Вы находитесь на странице: 1из 70

EXECUTIVE SUMMARY

1
EXECUTIVE SUMMARY

This project report analysis the Distribution of Amul Milk Products. I have
analyzed the market share of Amul’s products among major players in the
market such as Mother Dairy, Paras, Parag etc.

In the second half of the project I have analyzed the consumers perception
regarding Amul’s products they are using.

The “utterrly Butterly Delicious Amul” is well known to every Indian. The
Mippet of Amul – a small girl has made it popular.
GCMMF, better known through its Amul brand, has been the latest entrant in
the national capitals dairy products.
GCMMF, has a distinct edge over existing competitors and expected new
entrants on several counts advantage in procurement of milk the key raw
material. Milk supply in India is largely controlled by the regional milk
cooperatives. GCMMF it self is the leading supplier of milk in western regions.
Besides procurement from other regional cooperatives is also easier for
GCMMF as compared to top other players.

 Competitive Pricing: GCMMF can produce milk at lower prices


as compared to competition; Amul has been launched at a
substantial price discount to main competitors. This has helped in
attaining a good volume grown in a short time span.

 Brand awareness is high: Amul brand has strong equity in milk


products and GCMMF has managed to leverage on this brand equity
and attained over 20% market share in Mumbai within a year of its

launch .

2
INTRODUCTION

3
INTRODUCTION
Ghaziabad is a holy city, "A city of temples". It has its own old and deep-
rooted culture, which in itself is unique and in same way the retailers of city
and also the market. It is hard to enter in their hearts but it is comparatively
easy to remain and Amul is a brand, which is serving the retailers of Ghaziabad
from a long time. Every product of Amul has its own place and value in hearts
of the consumers of Ghaziabad. Some of them dislike, but one thing, which
attracts every one, it the fact that only Amul is purely Indian brand, which is
catering them from long and with many quality products. Ghaziabad is a city,
which has its own place at world tourism map it is the city of "Sarnath". A
place where Lord Buddha delivered his first sermon of peace and ahimsa. It is
the city of "Ganga" The most religious Indian river, so every tourist who visits
India wants to visit Ghaziabad. To fulfill their requirements there are more than
100 hotels and lodges in Meerut.

This project work is a step towards finding out retailers views and
their likes & dislikes about distribution network of Amul. The another
objective of this survey is a comparative study of three other national and
multinational FMCG brands namely Dabur, Britannia & Presently population of
the city is near about 46 lacs. To find out the views of retailers, a retailer
survey was conducted, with a sample size of 150, the sample taken through
random sampling and it is tried to collect at least one opinion from every area
that will be easy to reach upto the conclusion.

The primary data of the survey is collected by personally contacting to


the retailers and related persons, whereas the secondary data is collected
mainly through Internet and the reports available in the area office of Amul.

The collected data is then, edited, tabulated and analysed and then it is
presented here in the form of graphs and charts, which are easy to understand
so that any reader can have minimum problems and can easy go through the
report.

4
COMPANY PROFILE

5
COMPANY PROFILE
Gujrat Cooperative Milk Marketing Federation is an India's largest food
product marketing organization. It is a state level apex body of milk
cooperative in Gujrat, which aims to provide remuneratiative returns to the
farmers and also serve the interest of consumer by providing quality product,
which are good value for money.

Members : 17 district cooperative milk producers union

Number of producer members : 3.37 million

Number of village societies : 18536

Total milk handling capacity : 14.85 million liters per day

Annual turnover (2016 -2017) : US$ 5.34 billion

Milk drying capacity : 860 metric tones per day.

Milk handling capacity : 24 millions liters per day.

Number of Producer Members 6,94,271

Number of Village Dairy Cooperative


1713
Societies

Total Milk Handling Capacity 5 Million liters per day

Milk Collection (Daily Average) 2.5 Million liters

Milk Drying Capacity 150 Mts per day

Whey Drying Capacity 60 Mts per day

Cattle Feed Manufacturing Capacity 2500 Mts per day

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

2004-05 6000 138

6
2005-06 7090 160

2006-07 8220 202

2007-08 10770 272

2008-09 13780 310

2009-10 16950 360

2010-11 21110 469

2011-12 24660 528

2012-13 28500 528

2013-14 34410 574

2014-15 41420 681

2015-16 48250 736

2016-17 57000 900

Order details :

Year of establishment : 1973

Name of founder : Mr. Verghese Kurien

Present managing director : Mr. R.S. Sodhi

Head Office :

Amul Dairy Road

P.B. No. 10

Anand, Gujarat.

Divisions : To operate effectively it has been divided in three divisions :

7
Amul Dairy Products :

It has further divided in two parts,

Amul dairy wet products :

It handles distribution and manufacturing of butter, cheese and sweets.

Amul Dairy dry Products :

It handles distribution and manufacturing of dry milk, infant foods, chocolates


and other dry products.

Amul ice cream Division :

It handles distribution and manufacturing of Ice creams.

Dhara Division :

It handles manufacturing and distribution of addible oils under the brand name
of "Dhara".

8
COMPANY OVER VIEW

Over six decades ago the life of a farmer in Kaira was very much
like that of farmers anywhere else in India. His income was derived
almost entirely from seasonal crops. Many poor farmers faced
starvation during off-seasons. Their income from milch buffaloes
was undependable. The milk marketing system was controlled by
contractors and middlemen. As milk is perishable, farmers were
compelled to sell their milk for whatever they were offered. Often
they had to sell cream and ghee at a throwaway price.

They were in general illiterate. But they could see that the
system under which contractors could buy their produce at a
low price and arrange to sell it at huge profits was just not
fair. This became more noticeable when the Government of
Bombay started the Bombay Milk Scheme in 1945. Milk had
to be transported 427 kilometers, from Anand to Bombay.
This could be done only if milk was pasteurized in Anand.

After preliminary trials, the Government of Bombay entered into an


agreement with Polsons Limited to supply milk from Anand to
Bombay on a regular basis. The arrangement was highly satisfactory
to all concerned – except the farmers. The Government found it
profitable; Polsons kept a good margin. Milk contractors took the
biggest cut. No one had taken the trouble to fix the price of milk to
be paid to the producers. Thus under the Bombay Milk Scheme the
farmers of Kaira District were no better off ever before. They were
still at the mercy of milk contractors. They had to sell their milk at a
price the contractors fixed. The discontent of the farmers grew. They
went in deputation to Sardar Patel, who had advocated farmers’ co-
operatives as early as 1942

9
Sardar Patel reiterated his advice that they should
market their milk through a co-operative society of
their own. This co-operative should have its own
pasteurization plant. His advice was that the farmers
should demand permission to set up such a co-
operative. If their demand was rejected, they should
refuse to sell their milk to middlemen.
Sardar Patel pointed out that in undertaking such a strike
there should be some losses to the farmers as they would not
be able to sell their milk for some time. If they were prepared
to put up with the loss, he was prepared to lead them. The
farmers’ deputation readily accepted his proposal.

Sardar then sent his trusted deputy, Mr. Morarjibhai Desai, to


Kaira District to organize milk co-operative – and a milk
strike if necessary. Mr. Desai held a meeting in Samarkha
village on January 4, 1946. It was resolved that milk
producers’ co-operative societies should be organized in each
village of Kaira District to collect milk from their member-
farmers. All the milk societies would federate into a Union
which would own milk processing facilities. The Government
should undertake to buy milk from the Union. If this wasn’t
done, the farmers would refuse to sell milk to any milk
contractor in Kaira District.

The Government turned down the demand. The farmers


called a ‘milk strike’. It lasted 15 days. Not a drop of milk
was sold to the milk merchants. No milk reached Bombay
from Anand, and the Bombay Milk Scheme almost collapsed.
After 15 days the milk commissioner of Bombay, an
Englishman, and his deputy visited Anand, assessed the
situation and accepted the farmers’ demand.

10
This marked the beginning of the Kaira District Co-operative
Milk Producers’ Union Limited, Anand. It was formally
registered on December 14, 1946. Its objective was to provide
proper marketing facilities for the milk producers of the
district. The Union began pasteurizing milk in June 1948, for
the Bombay Milk Scheme – just a handful of farmers in two
village co-operative societies producing about 250 liters a
day.

An assured market proved a great incentive to the milk


producers in the district. By the end of 1948, 432 farmers had
joined village societies, and the quantity of milk handled by
the Union had increased to 5000 liters a day. In the early
stages, rapid growth brought in its wake serious problems.
Their solution provided the stimulus for further growth. For
example, as the co-operative movement spread in the district,
it was found that the Bombay Milk Scheme could not absorb
the extra milk collected by the Union in winter, when
buffaloes yielded an average of 2.5 times their summer yield.
Thus by 1953, the farmer-members had no regular market for
the extra milk produced in winter. They were again forced to
sell a large surplus at low rate to middlemen.

The only remedy was to set up a plant to process the extra milk into products like butter
and milk powder. The logic of this step was readily accepted by the Government of
Bombay and the Government of India, except for a few doubting Thomases. The
government of India helped the Union to get financial help from UNICEF and assistance
from the Government of New Zealand under the Colombo Plan. Technical aid was
provided by F.A.O. A Rs.50 – lakh factory to process milk powder and butter was
blueprinted. Its foundation stone was laid by the then President of India the late Dr.
Rajendra Prasad on November 15, 1954. The project was completed by October 31,
1955, on which day the late Pandit Jawaharlal Nehru, the then Prime Minister of India,

11
declared it open. The new dairy provided a further fillip to the co-operative movement
among milk producers. The union was thus enabled to organize more village co-
operative societies and to handle more and more milk each year. This event also brought
a breakthrough in dairy technology as the products were made processing buffalo milk
for the first time in the world. Kaira Union introduced the brand “Amul” for marketing
its product range. The word “Amul” is derived from Sanskrit word ‘Amulya’ which
means ‘priceless’ or precious’. In the subsequent years Amul made cheese and baby food
on a large commercial scale again processing buffalo milk creating a history in the world.

1964 was the turning point in the history of dairy development


programme in India. Late Shri Lal Bahadur Shastri, the then Prime
Minister of India who visited Anand on 31s October for inauguration
of Amul’s Cattle Feed Plant, having spent a night with farmers of Kaira
and experiencing the success wished and expressed to Mr Kurien, then
the General Manager of Amul that replicating Amul model through out
our country will bring a great change in the socio-economic conditions
of the people. In order to bring this dream into reality, 1965 The
National Dairy Development Board (NDDB) was established at Anand
and by 1969-70 NDDB came out with the dairy development
programme for India popularly known as “Operation Flood” or “White
Revolution”. The Operation Flood programme, even today, stands to be
the largest dairy development programme ever drawn in the world.
This saw Amul as model and this model is often referred in the history
of White Revolution as “Anand Pattern”. Replication of “Anand
Pattern” has helped India to emerge as the largest milk producing
nation in the world.

12
Awards

NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY


AWARDS 1985-86.
Presented for Best Productivity Performance in Dairy
Development and Production in Co-operative sector by Shri G.S.
Dhillion, Union Minister of Agriculture to Amul Dairy, Kaira
District Co-operative Milk Producers Union Limited, Anand
(Gujarat) New Delhi 22nd April, 1987.

NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY


AWARDS 1986-87.
Sponsored by Ministry of Agriculture Presented for Best
Productivity Performance in Dairy Development - Product Plants
by Shri R. Venkataraman, President of India to Amul Dairy,
Kaira District Co-operative Milk Producers Union Limited,
Anand (Gujarat) New Delhi, 14th january, 1988.

NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY


AWARDS 1987-88.
Sponsored by Ministry of Agriculture Presented for Best
Productivity Performance in Dairy Development - Product Plants
by Shri Bhajan Lal, Union Minister of Agriculture to Amul Dairy,
Kaira District Co-operative Milk Producers Union Limited,
Anand (Gujarat) New Delhi, 31st Mar 1989.

INDIAN MERCHANTS' CHAMBER BOMBAY 1988


AWARD
for Outstanding Performance in the field of R&D of Food
Processing Industries Based on Agricultural Products awarded to
Kaira District Co-operative Milk Producers Union Limited,
Anand (Shri Mathurdas Vissanji Endowment) 1988.

13
NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY
AWARDS 1991-92.
Sponsored by Ministry of Agriculture Presented for Second Best
Productivity Performance in Dairy Development & Production in
Co-operative Sector (Product Plant) by Dr. Balram Jakhar, Union
Minister of Agriculture to Kaira District Co-operative Milk
Producers Union Ltd., Anand (Gujarat) New Delhi, 19th oct
1993.

NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY


AWARDS 1992-93.
Sponsored by Ministry of Food Processing Presented for Best
Productivity Performance in Dairy processing industries by Shri.
Tarun Gogoi Minister of State for Food processing industries to
Kaira District Co-operative Milk Producers Union Ltd. (Amul
dairy) Anand ( Gujarat) New Delhi 29th oct 1994

NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY


AWARDS 1993-94.
Sponsored by Ministry of Food Processing Industries, Presented
for Second Best Productivity Performance in Dairy Processing
Industries by Dr Shanker Dayal Sharma, Hon'ble President of
India to Kaira District Co-operative Milk Producers' Union Ltd.,
Anand, Gujarat, New Delhi, 30th Oct 1995.

NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY


AWARDS 1994-95.
Presented for Best Productivity Performance in Dairy Processing
Industries by Shri H.D. Deve Gowda, Hon'ble Prime Minister of
India to Kaira District Co-operative Milk Producers Union Ltd.,
Anand (gujarat) New Delhi, 23rd Nov 1996.

14
INDUSTRIAL GOOD HOUSE KEEPING CONTEST
GUJARAT STATE
organised by Gujarat Safety Council Loss - Prevention
Association of India Ltd., Factory Inspectorate, Gujarat State
1984 awarded to Kaira District Co-op. Milk Producers' Union
Ltd., Amul-Anand for their Commendable Performance in the
category of petrochemicals, cosmetics,electronics & food
processing industries.

NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY


AWARDS 1995-96.
Presented for Second Best Productivity Performance in Dairy
Processing Industries by Shri K.R. Narayanan, Hon'ble President
of India to Kaira District Co-operative Milk Producers' Union
Ltd., Anand (Gujarat) New Delhi, 26 Nov 1997.

NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY


AWARDS 1996-97.
Presented for Second Best Productivity Performance in Dairy
Processing Industry by Shri Sikander Bakht, Hon'ble Minister of
Industry to Kaira District Co-operative Milk Producers' Union
Ltd., Anand (Gujarat) New Delhi, 26th dec 1998.

BARODA PRODUCTIVITY COUNCIL - 1997-98.


Good House Keeping Contest - Kaira District Co-operative Milk
Producers' Union Ltd., 1997-98.

15
NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY
AWARDS 1998-99.
Presented for Second Best Productivity Performance in Dairy
Processing Industries by Shri Krishna Kant, Vice President of
India to Kaira District Co-operative Milk Producers' Union Ltd.,
Anand (Gujarat) New Delhi, 24th Aug 2000.

INDIAN CO-OPERATIVE CENTENARY CELEBRATION :


SHAKARI VIKAS RATNA AWARD – 2004
on the occasion of 100 years the Co-operative Movement in
Gujarat - we are proud to award "shakari vikas ratna award" to
Amul Dairy – Kheda District Co-operative Milk Producers'
Union Ltd, Anand, Gujarat State Co-operative Union,
Ahmedabad, 23rd Apr 2005.

NATIONAL ENERGY CONSERVATION AWARD 2009.


This commendation certificate is awarded to Kaira District Co-
operative Milk Producers Union Limited, Amul Dairy, Anand
(Gujarat) in appreciation of the efforts in Energy Conservation in
Dairy Sector by Ministry of Power, New Delhi, 14 Dec 2009.

CII NATIONAL AWARD FOR FOOD SAFETY 2013


Amul Dairy received CII National Award for Food Safety 2013 for its Outstanding
Performance in the Dairy Sector Manufacturing, Large Food Business Category.
Besides Global standards & Indian Regulations on Food Safety Systems, the model
includes assessment of Social compliance & Organisational Improvement
initiatives. The award was received on December3, 2013.

16
APEDA EXPORT AWARD 2011-12
Amul Dairy, Anand received APEDA Export Award for the year
2011-12 for its outstanding contribution in the export of Dairy
products across the globe. ‘Silver Trophy’ & a Citation was
presented at the 21 st Annual APEDA Award function in New
Delhi on 26 th Nov 2014

GOLDEN PEACOCK ECO-INNOVATION AWARD 2016


Amul Dairy, Anand received Golden Peacock Eco-Innovation Award for the year
2016 for “Bio-CNG Generation & Bottling Plant from Dairy Effluent”.

The Golden Peacock Awards are established by Golden Peacock Awards


Secretariat, the Institute of Directors, New Delhi, an apex society of 31 directors,
Chaired by Justice M .N. Venkatachaliah, former Chief Justice of Supreme Court
of India that recognize organizations who make excellence in the field of

17
environment conservation and adopt the innovative ideas in to practice and save
energy for the betterment of society.

Dairy Excellence Award 2015-16 National Level

Amul Dairy, Anand received Dairy Excellence Award for the year
2015-16 in recognition of ‘Management Excellence’ by Dairy
Cooperatives in the category of Large Size Dairy Cooperatives at an
Award function held at NDDB Campus, Anand, Gujarat on
26th September 2017.

18
COMPANY BACKGROUND
At the first light of Sun, villagers starts milking their cows and
buffaloes for their consumption, the surplus is either utilized in from of curd
and ghee. or. left for their calf's.

This is a common morning of every Indian village except Napad-


a small village near Anand, you can see, before the sunrise, a long queue of
people with their glooming utensils, outside the local cooperative.

The villagers of Napad know how to utilize their surplus of milk, they
know that the milk they are selling to the cooperative will form a part of the
huge stock of milk, which will be utilized by the Amul the milk udhyog which
is dedicated to utilization of every single drop of milk, which is collected from
million's of farmers across India.

From the last 50 years. This is a part of daily routine of villagers


not only of Napad, but it includes other 9-205 villages all over the Gujrat, from
where the milk is collected and then some part of it reaches to a factory run by
Anand Milk Union Ltd. and rest to 12 different processing units. covering the
whole state.

After pasteurization and processing, a variety of product, forming a


long range, is ready for distribution by a cooperative, which is unique in itself,
which can put its product under five lacs shops through out India, within 10
days.

Gujrat Cooperative Milk Marketing Federation (GCMMF) is


not only a name given to a distribution network of sale of more than Rs. 22185
crores, but it is more than that, it is a name given to a group of highly
dedicated people, who know very well to show their best, who knows that any
step taken by them will not only effect them or GCMMF, but it will effect
every common Indian.

19
For Indians Amul is just not a brand name, it is a part of their
lives, it flows in their life in form of butter, infant milk, delicious mithaees,
cheese, icereams and many other products.

Amul is not only an organization who's sales figure's have jumped


from 1000 tones a year to 25000 tones a year, within 50 year's of its launch, but
it is a name which and tactfully manages the fragmented resources of milk
though out India. The front end objective is to see that there should enough
milk to fulfill the demand of the market but the central objective is to ensure
that each individual, gets a fair price for there milk.

Gujrat Cooperative Milk Marketing Federation was established


with a vision to fulfill a divers set of objectives including these two to achieve
its goal GCMMF follows a "Three Tier" structure:

VILLAGE COOPERATIVES

MEMBER UNIONS

FEDERATION

Every year India produces 63 billion liters of Milk, with 15


billion liters available for commercial use. One fourth of this surplus is
procured by cooperative sector, private producers take 8 percent and bulk goes
to unorganized doodhwaala network.

GCMMF is established in 1973 with a aim of establishing a


marketing and distribution network that would each not only to every corner of
India and to every consumer, but also to facilitate him with quality products at
controlled prices.

For the maximum satisfaction of consumer's it is catering them


under two brand names AMUL and SAGAR. The largest milk marketing
cooperative of India was founded by Mr. V. Kurien. chairman National Dairy

20
Development Board (NDDB) and architect of India's "white revolution". It is
his brain, which created such a milestone, which is fulfilling the needs of not
only Indian markets but also of Nepal, Iraq and Saudi Arabia etc.

GCMMF is India's largest exporter of dairy products. It has been


awarded with APEDA award from Government of India for "Excellence In
Dairy Product Export"

From "Utterly Butterly Delicious" to "Real Milk Real


icecream", Amul's little girl has done an appreciative job to touch the
consumer's heart, mind and even soul. To Make everyone aware about the
product offered by Amul a highly effective marketing has been done.

A little thumb-sized girl, which was firstly seen in summer of 1967,


is now a part of everybody's mind. Now every done knows that every thing
which is "Utterly Butterly Delicious" is "Amul". The cute girl, who was in
mind of Sylvestar Dacunha and produced by Eustace Fernandez, is the
moppet that is truly cared and loved by every Indian housewife.

Ask any housewife she can tell you that how easily milk gets sour
and how much it is difficult to maintain it properly. So it can easily understood
that how much it is difficult for Amul to maintain the quality of its products.
The distribution of milk products is a tough job and for this purpose Amul has
a distribution web of more than 100 refrigerated vehicles, 39 C & F agents and
3700 distributors getting Amul cross to retailers. It is expensive, a typical
retailers pays Rs. 12000 every month just to keep the product cool.

Amul means "Priceless" in Sanskrit. The quality products offered


by Amul are really priceless. At the same time. Price is an important factor of
consideration for GCMMF also because Amul is the synonym of quality
product at considerable price and it is easy to say that GCMMF is very well
managing the price fluctuations and is constantly providing the consumers its
products at possible cheapest rates.

21
Milk Procurement:

Total milk procurement by our Member Unions during the year 2007-08 averaged 75.90
lakh kilograms (7.6 million kg) per day, representing a quantum growth of 12.9 per cent
over 67.25 lakh kilograms (6.7 million kg) per day achieved during 2006-07. The highest
procurement as usual was recorded during January 2008 at 98.81 lakh kilogram (9.9
million kg) per day. This increase in milk procurement is very impressive, against the
backdrop of 4.5 per cent growth registered during the previous year. During the peak
procurement period, we have successfully demonstrated our ability to process almost 10
million liters of milk per day (34th Annual report).
Sales:
During the year, sales of our Federation registered a quantum growth of 22.9 per cent to
reach Rs. 5255.41 crores (Rs. 52.55 billion). This is an extremely impressive growth,
when viewed from the perspective of 13.4 per cent growth that we had achieved in 2006-
07 and 29 per cent growth achieved in 2005-06. Our sales performance has been
consistent in recent years and we are confident of maintaining these excellent results in
the coming years, as well. In global terms, our turnover is $ 1.3 billion, at the existing
currency exchange rate (34th Annual report).

Export:
As you are aware, there was a ban on exports of milk powder during initial six months of
the year and hence our export of bulk milk powder was adversely affected. Instead of
that our export turnover has more than doubled during the year. We have recorded
turnover of Rs 125 crores this year against the last year’s turnover of Rs 60 crore.
However, we have been able to perform extremely well in exports of consumer packs
with very encouraging growth in ethnic Indian product like paneer.

DISTRIBUTION NETWORK:

Amalgamation of the distribution networks carried out in the previous year continued to
yield results in terms of vast improvement in distributor infrastructure including cold
rooms, computers, bank guarantees and deep freeze storages. a major initiative was taken
to enhance distribution network to smaller towns. About 1200 distributors in small towns

22
across India were added during this initiative. Today about 3000 Distributors ensure
availability of our products across India, whether it is in Leh or Lakshadweep, in Kutch
or Arunachal.

COOPERATIVE DEVELOPMENT PROGRAMME:

During the last eight years, our Member Unions are implementing Internal Consultant
Development Programme for developing self leadership among member producers and
thereby enabling them to manage their dairy business efficiently, leading to their overall
development.

Member Unions conducted workshops on Vision Mission Strategy for primary milk
producer members and Village Dairy Cooperatives. Facilitated by specially trained
consultants, 894 Village Dairy Cooperative Societies have conducted their Vision
Mission Strategy Workshops, prepared their Mission Statements and Business Plans for
the next five years. Till today total 5,322 village dairy societies have prepared their five
year Business plans.

With a mission of planting one tree per member, our Member Unions celebrated the 60th
year of Independence on 15th August, 2007 in a unique way. Our 18 lakh members have
planted one sapling each across 19 districts of Gujarat and demonstrated their
commitment towards preserving and contributing to the improvement of the
environment.

INFORMATION TECHNOLOGY INTEGRATION:

To strengthen business linkages with the business partners, GCMMF has enhanced its
“Amul e-Groupware System” by adding more features like e-mailing the invoices and
ledgers to business partners, announcing various schemes online, calendar facility etc.

“Video conferencing” is rapidly gaining in popularity, which provides business with the
ability to meet and to work with others over a distance. For real time communication,
better brainstorming, knowledge sharing and information gathering, we have installed
and implemented Video conferencing System at our Head Office, Zonal Offices and a
few Sales Offices.

23
ACCELERATING ON A TRAJECTORY OF PROSPERITY:

During the last 62 years, our Amul cooperative movement has served as an effective
catalyst in transforming the socio-economic landscape of rural India. In the process of
enhancing the nutritional and economic health of our nation, we have also ensured
prosperity for 2.7 million families, spread across 13000 villages in rural Gujarat.
Through creative marketing and innovative product launches, we have been able to
leverage effectively on the rising income levels and growing affluence among Indian
consumers. While ensuring easy availability of ‘value-for-money’ milk and dairy
products to all our citizens across the country, we have also been able to tap the growing
demand for value-added milk products which provide higher remuneration to our
farmers. Having successfully countered the competitive challenge posed by multinational
corporations, as well as the domestic private sector, we are well poised to steer the dairy
cooperative sector into an era of further prosperity and growth. While a glorious future
certainly beckons us, our ability to actually realize its promising potential, depends
entirely on the efficacy with which we are able to overcome the external and internal
challenges that we face today. Globalization is a phenomenon that we cannot wish away
and its politico-economic impact on our business needs to be clearly understood. We are
more vulnerable to global changes than ever before. Remote events such as adverse agro-
climatic conditions in Australia, diversion of maize-crop from feed to fuel in U.S.,
reduction in subsidies given to dairy farmers in EU, can deeply impact prevailing
conditions in the domestic Indian market. Enhanced competition and proliferation of
imported brands on our Indian retail shelves is a reality that we will have to embrace.
Innovative technologies, creative ideas and new products that emerge on the global
horizon are swiftly making a beeline for the Indian market.

In order to effectively counter such challenges, the entire dairy cooperative sector will
have to be even more adaptive, flexible and responsive to market realities. We need to be
more agile and fleet-footed in terms of adopting cutting-edge technologies and investing
in accelerated product innovation. We will also have to ensure that we continue keeping
our finger on the pulse of Indian consumers. As we have done in the past, we shall have
to continue incorporating the best emerging industry practices, from around the world,
into our key business processes. We need to explore new avenues of further leveraging

24
on information technology to streamline our business systems. To enhance our efficacy
and competitiveness, we need to be more pro-active at all stages of our value-chain.
Adoption of new breeding practices and focused approach towards increasing
productivity of our milch-animals should be the highest priority for all dairy
cooperatives. Effective use of latest inputs and best technology for enhancing milk
production will be of immense benefit to our farmers.

25
PRODUCT PROFILE

26
PRODUCT PROFILE

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


delectables!

27
28
29
30
OBJECTIVES

31
OBJECTIVES

Amul is the market leader of dairy products in Ghaziabad City Britannia and Nestle are
the major competitors in the market against Amul it is important to get an idea
regarding Amul’s position in Ghaziabad City. It would not help Amul to capitalize
on existing potential but also to formulate strategies and to fill the look holes and
gaps to fight the competitive situation

The objective of the study is:

 To determine the market share of Amul’s products.

 Milk brands available in the market and their average daily sales in Ghaziabad .
 To know that consumers approach to keep Amul milk.
 To know the purchase intention in their shop?
 To list the recommendation of retailers for a brand of Amul milk.

32
RESEARCH
METHODOLOGY

33
RESEARCH METHODOLOGY

According to Clifford Woody research comprises defining and redefining the problems,
formulating hypothesis or suggested solutions, collecting, organizations and evaluating
data, making deductions and reaching conclusion and at last carefully testing the
conclusions whether they fit the formulating hypothesis.
Research methodology is a procedure designed to the extent to which it is planned and
evaluated before conducting the inquiry and the extent to which the method for making
decisions is evaluated before conducting the inquiry and the extent to which the method
for making decisions is evaluated. The research methodology if scientifically developed
enables the research to establish with high degree of confidence, cause and effect
relationship between the research between the research activities and observed outcomes.

Research Type: Descriptive Research

Descriptive research can take many forms. Ethnographic and historical


researches for example are frequently considered variations of descriptive
research. Descriptive research involves describing and interpreting events,
conditions, or situations of the present.

Generally, findings and conclusions only apply to the sample or population


studied.

Descriptive research can use qualitative or quantitative methods to describe or


interpret a current event, condition, or situation. A case study on the process
used by a school district to select a new superintendent can be conducted and
would be considered a good example of qualitative descriptive research. On the
other hand, many current topics can be approached quantitatively. Data
collected via surveys, questionnaires, or test results can be analyzed using
statistical techniques and would also be considered quantitative descriptive
research.

34
ESEARCH DESIGN
A research design is the overall plan on programmed of research. It includes an outline of
what the investigator will do from writing the hypothesis and their operational
implications to the final analysis of data Market research projects are designed as either
(exploratory research or conclusive research) depending upon the objective of study.
The objective of the exploratory research is to seek new ideas and to discover new
relationship between different set factors in a way that will permit of specific hypothesis.
To find out there hypothesis, study of secondary sources of information, survey of
knowledge persons on case studies are conducted.
Conclusive research provides information which helps in decision making; such research
requires identifying cause and effecting relationships. This can be done by case study and
experimentation. The present marketing research is more less an exploratory research as
its objectives are aimed to find new ideas also the information required was obtained
through methods of exploratory researchOverall the research which was used as a
prototype for his market research analysis is:-
i. Define research problem.
ii. Review concepts and theories.
iii. Formulate hypothesis.
iv. Design research.
v. Collection of data.
vi. Analysis of data.
vii. Interpret and reports.

SAMPLE DESIGN
It is definite plan for obtaining a sample from a population dealing with any type of
flavored milk. The type of sampling used is random sampling used is random sampling
design (RSI). The respondent in the sample include flavored milk consumers and
retailers.

PREPARING THE RESEARCH DESIGN

35
The research problem having been formulated in clear terms, the researcher
will be required to prepare a research design, i.e. he will have state the
conceptual structure within which research would be conducted. The
preparation of such design facilities research to be as efficient as possible
yielding maximum information. In other words, the function of research design
is to provide for the collection of evidence with minimal expenditure of effort,
time and money. But how all these can be achieved depends mainly on the
research purpose. Research purposes may be grouped into four categories, viz,

i. Exploration
ii. Description
iii. Diagnosis, and
iv. Experimentation.

A fixable research design, which provides opportunity for the purpose of the research
study, is that of exploration. But when the purpose happens to be an accurate description
of a situation or of an association between variables, the suitable design will be one that
minimizes bias and maximizes the reliability of the data collected and analyzed.

There are several research designs, such as, experimental and non-experimental
hypothesis testing. Experimental designs can be either informal designs (such
as before-and-after without control, after only with control, before-and-after
with control) or formal designs (such as completely randomized block design,
Latin square design, simple and complex factorial designs), one of which the
researcher must select for his own project.

DETERMINING THE SAMPLE DESIGN

All the items under consideration in any field of inquiry constitute a ‘universe’ or
‘population’. A cockpit enumeration of all the items in ‘population’ is known as a census

36
inquiry when all the items are covered no element of chance is left and highest accuracy
is obtained. But in practice this both may be true. Even the slightest element of bias in
such an inquiry will get larger and larger as the no. of observation increases. Moreover,
there is no way of checking the element of bias or its extent except through a re-survey
or use of sample checks. Besides, this type of inquiry is not possible in practice in many
circumstances. For instance, blood testing is done only on sample basis. Hence, quite
often we select only few items from the universe for study purpose. The items so selected
constitute what is technically called a sample.

The researcher must decide the way of selecting a sample or what is popularly
known as the sample design. In other words, a sample design is a definite plan
determined before any data are actually for obtaining a sample from a given
population. Samples can either be probability samples or non-probability
samples. With probability samples each element has a known probability of
being included in the sample but in non-probability sampling the researcher is
not allowed to determine this probability. Probability samples are those based
on simple random sampling, stratified, cluster/area sampling whereas non-
probability samples are those based on convenience sampling, judgment
sampling and quota sampling techniques. A brief description of the sample
designs is as follows:

SAMPLING TECHNIQUE:-

This type of sampling is also known as chance sampling or probability


sampling where each and every item in the population has an equal chance of
inclusion in the samples and each and every item in the population has an equal
chance of inclusion in the samples, in case of finite universe, has the same
probability of being selected. For example, if we have to select a sample of 300
items from a universe of 15,000 items, then we can put the name for numbers
of all the 15,000 slips of paper and conduct a lottery. Using the random
numbers tables is another method of random sampling. To select the sample,

37
each item is assigned a number from 1 to 15,000. Then, 300 five digits random
numbers are selected from the table.

But in the case of a survey, data can be collected by any one or more of the
following ways:

a. By observation: - This method implies the collection of information by


way of investigator’s own observation, without interviewing the respondents.
The information obtained relates to what is currently happening and is not
complicated by either the past behavior or future intentions or attitudes of
respondents. This method is no doubt an expensive method and the information
provided by this method is also very limited. As such this method is not suitable
in inquiries where large samples are concerned.

b . By mailing or questionnaires : - The researcher and respondents do


not come in contact with each other if this method of survey is adopted.
Questionnaires are mailed to the respondents with a request to return after
completing the same. It is most extensively used in various economic and
business surveys. Before applying this method, usually a Pilot Study for testing
the questionnaire is conducted which reveals the weaknesses? If any, of the
questionnaire.
TYPE OF UNIVERSE :

This is the first step in developing any sample design is to clearly define the
set of objects, technically called the universe to be studied. Here finite uni-
verse has been used for the research purpose.

SAMPLING UNIT :
A decision has to be taken concerning a sampling unit before selecting the no. of
samples. It may be geographical as well as individual. Here Ghaziabad ‘city’has been
taken as a geographical unit and retailers as an individual unit.

38
SOURCE LIST :

It is also known as sampling frame from which sample is to be drawn. No


sampling frame was available there except a map of territories. We had
generated an idea regarding of sample units on the basis of map that which
areas would be essential for the survey. Judgment sampling was taken for this
purpose.

SIZE OF SAMPLE :

This refers the number of items (outlets) to be selected from the finite universe
to constitute a sample size. The survey was conducted of 250 outlets.

NATURE OF DATA:

In this project report, the data is collected through primary data


source.

DATA COLLECTION

TYPE OF DATA METHOD ADOPTED MODE OF


COLLECTION COMMUNICATION
PRIMARY QUSTIONNAIRE PERSONAL
INTERVIEW

39
DATA ANALYSIS
&
INTERPRETATION

40
DATA ANALYSIS & INTERPRETATION
Sizes of butter consumer prefer

200ml 8%
500ml 13%
50ml 5%
100ml 74%

Pack Size of Butter

500ml 50ml
13% 5%

200ml
8%

100ml
74%

Fig: 1.1 Sizes of butter

41
Parag 10%
Others 8%
Amul 72%
Britania 8%
Mother Dairy 2%

Fig: 1.2- Market Share of Butter

42
Parag 8%
Others 2%
Amul 36%
Mother Dairy 10%
Paras 24%
Every Day 20%

Fig:1.3- Consumer choice for Ghee

43
You 6%
Others 6%
Family 77%
Advertisement 11%

Fig: 1.4- Purchase Decision

44
Yes 89%
No 11%

Fig: 1.5- Customers Satisfaction for Amul’s Products

45
Yes 88%
No 12%

Fig:1.6- Logo Awareness

46
Amul 36%
Mothers Dairy 40%
Britania 16%
Others 8%

Fig:1.7- Consumer’s choice

Fig: 1.7- consumer’s Choice for Cheese

47
Retailers in the area

RAJ NAGAR

Shop Name Contact Person Tel No.

Mohit Provision Store Mr. Vinod


Kavita Sweet & Restarant Mr. Sanjay Goyal 2786002
Satyam Gen Store Mr. Punit
Gupta medical Store Mr. Narendra 2786268
Harsh Medical Store Mr. Narendra
Jaya Provision Mr. Vishna
Narayana Medicos Mr. Kuldeep
Bharadwaj Medicos Mr. Rakesh
Subham Gen Store Mr. Sanjeev
Bansal Provision Mr. Ansul
Durga Provision Store Mr. Kamal
Shivam Provision Mr. Shivom
Bhagwatio Provision Mr. Mukesh
Aavid Provision Mrs. Khusbu
Tyagi Kirana Store Mr. Gaurav

48
SHASTRI NAGAR

Shop Name Contact Person Tel No.


Guddy Gen & Confectionary Mr. Gudu
Blue Moon Departmental Store Mr. V.P. Tiwari
Laxmi Provision Store Mr. Rohit
Basno Department Store Mr. P.K. Sharma
Dadmaa Provision Store Mr. N.P. Singh
Chaudhary Provision Store Mr. Sispal
Goyal Medical Store Mr. Anil
Saroj Medical Store Mr. Anurag Singhal 2703858
Garg Provision Store Mr. Garg
Masterji Department Store Mr. Tajpal 2782026
Akratimedical Store Mr. Mukesh Dubey 2702012/2228
Rahulmisthan Bhandar Mr. Ruhul 2781266
Manjary Confectonary
Suraj Store Mr. Neeraj 2702288
Mahak Bhoj Mr. Prem 2702288
Sanjeevam Medicos Mr. A. Gaur
Subham Sweets Mr. Subham
Cyber Net Mr. Ritis
Ambey Medical Store Mr. Sunil

49
KAVI NAGAR

SHOP NAME CONTACT PERSON TEL NO.


Anupam Gen Store Mr. B.P. Gupta 2703238
Om Medical Store Mr. Subash Goyal
Jain Sweets Mr. Anuj Jain 2751577
C.P. Jush Corner Mr. Sudhir 2738260
Dinesh Goyal Store Mr. Dinesh Goyal
Shree Shiv Shakti Store Mr. S.K. Jain
Chauhan Store MR. Chauhan 2703508
Goyal Confectioners Mr. Satish Goyal 2756273
Laxmi Medicos Mr. Ravi
Amba Chemist Mr. Bhavanesh Chopra 2753975
N. K. Provision Store Mr. Narendra
Pamcat Confectioners Mr. Pankaj
Fanta Store Mr. Pankaj
Malhotra Store Mr. Rajkumar
Jain Provision Store Mr. Gaurav Jain
Gupta Provision Store Mr. Naresh Gupta 2722715
Anurag Medicos Mr. Anurag
Satyam I way
Om Medical Store Mr. Navin
Jain Sweets Mr. Jain 2782287

GOVINDPURAM

Contact Person Tel No.


Shop Name
Kanohya Gen. Store Mr. Manmohan
Shri Nath Gen & Provision Mr. P.G. Bhati
Shiv Shakti Provision Mr. Kamal

50
Sharma Provision Store Mr. Lokesh 2769112
Shivam Provision Store Mr. Shivem
Rohit provision Store Mr. Santay
Satyam Confectioners Mr. Avadesh
Quality Point Mr Rajeev 2767129
Shivam Provision Mr. Hariom
Durga Provision Mr. Satish
Rana Medical Store Mr. B.K. Rana
Krishna Provision Mr. Mohit 2769136
Saraswati Provision Mr. S.P. Salanki 2769178
Janta Medicos Mr. Pravendra Singh
Shivam Store Mr. Manish Agrwal 2768233
Mottal provision Store Mr. Gaurav, Rahul 2767855
Manoj Medicos Mr. Manoj
Om Hans Choices & Gift Mr. Rajeev Kumar
Agrwal Sweets Mr. Vivek 2768270

51
Amul 37%
Nestle Lectogin 63%

Fig:2.1- Market Share Of Amul Spray In %age

52
SALES OF BUTTER BY TERRITORY(KG)

TERRITORIES AMUL BUTTER PARAG


BUTTER
159 0
RAKESH NAGAR
92 30
AMBEDKAR ROAD MKT
KAVI NAGAR 732 72
OLD AND NEWGANDHI MKT 355 0
GOVINDPURAM 190.5 0
RAJ NAGAR 678 0
PATEL NAGAR 500 22
SHASTRI NAGAR 270 2
MALIWARA 350 100
BAJARIA CHOKI 20.5 0
DAULATPURA 12 60
NAVYUG MKT 259 0
HARSAN SAXENA MKT 8 0
TOTAL 3850 306

Amul Butter 93%


Parag Butter 7%

53
fig: 2.2 Sales of Butter by Territory

54
MARKET SHARE OF AMUL BUTTER IN
%AGE

TERRITORIES AMUL BUTTER PARAG BUTTER

3.83 0
RAKESH MARG
2.21 .72
AMBEDKAR ROAD MKT
KAVI NAGAR 17.76 1.80
OLD AND NEWGANDHI MKT 8.29 0
GOVINDPURAM 2.56 0
RAJ NAGAR 16.32 0
PATEL NAGAR 12.03 1.01
SHASTRI NAGAR 11.31 0.05
MALIWARA 8.36 2.21
BAJARIA CHOKI 0.96 0
DAULATPURA 0.33 1.23
NAVYUG MKT 6.23 0
HARSAN SAXENA MKT 0.19 0
TOTAL 92.58 7.22

Amul Butter 93%


Parag Butter 7%

55
Fig:2.3- Market Share of Amul Butter

56
FINDING AND ANALYSIS

57
FINDING AND ANALYSIS

1. The company manufactures its product in advance and they stocking


to the market after two or three months, so the spoilage of the
chances of product becomes higher.

2. The company doesn’t provide facility of replacement of spoiled


products to its retailers or distributors.

3. There is discrimination in the prices of distributors or the prices at


which retailers directly purchase from the market (Distributors
prices are higher than market).

4. There is no advertisement from the company like dangleas, posters,


hoarding, and Neon sign boards, glow sign boards.

5. The company is not giving any motivational incentive to the retailers.

6. There is unfrequent visit from the company representative to the


retailers.

7. The company has a monopoly in the butter market and they enjoy
that.

8. The company has captured 72% market in the butter segment.

9. The company distributors do all their business in cash only.

58
SUGGESTIONS
&
RECOMMENDATIONS

59
SUGGESTIONS

1. The company should execute butter after manufacturing should reach to


the Retailers within one month.
2. The company should make policy for replacement of products.
3. The company should make new distribution that does fair dealing,
optimum Allocation of territories to the distributors.
4. New avenues of advertising should be launched like glow sign boards
etc.
5. Company offer free gifts or incentives to the retailers to increase their
motivational level.
6. New appointments should be done for increasing visits at market places.
7. Prices should be kept in comparison to competitor’s products so that the
company can earn more profit by selling large volumes.
8. In today’s scenario the credit plays an important role in business sales.
So it should do its dealing in credit also.
9. The company should go for organize retailing.
10. The company should call a meeting of retailers time to time.
11. The company should participate in social activities if possible.
12. Amul must launch promotional schemes for customers as well to
increase sales as well as to be in news.
13. Advertisement & sales promotion should be conducted by the company so that
the consumers can be more attentive to the product.If it is possible than sales can
be increased.
14. The area of distributor should be defined clearly so that they can work in their
area with more potential.
15. The salesman should be qualified and very much responsible for their work
because if they cannot have attractive personality how can they convince about
the features of the products effectively and efficiently.

60
16. Amul should allot some more distributors because the market has more potential
but due to lack of distribution facility some retailers are not satisfied by the
supply of the product.
17. The company should make direct communication with the retailers so that
retailers can give the feedback to the company about the market to the company.
And on the basis of that company can take the effective decision in time.
18. The company should conduct the regular survey of the particular product so that
they can know the taste and desires of the consumers and the strategy of the
competitors.
19. The company should cover the retailers who are far from the main road or market
place, now days it is not covered by the salesman or the staffs.It can grow up the
market share, because the competitors cover it very well.

20. The existing provisions of replacement may be reviewed with a view to


reducing risk zone of the retailers. However while doing so it should
also be maintained that any concessions do not promote lackadaisical
attitude.

21. To have the best results of the sales network company may consider of
organizing workshops to impart knowledge of latest technologies to it's
sales personals.

Company should also consider of frequent market survey for both, to have the
feedback as also the market report.

61
CONCLUSION

62
CONCLUSION

1. All products of Amul are easily at every outlets in Ghaziabad. In the


survey it is found that 99% of retailers have Amul's products.

2. Price is comparatively low rather than other brands like Dabur, Nestle &
Britannia. 70% retailers in favour of this statement.

3. Margin provided by company to the retailers are relatively less than


other brands.

4. In case of demand Amul gets the lower position than Nestle but demand
of Amul & Britannia are same according to data collected.

5. Packaging is not upto the mark as the graph shows, only 2.6% retailers
are in favour of Amul's packaging on the other hand Nestle got higher
percentages (56%).

6. Amul has not various range in compare to the Britannia & Nestle.
Percentages of Amul & Britannia are 6.6% & 66% respectively.

7. Schemes for promotional activity of Amul has comparatively lower than


Britannia. Only 4% retailers are in favour of Amul but Britannia scores
60.6%.

8. Advertising is more or less same of all brands.

9. Credit terms is also equally likely to others.

10. Salesman behaviour of Amul is better than all other brands.

11. Ordering & delivery timing is upto the mark.

12. Replacement policy of Amul & other Brands are upto at average level.

13. Also there were complains that distributor many times do not deliver all
the items which are ordered but sometimes delivers the items which are
not even ordered.

63
LIMITATIONS

64
LIMITATIONS

There were some limitations in process of research :-

 The population of Ghaziabad city is near about 46 lacs but data collected
only from 150 outlets. This sample size is small to ensure highly
accurate results.

 The time taken for the project work, only four weeks, is very less and, so
small number of samples was considered.

 Retailers are unable to disclose some information so these information


collected by common sense.

 Some of them are very unco-operative nature, so I can't claim for perfection
of information given by them.

 In some case biasedness is exiting in the market due to some personnel


reasons.

65
BIBLIOGRAPHY

66
BIBLIOGRAPHY
BOOKS:

 Majumdar,Ramanuj` :Marketing Research”:Sahitya Bhawan Publication,

(2015)

 Gupta and Pal ; “Consumer Behaviour”.Pargati Prakashan,(2014)

 Philip Kotler ; “Marketing Management” :Prakash Prakashan,(2016)

JOURNALS/ MAGAZINES:
 Indian Journal of Marketing – Volume xxxiv (Oct 2013)
 Indian Journal of Management – Volume xxxv (March 2014)
 Survey of Indian Industries – The Hindu (2015)

WEB SITES:
 www.amul.com
 www.paras.com

SEARCH ENGINES :
 www.google.com

 www.yahoo.com

67
QUESTIONNAIRE

68
QUESTIONNAIRE

Q.1 What all dairy products does your family consume in daily life?

a. Butter ( ) b. ghee ( ) c. cheese ( ) d. Dairy whitener ( ) e. Chocolate ( ) f. ice-


cream g. other ……………….

Q .2 Who decides the purchase of these products in your family?

a. You ( ) b. Family ( ) c. Friends ( ) d. Advertisements ( )

Q.3 Your idea behind choosing a brand as your food item ( mark the order of preference).

a. Cost ( ) b. Nutrition ( ) c. Hygiene ( ) d. Company image ( )

Q .2 Which brand butter do you use?

a. Amul ( ) b. Parag ( ) c. Mother dairy ( ) d. Britannia. ( ) e. Nutrilite f. Home


Made ( )

Q.5 Which brand Dairy whitener do you use?

a. Amulaya ( ) b. Everyday ( ) c. Milkman ( ) d. Other, specify………….

Q.6 Which brand ghee do you use?

a. Amul pure ghee ( ) b. Anik ( ) c. Everyday ( ) d. Mother dairy ( )


e. Parag ( ) f. Other, specify …………….

69
Q.7 Which brand vegetable oil do you use?

a. Dhara ( ) b. Manik ( ) c. Fortune ( ) d. Sweekar ( ) e. Saffola ( )

f. Other, specify……………….

Q.8 Which brand cheese do you use ?

a. Lebon ( ) b. Amul ( ) c.Britannia ( ) d. Other ( )

Q.9 Which pack size of butter do you normally purchase?


a. 50ml () b. 100ml ( ) c. 200ml () d. 500ml ( )

Q.10 Can you recall Amul’s logo?

a. Yes ( ) b. no ( )

Name ……………………………...
Age ………………………………
Gender …………………………….
Family Income……………………..
Your Retailer’s Name and Address

……………………………………

70