Introductio n & history
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In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION . This union selected the brand name AMUL in 1955. The brand name Amul means “AMULYA”. This word derived
from the Sanskrit word “AMULYA” which means “PRICELESS”. A qual qualit ity y cont contro roll expe expert rt in An Anan and d had had su sugge ggest sted ed the the bran brand d name name “AMUL”. Amul products have been in use in millions millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Che Cheese, Amul Choco hocollates, es, Amul Shrikhand, Amul Ice cream eam, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symb sy mbol ol of many many thin things gs lik like of the the hi high gh-q -qua uali lity ty prod produc ucts ts sold 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 have a proven model for dairy development (Generally known as “ANAND PATTERN”). In the early 40’s, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was
Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombayfrom the Kaira distri dis trict. ct. This This system system leads to exploit exploitati ation on of poor and illiter illiterate ates’ s’ farmers by the private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word.
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However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk.
These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union. However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira district 3
went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was seve severrely ely affe affect cted ed.. The The milk milk comm commis issi sion oner er of Bomb Bombay ay then then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand. Thu Thus s thei theirr coop cooper erat ativ ive e unio unions ns wer were for forced at the the vill village age and and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest in establishing union who was supported by Shri ead the farmers ers in formin ing g the the CoCoTribhuvandas ribhuvandas Patel Patel who lead operative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on Sinc nce e farm farmer ers s sold sold all all the the milk milk in An Anan and d 14th Decemb December er 1946 1946. Si through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL.
At the initial stage only 250 liters of milk was collected every day. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs liters of milk milk every every day. day. Since Since milk milk was a perishab perishable le commod commodity ity it becomes becomes 4
difficult to preserve milk flora longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more more than than 150 chilli variou ous s vill villag ages es.. Milk Milk is chilling ng center centers s in vari collected from almost 1073 societies. With the financial help from UNICEF, assistance from the govt. of New Zealand under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Dr.Rajendra
Prasad, the president of India laid the foundation on November 15, 1954. Shri Pandit Jawaharlal Nehru , the prime minister of India declared it open at Amul dairy on November 20, 1955.
PEOPLE POWER: AMUL'S SECRET OF SUCCESS SUCCESS The system succeeded mainly because it provides an assured market at remun emuner erat ativ ive e pric prices es for for prod produc ucer ers' s' milk milk besi beside des s acti acting ng as a chann channel el to mark market et the the prod product uctio ion n enhan enhancem cemen entt pack package age.. What What's 's mor more, it does does not not di dist stur urb b the the agr agro-sys o-syste tem m of the the farm farmer ers. s. It also also enab enablles the the cons consum umer er an acce access ss to hi high gh qual qualit ity y milk ilk and milk ilk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that 5
the profit goes to the participants for their socio-economic upliftment and common good. Looking back on the path traversed by Amul, the fol followi owing feat featu ures make ake it a patt patter ern n and mode modell for for emul emulat atiion elsewhere.
Amul has been able to:
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Produce an appropriate blend of the policy makers farmers farmers board of management and the professionals: each group appreciating its rotes and limitations,
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Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment.
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Provide a support system to the milk produce ucers without disturbing their agro-economic systems,
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Plough back the profits, by prudent use of men, material and machines nes, in the rural secto ctor for the common good and betterment of the member producers and
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Even though, growing with time and on scale, it has remained with the smallest producer members. In that sense. Amul is an example par excellence, of an intervention for rural change. ch ange.
The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like - all through the village societies. Basically the union and cooperation of people brought Amul into fame i.e. AMUL (ANAND name whic which h su sugg gges estt THE MILK MILK UNION UNION LIMITE LIMITED) D), a name THE TASTE ASTE OF
INDIA.
ACHIEVEMENT: 6
Amul: Asia’s largest dairy co-operative was created way back in1946 to make the milk producer self-reliant self-reliant and conduct milk- business with pride. Amul has always been the trend setter in bringing and adapting the most modern technology to door steps to rural farmers. Amul created history in following areas: a)F a)First irst self self moti motiva vate ted d and and auto autono nomo mous us farm farmer ers‟ s‟ orga organi niza zati tion on comprising of more than 5000000 marginal milk producers of Kaira District. b) Created Dairy co-operatives at village level functioning with milk collection centers owned by them. c) Comp Comput uter eriz ized ed milk milk coll collect ectio ion n sy syst stem em with with elec electr tron onic ic scale scale and and computerized accounting system. d)The first and only organization in world to get ISO 9000 standard for its farmers co-operatives. e)First e)First to produce milk from powder from surplus milk. Amul Amul is the the live live examp xample le of how how co-o co-ope pera rati tion on amon amongs gstt the the poor poor mar margi gina nall far farmers ers can can prov proviide mean means s for the the soci socioo-ec eco onomi nomic c development of the under un der privileged marginal farmers.
Amul in abroad: Amul is going places. Literally After After having established its presence in China, Mauritius and Hong Kong, Kong, Gujarat Cooperative Milk Marketing Federation Federation (GCMMF), India’s largest milk cooperative, is waiting to flood the Japanese market. Then, GCMMF is also looking at Sri Lanka as one of its next export destinations. Amul products are already available on shelves across several countries, including the US, China, Australia, West Asian countries and Africa. Africa. GCMMF recorded a turnover of Rs 2,922 corer last fiscal. Its products include pouch milk, ultra heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk.
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Product profile of AMUL
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LIST OF AMUL PRODUCTS SURVEYED
Bread s read
Amul masti dahi
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Amul aneer
Liquid milk
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Amul ghee
Amul ice-cream
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Amul cool and coco
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RESEARCH METHODOL OGY OGY
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TITLE OF THE STUDY
Analytical study of Survey for AMUL products questionnaires for retailers.
RESEARCH DESIGN A Research design specifies the methods and procedures for conducting a particular study. study. It is a map (or) blue print to which the research is to be conducted. Descriptive research design has been considered as a suitable methodology for present study and for data analysis.
SAMPLING DESIGN The sampling design used was Convenience sampling, which is a nonprobability sampling method. The convenience factors were the availability and approachability of the respondents.
POPULATION
Pune Wards
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All types of outlets that stock and sell Amul products in the markets. The outlets have been classified into as follows
Super market:
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Bakeries
Tea and snacks shops
Sample size
The size of the sample is –
Ward Retailers
11 142
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Sample techniques
There are total 144 wards and these wards are allotted to 22 trainees by purposive sampling method, according to their convenient place.
OBJECTIVE OF THE RESEARCH
To To find out that which products of AMUL are being sold s old most (milk, butter, ice-cream, cheese) compare to their substitute players product and to know the satisfaction level of retailer toward our product and distribution channel.
PROBLEM STATEMENT There has been a drop in the percentage sale of AMUL milk because of lack of proper distribution channel and misconduct of distributor with retailer.
SCOPE OF THE STUDY The scope of the study is for improving AMUL’S market market share in dairy product and binding customers loyalty by providing best quality to the customer as well as retailers and also providing best distribution channel as well as possible.
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SOURCES OF DATA
Primary data
Primary data is a data which have been collected originally for the first time. in other words, primary data may be outcome of an original statistical inquiry, measurement of facts or a count that is undertaken und ertaken for the first time. For instance data of population census is primary. primary. Primary data being fresh from the fields of investigation is very often referred referred to as raw data. In the collection c ollection of primary data, a good deal of time, money and energy e nergy are required. required.
The following are the method of collecting primary data:
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Collection directly by personal investigation.
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Collection indirectly by oral investigation.
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Collection by questionnaires and schedules.
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Collection from statistical reports of correspondents and from local sources.
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Here in this project all data was collected for the first time by the application of questionnaires method of collecting primary data for Amul products and for retailers. In this research project we were 20 students and we had given g iven the ward wise area of Pune as well as Pimpri - Chinchwad.
Field work The field work for research was conducted during 1st June 2009 to July 11th, 2009 nearly spread all over the Pune area. Total 144 ward/location were divided among the group of 22 people. The prime job was to cover 144 wards of Pune city. We were given questionnaires to fill them by retailer. retailer. There was target given to us for one day that we have to get at list 15 retailer’s data and also we have to get the best possible information from the retailer about Amul products. I have covered the following places for the survey of Amul products and its retailer’s view on Amul products p roducts quality and distribution channel.
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Area covered by me:
Ward No 57 58 59 60 61 62 63 64 65
Ward Name Shankar Rao More School Rambaug Colony Kishkindha Nagar Ram Krishna Paramhans Nagar Ved Bhavan Mahatma SocietyKothrud Vanaz Company Yashwan Yashwantt Rao Chavan Natyagrah Ideal Colony
66 67
Deena Nath Mangehskar Hospital Deccan Gymkhana
86
Lohiya Nagar
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Admn Ward
Populat ion
Karve Road Karve Road Karve Road
17103 15394 15861
Karve Road Karve Road
14887 17723
Karve Road Karve Road
16468 18008
Karve Road Karve Road WarjeKarve Nagar Ghole Road Bhavani Peth
16386 15234
16848 16844 17923
Data analysis
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1) Fresh milk Total otal milk ilk con consu sum mptio ption: n:
114 11 406 lit liter per per da day
Total no brand:
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Most preferred brand
Chitle
By analyzing the data we are able to know that in the fresh-milk category there are most preferred brand is Chitle with 52% market share and after that amul comes at no.2 with having 21% market shar share in this this cate catego gory ry and and then then Katr Katraz az bran brand d come comes s on no.3 no.3 with with having market share of 13% , so here we can say that in fresh milk category category Chitle Chitle comes on no.1 position and Amul comes after that at no.2 and katraz come on no.3.
2) Curd Total no of brand:
4
Most preferred:
Sphruiti
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By analyzing this data we are able to know that in the curd category Sphruity brand comes on no.1 with having market share of 52% at after that on no.2 Amul comes with the market share of 37% and on the third rank govardhan comes with having market share of 8%.
3) Butter Total no of brand: Most preferred brand:
4 AMUL
By analyzing the data of butter category we are able to know that in butter category consumers’ first strike is done toward after Amul with having having mark market share share of 89% and after after that that Britan Britannia nia brand brand comes comes with having market share of 6% and then Nestle comes on no. 3rd with having market share of 5%.
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4) Ghee Total no of brand:
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Most preferred brand: AMUL
By analyzing this data that in ghee category catego ry the most preferred preferred brand is Amul with the market share s hare of 57% and after that Chitle comes on the 2nd place with the market share of 17% and then Govardhan brand come on 3rd rank with the market share of 7%.
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5) ICE-CREAM TOTAL NO OF BRAND: 5 MOST PREFERRED:
AMUL
By analy analyzi zing ng the the data data of ice-c ice-cre ream am cate catego gory ry,, here here we can can see that that Amul comes 1st in this category with market share of 74% and after that Kwality walls comes with having market share of 16% and then pyramid ice-cream come on no.3 with the market share of 6%.
2.
Are Ar e the these se prod produc ucts ts deli delive vere red d at at you yourr doo doors rste tep? p? YES NO
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If yes, who delivers the products? Company Directly Distributor Whole-seller Buying on own from market
3. Ar Are e you you sati satisf sfie ied d wit with h the the way way the these se prod produc ucts ts are are delivered to you? Yes No
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4. Are you you satis satisfi fied ed with with the the Qua Qualit lity y of of prod produc ucts ts you you are are selling currently? Yes no
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5. Are you you sat satisf isfie ied d wit with h the the Qual Qualit ity y of of ser servi vice ce prov provide ided d by by Company / Distributor? Yes No
6.
What What are are the the sche scheme mes s / promo promoti tion on supp support ort provi provide ded d by by the Company?
In thi his s ques questi tion on we hav have ask ask to retai tailer ler what what are the schem schemes es / prom promot otio ions ns prov provid ided ed by the the comp compan any y or di dist stri ribut butor or in current order. From this question we can easily know that retailer has getting benefit or not which is provided by the company, there may be chances of cheating by the distributor to the retailers by not giving the schemes to them. This question will help to indentifying the fraud distribution between suppliers to retailer. retailer.
7.
Any Any sug sugge gest stio ions ns for for imp impro rove veme ment nts s in in ‘Am ‘Amul ul’’ prod produc ucts? ts?
In this question we are taking suggestions through retailer for improvements improvements in AMUL products. products. If retailers retailers have bad experience experience with AMUL product they use to give there open suggestions to us, 27
because AMUL is such a big brand in dairy products which giving the best quality product to the consumer with affordable price. From this question we can easily identifying the rotten products if it’s delivered to retailer, then company can get help to rectify these errors.
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Problem statements of retailers
1. Are Are you you sati satisf sfie ied d with with the the Qual Qualit ity y of prod product ucts s you you are are sell sellin ing g currently?. 2. Are you satisfied with the Quality of service provided by Company / Distributor? 3. What What are are the the sc sche heme mes s / prom promot otio ion n su supp ppor ortt prov provid ided ed by the the Company? 4. Are Are you satisfi satisfied ed with with the way these these produ products cts are deliver delivered ed to you? 5. Any suggestions suggestions for improvemen improvements ts in ‘Amul’ products? products?
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These are the question which denotes the Amul’s whole and sole picture about its product and its quality as well as services provided by Amul and its distributors. 1) Here for the question no 1 , according to my findings in Karve area there are 95% of retailer are fully satisfied with the quality of products and remaining 5% retailers are not satisfied with the quality of the product. The remaining 5% retailers were facing problems that: ➢ ➢
Sometimes there is come bad smell from the Amul butter. butter. Amul milk is not having good durability after some day it becomes stale earlier compare to the other company’s milk.
2)Here for the question no 2 , there are 76% retailer who are satisfied with the quality services provided by the distributors but there are 24% of the retailer retailer who are are not satisfied with the services provided by the distributors The remaining 24% retailers were facing problems are as follows: ➢ ➢
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delay in delivery of product cus customer are dema emanding Amul product but there are no distributor provided to some shop,so they have to sale other brand. sometimes sometimes distributor distributor dilevers dilevers product when exp date comes to close. this retailer wants to sale amul pro product but there is no distributor them. distributor is not coming regularly. replacement is not done if product rotten.
3) The Amul Company is providing such scheme as buy 24qty Amul cool and get 1qty free free and buy 10qty butter milk and get 1qty free , but this kind of services are not provided to the retailers by distributors. 30
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99% of the retailer are not provided any scheme from the distributor.
4)Here for this question no 4, according to my findings in karve area there are 86% retailers who are satisfied satisfied with the way the product are being delivered by distributors but there are 14% retailer who are not satisfied with the way the product are delivered to them. The remaining 14% retailers facing the problems as follows: ➢ There ➢
are no distributor allotted to the retailers in some backward area Ice-cream delivery is not done in time and not done in enough quantity.
5) There are many suggestion given by retailers are as follows. ➢
➢ ➢ ➢ ➢
Quality of Amul is very good. Increase number of distributors for catering good service. Provide Provide ice-cream delivery in time and in enough quantity Provide Provide replacement if product is rotten before expired date. Increase some margin in profit.
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Suggestion s
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Suggestions:➢
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Amul is not providing good margin compare to the other brand in spite of retailer have to sale Amul products because customers are very brand loyal. Provide Provide replacement if product is being rotten before expired date. Amul should concentrate on pause area as well as backward area too Amul should provide some scheme as other company is providing.
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Conclusion
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Conclusion:I concluded that Amul has a very good image in the eye of its customer, has a very good brand b rand name. But one thing I come to know that its distribution channels in not good in some wards nd because of which retailers has to face many problem. I also saw that the price of Amul product is high as compare to its competitor product and hence Amul competitors competitors are able to attract consumer towards their product. Another thing is that Amul don’t give the replacement offers to the retailers and because bec ause of which retailers are very much dissatisfied.
Bibliography 35
➢ ➢ ➢ ➢
Book - Research Methodology Methodology by Aditham Bhujanga Bhujanga Rao www.amul.com www.Wikipedia.com www.marketresearchworld.net www.emarketer.com
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Appendixe s
Style of questionnaires:
1.
What What Kind Kind of milk milk & milk milk prod produc ucts ts do you you sell sell? ? 37
Product
Avg. Sale per wee k
Wheth er Packag ed or Loose?
If Packa ged BRAN D1
Rate (Rs./Pa ck) & Margin (in Rs)
Liquid Milk Curd / Dahi Paneer Milk Powder Butter Ghee Cheese Condensed Milk Milk Sweets (Shrikhand, Gulab Jamun etc. ) Flavoured Milk Buttermilk / Lassi Ice-Cream Other (pl. specify)
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If Packa ged BRAN D2
Rate (Rs./Pa ck) & Margin (in Rs)
If Packa ged BRAN D3
Rate (Rs./Pa ck) & Margin ( in Rs)
2.
Are Ar e th these ese pro produ duct cts s del deliv iver ered ed at your your door doorst step ep? ? Yes No
If yes, who delivers the products?
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Company Directly Distributor Whole-seller Buying on own from market Any other (Please specify)
___________
3. Are Ar e you you sat satis isfi fied ed with with the the way way the these se pro produ duct cts s are are del deliv iver ered ed to you? Yes No If No, how would you like it to be delivered? ______________________________________ _________________________________________________________ ______________________________________ ____________________ _
4. Are Ar e you you sat satis isfi fied ed with with the the Qual Qualit ity y of of pro produ duct cts s you you are are sell sellin ing g currently? Yes No If No, what are the problems with quality of these products? ______________________________________ _________________________________________________________ ______________________________________ ____________________ _
5. Are Ar e you you sati satisf sfie ied d with with the the Qua Quali lity ty of of serv servic ice e prov provid ided ed by by Com Compa pany ny / Distributor? Yes No If No, what are the problems with quality of service? ______________________________________ _________________________________________________________ ______________________________________ ____________________ _
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6. What What are are the the sche scheme mes s / prom promot otio ion n sup suppo port rt prov provid ided ed by the the Company?
______________________________________ _________________________________________________________ ______________________________________ ____________________ _
7.
Any Any sug sugge gest stio ions ns for for imp impro rove veme ment nts s in in ‘Am ‘Amul ul’’ pro produ duct cts? s?
Retailer Information:
Name Name of the Establ Establishm ishment: ent: __________ _______________ _________ ____ Type of Establishment: Establishment: ___________________ ___________________ Contact Person:
___________________
Address Address & Phone Phone No.: _________ _____________ _________ __________ __________ __________ __________ _________ _________ __________ _______ __
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