Amul Project Report

PROJECT REPORT ON

CONSUMER PERCEPTION REGARDING AMUL PRODUCTS IN INDIA

SUPERVISOR SUBMITTED BY DR. R.N SINGH MANISH GUPTA ASSISTANT PROFESSOR BATCH: 2009-2012 BBA – 6 TH sem

 JAGRAN COLLEGE OF ARTS, SCIENCE AND COMMERCE COMMERCE

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KANPUR

DECLARATION

I hereby declared that the project entitled “Consumer perception regarding Amul products in India” submitted to Jagran College of Arts, Science and Commerce, Commerce, Kanpur for the award of BBA Degree.  The work has no submitted submitted previously for the award of any other degree by me to any of the university to the best of my knowledge.

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Place- Kanpur Manish Gupta

Mr.

Dateno.- 0201219

Roll

ACKNOWLEDGEMENT

 This project would would not have been possible without guidance, help and co-operation of a number of people. We extend our gratitude to all these people who helped us some or the other way to complete our project. I feel great pleasure in expressing my gratitude to Dr. M.P Gupta, Director, Jagran College of Arts, Science and Commerce, Kanpur, to whose kindness and encouragement I owe this project. A word of sincere appreciation and deep sense of guidance flows through my heart to Dr. R.N SINGH, assistant professor of   Jagran College of Arts, Science and Commerce, Kanpur for his inspiration, 3|Page

valuable guidance and thought provoke discussions. Without their academic support and illuminating guidance, I would found myself  no where

MANISH GUPTA

TABLE OF CONTENT

S.No.

Page No.

1.

Acknowledgement

2.

Preface

3.

Table of Contents

4.

List of Charts and Graphs Part-I

5.

Introduction of the Company

6.

History of the organization

7.

Introduction of the Topic

8.

Performance of Pr Product & Service

9.

Problem faced Part-II

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10.

Research methodology •

Research Objective

•

Research Design

•

Research Study

11.

Data Analysis

12.

Find indings ngs & Recommendatio tion

13.

Summary

14.

Annexure •

15.

Questionnaire

Bibliography

LIST OF CHARTS & GRAPHS

S.NO

ILLUSTRATION ILLUSTRATION

P. No

1. 2. 3. 4.

Sales Turn over Chart Rular Urban Profile Plants (Picture) Milk Procurement

4-5 10-12 20-21 23

5. 6. 7. 8. 9.

Sales Supply Chain Anul Sales Turn Over Price List of Amul Cogitators Data Analys lysis and Int Interpre rpreta tattion ion

24 69 71 74 85-97 -97

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INTRODUCTION OF THE COMPANY

Amul means "priceless" in Sanskrit. The brand name "Amul" from the Sans Sanskrit krit "Amoo oolya lya" " was sugg suggeste ested d by a qu quality ality expe expert rt in Anand nand.. Variants, all meaning eaning priceless are found found in several several Indian Indian languag language. e. Amul products have been in use in millions of homes since 1946. Amul Butter, Butter, Amul Milk Pow Powder, amul amul Ghee, hee, Amul Spray, Spray, Amul Cheese, heese, Amul chocolates, Amul Shrikhand, Amul Ice cream, Nutranmul, Amul Milk and Amulya have have made Amul a leading leading food food brand brand in India. India. Turnover Rs. 25 billion in 2002. Today Amul is a symbol of many things of high quality products sold at reasonable prices of the genesis of a vast co-operative network of the triumph of indigenous technology of the marketing savvy of a farmer's organization, and of a proven model for  dairy development. The revaluation revaluation started as awaren awareness ess may the farmers farmers that grew and and matured into a protest protest mov ovem ement ent and determination determination to liberate them. Over four decades ago the life of a farmer in Kaira district was like that 7|Page

of his counterpart anywhere also in India. Income from dairy was under   pe  pendable. le. Private tr traders an and middlem leman co contro trolled led th the ma marketing ing an and distribution of milk. As milk is perishable, farmers were compelled to sell it for what every they were offered. In this situation, the one who gained was the private traders. Gradually the realization downed on the farmers that the exploitation by the traders could be checker do only if  they marketed their product themselves. To do this they need some sort of organization this realization is what led to the establishment of Kaira District Cooperative Milk producer Union Limited (Popularly known as Amul), which was formally registered on December 14, 1946. The Kaira Union started Pasteurizing milk for the Bombay milk scheme in June June 19 1948 48.. An assure assured d market arket prove proved d a great great incen incentive tive to milk   pr  producers of of the the dis distri trict by the the end end of of 1948, more than 40 400 far farmers  joi  joined in mo more villa illag ge societies ies and the the quantity tity of of milk ha handled led by by union increase from 250 to 5000 liters per day. As the movement spread in the district, it was found that the Bombay Milk Schem Scheme could could no nott absorb absorb the extra extra milk collected collected by the Kaira union in summer when the production on an average was 2.5 times more than summer. Even by 1953, the farmer's embers have no assured market for the extra milk produced summer. The remedy was to setup a plant to  pr  process milk into pr products lik like bu butte tter an and milk ilk po powder. A five ive Milli illio on Rupees Plant to manufacture milk powder and butter was competed in 1955 19 55.. In 19 1958 58 the factory was expand expanded ed to manufac anufacture ture sweete sweetened ned condensed milk. Two year later a new wing was added for manufacture 8|Page

of 25000 tons of roller derived baby food and 600 tons of cheese per  year. year. This his chee cheese se was based ased on the the form formula ula develo evelope ped d with the assistance assistance of Central entral Foo ood d Techn echnolog ology y Research esearch Institute (CFTRI), Mysore. It was the first time in world that baby food and cheese where made by buffalo milk on a large commercial scale. Another r milestone was the completion as a project to manufacture balanced cattle food. The  pla  plan nt was donated by OXFAM under the the freedom from hunger campaign of the FAO. To meet the requirement for defense the Kaira Union was asked by the Government of India in 1963 to setup additional drying capacity. A new dairy capable of producing 40 tons of milk powder and 20 tons of butter  a day was speedily completed. It was declared open in 1965. Since then Amul has covered any miles on the road of success. Its members success of the federation can be estimated from the fact the income of the rural household of the Kaira district is being derived from dairying.  No  N ow federation ion is India's ia's lar largest food products marketing ing organizatio tion. It is a state level level apex apex body body of milk coopera cooperative tive Gujarat. Gujarat. More that 12 districts districts coop cooperativ erative e milk produ produce cers rs un union ion are its members, bers, which hich include 11,132 villages societies. Federation has helped for the products they produce. More that 2.28 millions producer members are beneficent of the unions. Turnover

Rs (million)

US $ (in million)

1994-95

11140

355

1995-96

13790

400

1996-97

15540

450

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1997-98

18840

455

1998-99

22192

493

1999-00

22185

493

2000-01

22588

500

2001-02

23365

500

2002-03

27457

575

2003-04

28941

616

2004-05

29225

672

2005-06

37736

850

2006-07

42778

1050

2007-08

52554

1225

2008-09

67113

1504

2009-10

8053

1700

INFORMATION TECHNOLOGY INTEGRATION INTEGRATION

At an early stage, federation recognized the IT excellence was essential to retaining our comparative edge. In the coming year federation will implem implement ent Virtual private network network (VPN) connec connectivit tivity y to facilitat facilitate e on line inform informatio ation n exch exchan ange ge with bu busin siness ess partne partners rs and and mon onitorin itoring g  pr  production ion an and sale sales s in or order to improve qua quality ity of of service ices and an an optim op timization ization of resource resources s across across supply supply points. points. As recogn recognition ition of IT excellence federation has been selected for international CIO 100 Award. Federa ederatio tion n has has inco incorpo rporated rated the coop cooper erativ ative e log logo to its web site www.amulcoop, .amulcoop, which has enhance enhanced d the Amul brand across world, giving then another vital business.

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EXPORTS

Export turnover of federation has grown up by 17% in terms of volume, total exports being more than 400 crore. Due to the subsidies allowed by Europe uropean an un union ions, s, the interna internation tional al prices prices were very very low as a result result export turnover in value terms has declined by 6%. The union not only takes the responsibility of collecting and marketing the surplus milk but also provides member with every provisions that is require required d to enha enhanc nce e produ productio ction. n. Thu hus s Kaira un union ion has has full fledge fledge machinery geared to provide animal health care and breeding facilities. The union has 16 mobile veterinary dispensaries are managed by fully qualified staff. All the visages are visited by monthly on predetermined day, day, to provide provide animal animal health health care. care. A 24 ho hours urs emergency ergency service service is available at a fee Rs. 35 for members and Rs. 100 for non members. All the mobile vans are equipped with radio set. The un union ion runs runs a semen produ production ction center center where it it maintains high  pe  pedigr igreed Su Surti bu buffalo bu bulls lls, fre frees in in a bulls lls, Ju Jursy bu bulls etc. tc. ba balanced feed concentrate is manufactured in unions cattle feed plant and sold to the members through societies at cost. After discussing the origin and the actives of the federation now let's have a look on the current position of the federation at various ends. MILK PROCUREMENT

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Total milk procurement by the members has reached an average of 52.35 lakh kilogram per day from 47.32 in 2001-02. SALES

Total sales for the year year 20 2002 02 – 20 2003 03 were were 27 2745 45.75 .75 crores including including consignment sales of Rs. 404.53 crores. During last year Amul Ice cream achieved achieved second second sales, with volume growth by 29 percent. UHT milk  was a bonanza product whose growth was 56 percent in volume terms. Despite of intense competition and a market recession, sales of Amul Butter grew by 7 percent and milk powder remains steady. This growth is particu particularly larly pleasin pleasing g as it dem demon onstrate strates s its ability ability to resist resist MNC com competitio petition. n. New pro products ucts like like pan pannier nier,, mithai ithai mate, ate, softy softy mix demonstrated their potential to become dominant brands. Amul's long long life UHT milk, has has received received a go good od response response in UAE currently currently 50 tons per mon onth th of UHT is is impo imported rted and sold. Amul is exploring the possibility of launching Amul Ice cream in gulf, the market demand for pizzas is also being surveyed. Amul butter  is also in high demand in foreign market currently around 250 tons of   bu  butte tter is is im imported per an annum. Am Amul g gh hee be being in foreign market fr from years, records close to 500 tons per annum. With a view to increase the volume and facilitate trade Amul is planning to set warchouse this year, either at JAFZA or in Dubai city.

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Gulf and West Asia is the largest overseas market for Amul products with UAE being the biggest buyer in the region. RETAILING

Amul has opened utterly Delicious retail outlets across the country to enhan enhance ce visibility and brand equity equity while making aking all Amul produ products cts available less than one roof in pleasant environment. Parlors have been opened in Ahmedabad, Bangalore, Hyderabad, Delhi and Mumbai. Amuls commitment is to get close to the consumer with good quality, nutrient us ready to the food at value for money prices will contin continue ue,, with the op open ening ing of more nu num mbers bers of parlors parlors acros across s the country. CO – OPERATI OPERATIVE VE DEVELOPMENT PROGRAM

During last three years Amuls members unions unions have have implem implemented ented an Internal Internal Con onsultan sultantt Develop evelopm ment (ICD) interventio intervention, n, addressin addressing g the needs to strengthen the business of dairy farmer's members and dairy cooperative societies. Recog ecogniz nizing ing that that leade leaders rs are essen essential tial to face face grow growing Challen hallenge ges, s, federation has initiated a chairman and secretaries orientation program, held at Gandhi Nagar Mother dairy, which is focused on strengthening the leadership skills and values. TOTAL QUALI QUALITY TY MANAGEMENT

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In 19 199 94, feder federatio ation n had embarked arked on the the TQM (Tota (Totall Quality uality Management). In 1999 it received Rajiv Gandhi Quality Award for the year. More than 25 2500 000 0 Kaizen's aizen's (small improv improvem ement in work areas) were made by the employees of the federation indifferent areas. Workshops on SQC (Statistica (Statisticall Quality uality Con ontrol) trol) have have been been cond conduc ucted ted acros across s the member dairies to achieved total quality in the production process.

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OVERVIEW OF FMCG SECTOR IN INDIA

The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterised by a well-established distribution network, intense competition between the organised and unorganised segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert cons consum umer erss to brande brandedd produ products cts.. Growt Growthh is also also likely likely to come come from from cons consum umer  er  'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of  investment in the food-processing industry. India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. Around 70 per cent of the total households in India (188 million) resides in the rural areas. The total number of rural households households is expected to rise from 135 million in 2001-02 2001-02 to 153 million in 2009-10. This presents the largest potential market in the world. The annual size of the rural FMCG market was estimated at around US$ 10.5 billion in 2006-07. With growing incomes at both the rural and the urban level, the market potential is expected to expand further.

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Rural and urban potential Rural-urban profile

Urban

Rural

Population 2001-02 (mn household)

53

135

Population 2009-10 (mn household)

69

153

% Distribution (2001-02)

28

72

Market (Towns/Villages)

3,768

627,000

Universe of Outlets (mn)

1

3.3

Source: Statistical Outline of India (2006-07), NCAER 

An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India one of the largest FMCG markets.

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2006-07

Rapid urbanisation, increased literacy and rising per capita income, have all caused rapid rapid grow growth th and and chan change ge in dema demand nd patt patter erns ns,, lead leading ing to an expl explos osio ionn of new new

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opportunities. Around 45 per cent of the population in India is below 20 years of age and the young population is set to rise further. Aspiration levels in this age group have  been fuelled fuelled by greater greater media exposure, exposure, unleashing unleashing a latent demand with more money and a new mindset.

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IMPORTANCE OF THE STUDY

Being student of MBA it is very essential for me to have a practical knowledge in an organiz organizatio ation. n. Only Only to study study business business adminis administra tration tion course course knowledg knowledgee is not the solution solution of the problems, problems, which arise in practical practical field. There There is a certain certain formula for  any particular problem, but the aim of this study is to develop the ability of decision making. making. A right decision decision at at right time and and right place place itself itself helps an an organizatio organizationn to run smoothly. This study study gives an idea of all marketing activities. activities. So the way a problem is solved solved right decision making and knowledge of different types of making activities give much importance to the study. Only in two month month training it was not possible possible to understand it so deeply, but an overall idea could be developed.

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BRIEF HISTORY OF THE ORGANIZATION THE AMUL HISTORY

In the 1940s, in the district of Kaira of the State of Gujarat, India, a unique experiment was conducted that become one of the most celebrated success stories of India. At that time, in Gujarat, milk was obtained from farmers by private milk contractors and by a  private company, company, Polson's Polson's Dairy in Anan Anand, d, the headquarte headquarters rs of the district. district. The company had a virtual stranglehold on the farmers, deciding the prices both of the  procured  procured as well as the sold milk. The company company arranged to collect, collect, chill and supply milk to the Bombay Milk Scheme, which supplied milk to the metropolis of Bombay, and to cities in Gujarat, Polson's Dairy also extracted dairy products such as cheese and  butter.  butter. Polson's Polson's Dairy exploited exploited its monopoly monopoly fully; the farmers were forced to accept accept very low prices for their products, and the decisions of the company regarding the quality and even the quantity of the milk supplied by the farmers were final. In 1946, inspired by Sardar Vallabhbhai Patel, a local farmer, freedom and social worker, named Tribhuvandas Patel, organised the farmers into co-operatives, which could procure milk from the farmers, process the milk and sell it in Bombay to cust custom omer erss inclu includi ding ng the Bo Bomb mbay ay Milk Milk Sche Scheme me,, Pure Purely ly by chan chance ce,, in 1949 1949,, a mechanical engineer named Verghese Kurien, who had just completed his studies in engineering in the USA, came to India and was posted by the Government of India to a  job at the Dairy Dairy Resea Research rch Institute Institute at at Anand. Anand. Settling down in Anand was hardly a part of his career plans; however, a meeting with Tribhuvandas Patel changed his life and changed India's dairy industry. What Mr. Patel requested of Dr. Kurien was hardly to bring about such a revolution. All the wanted was

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help help in solv solving ing vario various us probl problem emss with with bring bringin ingg into into wo work rking ing orde orderr some some of the equipment just purchased by his co-operative, especially the chilling and pasteurising equipment. These items of equipment malfunctioned, leading to the rejection of large quantities of milk by the Bombay Milk Scheme. Dr. Kurien's involvement with the Kaira District Co-operative Milk Producers' Union Limited (KDCMPUL; the registered name of the co-operative) grew rapidly. Initially he merely provided technical assistance in repairing, maintaining and ordering new equipment but subsequently he became involved with the larger sociological issues involved involved in organising organising the farmers farmers into co-operatives co-operatives and running these co-operative co-operativess effectively. He observed the exploitation of farmers by the private milk contractors and Poison's Dairy, and noted how the co-operatives could transform the lives of the members. The most important feature of these co-operatives is that they run purely as farme farmer's r's co-o co-ope pera rativ tives es,, with with all all the the majo majorr deci decisio sions ns being being take takenn by the the farme farmers rs themselves. The co-operatives are not 'run' by a separate bureaucracy with vested interests of its own; the farmers are truly in charge of their own decisions. Any farmer  can become a member by committing to supply a certain quantity of milk for a certain number of days in a year and shall continue to be a member only if he keeps up this commitment. Each day, the farmers (or actually, in most cases, their wives and daughters) bring their  milk to the village collection centers where quantity of milk is checked in full view of  all and quality (milk fat content) is checked using a simple device, again in full view of  all. The farmers are paid in evening for the milk they supplied in the morning, and in the morning for the evening's milk. This prompt settlement in cash is a great attraction to the farmers who are usually cash starved. Thanks to the above system, there are no 21 | P a g e

disputes regarding quantity or quality of the milk supplied by each farmer. It was soon realized that it was not enough to merely act as the collection and selling for the farmers. A variety of support services were also required to enable the farmers continue selling milk of adequate quality and to avoid disasters such as the death of their cattle (of a family owning just one or two cattle and depending on its/their milk for their  income, death of cow could indeed be a disaster). The farmers were progressively given new services such as veterinary care for their cattle, supply of good quality cattle feed, education on better feeding of cattle and facilities for artificial insemination of their  cattle. All these were strictly on payment basis; none of services were free. This experiment of organizing farmers into co-operatives was one of the most successful interventions of India. A very loyal clientele was built up who experienced prosperity on a scale they could not have dreamt of 10 years earlier. With good prices paid for  their milk, raising milch cattle could become a good supplementary source of revenue to many households. The co-operatives were expanded to cover more and more areas of Gujarat and in each area, a network of local village level co-operatives and district level co-operatives were formed on a pattern similar to that at Anand (the so called Anand Pattern). In 1955, KDCMPUL changed its name to Anand Milk Union Limited, which lent itself to a catchy abbreviation, Amul, which meant priceless in Sanskrit. The word was also easy to pronounce, easy to remember and carried a wholly positive connotation. It became the flagship brand name for the entire dairy products made by this union. In 1954, Amul built a plant to convert surplus milk produced in the cold seasons into milk powder and butter. In 1958, a plant to manufacture cheese and one to produce  baby food were added-for the first time in the world, these products were made from 22 | P a g e

 buffalo  buffalo milk. Subseque Subsequent nt years years saw the addition addition of more plants to produce produce different different  products.  products. Starting from a daily procureme procurement nt of 250litres 250litres in 1946 1946,, Amul had become a milk giant with a large procurement base and a product mix that had evolved by challenging the conventional technology. In his visit to Anand in 1965, the then Prime Minister of India, Lal Bhadur Shastri, was impressed by what he saw-a system that procured, processed and delivered high quality milk to distant markets cost efficiently. Shastri could also see the difference that the income from milk had made to the standard of living of farmers in the area. What impressed him the most was that Amul had done all this without Government assistance in market contrast to number of Government sponsored dairy programmes that were doing poorly in terms of procuring and marketing good quality milk and  boosting  boosting farmer's farmer's incomes. incomes. Shastri Shastri asked asked Dr. Kurien Kurien to replicate replicate Anan Anand's d's success success all over India. A pattern similar to the Anan Anandd Pattern was to be built in otherstates otherstates of India. This was carri carried ed out out unde underr a prog progra ramm mmee laun launch ched ed by the the Go Gove vernm rnmen entt of India India,, entit entitle ledd "Operation Flood". The operation was a body formed by the Government of India with this specific objective co-ordinated by the National Dairy Development Board (NDDB), a body formed by the Government of India with this specific objective.

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COMPANY PROFILE GUJARAT

COOPERATIVE

MILK

MARKETING

FEDERATION

GCMMF: AN OVERVIEW

Gujara Gujaratt Coo Cooper perativ ativee Milk Milk Marke Marketing ting Feder Federatio ationn (GCMM (GCMMF) F) is India's India's large largest st food food  products  products marketing marketing organization. organization. It is a state level apex body of milk cooperatives cooperatives in Gujarat 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.

Members:

12

dist istric rict

cooperative ive

milk  ilk 

 producers'  producers' Union Union No. of Producer Members:

2.28 million

No. of Village Societies:

11,132

Total Milk handling capacity:

6.7 million liters per day

Milk collection (Total - 2007-08):

1.86 billion liters

Milk collection (Daily Average 2007-08):

5.08 million liters

Milk Drying Capacity:

510 metric Tons per day

Cattle feed manufacturing Capacity:

1450 Mts per day

OBJECTIVES AND BUSINESS PHILOSOPHY OF GCMMF

The main stakeholder of GCMMF is the farmer member for whose welfare GCMMF exists. GCMMF states that its main objective is the carrying out of activities for the economic development of agriculturists by efficiently organizing marketing of milk and 24 | P a g e

dairy dairy produc produce, e, veteri veterinar naryy medic medicine ines, s, vaccin vaccines es and other other anima animall health health produc products, ts, agricultural produce in raw and/or processed form and other allied produce. GCMMF aims to market the dairy and agricultural products of co-operatives through: 

Common branding



Centralized marketing



Centralized quality control



Centralized purchases, and



Efficient pooling of milk 

GCMMF has declared that its business philosophy is as follows: 

To serve the interests of milk producers and



To provide provide quality products products that offer the best value to consumers consumers for money spent

PLANTS :

•

First plant is at ANAND, which engaged in the manufacturing of  milk, butter, ghee, milk powder, flavored milk and buttermilk.

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Second plant is at

MOGAR  , which engaged in manufacturing chocolate,

nutramul, Amul Ganthia and Amul lite.

Third plant is at Kanjari, which produces cattelfeed. Fourth plant is at Khatraj, which engaged in producing cheese.

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Today, twelve dairies are producing different products under the brand name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole India.

INFORM INFORMATION TECHNOLOGYINTEGRATION INTEGRATION

At an early stage, federation recognized the IT excellence was essential to retaining our comparative edge. In the coming year federation will implem implement ent Virtual private network network (VPN) connec connectivit tivity y to facilitat facilitate e on 27 | P a g e

line inform informatio ation n exch exchan ange ge with bu busin siness ess partne partners rs and and mon onitorin itoring g  pr  production ion and sales les in order to improve quality lity of of services and an optim op timization ization of resource resources s across across supply supply points. points. As recogn recognition ition of IT excellence federation has been selected for international CIO 100 Award. Federation has incorporated the cooperative logo to its web site www.amulcoop, .amulcoop, which has enhance enhanced d the Amul brand across world, giving then another vital business. EXPORTS :

Export turnover of federation has grown up by 17% in terms of volume, total exports being more than 400 crore. Due to the subsidies allowed by Europe uropean an un union ions, s, the interna internation tional al prices prices were very very low as a result result export turnover in value terms has declined by 6%. The union not only takes the responsibility of collecting and marketing the surplus milk but also provides member with every provisions that is require required d to enha enhanc nce e produ productio ction. n. Thu hus s Kaira un union ion has has full fledge fledge machinery geared to provide animal health care and breeding facilities. The union has 16 mobile veterinary dispensaries are managed by fully qualified staff. All the visages are visited by monthly on predetermined day, day, to provide provide animal animal health health care. care. A 24 ho hours urs emergency ergency service service is available at a fee Rs. 35 for members and Rs. 100 for non members. All the mobile vans are equipped with radio set. The un union ion runs runs a semen produ production ction center center where it it maintains high  pe  pedigr igreed Su Surti bu buffalo bu bulls lls, fre frees in in a bulls lls, Ju Jursy bu bulls etc. tc. ba balanced 28 | P a g e

feed concentrate is manufactured in unions cattle feed plant and sold to the members through societies at cost. After discussing the origin and the actives of the federation now let's have a look on the current position of the federation at various ends. MILK PROCUREMENT :

Total milk procurement by the members has reached an average of 80.45 lakh kilogram per day from 73.72 in 2007-08.

Average MilkProcuremet (In Lac Ltrs/Day) Ltr s/Day) 100 80 60 Column 1 40 20 0

SALES :

The total sales and growth pattern of Amuls products during 11years have been shown by this diagram.

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During the year, sales of Amul Federation registered a quantum growth of 27.7 per cent to reach Rs. 6711.31 crores (Rs.67.11 billion). Last year, ourr turnov ou turnover er was Rs. 52 5255 55.41 .41 crores crores (Rs. (Rs. 52 52.55 .55 billion). billion). This is an extrem extremely impres impressive sive grow growth, when viewed from the the perspec perspective tive of  22.90 per cent growth that we had achieved in 2007-08. I am also pleased to note that our Federation has done remarkably well in most of the value added consumer packs. Sales of Amul Milk in pouches have have grow grown by 44% in value value terms. terms. UHT milk has also show shown an impressive growth of 26%. Our sales in Amul Processed Cheese have shown consistent and very impressive growth of 25%. Amul Ice-cream has shown an impressive growth of 16 per cent in value terms over the last year. At the same time we have remained No. 1 Ice-cream brand in India leaving a wide gap with the nearest competitor. In the Infant Milk  Food category, our brand Amulspray registered a growth of 20%. In the dairy whitener segment, Amulya recorded a growth of almost 12%. We 30 | P a g e

managed to achieve 17 per cent value growth in Butter, despite intense competition in this category. In our effort to ensure that all sections of  ourr socie ou society ty are able able to afford afford Amul Butter, utter, we have have given given spec special ial emphasis to low unit value packs. RETAILING ILING :

The concept of Amul parlors initiated in 2002 has come a long way and has has today today,, evolv evolved ed into the most ost visible visible face face of brand brand Amul. The network of more than 4000 parlors in almost all major towns of the country bears testimony to the fact that the model is hugely scalable and inherently sustainable. This retailing initiative has not only enabled us to interface directly with consumer, it has also helped us in our endeavor to reduce middle-men from the supply chain. The addition of more than 2000 parlors during the current year is largely attributed to our channel channel partners partners i.e. our wholesa wholesale le distributors distributors who have have embrace braced d the conc concep eptt by starting starting their their own parlors parlors and and also motivated franchises to create parlors for meaningful employment. The relentless focus on expansion of Amul parlors is now paying us rich dividen dividends ds.. The retailing retailing business business alone fetch fetched ed us a sales turn turnov over er of  more than Rs.200 Crores during the current year. Moreover, these parlors also provide us with an effective platform to introduce all the innovative  pr  products tha that we lau launch, every year. We have also made giant strides forward in reaching out to millions of  railway commuters by setting up more than 50 Amul stalls across major  31 | P a g e

railway statio stations ns of the cou country. try. The Ind Indian Railways ays have ave also also recognized our efforts and with active support from IRCTC, we plan to set up another 300 railway parlors during the coming year. Ice-cream scooping parlors, the latest addition to the retailing revolution are yet another blockbuster from the house of Amul. We expect to add 200 more parlors in the coming year. Taking cue from the success of our parlors, commitment from our sales team and all our channel partners dealing in milk, ice-cream and dairy  pr  products; w we e pl plan to to tak take the the tota totall tall tally y of of Am Amul par parlors to 10 10000 by by adding 6000 parlors during the coming financial year. DISTRIBUTI DISTRIBUTION ON NETWORK:

Over a period of time we have built unique capabilities of distributing Ambient, Chilled, Frozen and Fresh products simultaneously through our  versatile versatile distribution distribution highw highways. Tod oday, ay, 35 3500 00 Distributors for Value added milk products, 1800 Distributors for Fresh Milk, ensure that Amul Products are available to all segments of consumers in India through more than 2 Million outlets. To enhance further efficiency in distribution, two key initiatives have  be  been tak taken during ing the the year. Firs irstly, ly, we expanded competency based distribution distribution by inducting inducting abou aboutt 30 300 0 Distribu istributors tors having having expe expertise rtise in servicing specific market segments and secondly, we are poised to divide the value added product lines amongst three sets of Distributors to cater 

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to the same market. This is going to give us more and more competitive advantage. In Federation, Federation, ou ourr distributor distributor is consid considered ered to be the real Marketing arketing Manager. To update them with modern marketing concept a workshop on Marketing and Sales Management is being conducted in collaboration with a premier bu busine siness ss schoo school. l. So far, 11 1100 00 Distributors Distributors have have been been  be  benefited ted from thi this workshop. SLDP (Self (Self Leade Leadership rship Develop evelopm ment ent Program Programme) for Distributor is another major initiative taken during the year primarily with objective of  training them to implement TQM at their and at the retailer level. This will ultimately serve to bring all Stake holders under common platform in Strategic Planning Process of the Organization and to develop Self  Leadership amongst each individual Distributor. Our Amul Yatra Programmes ensure that our every new distributor and other other bu busin siness ess partne partners rs visit visit Anand nand to to get get an expo exposu sure re to ou ourr cocooperative structure, our culture as well as our operational systems and  pr  processes. The init initia iati tiv ve co contin tinued this this ye year as we well an and so so far far, about 7400 Distributors and other business associates have visited Anand on Amul Yatra. CO–OPERATI CO–OPERATIVE VE DEVELOPMENT PROGRAM :

During last three years Amuls members unions unions have have implem implemented ented an Internal Internal Con onsultan sultantt Develop evelopm ment (ICD) interventio intervention, n, addressin addressing g the needs to strengthen the business of dairy farmer's members and dairy cooperative societies.

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Recog ecogniz nizing ing that that leade leaders rs are essen essential tial to face face grow growing Challen hallenge ges, s, federation has initiated a chairman and secretaries orientation program, held at Gandhi Nagar Mother dairy, which is focused on strengthening the leadership skills and values. During the year, Member Unions continued to implement the module on Vision Mission Strategy (VMS) for primary milk producer members & Village Dairy Cooperatives. Facilitated by specially trained consultants, 736 Village Dairy Cooperative Societies (VDCS) have conducted their  Vision Mission Strategy Workshops, prepared their Mission Statements & Business Plans for next five years. Till today total 6012 VDCS have  pr  prepared the their miss ission ion statem tement an and Busine iness plan. Member un unions are review reviewing this bu busin siness ess plan plan every every year year un unde derr VMS annu annual al revisit revisit  pr  programme an and facilita litate te VDCS to pr prepare ac action ion pl plan for ne next y ye ear to to  pr  propel the the momentum tum gaine ined thr through VMS. In order order to streng strengthe then n kn know owledge ledge and and skill skill base base of yo youn ung g girls and and women of the villages about milk production management; Federation, with techn technica icall collabo collaboratio ration n and and resou resource rces s of Anand nand Agricultu griculture re University, niversity, has has initiated “Mahila Pashu Pashupalan palan Talim Karyakram aryakram” for  women resource persons of the member unions and during the year, 486 women resource person have been trained under this programme.

Clean Milk ilk Producti Production on :

For strengthening infrastructure for quality and clean milk production and to install Bulk Milk Coo oolers lers at VDCS, ou ourr member ber un unions ions have have subm submitted project project proposa proposals ls to Departm epartmen entt of Animal Husband usbandry, ry, Dairy airyin ing g & Fish isherie eries, s, (DP Sectio ction n), Minist inistry ry of Agricu riculture lture,, 34 | P a g e

Gov overnm ernment of India. India. Und nder er the project, project, Gov overn ernm ment ent of India India has already sanctioned financial assistance of more than Rs. 28 crore and our  member unions have already received financial assistance of more than Rs. 11.36 crore. Con ontinuin tinuing g the cleanliness cleanliness drive drive at village level, till March 2009, 2009, ou our  r  Member ber Unions nions have have identified identified & imparted imparted training to 94 9479 79 corore corore groups groups formed formed of milk producers producers and Manag Managem ement of the VDCS. To enhance the level of Cleanliness this year, 7956 VDCS celebrated Red Tag Day on “Gandh andhii Jayan Jayanti” ti” - 2n 2nd d Octobe ctoberr and and the Unions nions also awarded best performing VDCS. Fertilit Fertility y Im Improvement Program:

The Board of Directors of Federation, considering a long term vision for  reducing reducing infertile animal from their milkshed, ilkshed, decide decided d to implem implement ent Fertility Fertility Improve Improvem ment Program Programm me (FIP) from year 2007-08. 2007-08. The The FIP conc concep eptt has has an integra integrated ted desig design n to ov overc ercom ome anim animal al nu nutrition tritional, al, gynecological, and animal health related problems. To imple implem ment ent FIP, IP, milk un union ions s have have deplo deploye yed d 44 FIP team teams of  veterinary consultants and they are working in 1960 villages. In the first year they have registered 72904 and in second year they have registered 70435 “Non Pregnant Not Calved Even Once” and “Non-pregnant Dry” milch cattles and buffaloes under FIP, out of which 52272 milch animals has become pregnant. FIP is being monitored through www.amul.org.in. FIP has helped helped milk produ producers cers to conv convert ert their un unprod produc uctive tive milch anim animals als to produ productiv ctive e on one e and and also by adop adopting ting scien scientific tific anim animal al husbandry practices they are earning more at less cost. 35 | P a g e

SUSTAINABLE SUSTAINABLE ECOLOGICAL DEVELOPMENT:

With a target of planting planting three trees trees per member, ber, ou ourr member ber un union ions s celebrated 61st year of Independence, 15th August 2008 in a unique way and our members have planted 52.74 lakh sapling across 21 districts of  Gujarat. During last last tw two o years, years, ou ourr members bers have have planted planted more than 71.65 lakh trees and demonstrated their commitment towards preserving and contributing to improvement of the environment. For this activity, we have received “Good Governance award” from “Srishti” during year  2007 as well as 2008. TOTAL QUALI QUALITY TY MANAGEMENT :

In 19 199 94, feder federatio ation n had embarked arked on the the TQM (Tota (Totall Quality uality Management). In 1999 it received Rajiv Gandhi Quality Award for the year. More than 25 2500 000 0 Kaizen's aizen's (small improv improvem ement in work areas) were made by the employees of the federation indifferent areas. Workshops on SQC (Statistica (Statisticall Quality uality Con ontrol) trol) have have been been cond conduc ucted ted acros across s the member dairies to achieved total quality in the production process.

ORGANIZATIONAL STRUCTURE OF GCMMF

GCMMF is a lean organization, a strategy that is believed to provide it with a cost advantage. At its headquarters in Anand, four General Managers (GMs) and four  Assistant General Managers (AGMs) assist the Managing Director (MD). The four  AGMs AGMs look look after after the functio functions ns of market marketing ing,, system systems, s, co-ope co-operati rative ve service servicess and technic technical al projec projects, ts, respec respective tively. ly. The four GMs are in charge charge of marke marketing ting (dairy (dairy 36 | P a g e

 products),  products), Human Human Resources Resources Development Development and Marketing Marketing (Dhara (Dhara and new business), business), finance and quality assurance, respectively. The whole country is divided into five zones, each headed by a zonal manager  responsible for the sales of all products within his zone. These managers report to the MD but functionally each also reports to the various AGMs/GMs at the headquarters. There are 50 sales offices spread across the country (of which only two are in Gujarat); a sale saless mana manage gerr head headss each each offic officee and and is assis assiste tedd by sale saless offic officer erss and and field field salespersons. The entire country has been represented in this structure. GCMMF has one overseas office in Dubai.

BOARD OF DIRECTORS

Gujarat co-operative Milk Marketing Federation Limited, Anand, India registered under  Gujarat co-operative societies Act-1961. Dr. V. Kurien (Chairman) B. M. Shrlvyas (Managing (Managing Director)

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Representative – 

Dr. Amrita Patel (National Dairy Development Board, Anand) Registrar – 

Sri R. M. Joshi (Co-operative Society Gujrat State, Gandhi Nagar) Bankers – 

Bank of Baroda, State Bank of India Kaira District Central Co-operative Bank Ltd. Auditors – 

S. R. Batliboi & Co. (Chartered Accountant) The list of all Chairmen of various Co-operatives is given on next page.

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CHAIRMAN Sri Ramesh Bhai P. Patel

Kaira District Co-operative Milk Producers Union Ltd. Anand

Sri Motibhai R. Chaudhary

Mehs Mehsan anaa Dist Distric rictt Co Co-o -ope pera rativ tivee Milk Milk Prod Produc ucer erss Union Ltd. Mehsana

Sri Govindbhai P. Patel

Sabarkantha District Co-operative Milk Producers Union Ltd. Himmat Nagar 

Sri Pratibhai G. Bhatol

Banaskantha District Co-operative Milk Producers Union Ltd. Palanpur 

Sri Narendra Bhai M. Patel

Baroda District Co-operativ Co-operativee Milk Producers Producers Union Ltd. Baroda

Sri Manubhai A. Patel

Surat District Co-operative Milk Producers Union Ltd. Surat

Sri Bhupendra Singh P. Solanki

Panchmaha Panchmahall District Co-operativ Co-operativee Milk Producers Producers Union Ltd. Godhra

Sri Sureshbhai Bharwad

Ahemdabad Ahemdabad District District Co-operative Co-operative Milk Producers Producers Union Ltd. Ahemdabad

Sri B. B. Bambhania

Raikot District Co-operative Milk Producers Union Ltd. Raikot

Sri Moghambhai M. Desai

Valsad Valsad District District Co-operat Co-operative ive Milk Producers Producers Union Ltd. Alipur 

Sri Prahladbhai M. Patel

Bhar Bh aruc uchh Dist Distric rictt Co Co-op -oper erat ative ive Milk Milk Prod Produc ucer erss Union Ltd. Bharuch

Sri Dhasarathnath N. Patel

Gandhi Nagar District Co-operative Milk Producers Union Ltd. Gandhi Nagar  39 | P a g e

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PERFORMANCE OF PRODUCT & SERVICES

AMUL AMUL means means "price "priceles less" s" in Sansk Sanskrit. rit. The brand name name "Amul, "Amul,"" from the Sanskr Sanskrit it "Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found in several Indian languages. Amul products have been in use in millio millions ns of home homess sinc sincee 1946 1946.. Amul Amul Bu Butt tter er,, Amul Amul Milk Milk Powd Powder er,, Amul Amul Gh Ghee ee,, Amuls Amulspray pray,, Amul Amul Chees Cheese, e, Amul Amul Cho Chocol colate ates, s, Amul Amul Shrikha Shrikhand, nd, Amul Amul Ice cream, cream,  Nutramul,  Nutramul, Amul Milk and Amulya Amulya have made Amul a leading leading food brand in India. (Turnover: Rs. 25 billion in 2002). Today Amul is a symbol of many things. 

Of high-quality products sold at 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



Of a proven model for dairy development

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Bread Spreads: Amul Butter

Amul Lite

Utte tterly rly

The low at Fat

Butte utterl rlyy

Delicious

Bread Spread

Amul Spray

Amul Instant Full

Infant Milk Food

Cream Milk 

Still, Mother's Milk 

Powder

is Best for your 

A dairy in your 

 baby

home

Sagar Skimmed

Sagar Tea Coffee

Milk Powder

Whitener

Powder Milk:

Which is especially useful for diet  preparations  preparations or for  use by people on low calorie and high protein diet. Amulya Dairy Whitener

The Richest, Purest Dairy Whitener 

Fresh Milk:

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Amul Fresh Milk 

Amul Gold Milk 

This is the most hygienic milk  available in the market. Pasteurized in state-of-the-art  processing  processing plants plants and pouch-packe p ouch-packedd for convenience. Amul Taaza

Slim and Trim

Fresh Cream

Chocolate Milk 

Flavoured Milk 

Cheese:

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Amul Pasteurized

Amul Cheese

Processed Cheese

Spreads

100% Vegetarian

Tasty Cheese

Cheese made from

Spreads in 3 great

microbial rennet

flavors.

Amul Emmental

Amul Pizza

Cheese

Mozzarella Cheese

The Great Swiss

Pizza

Cheese from Amul,

cheese...makes

has a sweet-dry

great tasting pizzas!

flavor and hazelnut aroma Gouda Cheese

For Cooking:

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Amul / Sagar Pure

Cooking Butter

Ghee

Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by diaries with decades of  experience. Amul Paneer

Utterly Delicious

Ready to cook 

Pizza

 paneer  paneer to make make your favorite recipes! Mithai Mate

Masti Dahi

Sweetened Condensed Milk Free flowing and smooth texture. White to creamy color with a  pleasant  pleasant taste. taste. Masti Soups

Desserts:

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Amul Ice Creams

Amul Shrikhand

Premium Ice Cream

A delicious treat,

made in various

anytime.

varieties and flavors with dry fruits and nuts. Amul Mithaee

Gulab Jamun Mix

Gulab Jamuns

Pure Khoya Gulab Jamums...best served piping hot. Kulfi Mix

Amul Chocolates

The perfect gift for  someone you love.

Healthy Drink:

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Nutramul

Malted Milk  Food made from malt extract has the highest protein content among all the brown beverage  powders  powders sold sold in India.

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LIST OF PRODUCTS MARKETED:

Bread spreads:

•

Amul Butter 

•

Amul Lite Low Fat Bread spread

•

Amul Cooking Butter 

Cheese Range:

•

Amul Pasteurized Processed Cheddar Cheese

•

Amul Processed Cheese Spread

•

Amul Pizza (Mozarella) Cheese

•

Amul Shredded Pizza Cheese

•

Amul Emmental Cheese

•

Amul Gouda Cheese

•

Amul Malai Paneer (cottage cheese) Frozen and Tinned

•

Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

•

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

•

Amul Amrakhand

•

Amul Mithaee Gulabjamuns

•

Amul Mithaee Gulabjamun Mix

•

Amul Mithaee Kulfi Mix

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UHT Milk Range: •

Amul Taaza 3% fat Milk 

•

Amul Gold 4.5% fat Milk 

•

Amul Slim-n-Trim 0% fat milk 

•

Amul Chocolate Milk 

•

Amul Fresh Cream

•

Amul Snowcap Softy Mix

•

Amul Taaza Double Toned Milk 

Pure Ghee: •

Amul Pure Ghee

•

Sagar Pure Ghee

•

Amul Cow Ghee

Infant Milk Range: •

Amul Infant Milk Formula 1 (0-6 months)

•

Amul Infant Milk Formula 2 ( 6 months above)

•

Amulspray Infant Milk Food

Milk Powders: •

Amul Full Cream Milk Powder 

•

Amulya Dairy Whitener 

•

Sagar Skimmed Milk Powder 

•

Sagar Tea and Coffee Whitener 

Sweetened Condensed Milk:

•

Amul Mithaimate Sweetened Condensed Milk 

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Fresh Milk:

•

Amul Taaza Toned Milk 3% fat

•

Amul Gold Full Cream Milk 6% fat

•

Amul Shakti Standardised Milk 3% fat

•

Amul Smart Double Toned Milk 1.5% fat

Curd Products:

•

Amul Masti Dahi (fresh curd)

•

Amul Butter Milk 

•

Amul Lassee

Amul Ice creams:

•

Royal Royal Treat Treat Range Range

(Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti

Frutti) •

Nut-o-Mania Nut-o-Man ia Range

(Kaju (Kaju Draksh Drakshi,i, Ke Kesar sar Pista, Pista, Roaste Roastedd Almond Almond,, Ke Kesar  sar 

Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi) •

Utsav Range (Anjir, Roasted Almond)

•

Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate)

•

Nature's Treat

(Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black 

Currant) •

Sundae Range (Mango, Black Currant, Chocolate, Strawberry)

•

Millennium Ice cream (Cheese with Almonds, Dates with Honey)

•

Milk Bars

(Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi,

Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi) 50 | P a g e

•

Cool Candies (Orange, Mango)

•

Cassatta

•

Tricone Cones (Butterscotch, Chocolate)

•

Megabite Almond Cone

•

Frostik - 3 layer chocolate Bar 

•

Fundoo Range - exclusively for kids

•

SlimScoop Fat Free Frozen Dessert

•

Health : Isabcool

(Vanilla, Banana, Mango, Pineapple)

Chocolate & Confectionery: •

Amul Milk Chocolate

•

Amul Fruit & Nut Chocolate

•

Amul Éclairs

Brown Beverage: •

 Nutramul  Nutramul Malted Malted Milk Milk Food Food

Milk Drink: •

Amul Shakti Flavoured Milk 

Ready to Serve Soups: •

Masti Tomato Soup

•

Masti Hot & Sour Soup

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BACKGROUND

Current business scenario is passing through a marketing era. Consequently there is faster faster busine business ss devel developm opment ent becau because se of liberali liberaliza zation tion and improv improving ing econom economic ic environment. At present companies are struggling to improve their market dominance and visibility. In order to survive during present competitive environment companies are trying to grab a larger market share. Growing liberalization and business favorable environmental changes have brought about abo ut eno enormo rmous us busines businesss opp opport ortunit unities ies for the compa companie nies. s. In variou variouss secto sectors rs and commodities, share the business is growing. As a student of marketing management it is advisable to understand the various interac interactive tive marke marketing ting forces. forces. One of the signific significant ant indica indicator tor und unders erstan tanding ding the influence of marketing forces on companies is the market share achieved by a company. Therefore the project undertaken has given me an opportunity to study the creation of  market share of AMUL in India. AMUL PASTEURISED BUTTER 

The largest selling brand of butter in India made from fresh cream. Marketed since last four decades. It is made in the most modern, state – of – the – art plant and meets AGMARK standards. Considered as a basic and essential requirements by housewives, it is used to enhance the taste of various dishes like Dosas, Parathas, Omelettes, Pizzas, Pav Bhaji and on Bread. It is available in different packs:100 gm 500 gm 110 x 9.1 gm 200 gm 52 | P a g e

AMUL LITE BREAD SPREAD

A delicious butter substitute, low in fat, low in cholesterol, it is the prefect way to a healthy breakfast. Most suitable for health conscious people as it has low fat content and cholesterol. It is available in: 200 gm AMUL PROCESSED CHEESE

Made Made from from rich rich crea creamy my milk milk,, 100% 100% vege vegeta taria riann ingre ingredie dient nts, s, it make makess delic deliciou iouss sandwiches, pav bhaji pizzas and can be used in your favorite recipes. Amul Processed Cheese is prepared using fully ripened Cheddar Cheese, which gives a unique taste, texture and mellowness. It is available in: 8 x 25 gm Chiplet 200 gm Slice 200 gm Tin AMUL CHEESE SPREAD

Made from a special formulation, 100% vegetarian, it is delicious in sandwiches, chapattis and parathas. It is also used to enhance the taste of a whole range of products like filling of Burgers, Salads, Pakodas and host of other dishes. Available in 3 flavors  – plain, plain, garlic garlic and pepper. pepper. It is available in: 200 gm Pepper  200 gm Plain 200 gm Garlic AMUL PIZZA CHEESE 53 | P a g e

The only genuine Mozzarella cheese made with state – of – the – art technology, for the first time in India. Due to its stretch ability, it’s ideal as a pizza topping. When baked along with pizzas, it melts uniformly and spreads evenly. It is available in: 250 gm AMUL CHEESE POWDER 

 Not only is it the only brand of cheese cheese available available in India, it is also the only form of  cheese which doesn’t require refrigeration. Being high in fat, protein and mineral content, it is very nutritious. Thanks to a slip – on lid, the tin can be reused for storing other ingredients. Cheese powder is the most convenient form of using cheese. It can impart the desired cheesy flavour to any dish such as Soup, Salads, Baked dishes, Pastas, Dosas etc. It is available in : 200 gm AMUL MALAI PANEER 

The first branded and frozen paneer. Made from rich Amul milk to make it extra malaidar. It is available in: 100 gm 200 gm 1 kg

AMUL NUTRAMUL

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It has the highest protein content among brown beverage powders in India. Makes hot and cold milk beverages for children and adults. It confirms to BIS Quality standards. It is available in: 500 gm AMUL MITHAEE

Made from fresh khoa, Maida and sugar to give it a softer, smoother and richer texture. The highest standards of hygiene are maintained at our state – of – the- art plant. Available in ‘Easy Open’ tins, which are convenient and can be opened anytime, anyplace. It is available in: 500 gm 1 kg

AMUL MITHAI MATE

Richer, whiter, free flowing condensed milk. Available in a new easy to open can. The  product  product quality quality meets meets BIS BIS standards standards.. It is available in: 200 gm 7.5 kg

SAGAR SKIMMED MILK POWDER 

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Its low calorie, high protein content is ideal for diet preparations. Also used for making curd and lassi. The product remains fresh since it is vacuum packed. It is available in: 200 gm 500 gm 1 kg AMUL CHOCOLATE

In a range of variety of flavors, they make an ideal gift or treat for someone you love. It is the only chocolate, which comes in an attractive cardboard foil packaging. It is the first milk chocolate similar to real Swiss chocolates and melts at mouth temperature. It is available in: Milk, fruit & Nut 20 gm Milk Slab 18 gm Badambar 35 gm

AMULSPRAY

It reconstitutes into the most wholesome, nutritive milk for infants. Marketed in India since 30 years and is India’s single largest selling infant food brand. It is available in: 200 gm 500 gm 1 kg AMUL PURE GHEE

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Made from fresh cream, it is rich and ideal for Indian food preparations like Parathas, Dosas, Idlis and for making sweets. Meets AGMARK special grade quality standard. Attractive multi – color packing catches the attention of all segments of consumers. It is available in: 500 gm 1 ltr  1 kg 2 kg 5 kg AMUL MILK POWDER 

High in fat content it’s ideal for reconstituting milk, in tea and coffee and for making curd, lassi and Indian desserts. It is vacuum packed so that it remains fresh for a long time. It is available in: 500 gm

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SAGAR PURE GHEE

Traditionally grainy in texture, it enhances the flavour of Indian cooking. Its excellent aroma reminds of the home made Ghee. Meets Meets AGMARK AGMARK specia speciall grade grade qualit qualityy standa standard. rd. Hyg Hygien ienica ically lly manuf manufact acture uredd and hermetically packed for longer shelf – life. It is available in: 500 gm 1 kg 2 kg 5 kg AMULYA DAIRY WHITENER 

India’s largest selling dairy whitener. It mixes instantly for making tea, coffee. Milk   beverages  beverages,, breakfast cereals cereals and sweets. sweets. It is made from best best quality milk using state state –  of – the – art technology. Amulya comes in pouch, refill and tin packaging and sizes ranging from 50 gm to 25 kg. It is available in: 50 gm 200 gm 500 gm 1 kg

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AMUL EMMENTAL CHEESE

Preferred by cheese lovers across the world, Emmental is the authentic Swiss cheese;  popularly  popularly know knownn as ‘The Cheese Cheese with Holes’. Holes’. Enjoy it with crackers, crackers, crispies, crispies, croissants and wine. It’s the exquisite cheese for exquisite occasions. It is available in: 200 gm AMUL MITHAEE

Quick and easy to make, Amul Gulab Jamun Mix promises you great quality at best  price,  price, with gulab gulab jamuns jamuns so delicious delicious and so so soft, they’ll they’ll melt in your mouth. mouth. It is available in: 200 gm

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PROBLEMS FACED STATEMENT OF RESEARCH PROBLEM

Marketing research implies the collection of data and implementing it for the purpose of  making marketing decision. In general sense making research consist in the use of  logica logicall method methodss for scient scientific ific enquir enquiryy for the identifi identifica cation tion and solutio solutionn of any marketing problem. “Marketing research is a systematic problem analysis, model building and fact finding for the purpose of important decisions making and control in the marketing of goods and service” “Marketing research is a search of knowledge” The above definitions on marketing research indicate clearly that all research activities carried, on the condition with management of marketing task, its purpose is to aid marketing control. While Wh ile conv conver ersa satio tionn peop people le we were re not not show showing ing inte intere rest st in Amul Amul beca becaus usee of low low awareness and as a new entrant in the market.

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PROJECT DEFINITION

My project is directed to study the share of AMUL’s products in the market. Basically it is a survey approach and I have tried my level best to collect data and genuinely applied it to obtain my project goal, and proudly I present it before you. Indian Indian busine business ss scenari scenarioo is improvi improving. ng. Differe Different nt commod commoditie itiess are con contrib tributin utingg to increasing business volume. In this process companies are struggling hard to increase their commodity market share and further down their company market share. In food industry also there is intense competition and different food industries are making deliberations to improve their market share. AMUL is one of them, so I have selected AMUL to study its market share in India by studying small samples of market in the city of Kanpur where I put up. I have carried out surveys through questionnaires and interviews with the company retailers in the working of my project. AMUL has many competitors and in the cutthroat competitive scene of today’s market it has to fight tough against them to maintain it’s no. 1 position especially in dairy  products.  products. I have also studied the consumer perception about AMUL products and also the competitor’s products.

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COOPERATIVE DEVELOPMENT

During Du ring the last last six years years,, our Membe Memberr Unions Unions hav havee been been impleme implementing nting Internal Internal Consultant Consultant Dev Developme elopment nt (ICD) intervention intervention for f or developing developing self-leaders self-leadership hip among member producers – thereby enabling them to manage their dairy business efficiently leading to their overall development. During Du ring the year, year, Membe Memberr Unions Unions con contin tinued ued to implem implement ent the module module on Vision Vision Miss Missio ionn Strat Strateg egyy (VMS (VMS)) for for prim primar aryy milk milk prod produc ucer er memb member erss & Vill Villag agee Da Dairy iry Coop Co oper erat ative ives. s. Faci Facilit litate atedd by spec specia ially lly traine trainedd cons consul ulta tants nts,, 1081 1081 Villa Village ge Da Dairy iry Cooperative Societies (VDCS) have already conducted their Vision Mission Strategy Workshops, prepared their Mission Statements & Business Plans for next five years. Membe Memberr unions unions review this busine business ss plan plan every every year year und under er VMS VMS ann annua uall revisit revisit  programme  programme and facilitate facilitate VDCS VDCS to prepare prepare action action plan for next year to propel propel the momentum gained through VMS. The VMS module has prompted milk producers to initiate activities at villages such as Water management, Planned Animal Breeding, Animal Feed management, Improved member services management, Information Technology Integration and Networking, which have very far-reaching and long-term effects on the milk business. This planned mana manage geme ment nt of milk milk prod produc uctio tionn at milk milk prod produc ucer ers’ s’ leve levell and and plan planne nedd VD VDCS CS management will not only help producer members to increase economic returns from their milk business but also help VDCS management to face competition. Continuing the Cleanliness drive at village level, Member Unions have identified & imparted training to 8505 Core groups comprised of milk producers and Management of the VDCS till March 2006. To enhance the level of Cleanliness this year 5803 VDCS celebrated Red Tag Day on the 2nd of October and the Unions also awarded the best  performing  performing VDCS. VDCS. 64 | P a g e

As a part of the Breeding Services Improvement Programme, Member Unions have continued implementation of the module of Improvement in Artificial Insemination (AI) Services and imparted training to 198 Core groups at village level and have decided to cover all the VDCS under Breeding Services with this module over the next year. To boost this movement, Member Unions are also conducting Mass De-worming campaign. Further, Member Unions implemented the AI Audit Competition during the year and in the process, identified & awarded the best performing VDCS and AI Workers. In order to increase awareness about dairy industry scenario and impart leadership skills to the Chairmen & Secretaries of the Village Dairy Cooperatives, Member Unions are conducting Chairmen & Secretaries’ Orientation Programme at Mother Dairy, Gandhinagar in collaboration with our Federation. During the year 826 Village Dairy Cooperative Societies have been covered involving 1596 Chairmen & Secretaries of the Village Dairy Cooperatives. During the year, our Member Unions continued to encourage increased participation of  women milk producers in the Dairy Cooperative Societies. To develop their skills and leadership qualities, Member Unions organised two Self Managing Leadership (SML) Programme at Prajapita Brahmakumaris, Mount Abu. 2071 women resource persons along with Chairmen and Secretaries of 524 VDCS were involved. In order to strengthen knowledge and skill base of young girls and women of the village villagess abo about ut milk produ productio ctionn manag managem ement ent and to motivat motivatee them them to implem implement ent scientific milch animal breeding, feeding and management methods for their animals, our Feder Federatio ation, n, with with technic technical al collab collabora oration tion and resour resource cess of Ana Anand nd Ag Agricu ricultu lture re University, has initiated “Mahila Pashupalan Talim Karyakram” for women resource  persons  persons of the the member member unions unions.. EXPORTS 65 | P a g e

I am pleased to inform you that our exports have grown at over 13 percent during the year. The year ended with an export turnover of Rs 134.23 crores which is the highest ever by any Indian dairy products exporter. Consumer products as well as bulk powders havee con hav contrib tribute utedd equ equall allyy to the growth. growth. Lower Lower subsid subsidies ies in EU hav havee helped helped our   powders  powders compete better in the international international market. market. This has shown shown that our future in International market shall be brighter as subsidies are reducing slowly. POUCH MILK 

Amul pouch milk continued to be the largest contributor to our turnover with annual sales of about Rs. 900.00 crores (Rs. 9.00 billion) during 2005-06 as against Rs. 626.00 crores (6.26 billion) during previous year implying a growth of about 31 percent. During the year 2005-06, we have introduced pouch milk in Kanpur, Lucknow and Bhopal markets and the response received from consumers is overwhelming. We are also also planni planning ng to focus focus on distribu distributio tionn exp expans ansion ion and consu consume merr aw aware arenes nesss in the existing metro markets of Kolkata, Delhi and Mumbai. Our objective in launching milk  in pouches in these and other markets across the country is two-fold. Firstly, Amul as a  brand has a very strong association association with liquid milk in the consumers’ consumers’ mind. Thus, Thus, launch of liquid milk always prepares the ground for penetration of other dairy products in these markets. This leads to market expansion. Secondly, it has been empirically  proved  proved that all cooperative cooperative milk brands brands gain from this market market expansion. expansion. No cooperative has lost sales consequent to launch of Amul Milk in its market. Thus, our  objective in launching milk across India is also to strengthen the cooperative movement while while preclu precluding ding market market takeo takeover verss by Multi Multi Nation National al Corpora Corporatio tions. ns. It is also also of  significance that we have been following the practice of local procurement of milk in all markets. Needless to say, it leads to higher demand and better returns for the  produce  produce of local dairy dairy farmers farmers – leading leading to overa overall ll developme development nt of regiona regionall economie economies. s. 66 | P a g e

INFORMATION TECHNOLOGY INTEGRATION

GCMMF GCMMF has further advanced advanced its Information Information Technolog Technologyy solutions solutions by enhancing enhancing its cust custom omis iseed ERP ERP Syst System em (EIA (EIAS S & Web Web EIAS EIAS)) to smoo smooth then en its its supp supply ly chai chainn management and to improve operational efficiencies. It has also successfully deployed process driven Enterprise Resource Planning (ERP) software system at its own unit, Mother Dairy, Gandhinagar in order to bring efficiency in manufacturing processes. Our Federation has also launched a new website www.Amul.tv for streaming its feature films, television shows, advertisements, etc to the Internet community. At present this  page contains contains feature feature films like Manthan Manthan – The Churning Churning and MAmuli MAmuli Ram, Information clips like Amul India Story and Amul Product TV Commercials, and entertainment series like Amul Surabhi episodes. The idea of this site is to have a continuous play of the above as per the programme schedule, which will be online within a short period of time. CONTESTS AND AWARDS

While it is important to excel in our processes of milk collection, processing and distribution, a long-term relationship with the channel partners and end consumers is indispe indispensa nsable ble for our long-ter long-term m succe success. ss. In order order to gen genera erate te excite excitemen mentt among among consumers and retailers while reminding them of the significance of Amul culture, we have instituted a number of innovative events. Amul Shakti Vidyashree Award was instituted during the year to honour toppers of  selected schools in SSC Board examinations. We expect this award to initiate a longterm association of the involved children with the Amul brand and culture. The Amul Maharani Contest entered a successful second year with the objectives of making women aware of the entire range of our products. Amul Chef of the Year Contest was instit institut uted ed durin duringg the the year year with with the obje objecti ctive ve of makin makingg hote hotell chef chefss our our bran brandd 67 | P a g e

ambassadors for institutions. With the objective of increasing the visibility of our   products  products at retail outlets, outlets, our successfully successfully continued continued the Taste of India Display Display Contest Contest scheme during the year. This event has generated a lot of excitement and involvement among retailers across India. CARRYING THE COOPERATIVE MOVEMENT FORWARD

Since its inception in 1946, the movement called Amul has represented and championed the interests and aspirations of millions of voiceless farmers. It has brought stability to their their hous househ ehol oldd incom incomes es with with some somethi thing ng to fall fall back back upon upon wh when en inco income me from from culti cultiva vatio tionn and and othe otherr sour source cess fail fail to meet meet expe expect ctat ation ions. s. It has has give givenn econ econom omic ic independence to rural women – thus empowering them to feed and educate her  children, including the girl child. Further, all these have been done at a minimal level of  inves investm tmen ent. t. The The diffe differe renc ncee that that two two milch milch buffa buffalo loes es or cows cows can can bring bring to the the livelihoods of an impoverished rural household – given an assured market and fair  returns for the produce – is probably more significant than any other rural employment  programme  programme.. Amul has been been able to achieve achieve this. Amul also provides provides wholesome wholesome nutrition at value for money prices to urban consumers who would otherwise only know either either unscru unscrupul pulous ous purve purveyor yorss of cheap cheap produc products ts of suspec suspectt qualit qualityy or avarici avariciou ouss multinationals hell bent upon extracting every possible rupee of rent from the food economy of the country. We must realise that today, we are the flag bearers of a uniquely successful experiment  – of a movement movement that not only provides provides stability stability to marginal marginal farm incomes, incomes, but also nurtures and lends security to the socio-economic future of the nation. In this light, it  becomes  becomes our sacred sacred duty to nurture and take forward forward this movement. movement. This can be achieved only when we display unbroken solidarity and cooperate among ourselves to further this noble cause. We must never forget that we have actively taken this onerous responsibility upon our shoulders. It is not something that has been thrust upon us. This makes it all the more important for us to show that together, we can do justice to this 68 | P a g e

great movement inspired by Sardar Vallabhbhai Patel and shaped by Sri. Tribhuvandas Patel Patel and Dr. Ve Verghe rghese se Kurien Kurien.. Ho Howe wever ver,, we must must be on con consta stant nt gua guard rd again against st  parochial  parochial interests interests that that may try to pull pull us down. down. Our efforts efforts in this regard regard will be surely surely rewarded rewarded if we remember remember that the cause we are serving is much loftier than any shortterm interest that a feeble mind may conjure up. Cooperation is our domain, and we must take it – as poet Rabindranath Tagore would have put it, ‘Where the world has not  been

broken broken

up

into

fragments fragments

By narr narroow dome domest stic ic walls alls Where here word ords come out fro from the the dept depthh of trut truthh Where

tireless

striving

stretches

its

arms

towards

perfection

Where the clear stream of reason has not lost its way Into the dreary desert sand of dead habit Where the mind is led forward by thee Into ever-widening thought and action’ I feel confident that the movement that was built upon untold dedication, sacrifices, vision and perseverance cannot but continue upon its brilliant path of success. Today, Amul has become a by-word for a successful cooperative movement the world over. Our member farmers have reposed their faith in us. We owe it to them to justify their  faith.

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MARKET SCENARIO

Kanpur city is divided into 5 major consumption zones. East Zone

•

Lal Bangla

•

Civil Lines

•

Gwaltoli

•

Khalasi Line

West Zone

•

Govind Nagar 

•

Fazalganj

•

Shastri Nagar 

•

Kidwai Nagar 

•

Barra

Central Zone

•

 Naveen  Naveen Market Market

•

Swaroop Nagar 

•

Arya Nagar.

•

Gumti No. 5

•

P Road

•

McRobert Ganj

North Zone

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•

Kalyanpur 

•

Vikas Nagar 

•

 Nawabganj  Nawabganj

•

Azad Nagar 

•

Sharda Nagar 

•

Company Bagh

South Zone

•

Mall Road

•

Birhana Road

•

Cantonment

•

Shivalya

•

Meston Road

•

Ghanta Ghar 

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NAME OF DISTRIBUTOR IN KANPUR 

•

Sara Traders.

•

Ahead overseas

•

Butter House

•

Vaishnavi Enterprises

•

Sachan Enterprises

•

Shudh Milk 

•

S. Whakle Enterprises

•

Katiyar Transport

•

K.K. Traders

•

Guru Tej Bahadur Agencies

•

Madam Gogvind Enterprises

•

Shri Bajpai Tradering

•

OM Sai Packaging Jai Ma Tapeshwari

•

S. Whakale

•

Deepak Enterprises

•

Shivay Agency

•

Maa Vaishnavi

•

Aman Agency

•

Chaurasia Agency

•

Rajendra Enterprises

•

K.K. Traders

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•

Appu Distirbutors

•

Tiwari Milk Traders

•

Arunesh Marketing

•

Maa Katayayni

•

Shiv Shanker Enterprises

B. Customer Customer Relationshi Relationship p manage management ment (CRM) (CRM)

When When I accomplish accomplished ed my market market survey I had the gated gated the market where most most of  custom customer er belong belongss and revisit revisit the market market for strengt strengthen hening ing our our relation relationshi shipp with with customer and clarifying customer's doubts and making then more and more loyal of our   brand.  brand. In this whole process process and applied applied customer relationship relationship management. management. Which is made by value equity brand equity and relationship equity. Value Equity

It is the custo custome mer's r's object objective ive asses assessm smen entt of the utility utility of an offerin offeringg base basedd on  perceptions  perceptions of its benefits benefits relative relative to its costs. costs. The sub drivers drivers of value equity are quality price and convenience of product. I had used these three terms when we Marketed MUNNA and first day I take 4 crate order of supply where as a found to take order only 3 crate. Brand Equity

When we take about Amul, there is no doubt to the Brand, Brand image of the product very good is our customer mind because I found all sub drivers of Brand equity is cust custom omer er bran brandd aw awar aren enes esss cust custom omer er attit attitud udee to wa ward rd the the bran brandd and and cust custom omer  er   perception.  perception.

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Relationship Equity

Today is age of competition every customer wants that better. That mean If we talk  about FMCG products the stickiness of customer to a special product is very less I want to share this incase of Amul, when I started my summer training our supply was not quick good because some political distortion is Rajisthan. Because of supply problem we had lost our lovely customers. PRODUCT LAUNCHING

During my summer training Amul Milk recently increased its product line with a  products  products Amul Amul gold gold 200 ml Amul Amul packet packet . 1.

Munna

It is the Amul 200 ml packet. A small packet of Amul Gold.  Now Amul gold gold milk is sold sold in market market in three packing packing s 1 liter, 500 500 ml and and 200 200 ml. Product launching strategy

As we all know 4 P's of marketing. Every company use these P's but different manner. 4 P's are. Product, Price, Promotion and place. Product

Amul launched Munna, 200 ml milk pouch. Price

The price of Munna Packet is Rs. 5.50 for customers Rs. 5.30 for retailers and Rs. 4.90 for distributor.As we know that the wickets part of a Chain is called strength of chain.

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Supply Chain

The main thing of supply chain is distribution.

Company

Distributor

Whole Seller

Retailer  

Customers / Consumers The most important part of supply chain is retailers because they are direct related to the custom customer. er. A retaile retailers rs can can push push custom customer er to purcha purchase se a partic particula ularr produc productt by different way. When we talk about our know product munna a retailer get less margin than any other   product  product of Amul milk so a retailer retailer chiefly not push customer customer to purchase purchase product. product. It may be possible that any other reason why our product not succeed as expectation. Promotion

A very basic thing of promotion of product is to aware customer to our product for  which a retailer would be pushed by customer to sell our product not a customer would  be pushed pushed.. For awarding customer with our product we must do a company of advertisement. It should be done before launching our product, not after launching or just on the day we 75 | P a g e

launch because it is main reason why our consumer would be pushed in place of a retailer. We all now our quality, our brand our market share is better than our competitor then what was reason that our product could not get such success as expected. For chief advertisement, we may advertise on milk van or vehicle all milk pack or  especially a packet which I want to launch in milk carriage or vehicle. Place:

We can make direct contact with the customer. In my area Gwaltoli and Khalashiline is such a place where many outlets available but few customer are not aware about all schemes schemes of company. company. We can attract more to people by putting putting kanop kanopyy or through sample distribution. We may use school walls to advertise and target small boys to say or to picturize such type of figure which may attract these people.

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AMUL SALES TURNOVER 

Turnover

Rs (million)

US $ (in million)

1994-95

11140

355

1995-96

13790

400

1996-97

15540

450

1997-98

18840

455

1998-99

22192

493

1999-00

22185

493

2000-01

22588

500

2001-02

23365

500

2002-03

27457

575

2003-04

28941

616

2004-05

29225

672

2005-06

37736

850

2006-07

42778

1050

2007-08

52554

1225

2008-09

67113

1504

2009-10

80053

1700

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SWOT ANALYSIS Strength:-

1.

The The leve levell of bran brandd awar awaren enes esss is high high esp espec ecia iall llyy in rura rurall popu popula lati tion on,, whe when compared with competitors.

2.

Amu Amul ha has pos posit itio ione nedd its itseelf as a Sw Swade adeshi shi Bra Brannd.

3.

The The nam namee Amul Amul is easy easy to reme rememb mber er as coma comapr preed to to oth other ers. s.

4.

Amul Amul for for a comm common on man man mean meanss hig highh qua quali lity ty milk milk prod produc ucts ts..

5.

Co-o Co -ope pera rati tive ve mode modell of orga organi niza zati tioons kee keepp it a par partt from from othe others rs..

6.

Comm Co mmon on man man ha has de develo velope pedd emo emoti tion onal al feel feelin ings gs for for the the bran brands ds..

Weakness:-

1.

Dist Distri ribu buti tion on chan channe nell is is wea weakk as as com compa pare redd to to com compe peti tito tors rs..

2.

Amul Amul is unab unable le to pene penetr trat atee int intoo pre premi mium um mark market et segm segmeent. nt.

3.

Lack of of co consumer pr promotion pl plans.

4.

The The bra brand nd is more more know knownn for for butt butter er tha than its its othe otherr prod produc ucts ts..

5.

Prop roper su supply of pro prodducts is not en ensured.

6.

Produ roduct ctss pack packin ingg and and appe appearanc rancee is not not chang hangeed fre freque quently ntly to mee meet the the changing needs and preferences of the customer.

7.

Olde Olderr age age grou groups ps show show more more loya loyalty lty to the brad brad as as com compa pare redd to to you young nger er age age groups.

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OPPORTUNITY:-

1.

Amul Amul shou should ld try try to to mak makee pla place ce in the the he heart art of of you young ng cons consum umeers. rs.

2.

Prop Proper er supp supply ly of the the pro produ duct ctss mus mustt be be ens ensur ured ed by usin usingg sal sales es fore foreca casti sting ng..

3.

Amul Amul must must try try to to cas cashh its its str stron ongg bra brand nd imag imagee in rura rurall popu popula lati tion on..

4.

More retail taileers can be added to supply chain, in, thro throuugh reta retail ileer orient ienteed schemes.

THREATS:-

1.

With With the the ent entry ry of of inter interna nati tion onal al pla playe yers rs in mar marke ket, t, the the game game wil willl be har harde derr to win.

2.

Reta Retail iler erss are are not not sati satisf sfie iedd by by repl replac aceement ment and and pro profi fitt mar margi gins ns..

3.

Nonn avai No availa labi bili lity ty of pro produc ducts may may com compel pel the the cons consuumer mer to shif shiftt to othe other   products.  products.

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PRICE LIST OF AMUL AND ITS COMPETITORS Amul

Amul

Distributor /

Reta etailer ler Pr Price ice Rs Rs.

Whole Sale

Consumer Price Rs.

Amul Gold 1 Ltr. Amul Gold 500 ml

27.80 11.70

28.80 16.50

30.00 17.00

Amul Gold 200 ml

4.90

5.30

6.00

Amul Taaja 1 Ltr.

24.20

25.20

26.00

Amul Taaja 500 ml

11.40

12.80

13

Amul Taja 200 ml

4.20

4.80

5.50

Amul Butter Milk 500 ml

5.90

6.50

7.00

Parag

Parag

Retailer Price Rs

Consumer Price Rs

Parag gold 1 ltr

27.20

28.00

Parag gold 500ml

14.10

15.50

Parag tond milk 1ltr

23.20

24.50

Parag tond 500ml

10.50

11.00

Parag tond 200ml

4.20

5.00

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY A.

SIGNIFICANCE OF THE MARKETING RESEARCH

The most important function of management in a organization is to take correct decision, minimizing the risk and uncertainty through rational and scientific decision making. making. Better and fruitful decision decision result from the right information about consumer, consumer, retailers, competitors and others. Thus, in this way management can be regards as the game game of hand handli ling ng infor informa matio tion. n. If the the mana manage gerr fails fails to hand handle le the infor informa matio tionn effectively, be is unable to make the required decision correctly and result will be mismanagement. Marketing Research is usually conducted to achieve the following objective. 1.

To kn know ow abou aboutt the the pers person on why why bu buy y the the firm firmss pro produ duct ctss

It tries to reveal the number of person and the frequency of their buying and the sourc sources es of thei theirr buyi buying ng,, their their socia sociall stat status us and and regi region onal al loca locatio tionn of the customers. 2.

To find find out the im impac pact of of prom romotion tional al eff effort

This facilitates appraising and improving the methods of sales promotion. It also leads to measure the effectiveness of advertising. Pricing policy and channel of  distribution. 3.

To kn know ab about cu customer's re response

Marketing research helps in sales forecasting and marketing planning. The rese researc arche herr make makess forec forecas astt on the basi basiss of resp respon onse se from from cust custom omer er and and distribution media.

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4.

To forecast sales

Marke Marketing ting resea research rch help help in sales sales foreca forecasting sting and market marketing ing planni planning. ng. The researcher makes forecast on the basic of from customer and distribution media. 5.

To study the go goodwi dwill of of th the fir firm m in in co compariso ison to to it its

competito itor fir firm ms.

This helps in reveling the important information regarding the faith of customer  and retailer faith in the organization, that of competitor organization, new  product  product and substitutes substitutes entering entering the market market and their their impact impact the firm's produc product.t. B.

MARKETING RESEARCH PROCESS

Effective marketing research involves the six steps, which is shown in the  picture below. below.

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RESEARCH PROCESS

Define the Research Problem & Object

Develop the Research Plan

Data Collection

Data Analysis

Present the Findings

Make the Decision

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METHOD OF STUDY

Since we know that Amul has a very vast market share in pouch milk Industry and it is good for the company that the other company presence as well as local made pouch milk is very less in present. In future company wants to maintain of share in this segment. It will emphasize mainly to areas. 1.

Competition Analysis

2.

Consumer buying behavior.

An in order to do same a detailed study needed to be conducted. The same was conducted in following manner. NATURE OF DATA

As we know that there are two types of data. 1.

Secondary Data.

2.

Primary Data.

Secondary data are data that were collected for another purpose and already exist somewhere. Primary data are data gathered for a specific purpose on for a specific  project.  project. No prior prior study or or research research on this this topic has been been conducte conductedd and the data, data, which are needed for this research, was not available. So, when the data do not exist or is inaccurate Incomplete, or unreliable, the researcher  will have to collected, the researcher will have to collect primary data. In lack of any prior study or research on the topic, main data form was primary, and for  dong same, we have collected primary data by adopting there ways.

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1.

OBSERVATION

Fresh data can be gathered by observing the relevant factors and settings. Observational research is an important method of research because it is the best way to gain an in depth understanding of the relationship between people and product is by watching them in the process of buying and using products. Many Many large large corpor corporati ation on and advertis advertising ing agenc agencies ies use cultur cultural al anthro anthropol pologi ogists sts to observe and often videotape consumer in stores, malls and their own homes i.e. to engage in ethnographies research under under this method the information is sought by way way off investigators own direct observation without asking from the respondent. The main advantage of this method is that subjective bias eliminated, if the observation is done accurately. Study being of descriptive nature makes it more suitable as compared to other method. Observer is free to use his own wisdom and understanding of the subject. By watching people observational researcher gain a better understanding of what a  product  product symbolize symbolizedd to a consume consumerr and greate greaterr insight into into the bond bond betwee betweenn people people and  product  product that that is the essence essence of brand loyalty. loyalty. Observational research also provides valuable input into product advertising. 2.

QUESTIONNAIRE

Surveys are bets suited for descriptive research. Companies undertake survey to learn  people's  people's knowledge knowledge beliefs, beliefs, preference preferencess and satisfaction, satisfaction, and to measure measure their  magnitudes in the general population. If researche researcherr wishes wishes to ask consumer consumer about their preference preferences, s, they can do so in person  by mail or by telephone. telephone. Each of these surveys surveys methods methods has certain certain advantage advantagess and disadvantages that the researcher must weigh in selecting the method of contact.

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The one good way of doing survey is by mailing Questionnaire, mail surveys are conducted by sending Questionnaire directly to individuals at their home or by personal contact. A questionnaire consists of a set of questions presented to respondents. Because of its flexibility the questionnaire is by for the most common instrument used to collect  primary  primary data. As we known known that preparing preparing a questionnaire questionnaire is a very intellectu intellectual al process process and it should be developed carefully. So, in order to minimize the possibilities or biasness, we have taken both types of  question i.e. close ended and open ended questions. Close ended questions specify all the possible answer and provide answers that are easier to interpret and tabulate. Open – ended questions allow respondents to answer in their own words and often reveal more about what they think. 3.

UNSTRUCTURED IN INTERVIEW

As the term indicates the type of interview is unstructured. In this form of interview the question to be asked by the respondents, is not predetermined. And the interview proceeds according to responses given by the respondents. This form of interview is useful when the reaction of respondent vary. This method is also a time saving method as only relevant question are asked. Changes are the environment level of the respondent's knowledge skill intelligence etc can be taken into consideration.

SAMPLE PLAN 87 | P a g e

After deciding on the method method of study tool we have have designed a sampling plan. As we know that the sampling plan is an integral component of research design. Specifically it addressed there questions whom to survey (the sample unit). SAMPLING UNIT

Deciding whom to survey requires that the universal of boundaries of the market from which data is sought be defined so that an appropriate sample can be selected. Interviewing the correct target marketing or potential target marketing is basic to the validity of the study. It is therefore, for doing same the whole city of Kanpur was sampling unit for the research. Because of budgetary and time constraints, the area was kept limited. AREA COVERED

1-Gwaltoli 2- Kahalasiline. SAMPLE SIZE

The size of the sample is dependent on both, the size of the budget and the degree of  confidence that we wanted to place in the findings. The large the sample the more likely that response will reflect the total universe under study. It is interesting to note, however that a small sample can often provide highly reliable findings depending on the sample procedure adopted The exact number, needed to achieve a specific level of  confide con fidence nce in the accurac accuracyy of the findings findings can be complete completedd with with a mathemat mathematica icall formula. Larg Largee samp sample le give give more more relia reliabl blee resu results lts than than smal smalll samp sample les. s. Ho Howe weve ver, r, it is not not necessary to sample the entire target population or even a substantial portion to achieve reliable results. Sample of less than 1% of a population can after provide goods reliability, with a credible sampling procedure. We have taken sample size as 88 | P a g e

Gwaltoli

-

40 outlets

Khalasiline

-

40 outlets

Sample procedure

To obtain a representative sample a non probability sample of population got. I had  been given given a pre-decid pre-decided ed area area to have have been been covered covered.. CONTACT METHODS

Telephone Interview: Since Telephone interviewing is the best method for gathering information quickly; and interviewer is also able to clarify questions if do not understand them. So I made contact with the outlet which had this facility. PERSONAL INTERVIEW

Personal interview is the most versatile Method the interviewer can know what are liking and disliking of respondent and what are real problem in consuming product. Since Amul product such type of product in which more chance to dissatisfaction of  customer so here very necessary to know problems of retailer as well as customers by making direct contact or face to face interaction. COLLECT THE INFORMATION

During my summer training I had done field work for collecting information. Since most of milk purchasing or milk selling came in morning and evening session so I had to go morning 5.00 am and evening 4.00 pm. to collect information. It is therefore in order to get accuracy of findings, we have taken a sample size of 80 for  the purpose.

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DATA ANALYSIS

The milk market market of India are and large large controlle controlledd and governed governed by the GMCCFL COMPANY, Parag. Except these two there is a weak and limited participation is felt by the very fresh. Subjects the relationships existing in the proposed data sets Statistical t es es ts ts o f t he he s ig ig ni ni fi f i ca ca nc nc e i n o rd rd er er t o e s ta t a bl bl is is h t he he v al al id id it it y o f t hi hi s relationship wither to support or reject the research research hypothesis. Data's processing involves:

(1) Editing:

I t i s p ro ro c e s s o f e x a m i ne ne t h e c o ll ll ec ec t ed ed r aw aw d at at a w i th th a v ie ie w o f   deteclomissions deteclomissions and correct them. (2)Coding:

It is process of assigning numerals or other symbols to answer. (3) Classification:

It is an arra arrang ngin ingg of data data aaccco cord rding ing to po poin ints ts of simi simila larit ritie iess and and dissimilarities. (4) Tabulation:

It is the counting of the number of place failing into each class. It can be simple or cross-tabulations. cross-tabulations.

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1.

What i s yo ur aver a ge sal es p er mon th ?

a.

0- 5000 Rs .

b.

5 000- 10000 Rs .

c.

10 00 0- 2 0000 Rs

d. Mo r e t h an 30000Rs

35% Shop Retailers per month sales 0-5000 Rs, 20% Shop Retailers per month Sales 5000-10000 Rs, 30% 30% Shop Retailers per month Sales Sales 10000-20000 Rs and 10% Shop Retailer per month Sales More then 30000 Rs.

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2 - Which Brands of Pouch Milk have you in your shop?

a.

Amu l

b. Parag

c.

Ver i f esh

d. Ot h er s

45% Shop Retailers have Amul brand own shop, 35% Shop Retailers have Parag brand own shop, 5% Shop Retailers have Verifresh brand own shop and 15% Shop Retailer  have Other Brand own shop.

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3.

W h i ch ch b r an an d i s p re re f er er re re d b y c u st st om om e r ?

a.

Amu l

b. Parag

c.

Ver i f esh

d. Ot h er s

45% Customer Customer Preferred by Amul, Amul, 35% Customer Preferred Preferred by Parag, 5% Customer  Preferred by Verifresh and 15% Customer Preferred by Other Brands.

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4.

C u s to to me me r op op in in io io n a b o u t Am Am u l Go Go ld ld Mi Mi lk lk ?

a.

Good

c.

Excel l en t

b. Ver y Goo d

60% Customer opinion about Amul gold milk is Good, 30% Customer opinion about Amul gold milk is Very Good and 10% Customer opinion about Amul gold milk is Excellent.

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5.

Aver Av erag agee cus custo tome merr dem deman andd of of diff differ eren entt bra brand ndss of of Gol Goldd Mil Milkk ?

a.

Amu l

b. Parag

c.

Ver i f r esh

d. Ot h er  

Average customer demand for Amul is 40%, 33% Customer prefer Parag, 5% customer   prefer to use Verifresh Verifresh and 22% Customer Customer Demand Demand for others others Brand Brand milk. milk.

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6.

D i st st r i bu bu t i on on o f A m u l G o l d m i l k ?

a.

Good

c.

Excel l en t

b. Ver y Goo d

60% Retailers are saying Amul Milk is Good, 37% Retailers are saying Very Good and 3% Retailers are saying Excellent.

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7. a.

B e s t co co m p e t i to to r s of of Am Am u l Go Go d M i lk lk ? Parag

b. Ver i f r es h

Parag is 97% competitor of Amul Amul Gold Milk and Verifresh is 3%.

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8.

W hi hi ch ch br br an an d p ro ro vi vi de de s be b e s t d i st st ri ri bu bu ti ti on on se s e r vi vi ce ce?

a.

Amu l

b. Parag

c.

Ver i f r esh

d. Ot h er  

40% Amul Amul provid provides es best best distrib distributio utionn servic service, e, 35% parag, parag, 5% Ve Verifre rifresh sh and 20% Others Provide distribution service.

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9. a.

To wh om do yo u l i ke to deal ? Di st r i but or s

b. Comany

45% Shop Retailers like distribution service and 55% shop retailer like company service.

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1 0. 0.

W hi hi ch ch ti ti me me do do yo yo u p re r e f er er fo f o r o rd rd er er ?

a.

Mo r ni n g

c.

Even i n g

b. Af t er n oon

75% Retailer Prefer order in morning, 3% Afternoon and 22% evening.

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11.. 11 a.

Is the t here re any a ny pro probl blem em reg regar ardi ding ng the the Amu Amull Gold Gold Mil Milk? k? Yes

b. No

80% Retailers are saying No one Problem Problem in Amul Gold milk and and 20% are says yes.

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1 2. 2.

H o w ma ma ny ny mi m i lk lk b ra ra nd nd s y ou ou us u s in in g in in sn sn t. t. ?

a.

Amu l

c.

Ro l i

b. Parag

55% Retailers are using Amul Milk, 35% Parag and 10% Roli.

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13.. 13

How Ho w man manyy pac pa cke kets ts of of Amu A mull do do you you sell sell dai daily ly??

a.

Amu l Gol d

b. Amul Taaza

c.

Amu l Chi l

d. Batter Milk  

47% Amul Gold, 32% Amul Taaza, 11% Amul Chil and 10% Batter Milk.

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STATEMENT OF FINDINGS & RECOMMENDATION FINDINGS:

•

35% Shop Retailers per month sales 0-5000 Rs, 20% Shop Retailers per month Sales 5000-10000 Rs, 30% Shop Retailers per month Sales 10000-20000 Rs and 10% Shop Retailer per month Sales Sales More then 30000 30000 Rs.

•

45% Shop Retailers have Amul brand own shop, 35% Shop Retailers have Parag brand own shop, 5% Shop Retailers have Verifresh brand own shop and 15% Shop Retailer have Other Brand own shop.

•

45% Custom Customer er Preferred Preferred by Amul, Amul, 35% Custome Customerr Preferred Preferred by Parag Parag,, 5% Customer Preferred by Verifresh and 15% Customer Preferred by Other Brands.

•

60% Customer opinion about Amul gold milk is Good, 30% Customer opinion about Amul gold milk is Very Good and 10% Customer opinion about Amul gold milk is Excellent.

•

Average customer demand for Amul is 40%, 33% Customer prefer Parag, 5% customer prefer to use Verifresh and 22% Customer Demand for others Brand milk.

•

60% Retailers are saying Amul Milk is Good, 37% Retailers are saying Very Good and 3% Retailers are saying Excellent.

•

Parag is 97% competitor competitor of Amul Gold Milk and Verifresh is 3%.

•

40% Amul Amul provides best distribution distribution service, service, 35% parag, parag, 5% Verifresh and 20% Others Provide distribution service. 104 | P a g e

•

45% 45% Shop Shop Retai Retaile lers rs like like dist distrib ribut ution ion serv servic icee and and 55% 55% shop shop reta retaile ilerr like like company service.

•

75% Retailer Prefer order in morning, 3% Afternoon and 22% evening.

•

80% Retailers are saying No one Problem Problem in Amul Gold milk and 20% are says yes.

•

55% Retailers are using Amul Milk, 35% Parag and 10% Roli.

•

47% Amul Gold, 32% Amul Taaza, 11% Amul Chil and 10% Batter Milk.

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SUGGESTIONS AND RECOMMENDATION

1.

Give Give the the cre credi ditt purc purcha hase se faci facili lity ty to the their reg regul ular ar Ret Retai aile lers rs..

2.

As quic quickk as as Pos Possib sible le try to settl settlee the the vario various us claim claimss of of the the Reta Retaile ilers. rs.

3.

They They have have to co-op co-oper erate ate thos thosee ret retail ailer erss who who have have a les lesss dema demand nd in shop shop and and try to pass the various attractive schemes of the company.

4.

Were the the mil mil va van doe does not not reac reachh the the side side lo locati cation on the there re sho shouuld be be smal smalll distribution by other means.

5.

Custo ustome merr rela relati tion onsship hip shoul houldd be more ore comma mmande ndeered red by dist distri ribu buto torr for  for  homonymous relationship.

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SUMMARY

If we go through the SWOT analysis analysis of Amul as a whole then we will find out it has a very good standing at market place and Amul also has very good corporate image among present companies and. It should cash his image by effective using of marketing mix. The research which we have conducted we found that if Amul wants to stand in top  position  position he has has to maintain maintain himself himself in some some areas. areas. •

Advertising frequency

•

Customer Relationship

•

Dealer board sign board and banner etc.

•

Retaining the small customer also.

•

Availability (Distribution network). Product quality and packing

As we have found in our research that Amul has good market share in pouch milk, as compared to other competitors. However, Amul has very good brand image and corporate image too. But still Amul is not able to cash all the opportunity, which exists in the market.

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ANNEXURE QUESTIONNAIRE Name of Retailer: ………………………...................................................................... Name of Retail Shop: ....……………………………………………………………… Address: ……………………………………………………………………………… Contact No: ………………………………………………………………………….

1. What What is your your averag averagee sales sales per mont month? h? (a)

0 -5000 -5000 Rs.

(c)

10000-20000 Rs.

(b)

5000-100 5000 -10000 00 Rs.

(d)

more than 30000 Rs.

2. Which brands of pouch pouch milk have you in your your shop? (a) Amul

(b)

Parag

(c) verifresh

(d)

Others

3. Which brand is preferred by customer? (a) Amul

(b) Parag

(c) Verifresh

(d) Others

4. Customers opinion about Amul Amul Gold milk? (a) Good

(b) Very good

(c) Excellent

5. Average customer demand of different brands of Gold milk? (a) Amul

(b) Parag

(c) Verifresh

(d) Others 108 | P a g e

6. Distribution of Amul Gold milk? (a) Good

(b) Very Good

(c) Excellent

7. Best competitors of Amul Gold milk? (a) (a) Pa Parag rag

(b) (b) Ve Verifr rifreesh

8. Which brand provides best distribution service? (a) Amul

(b) Parag

(c) Verifresh

(d) Others

9. To whom do you like to deal? (a) Distributors

(b) Company

10. Which time do you prefer for order? (a) (a) Mor Morni ning ng

(b) (b) Aft After er noon noon (c) (c) Eve Eveni ning ng

11. Is there any problem regarding the Amul Gold milk? (a) Yes

(b) No

12. How many milk brands you using Insnt. a.

Amul

b.

Parag

c. Roli

13. How many packets of Amul do you sell daily? a.

Amul Gold

b.

Amul Taaza

c.

Amul Chil

d.

Batter Milk 

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14.

What does think about about supply of Amul Amul is it timely or late. It comes comes before Parag

or not? ............................................................................................................................................. ....................................................................................................................................... 15.

I am giving giving a schem schemee is 3 child child free free in 60 pac packet ketss or I child child in in 30 packet packet of child child you getting it?

............................................................................................................................................. .......................................................................................................................................

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BIBLIOGRAPHY REFERENCE BOOKS: 





Marketing Research (Author - G C Beri) 

(Published by Tata McGraw Hill Publishing Co. LTD., New Delhi)



Third Edition(2002)

Marketing Management (Author – Rajan Saxena) 

(Publish by Tata McGraw Hill Publishing Co. LTD., New Delhi)



Second Edition(2001)

Marketing Management (Author- Philip Kotler)  



(Publish by Pren Tice-hall of India PVT. LTD., New Delhi)  Ninth Edition Edition

Research Methodology (Author – Bhandrai) 

Print 2004, second edition

MAGAZINES : •

Times of India

•

Business Today

WEBLIOGRAPHY:

1. www.a w.amul. mul.ccom 2.

www.anulindia.com

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