Вы находитесь на странице: 1из 45

INTRODUCTION-

INDUSTRY

India has the highest livestock population in the world with 50% of the buffaloes and 20% of the
world’s cattle population, most of which are milch cows and milch buffaloes. India’s dairy industry
is considered as one of the most successful development programmes in the post-Independence
period.
In the year 2006-07the total milk production in the country was over 94.6 million tonnes with a
per capita availability of 229 gms per day. The industry had been recording an annual growth of
4% during the period 1993-2005, which is almost 3 times the average growth rate of the dairy
industry in the world. Milk processing in India is around 35%, of which the organized dairy
industry account for 13% of the milk produced, while the rest of the milk is either consumed at
farm level, or sold as fresh, non-pasteurized milk through unorganized channels.
Dairy Cooperatives account for the major share of processed liquid milk marketed in the India.
Milk is processed and marketed by 170 Milk Producers’ Cooperative Unions, which federate into
15 State Cooperative Milk Marketing Federations. Over the years, several brands have been
created by cooperatives like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan).
Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur).
Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and
Tamil Nadu are the milk surplus states in India. The manufacturing of milk products is obviously
high in these milk surplus States. Exports of dairy products have been growing at the rate of 25%

1
per annum in the terms of quantity terms and 28% in terms of value since 2001. Significant
investment opportunities exist for the manufacturing of value-added milk products like milk
powder, packaged milk, butter, ghee, cheese and ready-to-drink milk products.
India has emerged as the largest milk producing country in the world with present level of annual
milk production estimated as 94.5 million tonnes. We expect a production level of 135 million
tonnes by the year 2015. India has a large livestock population base constituting 278 million
livestock including 180.5 million cattle, 82.8 million buffaloes, 4 million sheep and 9.2 million
goats. The livestock population is projected to increase to 322 million by the year 2015. The large
livestock population is raised primarily on crop residues and grazing in the common property
including basement. The forest area, which was a major source of grazing, is no longer available
to livestock breeders especially landless people. As a consequence, the available feed resources
fall short of the nutritional requirement. The shortfall is estimated as 59.9 million tonnes for the
green fodder and 19.9 million tonnes for dry fodder. This shortfall is likely to increase by 2015 to
63.5 million tonnes of green fodder and 23.56 million tonnes of dry fodder.
The landless people are, therefore, likely to face severe shortage of resources to raise cattle and
other species of livestock. There is a real danger that in the absence of resources to maintain their
stock, these under-privilege rural people may give up livestock farming. This could be a serious
setback to lakhs of rural families who derive income as well as employment opportunities from
livestock sector.
India prepares to tackle the international market following Japan, where milk consumption today,
has more than trebled to 70 kg per capita from a mere 20 kg in the 'sixties - the consumption of
dairy products in other Asian 'tiger' nations is also growing. As a consequence - creating excellent
export opportunities for India, as these nations are deficient in milk by at least 3 million tonnes per
year. India, with some 27 per cent of Asia's population, accounts for more than half of the milk
output with enough growth potential to explore foreign markets. In anticipation of the export
opportunities and in view of the post GATT scenario, India is gearing up to tackle the demands of
the international market.
Indian companies are preparing themselves to meet international standards and other non-tariff
barriers. Planners are taking measures to meet the sanitary and phyto-sanitary specifications -
prescribed by Office International des Epizooties (OIE) under the auspices of the World Trade

2
Organization (WTO) -, which range from the quality assurance of processed dairy products to the
health status of livestock.
PROCESSED DAIRY PRODUCTS
CHEESE

The organized cheese market including its variants like processed cheese, mozzarella, cheese spreads,
flavored and spiced cheese, is valued at around Rs 4.5 billion. Processed cheese at 60% of the overall
market is Rs 2.7 billion. The next most popular variant is cheese spread claiming a share of around 30% of
the total processed cheese market. The market is primarily an urban phenomenon and is known to be
growing at around 15%. The market for cheese cubes, slices and tins is growing. The flavored cheese
segment has been constantly declining.

Gujarat Cooperative Milk Marketing Federation (GCMF) with the Amul brand continues to be the
main operator in the branded cheese market in India. It pioneered the market for processed,
branded cheese. What GCMF did was to develop the technology to make cheese from buffalo
milk. World over it is made from cow milk.
Britannia Industries joined the fray in the cheese market in mid-1990s through an arrangement
with Dynamix Dairy Industries (DDI). It was set up in 1995 by a consortium of five companies -
Conwood, Indo Saigon, Hiranandani, ETA and Metro. DDI has capacity to process 500,000 litres
of milk per day with an estimated investment of Rs 1500 mn. The plant designed by Valio of
Finland is run on technology tie-up with Schreiber Foods of the US. Schreiber is the largest
supplier of processed cheese to fast food chains in the US with expertise in sliced cheese.
Britannia's cheese is sold in tins in the form of cubes, and in individually wrapped slices in packs
of fives and tens. The slices are being promoted more aggressively worldwide, and these account
for a bulk of cheese consumption. These are gaining acceptance in India as well. Amul followed
Britannia in launching slices. Its cheese spread in the form of paste has been well received in the
market.
Britannia has been concentrating on metros and large cities. The network covers some 60,000 dairy
outlets equipped with cold cabinets, refrigerators and insulated boxes. Amul covers some 500,000
retail outlets.
French cheese major, Fromageries Bel, a 10-bn French franc outfit, has entered the Indian market
with La Vache Kirit or what is worldwide known as The Laughing Cow. Its target market to start

3
with were the two metros of Delhi and Mumbai with distribution entrusted to Delhi-based Rai &
Sons, distributors for premium food brands, Ferraro Rocher and Ricola. The Bel product will be
produced at Bel's facility in Poland exclusively for the Indian market. La Vache Kirit is a
guaranteed vegetarian product. Fromageries Bel is expected to widen its product portfolio by
launching laughing Kirit (creamy cheese in cube form) and Babybel (semi-hard with a wax coating
appropriate for sandwiches).
Laughing Cow was expected to be followed by an Austrian cheese brand, Happy Cow (owned by
Woerle). Woerle has entered into a licensing arrangement with Veekay Foods & Beverages in
Mumbai. Nestle and Kraft have been planning to make foray in the Indian market.
Foreign brands in India include: Probolene, Colby, Mozzarella and Parmessan from Italy, Cheddar
from Dutch, Gryueve. The new entrants will have to compete with well-established players such
as Amul, Britannia's Milkman and Dabur’s Le Bon, enjoying substantial market shares in the
overall Indian cheese market. The US-based Philip Morris, which brought in its Kraft cheese brand
earlier, has gained a significant presence in the market. The rest of the market is spread among
Verka, Nandini, Vijaya and Vadilal.
Dabur had forayed into the dairy products market through its joint venture company, Dabon
International, a 50:50 joint venture between Dabur India and French dairy products major,
Bongrain. The company claimed a product range of 20 different varieties of cheese under LeBon
brand. Dabon has a manufacturing facility at Noida with an installed capacity of 12,000 tonnes per
annum. Incidentally, the government had, in a move in late April 2001, barred Dabon from
marketing flavoured milk and processed cheese in the country.
Dabur was to launch speciality cheese like blue cheese and hard cheese. It had plans to developing
cold chains at the distributor and retail levels in the state capitals and major towns in order to
increase penetration levels.
The demand for cheese is projected to grow from about Rs. 4.50 bn in 2003-04 to Rs. 6.00 bn in
2006-07 and to over Rs 11.00 bn by the terminal year of the projection period, 2014-15. Cheese is
becoming a popular item in the menu of all relatively affluent families. Slowly but surely, it will
penetrate into the rural markets.

4
LEAD PLAYERS
The lead players in processed milk products in the market are as follows:
Amul, Britannia, and others include Vijaya, Verka and Vadilal. In the category of cheese Amul,
Britannia Dabur (Le Bon) are the leading players including others like Verka, Nandini, Vijaya and
Vadilal
DAIRY WHITENERS
About 15% of the total milk output in India is estimated to be processed in the organized dairy.
The industry has maintained a high growth profile, especially in the wake of the Operation Flood,
colloquially also termed as White Revolution, initiated in early 1980s. Today, India produces over
85 mn tonnes of milk annually. The total milk economy is estimated at Rs 1300 billion in terms of
value.
The market for dairy whiteners (commercially know as beverage milk powders and condensed
milk) and creamers is around Rs 3,000 mn. Apart from MNCs like Nestle and companies like
Britannia, the Indian enterprises have also made perceptible progress. Names like Amul, Sapan,
Vijaya, Mohan, Parag and several others have been seen in the marketplace with their whiteners.
These are available mostly in pouches, tetrapacks, and in the near future, may be in miniportion
cups.
Aseptically packed creamer in miniportions is widely used in the West, but has yet to enter the
Indian market in any substantial way. Amul did make a beginning with its whitener pouches and
has emerged as a leader with a market share of 45% followed by Nestle’s 23%. Aseptically packed
creamer involves techniques to impart a longer shelf life to the product. It is packed in small cups
ready to be poured into a cup of tea or coffee. Creamer is fresh milk with increased fat content
(upto 12%) and is aseptically packed after undergoing Ultra Heat Treatment (UHT) at 1400 C. Its
introduction will affect the existing whitener market as a natural milk product with a longer shelf
life.
Britannia forayed into the dairy business as a diversification move in 1997. Its first offering,
Milkman Butter, just managed a 5% share. The dairy business claims a 10% share in Britannia's
topline. The company had drawn up plans to atleast capture 5% of the overall fresh milk market
estimated by Britannia at Rs 420 bn. Extending the product portfolio beyond cheese, dairy

5
whitener and butter, Britannia entered the fresh milk segment in 2001. In the dairy whitener, the
company has managed to capture a significant market share.
Nestle India with its Everyday dairy whitener has established its brand well. It has also entered
into the market with its Nestle Pure Milk and, of course, a product in its niche area, Nescafe Frappe.
Having earlier launched UHT milk, Nestle is concentrating on expanding its reach. Its plans
covered Rs 800 mn investment in its Moga (Punjab) facility. New product segments like butter,
yoghurt and flavoured milk were also on the cards.
While Sapan characterises it as Dairy Special (instant milk mix for tea and coffee), Vijaya is the
only UHT processed milk homogenised brand sold in the market in 200 ml and one litre tetrapack.
All the rest, Amulya, Meadow, Mohan, Parag and Shweta dairy whiteners are in the form of
powders. Mohan also markets a non-dairy whitener alongside its dairy type product.
Since India is a major consumer of tea and coffee, it would be a very large market if only the price
was not a constraint. In addition to domestic consumption, the whiteners/creamers find a high level
of institutional acceptance, especially by railways, hotels and restaurants, airlines, hospitals and
nursing homes and corporate offices. The institutional market can be tapped first, in particular, the
airlines, railways and hotels. The penetration can then be extended to the household sector. The
potential for exports, especially to neighboring countries and the countries in the Middle East, the
Gulf and Africa, also exist and could be exploited.

AMUL – COMPANY’S PROFILE

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat. It is formed in 1948,
it is a brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation
Ltd. (GCMMF), which today is jointly owned by 3.6 million milk producers in Gujarat.
Amul spurred India's White Revolution, which made the country the world's largest producer of
milk and milk products.
The white revolution was spearheaded by Tribhuvandas Patel under the guidance of Sardar Patel
and Verghese Kurien. As a result, Kaira District Milk Union Limited was born in 1946.
Tribhuvandas became the founding chairman of the organization and led it until his death. He hired
Dr. Kurien three years after the white revolution. He convinced Dr. Kurien to stay and help with
the mission.

6
Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited with
the success of Amul.[5] Amul has become the largest food brand in India and has ventured into
markets overseas. Amul products are now available in more than 60 countries.

HISTORY
Amul-cooperative registered on 14 December 1946 as a response to the exploitation of marginal
milk producers by traders or agents of the only existing dairy, the Polson dairy, in the small city
distances to deliver milk, which often went sour in summer, to Polson. The prices of milk were
arbitrarily determined. The government had given monopoly rights to Polson to collect milk from
Kaira and supply it to Bombay city.
Angered by the unfair trade practices, the farmers of Kaira approached Sardar Vallabhbhai
Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to form
a cooperative and supply milk directly to the Bombay Milk Scheme instead of Polson (who did
the same but gave them low prices). He sent Morarji Desai to organise the farmers. In 1946, the
milk farmers of the area went on a strike which led to the setting up of the cooperative to collect
and process milk. Milk collection was decentralized, as most producers were marginal farmers
who could deliver, at most, 1–2 litres of milk per day. Cooperatives were formed for each village,
too.
The cooperative was further developed and managed by Dr. Verghese Kurien with H.M. Dalaya.
Dalaya's innovation of making skim milk powder from buffalo milk (for the first time in the world)
and a little later, with Kurien's help, making it on a commercial scale, led to the first modern dairy
of the cooperative at Anand, which would compete against established players in the market.
Kurien's brother-in-law K.M. Philip sensitized Kurien to the needs of attending to the finer points
of marketing, including the creation and popularization of a brand. This led to the search for an
attractive brand name. In a brainstorming session, a chemist who worked in the dairy laboratory
suggested Amul, which came from the Sanskrit word "amulya", which means "priceless" and "de-
noted and symbolised the pride of swadeshi production."
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to
Anand's neighbourhood in Gujarat. Within a short span, five unions in other districts – Mehsana,
Banaskantha, Baroda, Sabarkantha and Surat – were set up. To combine forces and expand the
market while saving on advertising and avoid competing against each other, the GCMMF, an apex

7
marketing body of these district cooperatives, was set up in 1973. The Kaira Union, which had the
brand name Amul with it since 1955, transferred it to GCMMF.
In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.

Technological developments at Amul have subsequently spread to other parts of India.

The GCMMF is the largest food products marketing organisation of India. It is the apex organisa-
tion of the dairy cooperatives of Gujarat. It is the exclusive marketing organisation for products
under the brand name of Amul and Sagar. Over the last five and a half decades, dairy cooperatives
in Gujarat have created an economic network that links more than 3.1 million village milk products
with millions of consumers in India. Gujarat Cooperative Milk Marketing Federation Ltd.

UHT PRODUCTS AND IMPACT


Over the years Amul has been witnessing growth in this portfolio, with the segment growing at
53%, Long life UHT products for urban populations, like Amul Taaza, which are packed in Tetra
Pak cartons, which undergoes UHT treatment to remove all harmful micro-organisms while re-
taining the nutrition in the milk. Amul sells around 4-5,00,000 liters of UHT milk and other value
added products per day and forecast this demand to continue growing at 25%. The UHT products
have enabled Amul to position itself as the market leader in packaged milk segment without the
need of maintaining cold supply chains.

ADVERTISING
In 1966, Amul hired Sylvester daCunha, then managing director of the advertising agency AS to
design an ad campaign for Amul Butter. daCunha designed a campaign as series of hoardings with
topical ads, relating to day-to-day issues.[ It was popular and earned a Guinness world record for
the longest running ad campaign in the world. In the 1980s, cartoon artist Kumar Morey and script
writer Bharat Dabholkar had been involved with sketching the Amul ads; the latter rejected the
trend of using celebrities in advertisement campaigns. Dabholkar credited chairman Verghese
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 pol-
icy of not backing down. Some of the more controversial Amul ads include one commenting on

8
the Naxalite uprising in West Bengal, on the Indian Airlines employees strike, and one depicting
the Amul girl wearing a Gandhi cap.
In 2013, Amul tweeted a picture featuring the Amul butter girl, implying that 'freedom of choice'
died in '2013', in opposition to the Supreme Court of India overruling the judgment of Delhi High
Court and criminalising homosexuality again.
On 17 October 2016, Amul butter girl celebrated 50 years when she first appeared in the topical
ad titled "Thoroughbread". The ad showed a jockey holding a slice of bread during the horse race
season in 1966. The impish Amul girl had appeared for the first time even before that, with Eustace
Fernandez showed her offering bedtime prayers with a wink and a lick of lips, saying "Give us this
day our daily bread: with Amul butter".

IN POPULAR CULTURE
The establishment of Amul is known as White Revolution.
The White Revolution inspired the notable Indian film-maker Shyam Benegal to base his
film Manthan (1976) on it. The film was financed by over five lakh (half a million) rural farmers
in Gujarat who contributed Rs 2 each to its budget. Upon its release, these farmers went in truck-
loads to watch 'their' film, making it a commercial success. Manthan was chosen for the 1977
National Film Award for Best Feature Film in Hindi.

9
KEY FACTS

Type – Co-operative

Founded in – 1946

Headquarters – Anand, India

Industry – dairy

Key people - Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF)

Products - milk and related product

Revenue - $ 1 billion

Employee – 2.41 million milk producers

Slogan – The Taste Of India.

VISION

Amul ‟s vision is to provide more and more satisfaction to the farmers, employees and distributers
and CONSTUMERS.

10
MISSION

We at GCMMF (Gujarat Co-operative Milk Marketing Federation) endeavor to satisfy the taste
and nutritional requirements of the customers of the world, through excellence in marketing by
our committed team. Through co-operative networking, we are committed to offering quality
products that provide best value for money.

MARKET SHARE

 AMUL Ice cream is among the Asia’s top 10 Ice cream brands.
 In a short span of 6 years, Amul Ice Cream has become No.1 Ice Cream brand in the
country.
 Amul ice cream is now the only national brand and other Ice Cream brands are regional.
 Our position in the market: Amul No.1 brand in India: Amul has achieved a market share
of 38% (4.5 times larger than nearest competitor).

LIST OF PRODUCTS MARKETED

Bread spreads:

Amul Butter

Amul Lite Low-Fat Bread spread

Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozzarella) Cheese

Amul Shredded Pizza Cheese

Amul Cheese

11
Amul Gouda Cheese

Amul Malai Paneer (cottage cheese) Frozen and Tinned

Utterly Delicious Pizza

Mathai Range (Ethnic sweets):

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

Amul Amrakhand

Amul Mathai Gulab jamuns

Amul Mathai Gulab jamun Mix

Amul Mathai Kulfi Mix

UHT Milk Range:

Amul Taaza 3% fat Milk

Amul Gold 4.5% fat Milk

Amul Slim-n- Trim 0% fat milk

Amul Chocolate Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

Amul Taaza Double Toned Milk

12
Pure Ghee:

Amul Pure Ghee

Sagar Pure Ghee

Amul Cow Ghee

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6 months)

Amul Infant Milk Formula 2 (6 months above)

Amul spray Infant Milk Food

Milk Powders:

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardised Milk 3% fat

Amul Smart Double Toned Milk 1.5% fat

13
Curd Products:

Amul Masti Dahi (fresh curd)

Amul Butter Milk

Amul Lassee

Amul Ice creams:

Royal Treat Range (Rajbhog, Cappuccino, Choco chips, Butterscotch, Tutti Frutti)

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

Badshahi Badam Kulfi, Shista Pista Kulfi)

Utsav Range (Anjir, Roasted Almond)

Chocolate & Confectionery

INTERNATIONAL BUSINESS

AMUL stands out a star performer both in the domestic and international market. With the perfect
mix of technical know-how and business acumen the company has grown into a major of milk and
milk products producing company. AMUL is India’s largest exporter of dairy products. It has
been accorded a “Trading House” status. It has received the APEDA Award from Government of
India for excellence in dairy product exports for the last 8 years. AMUL has its market in almost
20 countries which include USA, Iraq, Kuwait, Russia, Nepal, Qatar, Muscat, Singapore, Saudi
Arabia, Sri Lanka, Bangladesh, Gambia, Uganda, Madagascar, Tanzania, U.A.E., Bahrain. Major
export products of AMUL are:

14
CONSUMER PACKS

AMUL PURE GHEE

AMUL BUTTER

AMUL SHRIKHAND

AMUL FULL CREAM POWDER

AMUL MITHAEE GULAB JAMUN

AMUL SKIMMED MILK POWDER

NUTRAMUL BROWN BEVERAGE

AMULSPRAY INFANT MILK FOOD

AMUL CHEESE

AMUL MALAI PANEER

AMUL UHT MILK (LONG LIFE)

AMUL FRESH CREAM

BULK PACKS

AMUL SKIMMED MILK POWDER

AMUL FULL CREAM MILK POWDER

INTERNATIONAL DISTRIBUTION STRATEGIES

The company has appointed special carry forward agents for distributing its products in the
international market. It has rented cold storages in various countries to store its products from
where they are distributed as per orders. Although the distribution network for international market

15
is not so well knitted as in case of domestic market, it has been successful in maintaining
satisfactory network that ensures smooth functioning.

INTERNATIONAL PRICING STRATEGIES

While deciding the prices for international market the company takes into consideration the prices
of the competitors , production cost , distribution cost for international market , taxes and duties to
be paid ,etc. However the company tries not to have much difference in prices in National and the
International markets.

PRODUCT VARIATIONS

There are no variations in the basic products that the company offers in National and International
markets, except for the fact that the company has to maintain the quality standards as per the
regulations of the respective countries. Not all the products manufactured are yet available in
International market because of the difference in preferences and consumption pattern of the
people in various countries.

EXPORT POTENTIAL

India has the potential to become one of the leading players in milk and milk product exports.
Location advantage: India is located amidst major milk deficit countries in Asia and Africa. Major
importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore, Thailand,
Malaysia, Philippines, Japan, UAE, Oman and another gulf countries, all located close to India.
Low Cost of Production: Milk production is scale insensitive and labor intensive. Due to low labor
cost, cost of production of milk is significantly lower in India.

CONCERNS IN EXPORT COMPETITIVENESS ARE:

Quality: Significant investment has to be made in milk procurement, equipment’s, chilling and
refrigeration facilities. Also, training has to be imparted to improve the quality to bring it up to
international standards. Productivity: To have an exportable surplus in the long-term and also to
maintain cost competitiveness, it is imperative to improve productivity of Indian cattle. There is a

16
vast market for the export of traditional milk products such as ghee, paneer, shrikhand, rasgolas
and other ethnic sweets to the large number of Indians scattered all over the world.

EXPORT NEWS: -

Amul to spread its taste to US, Europe

Popular Indian dairy brand, Amul, plans to take its products to overseas shores.

The Kiara District Cooperative Milk Producers’ Union Ltd, better known as Amul Dairy, will
target ethnic South Asians living abroad with manufacturing bases outside India. The country;
premier dairy cooperative, which was recently rated as the top Indian green brand by Green Brands
Global Survey, will initially produce ghee and paneer (cottage cheese) for the global
market. Chairman Ramsinh Parmar said: “There is great potential in Europe and US for Amul
products; Plans are afoot to establish our own manufacturing facility in the US.

“We shall shortly finalize steps to be taken in this direction to ensure quality for the dairy products
that are made available in these countries. “The Gujarat-based co-operative union will pick the
exact location for the proposed facilities within a month.

While California, Virginia and Wisconsin are considered to milk-rich states in the US, the
concentration of Indians is more in states such as New Jersey and New York. The group currently
exports products to these markets, mainly under the Amul and Sagar brands. Amul has found over
the years that there is significant demand for its products amongst Indian families in these markets
and a local facility would enable better control over logistics and costs and cut 45 days out of the
shipping time. The group plans to source white butter and raw milk from local cooperative dairies
to cater to the US market.

Amul is run by a co-operative representing 3 million farmers from the country north-west and sold
$2.1 billion worth of ghee, milk and other dairy products last year, with 10 per cent of the ghee
production being exported.

17
Amul to hit big in export route: -

Ratna Bhushan, TNN Jun 30, 2011, 10.42pm IST

NEW DELHI: Spurred by the recent reduction in dairy subsidies by the European Commission
and stagnant milk output in the US and Europe, and aided by low-cost production in India, the
Gujarat Cooperative Milk Marketing Federation (GCMMF) has set itself its single biggest export
target ever.

It has projected doubling of exports in 2004-05 from last fiscal, amounting to Rs 90 crore. With
the EU subsidy cut, low-cost imports from Europe and other markets will dip. This will increase
the Indian dairy sector competitiveness globally says RS Sodhi, GM, marketing,

GCMMF.

The subsidy cut will also help Indian exporters achieve higher realizations from the EU, and
subsequently better returns for farmers. The reductions are primarily on butter oil, skimmed milk
powder (SMP) and white butter. Top on GCMMF export list are SMP in bulk, UHT milk in
tetraspace, butter, cheese, ice-cream, ghee (or clarified butter), paneer (cottage cheese) and
desserts. All these are being exported under the Amul umbrella brand. Bulk exports of SMP have
the highest growth potential. Among branded products, Amul is pitching its UHT milk - branded
Amul Long Life - upfront. &quote expect to sell Rs 20 crore of UHT milk in 1-litre tetraspace in
overseas markets this fiscal, quota; says Sochi.

Branded consumer products are being targeted at NRIs. Last year, Amul initiated a potential foray
in Wal-Mart for some of its milk based products.

In 2003-04, GCMMF& sales grew 5 per cent to Rs 2,882 crore, with dairy business growing 18
per cent despite the loss of its edible oils business. Milk production in India - at 86 million tons,
making it the largest milk producing country - is growing at 4-5 per cent. Output in the US, the
second largest, is estimated at close to 72 million tonnes.

18
Sales

Amul
Kwality Walts
Vadilal
Mother Dairy
Cream bell
Regional and nche players

19
INTRODUCTION TO THR TOPIC:

AMUL – CONSUMERSATISFACTION

INTRODUCTION:

Customer satisfaction, a business term, is a measure of how products and services supplied by a
company meet or surpass customer expectation. It is a key performance indicator within
business and is part of the four perspectives of a Balanced Score card. In a competitive
marketplace where businesses compete for customers, customer satisfaction is seen as a key
differentiator and increasingly has become a key element of business strategy. There is
a substantial body of empirical literature that establishes the benefits of customer satisfaction for
firms.

MEASURING CUSTOMER SATISFACTION

Organizations are increasingly interested in retaining existing customers while targeting non-
customers; measuring customer satisfaction provides an indication of how successful the
organization is at providing products and/or services to the marketplace. Customer satisfaction is
an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will
vary from person to person and product/service to product/service. The level of satisfaction can also
vary depending on other options the customer may have and other products against which the customer can
compare the organization's products. Because satisfaction is basically a psychological state, care
should be taken in the effort of quantitative measurement, although a large quantity of research in this area
recently been developed.

It is believed that consumers or customers make purchase decision on the basis of receipt of a small number
of selectivity chosen pieces of information. Thus, it will be very important to understand what & how mush
them to evaluate the goods & services offerings.

CUSTOMER EXPECTATION:
Customer expectation through look realistic is very often build upon on a very high platform.
Then the quality of the product or services may not match the expectation. This again will affect the
consumer satisfaction level. So as to reduce the level of dissatisfaction among the

20
customers,
themarketing decision maker could adopt approaches wherein he can classifymarket
in relation to the degree of opportunity to deliver customer satisfaction.
He could establish itself common factors & they evaluate each ma
rketopportunity against these. The most probable factors which in
f l u e n c e consumer’s behaviors are:

 Market size
 Rate of growth of the market
 Stability or demand
 The due importance attached to price by the consumers before making a purchase
decision
 Consumer emphasis & the due importance given to the quality aspect
 The consumers desire for product innovation

 The level of competition (inclusive of both existing & potential competitors)


 The firm’s competitive strengths in terms of price & product
 E x p e c t a t i o n s a t t h e g e n e r a l l e v e l l i k e a r e q u a l i t y, d u r a b i l i t y, reliability,
style, etc.

FEEDBACK
Many of the companies are entrusting their customers to give
feedback & u s e t h i s a s a m e a n s o f m a i n t a i n i n g r e g u l a r c o n t a c t & d i a l o g u e , h
a v i n g realized the importance of obtaining a feedback the consumers. Rather
thana v o i d i n g c o m m e n t , c o m p a n i e s a r e e n c o u r a g i n g t h e i r c u s t o m e r s t o t a l a
sm e n t i o n a b o v e , f e e d b a c k h e l p s t h e m , m a r k e t f i r m t o g e t o n i d e a o
f t h e customers view point on their product or services & more important is that this information
will help them to take action & deal with any problem immediately.

21
BRANDS:
Brands were originally developed as labels of own ship: Name Term Design and Symbol.
However, they today it is what they for people that matters much more, powerful brands can drive
success in competitive and financial markets, and indeed become the organization’s most valuable
assets.

BRAND LOYALTY:
It has been proclaimed by some to be the ultimate goal of marketing. In marketing, brand loyalty
consists of a consumer’s commitment to repurchase the brand and can be demonstrated by repeated buying
of a product or service or other positive behaviors such as word of mouth advocacy. True brand
loyalty implies that the consumer is willing, at least on occasion, to put aside their own desires in the
interest of the brand.

CUSTOMER FOCUS:
Many companies today have a customer focus (or customer orientation). This implies that the
company focuses its activities and products on consumer demands. Generally, there are three
ways of doing this: the customer driven approach, the sense of identifying market changes
and the product innovation approach. In the consumer driven approach, consumer wants are the
drivers of all strategic marketing decision. No strategy is pursued until it passes the
test of consumer research. Every aspect of a market offering, including the nature of the product
itself, is driven by the needs of potential customers. The starting point is always
consumer. The rationale for this approach is that there is
no p o i n t s p e n d i n g R & D f u n d s d e v e l o p i n g p r o d u c t s t h a t p e o p l e w i l l n o t b u
y . History attested to many products that were commercial failure in spite of being technological breakthroughs.

CUSTOMER LOYALTY:
“It takes a lot less money to increase your retention of current than to find new ones but I know I don’t give
it as much effort as I should because it does take a lot of energy and effort”
India.

22
DEFINITION:
According to the American Marketing Association, “Marketing is the performances of
business activities that direct the flow of goods and services from producer to customer or user”

FIVE STAGES OF CUSTOMER BONDING


This bond results from effective one-on
o n e c o m m u n i c a t i o n , m u t u a l l y - beneficial interaction, the company's genuine interest
and involvement in the customer’s life and lifestyle, a combination of customer allegiance and company
advocacy, and a shared sense of purpose. Customer loyalty develops from personal relationships
and trust between the company and the customer over time. This includes keeping customers involved
throughout the product lifecycle as well as developing products and/or services to meet changing
customer needs and desires.

AWARENESS
•T h e a r t o f e a r n i n g c u s t o m e r " s h a r e - o f -
m i n d " i n v o l v e s c r e a t i n g a n impression of personal identification with the company's
products and/or services.
•This first stage, awareness, represents the weakest aspect of a relationship b e c a u s e i t i s n o n -
i n t e r a c t i v e a n d d e p e n d s e n t i r e l y o n t h e c u s t o m e r ' s perception
IDENTITY
•T h e i d e n t i f i c a t i o n s t a g e o c c u r s w h e n a p o t e n t i a l c u s t o m e r a s k s t h e question,
"What's in it for me?"
•A c u s t o m e r i d e n t i f i e s a p r o d u c t o f s e r v i c e a s m e e t i n g o n e o r m o r e important
personal needs, such as self-fulfillment, status, or belonging.
•A customer may perceive the company as having values and preferences similar to his own and begin
to form a relationship with the company.

RELATIONSHIP
•A t t h i s s t a g e , t h e c u s t o m e r r e c e i v e s t h e b e n e f i t o f p r o d u c t s a n d / o r services
tailored specifically to his individual needs (at least as nearly as the company can provide).

23
•Once a customer interacts with the company, repeated experiences of individual customer
satisfaction take on significant importance.
•Customers expect that products will work and that they will receive good service. Customer delight results
largely from how a product is sold and is serviced as well as how the company responds to inquiries
and solves problems.

COMMUNITY
•Customer bonding requires high levels of effective interaction. When the company integrates its
products and services into the life and lifestyle of its customers, communal bonding occurs.
•The community relationship stage achieves an integration of values, preferences
and priorities between customer and company where
eachd e r i v e s m u t u a l b e n e f i t . C o m p a n i e s t h a t a c h i e v e t h i s t y p e o f l o ya l t y cons
istently delight their customers.

DVOCACY
•At this advanced level of customer bonding, the company services as an advocate for the
customer, and the customer shows an allegiance to the company; word-of-mouth advertising
flourishes. Because the companynow can encourage buyer-get-a-
buyer programs through appropriateincentives, it must be prepared to follow through
professionally to make new recruits feel as valued as the advocates who recommended them.

MARKET SEGMENTATION:
The process of talking the total heterogeneous market for a product &dividing it in to
several sub markets each which tend to be homogeneous in all significances. There are few bases for
segmentation markets,
 Customer characteristics
 Consumer responses the major segmentation variables for consumers markets are,
 Geographic segmentation (nation, state, country, city)
 D e m o g r a p h i c s e g m e n t a t i o n ( a g e , f a m i l y, r e l i g i o n , g e n e r a t i o n ,
nationality, social class)

24
 Psychographic (life style, personality & status class)
 Behavioral (occupation, benefits, users, loyalty,) These variables can be used singly or in
combination, business marketer use
allt h e s e v a r i a b l e a s a l o n g w i t h o p e r a t i n g v a r i a b l e s , p u r c h a s i n g a p p r o
a c h e s , substantial, accessible, differentiable, & actionable.

STRENGTHS:

· Demand profile: Absolutely optimistic.

· Margins: Quite reasonable.

· Flexibility of product mix: Tremendous. With balancing equipment, you can keep on adding to
your product line.

· Availability of raw material: Abundant. Presently, more than 80 per cent of chocolateproduced
is flowing into the unorganized sector, which requires proper channelization.

· Technical manpower: Professionally-trained, technical human resource pool, built over last 30
years.

WEAKNESSES:

· Perishability: Pasteurization has overcome this weakness partially. Which gives chocolate long
life. Surely, many new processes will follow to improve chocolate quality and extend its shelf life.

· Lack of control over yield: Theoretically, there is little control over chocolate yield. However,
increased awareness of developments like embryo transplant, artificial insemination and properly
managed animal husbandry practices, coupled with higher income to rural milk producers should
automatically lead to improvement in chocolate.

· Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk
procurement problematic. But with the overall economic improvement in India, these problems
would also get solved.

25
· Problematic distribution: Yes, all is not well with distribution. But then if ice creams can be sold
virtually at every nook and corner, why can’t we sell other dairy products too? Moreover, itis only
a matter of time before we see the emergence of a cold chain linking the producer to the refrigerator
at the consumer’s home!

· Competition: With so many newcomers entering this industry, competition is becoming tougher
day by day. But then competition has to be faced as a ground reality. The market is large enough
for many to carve out their niche.

OPPORTUNITIES:

Value addition:

There is a phenomenal scope for innovations in product development, packaging and presentation.
Given below are potential areas of value addition: Steps should be taken to introduce value-added
products like Shrikant, ice creams, paperhood, flavored milk, dairy sweets, chocolates etc. This
will lead to a greater presence and flexibility in the market place along with opportunities in the
field of brand building. Addition of cultured products like yoghurt and cheese lend further strength
- both in terms of utilization of resources and presence in the market place. A lateral view opens
up opportunities in milk proteins through casein, caseinates and other dietary proteins, further
opening up export opportunities. Yet another aspect can be the addition of infant foods, geriatric
foods and nutritional.

· Export potential: Efforts to exploit export potential are already on. Amul is exporting to
Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new treaty, opportunities will
increase tremendously for the export of agricultural products in general and dairy products.

THREATS:

Milk vendors, the un-organized sector: Today chocolate vendors are occupying the pride of place
in the industry. Organized dissemination of information about the harm that they are doing to
producers and consumers should see a steady decline in their importance.

26
RESEARCH METHODOLOGY:

OBJECTIVE OF STUDY

 To make loads of Amul products.


 To improve the quality of their Products.
 To survive in the market.
 To have loads of stores worldwide.
 To be an ongoing company.

27
SCOPE OF STUDY

The scope of this study is to analyse the various brand promotional strategies of Amul products
and to know that how these strategies attracts the buyers to buy more and more products of Amul.
Apart from this it focuses on the objective of the company. Through this analysis we can easily
came to know about the image of a company in a market and find its present position in the market.

28
MEANING OF RESEARCH

Research is systematic investigation of a subject to discover new knowledge, including designs of


new products and processes. The process of carrying out research is influenced heavily by the topic
being researched and the purpose of research. Identifying the problem or the specific research task.
Studying existing information related to the problem or the research task. Formulating a hypothesis
that gives possible explanation or description of the facts to be uncovered by the research.
Collecting data or evidence that enables the researcher to test the validity of the hypothesis.
Analysing the data collected and drawing conclusions based on it.

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be


understood as a science of studying how research is done scientifically. In it we study the various
steps that are generally adopted by a researcher in studying his research problem along with the
logic behind them. It is necessary for the researcher to know not only the research
methods/techniques but also the methodology. Researchers not only need to know how to develop
certain indices or tests, how to calculate the mean, the mode, the median or the standard deviation
or chi-square, how to apply particular research techniques, but they also need to know which of
these methods or techniques, are relevant and which are not, and what would they mean and
indicate and why. Researchers also need to understand the assumptions underlying various
techniques and they need to know the criteria by which they can decide that certain techniques and
procedures will be applicable to certain problems and others will not. All this means that it is
necessary for the researcher to design his methodology for his problem as the same may differ
from problem to problem. For example, an architect, who designs a building, has to consciously
evaluate the basis of his decisions, i.e., he has to evaluate why and on what basis he selects
particular size, number and location of doors, windows and ventilators, uses particular materials
and not others and the like. Similarly, in research the scientist has to expose the research decisions
to evaluation before they are implemented.

29
TYPES OF RESEARCH

 EXPLORATORY RESEACH

Exploratory research is a type of research conducted for a problem that has not been clearly
defined. Exploratory research helps determine the best research design, data collection method
and selection of subjects. It should draw definitive conclusions only with extreme caution.
Exploratory research often relies on secondary research such as reviewing available literature
and/or data, or qualitative approaches such as informal discussions with consumers, employees,
management or competitors, and more formal approaches through in-depth interviews, focus
groups, projective methods, case studies or pilot studies. The Internet allows for research methods
that are more interactive in nature.

 DESCRIPTIVE RESEARCH

Descriptive research includes surveys and fact-finding enquiries of various kinds. The major
purpose of descriptive research is description of the as it exists at present. In social science and
business research we quite often use the term Ex post facto research for descriptive research
studies. The main characteristic of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening. Most ex post facto research
projects used for descriptive studies in which the researcher seeks to measure such items as, for
example, frequency of shopping, preferences of people, or similar data. Ex post facto studies also
include attempts by researchers to discover causes even when they cannot control the variables.
The methods of research utilized in descriptive research are survey methods of all kinds, including
comparative and correlational methods.

My research is an Exploratory research

30
SOURCES OF DATA

1) Primary Data

The data collected by the investigator for his own purpose, for the first time, from beginning to
end are called primary data. These are collected from the source of origin. In the world of Wessel.
Data originally collected in the process of investigation are known as primary data. Primary data
are original. The concerned investigator is the first person who collects this information. The
primary data are therefore, a firsthand information.

2) Secondary Data

Secondary data are those data which are already in existence and which have been collected for
some other purpose than the answering of the question in hand. . According toWessel data
collected by other persons are called secondary data. These data are therefore called second hand
data. Obviously, since these data have already been collected by someone else, these are available
in the form of published collected or unpublished reports.

In this study, Sources of data collected is primary

METHODS-

The method of the data collected used in this study are:

 Primary data- Questionnaire method (questionnaire consisting of 8 questions) and


Observation method. (For Questionnaire See ANNEXURE A)

SAMPLE SIZE

 Around 100 people was given the questionnaires to find out the analysis.

31
Ques 1 Do you prefer amul products?

Particulars No. of Respondents Percentage

Yes 83 83%

No 17 17%

yes
no

INTERPRETATION:

We had surveyed 100 people. Out of them 83% people eat Amul Products. And 17% people doesn’t
eat. So, from this one thing is sure that majority of people prefer Amul Products

32
QUES 2 Which brand of ice cream do you like?

Particulars No. Of Respondents Percentage

Amul 41 41%

Mother Dairy 20 20%

Kwality Walls 18 18%


Vadilal 21 21%

Sales

Amul
Mother Dairy
kwality Walls
Vadilal

INTERPRETATION:

According to survey, 41% people eat Amul ice creams, 20% people eat Mother dairy ice creams,
18% people eat Kwality walls ice creams and 21% people eat Vadilal ice creams.

33
QUES 3 How often do you buy Amul products ?

Particulars No.of respondents Percentage

Weekly 25 25%

Daily 29 29%

Monthly 28 28%

Fortnight 18 18%

Weekly
Daily
Monthly
Fortnight

INTERPRETATION:

According to survey, 25% people weekly prefer Amul Products. 29% people daily prefer Amul
Products. 28% people monthly prefer Amul products. 18% people fortnight prefer Amul Products.

34
QUES4 Which brand advertisement do you like the most?

Particulars No. of respondents Percentage


Amul 45 45%
Mother dairy 20 20%
Kwality Walls 15 15%
Vadilal 20 20%

Sales

Amul
Mother Dairy
Kwality Walls
Vadilal

INTERPRETATION:

According to the survey 45% people like the advertisement of Amul products. 20% people like the
advertisement of Mother Dairy products. 15% people like the advertisement of Kwality walls
products. 20% people like the advertisement of Vadilal products.

35
QUES 5 If a particular brand is not available, you will drop the idea of buying that product ?

Particulars No. of respondents Percentage

Yes 67 67%

No 33 33%

Go to another retail
outlet
Try another brand

INTERPRETATION:

According to the survey it is found that 67% people go to another outlet when they do not get
Amul products on one outlet. 33% people found that they try another brand.

36
QUES 6 Rank the following (1 – 4 )

Particulars No. of respondents Percentage

Amul 35 35%

Mother Dairy 22 22%

Kwality Walls 15 15%

Vadilal 18 18%

Sales

Amul
Mother Dairy
Kwality Walls
Vadilal

INTERPRETATION:

According to the survey, 35% people like Amul products, 22% people like Mother Dairy products,
15% people like Kwality walls products, 18% people like Vadilal products.

37
QUES 7 Does Amul products available to you easily?

Particulars No. of respondents Percentage

Yes 88 88%

No 12 12%

12%

yes
no

88%

INTERPRETATION:

According to survey, 88% people says that Amul products are easily available to them. Whereas
12% people doesn’t get Amul products easily.

38
FINDINGS:

By the help of analysis and interpretation of the data we came to some findings, these findings are
as follows:

 AMUL has good market position in the regional market. It holds 38% of the market share.
It shows the loyalty of customers towards AMUL.

 Most of the customers are satisfied with the quality and availability of AMUL products.

 Increasing the price of AMUL ice creams is a big challenge for the Amul, because there
are many other brands of products other than AMUL.

 Customers want to make the availability of AMUL products nearer to their home.

 Establishment of AMUL milk gives the AMUL a competitive advantage and enhance the
availability among customers.

 Some customers want to improve the packaging style of Amul products.

39
LIMITATIONS

Although the project has been worked out at its best yet there are some limitations, which cannot
be overlooked. Had these limitations been overcome, the findings would be accurate.

Some of the limitations are:

1) Time constraint:

Time was really a limiting factoring the project. It’s really difficult to work out such a large
project between two months’ time.

2)Data constraint:

All the data that has been collected for this project, has been taken from secondary sources like
websites, magazines, newspapers and book.

3) Money constraint:

A confined resource of the money was the constraint.

4)Lack of full co-operation of respondents:

There is a lack of co-operation from the respondent’s side. some of them are not interested in
answering the questions.

5) Ambiguous replies or omission of replies:

Some of the respondents gave ambiguous replies for certain questions or omitted the responses to
some of them. The interpretation of such responses becomes difficult and could generate wrong
results.

40
CONCLUSION

After going into its aspect i.e. its brand promotional strategies, we can conclude that the company
is excellent on all the fronts which includes appropriate promotional activity, easily available
facility, satisfactory price and quality of the product. It is among the top 5 FMCG company in
India.

Through its comprehensive range of products touches the lives of all consumers, in all age groups,
across all social boundaries. And this legacy has helped them develop a bond of trust with
consumers. That guarantees us the best in all products carrying the AMUL name.

41
SUGGESTIONS

 More stores should be established to enhance the availability of AMUL products.


 Make the customers aware about the AMUL products through different mode of
advertisement.
 On line information about the AMUL products & trading should be facilitate by the
company.
 There should be the regular visit for the customer feedback about AMUL products. This
helps the changing demand of customers.
 Fulfilling the increasing demand for better and more products, the company should try to
increase the production.
 Company should try to provide discount on bulk purchasing. And also provide some offers
and schemes for sales promotion.

42
BIBLIOGRAPHY

 www.google.com
 www.wikipedia.com
 www.motherdairy.com
 Booklet of AMUL
 www.amul.com
 www.kwalitywalls.com
 www.vadilal.com

43
QUESTIONNAIRE

Name: _________________________________

Address: _______________________________

Tel No: ________________________________

Age: ___________________________________

Gender: ___________________________________

Occupation: ___________________________

Ques 1 Do you eat ice creams?

a) Yes
b) No

Ques 2 Which brand of ice creams do you like?

a) Amul
b) Mother Dairy
c) Kwality walls
d) Vadilal

Ques 3 How often do you buy Amul products?

a) Weekly
b) Daily
c) Monthly
d) Fortnight

Ques 4 Which brand advertisement do you like the most?

a) Mother Dairy

44
b) Amul
c) Kwality Walls
d) Vadilal

Ques 5 If a particular brand is not available; you will drop the idea of buying Amul products?

a) Go to another outlet
b) Try another brand (specify)

Ques 6 Rank the following (1-4)

a) Amul
b) Mother Dairy
c) Kwality Walls
d) Vadilal

Ques 7 Does Amul products available to you easily?


a) Yes
b) No

Ques 8 Your Suggestions (if any)

45

Оценить