PROJECT REPORT

ON

“MARKETING STRATEGIES OF AMUL”

Towards partial fulfillment of

Master of Business Administration (MBA)

SUBMITTED TO: SUBMITTED BY:

Mrs. Suparna Pathak Anuj Singh
Enrollment No. 1711A0203490
MBA IVth Sem.

ISBM UNIVERSITY, CHHATTISGARH 493996

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 DECLARATION

This is to declare that I Anuj Singh of MBA have personally worked on the project entitled

“MARKETING STRATEGIES OF AMUL” The data mentioned in this report were obtained

during genuine work done and collected by me. The data obtained from other sources have been

duly acknowledged. The result embodied in this project has not been submitted to any other

University or Institute for the award of any degree.

Date: `
Place: Lucknow

Anuj Singh
Enrollment No. 1711A0203490
MBA IVth Sem.

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 ACKNOWLEDGMENT

First of all I thank God for giving me this wonderful opportunity to undertake this research

which is a part of my MBA program.

I would like to sincerely thank Mrs. Suparna Pathak for giving me the wonderful opportunity

to work under her able guidance and support throughout my research.

I also thank persons working at Amul office for giving me their valuable time and vital

information which forms a part of this report.

I would also like to thank my colleagues for rendering their help to me in this research.

Last but not the least, I thank my parents for their prayers, help and advice which helped me a lot

to complete this project report.

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 TABLE OF CONTENT

S.No. Content
1. Introduction

2. Company profile

3. Objective of the study

4. Scope of the study

5. Importance & use of the study

6. Research methodology

7. Data analysis and interpretation

8. Findings

9. Limitation

10. Conclusion

11. Suggestions and recommendations

12. Bibliography

13. Annexure

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 EXECUTIVE SUMMARY

While working in the organization I was trained as a relationship personnel being

engaged into various jobs such as dealing with clients, answering customer queries
through telephonic conversations and providing them knowledge about new
schemes and converting them into our customers.
As my summer internship project I was given the topic on “Marketing strategy of
Amul”. The project work was for this research was conducted in Lucknow to
study the customer satisfaction level.
The research has been conducted to gather information from 100 respondents & a
structured questionnaire will be used to collect the information from the
respondents. The data which was collected from them will be analyzed and
classified. It was found that though the Amul has the highest market share it needs
to improve on its service quality and retail services.

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 INTRODUCTION
Marketing strategy
Marketing strategy is the goal of increasing sales and achieving a sustainable competitive
advantage. Marketing strategy includes all basic and long-term activities in the field of marketing
that deal with the analysis of the strategic initial situation of a company and the formulation,
evaluation and selection of market-oriented strategies and therefore contribute to the goals of the
company and its marketing objectives.

Developing a marketing strategy

Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill
market needs and reach marketing objectives. Plans and objectives are generally tested for
measurable results. Commonly, marketing strategies are developed as multi-year plans, with a
tactical plan detailing specific actions to be accomplished in the current year. Time horizons
covered by the marketing plan vary by company, by industry, and by nation, however, time
horizons are becoming shorter as the speed of change in the environment increases. Marketing
strategies are dynamic and interactive. They are partially planned and partially unplanned.
See strategy dynamics. Marketing strategy needs to take a long-term view, and tools such
as customer lifetime value models can be very powerful in helping to simulate the effects of
strategy on acquisition, revenue per customer and churn rate.
Marketing strategy involves careful and precise scanning of the internal and external
environments. Internal environmental factors include the marketing mix and marketing mix
modeling, plus performance analysis and strategic constraints. External environmental factors
include customer analysis, competitor analysis, target market analysis, as well as evaluation of
any elements of the technological, economic, cultural or political/legal environment likely to
impact success. A key component of marketing strategy is often to keep marketing in line with a
company's overarching mission statement.
Once a thorough environmental scan is complete, a strategic plan can be constructed to identify
business alternatives, establish challenging goals, determine the optimal marketing mix to attain
these goals, and detail implementation. A final step in developing a marketing strategy is to
create a plan to monitor progress and a set of contingencies if problems arise in the
implementation of the plan.
Marketing Mix Modeling is often used to help determine the optimal marketing budget and how
to allocate across the marketing mix to achieve these strategic goals. Moreover, such models can
help allocate spend across a portfolio of brands and manage brands to create value.

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Diversity of Strategies
Marketing strategies may differ depending on the unique situation of the individual business.
However, there are a number of ways of categorizing some generic strategies. A brief description
of the most common categorizing schemes is presented below:
Strategies based on market dominance - In this scheme, firms are classified based on their
market share or dominance of an industry. Typically there are four types of market dominance
strategies:

 Leader
 Challenger
 Follower
 Nicher
According to Shaw, Eric (2012). "Marketing Strategy: From the Origin of the Concept to the
Development of a Conceptual Framework". Journal of Historical Research in Marketing., there is
a framework for marketing strategies.

 Market introduction strategies

"At introduction, the marketing strategist has two principle strategies to choose from: penetration
or niche" (47).

 Market growth strategies

"In the early growth stage, the marketing manager may choose from two additional strategic
alternatives: segment expansion (Smith, Ansoff) or brand expansion (Borden, Ansoff, Kerin and
Peterson, 1978)" (48).

 Market maturity strategies

"In maturity, sales growth slows, stabilizes and starts to decline. In early maturity, it is common
to employ a maintenance strategy (BCG), where the firm maintains or holds a stable marketing
mix" (48).

 Market decline strategies

At some point the decline in sales approaches and then begins to exceed costs. And not just
accounting costs, there are hidden costs as well; as Kotler (1965, p. 109) observed: 'No financial
accounting can adequately convey all the hidden costs.' At some point, with declining sales and
rising costs, a harvesting strategy becomes unprofitable and a divesting strategy necessary" (49).

Early marketing strategy concepts

 Borden's "marketing mix"

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"In his classic Harvard Business Review (HBR) article of the marketing mix, Borden (1964)
credits James Culliton in 1948 with describing the marketing executive as a 'decider' and a 'mixer
of ingredients.' This led Borden, in the early 1950s, to the insight that what this mixer of
ingredients was deciding upon was a 'marketing mix'".

 Smith's "differentiation and segmentation strategies"

"In product differentiation, according to Smith (1956, p. 5), a firm tries 'bending the will of
demand to the will of supply.' That is, distinguishing or differentiating some aspect(s) of its
marketing mix from those of competitors, in a mass market or large segment, where customer
preferences are relatively homogeneous (or heterogeneity is ignored, Hunt, 2011, p. 80), in an
attempt to shift its aggregate demand curve to the left (greater quantity sold for a given price)
and make it more inelastic (less amenable to substitutes). With segmentation, a firm recognizes
that it faces multiple demand curves, because customer preferences are heterogeneous, and
focuses on serving one or more specific target segments within the overall market" (35).

 Dean's "skimming and penetration strategies"

"With skimming, a firm introduces a product with a high price and after milking the least price
sensitive segment, gradually reduces price, in a stepwise fashion, tapping effective demand at
each price level. With penetration pricing a firm continues its initial low price from introduction
to rapidly capture sales and market share, but with lower profit margins than skimming".

 Forrester's "product life cycle (PLC)"

"The PLC does not offer marketing strategies, per se; rather it provides an overarching
framework from which to choose among various strategic alternatives".

Corporate strategy concepts

 Andrews' "SWOT analysis"

"Although widely used in marketing strategy , SWOT (also known as TOWS) Analysis
originated in corporate strategy. The SWOT concept, if not the acronym, is the work of Kenneth
R. Andrews who is credited with writing the text portion of the classic: Business Policy: Text
and Cases (Learned et al., 1965)" (41).

 Ansoff's "growth strategies"

"The most well-known, and least often attributed, aspect of Igor Ansoff's Growth Strategies in
the marketing literature is the term 'product-market.' The product-market concept results from
Ansoff juxtaposing new and existing products with new and existing markets in a two by two
matrix" (41-42).

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Porter's "generic strategies"
Porter generic strategies – strategy on the dimensions of strategic scope and strategic strength.
Strategic scope refers to the market penetration while strategic strength refers to the firm's
sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two
alternatives each with two alternative scopes. These are Differentiation andlow-cost
leadership each with a dimension of Focus-broad or narrow.

 Product differentiation
 Cost leadership
 Market segmentation

Innovation strategies
Innovation strategies deal with the firm's rate of the new product development and business
model innovation. It asks whether the company is on the cutting edge of technology and business
innovation. There are three types:

 Pioneers
 Close followers
 Late followers

Growth strategies
In this scheme we ask the question, "How should the firm grow?". There are a number of
different ways of answering that question, but the most common gives four answers:

 Horizontal integration
 Vertical integration
 Diversification
 Intensification
These ways of growth are termed as organic growth. Horizontal growth is whereby a firm grows
towards acquiring other businesses that are in the same line of business for example a clothing
retail outlet acquiring a food outlet. The two are in the retail establishments and their integration
lead to expansion. Vertical integration can be forward or backward. Forward integration is
whereby a firm grows towards its customers for example a food manufacturing firm acquiring a
food outlet. Backward integration is whereby a firm grows towards its source of supply for
example a food outlet acquiring a food manufacturing outlet.

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Raymond Miles' Strategy Categories
In 2003, Raymond Miles proposed a more detailed scheme using the categories:Miles, Raymond
(2003). Organizational Strategy, Structure, and Process. Stanford: Stanford University
Press. ISBN 0-8047-4840-3.

 Prospector
 Analyzer
 Defender
 Reactor
 Marketing warfare strategies – This scheme draws parallels between marketing strategies
and military strategies.
BCG's "growth-share portfolio matrix" "Based on his work with experience curves (that also
provides the rationale for Porter's low cost leadership strategy), the growth-share matrix was
originally created by Bruce D. Henderson, CEO of the Boston Consulting Group (BCG) in 1968
(according to BCG history). Throughout the 1970s, Henderson expanded upon the concept in a
series of short (one to three page) articles in the BCG newsletter titled Perspectives (Henderson,
1970, 1972, 1973, 1976a, b). Tremendously popular among large multi-product firms, the BCG
portfolio matrix was popularized in the marketing literature by Day (1977)" (45).

Strategic models
Marketing participants often employ strategic models and tools to analyze marketing decisions.
When beginning a strategic analysis, the 3C's model can be employed to get a broad
understanding of the strategic environment. An Ansoff Matrix is also often used to convey an
organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a
marketing plan to pursue a defined strategy. Marketing Mix Modeling is often used to simulate
different strategic flexing go the 4Ps. Customer lifetime value models can help simulate long-
term effects of changing the 4Ps, e.g.; visualize the multi-year impact on acquisition, churn rate,
and profitability of changes to pricing. However, 4Ps have been expanded to 7 or 8Ps to address
the different nature of services.
There are many companies, especially those in the consumer package goods (CPG) market, that
adopt the theory of running their business centered around consumer, shopper and retailer needs.
Their marketing departments spend quality time looking for "growth opportunities" in their
categories by identifying relevant insights (both mindsets and behaviors) on their target
consumers, shoppers and retail partners. These growth opportunities emerge from changes in
market trends, segment dynamics changing and also internal brand or operational business
challenges. The marketing team can then prioritize these growth opportunities and begin to
develop strategies to exploit the opportunities that could include new or adapted products,
services as well as changes to the 7Ps.

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Real-life marketing
Real-life marketing primarily revolves around the application of a great deal of common-sense;
dealing with a limited number of factors, in an environment of imperfect information and limited
resources complicated by uncertainty and tight timescales. Use of classical marketing techniques,
in these circumstances, is inevitably partial and uneven.
Thus, for example, many new products will emerge from irrational processes and the rational
development process may be used (if at all) to screen out the worst non-runners. The design of
the advertising, and the packaging, will be the output of the creative minds employed; which
management will then screen, often by 'gut-reaction', to ensure that it is reasonable.
For most of their time, marketing managers use intuition and experience to analyze and handle
the complex, and unique, situations being faced; without easy reference to theory. This will often
be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the
knowledge of the customer which has been absorbed almost by a process of osmosis, will
determine the quality of the marketing employed. This, almost instinctive management, is what
is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing,
form favored by the theorists.
An organization's strategy combines all of its marketing goals into one comprehensive plan. A
good marketing strategy should be drawn from market research and focus on the right product
mix in order to achieve the maximum profit potential and sustain the business. The marketing
strategy is the foundation of a marketing plan.

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Marketing planning
A marketing plan may be part of an overall business plan. Solid marketing strategy is the
foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a
marketing plan without a sound strategic foundation is of little use.

The marketing planning Definition and example

A marketing plan is a comprehensive blueprint which outlines an organization's overall
marketing efforts. A marketing process can be realized by the marketing mix, which is outlined
in step 4. The last step in the process is the marketing controlling.
The marketing plan can function from two points: strategy and tactics (P. Kotler, K.L. Keller). In
most organizations, "strategic planning" is an annual process, typically covering just the year
ahead. Occasionally, a few organizations may look at a practical plan which stretches three or
more years ahead.

Marketing planning aims and objectives

Behind the corporate objectives, which in themselves offer the main context for the marketing
plan, will lie the "corporate mission," in turn provides the context for these corporate objectives.
In a sales-oriented organization, the marketing planning function designs incentive pay plans to
not only motivate and reward frontline staff fairly but also to align marketing activities with
corporate mission. The marketing plan basically aims to make the business provide the solution
with the awareness with the expected customers.
This "corporate mission" can be thought of as a definition of what the organization is, or what it
does: "Our business is ...". This definition should not be too narrow, or it will constrict the
development of the organization; a too rigorous concentration on the view that "We are in the
business of making meat-scales," as IBM was during the early 1900s, might have limited its
subsequent development into other areas. On the other hand, it should not be too wide or it will
become meaningless; "We want to make a profit" is not too helpful in developing specific plans.
Abell suggested that the definition should cover three dimensions: "customer groups" to be
served, "customer needs" to be served, and "technologies" to be used.[1] Thus, the definition of
IBM's "corporate mission" in the 1940s might well have been: "We are in the business of
handling accounting information [customer need] for the larger US organizations [customer
group] by means of punched cards [technology]."
Perhaps the most important factor in successful marketing is the "corporate vision." Surprisingly,
it is largely neglected by marketing textbooks, although not by the popular exponents of
corporate strategy — indeed, it was perhaps the main theme of the book by Peters and
Waterman, in the form of their "Superordinate Goals." "In Search of Excellence" said: "Nothing
drives progress like the imagination. The idea precedes the deed." [2] If the organization in
general, and its chief executive in particular, has a strong vision of where its future lies, then

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there is a good chance that the organization will achieve a strong position in its markets (and
attain that future). This will be not least because its strategies will be consistent and will be
supported by its staff at all levels. In this context, all of IBM's marketing activities were
underpinned by its philosophy of "customer service," a vision originally promoted by the
charismatic Watson dynasty. The emphasis at this stage is on obtaining a complete and accurate
picture.
A "traditional" — albeit product-based — format for a "brand reference book" (or, indeed, a
"marketing facts book") was suggested by Godley more than three decades ago:

1. Financial data—Facts for this section will come from management accounting, costing
and finance sections.
2. Product data—From production, research and development.
3. Sales and distribution data — Sales, packaging, distribution sections.
4. Advertising, sales promotion, merchandising data — Information from these
departments.
5. Market data and miscellany — From market research, who would in most cases act as a
source for this information. His sources of data, however, assume the resources of a very
large organization. In most organizations they would be obtained from a much smaller
set of people (and not a few of them would be generated by the marketing manager
alone).
It is apparent that a marketing audit can be a complex process, but the aim is simple: "it is only to
identify those existing (external and internal) factors which will have a significant impact on the
future plans of the company." It is clear that the basic material to be input to the marketing audit
should be comprehensive.
Accordingly, the best approach is to accumulate this material continuously, as and when it
becomes available; since this avoids the otherwise heavy workload involved in collecting it as
part of the regular, typically annual, planning process itself — when time is usually at a
premium.
Even so, the first task of this annual process should be to check that the material held in the
current facts book or facts filesactually is comprehensive and accurate, and can form a sound
basis for the marketing audit itself.
The structure of the facts book will be designed to match the specific needs of the organization,
but one simple format — suggested by Malcolm McDonald — may be applicable in many cases.
This splits the material into three groups:

1. Review of the marketing environment. A study of the organization's markets,

customers, competitors and the overall economic, political, cultural and technical
environment; covering developing trends, as well as the current situation.

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 2. Review of the detailed marketing activity. A study of the company's marketing mix; in
terms of the 7 Ps - (see below)
3. Review of the marketing system. A study of the marketing organization, marketing
research systems and the current marketing objectives and strategies. The last of these is
too frequently ignored. The marketing system itself needs to be regularly questioned,
because the validity of the whole marketing plan is reliant upon the accuracy of the input
from this system, and `garbage in, garbage out' applies with a vengeance.
 Portfolio planning. In addition, the coordinated planning of the individual
products and services can contribute towards the balanced portfolio.
 80:20 rule. To achieve the maximum impact, the marketing plan must be clear,
concise and simple. It needs to concentrate on the 20 percent of products or services,
and on the 20 percent of customers, that will account for 80 percent of the volume
and 80 percent of the profit.
 7 Ps: Product, Place, Price and Promotion, Physical Environment, People,
Process. The 7 Ps can sometimes divert attention from the customer, but the
framework they offer can be very useful in building the action plans.
It is only at this stage (of deciding the marketing objectives) that the active part of the marketing
planning process begins. This next stage in marketing planning is indeed the key to the whole
marketing process.
The "marketing objectives" state just where the company intends to be at some specific time in
the future.
James Quinn succinctly defined objectives in general as: Goals (or objectives) state what is to be
achieved and when results are to be accomplished, but they do not state "how" the results are to
be achieved.[3] They typically relate to what products (or services) will be where in what markets
(and must be realistically based on customer behavior in those markets). They are essentially
about the match between those "products" and "markets." Objectives for pricing, distribution,
advertising and so on are at a lower level, and should not be confused with marketing objectives.
They are part of the marketing strategy needed to achieve marketing objectives. To be most
effective, objectives should be capable of measurement and therefore "quantifiable." This
measurement may be in terms of sales volume, money value, market share, percentage
penetration of distribution outlets and so on. An example of such a measurable marketing
objective might be "to enter the market with product Y and capture 10 percent of the market by
value within one year." As it is quantified it can, within limits, be unequivocally monitored,
and corrective action taken as necessary.
The marketing objectives must usually be based, above all, on the organization's financial
objectives; converting these financial measurements into the related marketing measurements.
He went on to explain his view of the role of "policies," with which strategy is most often
confused: "Policies are rules or guidelines that express the 'limits' within which action should
occur. "Simplifying somewhat, marketing strategies can be seen as the means, or "game plan,"

14
by which marketing objectives will be achieved and, in the framework that we have chosen to
use, are generally concerned with the 8 P's. Examples are:

1. Price — The amount of money needed to buy products

2. Product — The actual product
3. Promotion (advertising)- Getting the product known
4. Placement — Where the product is sold
5. People — Represent the business
6. Physical environment — The ambiance, mood, or tone of the environment
7. Process — The Value-added services that differentiate the product from the competition
(e.g. after-sales service, warranties)
8. Packaging — How the product will be protected
(Note: At GCSE the 4 Ps are Place, Promotion, Product and Price and the "secret" 5th P is
Packaging, but which applies only to physical products, not services usually, and mostly those
sold to individual consumers)
In principle, these strategies describe how the objectives will be achieved. The 7 Ps are a useful
framework for deciding how the company's resources will be manipulated (strategically) to
achieve the objectives. However, they are not the only framework, and may divert attention from
the real issues. The focus of the strategies must be the objectives to be achieved — not the
process of planning itself. Only if it fits the needs of these objectives should you choose, as we
have done, to use the framework of the 7 Ps.

The strategy statement can take the form of a purely verbal description of the strategic options
which have been chosen. Alternatively, and perhaps more positively, it might include a
structured list of the major options chosen.
One aspect of strategy which is often overlooked is that of "timing." Exactly when it is the best
time for each element of the strategy to be implemented is often critical. Taking the right action
at the wrong time can sometimes be almost as bad as taking the wrong action at the right time.
Timing is, therefore, an essential part of any plan; and should normally appear as a schedule of
planned activities.Having completed this crucial stage of the planning process, to re-check the
feasibility of objectives and strategies in terms of the market share, sales, costs, profits and so on
which these demand in practice. As in the rest of the marketing discipline, employ judgment,
experience, market research or anything else which helps for conclusions to be seen from all
possible angles.
Detailed plans and programs
At this stage, overall marketing strategies will need to be developed into detailed plans and
program. Although these detailed plans may cover each of the 7 Ps (marketing mix), the focus
will vary, depending upon the organization's specific strategies. A product-oriented company

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will focus its plans for the 7 Ps around each of its products. A market or geographically oriented
company will concentrate on each market or geographical area. Each will base its plans upon the
detailed needs of its customers, and on the strategies chosen to satisfy these needs. Brochures
and Websites are used effectively.
Again, the most important element is, the detailed plans, which spell out exactly what programs
and individual activities will carry at the period of the plan (usually over the next year). Without
these activities the plan cannot be monitored. These plans must therefore be:

 Clear - They should be an unambiguous statement of 'exactly' what is to be done.

 Quantified - The predicted outcome of each activity should be, as far as possible,
quantified, so that its performance can be monitored.
 Focused - The temptation to proliferate activities beyond the numbers which can be
realistically controlled should be avoided. The 80:20 Rule applies in this context to.
 Realistic - They should be achievable.
 Agreed - Those who are to implement them should be committed to them, and agree that
they are achievable. The resulting plans should become a working document which will
guide the campaigns taking place throughout the organization over the period of the plan. If
the marketing plan is to work, every exception to it (throughout the year) must be
questioned; and the lessons learnt, to be incorporated in the next year's .

Content of the marketing plan

A marketing plan for a small business typically includes Small Business Administration
Description of competitors, including the level of demand for the product or service and the
strengths and weaknesses of competitors

1. Description of the product or service, including special features

2. Marketing budget, including the advertising and promotional plan
3. Description of the business location, including advantages and disadvantages for
marketing
4. Pricing strategy
5. Market Segmentation

1. Current Situation - Market Analysis

 market definition
 market size
 market segmentation
 industry structure and strategic groupings
 Porter 5 forces analysis
 competition and market share

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  competitors' strengths and weaknesses
 market trends
2. Current Situation - Consumer Analysis
 nature of the buying decision
 participants
 demographics
 psychographics
 buyer motivation and expectations
 loyalty segments
3. Current Situation - Internal
 company resources
 financial
 people
 time
 skills
 objectives
 mission statement and vision statement
 corporate objectives
 financial objective
 marketing objectives
 long term objectives
 description of the basic business philosophy
 corporate culture
4. Summary of Situation Analysis
 external threats
 external opportunities
 internal strengths
 internal weaknesses
 Critical success factors in the industry
 our sustainable competitive advantage
5. Marketing Research
 information requirements
 research methodology
 research results
6. Marketing Strategy - Product
 Unique selling proposition (USP)
 product mix
 product strengths and weaknesses

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  perceptual mapping
 product life cycle management and new product development
 Brand name, brand image, and brand equity
 the augmented product
 product portfolio analysis
 B.C.G. Analysis
 contribution margin analysis
 G.E. Multi Factoral analysis
 Quality Function Deployment
7. Marketing Strategy - segmented marketing actions and market share objectives
 by product
 by customer segment
 by geographical market
 by distribution channel
8. Marketing Strategy - Price
 pricing objectives
 pricing method (e.g.: cost plus, demand based, or competitor indexing)
 pricing strategy (e.g.: skimming, or penetration)
 discounts and allowances
 price elasticity and customer sensitivity
 price zoning
 break even analysis at various prices
9. Marketing Strategy - Promotion
 promotional goals
 promotional mix
 advertising reach, frequency, flights, theme, and media
 sales force requirements, techniques, and management
 sales promotion
 publicity and public relations
 electronic promotion (e.g.: web, or telephone)
 word of mouth marketing (buzz)
 viral marketing
10. Marketing Strategy - Distribution
 geographical coverage
 distribution channels
 physical distribution and logistics
 electronic distribution
11. Implementation

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  personnel requirements
 assign responsibilities
 give incentives
 training on selling methods
 financial requirements
 management information systems requirements
 month-by-month agenda
 Gantt chart using PERT or critical path analysis systems
 monitoring results and benchmarks
 adjustment mechanism
 contingencies (what ifs)
12. Financial Summary
 assumptions
 pro-forma monthly income statement
 contribution margin analysis
 breakeven analysis
 Monte Carlo method
 ISI: Internet Strategic Intelligence
13. Scenarios
 prediction of future scenarios
 plan of action for each scenario
14. Controls
 Performance indicator
 provide feedback mechanisms
15. Appendix
 pictures and specifications of the new product
 results from research already completed

Measurement of progress
The final stage of any marketing planning process is to establish targets (or standards) so that
progress can be monitored. Accordingly, it is important to put both quantities and timescales into
the marketing objectives (for example, to capture 20 percent by value of the market within two
years) and into the corresponding strategies.
Changes in the environment mean that the forecasts often have to be changed. Along with these,
the related plans may well also need to be changed. Continuous monitoring of performance,
against predetermined targets, represents a most important aspect of this. However, perhaps even
more important is the enforced discipline of a regular formal review. Again, as with forecasts, in
many cases the best (most realistic) planning cycle will revolve around a quarterly review. Best

19
of all, at least in terms of the quantifiable aspects of the plans, if not the wealth of backing detail,
is probably a quarterly rolling review — planning one full year ahead each new quarter. Of
course, this does absorb more planning resource; but it also ensures that the plans embody the
latest information, and — with attention focused on them so regularly — forces both the plans
and their implementation to be realistic.
Plans only have validity if they are actually used to control the progress of a company: their
success lies in their implementation, not in the writing'.

Performance analysis
The most important elements of marketing performance, which are normally tracked, are:
Sales analysis
Most organizations track their sales results; or, in non-profit organizations for example, the
number of clients. The more sophisticated track them in terms of 'sales variance' - the deviation
from the target figures — which allows a more immediate picture of deviations to become
evident.
`Micro-analysis', which is simply the normal management process of investigating detailed
problems, then investigates the individual elements (individual products, sales territories,
customers and so on) which are failing to meet targets
Market share analysis
Few organizations track market share though it is often an important metric. Though absolute
sales might grow in an expanding market, a firm's share of the market can decrease which bodes
ill for future sales when the market starts to drop. Where such market share is tracked, there may
be a number of aspects which will be followed:

 overall market share

 segment share — that in the specific, targeted segment
 relative share
Expense analysis
The key ratio to watch in this area is usually the `marketing expense to sales ratio'; although this
may be broken down into other elements (advertising to sales, sales administration to sales, and
so on).
Financial analysis
The "bottom line" of marketing activities should at least in theory, be the net profit (for all except
non-profit organizations, where the comparable emphasis may be on remaining within budgeted
costs). There are a number of separate performance figures and key ratios which need to be
tracked:

20
 gross contribution<>net profit
 gross profit<>return on investment
 net contribution<>profit on sales
There can be considerable benefit in comparing these figures with those achieved by other
organizations (especially those in the same industry); using, for instance, the figures which can
be obtained (in the UK) from `The Centre for Interfirm Comparison'. The most sophisticated use
of this approach, however, is typically by those making use of PIMS (Profit Impact of
Management Strategies), initiated by the General Electric Company and then developed by
Harvard Business School, but now run by the Strategic Planning Institute.
The above performance analyses concentrate on the quantitative measures which are directly
related to short-term performance. But there are a number of indirect measures, essentially
tracking customer attitudes, which can also indicate the organization's performance in terms of
its longer-term marketing strengths and may accordingly be even more important indicators.
Some useful measures are:

 market research — including customer panels (which are used to track changes over
time)
 lost business — the orders which were lost because, for example, the stock was not
available or the product did not meet the customer's exact requirements
 customer complaints — how many customers complain about the products or services, or
the organization itself, and about what
Use of marketing plans
A formal, written marketing plan is essential; in that it provides an unambiguous reference point
for activities throughout the planning period. However, perhaps the most important benefit of
these plans is the planning process itself. This typically offers a unique opportunity, a forum, for
information-rich and productively focused discussions between the various managers involved.
The plan, together with the associated discussions, then provides an agreed context for their
subsequent management activities, even for those not described in the plan itself. Additionally,
marketing plans are included in business plans, offering data showing investors how the
company will grow and most importantly, how they will get a return on investment.

Budgets as managerial tools

The classic quantification of a marketing plan appears in the form of budgets. Because these are
so rigorously quantified, they are particularly important. They should, thus, represent an
unequivocal projection of actions and expected results. What is more, they should be capable of
being monitored accurately; and, indeed, performance against budget is the main (regular)
management review process.

21
The purpose of a marketing budget is, thus, to pull together all the revenues and costs involved in
marketing into one comprehensive document. It is a managerial tool that balances what is needed
to be spent against what can be afforded, and helps make choices about priorities. It is then used
in monitoring performance in practice.
The marketing budget is usually the most powerful tool by which you think through the
relationship between desired results and available means. Its starting point should be the
marketing strategies and plans, which have already been formulated in the marketing plan itself;
although, in practice, the two will run in parallel and will interact. At the very least, the rigorous,
highly quantified, budgets may cause a rethink of some of the more optimistic elements of the
plans.

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 COMPANY PROFILE
AMUL

Amul (Anand Milk Union Limited)

Type Cooperative

Industry Dairy/FMCG

Founded 1946

Headquarters Anand, Gujarat, India

Key people Chairman, Gujarat Co-operative

Milk Marketing Federation Ltd.
(GCMMF)

Products See complete products listing

Revenue US$3.1 billion (2013–14)

Number of 750 employees of Marketing

employees Arm. However, real pool consist
of 3 million milk producer
members

Slogan The Taste of India

Website www.amul.com

23
The Amul Plant at Anand showing the milk silos
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.[2] The
word amul is derived from the Sanskrit word amulya, meaning rare, valuable .[3] The co-
operative was initially referred to asAnand Milk Federation Union Limited hence the name
AMUL.
Formed in 1946, 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 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. In the process Amul became the largest food brand in India and has
ventured into markets overseas.
Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is
credited with the success of Amul.

History
Amul the co-operative registered on 1 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. Moreover, the government had given monopoly rights to
Polson to collect milk from mikka and supply it to BoBBAy 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 BoBBAy 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.[8] 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

24
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 "denoted 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.[8] To combine forces and expand the
market while saving on advertising and avoid competing against each other, the GCMMF, an
apex 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.
Adding to the success, Dr. Madan Mohan Kashyap (faculty Agricultural and Engineering
Department, Punjab Agricultural University Ludhiana), Dr. Bondurant (visiting faculty) and Dr
Feryll (former student of Dr Verghese Kurien), visited the Amul factory in Gujarat as a research
team headed by Dr. Bheemsen. Shivdayal Pathak (ex-director of the Sardar Patel Renewable
Energy Research Institute) in the 1960s. A milk pasteurization system at the Research Centre of
Punjab Agricultural University (PAU) Ludhiana was then formed under the guidance of
Kashyap.

25
About GCMMF
The GCMMF is the largest food products marketing organisation of India. It is the apex
organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing organisation for
products under the brand name of Amul and Sagar.[15]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.[citation needed] The daily milk
procurement of GCMMF is around 13 million liters per day. It collects milk from about 16914
village milk cooperative societies, 17 member unions and 24 districts covering about 3.18
million milk producer members. More than 70% of the members are small or marginal farmers
and landless labourers including a sizeable population of tribal folk and people belonging to the
scheduledcastes.[15]

The three-tier "Amul Model"

The Amul Model is a three-tier cooperative structure. This structure consists of a dairy
cooperative society at the village level affiliated to a milk union at the district level which in turn
is federated into a milk federation at the state level. Milk collection is done at the village dairy
society, milk procurement and processing at the District Milk Union and milk products
marketing at the state milk federation. The structure was evolved at Amul in Gujarat and
thereafter replicated all over the country under the Operation Flood programme. It is known as
the 'Amul Model' or 'Anand Pattern' of dairy cooperatives.
The main functions of the VDCS are:

 Collection of surplus milk from the producers of the village and payment based on
quality and quantity,
 Providing support services to the members like veterinary first aid, artificial insemination
services, cattle-feed sales, mineral mixture sales, fodder and fodder seed sales, conducting
training on animal husbandry and dairying,
 Selling liquid milk for local consumers of the village,
 Supplying milk to the District Milk Union.
State Cooperative Milk Federation (Federation)
The main functions of the federation are as follows:

 Marketing of milk and milk products processed/manufactured by Milk Unions,

 Establish a distribution network for marketing of milk and milk products,
 Arranging transportation of milk and milk products from the Milk Unions to the market,
 Creating and maintaining a brand for marketing of milk & milk products,
 Providing support services to the Milk Unions and members like technical inputs,
management support and advisory services,

26
  Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions,
 Establish feeder-balancing dairy plants for processing the surplus milk of the Milk
Unions,
 Arranging for common purchase of raw materials used in manufacture/packaging of milk
products,
 Decide on the prices of milk and milk products to be paid to Milk Unions,
 Decide on the products to be manufactured at Milk Unions and capacity required for the
same.
 Conduct long-term milk production, procurement and processing as well as marketing
planning.
 Arranging finance for the Milk Unions and providing them technical know-how.
 Designing and providing training in cooperative development and technical and
marketing functions.
 Conflict resolution and keeping the entire structure intact.
Today, there are around 176 cooperative dairy unions formed by 125,000 dairy cooperative
societies, having a total membership of around 13 million farmers on the same pattern, who are
processing and marketing milk and milk products profitably, be it Amul in Gujarat or Verka in
Punjab, Vijaya in Andhra Pradesh, Milma in Kerala, Gokul in Maharashtra, Saras in Rajasthan or
a Nandini in Karnataka. This process has created more than 190 dairy processing plants spread
all over India with large investments by these farmers' institutions. These cooperatives today
collect approximately 23 million kg of milk per day and pay an aggregate amount of more than
Rs. 125 billion to the milk producers in a year.

Impact of the "Amul Model"

The effects of Operation Flood Programme are appraised by the World Bank in an evaluation
report. It has been proved that an investment of Rs. 20 billion over 20 years under Operation
Flood in the 1970s and 80s has contributed in increase of India’s milk production by 40 million
metric tonnes (MMT), i.e., from about 20 MMT pre-Operation Flood to more than 60 MMT at
the end of Operation Flood.
Thus, an incremental return of Rs. 400 billion annually have been generated by an investment of
Rs. 20 billion over 20 years. India’s milk production continues to increase and now stands at
90 MMT(as of 2012). Despite this fourfold increase in production, there has not been a drop in
the prices of milk during the period while production has continued to grow.
Due to this movement, the country’s milk production tripled between the years 1971 and 1996.
Similarly, the per capita milk consumption doubled from 111 gm per day in 1973 to 222 gm per
day in 2000.

27
The Amul brand
GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50
sales offices spread all over the country, more than 5000 wholesale dealers and more than
700000 retailers.
Amul became the world's largest vegetarian cheese and the largest pouched-milk brand.
AMUL is also the largest exporter of dairy products in the country. AMUL is available today in
over 40 countries of the world. AMUL is exporting a wide variety of products which include
whole and skimmed milk powder, cottage cheese (Paneer), UHT milk, clarified butter (Ghee)
and indigenous sweets.
The major markets are USA, West Indies, and countries in Africa, the Gulf Region,
and SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China, and others such
as Mauritius, Australia, Hong Kong and a few South African countries. Its bid to enter the
Japanese market in 1994 did not succeed, but it plans to venture again. [17]
In September 2007, Amul emerged as the leading Indian brand according to a survey by
Synovate to find out Asia's top 1000 Brands.
In 2013, Amul was named the Most Trusted brand in the Food and Beverages sector in The
Brand Trust Report, published by Trust Research Advisory,[19] where as in the 2014 edition
of The Brand Trust Report,[20] Amul is ranked 7th in the list of India's Most Trusted Food and
Beverages brands.

ORGANIZATION CHART
PCDF has ten divisions. Every division has manager who is responsible to General
Manager. G. M. of every division is responsible to Managing Director.

The division heads of each division shall be responsible for the performance and of their
respective division not only at the head office but also in the units / unions in the field.
These officers shall not merely insure achievement of the targets fixed and implementation
of systems for their functional areas but promptly attend to the problems of the
units/unions.
The divisional heads shall discharging their duties within the policy frame laid down by
the Managing Director and subject of his control & supervision only important
performance and control reports , matters , questions involving exception to approved policy
, systems development and other important matters need to be put up before the
Managing director.
Bill before approval & implementation ; be routed through the Management Service
Division (MSD) , which will check the plan to see whether they are in conformity with
corporate objective and will see that that they are in conformity with other plans and
system and contradiction occurs.

28
The divisional heads should see the terms made by them and their officers and
purposively designate link officers for each officer in their division. All letters to the
NDDB shall before dispatch , be sent to the MSD , which will take speedy clearance at
the appropriate level. A copy of all such letters shall be the CPM section the MSD.

IV. PRODUCTS RANGE

Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti
Dahi, Yoghurt, Buttermilk, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns,
flavoured milk, basundi, Amul Pro brand and others. Amul PRO is a recently launched brown
beverage just like bournvita and horlicks offering whey protein, DHA and essential nutrients. In
January 2006, Amul launched India's first sports drink, Stamina, which competes with Coca
Cola's Powerade and PepsiCo'sGatorade.
Amul offers mithaimate which competes with Milkmaid by Nestle by offering more fat at lower
price.
In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product
offering in the milk products segment. Other Amul brands are Amul Kool, a low-calorie thirst
quenching drink; Masti Butter Milk; and Kool Cafe, ready to drink coffee.
Amul's icecreams are made from milk fat and thus are icecreams in real sense of the word, while
many brands in India sell frozen desserts made from vegetable fat.
Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing
Award for 2007.

UHT products and impact

Over the years Amul has been witnessing strong growth in this portfolio,with the segment
growing at 53%, as a result of growing consumer awareness and demand for good quality
milk,the urban population has especially been showing great interest in long life UHT products
like Amul Taaza,which are packed in Tetra Pak cartons,which undergoes UHT treatment to
remove all harmful microorganisms while retaining the nutrition in the milk.Today Amul sells
around 4-500,000 litres 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 by penetrating the deeper and vast markets by
maintaining long shelf life of milk,without the need of maintaining cold supply chains.

Any Time Milk (ATM) Machine

Amul has installed a "Any Time Milk" machine which dispenses a 300-ml pouch of fresh milk
for Rs 10, at Anand's Amul Dairy. As a first step, Amul plans to install six such ATMs in Anand
itself. According to Rahul Kumar, MD of Amul Dairy, Amul wants to add a whole range of dairy
products, which could be dispensed through these machines.

29
 ADVERTISING

An Amul butter ad on Pakistan'sKargil War fiasco. The image shows the "Amul baby"
between George Fernandes and Atal Bihari Vajpayee.
In 1966, Amul hired Sylvester, 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.[25] 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
policy of not backing down. Some of the more controversial Amul ads include one commenting
on the Naxalite uprising in West Bengal, on the Indian Airlines employees strike, and one
depicting the Amul butter 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.
Amul hired DraftFCB+Ulka for the brands of Amul milk, chocolates, paneer, ghee, ice-cream.

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. It starredSmita Patil, Girish Karnad, Naseeruddin Shah and Amrish
Puri. The film was financed by over five lakh rural farmers inGujarat who contributed Rs 2 each
to its budget. Upon its release, these farmers went in truckloads to watch 'their' film, making it a
commercial success. Manthan was chosen for the 1977 National Film Award for Best Feature
Film in Hindi.

30
 COLLECTION AND DISTRIBUTION OF MILK
The report present detailed information about the Lucknow Milk Union (Amul ) its
evolution and organization structure.
Dairy work happens through various procedures. Basic of the dairy work is like
this structure –
 Milk Collection Mechanism
 Milk Distribution Mechanism

Collection of Milk Dairy (Reprocessing Distribution

of milk) of milk

Amul is the brand name of products of Luknow Producers Co-operative milk

union. It is a big co-operative unit based on the values of understanding co-operation
profit for milk producers and providing quality products to consumers at a cheaper price.
“AMUL ”
does maximum utilization of milk to increase milk efficiency in reasonable costs of
production and hence overall cost.
‘AMUL ’ work may be divided into 3-subunites.
a. Marketing
b. Administration and Production
c. Industry Unit
Administration co-ordinates various function , looks after salaries and wages and various
human resources problems of production. The industry unit is engaged in the function of
producing various industrial products like milk , butter etc.
Whereas the marketing is engaged in distribution and proper sale of these products.

“PUBLIC RELATION means the efforts made by industries , unions , corporation ,

occupations , government or other organizations to establish productive relationship report
and partnership”
PUBLIC RELATION is popularly defined as on the other basis of acceptance of well-
organized efforts by society for the welfare and development of entire community is
termed as ‘PUBLIC RELATION’.

31
 DAIRY SUPLY CHAIN STRUCTURE
Member Farmer

Society
Chilling Center
Dairy

Inter Dairy Transfer

Milk Other Milk

Product
Parlour Institution Exclusive Redistribution
Agent Stockist
Vender Retailer

CUSTOMER
The Amul Dairy did a lot’s of efforts to collect the milk. It is a dynamic and complex
field involving many workable principles and production over a period of years.

32
 COLLECTION OF MILK

SURVEY
Firstly , LPCM union does some survey in rural areas. The survey team tells about the
societies activities to that farmer who has sufficient milk.

ROUTES AND SOCIETIES

Initially , AMUL societies were established on those routes where there is possibility of
milk. Milk societies cater to a cluster of 6-10 villages each. They are well connected
through road network to facilitate milk transportation to larger towns. At present there are
10 routes and 466 societies of Amul Dairy.
Collected milk from societies is finally sent to the dairy for various treatments and tests.

RATES OF MILK
The milk collected from various societies is brought to the dairy and here it is weighted
and duly recorded in the register. The capacity of the milk Can is approximately 50
liters. Afterwards , the milk is sent to various laboratory processes. The quality of milk is
also tested there.
Lab workers test the milk for FAT & SNF percentage and also determine whether the
milk is fresh or sour.
After performing various tests , the Procurement and Input Department decides the quality
of milk and then a valid rate of milk is given to the member farmer accordingly.

33
AIMS OF L.P.C.M. UNION LTD :

Co-operative union has some target which they fulfill every year.
The aims are :-
1. No. of Societies
2. Total no of members
a) Number of ladies member
b) Number of SC , ST Caste Ladies
c) Number of SC , ST Caste Members
d) Number of Backward Caste Members
e) Number of I.R.D.P. Members
3. No of Farmer Members
4. Animal health primary treatment aid
5. Vaccination
6. Sterility Prohibition
7. Balance diet of animals
8. Production of green grass
9. Artificial breeding
10. Quantity of seeds (in kg.)
11. Purchasing of liquid milk and products of milk
a) Average of liquid milk purchasing (in thousand liters)
b) Purchasing of Ghee (in thousand liters)
c) Butter (in thousand liters)
12. Benefits of society / Distribution of bonus
a) Pure benefits of society numbers
b) Societies number (bonus)
c) Distribution of Bonus Money (in lakh Rs.)

34
 DISTRIBUTION OF MILK

The 4 P’s Are always influencing the advertising process and decision.
These 4 P’s are :
1. Promotion
2. Product
3. Price
4. Place
The channel of distribution is the path , which the products takes while moving to the
ultimate consumers.
The term channel of distribution refers to network of middleman through whom the
product flows till it finally reaches to the hands of the actual users.
Under the broad name of ‘place’ which is a marketing component , the most common
channel for consumer’s goods is manufacturer – wholesaler – retailer – consumer.
For industrial products it may be manufacturer – sole-selling agents – distributors – dealer
and finally users.

35
 PROCESS OF DISTRIBUTION

DAIRY DISTRIBUTION SYSTEM AN OVERVIEW : -

AGENTS :-
Firstly , Agents enrolled with Distribution Department (Sales dept) of LPMU gives the
location of place where they require the milk. Then the supply vehicle unloads the
required amount of milk to that agent shop. All demands get through supply vehicles.
Processed milk and other related products need different distribution structure. The
difference in the distribution structure is for the following reasons.
 Different time of sale
 Processed milk can be sold from agents or outlets only early in the morning and
evening.
 Different service level from retail. Unlike processed milk mozzarella cheese many
need more customer education and hence is sold through premium retail store.

 Different shelf life whereas processed milk is still highly perishable- Butter, Ghee
or paneer have better shelf life and can be sold through normal FMCH distribution
structure.

Milk union sells their products through agents. Lucknow has a total of approx. 1900
outlets selling milk and about 800 agents are serviced by AMUL . Lucknow has a huge
demand for milk.
The sale of milk is highly skewed towards the early morning hours . In Lucknow around
40% of the agents temporary structures for selling milk in morning. 40% of the agents
have a milk booth or operate from there houses and balance 20% is regular retail outlets
selling milk too.
Dairy use milk truck or van (painted with Logo and Slogan) for distributing the products
to retailers.

36
CHANNEL GF DISTRIBUTORS

Some types of agent are like that :-

 Retailer
 Bakery or confectionary shop
 Road side seller
 Hotels / Institutional

PROCESS MAPPING
Distribution vans are used for supplying the processed milk and curd to agents. Agents
are hubs identified by Dairy for distribution of its products. Agents generally sell
exclusively dairy’s brand of products. Retailer deposits security and should purchase milk
on daily basis. Dairy officially can impose penalty in case agents are found selling other
brand of milk.
ROUTE PLANNING
There are 37 routes in Lko. Route planning has been done keeping primarily the total
time available and no of outlets for any given route. No of outlet in a route is a
function of -
 Approximate purchase by the agent’s en-route. Purchase governs the time taken
for loading / unloading at any given outlet to be kept for that route.
 Terrain / accessibility of the outlets.
 Distance between the outlets. The terrain / accessibility and distance between
outlets determines the time taken for inter outlet travel.
 Institutions est. en-route. Institutions have their own systems for entry / exit and
documentation hence , routes having higher no. of institutions would have lesser
no. of outlets for the route.

All routes have been encoding with relation to there respective district sand outlets
have been encoded for their respective routes. This has been done to track sales at
retail level , management of empty crates etc. separate routes have been identified
for institutional sales .

37
 CONTAINERIZATION
CONTAINERIZATION of vehicle is required to facilitate stacking of crates that fast
empty and milk crates movement at retail points while maintaining the temperature inside
vehicle. Container doesn’t become a bottleneck in fast moment of vehicles (fast movement
is required to finish milk supply early in night and to preserve the quality of milk).
Milk pouches are left at shopkeeper premised in night to be sold only in morning. Most
of the retailer doesn’t have freezer for storing milk.
The delivery of milk crates is in three stages.
 Crates are downloaded from the container.
 Crates are bought near the shop entrance.
 Shop keeper puts creates inside the shop / deep freezer.

Containerization would reduce handling losses during these activities. The vehicle crew
levels the crates on the road and move to its next service point. The crew needs to be
trained to deal with the end customer of dairy appropriately. With increasing competition ,
all organization would have to think of :
 Keeping the end customer happy.
 Providing the best quality product and service.
 Maintaining a social , friendly and innovative corporate
image.

Competition is hooting up in dairy sector. Dairy is expected to have growth rate of 20%
or more after the year 2002. Multinationals like Nestle have a strong presence in dairy
items sold through FMCG retail distribution channels , however , these factor could
become a leveler for any organization.

TYPE OF VEHICLE
1. BIG VEHICLE Tata 407 DCM Toyota
2. SMALL VEHICLE Tempos

The dispatch sheet is given to the attendant. Dispatch sheet also doubles as a gate pass
for vehicle movement out of DAIRY. Amul has a separate document dispatch summery
for gate pass. Physical enumeration is done at gate by security to cross check the figures
mentioned in the dispatch statement vehicles out of the factory premises. The dispatch
sheet and empty trays are returned to dairy official the next day.
USE OF COMPUTER
According to the modern professional activities , computer is being used in the different
works of the union. A new electric milk-weighting machine is also planted which is
joined with the computers. The computer also records the amount of milk collected under
the society ’ name.

38
MARKETING

Lucknow milk union in the recent three-four year has been on the top for milk
production and marketing in state. The union now had to work in collaboration with the
regional dairies , which is affecting its profit a lot. In these gears milk production and
production of other milk products by the unit has been very good. In addition to milk ,
union has also fulfilled the needs of butter , ghee , cheese , flavored milk , cakes , Ice-
creams in the state more then the local demand. Cheese and butter through the medium
of PCDF are sent for marketing on the state and national Levels.

THE PROJECT PROFILE & REVIEW OF LITERATURE

Marketing strategy implementation research, five organizational levels can be distinguished.
They are: corporate level, strategic business unit (SBU) level, functional level, operational level
and mixed levels (such as corporate and SBU level, SBU and functional level, inter-functional
levels, corporate-SBU-functional levels, etc.).Surprisingly few researchers focus on the
implementation of corporate levelstrategies, such as Wernham (1985) and Schmidt & Brauer
(2006), while many examine SBU level strategies (Gupta & Govindarajan, 1984; White, 1986;
Govindarajan, 1988; Govindarajan, 1989; Govindarajan & Fisher, 1990; Skivington & Daft,
1991; Roth & Schweiger & Morrison, 1991; Floyd & Wooldridge, 1992b; Waldersee &
Sheather, 1996; Nilsson & Rapp, 1999; Chimhanzi & Morgan, 2005; Olson Slater & Hult, 2005;
Schaap, 2006; Brenes & Mena & Molina, 2007). The same holds true for functional strategies:
We have found eight studies that focus on the implementation of such strategies, namely Rapert
& Lynch & Suter (1996), Sashittal & Wilemon (1996), Piercy (1998), Noble (1999a), Noble &
Mokwa (1999), Chimhanzi (2004), Qi (2005), Viseras & Baines & Sweeney (2005). Most of
these studies, however, focus on marketing strategy (such as Sashittal & Wilemon, 1996; Piercy,
1998; Noble & Mokwa, 1999, Chimhanzi, 2004). There are few studies dedicated to the
implementation of other functional strategies (this is clearly an area of future research). The only
other study of functional strategy implementation that we have been able to identify is Viseras,
Baines and Sweeney‟s study (2005) in the context of manufacturing strategies. This study
focuses on the key success factors in the project management for the implementation of strategic
manufacturing initiatives.
Few studies focus on the actual operational level of strategy implementation, such as Bantel
(1997), Homburg & Krohmer & Workman (2004). Bantel (1997) analyzes the effects of two key
aspects of product strategy (product leadership and product/market focus) on performance, and
on two aspects of strategic implementation (stakeholder input and employee empowerment).
This study also emphasizes the relationship between product strategy and several strategic
implementation variables. Homburg, Krohmer & Workman (2004) point out that market
orientation plays a key role for the successful implementation of a PPD (premium product
differentiation) strategy.

39
There are some studies which cannot be classified into the above categories. Consequently, we
classify them into a group called mixed level studies: Gupta (1987), Beer & Eisenstat (2000) and
Hrebiniak (2006) have carried out research on corporate and SBU-level strategy. Walker and
Ruekert (1987) analyze three levels of strategy – orporate, SBU and functional. Higgins (2005)
even focuses on four types of strategies: corporate, business, functional and process. Process
strategies, the last type normally cut across functions and are aimed at integrating organizational
processes across the organization in order to make them more effective and more efficient.
Slater and Olson (2001) analyze marketing‟s contribution to the implementation of business
strategy. The mixed studies category also includes articles that focus on the role of project
management for strategy implementation. Okumus (2001), for example focuses on the
implementation of a yield management project and a key client management project in two
hotels. Peng and Litteljohn (2001) investigate three hotel chains implementing a strategic
initiative on yield management. Grundy (1998) examines the synergies among project
management and strategy implementation and reviews strategy tools that may help in project
management.
Finally, there are many studies that are not sufficiently explicit regarding their scope concerning
strategic levels. Examples of such ambiguous studies are Bourgeois Ш and Brodwin (1984), Nutt
(1986, 1987, 1989), Noble (1999b), Lehner (2004), Higgins (2005), Harrington (2006), and
Schaap (2006). We can draw multiple conclusions based on our analysis of the treatment of
organizational levels in prior studies of strategy implementation. We note that –among the five
strategy levels – the SBU-level (14 articles), the functional- level (8 articles) and mixed levels (9
articles) have received more attention than the other two levels, corporate (2 articles) and
operational (2 articles). Many studies (25 articles) do not even indicate at which level their
discussion of strategy implementation is located.
Two calls to action result from these findings. First, the implementation of corporate strategies is
an under-researched area (perhaps with the exception of post-merger integration research that we
have excluded in our review) and should be given more research attention. Second, future
strategy implementation research should pay attention to explicitly indicate the level of analysis.
Within the functional level, another finding revealed that marketing is the prevailing domain,
compared with other functional areas (such as manufacturing, R&D, HR, accounting etc.). In
terms of promising future research on strategy implementation, we can observe that there are
very few studies that have examined the inter-relationships of functional and business strategies.
One such study focuses on marketing‟s contribution to the implementation of business strategy
(Slater & Olson, 2001). Another study has examined the mutual influence of functional
departments‟ relationships on strategies, which seems a highly relevant area to improve our
understanding of strategy implementation: Chimhanzi (2004) has examined the impact of
marketing and HR interactions on marketing strategy implementation.
Organizational types
Organizational types, as stated earlier, refer to the characteristics of organizations: if they are
private or state-owned, local or multinational. As far as ownership forms are concerned, strategy

40
implementation studies discuss both, state-owned and privately held companies. Wernham
(1985), for example, explores the reality of strategy implementation in a U.K. nationalized
company, British Telecom (BT). Alexander (1985) surveys 93 private sector firms through a
questionnaire. Qi (2005) issues questionnaires to the head offices of 800 private companies in the
UK. Noble‟s (1999a) study spans several types of organizations – a national airline, a major
financial services firm, a leading packaged goods company, a provider of emergency fire and
medical services, and a leading firm in the imaging technology industry. Some of the researched
companies focus on their domestic markets, while others are multinational corporations. Rapert,
Velliquette and Garretson‟s (2002) study on strategy implementation takes a nationwide sample
of 1000 CEOs of general service hospitals, which are members of
the American Hospital Association (AHA); Roth & Schweiger & Morrison (1991) and Kim &
Mauborgne (1991, 1993) study global strategy; Okumus (2001) investigates two international
hotel groups; Forman and Argenti (2005) select five multinational companies as samples,
namely Accenture, Dell, FedEx, Johnson & Johnson, Sears. In conclusion, the subjects of
strategy implementation studies are not only state-owned corporations, but mostly private
corporations, not only local firms but also multinational firms. However, there have been no
studies comparing similarities and differences of strategy implementation among private
corporations and state-owned corporations, or among local firms and multinational firms. We
thus do not know which specific differences exist regarding strategy implementation in these
various forms organizations. This clearly is another interesting avenue for future research.

RELEVANCE OF THE TOPIC

The relevance of the topic is the first step to a successful Research process. Project undertaken
the problem of analyzing the Marketing strategy of Amul.

PROBLEM ENVIRONMENT
The problem formulation is the first step to a successful Research process. Project
undertaken the problem of analyzing the Marketing strategy of Amul

41
 OBJECTIVE OF STUDY
1) To study marketing strategy of Amul.

2) To study the satisfaction level with marketing strategy of Amul.

3) To study the views of corporate customer for marketing strategy .

4) To study impact of marketing strategy on Amul .

5) How to Promote the marketing strategy of Amul.

SCOPE OF STUDY
The scope formulation is the first step to a successful Research process. Project undertaken the
problem of analyzing the Marketing strategies of Amul.

IMPORTANCE AND USE OF THE STUDY

To keep things in mind that as the ever changing competitive business environment. New
thoughts and ideas should pour into its, Research & Development to innovate its existing
products which should be beyond competitors comprehension.
This study enables the user with answer to formulate an effective marketing strategy with a
broader prospective to tap areas where it did not feel the need earlier, hence the decision of
whether to penetrate this section or not can be found out at the end of the data analysis.
It also gives an idea of the potential of our business in the future & the fluctuation in prices from
time to time & from product to product.
Special reference is made to the improvement of ability of product in terms of packaging&
product innovations & advertisement always means to cut down competitors.

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 RESEARCH METHODOLOGY

INTRODUCTION
This chapter aims to understand the research methodology establishing a framework of
evaluation and revaluation of primary and secondary research. The techniques and concepts used
during primary research in order to arrive at findings; which are also dealt with and lead to a
logical deduction towards the analysis and results

RESEARCH DESIGN
The research design applied here was exploratory research
Exploratory Research is one in we don’t know about the problem, we have to find about the
problem and then work on solving the problem. Whereas in case of descriptive research, we
know the problem, we just have to find the solution to the problem. Generally descriptive
research design is applied after exploratory research design.
Here after doing the secondary research, we found the general perception about the retail baking
but then in second phase we tried to figure out where the difference lies and on what basis the
banks differ from each other
RESEARCH TOOL
Research tool
The purpose is to first conduct a intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which
certain issues shall be selected, which remain unanswered , this shall be further taken up in the
next stage of secondary research. This stage shall help to restrict and select only the important
question and issue, which inhabit growth and segmentation in the industry.
DATA COLLECTION:
Both primary and secondary data have been collected very vigorously
Secondary data: it is collected by the study of various reports. The reports studied under
secondary data. Primary Data was taken with questionnaire

THE RESEARCH REPORT

The report is the result of a survey which was undertaken in Lucknow city. The objectives of
the project has been fulfilled by getting response from the customer associated to these segments
through a personal interview in the form of a questionnaire. The responses available through the
questionnaire are used to evaluate the Marketing strategy of Amul and the willingness of the
customer to purchase its products on future.
The project also covers an analysis of the switch over of customers to competitors products in the
market.

43
 THE RESEARCH PROBLEM
The problem formulation is the first step to a successful Research process. Project
undertaken the problem of analyzing the Marketing strategies in Amul

THE RESEARCH OBJECTIVE

Based on the problem the objective of the research is divided into two which are
as follows:
Primary Objective:
 To study Marketing strategies of Amul.
Secondary Objective:
 Analyse customer satisfaction for different Amul products.
 Analyse the customer behaviour of Amul.

THE RESEARCH DESIGN

The research design used in the project is exploratory design. The investigation
is carried upon the customers in Lucknow city. The reason for choosing this design is to get
responses from the customers so that their buying behaviour about the products of the company
and their loyalty could be predicted.

THE DATA SOURCE

The data has been taken from two sources
 Primary data source
The primary data source has been collected through questionnaire by personally interviewing
each respondent on a number of queries structured in a questionnaire.
 Secondary data source
Secondary data was collected from following sources
Prior research reports
Websites
Books
Newspaper
Personal consultation
THE AREA OF WORK
The field work is conducted in the Lucknow city in various Places like Mall,
Showroom and retailers situated in different location all over the city.

THE SAMPLE SIZE

The sample size consists of 100 units out of which the most logical and non
biased response are selected thus the sample size is taken out to be 100 units.

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 DATA ANALYSIS AND INTERPRETATION
1. Do you like the idea of purchasing Amul products?

Yes 87
No 13

13%

87%

Yes No

INTERPRETATION
87% respondent said that they have idea of purchasing Amul products but 13% are not

45
2. Have you ever purchase product of Amul ?

Yes 77
No 23

23%

77%

Yes No

INTERPRETATION
77% respondent said that they have ever purchase product of Amul but 23% are not

46
3. What helps you to decide which product of Amul you purchase ?

TV Advertisement 23
Personal recommendation 36
Special offer 11
Radio advertising 17
News paper 7
Word of mouth 6

7% 6% 23%
17%

11%
36%

TV Advertisement Personal recommendation

Special offer Radio advertising
News paper Word of mouth

INTERPRETATION
23% respondent said that they decide to purchase the product of Amul by TV advertisement, 36 personal
recommendation, 11% special offer, 17% radio advertising, 7% from News paper and 6% word of mouth.

47
4. Howfrequently you see advertisement of Amul product ?
Weekly 27
Monthly 37
daily 27
None 19

17% 25%

25%
33%

Weekly Monthly daily None

INTERPRETATION
25% respondent said that they have see advertisement of Amul product weekly, 33% monthly, 25% daily, but 17%
none.

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5. For which one of the following purpose you visit in your product ?

Purchasing brand goods 57

Purchasing local goods 23
Only gathering information 11
Others 9

9%
11%

57%
23%

Purchasing brand goods Purchasing local goods

Only gathering information Others

INTERPRETATION
57% respondent said that they have purpose to visit product purchasing brand goods, 23% purchasing local goods,
11% only gathering information and 9% others.

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6. What according to you are attractive features that buy Amul product ?

Quality 32
Economy 49
Taste 19

19%
32%

49%

Quality Economy Taste

INTERPRETATION
32% respondent said that they have attractive features that buy Amul product Quality, 49% Economy, 19% Taste.

50
7 Are you satisfy with Amul Product ?

Yes 91
No 9

9%

91%

Yes No

INTERPRETATION
91% respondent said that they satisfied buy 9% no.

51
8. Do according to you Amul’s product have changed the way the marketing strategy towards milk product ?

Yes 71
No 29

29%

71%

Yes No
INTERPRETATION
71% respondent said that Amul’s product have changed the way the marketing strategy towards milk product Yes
but 29% said no.

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9. Do you suggest Amul products to others
Yes 89
No 11

11%

89%

Yes No
INTERPRETATION
89% respondent said that they suggest Amul products to others yes but 11 said no.

53
10. How will you rate your present Amul product performance?
Poor 7
Satisfactory 23
Fair 27
Good 21
Very good 13
Excellent 9

9% 7%
13%
23%

21%
27%

Poor Satisfactory Fair Good Very good Excellent

INTERPRETATION
7% respondent said that they rate your present Amul product performance poor, 23% satisfactory, 27% fair, 21%
good, 13% very good, 9% excellent.

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11. Which service provider are you using?

Amul 37
parag 32
Gyan 23
Others 8

8%
23% 37% Amul
Parag
Gyan
Others
32%

INTERPRETATION
37% respondent said that they were using Amul, 32% Parag, 23% Gyan and 8% others.

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 FINDINGS
 87% respondent said that they have idea of purchasing Amul products but 13% are not
 77% respondent said that they have ever purchase product of Amul but 23% are not
 23% respondent said that they decide to purchase the product of Amul by TV advertisement, 36 personal recommendation, 11%
special offer, 17% radio advertising, 7% from News paper and 6% word of mouth.
 25% respondent said that they have see advertisement of Amul product weekly, 33% monthly, 25% daily, but 17% none.
 57% respondent said that they have purpose to visit product purchasing brand goods, 23% purchasing local goods, 11% only
gathering information and 9% others.
 32% respondent said that they have attractive features that buy Amul product Quality, 49% Economy, 19% Taste.
 91% respondent said that they satisfied buy 9% no.
 71% respondent said that Amul’s product have changed the way the marketing strategy towards milk product Yes but 29%
said no.
 89% respondent said that they suggest Amul products to others yes but 11 said no.
 7% respondent said that they rate your present Amul product performance poor, 23% satisfactory, 27% fair, 21% good, 13%
very good, 9% excellent.
 37% respondent said that they were using Amul, 32% Parag, 23% Gyan and 8% others.

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 LIMITATION
Though, best efforts have been made to make the study fair, transparent and error free. But there might be
some inevitable and inherent limitations. Though outright measure are undertaken to make the report most accurate.
The limitation of the survey are narrated below:
 The project is valid for Lucknow city only.
 It was not possible to cover each and every respondent due to time constrains.
 There may be some biased response form the respondents
 Some respondents did not provide the full data.
 Unwillingness on the part of the customers to disclose the information as per the questionnaire.
 The decisiveness on the part of the customers regarding some question hence difficulty faced in recording and
analyzing the data.

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 CONCLUSION

The report comes to the following conclusion

 The customers of Amul are brand loyal with only a small percent want to shift over to other brands. Trying of
other brands by customers is mainly because the customer wants to try something new.

 The performance of Amul is fair in comparison to Parag.

 Economy is the basic feature influencing to built brand Image.

 The competition of Amul is majorly Parag.

 Due to high brand loyalty the customers of Amul recommend its product to others.

 The customers are satisfied with the product range of Amul product.

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 SUGGESTIONS AND RECOMMENDATION
The recommendations are
 The brand loyalty for more Amul can be increased if the Quality and appearance of the products are given due
attention because Parag has captured a major share of milk industry.

 The switch over of the customers can be prevented if more of new products are launched more frequently like
Parag which launches new products with slight variations from the previous.

 Quality are good but it still needs improvements.

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 QUESTIONNIARE

Q1) Do you like the idea of purchasing products Amul ?

( a) Yes ( b) No
Q2) Have you ever purchase product of Amul ?

( a) Yes ( b) No

Q3) What helps you to decide which product of Mobile you purchase?

( a) TV Advertisement ( b) Personal recommendation ( c) Special offer

( d) Radio advertising ( e) News paper ( f) Word of mouth

Q4) How frequently you made a purchase Amul product ?

( a) Weekly ( b) Monthly ( c) Quarterly ( d) None

Q5) For which one of the following purpose you visit in your product ?

( a) Purchasing brand goods

(b) Purchasing local goods

(c) Only gathering information

(d) Others

Q6) What according to you are attractive features that buy Amul product ?

(a) Quality (b) Economy (c) taste

Q7) Are you satisfy with Amul Product ?

(a) Yes (b) No
Q8) Do according to you Amul product have changed the way the
marketing strategy towards milk ?
(a) Yes (b) No
Q9.Do you suggest Amul products to others
 Yes
 No
Q10. How will you rate your present Amul performance?
 Poor
 Satisfactory
 Fair
 Good
 Very good
 Excellent
Q11. Which Brand of Mobile are you using?
 Amul
 Parag
 Gyan
 Others

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 BIBLIOGRAPHY

BOOKS AUTHORS

 Marketing Management : Philip Kotler

 Marketing Research : D. D. Sharma
 Research Methodology : C. R. Kothari
Websites
 www.amul.com
 www.google.com

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