years.
Higher employment generation
Employment generation was triggered by a thrust in industrial activity, which

led to newer jobs in sectors like logistics, infrastructure, and other related activities.
The format of modern trade has also enabled more employment in .. Organised retail
has augured well for the FMCG sector which has thereby derived greater exposure
leading to more employment. Furthermore, organised retail has also created more job
opportunities without any gender bias for our teeming population. As per DIPP
statistics, the food processing industry reported the highest proposed employment

numbers during the period Aug 1991- Jun 2008, indicating a growth of 2.1% when
compared to the previous corresponding period. Similarly, the vegetable oil &
vanaspati segment and soaps, cosmetics and toiletries segment registered a growth of
3.4% and 3% respectively, during the above mentioned period.
Source: DIPP
Foreign Direct Investment in the FMCG Sector
• In CY07, FDI inflows in sectors like food processing; soaps, cosmetics & toilet
preparations and vegetable oils & vanaspati together registered a growth of 41%.
• The total FDI in the food processing industry underwent a growth of 15% in
CY07. This came on the back of a robust 38% growth in the previous year.
• The pattern of FDI inflow witnessed a huge variation in between the years 2004-
2007 in the soaps, cosmetics and toiletries segment. From an almost 100% decline
in CY06, the FDI inflow underwent a sharp growth of more than four times in
CY07.
• The vegetable oils and vanaspati segment registered a robust rise of more than two
times in CY07 as against the previous year when it had recorded a more than 50%
decline.

Source: DIPP
Proposed and implemented domestic investments in various FMCG segments
Food Processing: The proposed Industrial Entrepreneur Memorandum (IEM) is

growing rapidly over the last couple of years in various FMCG sub segments. The
ratio of implemented IEM to proposed investments in the food processing segment
underwent a steady rise between 2004 and 2006, from 3.4% to 13.4%. However, in
2007, while proposed investments amounted to Rs 21,700 mn, those implemented
summed up to a mere Rs 2,630 mn, indicating a ratio of 12%.
Scope of The Sector

The .n FMCG sector with a market size of US$13.1 billion is the fourth largest
sector in the economy. A well-established distribution network, intense competition
between the organized and unorganized segments characterize the sector. FMCG
Sector is expected to grow by over 60% by 2010. That will translate into an annual

growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise
from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care,
household care, male grooming, female hygiene, and the chocolates and confectionery
categories are estimated to be the fastest growing segments, says an HSBC report.
Though the sector witnessed a slower growth in 2002-2004, it has been able to make a
fine recovery since then.
For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last
quarter. An estimated double-digit growth over the next few years shows that the
good times are likely to continue.
Growth Prospects
With the presence of 12.2% of the world population in the villages of ., the .n
rural FMCG market is something no one can overlook. Increased focus on farm sector
will boost rural incomes, hence providing better growth prospects to the FMCG
companies. Better infrastructure facilities will improve their supply chain. FMCG
sector is also likely to benefit from growing demand in the market. Because of the low
per capita consumption for almost all the products in the country, FMCG companies
have immense possibilities for growth. And if the companies are able to change the
mindset of the consumers, i.e. if they are able to take the consumers to branded
products and offer new generation products, they would be able to generate higher
growth in the near future. It is expected that the rural income will rise in 2007,
boosting purchasing power in the countryside. However, the demand in urban areas
would be the key growth driver over the long term. Also, increase in the urban
population, along with increase in income levels and the availability of new
categories, would help the urban areas maintain their position in terms of
consumption. At present, urban . accounts for 66% of total FMCG consumption, with
rural . accounting for the remaining 34%.
FOOD INDUSTRY

The food industry is the complex, global collective of diverse businesses that
together supply much of the food energy consumed by the world population. Only
subsistence farmers, those who survive on what they grow, can be considered outside
of the scope of the modern food industry.
The food industry includes:
Regulation: local, regional, national and international rules and regulations for food
production and sale, including food quality and food safety, and industry lobbying
activities
Education: academic, vocational, consultancy
Research and development: food technology
Financial services: insurance, credit
Manufacturing: agrichemicals, seed, farm machinery and supplies, agricultural

construction, etc.
Agriculture: raising of crops and livestock, seafood
Food processing: preparation of fresh products for market, manufacture of prepared

food products
Marketing: promotion of generic products (e.g. milk board), new products, public
opinion, through advertising, packaging, public relations, etc
Wholesale and distribution: warehousing, transportation, logistics
Retail: supermarket chains and independent food stores, direct-to-consumer,

restaurant, food services
Advantage of . under Food Industry:

. is one of the largest food producers in the world

. has diverse agro-climatic conditions and has a large and diverse raw material base
suitable for food processing companies
 Investment requirement of around US$ 15 billion exists in the food processing

sector
 . is looking for investment in infrastructure, packaging and marketing
 . has huge scientific and research talent pool
 A largely untapped domestic market of 1000 million consumers
 300 million upper and middle class consume processed food
 200 million more consumers expected to shift to processed food by 2010
 Well developed infrastructure and distribution network
 Rapid urbanization, increased literacy, changing life style, increased number

of women in workforce, rising per capita income- leading to rapid growth and
new opportunities in food and beverages sector
 50 per cent of household expenditure by .ns is on food items
 Strategic geographic location (proximity of . to markets in Europe and Far

East, South East and West Asia)
 Under the food industry, Dairy product is very important part of food
processing. Dairy processing is acting good role in ..
Dairy Processing
. ranks first in the world in terms of milk production. .n production stands at

91 million tones growing at a CAGR of 4 per cent. This is primarily due to the
initiatives taken by the Operation flood programmes in organizing milk producers into
cooperatives; building infrastructure for milk procurement, processing and marketing
and providing financial, technical and management inputs by the Ministry of

Agriculture and Ministry of Food Processing Industries to turn the dairy sector into
viable self-sustaining organized sector. About 35% of milk produced in . is processed.
The organized sector (large scale dairy plants) processes about 13 million tones
annually, while the unorganized sector processes about 22 million tones per annum. In
the organized sector, there are 676 dairy plants in the Cooperative, Private and
Government sectors registered with the Government of . and the state Government
INTERESTING ICE CREAM FACTS

 Although the origin of ice cream is unclear in history books, the first Ice
Cream parlor in America opened in New York City in 1776.
 In 1984, President Ronald Reagan designated July as National Ice Cream
Month and the third Sunday of the month as National Ice Cream Day.
 More ice cream is sold on Sunday than any other day of the week.
 Ice cream and related frozen desserts are consumed by more than 90% of
households in the U.S.
 It takes the average person just about 50 licks to polish off a single scoop Ice
cream cone.
 Most popular Creation at Cold Stone Creamery? Peanut Butter Cup
Perfection made with Chocolate Ice Cream with Peanut Butter, Reese's
PeanutButter Cup and Fudge.
ICE CREAM SALES AND TRENDS
 Total U.S. production of ice cream and related frozen desserts in 2004
amounted to about 1.6 billion gallons, up about 1.3% over the year prior,
translating to about 22 quarts per person - Source: USDA.
 In 2002, total U.S. sales of ice cream and frozen desserts reached $20.5
billion. Of that total, $8.1 billion was spent on products for "at home"
consumption, while $12.5 billion was spent on "away from home" frozen
dessert purchases (scoop shops, foodservice and other retail sales outlets)

 The trend in ice cream is certainly towards "indulgence" and the sales
prove it. Premium and super-premium quality ice creams (with 41.4 percent of
the total dollar sales) continue to outsell regular ice cream as well as the light
(7% of overall sales), reduced fat (0.7% of overall sales), low fat (3% of
overall sales) and nonfat (2% of overall sales) products all showing declines.
Source: 2005 Dairy Facts/International Ice Cream Association
ICE CREAM DEFINED

 Super-Premium Ice Cream has very low overrun (air) and high fat content,
and uses only the highest quality ingredients.
 Ice Cream is a frozen dessert product containing at least 10% milk-fat and
at least 20% total milk solids, safe and suitable sweeteners and optional
stabilizing, flavoring and dairy derived ingredients.
 Reduced Fat Ice Cream is made with 25% less fat than the referenced ice
cream.
 Light or Lite Ice Cream is made with 50% less fat or 1/3 fewer calories
than referenced ice cream, provided that in the case of caloric reduction,
less than 50% of the calories are derived from fat.
 Low fat Ice Cream contains not more than 3 grams of fat per serving.
 Nonfat / Fat Free Ice Cream contains less than 0.5 grams of fat per
serving.
 No Sugar Added Ice Cream may contain artificial sweeteners, but is not
sweetened with added sugar.
 Sorbet is frozen dessert similar in composition to an ice. It is a non-dairy
product with relatively high sugar content. It generally contains fruit, fruit
puree or fruit juice. Exotic flavors are often used and citric acid may be
added to enhance the taste.
 Frozen Yogurt is a frozen dessert similar in composition to nonfat or low

fat ice cream mixes containing cultured skim milk and lives active cultures
in the finished frozen product. As an industry standard, the fat content is
not more than 4%.
Ice Cream Shop making its' own fresh Micro Batch Ice Cream Flavors daily along
with specialty coffee and limited breakfast, lunch and dinner menu. Can be edited for
any type of Ice Cream concept also includes wholesale as well as retail sales of home
made pints, quarts, and pies.
America's economy restaurants are the nation's largest private-sector employers,
generating an annual economic impact of $1 trillion. Every dollar spent dining out
generates more than two dollars for other industries. On an average day in 2006 the
Industry will generate more than 1.4 billion dollars in sales. According to the National
Restaurant Association the nation's more than 878,000 restaurants will have reached
an estimated $511 billion in sales in 2006,( the half trillion dollar mark) the 15th year
of real consecutive growth for the Industry.
Overall the Industry as whole looks destined for solid continuous growth through
2010 as demographics lead the way. Today's consumers spend 44% of every food
dollar on meals, snacks and beverages purchased away from home up from 25% in
1955. Food away from home is no longer considered a luxury but it is considered to
be a component of to day's convenience driven lifestyle.
THE ICE CREAM SEGMENT

The Global Market for Ice Cream is now more than 21 billion dollars
annually. Ice cream and related frozen desserts are consumed by more than 93% of
households in the United States and consume more than 1.6 billion gallons annually.
In the U.S. about 50% is sold through Super Markets and 50% at local Ice Cream
Parlor. Operators took a hit in 2004 as a combination of political unrest and natural
disasters overseas, and fluctuations in the dairy industry in this country left ice cream
manufacturers grappling with higher prices for key ingredients including milk,
(Butterfat), vanilla and cocoa. Food prices increased at their fastest rate since1990,
due mostly to a combination of forces, including trade disruptions following evidence
of Bovine Spongiform Encephalopathy (BSE) in both the U.S. and

Canada, large increases in the farm price of milk, and weather-related damage to
some fruit and vegetable crops. These unexpected shocks to the food supply system,
along with a recovering U.S. economy and increased energy prices, were the main
causes of the larger than expected increase in food prices but the outlook is much
better for 2006 as prices continue to moderate and steady growth in demand
continues. Starting a small business is always risky, and the chance of success is slim.
According to the U.S. Small Business Administration, over 50% of small Businesses
fail in the first year and 95% fail within the first five years. Whether starting a new Ice
Cream Parlor are looking to raise additional capital to expand currently profitable Ice
Cream Parlor, or looking to evaluate and value to Ice Cream Business to sell, current
statistics prove that do much better with a business plan than without. According to
Dunn and Bradstreet the primary reasons for failure vary, but all of the reasons come
under the category of poor planning.
The second largest Industry in the United States, the Food Service Industry,
representing 4% of the U.S. Gross National Product in the most competitive Industry
in the world. Management decisions will decide whether business survives or thrives
in the face of increased competition. The most important benefit of a business plan is
that it sets the stage for the future Ice Cream Shop as it to be positioned in the
marketplace. A business plan will make it easy for banker to take action as gains
insight into the details of business and the goals that outlined. Potential investors can
review plan and decide whether or not to make an investment based upon the risk. It
will benefit most as study and gain detailed insight into own operations. Updating and
constantly reviewing plan will give more insight as both a manager and decision
maker.
TIME IS MONEY...
It has been estimated that it takes an average of 100 hours to research, and write a
comprehensive business plan within any Industry. Creating and compiling the five
year financial plan and forecasts including 5 years of budgets, income statements,
balance sheets, cash flow analysis, key financial ratio analysis, and break even
analysis can take more than 20 hours of work by accountant. Now consider sitting

down in front of computer to edit and fill in the details of an already written and
organized Ice Cream Shop business plan and outline.
INDUSTRY ANALYSIS OF ICE CREAM
The Ice Cream Industry Analysis included, written based upon current sources
including the National Restaurant Associations Food Industry Analysis and even
covers the state of the current vanilla and butterfat markets. Now computer's word
processor to turn this sample plan. Revenue assumptions covering cones, specialty
cones, Flavor Burst, Specialty Items, Frozen Treats, Razzles, Malts, Shakes, Ice
Cream Pies, pints and quarts sold both at retail and wholesale. Add in additional Food
and Beverage Breakfast, Lunch and Dinner menu, operating expense, and working
capital assumptions using computer's spreadsheet program, (Excel). Five years
projected month to month-operating budgets, income statements, balance sheets, cash
flow analysis, breakeven analysis and key financial ratio analysis. Once finished
editing, print plan and simply insert it into the three ring binders included, indexing it
according to the pre-labeled inserts.
Source: 2005 Dairy Facts/International Ice Cream Association

COMPANY PROFILE
Introduction
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative

movement in .. It is a brand name managed by an apex cooperative
organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF),
which today is jointly owned by some 2.6 million milk producers in Gujarat, ..
It is based in Anand town of Gujarat and has been a sterling example of a co-
operative organization's success in the long term. The Amul Pattern has
established itself as a uniquely appropriate model for rural development. Amul
has spurred the White Revolution of ., which has made . the largest producer of
milk and milk products in the world. It is also the world's biggest vegetarian
cheese brand .
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.
It is a brand name managed by an apex cooperative organisation, Gujarat Co-
operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly
owned by some 2.6 million milk producers in Gujarat, .. It is based in Anand
town of Gujarat and has been a sterling example of a co-operative organization's
success in the long term. The Amul Pattern has established itself as a uniquely
appropriate model for rural development. Amul has spurred the White
Revolution of ., which has made . the largest producer of milk and milk
products in the world. It is also the world's biggest vegetarian cheese brand .
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 .. (The
MILLENIUM INSTITUTE OF MANAGEMENT, KOPPAL 28-A

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”).
HISTORY
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.
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.

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.
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 Co-operative
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.
At the initial stage only 250 liters of milk was collected everyday. But with
the growing awareness of the benefits of the cooperativeness, the collection of milk
increased. Today Amul collect 11 lakhs liters of milk everyday. Since milk was a
perishable commodity it becomes difficult to preserve milk flora 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 . laid the
foundation on November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime
minister of . declared it open at Amul dairy on November 20, 1955.

PEOPLE POWER: AMUL'S SECRET OF SUCCESS

The system succeeded mainly because it provides an assured market at
remunerative prices for producers' milk besides acting as a channel to market the
production enhancement package. What's more, it does not disturb the agro-system of
the farmers. It also enables the consumer an access to high quality milk and milk
products. Contrary to the traditional system, when the profit of the business was
cornered by the middlemen, the system ensured that the profit goes to the participants
for their socio-economic upliftment and common good.
Looking back on the path traversed by Amul, the following features make it a
pattern and model for emulation elsewhere.
Amul has been able to:
• 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,
• Plough back the profits, by prudent use of men, material and machines, in the
rural sector for the common good and betterment of the member producers and
• Even though, growing with time and on scale, it has remained with the
smallest producer members. In that sense. Amul is an example par excellence,
of an intervention for rural change.
The Union looks after policy formulation, processing and marketing of milk,
provision of technical inputs to enhance milk yield of animals, the artificial
insemination service, veterinary care, better feeds and the like - all through the village
societies. Basically the union and cooperation of people brought Amul into fame i.e.
AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE
OF INDIA.

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

butter, ghee, milk powder, flavored milk and buttermilk.
Second plant is at MOGAR, which engaged in manufacturing chocolate,

nutramul, Amul Ganthia and Amul lite.

Third plant is at Kanjari, which produces cattelfeed.
Fourth plant is at Khatraj, which engaged in producing cheese.

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

Gujarat Cooperative Milk Marketing Federation
Gujarat Cooperative Milk Marketing Federation (GCMMF) is .'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.
Amul's product range includes milk powders, milk, butter, ghee, cheese, curd,
chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi,
Nutramul brand and others. In January 2006, Amul plans to launch .'s first
sports drink Stamina, which will be competing with Coca Cola's Powerade and
PepsiCo's Gatorade .
Amul is the largest food brand in . and world's Largest Pouched Milk Brand
with an annual turnover of US $1050 million (2006-07). Currently Amul has
2.6 million producer members with milk collection average of 10.16 million
litres per day. Besides ., Amul has entered overseas markets such as Mauritius,
UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few
South African countries. Its bid to enter Japanese market in 1994 had not
succeeded, but now it has fresh plans of flooding the Japanese markets .Other
potential markets being considered include Sri Lanka.
Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man

behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the
Banaskantha Union, was elected chairman of GCMMF.
ACHIEVEMENT:
Amul :Asias 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:
a) First self motivated and autonomous farmers organization comprising of more than
5000000 marginal milk producers of Kaira District.
b) Created Dairy co-operatives at village level functioning with milk collection

centres owned by them.
c) Computerized milk collection system with electronic scale and computerized

accounting system.
d) The first and only organization in world to get ISO 9000 standard for its farmers
co-operatives.
e) First to produce milk from powder from surplus milk.
Amul is the live example of how co-operation amongst the poor marginal farmers can
provide means for the socio-economic development of the under privileged
marginal farmers.
Amul in Abroad:
Amul is going places. Literally. After having established its presence in China,
Mauritius and Hong Kong, Gujarat Cooperative Milk Marketing Federation
(GCMMF), .‟s largest milk cooperative, is waiting to flood the Japanese
market.
Then, GCMMF is also looking at Sri Lanka as one of its next export destinations.
Amul products are already available on shelves across several countries,
including the US, China, Australia, West Asian countries and Africa.
GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include pouch
milk, ultra heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk.

Members: 13 district cooperative milk

producers' Union
No. of Producer Members: 2.7 million
No. of Village Societies: 13,141
Total Milk handling capacity: 10.21 million litres per day
Milk collection (Total - 2007-08): 2.69 billion litres
Milk collection (Daily Average 2007-08): 7.4 million litres
Milk Drying Capacity: 626 Mts. per day
Cattlefeed manufacturing Capacity: 3090 Mts per day
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

AMUL THE TASTE OF . (GCMMF) receives

INTERNATIONAL CIO 100 AWARD
FOR RESOURCEFULNESS
GCMMF is a winner of the prestigious international CIO 100 award from IDG's CIO
Magazine, USA. The 2003 CIO 100 award recognizes the organizations around the world that
excel in positive business performance through resourceful IT management and best
practices.
This CIO International IT excellence Award has recognized the Cooperative

Movement & its Leadership under the "Amul" brand, initiated by Dr. V Kurien, Milkman of .,
whose main Motto is to build .n Society economically & literally strong through innovative
cooperative resourceful network, so as to provide quality service & products to the end
consumers and good returns to the farmer members.
This award has also given direction that IT need to be encouraged & adopted more &
more at grass root level and bridge the digital divide through proper training, re-training so as
to bring radical change & benefit to the .n society.
It has also recognized the Managing Director, Mr. B M Vyas, who has taken IT
initiative by setting the direction "GCMMF as IT Company in Food business". It has also
inspired all the employees of GCMMF Enterprise to sustain the challenges as a "Change
Agent" by excelling their IT skills in order to transform the people around them towards IT
Integration (e-Vision) on both the ends of supply chain (Village level Farmer to end
consumer). This award also motivated the each & every member dairy, Amul's wholesale
distributors, retailers, transporters and suppliers who have supported whole-heartedly the IT
initiatives of GCMMF.
The Gujarat Co-operative Milk Marketing Federation (GCMMF) has been honoured at the
CIO 100 Symposium & Award Ceremony on August 19, 2003, at the Broadmoor in Colorado
Springs, Colorado, USA. Shri Subbarao Hegde, Head of IT had been to USA and received the
said Award on behalf of GCMMF. The photograph link of the recipient of the CIO award
along with CIO Magazine's Editor in Chief, Abbie Lundberg, can be seen at www.cio.co

Organizational Structure
BOARD MEMBERS
Shri Ramsinh Prabhatsinh Parmar Chairman

Shri Rajendrasinh Dhirsinh Parmar Vice-Chairman
Shri Dhirubhai Amarsinh Zala Director
Smt. Mansinh Kohyabhai Chauhan Director
Shri Maganbhai Gokalbhai Zala Director
Shri Shivabhai Mahijibhai Parmar Director
Shri Pravinsinh Fulsinh Solanki Director
Shri Chandubhai Madhubhai Parmar Director
Shri Bhaijibhai Amarsinh Zala Director
Shri Bipinbhai Manishankar Joshi Director
Smt. Sarayuben Bharatbhai Patel Director
Shri Ranjitbhai Kantibhai Patel Director
Managing Director
Shri B. M. Vyas
G.C.M.M.F
Shri Deepak Dalal District Registrar
GCMMF bags APEDA AWARD for 11th year in a row

GCMMF has bagged award for excellent performance in exports of dairy products for
the year 2006-07 from Agricultural and Processed Food Exports Development
Authority (APEDA), Minister of Commerce, New Delhi. GCMMF has won the award
for 11th time. The award was received by Mr. Raveen Choudhary, our AGM (Z-I),
Delhi, from Hon'ble Minister of Commerce, Shri Kamalnath, in a glittering ceremony
held at Siri Fort Auditorium on 3rd June, 2008.

Amul typical story.

Amul Butter Girl
Edited from an article by Mini Varma published in The Asian Age on March 3, 1996
The moppet who put Amul on .'s breakfast table
50 years after it was first launched, Amul's sale figures have jumped from 1000
tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No other brand comes
even close to it. All because a thumb-sized girl climbed on to the hoardings and put a
spell on the masses.
Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old
housewife is out in the balcony drying clothes. From her second floor flat she can see
her neighbours on the road. There are other people too. The crowd seems to be
growing larger by the minute. Unable to curb her curiosity Sheela Mane hurries down
to see what all the commotion is about. She expects the worst but can see no signs of
an accident. It is her four-year-old who draws her attention to the hoarding that has
come up overnight. "It was the first Amul hoarding that was put up in Mumbai,"
recalls Sheela Mane. "People loved it. I remember it was our favourite topic of
discussion for the next one week! Everywhere we went somehow or the other the
campaign always seemed to crop up in our conversation."
Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you, from
strategically placed hoardings at many traffic lights. She is the Amul moppet
everyone loves to love (including prickly votaries of the Shiv Sena and BJP). How
often have we stopped, looked, chuckled at the Amul hoarding that casts her
sometime as the coy, shy Madhuri, a bold sensuous Urmila or simply as herself,
dressed in her little polka dotted dress and a red and white bow, holding out her
favourite packet of butter.
For 30 odd years the Utterly Butterly girl has managed to keep her fan following
intact. So much so that the ads are now ready to enter the Guinness Book of World
Records for being the longest running campaign ever. The ultimate compliment to the

butter came when a British company launched a butter and called it Utterly Butterly,
last year.
It all began in 1966 when Sylvester daCunha, then the managing director of the
advertising agency, ASP, clinched the account for Amul butter. The butter, which had
been launched in 1945, had a staid, boring image, primarily because the earlier
advertising agency which was in charge of the account preferred to stick to routine,
corporate ads.
One of the first Amul hoardings
In ., food was something one couldn't afford to fool around with. It had been taken too
seriously, for too long. Sylvester daCunha decided it was time for a change of image.
The year Sylvester daCunha took over the account, the country saw the birth of a
campaign whose charm has endured fickle public opinion, gimmickry and all else.
The Amul girl who lends herself so completely to Amul butter, created as a rival to
the Polson butter girl. This one was sexy, village belle, clothed in a tantalising choli
all but covering her upper regions. "Eustace Fernandez (the art director) and I decided
that we needed a girl who would worm her way into a housewife's heart. And who
better than a little girl?" says Sylvester daCunha. And so it came about that the
famous Amul Moppet was born.
That October, lamp kiosks and the bus sites of the city were splashed with the moppet
on a horse. The baseline simply said, Thoroughbread, Utterly Butterly Delicious
Amul,. It was a matter of just a few hours before the daCunha office was ringing with
calls. Not just adults, even children were calling up to say how much they had liked

the ads. "The response was phenomenal," recalls Sylvester daCunha. "We knew our
campaign was going to be successful."
The Rebecca Mark favourite
For the first one year the ads made statements of some kind or the other but they had
not yet acquired the topical tone. In 1967, Sylvester decided that giving the ads a solid
concept would give them extra mileage, more dum, so to say. It was a decision that
would stand the daCunhas in good stead in the years to come.
In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna
movement, Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the
creative team working on the Amul account came up with a clincher -- 'Hurry Amul,
Hurry Hurry'. Bombay reacted to the ad with a fervour that was almost as devout as
the Iskon fever.
That was the first of the many topical ads that were in the offing. From then on Amul
began playing the role of a social observer. Over the years the campaign acquired that
all important Amul touch.
. looked forward to Amul's evocative humour. If the Naxalite movement was the
happening thing in Calcutta, Amul would be up there on the hoardings saying, "Bread
without Amul Butter, cholbe na cholbe na (won't do, won't do). If there was an .n
Airlines strike Amul would be there again saying, .n Airlines Won't Fly Without
Amul.
There are stories about the butter that people like to relate over cups of tea. "For over
10 years I have been collecting Amul ads. I especially like the ads on the backs of the
butter packets, "says Mrs. Sumona Varma. What does she do with these ads? "I have

made an album of them to amuse my grandchildren," she laughs. "They are almost
part of our culture, aren't they? My grandchildren are already beginning to realise that
these ads are not just a source of amusement. They make them aware of what is
happening around them."
Despite some of the negative reactions that the ads have got, DaCunhas have made it
a policy not to play it safe. There are numerous ads that are risque in tone.
"We had the option of being sweet and playing it safe, or making an impact. A fine
balance had to be struck. We have a campaign that is strong enough to make a
statement. I didn't want the hoardings to be pleasant or tame. They have to say
something," says Rahul daCunha.
"We ran a couple of ads that created quite a furore," says Sylvester daCunha. "The .n
Airlines one really angered the authorities. They said if they didn't take down the ads
they would stop supplying Amul butter on the plane. So ultimately we discontinued
the ad," he says laughing. Then there was the time when the Amul girl was shown
wearing the Gandhi cap. The high command came down heavy on that one. The
Gandhi cap was a symbol of independence, they couldn't have anyone not taking that
seriously. So despite their reluctance the hoardings were wiped clean. "Then there
was an ad during the Ganpati festival which said, Ganpati Bappa More Ghya (Ganpati
Bappa take more). The Shiv Sena people said that if we didn't do something about
removing the ad they would come and destroy our office. It is surprising how vigilant
the political forces are in this country. Even when the Enron ads (Enr On Or Off)
were running, Rebecca Mark wrote to us saying how much she liked them."
Amul's point of view on the MR coffee controversy
There were other instances too. Heroine Addiction, Amul's little joke on Hussain had
the artist ringing the daCunhas up to request them for a blow up of the ad. "He said
that he had seen the hoarding while passing through a small district in UP. He said he
had asked his assistant to take a photograph of himself with the ad because he had

found it so funny," says Rahul daCunha in amused tones. .ns do have a sense of
humour, afterall.
From the Sixties to the Nineties, the Amul ads have come a long way. While most
people agree that the Amul ads were at their peak in the Eighties they still maintain
that the Amul ads continue to tease a laughter out of them.
Where does Amul's magic actually lie? Many believe that the charm lies in the catchy
lines. That we laugh because the humour is what anybody would enjoy. They don't
pander to your nationality or certain sentiments. It is pure and simple, everyday fun.

Product range
Check out this vast and ever-growing range of 'tasteful'

Amul delectables!
"Please click here to download the latest PRODUCT DETAILER".
Bread Spreads
Amul Butter Amul Lite
Utterly Butterly Low fat, low
Delicious Cholesterol Bread
Spread
Delicious Table
Margarine
The Delicious way
to eat healthy
Milk Drinks
Amul Kool Millk Amul Kool
Shaake
Amul Kool Cafe Kool Koko

A delight to
Chocolate Lovers.
Delicious Chocolate
taste

Nutramul Energy Amul Kool

Drink Chocolate Milk
A drink for Kids -
provides energy to
suit the needs of
growing Kids
Amul Kool Amul Kool

Flavoured Bottled Flavoured Tetra
Milk Pack
Amul Masti Spiced Amul Kool

Buttermilk Thandai
Amul introduces the
Best Thirst
Quenching Drink
Powder Milk
Amul Spray Infant Amul Instant Full
Milk Food Cream Milk Powder
Still, Mother's Milk is A dairy in your home
Best for your baby
Sagar Skimmed Sagar Tea Coffee
Milk Powder Whitener
Which is especially
useful for diet
preparations or for
use by people on low

calorie and high

protein diet.
Amulya Dairy
Whitener
The Richest, Purest
Dairy Whitener
Fresh Milk
Amul Fresh Milk Amul Gold Milk
This is the most
hygienic milk
available in the
market. Pasteurised in
state-of-the-art
processing plants and
pouch-packed for
convenience.
Amul Taaza Double Amul Lite Slim and
Toned Milk Trim Milk
Amul Fresh Cream Amul Shakti Toned

Milk
Amul Calci+
Cheese

Amul Pasteurised Amul Cheese Spreads

Processed Cheese Tasty Cheese Spreads in 3
100% Vegetarian Cheese great flavours..
made from microbial rennet
Amul Emmental Cheese Amul Pizza Mozzarella

The Great Swiss Cheese Cheese
from Amul, has a sweet- Pizza cheese...makes
dry flavour and hazelnut great tasting pizzas!
aroma
Gouda Cheese
For Cooking
Amul / Sagar Pure Ghee Cooking Butter
Made from fresh cream.
Has typical rich aroma
and granular texture. An
ethnic product made by
dairies with decades of
experience.
Amul Malai Paneer Utterly Delicious Pizza
Ready to cook paneer to
make your favourite
recipes!
Mithai Mate Masti Dahi
Sweetened Condensed
Milk - Free flowing and
smooth texture. White to
creamy color with a
pleasant taste.
Desserts

Amul Ice Creams Amul Shrikhand

Premium Ice Cream made A delicious treat,
in various varieties and anytime.
flavours with dry fruits
and nuts.
Amul Mithaee Gulab Amul Chocolates
Jamuns The perfect gift for
Pure Khoya Gulab someone you love.
Jamums...best served
piping hot.
Amul Lassee Amul Basundi
Health Drink
Nutramul Amul Shakti Health
Malted Milk Food Food Drink
made from malt Available in Kesar-
extract has the highest Almond and
protein content among Chocolate flavours.
all the brown
beverage powders
sold in ..



Why pick amul ice cream

Desserts
Frozen Desserts are generally made from vegetable oils / fats.
In frozen desserts milk fat is replaced with vegetable oil, hence they are unable to give
the smooth taste and flavour which only an ice cream can give.
The base of the frozen dessert can be any sort of vegetable oil which is quite
inexpensive.
Ice-cream
Ice Cream is made from fresh milk.
Ice creams are rich in protein, calcium, dairy cream and vitamins.
Ice Creams are a complete food, easy to digest and full of energy.
Awards and certificates
ISO 9000-HACCP certified plants :
All Amul Ice Cream plants are ISO 9000-HACCP certified.
Amul is in the process of getting ISO 22000 (Improved version) certification for all
its plants.

No. 1 in Quality : Amul is ranked No.1 ice cream in quality by “INSIGHT” (May-
June, 2002), a bimonthly consumer magazine published by Consumer Research and
Education Society (CERS) based at Ahmedabad.
Best Value for Money brand : Voluntary Organization in Interest of Consumer
Education (VOICE), a consumer organization based in Delhi said in an article
published in Deccan Herald, Bangalore edition dated 16.03.04 that Amul provides the
best Value For Money as far as price is concerned. They also mentioned the
difference between Ice Cream and Frozen Dessert in their article as Amul is using
milk fat in ice cream and some competitors are using vegetable fat in their ice creams.
Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit
It’s another triumph for brand Amul. After emerging as .’s topmost brand, it
has gone to win one of the world’s most prestigious awards – The International Dairy
Federation Marketing Award (2007) for Amul pro-biotic ice-cream launch.
Announcing the award on October 03, at Dublin, Ireland on the occasion of the World
Dairy Summit, Mr. Jim Begg the IDF President commented “These campaigns are
excellent examples of best practise in branded and generic marketing from around the
world. In markets around the world that are volatile and highly competitive, dairy
products have a role in health balanced diets, and these campaigns have demonstrated
the ability of well planned and executed marketing investments.”
GCMMF is the first and the only .n organization to receive the 2007 IDF Marketing
Award which covered three categories – Nutri-marketing, Innovation and Marketing
Communication. Amul Pro-biotic Ice-cream received the award in the Nutri-
marketing category.
According to Shri B. M. Vyas, Managing Director, GCMMF, “We launched Amul

Pro-biotic Ice-cream as well as Amul Pro-biotic Sugar Free Ice-cream, due to the
constraints of cold chain which is a pre-requisite for ice-cream distribution. In a
country like . where we have waterborne diseases like diarrhoea, eating a spoonful or
two of pro-biotic ice-cream would keep the family healthy and strong. The product
was launched with this in view. We were the first in the country to introduce pro-

biotic ice-cream and pro-biotic sugar free ice-cream. We are happy that our efforts
have been globally recognized by bestowing the prestigious IDF Marketing Award’.
In January 2007, for the first time in . and the world GCMMF introduced the Amul
range of Pro-biotic and sugar free ice-creams aimed at the health- conscious and
diabetic. Probiotics are live beneficial culture which, when administered in adequate
amounts, confer a beneficial health effect on the host. They help in digestion,
especially of milk sugar (lactose). They improve the immune system, build stronger
bones and are effective in controlling travelers’ diarrhoea. They also help in the
prevention of formation and growth of colon cancer.
GCMMF was the first organization in the country to launch Pro-biotic food. In order
to educate consumers and trade about the benefits of Pro-biotic ice- cream, GCMMF
ran extensive advertising and direct marketing campaigns during the year
KARNATAKA DEPOTS:
WORKING MEMBER:

Asst sales manager, Depots In charge (one member)

Main Account In charge (one member)
Account In charge (one member)
Sales representatives (three member).
Sale: Sale of this depot is average 1.5 crore per month.
In this Ice cream sale is about 20 lac per month.
Main objectives:
Sales and sales monitoring.
To target reach.
Selecting Distributor:
First they will do market survey after that only distributor was selected.
Conditions for distributor they must have Financial sound, one cold room, one
freezer, one distribution vehicle, and aggressive sales persons.
This depot will cover all North Karnataka

48 distributors are they for dairy product
11 distributors are they for Ice cream Product.
Departmental Study
There are various Departments in the organization and they are as follows

1) Accounts Department
2) Marketing and sales Department
ACCOUNTS DEPARTMENT:
To the management the company auditors do final auditing. In this
department the financial accounts of the companies transactions are properly
maintained. Most of the accounting work is done on the computers to maintain
accuracy of the accounts. The accounting procedure is based on the usual accounting
principals. To maintain the day-to-day case transactions of the company. The daybook
with cash & bank columns are maintained. It also maintains the journal, ledger &
subsidiary books.
Closing of the accounts is done on 31st of March every year. At the end of the
accounting period trading account, profit & loss account & balance sheet is prepared
to ascertain the profit or loss made by the company in that particular year. The final
accounting reports are submitted.
MARKETING AND SALES DEPARTMENT

Marketing objectives:
• To increase the market share of amul.
• To achieve sales of Ice cream up to 1,00,000 Corers per month. (Currently its
sales is 20 lac per month).
• To be responsible for consumers source and be competitive in market.
• To streamline the marketing operation.
Responsibilities Marketing and Sales Asst. Manager:

• Making advertisement of the product.
• Looking to the marketing changes.
• Looking to the needs & wants of the customers.
• Expand the market.
• Sending the report about the market environment to the top management.

• Day to day supply the Ice cream product to the market or agent
• Sending the report of the sales to the tope management.
• The company is not directly involved in marketing to final consumers but the
product is sent to the depots. These distributors / depots are involved in
marketing or selling the product
.
Achievements:
• T Q M certificate of leadership for Karnataka Depot for best depot customer
satisfaction. During “1999-2000”.
• T Q M certificate of leadership in house keeping Karnataka Depot For all .
best in wet Go down house keeping. During “2004-2005”.
• Certificate of leadership in Rs / Liter Ice cream sales performance Karnataka
Depot for all . 3rd best during “2005-2006”.

RESEARCH METHODOLOGY
It refers to the method used to conduct the study and analysis of data.
a) Research Design: the type of study is Explanatory.
b) Sources of data
The major source of secondary or supporting data is company web site.

www.amul.com
www.amuldairy.com
LIMITATIONS
 The research was conducted in Karnataka . only, so analysis and

recommendations may not be applicable other .
 Sample size was 25+25=50 I feel this small size cannot represent the whole
city.

 Some respondent refused to participate in the survey and that in turn may have
affected the result of the study.
 All experienced things can’t be put on paper.
 It is conducted in open market, things tend to change rapidly.
 Because of the busy schedule respondents may not have answered properly
which may not hold true in case they would have been given lot of time to answer.
Findings
* 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 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
distributors are taking the advantage of such activities.
*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.
*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.
SUGESSTIONS
Suggestions & Recommendation:-
The Milk products market has reached Maturity stage in . 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 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.
CONCLUSION

This survey has helped me to understand about Amul company and their
products in Karnataka- . , their position in market and how the customers perceive
about their company. Amul has good brand image in the minds of the customers as
well as retailers but due to lack of supply of ice creams the retailers and customers are
switching to other brands. Some of the flavors of amul are moving slow in the market
because of lack of awareness of these products among the customers. During the
project I came to know about differs promotions of Amul, retailer behavior and
customer perception towards slow moving flavors.
BIBLIOGRAPHY
Book referred,
• Marketing research by A Parasurama,
• Dhruv Grewal, R Krishna.
Websites referred,
www.amul.com
www.amuldairy.com
www.wikipedia.com
www.scribd.com

Final Report Amul

Загружено:

Сведения о документе

Исходное описание:

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Final Report Amul

Загружено:

Авторское право:

Доступные форматы

A Project on MTR Ready to Eat Products

MIM COLLEGE KOPPAL – MBA FINAL YEAR

NEED FOR THE STUDY

MIM COLLEGE KOPPAL – MBA FINAL YEAR

The FMCG industry is volume driven and is characterized by low margins.

MIM COLLEGE KOPPAL – MBA FINAL YEAR

What are Fast Moving Consumer Goods (FMCG)

MIM COLLEGE KOPPAL – MBA FINAL YEAR

The Top 10 companies in FMCG sector

The foods category in FMCG is gaining popularity with a swing of launches

MIM COLLEGE KOPPAL – MBA FINAL YEAR

Source: Edited from an article by chillibreeze writer — Shital Vakhariya

The .n FMCG industry size was estimated to be around US$ 15 bn in 2007, as

Higher employment generation

Employment generation was triggered by a thrust in industrial activity, which

MIM COLLEGE KOPPAL – MBA FINAL YEAR

Foreign Direct Investment in the FMCG Sector

MIM COLLEGE KOPPAL – MBA FINAL YEAR

Proposed and implemented domestic investments in various FMCG segments

Food Processing: The proposed Industrial Entrepreneur Memorandum (IEM) is

Scope of The Sector

MIM COLLEGE KOPPAL – MBA FINAL YEAR

MIM COLLEGE KOPPAL – MBA FINAL YEAR

The food industry includes:

Education: academic, vocational, consultancy

Research and development: food technology

Financial services: insurance, credit

Manufacturing: agrichemicals, seed, farm machinery and supplies, agricultural

Agriculture: raising of crops and livestock, seafood

Food processing: preparation of fresh products for market, manufacture of prepared

Wholesale and distribution: warehousing, transportation, logistics

Retail: supermarket chains and independent food stores, direct-to-consumer,

Advantage of . under Food Industry:

MIM COLLEGE KOPPAL – MBA FINAL YEAR

 Investment requirement of around US$ 15 billion exists in the food processing

 . is looking for investment in infrastructure, packaging and marketing

 . has huge scientific and research talent pool

 A largely untapped domestic market of 1000 million consumers

 300 million upper and middle class consume processed food

 200 million more consumers expected to shift to processed food by 2010

 Well developed infrastructure and distribution network

 Rapid urbanization, increased literacy, changing life style, increased number

 50 per cent of household expenditure by .ns is on food items

 Strategic geographic location (proximity of . to markets in Europe and Far

. ranks first in the world in terms of milk production. .n production stands at

MIM COLLEGE KOPPAL – MBA FINAL YEAR

INTERESTING ICE CREAM FACTS

ICE CREAM SALES AND TRENDS

MIM COLLEGE KOPPAL – MBA FINAL YEAR

ICE CREAM DEFINED

MIM COLLEGE KOPPAL – MBA FINAL YEAR

THE ICE CREAM SEGMENT

MIM COLLEGE KOPPAL – MBA FINAL YEAR

MIM COLLEGE KOPPAL – MBA FINAL YEAR

MIM COLLEGE KOPPAL – MBA FINAL YEAR

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

MILLENIUM INSTITUTE OF MANAGEMENT, KOPPAL 28-A

However, when the exploitation became intolerable, the farmers were

MILLENIUM INSTITUTE OF MANAGEMENT, KOPPAL 28-A

MILLENIUM INSTITUTE OF MANAGEMENT, KOPPAL 28-A

MILLENIUM INSTITUTE OF MANAGEMENT, KOPPAL 28-A

MILLENIUM INSTITUTE OF MANAGEMENT, KOPPAL 28-A

PEOPLE POWER: AMUL'S SECRET OF SUCCESS