UNIVERSITY OF MUMBAI

PROJECT REPORT ON
“BUSINESS OVERVIEW OF AMUL”

IN PARTIAL FULFILMENT FOR BACHELOR OF MANAGEMENT

STUDIES
2015-16

PROJECT GUIDE
ASSISTANT PROFESSOR Ms. NITHYA VARGHESE

SUBMITTED BY:
ALOK PANDEY
ROLL NO: 4147

SPECIALISATION
IN
OTHERS

MAHATMA EDUCATION SOCIETY

PILLAI COLLEGE OF ART, SCIENCE & COMMERCE
NEW PANVEL
 UNIVERSITY OF MUMBAI
MAHATMA EDUCATION SOCIETY
PILLAI COLLEGE OF ART, SCIENCE & COMMERCE
NEW PANVEL

CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the work entered in this journal is the work of ALOK PANDEY,
TYBMS, has successfully completed a project report on BUSINESS OVERVIEW OF AMUL,
terms of the year 2015-16, in the college as laid down by the college authority.

____________________ ____________________
Internal Guide External Guide
(NITHYA VARGHESE)

____________________
BMS Coordinator Date of Submission:
(PRERNA SHARMA)
 DECLARATION

I, ALOK PANDEY, STUDENT OF “TYBMS”, MAHATMA EDUCATION SOCIETY’S

PILLAI COLLEGE OF ARTS, COMMERCE AND SCIENCE, hereby declare that I have
completed the project report on ‘BUSINESS OVERVIEW OF AMUL’ in the academic year
2015-16.
The information submitted by me is true and original to the best of my knowledge.
 TABLE OF CONTENTS
Serial No. Chapter Topic Page No.
No.

1 I Introduction 1

2 II Research Methodology 4

3 III Conceptual Framework 12

4 IV Company Profile 20

5 V Data Collection and Analysis 44

6 VI Conclusions 64

7 VII Suggestions 65

8 Bibliography

9 Web Sources

10 Appendix
 ACKNOWLEDGEMENT

I would like to express my gratitude and sincere thanks to my Project Guide Prof. Nithya
Varghese, Pillai College of Arts, Science and Commerce, for instilling confidence in me to carry
out this study and extending valuable guidance and encouragement from time to time, without
which it would not have been possible to undertake and complete this project.
I also wish my appreciation to our Principal Mrs. Daphne Pillai and the Chief Coordinator of
BMS Prof. Prerna Sharma and Vice-Principal Mr. Kutty, for their kind co-ordination and
support.
I would like to thank my peers for their valuable comments and suggestions for making this a
memorable experience for me.
I would also like to thank my parents and my friends, who have stood by me whenever needed
and to those without whom this task wouldn’t have been accomplished.
Executive Summary
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
selected sectors of Vashi City.

Objective:

The Primary objective of study was to find size of retail network of Amul Taaza and Amul
Gold in specific areas of Vashi city. In the study my intention was go through the retail network
ofAmul 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 Vashi region.

The Secondary objective was to find customer response towards Amul milk. My aim was to
go through the retailer to know the interest of purchasing & using Amul milk. Basically the study
was for the demand of Amul pouch milk among the customers through the retailer. And also to
know the complaints on Amul milk.
 Chapter 1: Introduction

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
non business 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.
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 Vashi 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.

1
SIGNIFICANCE 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.

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

1. To find size of retail network of Amul Taaza and Amul Gold in specific areas of
Vashi city.
2. To find the problems faced by retailers in selling and storing.
3. To collect the information about the competitors.
4. To generate sales

SCOPE OF PROJECT:
• The study carried out in Vashi city so its scope is mainly limited to Vashi 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 served 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 sales

2
 CHAPTER 2

RESEARCH METHODOLOGY

Research Methodology

The research was conducted from 24 May to July 11.

The research includes 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.

Research Methodology is the systematic, theoretical analysis of the methods applied to a field of
study. It comprises the theoretical analysis of the body of methods and principles associated with
a branch of knowledge. Typically, it encompasses concepts such as paradigm, theoretical model,
phases and quantitative or qualitative techniques. A methodology does not set out to provide
solutions - it is, therefore, not the same as a method. Instead, a methodology offers the theoretical
underpinning for understanding which method, set of methods, or so-called “best practices” can
be applied to specific case, for example, to calculating a specific result.

The features that a good research procedure must possess are:

1. Should be systematic in nature.
2. Should be logical.
3. Should be empirical and replicable in nature.
4. Should be according to plans.
5. Should be according to the rules and the assumptions should not be based on the false bases or
judgments.
6. Should be relevant to what is required.
7. Procedure should be reproducible in nature.
8. Controlled movement of the research procedure.

3
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 Gokul or Waran in order to have an unbiased opinion
of the concerned persons and it worked to achieve our goal.

Research Instrument:
The research instrument was the structured questionnaire formulated for the retailers. 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.

Types of Question:

The second important aspect in the designing a question is to decide which types of questions to
be used. Question can be classified in various ways. Questionnaire contains following type
information-

1. Open-ended question
2. Questions including reasons behind why they did not wanted to sell Amul Milk

Phrasing of Question:

In questionnaire, I try to phrase the question in logical way. For example I arrange questioning
sequence as personal information, awareness data, usage data, and finally related to reason and
satisfaction.

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.

4
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

Data Collection methods

Primary data

Primary data, by contrast, are collected by the investigator conducting the research. Primary data
is original research data in its raw form, without any analysis or processing. This data provides a
wealth of information for researchers.

 Survey – Survey is the most commonly used method in social sciences, management,
marketing and psychology to some extent. Surveys can be conducted in different
methods.
 Questionnaire – Questionnaire is the most commonly used method in survey.
Questionnaires are a list of questions either an open-ended or close-ended for which the
respondent give answer. Questionnaire can be conducted via telephone, mail, live in a
public area, or in an institute, through electronic mail or through fax and other methods.
 Interview- Interview is face-to-face conversation with the respondent. It is slow,
expensive, and they take people away from their regular jobs, but they allow in-depth
questioning and follow-up questions.
 Observation- Observation can be done while letting the observing person know that he is
being observed or without letting him know. Observations can also be made in natural
settings as well as in artificially created environment.

5
Secondary data

Secondary data is data collected by someone other than the user. Common sources of secondary
data for social science include censuses, organizational records and data collected through
qualitative methodologies or qualitative.

 Published Printed Sources- There are varieties of published printed sources. Their
credibility depends on many factors. For example, on the writer, publishing company and
time and date when published. New sources are preferred and old sources should be
avoided as new technology and researches bring new facts into light.
 Books – Books are available today on any topic that you want to research. The uses of
books start before even you have selected the topic. After selection of topics books
provide insight on how much work has already been done on the same topic and you can
prepare your literature review. Books are secondary source but most authentic one in
secondary sources.
 Journals – Journals are becoming more important as far as data collection is concerned.
The reason is that journals provide up-to-date information which at times books cannot
and secondly, journals can give information on the very specific topic on which you are
researching rather talking about more general topics.
 Magazines/ Newspapers- Magazines are also effective but not very reliable. Newspaper
on the other hand is more reliable and in some cases the information can only be obtained
from newspapers as in the case of some political studies.

6
7
 CHAPTER III

Conceptual Framework:
Finance:
Finance is a field that deals with the allocation of assets and liabilities over time under conditions
of certainty and uncertainty. Finance can also be defined as the science of money management.
A key point in finance is the time value of money, which states that purchasing power of one unit
of currency can vary over time. Finance aims to price assets based on their risk level and their
expected rate of return. Finance can be broken into three different sub-categories: public finance,
corporate finance and personal finance.

Corporate Finance:
Corporate finance is the area of finance dealing with the sources of funding and the capital
structure of corporations and the actions that managers take to increase the value of the firm to
the shareholders, as well as the tools and analysis used to allocate financial resources. The
primary goal of corporate finance is to maximize or increase shareholder value. Although it is in
principle different from managerial finance which studies the financial management of all firms,
rather than corporations alone, the main concepts in the study of corporate finance are applicable
to the financial questions of all kinds of firms.

Investment analysis (or capital budgeting) is concerned with the setting of criteria about which
value-adding projects should receive investment funding, and whether to finance that investment
with equity or debt capital. Working capital management is the management of the company’s
monetary funds that deal with the short-term operating balance of current assets and current
liabilities; the focus here is on managing cash, inventories, and short-term borrowing and lending
(such as the terms on credit extended to customers).

The terms corporate finance and corporate financier are also associated with investment banking.
The typical role of an investment bank is to evaluate the company’s financial needs and raise the
appropriate type of capital that best fits those needs. Thus, the terms “corporate finance” and

8
“corporate financier” may be associated with transactions in which capital is raised in order to
create, develop, grow or acquire businesses. Recent legal and regulatory developments in the
U.S. will likely alter the makeup of the group of arrangers and financiers willing to arrange and
provide financing for certain highly leveraged transactions.

Financial management overlaps with the financial function of the Accounting profession.
However, financial accounting is the reporting of historical financial information, while financial
management is concerned with the allocation of capital resources to increase a firm’s value to the
shareholders.

Outline of Corporate Finance:

The primary goal of financial management is to maximize or to continually increase shareholder
value. Maximizing shareholder value requires managers to be able to balance capital funding
between investments in projects that increase the firm’s long term profitability and sustainability,
along with paying excess cash in the form of dividends to shareholders. Managers of growth
companies (i.e. firms that earn high rates of return on invested capital) will use most of the firm’s
capital resources and surplus cash on investments and projects so the company can continue to
expand its business operations into the future. When companies reach maturity levels within their
industry (i.e. companies that earn approximately average or lower returns on invested capital),
managers of these companies will use surplus cash to payout dividends to shareholders.
Managers must do an analysis to determine the appropriate allocation of the firm’s capital
resources and cash surplus between projects and payouts of dividends to shareholders, as well as
paying back creditor related debt.

Choosing between investment projects will be based upon several inter-related criteria.
 Corporate management seeks to maximize the value of the firm by investing in
projects which yield a positive net present value when valued using an appropriate
discount rate in consideration of risk.

 These projects must also be financed appropriately.

9
  If no growth is possible by the company and excess cash surplus is not needed to
the firm, then financial theory suggests that management should return some or all
of the excess cash to shareholders (i.e., distribution via dividends).

This “capital budgeting” is the planning of value-adding, long-term corporate financial projects
relating to investments funded through and affecting the firm’s capital structure. Management
must allocate the firm’s limited resources between competing opportunities.

Capital budgeting is also concerned with the setting of criteria about which projects should
receive investment funding to increase the value of the firm, and whether to finance that
investment with equity or debt capital. Investments should be made on the basis of value-added
to the future of the corporation. Projects that increase a firm’s value may include a wide variety
of different types of investments, including but not limited to, expansion policies, or mergers and
acquisitions. When no growth or expansion is possible by a corporation and excess cash surplus
exists and is not needed, then management is expected to pay out some or all of those surplus
earnings in the form of cash dividends or to repurchase the company’s stock through a share
buyback program.

10
Planning:
A business plan is a formal statement of business goals, reasons they are attainable, and plans for
reaching them. It may also contain background information about the organization or team
attempting to reach those goals.

Business plans may target changes in perception and branding by the customer, client, taxpayer,
or larger community. When the existing business is to assume a major change or when planning
a new venture, a 3 to 5 year business plan is required, since investors will look for their
investment return in that timeframe.

Target Audience:
Business plans may be internally or externally focused. Externally focused plans target goals that
are important to external stakeholders, particularly financial stakeholders. They typically have
detailed information about the organization or team attempting to reach the goals. With for-profit
entities, external stakeholders include investors and customers. External stake-holders of non-
profits include donors and the clients of the non-profit’s services. For government agencies,
external stakeholders include tax-payers, higher-level government agencies, and international
lending bodies such as the International Monetary Fund, the World Bank, various economic
agencies of the United Nations, and development banks.

Internally focused business plans target intermediate goals required to reach the external goals.
They may cover the development of a new product, a new service, a new IT system, a
restructuring of finance, the refurbishing of a factory or a restructuring of the organization. An
internal business plan is often developed in conjunction with a balanced scorecard or a list of
critical success factors. This allows success of the plan to be measured using non-financial
measures. Business plans that identify and target internal goals, but provide only general
guidance on how they will be met are called strategic plans.

Operational plans describe the goals of an internal organization, working group or department.
Project plans, sometimes known as project frameworks, describe the goals of a particular project.
They may also address the project’s place within the organization’s larger strategic goals.

11
Content:
Business plans are decision-making tools. The content and format of the business plan is
determined by the goals and audience. For example, a business plan for a non-profit might
discuss the fit between the business plan and the organization’s mission. Banks are quite
concerned about defaults, so a business plan for a bank loan will build a convincing case for the
organization’s ability to repay the loan. Venture capitalists are primarily concerned about initial
investment, feasibility, and exit valuation. A business plan for a project requiring equity
financing will need to explain why current resources, upcoming growth opportunities, and
sustainable competitive advantage will lead to a high exit valuation.

Preparing a business plan draws on a wide range of knowledge from many different business
disciplines: finance, human resource management, intellectual property management, supply
chain management, operations management, and marketing, among others. It can be helpful to
view the business plan as a collection of sub-plans, one for each of the main business disciplines.

“... a good business plan can help to make a good business credible, understandable, and
attractive to someone who is unfamiliar with the business. Writing a good business plan can’t
guarantee success, but it can go a long way toward reducing the odds of failure.”

12
Human Resources:
Human resources is the set of individuals who make up the workforce of an organization,
business sector, or economy. “Human capital” is sometimes used synonymously with human
resources, although human capital typically refers to a more narrow view (i.e., the knowledge the
individuals embody and can contribute to an organization). Likewise, other terms sometimes
used include “manpower”, “talent”, “labour”, or simply “people”.

In Practice:
From the corporate objective, employees have been traditionally viewed as assets to the
enterprise, whose value is enhanced by further learning and development, referred to as human
resource development. Organizations will engage in a broad range of human resource
management practices to capitalize on those assets an employee base that is a mirror reflection of
the make-up of society insofar as race, gender, sexual orientation etc.

Skills and qualifications: as industries move from manual to more managerial professions so
does the need for more highly skilled graduates. If the market is “tight” (i.e. not enough staff for
the jobs), employers must compete for employees by offering financial rewards, community
investment, etc.
In regard to how individuals respond to the changes in a labour market, the following must be
understood:

Geographical spread: how far is the job from the individual? The distance to travel to work
should be in line with remuneration, and the transportation and infrastructure of the area also
influence who applies for a position.
Occupational structure: the norms and values of the different careers within an organization.
Mahoney 1989 developed 3 different types of occupational structure, namely, craft (loyalty to
the profession), organization career path (promotion through the firm) and unstructured
(lower/unskilled workers who work when needed).
Generational difference: different age categories of employees have certain characteristics, for
example, their behavior and their expectations of the organization.

13
Marketing:
Marketing is about communicating the value of a product, service or brand to customers or
consumers for the purpose of promoting or selling that product, service, or brand. The oldest –
and perhaps simplest and most natural form of marketing – is ‘word of mouth’ (WOM)
marketing, in which consumers convey their experiences of a product, service or brand in their
day-to-day communications with others. These communications can of course be either positive
or negative. In recent times, the internet has provided a platform for mass, electronic WOM
marketing (e-WOM), with consumers actively engaged in rating and commenting on goods and
services.

In for-profit enterprise the main purpose of marketing is to increase product sales and therefore
the profits of the company. In the case of nonprofit marketing, the aim is to increase the take-up
of the organization’s services by its consumers or clients. Governments often employ social
marketing to communicate messages with a social purpose, such as a public health or safety
message, to citizens. In for-profit enterprise marketing often acts as a support for the sales team
by propagating the message and information to the desired target audience.

Marketing techniques include choosing target markets through market analysis and market
segmentation, as well as understanding consumer behavior and advertising a product’s value to
the customer.

From a societal point of view, marketing provides the link between a society’s material
requirements and its economic patterns of response.

Marketing satisfies these needs and wants through the development of exchange processes and
the building of long-term relationships.

Marketing can be considered a marriage of art and applied science (such as behavioural sciences)
and makes use of information technology.

Marketing is applied in enterprise and 14odeling14ions via marketing management techniques.

14
Buying Behavior:
A marketing firm must ascertain the nature of customers’ buying behavior if it is to market its
product properly. In order to entice and persuade a consumer to buy a product, marketers try to
determine the behavioral process of how a given product is purchased. Buyer behavior in the
digital age is assessed through analytics and predictive 15odeling. The analysis of buyer behavior
through online platforms includes Google Analytics and vendor side software such as Experian.
The psychology of marketing is determined through the analysis of customer perception
pertaining to brands. Marketing theory holds that brand attributes is primarily a matter of
customer perception rather than product or service features.
Buying behavior is usually split into two prime strands, whether selling to the consumer, known
as business-to-consumer (B2C), or to another business, known as business-to-business (B2B).

Sales:
A sale is the exchange of a commodity for money or service in return for money or the action of
selling something.

The seller or the provider of the goods or services completes a sale in response to an acquisition,
an appropriation or a request. There is a passing of title (property or ownership) of the item, and
the settlement of a price. A seller agrees upon a price which he willingly gives ownership of the
item. The seller, not the purchaser generally executes the sale and it is completed prior to the
obligation of payment. A person who sells goods or service on behalf of the seller is known as
salesman or saleswoman.

15
 Chapter 4
COMPANY PROFILE

IDF World Dairy Situation 2010

The International Dairy Federation (IDF) is aware that consumer needs are changing and the
dairy sector must adjust to such demands quickly.
The world dairy market is constantly growing and evolving. Every year, global production is
increasing and fulfilling new needs and requirements in regions and continents around the world.

The IDF World Dairy Situation 2010 has incorporated several changes designed to make it more
usable and relevant to decision-makers and dairy sector stakeholders concerned with
continuously changing global dairy market conditions. It is also easier to use and reference
thanks to its new innovative layout.

This updated edition is the result of close collaboration between experts and key organizations
around the globe and within the IDF. Its contents, including statistics on production,
consumption and trade in all regions of the world, as well as specific observations from IDF
member countries, will help the reader to better understand and deal with the many challenges
and opportunities facing the global dairy market. Many of these are driven by population and
income growth, consumer health concerns and changing dietary patterns worldwide.

Commenting on the World Dairy Situation 2010 report, Bob Yonkers, Chair of the IDF Standing
Committee on Dairy Policies and Economics said: “Despite ups and downs, world trade in dairy
products continues to increase, rising seven per cent in 2009 compared to the previous year. That
trend appeared to be continuing in the first half of 2010. New market exchange activity, reported
in the World Dairy Market Forum section of this report, is a reflection of this trend and an
expectation that it will continue. The IDF World Dairy Situation 2010 brings strategic insights

16
into this dynamic and growing world dairy market for use by producers of farm milk, dairy
product manufacturers, and ultimately the end-users of those products around the globe.”

The World Dairy Situation 2010 is considered an essential and very useful resource by the global
dairy community and is presented at the annual IDF World Dairy Summit

Indian Dairy Industry – A Profile

India’s dairy sector is expected to triple its production in the next 10 years in view of expanding
potential for export to Europe and the West Moreover with WTO regulations expected to come
into force in coming years all the developed countries which are among big exporters today
would have to withdraw the support and subsidy to their domestic milk product sector. Also
India is the lowest cost producer of per liter 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 inched 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.
The urban market for milk products is expected to grow at an accelerated pace of around33% 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 conversion of milk into milk
products. In 2010, the value of Indian dairy produce was Rs 10, 00,000 million. Presently the
market is valued at around Rs7, 00,000million

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

17
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.
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 programs 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.

-: 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)

18
• 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 Ltd (OMFED)

• Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF)

• Punjab State Cooperative Milk Producers Federation Ltd (MILKFED)

• Rajasthan Cooperative Dairy Federation Ltd (RCDF)

• Tamilndu Cooperative Milk Producers Federation Ltd (TCMPF)

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

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

19
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 from 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”).
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 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 Shir Sardar Vallabhbhai Patel, who was a leading activist in the
freedom movement. Shir 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 Samarkh 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

20
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. Varghese 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.

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 longerperiod. 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 Pundit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on
November 20, 1955

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

21
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 maker’s farmer’s 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.

• 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.

22
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.

First hand is of farmers, without whom the organization would not have existed.
Second hand is of processors, who process the row material (milk) into finished goods.
Third hand is of marketer, without whom the product would have not reached the customers.
Fourth hand is of customers, without whom the products would have not carried on

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

Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the largest Organization 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 organization. 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

Vision:

23
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 lakhs 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

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

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 outside.

The following is internal organization chart of Amul.

State Level Marketing Federation

24
District Milk Product Union Ltd

Village Milk Product Union Ltd

Villagers

External Organization Structure Chart

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.

25
• Internal Organization Structure:

The following is internal organization chart of Amul

Chairman

Managing Director

General Manager

Asst. General Manager

26
Production Function:
Expansion 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 that portion of organization that converts 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 and a strong concrete base being foundation pillars of a manufacturing organization, if the
intention is to succeed domestically and globally.

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.

27
 “SWOT” Analysis of Amul
STRENGTH
1. Brand name and Goodwill.
2. India’s major giant player in dairy products.
3. Wide product range.
4. Qualified marketing & sales force.
5. Maximum milk handling capacity (11.22 million litres) per day.
6. High-quality products sold at reasonable prices.

WEAKNESS
1. Lack of availability of stock at various locations.
2. Lack of promotions (advertisements/offers/schemes).
3. Weak distributors service channel to retailers (in some areas).
4. Low profit margin to retailers.

OPPORTUNITIES
1. Areas can be targeted to cover Retailers look for convenience and margin.
2. Promotions will pay good results, market is lacking with the same.
3. A great opportunity to cash the brand name once again by giving good quality products.
4. Weak up the entire market as per the demand.

THREAT
1. Some customers are in the hand of retailers because the retailer enjoys good profit margin from
other competitor’s brand.
2. Psychological state of mind of retailers and consumers.
3. Old manufacturing date on packs is a major threat.
4. Competitors are cutting up the market share of Amul Product.

28
Milk Processing
The entire process of milk can be divided into following steps:

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 channel.
Distribution channels are sets of interdependent organizations involved in the process of making
a product or service available for use or consumption.
The Head Office of GCMMF is located at Anand. The entire market is divided in 5
zones. The zonal offices are located at Ahmadabad, Mumbai, New Delhi, Kolkata and Chennai.

29
Moreover there are 49 Depots located across the country and GCMMF caters to 13 Export
markets.

30
 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
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.

31
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 Parlous to cater to various segments of customers. Amul has a very strong
Brand Image in the Domestic market. Many products are exported by GCMMF.

32
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 Bread spread,
AmulShrikhand, Amul Chocolates, Amul Paneer, Amul SnowCap Softy Mix Ice cream,
Amul/SagarGhee, 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.

1st Amul Billboard in Mumbai

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 Cunhaalso 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.

33
In 1966, Amul hired Sylvester daCunha, then managing director of the advertising agency AS to
design a new ad campaign for Amul Butter. daCunha designed an ad campaign as series of
hoardings with topical ads, relating to day-to-day issues. The campaign was widely popular and
earned a Guinness world record for the longest running ad campaign in the world. Since the
1980s, cartoon artist Bharat Dabholkar has been involved with sketching the Amul ads, which
rejected the trend of using celebrities in advertisement campaigns. Dabholkar credited chairman
Dr Varghese Kurien with creating a free atmosphere that fostered the development of the ads.

Despite encountering political pressure on several occasions, daCunha’s agency has made it a
policy of not backing down. Some of the more controversial Amul ads include one commenting
on Naxalite uprising in West Bengal on the Indian Airlines employees strike, and the one
depicting the Amul butter girl wearing a Gandhi cap.

34
Sales Turnover:

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

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

2009-10 80053 1700

2010-11 97642 2172

2011-12 116680 2500

35
Graphical Presentation:

140000

120000

100000

80000

Rs (million)
60000
US $ (in million)

40000

20000

0
1997-98
1994-95
1995-96
1996-97

1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12

Areas of Operation:
Besides India, AMUL has entered overseas markets such as
Mauritius Singapore
UAE China,
USA Hong Kong
Bangladesh Sri Lanka.
Australia South Africa

36
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 liters per day

Milk collection (Total – 2008-09): 3.05 billion liters

Milk collection (Daily Average 2008-09):8.4 million liters

Milk Drying Capacity: 626 Mts. Per day

Cattle feed manufacturing Capacity: 3500 Mts per day

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
5000000 marginal milk producers of Kaira District”.

 Created Dairy co-operatives at village level functioning with milk collection centers
owned by them.

37
 
Computerized milk collection system with electronic scale and computerized accounting
system.

The first and only organization in world to get ISO 9000 standard for its farmer’s co-
operatives.
 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.

AWARDS:-
Amul a co-operative society and its co-operation has led many different awards in its favor.
Magsaysay award for community leadership presented in manila.
Philippines to Shri Tribhuvandas Patel, Shri D N Khurody and Shri V. Kurien
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, Mr. R. Venkatrao to Kaira union.

1993: “ICA” Memento 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,

38
2003: The Gujarat Co-operative Milk Marketing Federation Ltd. Has emerged as the top scorer
in
the service category of the prestigious IMC Ramakrishna 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.

39
The Product Range
Breadspreads Amul Butter, Amul Lite, Delicious Table Margarine

Amul Pasteurized Processed Cheddar Cheese, Amul Processed Cheese

Spread, Amul Pizza (Mozarella) Cheese,Amul Emmental Cheese,
Cheese Range
Amul Gouda Cheese, Amul Malai Paneer (cottage cheese), Utterly
Delicious Pizza

Amul Gold Full Cream Milk 6% fat, Amul Shakti Standardised Milk
Fresh Milk 4.5% Fat, Amul Taaza Toned Milk 3% fat, Amul Slim & Trim, Amul
Cow Milk

Amul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk, Amul Taaza
UHT Milk Range
1.5% fat Milk, Amul Lite Slim-n-Trim Milk, Amul Fresh Cream

Amul Full Cream Milk Powder, Amulya Dairy Whitener, Sagar

Milk Powders Skimmed Milk Powder, Amulspray Infant Milk Food, Sagar Tea and
Coffee Whitener

Amul Kool Flavored Milk, Amul Kool Café, Amul Kool Koko,Amul
Milk Drink
Kool Milk Shaake, Amul Kool Chocolate Milk,Nutramul Energy Drink

Health Drink Stamina Instant Energy Drink

Brown Beverage Nutramul Malted Milk Food

Amul Masti Dahi (fresh curd), Amul Masti Spiced Butter Milk,Amul
Curd Products
Lassee, Amul Flaavyo Yoghurt

Pure Ghee Amul Pure Ghee, Sagar Pure Ghee

Sweetened Condensed
Amul Mithaimate
Milk

Mithaee Range (Ethnic Amul Shrikhand, Amul Mithaee Gulab jamuns, Amul Basundi,Avsar
Sweets) Ladoos

Ice-cream Sundae Range, probiotic,,sugarfree and probiotic

Chocolate & Amul Milk Chocolate, Amul Fruit & Nut Chocolate, Amul Chocozoo,
Confectionery Amul Bindass, Amul Fundoo

40
 Amul Preferred Outlets:-

Amul has justified its undisputed leadership in foods business by creating 6000 Amul preferred
outlets in a record time which exclusively sell wide range of Amul products. This has been
possible due to strong brand equity and immense consumer support. Amul are now having
ambitious plans of creating 10,000 Amul parlours by 2012. Amul Parlours are successfully
operating in more than 1400 towns at high streets, residential areas, Railway Stations, Bus
Stations, Educational Institutions and a whole lot of Centers of Excellence. Here is a list of the
few of the Amul parlours operating across the various parts of the country.

1. Indian Institute of Management, Ahmedabad

2. New Delhi Railway Station PF6/7 & PF10/11

3. National Institute of Design

4. Infosys Technologies in Bangalore, Mysore & Pune

5. Wipro, Bangalore

6. Indian Institute of Management, Kolkata

7. Ahmedabad Airport

8. Koyambedu Bus Station, Tamilnadu

9. Savitha Dental College, Chennai

10. IIT, Guwahati

41
 “Amul Preferred Outlets are an excellent business opportunity for budding entrepreneurs.

To have a better idea please go through the following:

1. The criteria for selection of APOs would be –

a. Visibility – How prominent is the location of your shop?

b. Shop area: 100 – 300 sq. ft.

c. Good Business potential

d. Exclusive Amul outlet – no other products are to be sold

2. Renovation Work of the Shop to give it a standard look – would be done to meet
the design and specifications at your cost. The cost of renovation of a typical shop would
normally be between Rs. 60,000 to Rs. 1 lakh.

3. Branding- The cost of the signage’s fabrication and installation would be borne by GCMMF
Ltd.

4. Equipment- You would require the following equipment:

a. 1or 2 deep freezers (Can be purchased through Hamara Apna Deep Freezer Scheme )

b. 1 Refrigerator through Hamara Apna Refrigerator Scheme

c. 1 pizza oven

d. 1 Chest Milk Cooler for Pouch Milk

5. Security Deposit- You would be required to furnish an interest free refundable security
deposit of Rs. 25,000 to us locked for one year. The entire amount would be forfeited in case the
parlour closes down within the first year of operation.

42
6. Supplies- The delivery of products would be done through our wholesale dealers.

7. Agreement- An agreement bringing us together would be signed.

43
 CHAPTER5:Data Analysis

1. Do you stock Amul dairy products?

a.) Yes b.) No

Stockiest No. of respondents

Yes 90

No 10

Total sample size 100

Stockiest of amul products

100

80

60

40 Stockiest of amul products

20

0
Yes No

Interpretation: From the above graph we have concluded that 90% of the respondents have stock
of amul products.

44
 2. If no, why?

a) Absence of packaging date b) Low margin

c) No Replacement for leakage d) Low distribution

Reason No. of retailers

Absence of packaging date 15
Low margin 50
No replacement for leakage 30
Low distribution 5
Total sample size 100

Reason Behind Not take Amul products

60

50

40

30
Reason Behind Not take Amul
products
20

10

0
Absence of Low margin No replacement Low distribution
Packaging date for leakage

Interpretation:
From the above mentioned graph we can conclude that the remaining 10% retailers are not
keeping the “Amul” milk products because their major competitors in this Pune region
i.e.”Mauli” & “Katraj” is giving more margin to their retailers. And another reason for not
purchasing its products is not providing replacement facility

45
Q.3 which is the most preferable brand of packaged dairy products that you stock?

a) Amul b) Katraj c) Nestle d) Gokul

Product Brand Retailers Stock

Amul 45
Katraj 30
Nestle 15
Gokul 10
Total sample size 100

Retailers Stock
50

45

40

35

30

25
Retailers Stock
20

15

10

0
Amul Katraj Nestle Gokul

Interpretation:
From the above mentioned graph we can interpreted that major sample customers are
Preferring the “Amul” milk products due to the best packaged in comparison to their
Competitors and that is the main reason of major market segments

46
Q.4 If yes, what product does you preferred to store?
a.) Amul butter b) Planner c) Butter milk d) Dahi

e) Flavored milk f) Cheese g) Amul pro h) other

Table 4:
Amul Products Retailers Preferred
Amul Butter 70
Panner 40
Butter Milk 25
Dahi 30
Flavored Milk 30
Cheese 40
Amul pro 5
Other 10
Total Sample size 100

Retailers preferred
80
70
60
50
40
30
20 Retailers preferred
10
0

Interpretation: From the above mentioned graph we can interpret that customers mainly
preferred the “Amul Butter” and “Amul Cheese and Paneer” and it is only due to increasing
demand for the fast food in Indian market. However customers also prefer “Amul Milk” because
it produces much different flavored milk in comparison to their main competitors

47
Q.5 what is the source from where do you get Amul Products?
a) Distributor b) Other supplier
Table 5:
Sources Respondent
Distributers 95
Other Suppliers 5
Total sample size 100

Sources
100
90
80
70
60
50
Sources
40
30
20
10
0
Distributers Other Suppliers

Interpretation:
As per the graph we can conclude that majority of its products are selling to their final customers
by their distributors and remaining customers are directly purchasing from the market i.e. from
the supermarket and malls.

48
Q.6 Do you know which sales promotinal activities does the company undertake for Amul
products?

a.) Price off b) Free samples c) Credit Facility

d) Advertisement e) Coupons f) P-O-P Displays

Table 6:
Promotional Activity Respondent
Price off 5
Free sample 5
Credit Facility 10
Advertisement 40
Coupons 10
P_O_P Display 30
Total sample size 100

Promotional Activity
45
40
35
30
25
20
15
Promotional Activity
10
5
0

Interpretation: As per this graph Advertising are main focus while making advertising they are
more focusing on current affairs. And second focus is providing P-O-P display provided selected
retailers
49
Q.7. Are you satisfied with Amul distributer?

a) Yes b) No

Table 7:

Satisfaction No. of respondent

Yes 95
No 5
Total sample size 100

No. of respondent
100
90
80
70
60
50
No. of respondent
40
30
20
10
0
Yes No

Interpretation:
As per this graph 95 retailers are satisfied of distributers because they are following they are wise
supply chain management which are actually starting from midnight in two ships

50
Q.8. Are you interested in distribution of Amul dairy products?
a) Yes b) No

Interested in Distribution No. of respondent

Yes 90
No 10
Total sample size 100

No. of Respondent
100
90
80
70
60
50
No. of Respondent
40
30
20
10
0
Yes No

Interpretation of graph 8:
As per this graph 90 retailers are interested of distribution because the customer are Amul
products are more in Indian Market due to its quality & price of its products however it is also
Asia’s no. 1 Milk dairy.

51
Q.9. what is your expectation from Amul dairy products?

a) Margin b) Pakaging c) Availability

Retailer’s Expectation No. of Respondent

Margin 83
Pakaging 10
Availability 7
Total sample size 100

Retailer expectation
90
80
70
60
50
40 Retailer expectation
30
20
10
0
margin Pakaging Availability

Interpretation:
As per this graph Retailers are expecting more margins on its products because their competitors
are providing more margins.

52
10] Give you rating to following attributes of Amul dairy products?

Good Very Good Average Bad Very Bad

A. 30 40 10 5 0
B. Brand 30 50 8 2 0
Image
C. Availability 20 20 40 10 10
D. Packaging 30 20 30 10 10
E. Margin 10 5 20 45 20

50
45
40
35 Quality
30 Brand Image
25 Availability
20 Packaging
15 Margin
10
5
0
Good Very Good Average Bad Very Bad

Interpretation:
As per this graph Amul has provide good quality and Amul brand image is very good in dairy
market its provide average availability comparison other competitor, its packaging are good but
Amul has no provide a good margin to their retailers comparison other competitors

53
11) Do you sell pouch Milk?
Answer No of shops(20)
Yes 18
No 2

No
Yes

Interpretation
Out of 20 shops visited it was found that only 18 shops sell pouch milk 2 shops did not sell milk
at all

54
12) . Which Brands you have or you sell presently?
Brands Out of 20 shops

Gokul 12
Warana 9
Amul Only Tetra packs no
pouch milk

Amul
Gokul
Warana

Interpretation
As Gokul has a strong market hold in Vashi most of the retailer was selling it other than any
other brands including Amul

55
13) . Which Brands you have or you sell presently?
Brands Out of 20 shops

Gokul 12
Warana 9
Amul Only Tetra packs no
pouch milk

Amul
Gokul
Warana

Interpretation
As Gokul has a strong market hold in Vashi most of the retailer was selling it other than any
other brands including Amul

56
14) May I know your reason behind not interested in selling Amul Pouch Milk?
Answer No of shops(20)
Irregular supply 7
Not interested 5
Not allowed 1
No customers 1
Storage problem 2

Irregular Supply
Not interested
No customer
Storage problem
Not allowed

Interpretation
The main reason behind why many were not selling Amul Pouch Milk was found to be
irregularity in supply which was followed by not interested in sell it as they don’t sell Milk at all,
not allowed as, no customers & storage problem as the shop itself was very small

57
 15)TOP OF MIND BRAND FOR DIFFERENT AGE GROUPS
Brands <15 15-24 25-40 >40
SARAS 71% 61% 45% 45%
AMUL 29% 37% 12% 55%
LOTUS 0% 0% 10% 0%
Gorus 0% 2% 33% 0%

Top of Mind Brand For Different Age

Groups
80%
70%
60% SARAS
50%
AMUL
40%
30% LOTUS
20% Gorus
10%
0%
<15 15-24 25-40 >40

INTERPRETATION

 Respondent above 40 years consider Amul as their first choice.

 Saras leads as top of mind brands for Children and Youths.

58
 16)CUSTOMER SEE AT THE TIME OF PURCHASING

INFLUENCE NO. OF CONSUMER

PRICE 21
QUALITY 24
PACKAGING 18
GIFT 12
TASTE 25

30
24 25
25 21
20 18
15 12 Series1
10
5
0

INTERPRETATION:
From the above graph, it is being concluded that 25% of the Respondents prefer taste and 24% of
the Respondents prefer quality.

59
 17)SEASONAL CONSUMPTION OF BUTTER

SEASON CONSUMPTION
MONSOON 20
SUMMER 30
WINTER 50

MONSOON
20%
MONSOON
SUMMER
WINTER
50% WINTER

SUMMER
30%

INTERPRETATION
From the above chart we have concluded that 50% of the people prefer butter in Winter Season
and 30% of the people prefer butter in Summer Season.

60
18)PURCHASE OF BUTTER’S FREQUENCE

TIME FRQUENCE (%)

DAILY 7
WITHIN TWO TO 5 DAY 21
TWICE A WEEK 33
WEEKLY 39

45%
40%
35%
30%
25%
Series1
20% 39%
15% 33%
10% 21%
5% 7%
0%
DAILY WITHIN TWICE A WEEKLY
TWO TO WEEK
5 DAY

INTERPRETATION:
39 % of the respondents buy butter weekly and 33 % respondents buy butter
twice a week.

61
 Suggestions/Recommendations:
This industry is most competitive industry; there are large numbers of competitors in this field.
In such condition a small loop may create a big problem. The condition is made tougher by
Gowardhan, which is recently dominating in this industry, so only a detained study and fully
fledged effort can help in good sales to capture the market. Four things are necessary to improve
the sales in the sub city:
1. Service
2. Advertisement
3. Replacement policy
4. Proper distribution

1. Service
It is the critical factor in the success of any brand. There is no doubt that Amul services are good
but it needs little more improvement to completely capture the market.
2. Advertisement:
This is the most important factor that affects both the sales as well as the consumers’ attention.
Amul has to take aggressive advertising centered specially for its parlours and outlets.
3. Replacement policy
Amul is already blamed for poor replacement policy; it has to give certain kind of replacement
policy to make its product more acceptable to the parlours and outlets.
4. Distribution
The replenishment is average and often damaged material came on account of improper handling
by distributors due to this parlours find it difficult to retain the customer. The number of
distributor operating in an area also very low in number which also adds to improper distribution.

62
 Conclusion:

On complete analysis of the Questionnaire, it is concluded that Amul parlours has good
reputation in the market and it has 100% satisfied customer but lack proper distribution and
marketing. Very few distributors are in a particular area which not only is resulting in improper
distribution but also resulting in monopoly of these distributors. The position of both the parlours
and outlets can be uplifted in the market by sound marketing and proper distribution channel
which results in delivery on time.
Amul has a good reputation and name because of existence in the market for so many years
especially through the name of “Amul Butter”.
Within short span of time Amul has launched so many products which are still lacking
promotion and availability. Amul has customer driving power but is not able to retain customer
due to unavailability of the newer products.
It’s been great experience working with Amul and doing promotional activity for new products
of “Amul Pro”. The market survey has helped a lot in understanding forward integration of
Amul to link directly with the customer. It has helped me in not only knowing the business
potential of Amul as a brand through its sales in parlours and outlets but also knowing Amul in
leap and bound like knowing it’s pattern of distribution, depth of the Amul products, margin
associated with Amul products, business structure of Amul.

63
 Bibliography
1.Pro Care
2.Brand Daily
3. Top 10’s
4. Forbes

64
 CHAPTER 9: Web Sources:-

www. amul.com
www. scribd.com
www.4 shared.com
www.Wikipedia.com
www. Google.com / image search
http://www.nddb.org/partners/gcmmf.html
http://www.dudhsagardairy.co.in/milk-products.html

65
 APPENDIX

 Do you stock Amul dairy products?

a.) Yes b.) No

 If no, why?

a) Absence of packaging date b) Low margin

c) No Replacement for leakage d) Low distribution

which is the most preferable brand of packaged dairy products that you stock?

a) Amul b) Katraj c) Nestle d) Gokul

If yes, what product does you preferred to store?

a.) Amul butter b) Planner c) Butter milk d) Dahi

e) Flavored milk f) Cheese g) Amul pro h) other

what is the source from where do you get Amul Products?

a) Distributor b) Other supplier

Do you know which sales promotinal activities does the company undertake for Amul products?

a.) Price off b) Free samples c) Credit Facility

d) Advertisement e) Coupons f) P-O-P Displays

66
Are you satisfied with Amul distributer?

a) Yes b) No

Are you interested in distribution of Amul dairy products?

a) Yes b) No

what is your expectation from Amul dairy products?

a) Margin b) Pakaging c) Availability

Give you rating to following attributes of Amul dairy products?

Good Very Good Average Bad Very Bad

A. 30 40 10 5 0
B. Brand 30 50 8 2 0
Image
C. Availability 20 20 40 10 10
D. Packaging 30 20 30 10 10
E. Margin 10 5 20 45 20

Do you sell pouch Milk?

Answer No of shops(20)
Yes 18
No 2

67
Which Brands you have or you sell presently?
Brands Out of 20 shops

Gokul 12
Warana 9
Amul Only Tetra packs no
pouch milk

May I know your reason behind not interested in selling Amul Pouch Milk?
Answer No of shops(20)
Irregular supply 7
Not interested 5
Not allowed 1
No customers 1
Storage problem 2

15)TOP OF MIND BRAND FOR DIFFERENT AGE GROUPS

Brands <15 15-24 25-40 >40
SARAS 71% 61% 45% 45%
AMUL 29% 37% 12% 55%
LOTUS 0% 0% 10% 0%
Gorus 0% 2% 33% 0%

68
 CUSTOMER SEE AT THE TIME OF PURCHASING

INFLUENCE NO. OF CONSUMER

PRICE 21
QUALITY 24
PACKAGING 18
GIFT 12
TASTE 25

SEASONAL CONSUMPTION OB BUTTER

SEASON CONSUMPTION
MONSOON 20
SUMMER 30
WINTER 50

69
PURCHASE OF BUTTER’S FREQUENCE

TIME FRQUENCE (%)

DAILY 7
WITHIN TWO TO 5 DAY 21
TWICE A WEEK 33
WEEKLY 39

Area of Operation:
The areas of operation were the research was done are as follows:
Vashi Sectors 9, 9A, 10, 11, 12,15,28,29

At Approach:
•What type of shop it is? (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?

70