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INTRODUCTION
HistoRY
AMULSecREtofsuc
cess
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INTRODUCTION AND HISTORY
Intheyear1946thefirstmilkunionwasestablished.Thisunionwasstartedwith
250litersofmilkper day.Intheyear1955AMULwasestablished.Intheyear1946the union was
known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION.
This unionselected thebrand nameAMULin 1955.
Amul("priceless"inSanskritThebrandnameAmulmeans“AMULYA”.Thisword
derivedformtheSanskritword“AMULYA”whichmeans“PRICELESS”.Aqualitycontrol expertin Anand
hadsuggested thebrandname“AMUL”.Amulproducts havebeenin use in millions ofhomes
since1946.AmulButter,AmulMilkPowder,AmulGhee,Amulspray,
AmulCheese,AmulChocolates,AmulShrikhand,AmulIcecream,Nutramul,AmulMilk
andAmulyahavemadeAmulaleadingfoodbrandinIndia.(ThetotalsaleisRs.6billion
in2005).TodayAmulisasymbolofmanythingslikeofthehigh-qualityproductssoldat reasonable prices,
of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the
marketing savvy of a farmers' organization. And have a proven modelfordairy
development(Generallyknownas“ANANDPATTERN”).
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AmulisthelargestfoodbrandinIndiaandworld'sLargestPouchedMilkBrand with an
annual turnover of US $1050million (2006–07). Currently Unions making up
GCMMFhave2.8millionproducermemberswithmilkcollectionaverageof10.16million
litersperday.BesidesIndia,AmulhasenteredoverseasmarketssuchasMauritius,UAE,USA,Ba
ngladesh,Australia,China,Singapore, H ong Kongand a few South
Africancountries.ItsbidtoenterJapanesemarketin1994didnotsucceed,butnowithasfresh
plansenteringthe Japanesemarkets. Other potential marketsbeingconsideredinclude Sri
Lanka
In the early 40’s, the main sources of earning for the farmers of Kaira district were
farming and selling of milk. That time there was high demand for milk in Bombay. The
main supplier of the milk was Polson dairy limited, which was a privately owned company
and held monopoly over the supply of milk at Bombay from the Kaira district. This
system leads to exploitation of poor and illiterates’ farmers by the private traders. The
traders used to beside the prices of milk and the farmers were forced to accept it without
uttering a singleword.
However,whentheexploitationbecameintolerable,thefarmerswerefrustrated.
TheycollectivelyappealedtoSardarVallabhbhaiPatel,whowasaleadingactivistinthe freedom
movement. Sardar Patel advised the farmers to sell the milk on their own by establishing
a co-operative union, Instead of supplying milk to private traders. Sardar
PatelsentthefarmerstoShriMorarjiDesaiinordertogainhisco-operationandhelp. Shri Desai
held a meeting at Samarkha village near Anand, on 4thJanuary 1946. He advised
thefarmers toform asocietyforcollectionofthemilk.
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These village societies would collect the milk themselves and would decide the
prices at which they can sell the milk. The district union was also form to collect the milk
from such village co-operative societies and to sell them. It was also resolved that the
Government should be asked to buy milk from the union.
However, the govt. did not seem to help farmers by any means. It gave the
negativeresponsebyturningdownthedemandforthemilk.Torespondtothisactionof
govt.,thefarmersofKairadistrictwentonamilkstrike.For15wholedaysnotasingle
dropofmilkwassoldtothetraders.AsaresulttheBombaymilkscheme wasseverely affected.
The milk commissionerofBombay then visitedAnandto assessthe situation. Havingseemed
thecondition,hedecided tofulfillthefarmers demand.
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Thus their cooperative unions were forced at the village and district level to collect
and
Sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese
Kurien showed main interest in establishing union who was supported by Shri
Tribhuvandas Patel who lead the farmers in forming the Co-operative unions at the
village level. The Kaira district milk producers union was thus established in ANAND and
was registered formally on 14thDecember 1946. Since farmers sold all the milk in Anand
through a co-operative union, it was commonly resolved to sell the milk under the brand
name AMUL.
At the initial stage only 250 liters of milk was collected everyday. But with the
growing awareness of the benefits of the cooperativeness, the collection of milk increased.
Today Amul collect 11 lakhs liters of milk everyday. Since milk was a perishable
commodity it becomes difficult to preserve milk flora longer period. Besides when the
milk was to be collected from the far places, there was a fear of spoiling of milk. To
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overcome this problem the union thought out to develop the chilling unit at various
junctions, which would collect the milk and could chill it, so as to preserve it for a longer
period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is
collected from almost 1073 societies.
With the financial help from UNICEF, assistance from the govt. of New Zealand
under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and
butter was planned. Dr.Rajendra Prasad, the president of India laid the foundation on
November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared
it open at Amul dairy on November 20, 1955.
The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest
food products marketing organisation of India. It is the apex organization of the Dairy
Cooperatives of Gujarat. This State has been a pioneer in organizing dairy cooperatives
and our success has not only been emulated in India but serves as a model for rest of the
World. Over the last five and a half decades, Dairy Cooperatives in Gujarat have created
an economic network that links more than 2.8 million village milk producers with
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millions of consumers in India and abroad through a cooperative system that includes
13,141Village Dairy Cooperative Societies (VDCS) at the village level, affiliated to
13DistrictCooperativeMilkProducers’ Unions attheDistrictleveland GCMMFattheState
level.Thesecooperatives collectonanaverage7.5millionliters ofmilkperdayfrom their
producer members, more than 70% of whom are small, marginal farmers and landless
labourers and include a sizeable population of tribal folk and people belonging to the
scheduled castes.
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cornered by the middlemen, the system ensured that the profit goes to the participants
for their socio-economic upliftment and commongood.
Looking back on the path traversed by Amul, the following features make it a pattern and
model for emulation elsewhere.
Bring at the command of the rural milk producers the best of the technology and
harness its fruit forbetterment.
Provide a support system to the milk producers without disturbing their agro-
economicsystems,
Plough back the profits, by prudent use of men, material and machines, in the rural
sector for the common good and betterment of the member producersand
Even though, growing with time and on scale, it has remained with the smallest
producer members. In that sense. Amul is an example par excellence, of an
intervention for ruralchange.
The Union looks after policy formulation, processing and marketing of milk,
provision of technical inputs to enhance milk yield of animals, the artificial insemination
service, veterinary care, better feeds and the like - all through the village societies.
Basically the union and cooperation of people brought Amul into fame i.e. AMUL
(ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF INDIA.
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CHAPTER:2
THEORETICAL BACKGROUND
CoNCEPt
MoDelofTHeBUYiNGB
EHAvioR
FACtoRinfluenciNG
ConsUMERBEHAvioR
ConsuMERBUYinG
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CONSUMER
BUYINGBEHAVIORTHEORETIC
AL BACKGROUND
The aim of the marketing is to meet and satisfy the target consumer’s need & wants. The
field of the consumer behavior studies how individuals, groups and organization select
buy, use and dispose of the goods, services, ideas or experiences to satisfy their needs and
desires.
Understanding consumer behavior and knowing customer is not simple customer may
say one thing and do another thing. They may not be in touch with their deeper
motivations.
Consumer behavior is very complex and dynamic too constantly changing and therefore
managements need to adjust with the change otherwise market may be lost.
Consumer behavior explain how the individuals consumer, groups of the consumer and
organization select, buy, use and dispose of goods, and services to satisfy their needs and
wants.
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2.3 Models of the Buying Behavior:-
Different models at buying behavior will help the organization to understand the buying
behavior of consumers. There are No. of items. But that basic aim behind those
consumption activities is to satisfy that needs & wants at the consumers. An
understanding of needs and processes that influence the consumer behavior. If such need
can help the marketer in his risk. There is No. of the different models for understanding
these. We will undertake these main four models.
Economical model:-
Consumer have certain amount of purchasing power, and a sets of needs and taste, he will
allocate his expenditure over different products at given prices rationally so as to
maximize utility.
Learning model:-
This model refers to the consumer’s formation and satisfaction of needs and tastes. They
postulate that living organisms have both innate needed (primary drives like hunger,
thrust, and sex) and learned needs (like fear, guilt).
Psychoanalytical model:-
According to psychologist the consumers who are concerned with personality, human
needs and motives aperates at conscious as well as sub-conscious level.
Sociological model:-
Humans learn their behavior from their culture, subculture, social class reference groups
& group leaders
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2.4 FACTORS INFLUENCING CONSUMER BEHAVIOR
Factor influencing the consumer behavior are internal needs, motives, perception and
attitude as well as external- family, social group, cultural, economic, business influences,
etc.
1. EconomicsFactors.
An economics factor of buying behavior is undisplinary it assumes that Consumers are
economics. When are they following the principle of maximization of utility based on the
low of diminishing Managerial utility? As economic when, consumer evaluations
rationally the alternative in terms of cost and value received. They try to maximize their
utility or satisfactory while spending them scarce resources of time, energy and money.
2. PsychologicalFactors
Psychology has contributed much to the markets to understand the buyer’s psychology
explains how consumers learn about a product and how they can recall from the memory.
The development of buying habits, this includes the following factors:
Motive:-
A buying motive is the reason why a person buys a particular product. It is the driving
force behind buying behavior and may be based on psychological or psychological want
marketers are in rested in patronage motives such as store loyalty and brand loyalty.
Perception:-
Perception causes the behavior in a certain way perception influences this
behavior. It gives direction to the taken by the behavior. It the meaning we have
on the bases on our pastdependence.
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Learning:-
Learning refers to changes in behavior brought about by practice or experience. Almost
every timing one does or timing is learned product features such as price quality services,
brand, packing, etc. Act as hints influencing consumer’s response.
Attitude:-
Attitude is a state of mind of fillings it includes a per disposition to behave in source
way. Attitude core very important in explaining buyer’s behavior. A change in attitude
leads to changes purchasing attitude and modify buyer behavior knowledge of consumer
attitude can product redesigning packages and developing and evaluating promotional
programs.
Personality:-
In general perception attitude belief lead collectively to a consistent response by the
individual to his environment. This consistent pattern or behavior is termed as
personality its primary teachers are self-concept role and level ofconsciousness.
3. SocialFactors
This includes the following factors:
Family:-
Most consumers belong to a family group. The family can exert considerable influence
in shaping the pattern of consumption and indicating the decision making role personal
value attitude and buying habits have been shaped by family influences.
ReferenceGroup:-
The small group to which the buyer belongs influence buyer behavior. A human being
is considered as a social animal spending much of his or her life in group situation, group
norms direct attention of its member to a new style of a product.
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SocialClass:-
As a predictor of consumption patterns marketing management is familiar with social
classes consumers, buying behavior is determined by the social class to which they espiers
rather than by their income belong. Proudly speaking we have distant social classes’
upper, middle and lower classes usually stress rationality, exhibit sense of choice making
whereas consumers of lower classes have essentially no rational purchases and show
limited sense of choice making. The three social classes will have differences in the stress
they patronize. The magazines they read and abutting and furniture they select social
class may act as one criterion for marketsegmentation.
4 Cultural factors:-
Culture, subculture & social class are primary important in buying behavior.
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2.5 CONSUMER BUYING PROCESS
Let’s see the customer buying process by which it satisfies its need and wants. There are
no. of stages are involved into the customer buying process. The steps involved into the
customer buying process can be explained as below.
CONSUMERBUYINGPROCESS
PROBLEMREORGANIZATION
INFORMATIONSEARCH
EVALUATIONOFALTERNATIVE
PURCHASE DECISION
POSTPURCHASEBEHAVIOR
(1)Problem Reorganization:-
The buying process starts with that problem reorganization or need. The need can rise by
interval or external stimuli. The interval stimuli involve general need of the persons like
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hunger; thrust etc. and the person will be motivated to satisfy that need. And the need
that will be aroused by external stimuli.
The marketer should try identifying the circumstances that raise the need of the
customer. The marketer should collect the information from the different sources and it
can develop marketing strategies that increase the customer interests.
(2)Information Search:-
There is no. of sources for collecting information. Once the person will be are used. He
will try to collect more and more information different sources for collecting the
information are.
At this stage the consumer will evaluate the different alternatives available to him. This is
very difficult stage in the buying process.
(4)PurchaseDecision:-
How the buyer will take decision weather he should buy the products and services or Not.
This is also important step of the buying process.
After purchasing the goods or services the persons will experience some degree of
satisfaction. If the person will be satisfied then he will use the same product next time
and if. He will not satisfy then he will not go for thesame
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Chapter:-3
PROBLEM DEFINITION
PROBlEMDefinition
OBJECTIVesofTHeStUDY
ScoPeoftHeSTUDY
SiGNificAnceofTHesTUDY
LiMiTAtionsoftHeSTUDY
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PROBLEM DEFINITION
Problem Definition:-
In order to carry out the research programmed, the researcher should know the basic
problem. A competent researcher will not accept a research, until he understands the
problem definition is the core of research process. As such it denotes the particular most
important step to be performed. According to researcher’s viewpoint problem
identification represents conversion of the management problem in to research problem.
In the case, the topic is to know the “consumer buying behavior towards AMUL
Company’s Product” the basic problem is to know what the behavior of the consumer is
at present towards the AMUL product. What people think about it? The main problem is
to know how many people are interested in AMUL Company’sProduct.
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3.2 Scope of the Study:-
Scope of the study is to know the consumer buying behavior about AMUL
Company’s Product through of different areas. i.e. Ghod dhod road, Athwaline,
Minibazzar, Amroli, Bombay market, Nanpura etc. in Surat city.
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Chapter:-4
RESEARCH METHODOLOGY
ResEARCHDesiGN
MetHODOfDATA
Collection
SAMPLiNGPlAn
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WHAT IS MARKETING RESEARCH
The word “Research” is derived from the French word “Researcher” meaning to
search back.
RESEARCH DESIGN:
Primary data: -
“Primary data is the data which is collected by the research at first hand.” Here in this
report I have collected primary data with the help of the questionnaire to get the
necessary information.
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Secondary data
“Secondary data whether internal or external is the data already collected by
others for propose other then solution of the problem at hand”. Secondary data is
gathered with the help ofwebsites.
PRE-TESTING
A pre-testing is small-scale replica of the main study. It dresses a rehearsal and provides
guidance on the following matter.
1. Theadequacyofthesamplingframetobefollowed forthesurvey.
2.Ithelps theresearcherin selecting thedatacollectionmethod.
3.It gives prior knowledge about the population to besampled.
4. The pretesting helps the researcher in checking the validity of the
questionnaire and in redesigning of thesame.
5. It also provides training to the researcher forinterviewing.
SAMPLINGPLAN:
(A) Samplingunit
(B) Samplesize
(C) Samplingmethod
In my study the market survey was conducted in Surat city. Conducted I have
covered different areas under my study. Different areas like i.e Ghod dhod road,
Athwaline, Minibazzar, Amroli, Bombay market, Nanpura & other areas of the city are
covered by me during the study.
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(B) SampleSize:-
One of the most important parts for the research is to decide sample size. The
sample size explains how many consumers are covered in the study?
Sample size can be defined on the basis of pre-testing of 20 samples after pre-
testing of 20 persons; I have got 80% as favorable cases & 20% as unfavorable cases. So.
Here,
E = Tolerable error
So,
P=0.80,Q=0.20,Z=1.96,E=0.05
There fore,
N=p*q (z/e) 2
=0.80*0.20(1.96/0.05)2
=245.86
= 250(approximately)
(C) SamplingMethod:-
Sampling methods are also one of the important parts of the research for my topic
i.e the consumer buying behavior towards AMUL Company’s Product. I have used simple
random sampling.
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Chapter:-5
DATA ANALASIS
TABles
GRAPH&CHARts
CoMMent
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DATA ANALYSIS
Respondents Percentage
No 0 0.00
Graph;1
Comment: -
About100%ofrespondentareawareaboutAMULCompany’sProduct.Itmeans
inSuratcityeveryrespondentisawareaboutAMULCompany’s Product.
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Q-2.Whichtypeofproductareyouaware about?
Table; 2
Others 20 3.17
Graph :2
Comments: - As above chart showed that most of the respondents are aware about
AMUL Ice-cream and AMUL milk &Ghee.
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Q-3.Fromwhereyoucometoknowabout the AMUL’sproducts?
Table: 3
Radio 15 4.11
Others 55 15.07
Graph :3
Comments: -
As above chart, it is clear that more respondents come to know about AMUL
product through Newspaper & T.V Advertise.
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Q-4.DoyoupreferAMULproduct?
Table; 4
Respondents Percentage
No 20 8.00
Graph ;4
Comments: -
As above chart say that in Surat city around 92% respondent buy AMUL Product
and 8% respondent are not buying AMUL Product.
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Q-5.FromwhereyoupurchaseAMUL product?
Table;5
Others 2 0.77
Graph;5
Comments: -
From above chart it is clear that most of the customer are purchase an AMUL
product through LOCAL Shop and then AMUL Retailer outlets.
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Q-6.(IfRetailoutlets) OnwhichbasisyouarepurchaseAMUL
productsfromRetailOutlets?
Table: 6
Cleanness 85 20.98
Graph ;6
Comments: - As above chart showed that each feature of AMUL contain more than
50% significance So it becomes necessary to consider each feature thorouly at the time of
production.
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Q-7.(IfLocalShop) OnwhichbasisyouarepurchaseAMUL productsfromLocalShop?
Table; 7
Cleanness 30 11.11
Graph
Comments: - From the analysis of the above chart it is clear that the
respondents purchasing from the local shop are considering the features of fresh products
and availability more than cleanness, proper information & proper support.
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Q-8.Ifno,thanwhyyouarenotpreferring AMULproducts?
Table;8
Price 15 75
Quality 5 25
Taste 0 0
Availability 0 0
Total 20 100.00
Graph;8
Comments: - As it is suggested by the above chart that in the area of taste &
availability AMUL is the best. But in the area of Price & Quality still some improvements
are needed.
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Q-9.AtthetimeofpurchasingAMULProduct
whichfeaturesareimportantforyou?
Table; 9
High
Important 207 69 41 97 198 166
Medium
Important 14 120 111 78 20 36
Low
Important 9 41 78 18 12 28
Graph ;9
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Comments: -
FromtheabovechartitisclearthattherespondentsofAMULareQuality conscious
and by evaluating the views of AMUL respondents it comes to know that
AMULcostumersarenotthatmuchinterestedinschemesprovidedbyAMUL.Itisclear
thatmorethan50%oftherespondentsareinterestedinvariousvarietiesprovidedbythe AMUL
products and the respondents are mostly interested in the taste provided by AMUL
products and the AMUL respondents are giving priority to the availability of
AMULproductsbymorethan2/3part.SoitbecomesnecessaryforAMULtosupplythe
AMULproducts in allits targetmarket.
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Q-10.Doyouwantanyextrafeaturetobe addedintheAMULproducts?
Table;10
Respondents Percentage
Yes 70 30.43
No 160 69.57
230 100.00
Graph;10
Comments: -
Fromtheabovechart30%respondentsaytoaddfeatureinAMULProductand
other70%respondentsaythatnottoadd anyfeaturein AMULProduct.
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Q-11.WouldyouliketorecommendothersforpurchasingAMUL
Company’sProduct?
Table; 11
Respondents Percentage
Yes 220 95.65
No 10 4.35
230 100.00
Graph ;11
Comments: -
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Chapter:-6
HYPOTHESISTESTING
37
TESTING OF HYPOTHESIS
Hypothesis Testing
I have taken 20 samples before survey for pilot study in which 16 respondent are
prefer AMUL Product and 4 are not prefer AMUL Product,
P=0.8
Q=0.2
Outof250respondents,230 arepreferredbyAMULProduct.
I.e.n=250
x=230p=x/n
=230/250
=0.92
Zcal= Ip-PI
P *Q/n
=I0.92-0.80I
0.8 *0.2/250
= 0.12
0.00064
= 0.12
0.02529
= 4.74
Z cal. = 4.74
Zcal.>1.96so,werejectnullhypothesis.
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Chapter:-7
FINDINGS
39
CH-7:-FINDINGS
1. Out of total respondent, 100% of respondent are aware AMUL Company’s Product.
In Surat city every respondent are aware about AMUL Company’sProduct.
2. Out of total respondents, about (30.16%) respondent is aware about AMUL Ice
cream and (10.31%) AMUL Pizza & (28.57%) AMUL milk & (27.77%) Ghee and
(3.17%) areothers.
3. Out of total respondents, no. of respondent are come to know about AMUL
product that is 43.84% respondent by Newspaper , 36.98% respondent by T.V.
Advertise ,4.11% respondent by Radio and 15.07% respondent by others way to
know about AMULProduct.
4. Out of total respondents, around 92% respondent buy AMUL Product and 8%
respondent are not buying AMULProduct.
5. Out of total respondents, that 51.35% respondents buy AMUL product through
Local shop and 47.88% respondents buy AMUL Product through AMUL Retailer
outlets and 0.77% respondents buy AMUL Product throughothers.
6. As above chart showed that each feature of AMUL contain more than 50%
significance so it becomes necessary to consider each feature thorouly at the time
ofproduction.
7. From the analysis it is clear that the respondents purchasing from the local shop
are considering the features of fresh products and availability more than cleanness,
proper information & propersupport.
8. As it is suggested by that at the side of taste & availability AMUL is the best. But in
the area of Price & Quality still some improvements areneeded.
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.
9 Chapter:-8
SUGGESTION
41
CH-8:-SUGGESTIONS
2. By evaluating the survey it is clear that the respondents are mostly interested in
the taste provided by AMUL products. AMUL should concentrate on its
product’s taste more than any otherfeatures.
3. It is specifies that the AMUL respondents are giving priority to the availability
of AMUL products by more than 2/3part. So it becomes necessary for AMUL to
supply the AMUL products in all its target market.
42
REFERENCE MATERIAL
BIBLIOGRAPHY
APPENDICES
QUESTIONNAIR
PHOTOGRAPHS
43
BIBILIOGRAPHY
Marketing Management,
- By PhilipKotler
Websites:
- www.google.com
- www.amul.com
- www.wikipedia.com
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