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ROLL NO.: 37
This project titled “survey on consumer preference for Amul butter and Amul lite’’. Mainly focus on

identifying the technical difference in Amul butter and Amul lite. Project also focuses on communicational

difference in advertising of Amul lite which has resulted in difference in sale volume. The awareness of Amul

lite and delicious which is low fat butter is less among people Proper consumer survey is needed to be done

to understand the buying pattern of consumers and consumer preference. The area of my project is to

understand the compositional difference and communicational difference which has led to difference in the

sale volume of Amul Butter and Amul Lite. The research draws attention to the fact that Amul has been the

market leader in India in the category of bread spread, the market share of Amul is around 63% the shares of

their key competitors such as Sudha has 16%, Nutralite has 17%, and other butter has 4%. The further

investigation reveals that this market shrinkage coincides with an increase in heath awareness amongst

consumers moreover an increasing number of rivals are also appearing like Nutralite and others. Moreover,

market survey of consumers and retailers and meeting with distributors also indicates flaw in the supply of

Amul bread spread products.

I hereby declare that the project report entitled as “survey on consumer preference for Amul butter and
Amul lite and their competitor” is a record of independent research work submitted by me to JD. WOMEN’S
COLLEGE Patna, under the guidance of Mrs. TRISHNA MAM. for the award of BACHELOR IN BUSINESS

I declare that the facts and data in the project report are true to the best of my knowledge and belief.

------------------------------- (Sign)

Date: ___________________

The satisfaction that comes through the successful completion of any task would be incomplete without

mentioning the names of people who made it possible because success is the epitome of hard work and

guidance so with gratitude, I acknowledge all those guidance and encouragement that served as a beacon of

light and crowned my effort with success so far.

I am deeply grateful to my nearby retailors for their support suggestion and all the consumers which helped

me in the successful completion of this report and to have thorough knowledge of the subject.

I would like to thank TRISHNA MAM. for providing me the key inputs at every step for the project and

extending his continuous support during the complete tenure.

I also express my gratitude to all the faculty members of JD. WOMEN’S COLLEGE Patna for giving me an

opportunity to work on Amul.


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“Dr. Philip Kotler defines marketing as “the science and art of exploring, creating, and delivering value to
satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires”

Marketing is the process of communicating the value of a product or service to customers. Marketing
might sometimes be interpreted as the art of selling products, but sales is only part of marketing. As the
term “marketing” may also consist of ‘competitive market’ among different companies. A competitive
market is one in which a huge number of producers compete with each other to satisfy the wants and
needs of a large number of consumers. In a competitive market no single producer, or group of
producers, and no single consumer, or group of consumers, can dictate how the market operates. Nor
can they individually determine the price of goods and services, and how much will be exchanged.

Competitive markets will form under certain conditions.

From a societal point of view, marketing is the link between a society’s material requirements and its
economic patterns of response. Marketing satisfies these needs and wants through exchange process and
building long term relationships.

• The set of objectives necessary for successful marketing management includes,
• Capturing marketing insights
• Connecting with customers
• Building strong brands
• Shaping the market offerings
• Delivering and communicating value
• Creating long term growth
• Developing marketing strategies and plans
1. A marketing plan makes a sense of our business environment when developing our marketing
strategy our need to take account of our customers, our competitors, and all the factors that could affect
our ability to operate effectively in the marketplace: the social, legal, economic, political and
technological issues that impact on our business. The likelihood is that these will be a complex mix,
becoming more so as our look into the future. Some aspects will be more important than others, and the
process of developing a marketing plan will help you decide where you should place your priorities.

2. A marketing plan enables clear decision making having determined what factors will affect our
business, and auditing what resources we have within our business to deal with them, we are well placed
to make all the marketing decisions and our need. Are our products really meeting our customers’ needs,
or should we be developing new products? Is our prices right for our market? Do our need extra staff or
should we outsource some services? Should we be trading online? Is that instead of or, as well as, trading
off-line? Do our need a PR campaign, and advertising campaign, a direct mail campaign…? The questions
we would usually consider in an ad hoc manner (if at all) suddenly become much easier in the context of
marketing plan with clear objectives, timescales and budget.

3. A marketing plan integrates long term planning and short-term implementation our strategic
marketing plan should reach 3-5 years ahead, giving the ability to look ahead and to be prepared to meet
any changes as and when they occur. It won’t be cast in stone, though. Our should revisit it regularly –
how frequently will depend on the nature of our business and the extent to which the factors affecting it
change – and make sure it remains relevant to the marketing environment in which our operate. At a
more detailed, tactical level our annual plan will dovetail with our strategic plan, ensuring that every
action we take is geared towards achieving our strategic goals.

4. A marketing plan prevents panic decisions the flip side of this coin, of course, is that a forward-
looking marketing plan will give our as clear a view as possible of what is going on in the market place, as
well as providing us with a framework in which to make any decisions to deviate from our plan.
Sometimes there will be occasions when our want to change course – for sound business purposes. But
the framework that the plan provides will mean that sure will not be taken by surprise by market
developments, nor will us be pushed this way and that by unexpected pressures.


There are five competing concepts under which organization can choose to operate their business

1. The production concepts

2. The product concepts
3. The selling concepts
4. The marketing concept and
5. The holistic marketing concepts


The market plan is one of the most important planning tools for businesses. It is used to determine if
there a market for the products or services. Recent years has seen a switch from creating a product or
service that meets the consumers’ specific needs as opposed to creating demand for the products or
services. Once the product or service has been chosen, the market must be analysed. This is where the
market plan comes in.

A plan has four basic functions:

• It tells individuals what resources are required.

• It shows what specific things need to be done.
• It gives goals that are measurable.
• It forces the “homework” to be done.

The best way to start to generate a market plan is to:

1. Begin with the objectives of the business.

2. Generate a marketplace perspective

3. Determine any constraints or limitations

4. Make an outline of the key elements or tactics needed.

Marketing plans are built around the “marketing concept” theory, which gives structure to identifying
and satisfying the customer’s needs.

THE MARKETING CONCEPT The market concept theory is based on the importance of the customers to
the business. The basis is that all policies and practices of the business should be based upon the goal of
satisfying the customers. In order to use the marketing concept, four steps need to be achieved:

1. MARKET RESEARCH - determining the demands or needs of the customers.

2. MARKET STRATEGY - analysis of the competitive advantage.

3. TARGET MARKETING - selecting which specific markets to serve.

4. MARKET MIX - determining how to serve the needs for the target markets.

MARKET RESEARCH: The gathering of information about the present and prospective customer
needs. This most commonly done through questionnaires and surveys.

MARKET STRATEGY: Small Businesses can gain a competitive advantage over larger competitors
by tailoring their products or services to meet the demands of the individual customer. This tailoring can
be done through the means of the product/service offered, price, promotion, and distribution. The above
are known as the marketing mix. Another advantage is that small businesses offer a more personalized
interaction with the customer

TARGET MARKETING: Small businesses often have constraints or limitations to the amount of
resources available for marketing their products or services. Therefore, they need to target a few specific
markets in which to concentrate their efforts. In order to choose the optimal markets to target a
segmentation of the total market is needed.

The three ways to segment the markets are:

1. Customer segmentation - identifying and marketing to the groups of people that will be the heavy

2. Product Segmentation - identifying and marketing the existing best-selling products or services to
gain market share before marketing any new ones.

3. Geographical Segmentation - identifying and marketing to the specific geographical areas that
contain the heavy consumers.


A formal approach to this marketing mix includes the 4P’s they are

1. Product – solution

2. Price- value
3. Place- distribution access

4. Promotion- information

If any of the 4P’s were problematic or were not in the marketing factor of the business, the business
could be in the trouble and so other companies may appear in the surrounding of the company, so the
consumer demand on its product will decrease.

However, in recent years’ service marketing has widened the domains to be considered, contributing to
the 7P’s of marketing in total. The other 3P’s of service marketing are
• Process
• Physical evidence and
• people

And also, some consider there should be eight P that is ‘Positioning’

The 7 ‘P’s of Marketing - taking the wider view

1. Product

Product is the item being sold to the customer, the thing that will bring in money, its features and design
need careful consideration. Whether the firm is manufacturing the product or purchasing the product for
resale, they need to determine what product features will appeal to their target market. When an
organization is considering introducing a product into a market, they should ask themselves the following

A. Who is the product aimed at?

B. What benefit will customers expect from it
C. What will be its advantage over competitor products? Or its unique selling point?
E. How does the firm plan to Position the product within the market?

The answers to these questions will help a firm design, package and add value to its products.


There are lots of different pricing strategies but all most at least cover your costs unless the price is being
used to attract customers to the business (loss leader). A product is worth as much as people are
prepared to pay for it. The amount your target market is prepared to pay for your product depends on its
features and the target market's budget. You will also need to consider Competitor Pricing and factors
within your Marketing Environment. Effective pricing involves balancing a range of factors.

A successful product or service means nothing unless the benefit of such a service can be communicated
clearly to the target market. Promotion is any activity to raise awareness of a product or to encourage
customers to purchase a product. Advertising is a form of promotion but not all promotions are
advertisements. Promotional activities for consumer sales will be different to promotional activities for
business to business sales.

The following things will influence how a firm chooses to promote its product: Promotional campaign
purpose the budget for the promotional campaign Legal rules about what you can promote.

Components of promotion mix

There are seven main elements in a promotional mix. They are:

I) Advertising – Any paid form of non – personal communication through mass media about
service or product or an idea by a sponsor is called advertising .it is done through non personal
channels or media. Such as print advertisements, advertisements in televisions and radio,
billboard, brochures and catalogue, direct mails, in store display, motion pictures, emails,
banners ads, web pages, and posters are some of the examples of advertising.

II) Personal selling – this is the process by which a person persuades the buyer to accept a
product or a point of view or convince the buyer to take specific course of action through face to
face contact. Examples: sales meeting, sales presentations, sales training, and incentive programs
for intermediary sales people, samples and telemarketing etc, it can be of face to face or through
telephone contact.
III) Publicity - publicity is the movement of information with the effect of increasing public
awareness of a subject. The subjects of publicity include people (for example, politicians and
performing artists), goods and services, organizations of all kinds, and works of art or
Publicity is gaining public visibility or awareness for a product, service or your company via
the media. It is the publicist that carries out publicity, while PR is the strategic management
function that helps an organization communicate, establish and maintain communication
with the public. This can be done internally, without the use of media.

IV) Sales promotion - Sales promotion refers to ‘those marketing activities that stimulate
consumer shows and expositions. Purchasing and dealer effectiveness such as displays,
demonstration and various non- recurrent selling efforts not in the ordinary routine.” According
to A.H.R. Delens: “Sales promotion means any steps that are taken for the purpose of obtaining
an increasing sale. Often this term refers specially to selling efforts that are designed to
supplement personal selling and advertising and by co-ordination helps them to become more
effective. “In the words of Roger A. Strong, “Sales promotion includes all forms of sponsored
communication apart from activities associated with personal selling. It, thus includes trade
shows and exhibits, combining, sampling, premiums, trade, allowances, sales and dealer
incentives, set of packs, consumer education and demonstration activities, rebates, bonus, packs,
point of purchase material and direct mail.”

Objectives of Sales Promotion:

Sales promotion is a vital bridge or a connecting link between personal selling and

Sales promotion activities are undertaken to achieve the following objectives:

1. To increase sales by publicity through the media which are complementary to press and
poster advertising.

2. To disseminate information through salesmen, dealers etc., so as to ensure the product

getting into satisfactory use by the ultimate consumers.

3. To stimulate customers to make purchases at the point of purchase.

4. To prompt existing customers to buy more.

5. To introduce new products.

6. To attract new customers.

7. To meet competition from others effectively.

8. To check seasonal decline in the volume of sales.

Importance of Sales Promotion:

The importance of sales promotion has increased tremendously in the modern times. Lakhs
of rupees are being spent on sales promotional activities to attract the consumers in our
country and also in other countries of the world. Some large companies have also begun to
appoint sales promotion managers to handle miscellaneous promotional tools. All these
facts show that the importance of sales promotion activities is increasing at a faster rate.

V) Corporate image – it is important to create a good image in the sight of general

public as the image of an organization is a crucial point in marketing. If the reputation of a
company is bad, consumers are less willing to buy a product from the company.

VI) Exhibitions – exhibition provide a chance to try the product by the customers. it is an
avenue for the producers to get an instant response from the potential consumers off the

VII) Direct marketing – direct marketing is reaching the customer without using the
traditional channels of advertising such as radio, newspaper, television etc. this type of
marketing reached the targeted consumers with the techniques such as promotional letters
street advertising.

4. Place

The Place element of the marketing place is about where the product is made, where is it stored and how
is it transported to the customer. The place for each of these things should ensure that the product gets
to the right place at the right time without damage or loss. The ideal place will be Convenient for the
customer and the business Accessible for the customer if it is the place where the product is sold Low
cost or free for the customer if it is the place where the product is sold Reasonable cost to the business.
5. People

People are an essential ingredient in service provision; recruiting and training the right staff is required to
create a competitive advantage. Customers make judgments about service provision and delivery based
on the people representing your organization. This is because people are one of the few elements of the
service that customers can see and interact with. The praise received by the volunteers (games makers)
for the London 2012 Olympics and Paralympics demonstrates the powerful effect people can create
during service delivery. Staff requires appropriate interpersonal skills, aptitude, and service knowledge in
order to deliver a quality service. In the UK many organizations apply for the "Investors in People"
Accreditation to demonstrate that they train their staff to prescribed standards and best practices.

6. Processes

This element of the marketing mix looks at the systems used to deliver the service. Imagine you walk into
Burger King and order a Whopper Meal and you get it delivered within 2 minutes. What was the process
that allowed you to obtain an efficient service delivery? Banks that send out Credit Cards automatically
when their customer’s old one has expired again require an efficient process to identify expiry dates and
renewal. An efficient service that replaces old credit cards will foster consumer loyalty and confidence in
the company. All services need to be underpinned by clearly defined and efficient processes. This will
avoid confusion and promote a consistent service. In other words, processes mean that everybody knows
what to do and how to do it.

7. Physical evidence

Physical evidence is about where the service is being delivered from. It is particularly relevant to retailers
operating out of shops. This element of the marketing mix will distinguish a company from its
competitors. Physical evidence can be used to charge a premium price for a service and establish a
positive experience. For example, all hotels provide a bed to sleep on but one of the things affecting the
price charged, is the condition of the room (physical evidence) holding the bed. Customers will make
judgments about the organization based on the physical evidence. For example, if you walk into a
restaurant you expect a clean and friendly environment, if the restaurant is smelly or dirty, customers are
likely to walk out. This is before they have even received the service.

Marketing - sales promotion

Sales promotions are the set of marketing activities undertaken to boost sales of the product or service.
Description: There are two basic types of sales promotions: trade and consumer sales promotions. The
schemes, discounts, freebies, commissions and incentives given to the trade (retailers, wholesalers,
distributors, C&Fs) to stock more, push more and hence sell more of a product come under trade
promotion. These are aimed at enticing the trade to stock up more and hence reduce stock-outs, increase
share of shelf space and drive sales through the channels.

However, trade schemes get limited by the cost incurred by the company as well as the limitations of the
trade in India to stock up free goods. Incentives can be overseas trips and gifts.

But sales promotion activity aimed at the final consumer are called consumer schemes. These are used to
create a pull for the product and are advertised in public media to attract attention.

Maximum schemes are floated in festival times, like Diwali or Christmas. Examples are buying soap, get
diamond free; buy biscuits, collect runs; buy TV and get some discount or a free item with it and so on.
Consumer schemes become very prominent in the 'maturity or decline' stages of a product life cycle,
where companies vie to sell their own wares against severe competition.

The impact of sales promotions: Sales promotions typically increase the level of sales for the duration they
are floated. Usually, as soon as the schemes end, the sales fall, but hopefully, settle at a higher level than
they were before the sales promotion started. For the company, it can be a means to gain market share,
though an expensive way. For consumers, these can offer great value for money. But sustained sales
promotions can seriously damage a brand and its sales, as consumers wait specifically for the sales
promotion to buy and not otherwise. Therefore, sales promotions are to be used as a tactical measure as
part of an overall plan, and not as an end itself.
There are many methods of sales promotion, they are

1) Rebate:
Under it in order to clear the excess stock, products are offered at some reduced price. For example,
giving a rebate by a car manufacturer to the tune of 12,000/- for a limited period of time.

2) Discount:
Under this method, the customers are offered products on less than the listed price. For example, giving
a discount of 30% on the sale of Liberty Shoes. Similarly giving a discount of 50% + 40% by the KOUTONS.

3) Refunds:
Under this method, some part of the price of an article is refunded to the customer on showing proof of
purchase. For example, refunding an amount of 5/- on showing the empty packet of the product priced

4) Product Combination:
Under this method, along with the main product some other product is offered to the customer as a gift.

The following are some of the examples:

5) Quantity Gift:
Under this method, some extra quantity of the main product is passed on as a gift to the customers. For
example, 25% extra toothpaste in a packet of 200 gm tooth paste. Similarly, a free gift of one RICH LOOK
shirt on the purchase of two shirts.

6) Instant Draw and Assigned Gift:

Under this method, a customer is asked to scratch a card on the purchase of a product and the name of
the product is inscribed thereupon which is immediately offered to the customer as a gift. For example,
on buying a car when the card is scratched such gifts are offered – TV, Refrigerator, Computer, Mixer,
Dinner Set, Wristwatch, T-shirt, Iron Press, etc.

7) Lucky Draw:
Under this method, the customers of a particular product are offered gifts on a fixed date and the
winners are decided by the draw of lots. While purchasing the product, the customers are given a coupon
with a specific number printed on it. On the basis of this number alone the buyer claims to have won the

For example, ‘Buy a bathing soap and get a gold coin’ offer can be used under this method.

8) Usable Benefits:
Under this method, coupons are distributed among the consumers on behalf of the producer. Coupon is a
kind of certificate telling that the product mentioned therein can be obtained at special discount. It
means that if a customer has a coupon of some product, he will get the discount mentioned therein
whenever he buys it. Possession of a coupon motivates the consumer to buy the product, even when he
has no need of it. Such coupons are published in newspapers and magazines. Some companies distribute
coupons among its shareholders. Sellers collect the coupons from the customers and get the payment
from the company that issues the same.

9) Full Finance @ 0%:

Under this method, the product is sold and money received in instalment at 0% rate of interest. The seller
determines the number of instalments in which the price of the product will be recovered from the
customer. No interest is charged on these instalments.

10) Samples or Sampling:

Under this method, the producer distributes free samples of his product among the consumers. Sales
representatives distribute these samples from door-to-door. This method is used mostly in case of
products of daily-use, e.g., Washing Powder, Tea, Toothpaste, etc. Thus, the consumers willy-nilly make
use of free sample. If it satisfies them, they buy it and, in this way, sales are increased.

11) Contests:
Some producers organize contests with a view to popularizing their products. Consumers taking part in
the contest are asked to answer some very simple questions on a form and forward the same to the
company. The blank form is made available to that consumer who buys the product first. Result is
declared on the basis of all the forms received by a particular date. Attractive prizes are given to the
winners of the contest. Such contests can be organized in selected branch of the company and according
to festival as well as seasons.
Bread spread comes under the FMCG sector. The products in this category are the fat dominated spred which

includes butter cheese lite and margarine. The Indian market of bread spread is estimated to be nearby Rs

1800 crores. Amul has ruled this market in India with its range of bread spread products with all types.

Several generations of Indian consumers have grown up with the taste of Amul butter for past six decades.

Amul brand of GCMMF has a consumer preference because of its quality and taste other prime players of this

category are Britannia, Nutralite, mother dairy, and Sudha. Regional and local dairy products are also

competitors in this arena.

The change in lifestyle of consumers in the past decades has complicated them to change their food habits to

suit their fast routine. Keeping this health concerned consumers in mind, the lite products such as Amul lite

was introduced in the category of bread spread, which have low calorie content and suit the consumer who

do less physical activity so that they can avoid medical illness. Taking advantage of this, Zydus wellness camp

up with Nutralite bread spread which claims to be better than butter and is posing a threat to the entire

butter category consumers perceive Nutralite as an easy way to reduce calorie intake rather than changing

their routine to metabolize butter. After Nutralite came into market, Amul came up with Delicious

(margarine) but butter continues to be its main category. Nutralite has managed to secure a market share of

around 17% of that of Amul.

In the market of Patna, brand of Sudha, Zydus, Britannia, are present in the bread spread category. Moreover,

local diaries also manufacture butter which is also a competitor.

The market of Amul butter, in Patna butter continues to be the main category for Amul.

The Birth of Amul

• It all began when milk became a symbol of protest

• Founded in 1946 to stop the exploitation by middlemen

• Inspired by the freedom movement

The seeds of this unusual saga were sown more than 65 years back in Anand, a small town in the state of

Gujarat in western India. The exploitative trade practices followed by the local trade cartel triggered off the

cooperative movement. Angered by unfair and manipulative practices followed by the trade, the farmers of

the district approached the great Indian patriot Sardar Vallabhbhai Patel for a solution. He advised them to

get rid of middlemen and form their own co-operative, which would have procurement, processing and

marketing under their control. In 1946, the farmers of this area went on a milk strike refusing to be cowed

down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and

Tribhuvandas Patel, they formed their own cooperative in 1946.

This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just
two village dairy co-operative societies and 247 litres of milk and is today better known as Amul

Dairy. Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas Patel, the

founder Chairman and the committed professionalism of Dr Varghese Kurien, who was entrusted the task of

running the dairy from 1950.The then Prime Minister of India, Lal Bahadur

Shastri decided that the same approach should become the basis of a National Dairy Development policy. He

understood that the success of Amul could be attributed to four important factors. The farmers owned the

dairy, their elected representatives managed the village societies and the district union, they employed

professionals to operate the dairy and manage its business. Most importantly, the co-operatives were

sensitive to the needs of farmers and responsive to their demands. At his instance in 1965 the National Dairy

Development Board (NDDB) was set up with the basic objective of replicating the Amul model. Dr. Kurien was

chosen to head the institution as its Chairman and asked to replicate this model throughout the country.

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) is India's largest food product marketing

organization with annual turnover (2012-13) US$ 2.54 billion. Its daily milk procurement is approx. 13 million

lit per day from 16914 village milk cooperative societies, 17 member unions covering 24 districts, and 3.18

million milk producer members. It is the Apex organization of the Dairy Cooperatives of Gujarat, popularly

known as 'AMUL', which aims to provide remunerative returns to the farmers and also serve the interest of

consumers by providing quality products which are good value for money. Its success has not only been

emulated in India but serves as a model for rest of the World. It is exclusive marketing organization of 'AMUL'


'SAGAR' branded products. It operates through 48 Sales Offices and has a dealer network of 5000 dealers and

10 lakh retailers, one of the largest such networks in India. Its product range comprises milk, milk powder,

health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional Indian

sweets, etc. GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House"
status. Many of our products are available in USA, Gulf Countries, Singapore, The Philippines, Japan, China

and Australia.

GCMMF has received the APEDA Award from Government of India for Excellence in Dairy

Product Exports for the last 13 years. For the year 2009-10, GCMMF has been awarded "Golden

Trophy" for its outstanding export performance and contribution in dairy products sector by APEDA for its

consistent adherence to quality, customer focus and dependability, GCMMF has received numerous awards

and accolades over the years. It received the Rajiv Gandhi National

Quality Award in1999 in Best of All Category. In 2002 GCMMF bagged India's Most Respected

Company Award instituted by Business World. In 2003, it was awarded the IMC Ramakrishna Bajaj National

Quality Award - 2003 for adopting noteworthy quality management practices for logistics and procurement.

GCMMF is the first and only Indian organization to win topmost International Dairy Federation Marketing

Year of Establishment 1973

17 District Cooperative Milk Producers'

Unions (16 Members & 1 Nominal


No. of Producer Members 3.18 Million

No. of Village Societies 16,914

Total Milk handling capacity per day 16.8 Million litres per day

Milk Collection (Total - 2012-13) 4.66 billion litres

Milk collection (Daily Average 2012-13) 12.7 million litres

Cattle feed manufacturing Capacity 5890 Mts. per day

Sales Turnover -(2012-13) ` 13735 Crores (US $ 2.54 Billion)

The Amul Model
The Amul Model of dairy development is a three-tiered structure with the dairy cooperative societies at the

village level federated under a milk union at the district level and a federation of member unions at the state


Establishment of a direct linkage

between milk producers and
consumers by eliminating

Milk Producers (farmers) control

procurement, processing and

Professional management
The Amul model has helped India to emerge as the largest milk producer in the world. More than 15 million

milk producers pour their milk in 1,44,500 dairy cooperative societies across the country. Their milk is

processed in 184 District Co-operative Unions and marketed by 22 State

Marketing Federations, ensuring a better life for millions.

Reference - http://www.amul.com/m/about-uss

The word butter comes from bou-tyron, which seems to mean "cow cheese" in Greek. Some scholars think,

however, that the word was borrowed from the language of the northern and butterophagous Scythians, who

herded cattle; Greeks lived mostly from sheep and goats whose milk, which they consumed mainly as cheese,

was relatively low in butter (or butyric) fat.

Making Butter Traditionally

First, the cream is separated from fresh whole milk. The cream is then churned by shaking or beating it

vigorously until it thickens. The remaining liquid (buttermilk) is removed. The clustered butter is washed and

formed into its solid shape.

Making Butter Today

Fresh milk from dairy farms is collected and brought to the creamery. The cream is then separated from the

fresh whole milk using centrifugal force. It is then pasteurized by heating it rapidly to a high temperature to

eliminate potential disease-causing bacteria and help the butter stay fresh longer.

Once pasteurized, the cream is beaten vigorously in a churning cylinder until it thickens naturally into butter.

The remaining liquid (buttermilk) is drained off, and the butter is mixed and blended. At this point, salt is

sometimes added.

The final product is, by regulation, at least 80% fat, about 16% water and 3% milk solids. After being weighed,

cut, wrapped and chilled, the butter is delivered to your grocery store, ready for you to add to your favourite


Churned butter- Churned butter is traditional, salted butter made by churning pasteurized cream. By

Canadian regulations it contains at least 80% fat, about 16% water and about 3% milk solids. It is generally

available in 1 lb (454 g) blocks, 8 oz (250 g) blocks and 1 lb (454 g) blocks of 4 individually wrapped sticks.

Churned butter is available in salted and unsalted versions, as well as “semi-salt” with about half the amount

of salt of regular salted butter

Sweet butter- Also labelled “unsalted butter”, sweet butter is the same as churned butter but made without

any added salt. It is used in baking and for general cooking and allows for more control of the salt level added

to a dish. Sweet butter doesn’t stay fresh as long as salted butter so should be used soon after purchase

Light butter- Light butter is traditional churned butter that has added air and water and is about 25% lower in

butterfat than regular butter. Because of the added water, light butter is best used cold as a spread on bread

or crackers and isn’t well suited to cooking or for melting on hot foods such as toast or popcorn. It shouldn’t

be used in recipes unless they are specifically created for

light butter

Cultured butter- Cultured Butter is butter made from cream that is cultured with active bacteria (similar to

yogurt) and has a distinctive, slightly tangy taste. It can be used interchangeably with regular butter in

cooking where the tangy taste will complement the recipe. Cultured butter has a longer shelf life than

traditional churned butter and is available in salted and unsalted versions. Cultured butter is common in

Europe and is becoming increasingly available in Canada. It may also be called “Old Fashioned” or “Antique”.

Other type of butter-

Flavoured Butter- Flavoured butter is traditional butter with added flavourings such as garlic, spices and

herbs. Using flavoured butter adds different seasoning to foods, along with a pure butter taste. You can also

make your own flavoured butter.

Blended Butter- Blended butter is a blend of real butter with liquid oil, such as canola, to make a spread that

tastes like butter, yet is soft and easy to spread straight from the refrigerator. Blended butter is available in

regular and light versions.

Whey Butter- Whey butter is made from the whey that has been separated from the curd in cheese making.

Whey butter has a deeper yellow colour and stronger flavour than churned butter with a cheese-like flavour

and is sometimes salty if the curd was salted. It is often found at specialty stores and farmers’ markets.

Whipped Butter-Whipped butter is butter with air whipped into it to make a lighter, softer spread. It is often

served in restaurants for spreading on dinner rolls or pancakes. Whipped butter is not interchangeable with

regular butter for cooking or baking.


Margarine is an imitation butter spread used for spreading, baking, and cooking. It was originally created from

beef tallow and skimmed milk in 1869 in France by Hippolyte Mège - Mouriès, as a result of a challenge

proposed by Emperor Louis Napoleon III, as a substitute for butter which would later be renamed

“margarine”. Whereas butter is made from the butterfat of milk, modern margarine is made mainly of refined

vegetable oil and water, and may also contain milk. In some locales it is colloquially referred to as "oleo",

short for oleomargarine. Margarine, like butter, consists of a water-in-fat emulsion, with tiny droplets of

water dispersed uniformly throughout a fat phase which is in a stable crystalline form. Margarine has a
minimum fat content of 80%, the same as butter, but unlike butter, reduced-fat varieties of margarine can

also be labelled as margarine (in some countries). Colloquially in the US, the term margarine is used to

describe "non-dairy spreads" like Country Crock, and I Can't Believe It's Not Butter! with varying amounts of

fat content. Margarine usually tops butter when it comes to heart health. Margarine is made from vegetable

oils, so it contains no cholesterol. Margarine is also higher in "good" fats — polyunsaturated and

monounsaturated — than butter is. These types of fats help reduce low-density lipoprotein (LDL), or "bad,"

cholesterol when substituted for saturated fat.


RESEARCH METHOD: - Research methodology depends to a large extent, on the target

population, and how easy of difficult to access it is. The second factor which influence research methodology

is, of course, the importance of decision which will be taken based on the research. Research method is based

on primary, quantitative and qualitative data.

• PRIMARY METHOD- The primary data refer to original information gathered for specific purpose and

provide up to date, relevant and accurate information according to the need of the problem
• QUANTITATIVE – In this method interviewer administered questionnaire face to and then Data

analysis method is used using the statistical method, bar graph, pie chart, and


• QUALITATIVE- This involve more control over the cause and effect, when compared to a

survey. In experiments we try to measure the effect of one or more variable. I have also

prepared SWOT analysis was also undertaken



CONVINENCE SAMPLING - A statistical method of drawing representative data by selecting people because of

the ease of their volunteering or selecting units because of their availability or easy access. The advantages of

this type of sampling are the availability and the quickness with which data can be gathered.

It refers to the individuals who are to be surveyed in the study and it includes adult male and female, users

and non-users of butter


It refers to the number of people surveyed for the topic in the study 114 has been surveyed and response

Once we got the insight of the current demand of AMUL Butter. The analysis and understanding of the

current demand of butter towards certain drawbacks, to understand more and actual demand of the

mechanism and issues, we interview various existing customers of AMUL and other butter to understand

the competitors even.

The factors which came out of the Focus Group Discussion are as follows:

 Price

 Taste

 Availability

 Quality

 Affordability

Ones the factors are decided the questionnaire was prepared.



Reliability Of data - The first operation performed on the data was to check its reliability, to know that

the further analysis could be done on this data or not. After getting the value of Alpha Cronbach

greater than 6 the further analysis was done.

Reliability Statistics
Cronbach's Alphas Cronbach's Alpha Based on N of Items
Standardized Items

.696 .703 5




Interpretation: -

In the population of Patna my sample size was of 144 people in which, 18% of the population don’t use butter

whereas 96 % of the population prefer occasional use or even regular use of butter. Generally, people of old

age avoid butter due to heart problem and moreover people of age above 55 and above don’t prefer butter,

some people use ghee, some people don’t use butter because it is not of their food habit, the 18% comprises

of those people.

Q. Male or Female?



% of Male and Female


39 %

61 %

Interpretation: -

In my survey in Patna I found that among the customer of Amul, 61% of the female purchase butter and 39%

of the male purchase butter this is mainly about who purchase butter in a household. Mostly female

purchase the household stuff therefore they purchase butter as they know the children preference and family

choice of taste.

Q. What is the Occupation: Student/Businessman/Salaried/Daily Worker/Self-employed/housewife: -








10 %

15 %

55 %

20 %

Interpretation: -

In my survey 55% of the people were student, 20% of the people were salaried, 15% of the people were

housewife, and 10% of the people were self-employed. We can see through the analysis that maximum of the

students prefer butter because it is a readymade item for them moreover students prefer fast food in which

butter is used. student mainly prefer butter as a bread spread as it is a ready to eat and don’t not require

much time.

Q. Age group: 18-24 25-34 35-44 45-54 55=>


18-24 59
25-34 31

35-44 12

45-54 12


18-24 25-34 35-44 45-54




Interpretation: -

In my survey 53 % of the people were between age group 18-24, and 27% of the people were between

age group 25-34, 11% of the people were between age group of 35-44, and 9 % of the people were

between 45-54. In the analysis we can see that maximum youth prefer butter i.e. people between age

group of 18-24, moreover we can also analyse that people of old age do not prefer butter due to heart

problem or due to health issue.

Q. Education: Intermediate/ under graduate/ Post Graduate /Others






14 %

18 %
51 %

17 %

Interpretation: -
In my sample survey 51% of the populations were in post-graduation, 17% of the people were undergraduate
and 18 % of the people were intermediate and 14% were of other degree.

Q. Income level: <=25k 25k-50k 50k-75k 75k-1cs 1 lacs=>


<=25K 36

25K-50K 36

50K-75K 34

75K-1LCS 8
75 k-1lac

31 %
50 k-75 k
30 %

25 k-50 k
32 %

Interpretation: -
According to the survey 32% of the people lies between the income of 25k-50k, 31% of the people were of

income were less than 25k, 30% of the people had income between 50k-75k and 7% of the people had

income between 75k-1lcs. Moreover, people whose income was less than or equal to 25k amongst them 33%

of people don’t use butter because they consider it costly. While 67% of people whose income<=25k use

butter. Thus, income is also a factor for people to use

3. If yes then which brand you prefer?

Amul butter Sudha butter Nutralite Britannia Others






Sudha Amul Nutralite Others

4% 16 %
17 %

63 %

Interpretation: -
Amul is enjoying the highest market share of 63%, whereas on the second position is Nutralite followed
by Sudha. And 16% of people use other butte like either homemade of loose butter which is generally for
commercial purpose.

Q. You use Amul butter or Amul lite / delicious?

Amul butter Amul lite Delicious





% of usage of Amul butter, Amul lite &delicious





Interpretation: -
As Amul as a parent brand has highest market share but it also includes other product of Amul like Amul lite

and delicious Thus Amul Butter has 75%, Amul lite has 12%, and Delicious has 13% market share

Q. How often you buy/use butter?


% of regular and occasional buyer


36 %

64 %

Interpretation: -
64% of the people are occasional users of butter, and 36% of the users are regular users. In Bihar people do

not include butter as their regular use a generally use ghee at home inspite of butter.
Q. Why you prefer this brand/ due to………….

Quality Taste Price Availability







21 %

40 %

32 %


According to the survey 40% of the people prefer their brand because of taste , 32% of people prefer their

brand because of quality, 21% of people prefer their brand because of availability, 7% of population prefer

their brand because of price .Thus we can conclude that for most of the people first priority is taste and then

quality .

Are you satisfied with the butter you are consuming?




%of satisfied and unsatisfied

satisfied unsatisfied


99 %

Interpretation: -

99% of the populations are satisfied with the butter they are using and only one percent of the population
are not satisfied with the butter they are using.

Why you have chosen Amul butter/Amul lite/delicious?

Bread spread Low Fat Low Cholesterol Others











Interpretation: -

Among the sample size 71% of the people use butter for bread spread, 16% of the people use butter because

of the perception of it being low cholesterol, 11% of the people use butter for other purpose and 2% of the

population use butter because of low fat.

Are you switching Amul butter/Lite with another brand because of

Taste Quality Unavailability Price Others







others quality price unavailability

17 %


71 %

Interpretation: -

According to my survey 71% of population switch Amul because of unavailability, 17% of people switch Amul
because of quality, 6% of people switch Amul because of price and 6% because of other factors. As Amul is
not a regular food habit of people of Bihar so they are not so specific for the brand of butter they use and if
they don’t get the preferred brand, they purchase the available brand. And according to the survey most of
the customers agreed to that Amul has a problem of availability due to which they switch the brand.

• low visibility is a major problem in the demand of Amul lite, since most of the customers are unaware

of the customer are unaware of the product and its attributes. Moreover

Amul products are under recognized than their actual quality.

• At some places general stores are not happy with the distribution services due to shortage of Amul


• Amul should also focus on its packaging of butter especially of 500gm because its competitor like

Nutralite provide butter bucket for 500gm which is easy to use and easy to store whereas Amul

provide cardboard box.

• As products of Amul are not prepared at Patna or nearby places so it transported by trains from

Ahmadabad and Kolkata to Patna and stored in storage facilities so because of this there is

sometimes shortage of products in the market.


Amul is one of the largest milks and milk-based products manufacturer in India. Known to be the founder of

the white revolution in India, Amul has some strong products and brands up its sleeves. The Milk & Dairy

products company has a very in-depth product portfolio including cheese, butter, curd, chocolates, ice cream,

and others. Although Amul is the largest brand still the visibility of the product is low thus there are some

weaknesses in Amul butter and, following are the points in the SWOT analysis of Amul.


 Best quality of product associated with strong brand

 Trusted by consumers

 Creative advertisement

 Strong sales force

 Good demand in market


 Supply is less than demand

 Poor after sale service

 Low visibility of Amul lite and other products responsible for unawareness of these product amongst



 MARKET SUPPLY of small packs (10gm)

 Spreading awareness about its Lite product for calorie conscious consumers can help it to restrict and

reduce the market of Nutralite

 Sufficient and regular supply of product in market  Entry of new small dairies.


 Mother dairy has entered into the market of Patna

 Health cautious people are unaware about Lite and hence prefer Nutralite

 Some consumers are strongly associated with Sudha as it is easily available.

1. In my survey 55% of the people were student. We can see through the analysis that maximum of the

students prefer butter because it is a readymade item for them moreover students prefer fast food.

Student mainly prefer butter as a bread spread as it is a ready to eat and don’t not require much


2. Amul is enjoying the highest market share of 63%, whereas on the second position is

Nutralite followed by Sudha.

3. 71% of people switch Amul because of unavailability.

4. In the market of Patna, the major competitor brand available in the bread spread is

Nutralite, and Sudha as Sudha has an easy reach to consumers through its dairy parlours.

5. Amul has around 63% share in Patna market of bread spread.

6. Distributor earn a gross margin of 11.63% on Amul butter and 19.23% on Amul lite and Retailer earn

8.4% margin on Amul butter and 15.68% on Amul lite and 8.89% margin on

10 gm Amul butter pack to retailer

7. GCMMF of is unable to fulfil the demand of in peak season as of festival and auspicious day when

demand is high.

8. Distributor earn gross margin of 19.23% on Amul lite and retailers earn 15.68% on Amul


9. Distributor earn gross margin of 11.63% on Amul butter. And retailers earn 8.4% margin on Amul


10. Distributor earn gross margin of 26.72% on delicious whereas retailers earn 22% margin.
1. Wall painting can be done to increase awareness for Amul lite and margarine products.

2. Small pack of 10gm has less supply which should be increased as it is easy to use and easy to carry. like

children can carry them in lunch box, people can carry while travelling, they can be served in resultants’

as an option pack for those who want extra butter.

3. More Amul parlours should be opened in Patna to increase visibility manifold and ensure an easy access

to consumers.

4. Amul lite and delicious should be promoted as other options in bread spread to compete


5. Supply shortage should be monitored regularly to ensure adequate supply so that consumer don’t switch

to another brand

6. Promotional event organization will help to make product visible. Even like run for health on occasion of

festival season is recommended.

7. More and more retailers should be encouraged to keep Amul lite and delicious to ensure easy availability

to consumers.

8. Projector films may be shown to the villagers emphasizing on the quality and the hygiene of Amul. This

would help in convincing the people & creating a favourable attitude towards Amul.

9. Suggestions & complaints made by retailers & consumers should be given due Attention to provide

maximum satisfaction. This could create and impression that Amul cares for them.
1. http://www.amul.com/m/about-uss

2. www.Google.com

3. Wikipedia

4. http://www.businessdictionary.com/definition/conveniencesampling.html#ixzz3d7adrYG




Dear Sir/Madam,

I am student of JD. WOMEN’S COLLEGE Patna and is conducting a survey on AMUL butter and variant. The

purpose of survey is solely academic. It will be very thankful of you to give your response for my research


Respondent Profile: -

Name: Age group: 18-24 25-34 35-44 45-54


Gender: Male Female


Education: Intermediate/ Under graduation/ Post Graduation /Others

Occupation: Student/Businessman/Salaried/Daily Worker/Self-employed/housewife

Income level: <=25k 25k-50k 50k-75k 75k-1lacs 1 lacs=>

1. Do you use butter?

Yes No

2. If not, why don’t you use butter?

It is not my food habit

It may cause weight gain

It increases the risk of heart disease

I don’t like taste

It is costly

3. If yes then which brand you prefer?

Amul butter Sudha butter Nutralite Britannia Others

4. Why you prefer this brand/ due to………….

Quality Taste Price Availability

5. Are you satisfied with the butter you are consuming?

Yes No

6. How often you buy/use butter?

Regular Occasional buyer

7. You use Amul butter or Amul lite / delicious?

Amul butter Amul lite Delicious OTHER

8. Why you have chosen Amul butter/Amul lite/delicious?

Bread spread Low Fat Low Cholesterol Others

9. Is Taste a consideration while choosing a Brand of Butter?

1 2 3 4 5

10. Is quality a consideration while choosing a Brand of Butter? (1-strongly disagree,5-strongly agree)

1 2 3 4 5

11. Is price a consideration while choosing a Brand of Butter?

1 2 3 4 5

12. How do you rate Amul as a Brand? (1-lowest 5-highest)

1 2 3 4 5

13. Is Amul butter/Amul lite affordable in price.

1 2 3 4 5
14. Is your brand of butter affordable in price?

1 2 3 4 5

15. Are you switching Amul butter/Lite with another brand because of

Taste Quality Unavailability Price Others

16. How do you scale your butter?



Name of Outlet

1. Do you sell Butter?

Yes No

2. Why would you sell Amul Butter?

Due to brand

Due to quality

Due to demand

Due to service by distributor

3.Are the product delivered to your shop by the company?

Yes No

4. How frequently you place the order to distributor?

Weekly After 10 days After 15 days

5. Does this happen that product is not available when consumers approach to your shop ?

Yes No

6.Which variant of Butter is most demanded by customer?

10gm 100gm 500gm

7.What are your weekly sale of Butter?

Below 100pc 100-200pc 200-250 pc Above 250pc

8.Are you satisfied by the distributor service?

Yes No

9.In which area you would suggest Amul to improve?

Quality Price Promotion Availability Others

10.Do the customers know about Amul butter or you suggest them?
Yes No

11.According to you what is the main problem of Amul Butter?

Quality Price Promotion Availability Others

12.Does advertisement affect buying decision of customer?

Yes No

13.Which type of promotion adverts catches customer Eye?

Poster Magazine Newspaper TV Billboard Others

14.How is your relation with the distributor?

Poor Average Good Excellent

15.What are the major challenges while selling Amul Butter?

Quality Price Promotion Availability Others 16. Rate

the following: -



Dear Sir/Madam,

I am student of JD. WOMEN’S COLLEGE Patna and is conducting a survey on AMUL butter and variant. The

purpose of survey is solely academic. It will be very thankful of you to give your response for my research


Respondent Profile:

Name of Outlet: -

Location: -

1. Do you use Butter?

Yes No

2. If butter then which brand you prefer?

Amul butter Sudha butter Nutra lite Delicious Others

Or Unbranded/Loose Butter

3. What quantity do you use?

10gm 100gm 500gm

4. Are you satisfied with the butter you are using?

Yes No

5. Have you heard about “AMUL LITE”?

Yes No

6. If yes why you have chosen AMUL LITE

Bread Spread Low Fat Low Cholesterol


7. Is price a consideration while choosing a Brand of Butter?

1 2 3 4 5

8. Is Taste a consideration while choosing a Brand of Butter (1-lstrongly disagree 5strongly agree)

1 2 3 4 5

9. Is Quality a consideration while choosing a Brand of Butter?

1 2 3 4 5

10. How do you rate Amul as a Brand? (1-lowest 5-higest)

1 2 3 4 5

11. Amul butter is affordable in price.

1 2 3 4 5

13. Are you switching Amul butter with other brand because of unavailability?

1 2 3 4 5

14. You prefer Amul butter over Amul lite why?

Taste Quality Unavailability Others

15. How do you scale your butter?