RESEARCH PROJECT REPORT ON “Comparative Study into Sales & distribution of AMUL DAIRY & PARAG DAIRY ”
SUBMITTED IN PARTIAL FULFILMENT OF THE AWARD OF THE DEGREE OF MASTERS OF BUSINESS ADMINISTRATION (20092011) MAHAMAYA TECHNICAL UNIVERSITY
Under Guidance of:
Submitted
by: Mr. CYRIL PARMAR
PRAVEEN KUMAR
(Training in charge)
MBA III (SEM) ROLL NO.0909470068
GIMT INSTITUTE OF MANAGEMENT TECHNOLOGY, GREATER NOIDA Affiliated to Mahamaya Technical University
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DECLARATION
I hereby declare that the project report entitled “Comparative
Study into Sales & distribution of AMUL DAIRY & PARAG DAIRY ” is an original and authentic work done by me and is based upon the study conducted by me.
This project report was undertaken as a part of the M.B.A. Programme of Mahamaya Technical University.
(Praveen Kumar) MBA 3rd SEM
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ACKNOWLEDGEMENT I would like to express my heartfelt gratitude toward Mr. Mr. J. K. Joshi [G. M.] the chairman of the AMUL, who gave me permission to do my Summer Training Project in AMUL. Also I would like to convey my sincere thanks to Mr. Cyril parmar (Training in charge) who supported me in acquiring practical knowledge throughout guiding me in my project.
I am deeply thankful to GIMT Institute of Management & Technology for permitting me to do Summer Training Project and encouraging me to complete successfully. I would also like to thank my faculty members, for her keen interest, valuable guidance, inspiration, immense zeal for hard work and positive outlook towards the subject. Their intellect, persuasiveness and insistence on a good work were a guiding light in the darkness of my ignorance.
I would also like to express my sincere thanks to administrative personnel who have helped me in carrying out my summer training. Lastly, I would like thank all the persons who have helped me directly or indirectly in completing my project successfully.
PRAVEEN KUMAR
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PREFACE Summer Internship Programme is a part of MBA Programme, which is very helpful in getting practical knowledge in this globalization world. Now-a-days only theoretical knowledge is not enough to success in life but most important we must have practical knowledge. With the help of this training, I came to know how to apply theoretical knowledge in practice.
Main purpose of this training is to have awareness about industrial environment and to know about different functions of an organization like Distribution, Production and Marketing.
I got an opportunity in KAIRA DISTRICT CO-OPERATIVE MILK UNION LIMITED, Anand, Gujarat to undergo Summer Internship Programme as a part of MBA Programme. I consider myself privileged that I got a chance to work with reputed company and can upgrade my knowledge related to practical aspect of business world which is very helpful in my career building.
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CONTENTS Chapter 1 •
Executive Summary
•
Introduction to the Indian Dairy Industry
•
Company Profile of Amul
•
Company Profile of Parag Dairy
•
Sales and Distribution strategies
Chapter 2 Research Methodology •
Objective of the study
•
Significance of the study
•
Research Methodology
•
Data Collection Techniques
•
Analytical Tools
•
Limitations of the study
Chapter 3 •
Data interpretation and Graphical Analysis
Chapter 4 •
Findings, suggestions and Conclusion
Annexure a) Questionnaire b) Bibliography
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EXECUTIVE SUMMARY In today’s competitive world while entering in the market it is very necessary to have good knowledge of the potential of a particular market. The growth of a company is invariably determined not just by its strategy, but on how it responds to the challenges it encounters. Over the decades AMUL has successfully countered several challenges that have come its way with innovative responses and continuous improvement, which have enabled it to remain stable and even convert some of these challenges into opportunities. It is the culture of endurance that has accorded AMUL the
insight
and
focus
to
deal
with
the
current
economic
environment. Drawing from its inner strength and beliefs, AMUL responded by launching several initiatives across all its operations in various geographies that are helping the group achieve growth even in current times. It is also this very strategic culture that will propel AMUL to continue on its growth trajectory in years to come.
The report provides a comprehensive insight into the company and also about the company’s SWOT analysis. This report mainly studies in detail the various product mix strategies of the company and also focuses on the segmentation of both company based and industry based and helps in analysing the company’s competitive advantage and the reason behind its success.
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Chapter 1 INDIAN DAIRY INDUSTRY
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INTRODUCTION TO THE INDIAN DAIRY INDUSTRY The world's biggest dairy producing country is growing fast and looking to become an export powerhouse despite major quality problems... A Note to our Readers: the following information on India's dairy sector is reproduced from India Infoline.com. India is the world's largest milk producing country and is growing fast, with an eye toward becoming a major dairy exporter. This article is helpful reading for anyone interested better understanding.
Consumer Habits and Practices Milk has been an integral part of Indian food for centuries. The per capita availability of milk in India has grown from 172 gm per person per day in 1972 to 182gm in 1992 and 203 gm in 1998-99.This is expected to increase to 212gms for 2008. However a large part of the population cannot afford milk. At this per capita consumption it is below the world average of 285 gm and even less than 220 gm recommended by the Nutritional Advisory Committee of the Indian Council of Medical Research.
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There are regional disparities in production and consumption also. The per capita availability in the north is 278 gm, west 174 gm, south 148 gm and in the east only 93 gm per person per day. This disparity is due to concentration of milk production in some pockets and high cost of transportation. Also the output of milk in cereal growing areas is much higher than elsewhere which can be attributed to abundant availability of fodder, crop residues, etc which have a high food value for milky animals. In India about 46 per cent of the total milk produced is consumed in liquid form and 47 per cent is converted into traditional products like cottage butter, ghee, paneer, khoya, curd, malai, etc. Only 7 per cent of the milk goes into the production of western products like milk powders, processed butter and processed cheese. The remaining 54% is utilized for conversion to milk products. Among the milk products manufactured by the organized sector some of the prominent ones are ghee, butter, cheese, ice creams, milk powders, malted milk food, condensed milk infants foods etc. Of these ghee alone accounts for 85%. It is estimated that around 20% of the total milk produced in the country is consumed at producer-household level and remaining is marketed through various cooperatives, private dairies and vendors. Also of the total produce more than 50% is procured by cooperatives and other private dairies. While for cooperatives of the total milk procured 60% is consumed in fluid form and rest is used for manufacturing processed value added dairy products; for private dairies only 45% is marketed in fluid form and rest is processed into value added dairy products like ghee, makhan etc.
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Still, several consumers in urban areas prefer to buy loose milk from vendors due to the strong perception that loose milk is fresh. Also, the current level of processing and packaging capacity limits the availability of packaged milk. The preferred dairy animal in India is buffalo unlike the majority of the world market, which is dominated by cow milk. As high as 98% of milk is produced in rural India, which caters to 72% of the total population, whereas the urban sector with 28% population consumes 56% of total milk produced. Even in urban India, as high as 83% of the consumed milk comes from the unorganized traditional sector. Presently only 12% of the milk market is represented by packaged and branded pasteurized milk, valued at about Rs.8, 000 crores. Quality of milk sold by unorganized sector however is inconsistent and so is the price across the season in local areas. Also these vendors add water and caustic soda, which makes the milk unhygienic.
Market Size and Growth Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued at Rs470bn. The market is currently growing at round 4% pa in volume terms. The milk surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in these milk surplus States. The top 6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu and Gujarat together account for 58% of national production.
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Milk production grew by a mere 1% pa between 1947 and 1970. Since the early 70's, under Operation Flood, production growth increased significantly averaging over 5% pa. About 75% of milk is consumed at the household level which is not a part of commercial dairy industry. Loose milk has a larger market in India as it is perceived to be fresh by most consumers. In reality however, it poses a higher risk of adulteration and contamination. The production of milk products, i.e. milk products including infant milk food, malted food, condensed milk & cheese stood at 3.07 lakh MT in 2008. Production of milk powder including infant milk-food has risen to 2.25 lakh MT in 2008, whereas that of malted food is at 65000 MT. Cheese and condensed milk production stands at 5000 and 11000 MT respectively in the same year.
Major Players The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative Milk Marketing Federation (GCMMF) is the largest player. All other local dairy cooperatives have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, etc). Other private players include J K Dairy, Heritage Foods, Indiana Dairy, Dairy Specialties, etc. Amrut Industries, once a leading player in the sector has turned bankrupt and is facing liquidation.
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Packaging Technology Milk was initially sold door-to-door by the local milkman. When the dairy cooperatives initially started marketing branded milk, it was sold in glass bottles sealed with foil. Over the years, several developments in packaging media have taken place. In the early 80's, plastic pouches replaced the bottles. Plastic pouches made transportation and storage very convenient, besides reducing costs. Milk packed in plastic pouches/bottles have a shelf life of just 1-2 days, that too only if refrigerated. In 1996, Tetra Packs were introduced in India. Tetra Packs are aseptic laminate packs made of aluminum, paper, board and plastic. Milk stored in tetra packs and treated under Ultra High Temperature (UHT) technique can be stored for four months without refrigeration. Most of the dairy co-operatives in Andhra Pradesh, Tamil Nadu, Punjab and Rajasthan sell milk in tetra packs. However tetra packed milk is costlier by Rs5-7 compared to plastic pouches. In 2008-00 Nestle launched its UHT milk. Amul too relaunched its Amul Taaza brand of UHT milk. The UHT milk market is expected to grow at a rate of more than 10-12% in coming years.
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Regulatory Framework The dairy industry was de-licensed in 1991 with a view to encourage private investment and flow of capital and new technology in the segment. Although de-licensing attracted a large number of players, concerns on issues like excess capacity, sale of contaminated/ substandard quality of milk etc induced the Government to promulgate the MMPO (Milk and Milk Products Order) in 2008. Milk and Milk Products Order (MMPO) regulates milk and milk products production in the country. The order requires no permission for units handling less than 10,000 litres of liquid milk per day or milk solids up to 500 TPA. MMPO prescribes State registration to plants producing between 10,000 to 75,000 litres of milk per day or manufacturing milk products containing between 500 to 3,750 tones of milk solids per year. Plants producing over 75,000 litres per day or more than 3,750 tones per year of milk solids have to be registered with the Central Government. The stringent regulations, government controls and licensing requirements for new capacities have restricted large Indian and MNC players from making significant investments in this product category. Most of the private sector players have restricted themselves to manufacture of value added milk products like baby food, dairy whiteners, condensed milk etc. All the milk products except malted foods are covered in the category of industries for which foreign equity participation up to 51% is automatically allowed. Ice cream, which was earlier reserved for manufacturing in the small-scale sector, has now been de-reserved. As such, no license is required for setting up of large-scale production facilities for manufacture of ice cream.
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Subsequent to de-canalization, exports of some milk based products are freely allowed provided these units comply with the compulsory inspection requirements of concerned agencies like: National Dairy Development Board, Export Inspection Council etc. Bureau of Indian standards has prescribed the necessary standards for almost all milkbased products, which are to be adhered to by the industry.
Proposal to Amend the MMPO A proposal to raise the exemption limit for compulsory registration of dairy plants, from the present 10,000 litres a day to 20,000 litres, is being considered by the Animal Husbandry Department. The 75,000-litre limit is likely to be raised either to 100,000 litres or 125,000 litres in the amended order. The new order would also do away with the provision for re-registration.
Penetration of milk products Western table spreads such as butter, margarine and jams are not very popular in India. All India penetration of butter/ margarine is only 4%. This is also largely represented by urban areas, where penetration is higher at 9%. In rural areas, butter/ margarine have penetrated in 2.1% of households only. The use of these products in the large metros is higher, with penetration at 15%.
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Penetration of cheese is almost nil in rural areas and negligible in the urban areas. Per capita consumption even among the cheese-consuming households is a poor 2.4kg pa as compared to over 20kg in USA. The lower penetration is due to peculiar food habits, relatively expensive products and also non-availability in many parts of the country. Butter, margarine and cheese products are mainly manufactured by organized sector. Similarly, penetration of ghee is highest in medium sized towns at 37.2% compared to 31.7% in all urban areas and 21.3% in all rural areas. The all India penetration of ghee is 24.1%. In relative terms, penetration of ghee is significantly higher in North and West, which are milk surplus regions. North accounts for 57% of ghee consumption and West for 23%, South & East together account for the balance 20%. A large part of ghee is made at home and by small/ cottage industry from milk. The relative share of branded products in this category is very low at around 1-2%. Milk powder and condensed milk have not been able to garner any significant consumer acceptance in India as indicated by a very low 4.7% penetration. The penetration is higher at 8.1% in urban areas and lower at 3.5% in rural areas. Within urban areas, it is relatively higher in medium sized towns at 8.5% compared to 7.7% in large metros.
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Export Potential India has the potential to become one of the leading players in milk and milk product exports. Location advantage: India is located amidst major milk deficit countries in Asia and Africa. Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located close to India. The major export products: -
The products of Amul is being exported in the 40
countries of the world . Many of the products are now available in the U.S.A , Gulf countries and Singapore. Amul products are being exported to the Singapore since last three decades . undoubtedly , Amul is the preferred taste of Indians in the Gulf countries.
Low Cost of Production: Milk production is scale insensitive and labour intensive. Due to low labour cost, cost of production of milk is significantly lower in India. Concerns in export competitiveness are Quality: Significant investment has to be made in milk procurement, equipments, chilling and refrigeration facilities. Also, training has to be imparted to improve the quality to bring it up to international standards.
Productivity: To have an exportable surplus in the long-term and also to maintain cost competitiveness, it is imperative to improve productivity of Indian cattle. There is a vast market for the export of traditional milk products such as ghee, paneer, shrikhand, rasagulas and other ethnic sweets to the large number of Indians scattered all over the world.
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India's exports of milk products Description (Quantity,
2007-08 M
2008-09
2009-10
T.:
Value, Rs. million) Quantity Value Quantity Value Quantity Skimmed milk powder 4,638.62 3,35.32 282.70 19.64 5.00 Milk and Milk Food for 8.27 2.019 111.37 4.27 11.00 babies Milk cream Sweetened condensed milk Whey Ghee/Butter/Butter oil Cheese (a) Fresh (b) Processed (c) Other TOTAL
332.23 41.73
28.04 2.84
1.00 9.22
78.46 7,895.08
3.75 431.1
11.50 299.97
0.10 5.67 66.64 -
0.013 1.20 8.35 8,72.7
2.1 36.78 -
0.084 0.97
60.39
Value 0.375 2.02
7.22
1.01 6.00 0.342 19.2 4,352.08 2,38.95
0.375 0.69 52.4
22.10 24.84 -
2.19 4.55 2,55.6
Indian (traditional) Milk Products There are a large variety of traditional Indian milk products such as Makkhan - unsalted butter. Ghee - butter oil prepared by heat clarification, for longer shelf life. Kheer - a sweet mix of boiled milk, sugar and rice. Basundi - milk and sugar boiled down till it thickens. Rabri - sweetened cream. Dahi - a type of curd. Lassi - curd mixed with water and sugar/ salt. Channa/Paneer - milk mixed with lactic acid to coagulate. Khoa - evaporated milk, used as a base to produce sweet meats. The market for
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indigenous based milk food products is difficult to estimate as most of these products are manufactured at home or in small cottage industries catering to local areas. Consumers while purchasing dairy products look for freshness, quality, taste and texture, variety and convenience. Products like Dahi and sweets like Kheer, Basundi, Rabri are perishable products with a shelf life of less than a day. These products are therefore manufactured and sold by local milk and sweet shops. There are several such small shops within the vicinity of residential areas. Consumer loyalty is built by consistent quality, taste and freshness. There are several sweetmeat shops, which have built a strong brand franchise, and have several branches located in various parts of a city.
Branding Of Traditional Milk Products Among the traditional milk products, ghee is the only product, which is currently marketed, in branded form. main ghee brands are Sagar, Milkman (Britannia), Amul (GCMMF), Aarey (Mafco Ltd), Vijaya (AP Dairy Development Cooperative Federation), Verka ( Punjab Dairy Cooperative), Everyday (Nestle) and Farm Fresh (Wockhardt).
With increasing urbanization and changing consumer preferences, there is possibility of large scale manufacture of indigenous milk products also. The equipments in milk manufacturing have versatility and can be adapted for several products. For instance, equipments used to manufacture yogurt also can be adapted for large scale production of Indian curd products (dahi and lassi). Significant research work has been done on dairy equipments under the aegis of NDDB.
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Mafco Limited sells Lassi under the Aarey brand and flavored milk under the Energee franchise (in the Western region, mainly in Mumbai). Britannia has launched flavored milk in various flavors in tetra packs. GCMMF has also made a beginning in branding of other traditional milk products with the launch of packaged Paneer under the Amul brand. It has also created a new umbrella brand "Amul Mithaee", for a range of ethnic Indian sweets that are proposed to be launched the first new product Amul Mithaee Gulabjamun has already been launched in major Indian markets.
Western Milk Products Western milk products such as butter, cheese, yogurt have gained popularity in the Indian market only during the last few years. However consumption has been expanding with increasing urbanization.
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Butter Most Indians prefer to use home made white butter (makkhan) for reasons of taste and affordability. Most of the branded butter is sold in the towns and cities. The major brands are Amul, Vijaya, Sagar, Nandini and Aarey. Amul is the leading national brand while the other players have greater shares in their local markets. The latest entrant in the butter market has been Britannia. Britannia has the advantages of a wide distribution reach and a strong brand recall. Priced at par with the Amul brand, it is expected to give stiff competition to the existing players. In 2008-00 the butter production is estimated at 4 lakh MT of this only 45K MT is in the white form used for table purposes rest all is in the yellow form.
Cheese The present market for cheese in India is estimated at about 9,000 tonnes and is growing at the rate of about 15% per annum. Cheese is mainly consumed in the urban areas. The four metro cities alone account for more than 50% of consumption. Mumbai is the largest market (accounting for 30% of cheese sold in the country), followed by Delhi (20%). Calcutta (7%) and Chennai (6%). Mumbai has a larger number of domestic consumers, compared to Delhi where the bulk institutional segment (mainly hotels) is larger.
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Demand for various types of cheese in the Indian market Type of cheese Processed Cheese spread Mozzarella Flavored/Spiced Others
% of total consumption 50 30 10 5 5
The major players are Amul, Britannia, and Dabon International dominating the market. Other major brands were Vijaya, Verka and Nandini (all brands of various regional dairy cooperatives) and Vadilal. The heavy advertising and promotions being undertaken by these new entrants is expected to lead to strong 20% growth in the segment. Amul has also become more aggressive with launch of new variants such as Mozzarella cheese (used in Pizza), cheese powder, etc.
The entry of new players and increased marketing activity is expected to expand the market. All the major players are expanding their capacities
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Capacity expansion in Cheese Company Dynamics
Brands Manufactures
Group GCMMF
Britannia Amul
APDDCF
Vijaya
State forMaharashtra
Capacity 35 tons
per
Gujarat
day 20 tons
per
Andhra
day 10 tons
per
Pradesh
day
Milk Powder Milk powder is mainly of 2 types _ Whole milk powder _ Skimmed milk powder Whole milk powder contains fat, as distinguished from skimmed milk powder, which is produced by removing fat from milk solids. Skimmed milk powder is preferred by diet conscious consumers. Dairy whiteners contain more fat than skimmed milk powder but less compared to whole milk powder. Dairy whiteners are popular milk substitute for making tea, coffee etc. The penetration of these products in milk abundant regions is driven by convenience and non perishable nature (longer shelf life) of the product.
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Dairy sector of advanced nations export milk products with a subsidy of $ 1000 per tones with a level of subsidy more than 60 % of the price of milk powder produced in India, this has led to large scale imports of milk powder both in whole and skimmed form. To protect the domestic sector from these subsidized imports the central government has recently increased the basic import duty on all imports of milk powder more than 10000 MT to 60% from 15%. For imports less than 10000 MT the basic customs duty has been left unchanged at 15%. In 2008 India is estimated to have imported about 18,000 tonnes of milk powder against a total estimated production of 2.40 Lakh MTs. In 2007-08 India is expected to export 10000 MT of skimmed milk powder due to rise in international prices to $2300 per MT from last year's levels of $1400 per MT. These expectations are based on the strong demand from Russia, East Asia and Latin America, and also on tightening of supply in EU, which accounts for 75% of the annual global Skimmed Milk Powder exports. Milk Collection Cycle The success of each and every dairy industry is the getting the milk from the farmers and making that milk in use as soon as possible before that milk get spoiled because the milk is the perishable product. For the smooth running the business of dairy industry the industry must concentrate on the milk collection cycle. Amul dairy is very conscious about the milk collection cycle because the base of the success of the Amul is milk collection cycle.
Production capacity of Amul Butter
50 to 60 Tones
Powder plant
70 tones
Powder plant
60 tones
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Flavour milk
40000 bottles
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Major Players Milk Powder/Dairy Whiteners: Major skimmed milk brands are Sagar (GCMMF) and Nandini (Karnataka Milk Federation), Amul Full Cream milk powder is a whole milk powder brand. Leading brands in the dairy whitener segment are Nestlé’s Everyday, GCMMF's Amulya, Dalmia Industry's Sapan, Kwality Dairy India's KreamKountry, Wockhardt's Farm Fresh and Britannia's Milkman Dairy Whitener.
Condensed Milk The condensed milk market has grown from 9000 MT in 2007 to 11000 MT in 2008. Condensed milk is a popular ingredient used in home-made sweets and cakes. Nestlé’s Milkmaid is the leading brand with more than 55% market share. The only other competitor is GCMMF's Amul.
Infant Foods Nestle is the market leader in the segment. This is a category where brand loyalties are very strong as mothers want the best for their babies. Heinz is the only other significant competitor to Nestle in this segment. Nestlé’s Cerelac and Nestum together have around 80% market share and Heinz's Farex has close to 18% share. Work hard is a relatively new entrant with its First Food brand. Wockhardt also proposes to launch a new baby food Easum containing moong (moong is one of the easily digestible pulses). The Easum brand will directly compete with Nestle's Nestum (made from rice).
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In infant formula also Nestle's Lactogen formula and Lactogen standard formula are the leading brands with around 75% market share. Other brands are Heinz's Lactodex Farex, Wockhardt's *Raptakos, and Amul's Amulspray
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Major dairy products manufacturers Some of the major dairy products manufacturers in the country: Company Nestle
Brands Major Products India Milkmaid, Cerelac, Sweetened condensed milk,
Limited
Milk Limited Smith Beecham
food
Lactogen, Milo,
malted foods, milk powder
Everyday Milk food
and Dairy whitener Ghee, ice cream, and other
Kline Horlicks, Maltova, Viva
Limited
Indodan Industries Limited
milk products Malted Milk food, ghee, butter, powdered milk, milk fluid and other milk based
Indana
baby foods. Condensed milk, skimmed milk powder, whole milk powder, dairy milk whitener, chilled and processed milk
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Gujarat operative
Co-
Amul
milk
Butter, cheese and other milk products
Marketing Federation Limited H.J. Limited
Heinz Farex, Complan, Glactose,
Infant Milkfood, malted Milkfood
Bonniemix,
Britannia
Cadbury
Vitamilk Milkman
Flavored milk, cheese, Milk
Bournvita
Powder, Ghee Malted food
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Manufacturing Process Milk is pasteurized by treating it to high temperature for a short time. The main aim in treating milk with high temperature is to destroy the disease causing pathogens and to improve keeping quality. Separation machine is typically a high powered centrifuge. The centrifugal force makes milk fat globules and emerges as cream from the separator bowl. Separation of cream produces skim milk from which several dairy products are made. Baby food: Fresh milk, which is received from farmers/ traders, is chilled and stored. Then MSK skimmed/ wet skimmed milk and sugar are added in turbo mixture to achieve the desired specifications of ingredients in the milk. This is followed by addition of vitamins and minerals. This milk which contains ingredients to specifications is filtered, cooled, analyzed and then purified. Then it passes through specific pasteurization and is taken to evaporator for pre-condensing. Pre-condensate is homogenized, cooled and stored. Cooled pre-condensate is heated and dried in spray drier (Egron). Then sugar is added. The powder is then passed through chemical analysis to check quality and is filled in tins through filling machines. These tins are gassed during gas mix and then sealed, packed and dispatched in cardboard cartons.
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Butter: Whole milk is first separated into skim milk and cream by centrifugal force in a separator. The cream is then pasteurized either through batch process or a continuous process. In batch process, cream is heated to a minimum of 740 C and held at the temperature for 30 minutes, while in continuous process it is heated at 850 C and is held for only 15 seconds. The heat treatment destroys bacteria, inactivates enzymes and gives the cream a cooked flavour. After pasteurization, a tempering process is applied in which cream is held at 100 C to allow rearrangement of the fat crystals. The cream is then churned to produce butter. Continuous churning converts cream into butter in a few minutes while batch churning takes a longer time. Composition and colour adjustment is also done at the churning stage and a salt solution is added to give the finished butter a salty taste. About 13 litres of milk with 6% fat is required to produce 1 kg of butter.
Cheese: There are thousands of varieties of cheese in the world. The type of manufacturing process used in the production of cheese determines its flavour, which ranges from extremely mild to very sharp, and its texture, which can be semi-solid to almost stone hard. Cheese making requires four main ingredients - good quality milk, rennet or coagulating acids, culture and salt. Cheese is generally made from cow's milk. About 10 litres of milk with 3% fat is required for making 1 kg of cheese. Natural Cheese is made by coagulating or curdling milk, stirring & heating the curd, draining off the whey and collecting or pressing the curd. The desired flavour and texture is obtained by varying the temperature, humidity and time period of the curing process. Sweetened condensed milk is usually made from fresh milk by adding sugar to the milk pre-warming
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and concentrating the mixture in the high vacuum. The syrupy milk is then cooled so that the lactose crystallizes as very fine crystals and then the product is coagulated. Future Prospects India= = s dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. Moreover with WTO regulations expected to come into force in coming years all the developed countries which are among big exporters today would have to withdraw the support and subsidy to their domestic milk products sector. Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japan= = s $2.8 dollars. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of these milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form. The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.43,500 crores by year 2008. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products. By 2008, the value of Indian dairy produce is expected to be Rs 10, 00,000 million. Presently the market is valued at around Rs7, 00,000mn.
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COMPANY PROFILE OF AMUL The Amul – Meaning AMUL means “ priceless “ in Sanskrit . A quality control expert in Anand suggested the brand name “AMUL” from the Sanskrit word “Amoolya” variants, all meaning “priceless” are found in several Indian languages. Amul products have been used in millions of home since 1946 .
Amul butter
Amul milk powder
Amul ghee
Amulspray
Amul cheese
Amul chocolates
Amul Ice- cream
Today Amul is a symbol of many things . of high – quality products sold
at
reasonable prices . F triumph of indigenous technology . Of the marketing savvy of a farmers organization . And proven model for dairy development .
MOTTO, VISION, AND QUALITY POLICY MOTTO The main motto of AMUL is to help farmers. Farmers were the foundation stone of AMUL. The system works only for farmers and for consumers, not for profit. The main of AMUL is to provide quality products to the consumers at minimum cost. The goal of AMUL is to provide maximum profit in terms of money to the farmers.
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VISION Vision of AMUL is to provide and vanish the problems of farmers (milk producers). The AMUL apparition was to run the organization with co-operative of four main parties, the farmers, the representatives, the marketers, and the consumers. QUALITY POLICY We the motivated and devoted work force of AMUL are committed to produce whole some and safe foods of excellent quality to remain market leaders through deployment of quality management system, state of art technology innovation and eco- friendly delightment of customer and betterment of milk producer HISTORY In early 1940’s a farmer in Kaira district, as elsewhere in India, derived his income almost entirely from seasonal crops. The income from milk was paltry and could not be depended upon. The main buyers were milk traders of Polson Ltd.-a privately owned
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company that enjoyed monopoly for supply of milk from Kaira to the Government Milk Scheme Bombay. The system leads to exploitation of poor and illiterate farmers by the private traders. 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 cooperative union, instated of supplying milk to private traders. Sardar Patel sent the farmer to Shri Morarji Dasai in order to gain his Co-operation and help. Shri Dasai held a meeting at ‘Samrkha’ village near Anand, on January 4, 1946. He advised the farmers to from a society for collection of the milk.These village societies would collect the milk themselves and also decided prices for that which would be profitable for them. The district union was also from to collect the milk from such village cooperative societies and to sell them. It was also resolved that the government should asked to buy milk from the union. However, the government did not seem to help farmer by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of government, farmer of Kaira district went on a milk strike. For 15 days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Finely he decided to fulfill the farmers demand.
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Thus their cooperative unions were forced at village and district level to collect and sell milk on a cooperative basis, without the intervention of government. Mr. Verghese Kurien had main interest in establishing union who was supported by Shri Tribhuvandas Patel who convinced farmers in forming the cooperative unions at thevillage level. ‘The Kaira District Co-operative Milk Producers’ Union’ was thus established in Anand and was registered formally under section 10 of Bombay Act VII of 1925 on December 14, 1946. Since then farmers are selling all the milk in Anand through cooperative union. In 1955 it was commonly decided the sell milk under the brand name ‘Amul’ At the initial stage only 250 liters of milk was collected everyday. But with the growing awareness of the benefits of the co-operative-ness the collection of milk increased. Today Amul collect 50, 00,000 liters of milk everyday. As the milk is perishable commodity it became difficult to preserve milk for a longer period. Besides when the milk was to be collected from the far places there was a fear of spoiling of milk. To over come this problem the union thought to develop the chilling unit at various junctions, which would collect the milk and could chill so as preserve it a for a longer period. Thus, today Amul has more than 168 chilling centers in various villages. Milk is collected from almost 1097 societies. With the financial help from UNICEF, assistance from the government of New Zealand under the Colombo plan, of Rs. 50 million for factory to manufactory milk powder and butter. Dr. Rajendara Prasad, the president of India laid the foundation on November 50, 1954. Shri Pandit Jawaharlal Nehru, the prim minister of India declared it open at Amul dairy on November 20, 1955.
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A plant to manufacture balanced cattle feed was formally commissioned on October 31, 1964 by Shri Lalbahadur Shastri, the Prime Minister of India. At the request of the government of India, a new dairy with a capacity to manufacture 40 tons of milk powder and 20 tons of butter a day was completed in 1963. This was meant to meet the requirement of India’s defense forces. The dairy was declared open by ShriMorarji Desai in April, 1965. in 1974, the Kaira Union setup a plant to manufacture high-protein weaning food, chocolate and malted food at Mogar, about 8 km south of Anand. In September, 1981, the second cattle feed plant at ‘Kanjari’ were started. The succesion of the co-generation project on September 11, 1985, marked a milestone on the energy front when two gas turbine generators of 1.5 MW each based on natural gas, were commissioned. On October 31, 1992, Dr. V. Kurien chairman, National Dairy Development Board, laid the foundation of Kaira Union’s third dairy with a processing capacity of 6.5 lakh liters of milk a day. Work on the third dairy and cheese plant at ‘Khatraj’ with capacity for 20 Metric Ton of cheese per day, began in February, 1994. Also in 1994, Kaira Union put up bread spread plant at ‘Mogar’ with the assistance from National Dairy Development Board. Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It is a state level apex body of milk 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.
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Members:
13 district cooperative milk producers' Union
No. of Producer Members:
2.6 million
No. of Village Societies: Total Milk handling capacity:
12,792 10.16 million litres per day
Milk collection
2.38 billion litres
Milk collection
6.5 million litres
Milk Drying Capacity:
594 Mts. per day
Cattle feed manufacturing Capacity: About Machinery
2640 Mts per day
In AMUL – 3 production of powder, Butter and Milk are being done continuously. These productions are done by latest machineries equipped with computer system and it is handled by one technicians.
-
The Milk pasteurizer machines belong to Alfa level company of Pune
-
Powder plant machineries belong to L & T Larson and Turbo company of India
-
Butter production machineries belong to S.G.company of switrzland and other
-
Butter manufacturing production machineries belong to Simon Feres com.of France
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ORGANISATION STRUCTURE OF AMUL Board of Director
CHAIRMAN MANAGING CHAIRMAN GENERAL MANAGER
ASSISTANT GENERAL MANAGER
MANAGER DEPUTY MANAGER
ASSISTANT MANAGER SENIOR EXECUTIVE
SENIOR OFFICER SENIOR ASSITANT WORKERS
Grade ( Ato E) .
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Sales Turnover Sales 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
52254
1325
2008-09
67113
1505
2009-10
80053
1700
List of Products Marketed: Bread spreads: •
Amul Butter
•
Amul Lite Low Fat Bread spread
•
Amul Cooking Butter
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Cheese Range: •
Amul Pasteurized Processed Cheddar Cheese
•
Amul Processed Cheese Spread
•
Amul Pizza (Mozzarella) Cheese
•
Amul Shredded Pizza Cheese
•
Amul Emmental Cheese
•
Amul Gouda Cheese
•
Amul Malai Paneer (cottage cheese)
•
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
•
Avsar Ladoos
UHT Milk Range: •
Amul Shakti 3% fat Milk
•
Amul Taaza 1.5% fat Milk
•
Amul Gold 4.5% fat Milk
•
Amul Lite Slim-n-Trim Milk 0% fat milk
•
Amul Shakti Toned Milk 44
•
Amul Fresh Cream
•
Amul Snowcap Softy Mix
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
Sweetened Condensed Milk: •
Amul Mithaimate Sweetened Condensed Milk
Fresh Milk: •
Amul Taaza Toned Milk 3% fat
•
Amul Gold Full Cream Milk 6% fat
•
Amul Shakti Standardized Milk 4.5% fat 45
•
Amul Slim & Trim Double Toned Milk 1.5% fat
•
Amul Saathi Skimmed Milk 0% fat
•
Amul Cow Milk
Curd Products: •
Yogi Sweetened Flavoured Dahi (Dessert)
•
Amul Masti Dahi (fresh curd)
•
Amul Masti Spiced Butter Milk
•
Amul Lassee
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Amul Ice creams: •
Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)
•
Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond)
•
Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)
•
Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
•
Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Mega bite, Cassatta)
•
Utterly Delicious (Vanilla, Strawberry, Chocolate, Choc chips, Cake Magic)
Chocolate & Confectionery: •
Amul Milk Chocolate
•
Amul Fruit & Nut Chocolate
Brown Beverage: •
Nutramul Malted Milk Food
Milk Drink: •
Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate)
•
Amul Kool Cafe
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Health Beverage: •
Amul Shakti White Milk Food
Amul Butter Girl Edited from an article by Mini Verma published in The Asian Age on March 3, 1996
The moppet who put Amul on India's breakfast table 50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a year in 1966 to over 25,000 tonnes a year in 2008. No other brand comes even close to it. All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses.
Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old housewife is out in the balcony drying clothes. From her second floor flat she can see her neighbours on the road. There are other people too. The crowd seems to be growing larger by the minute. Unable to curb her curiosity Sheela Mane hurries down to see what all the commotion is about. She expects the worst but can see no signs of an accident. It is her four-year-old who draws her attention to the hoarding that has come up overnight. "It was the first Amul hoarding that was put up in Mumbai," recalls Sheela Mane. "People loved it. I remember it was our favourite topic of discussion for the next one week! Everywhere we went somehow or the other the campaign always seemed to crop up in our conversation."
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Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you, from strategically placed hoardings at many traffic lights. She is the Amul moppet everyone loves to love (including prickly votaries of the Shiv Sena and BJP). How often have we stopped, looked, chuckled at the Amul hoarding that casts her sometime as the coy, shy Madhuri, a bold sensuous Urmila or simply as herself, dressed in her little polka dotted dress and a red and white bow, holding out her favourite packet of butter. For 30 odd years the Utterly Butterly girl has managed to keep her fan following intact. So much so that the ads are now ready to enter the Guinness Book of World Records for being the longest running campaign ever. The ultimate compliment to the butter came when a British company launched butter and called it Utterly Butterly, last year. It all began in 1966 when Sylvester daCunha, then the managing director of the advertising agency, ASP, clinched the account for Amul butter. The butter, which had been launched in 1945, had a staid, boring image, primarily because the earlier advertising agency which was in charge of the account preferred to stick to routine, corporate ads.
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One of the first Amul hoardings
In India, food was something one couldn't afford to fool around with. It had been taken too seriously, for too long. Sylvester daCunha decided it was time for a change of image. The year Sylvester daCunha took over the account, the country saw the birth of a campaign whose charm has endured fickle public opinion, gimmickry and all else. The Amul girl who lends herself so completely to Amul butter, created as a rival to the Polson butter girl. This one was sexy, village belle, clothed in a tantalizing choli all but covering her upper regions. "Eustace Fernandez (the art director) and I decided that we needed a girl who would worm her way into a housewife's heart. And who better than a little girl?" says Sylvester daCunha. And so it came about that the famous Amul Moppet was born. That October, lamp kiosks and the bus sites of the city were splashed with the moppet on a horse. The baseline simply said, Thorough bread, Utterly Butterly Delicious Amul,. It was a matter of just a few hours before the daCunha office was ringing with calls. Not just adults, even children were calling up to say how much they had liked the ads. "The response was phenomenal," recalls Sylvester daCunha. "We knew our campaign was going to be successful."
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For the first one year the ads made statements of some kind or the other but they had not yet acquired the topical tone. In 1967, Sylvester decided that giving the ads a solid concept would give them extra mileage, more dum, so to say. It was a decision that would stand the daCunhas in good stead in the years to come. In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna movement, Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative team working on the Amul account came up with a clincher -- 'Hurry Amul, Hurry Hurry'. Bombay reacted to the ad with a fervour that was almost as devout as the Iskon fever. That was the first of the many topical ads that were in the offing. From then on Amul began playing the role of a social observer. Over the years the campaign acquired that all important Amul touch. India looked forward to Amul's evocative humour. If the Naxalite movement was the happening thing in Calcutta, Amul would be up there on the hoardings saying, "Bread without Amul Butter, cholbe na cholbe na (won't do, won't do). If there was an Indian Airlines strike Amul would be there again saying, Indian Airlines Won't Fly Without Amul.
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There are stories about the butter that people like to relate over cups of tea. "For over 10 years I have been collecting Amul ads. I especially like the ads on the backs of the butter packets, "says Mrs. Sumona Varma. What does she do with these ads? "I have made an album of them to amuse my grandchildren," she laughs. "They are almost part of our culture, aren't they? My grandchildren are already beginning to realise that these ads are not just a source of amusement. They make them aware of what is happening around them." Despite some of the negative reactions that the ads have got, DaCunhas have made it a policy not to play it safe. There are numerous ads that are risqué in tone. "We had the option of being sweet and playing it safe, or making an impact. A fine balance had to be struck. We have a campaign that is strong enough to make a statement. I didn't want the hoardings to be pleasant or tame. They have to say something," says Rahul daCunha. "We ran a couple of ads that created quite a furore," says Sylvester daCunha. "The Indian Airlines one really angered the authorities. They said if they didn't take down the ads they would stop supplying Amul butter on the plane. So ultimately we discontinued the ad," he says laughing. Then there was the time when the Amul girl was shown wearing the Gandhi cap. The high command came down heavy on that one. The Gandhi cap was a symbol of independence; they couldn't have anyone not taking that seriously. So despite their reluctance the hoardings were wiped clean. "Then there was an ad during the Ganpati festival which said, Ganpati Bappa more Ghya (Ganpati Bappa take more). The Shiv Sena people said that if we didn't do something about removing the ad they would come and destroy our office. It is surprising how vigilant the political forces are in this
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country. Even when the Enron ads (Enr on or off) were running, Rebecca Mark wrote to us saying how much she liked them."
Amul's point of view on the MR coffee controversy
There were other instances too. Heroine Addiction, Amul's little joke on Hussain had the artist ringing the daCunhas up to request them for a blow up of the ad. "He said that he had seen the hoarding while passing through a small district in UP. aHe sid says Rahul daCunha in amused tones. Indians do have a sense of humour, afterall.he had asked his assistant to take a photograph of himself with the ad because he had found it so funny," From the Sixties to the Nineties, the Amul ads have come a long way. While most people agree that the Amul ads were at their peak in the Eighties they still maintain that the Amul ads continue to tease laughter out of them. Where does Amul's magic actually lie? Many believe that the charm lies in the catchy lines. That we laugh because the humour is what anybody would enjoy. They don't pander to your nationality or certain sentiments. It is pure and simple, everyday fun.
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PRODUCTION &OPERATION DEPARTMENT INTRODUCTION Production management is refers to the process of correction of past mistakes catching up with the new techniques, taking up steps with developing techniques and taking measures for the production of goods at competitive cost.” The basic philosophy of production management is to launch a frontal attack on direct costs and effective use the availability manpower weaving new techniques in to the whole to keep the production unit efficient and developing production management is the process of planning, organizing, directing and controlling. The Amul is started with only 250 liters of milk per day. But now Amul collect average 9 lakhs of liters milk per day. At the initial stage, Amul has not any problem regarding milk, but in the winter season there was excess supply of milk. So, Amul has to sell out that excess milk at the low price or Amul has to face loss. To removing these problems Amul take decision to set up a plant to process the surplus milk butter and milk powder. Today the Amul has three plants Known as Amul 1, 2 & 3 all three plant work 24 hours a day continuously. The all manufacturing process is done automatically. The production is done in the special machines. These machines and the technology are import-id from the TRFTA PEAK Company. There is also facility of chilling of milk, so that the milk remains usable. Today three plant of AMUL perform different function. AMUL – 1 presently it is use as a go down for storing raw materials.
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1. AMUL – 2 Today in this unit, the production process of Ghee and packings are running . 2. AMUL – 3 This unit is producing AMUL butter, AMUL spray powder, and flavored milk. Organization Structure Managing Director General Manager
Dairy Plant Manager (Production)
Asstt. G. M. Manager
Officer
(Eng.) Dy. Manager
A.M. (Eng.)
Workers
Officers
(Eng.) A.M.
Technicians
(Eng.) Eng. Workers Officers Technicians Eng. Worker
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Milk Collection Cycle The success of each and every dairy industry is the getting the milk from the farmers and making that milk in use as soon as possible before that milk get spoiled because the milk is the perishable product. For the smooth running the business of dairy industry the industry must concentrate on the milk collection cycle. Amul dairy is very conscious about the milk collection cycle because the base of the success of the Amul is milk collection cycle.
Production capacity of Amul Butter
50 to 60 Tones
Powder plant
70 tones
Powder plant
60 tones
Flavour milk
40000 bottles
About Machinery In AMUL – 3 production of powder, Butter and Milk are being done continuously. These productions are done by latest machineries equipped with computer system and it is handled by one technicians. -
The Milk pasteurizer machines belong to Alfa level company of Pune
-
Powder plant machineries belong to L & T Larson and Turbo company of India
-
Butter production machineries belong to S.G.company of switrzland and other
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-
Butter manufacturing production machineries belong to Simon Feres com.of France
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Amul – 2 Raw Reception Dock Reception dock is the very first department of any dairy where milk is unloaded and simultaneously tested . Amul-2 has a well designed RMRD , situated in the west wing of dairy . Raw milk at Amul- 2 is received mainly through cans . There are 2 reception lines for unloading milk cans in Amul – 2 . About 60 % of reception is of buffalo milk and remaining 40% is cow milk .
Flow chart of Amul-2 process Unloading of cans Chain conveyer Removal of cans lid Physically inception of milk Transfer of milk to dump tank ( 12-13cans/ min) Filter Weighing Raw milk collection tank – Amul -3 Pasteurization ( At 80 C for 15 seconds) Standardization Processed milk silo
Sent to different production section
milk pouch packing
section 59
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Butter section The utterly Butterly Delicious butter of the Amul is one of the most popular product of Amul dairy along with the famous butter girl . The butter section is located in Amul -3 which manufactures Table Butter , white butter and renduced salt butter . The section is completely computer controlled and is equipped with most modern imported equipments .Butter section
very important as it handles fat, which is the costliest
constituent . The cream obtained from process section is fully utilized for butter making . Amul white and table Butter is exported to USA and various Middle Eastern countries .
OPERATION The cream for manufacturing Butter is receiving from Amul-3 process section while standardization of milk . In Amul -3 the milk fat will be separated at above 60 Celsius , the centrifugal separators inline with Milk pasteurizer separate this as cream . The cream thus separated is pasteurized and then pumped to the cream buffer tanks and to cream silo .After ageing at 8 Celsius for 24 hrs , cream is pumped to cream chilling unit in the butter section . there the temperature of cream is adjusted to the required churning temperature of continuous Butter Making Machine.
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Flow chart of Butter processing Raw cream Pasteurizer (90 to 95 C ) Cooling (8-9 C) Ageing(8-9 C/ 24hours) Cream Balance tank PHE ( for temperature adjustment at 6-8 C)
Churning (speed 500- 1200rpm) Butter Grains Washing with butter milk
butter Milk
Working ( 30- 70rpm ) 2nd washing with butter milk silo working
white butter addition
salt (@2%) &color
15 kg packing Blending ( 25-30 rpm &vacuum )
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export ghee
butter section packaging lines
9.1g blister pack (Army)
100g refill pack
100g refill pack
400tin Air pack (2gm)
Packing materials used : •
Delocalize market Double laminated is used for export
•
Tin – used for 400g Army pack
•
Card board box- used for tertiary packing 3ply for 9.1 g weight package 5ply for normal & export
Powder plant F-35 plant is situated in Amul -2 near to the railway siding . The plant is a single stage drying plant having a capacity of 35 TDP. The plant is not in regular use and mainly used for the manufacturing of cheese whey powder . F-35 CONDENSING PLANT DETAILS
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Make : SSP ,Faridabad Type : Falling film vertical tube type No of Pre heater : 5 No of calendria : 7 No of vapor separators : 5
OPERATION DETAIL PRODUCT USE AND CHARACTERISTICS MILK One of the most versatile food consumed by us. All children start their with mother’s milk and continue to use it in one other throughout their life. It is the secretion from the mammary glands of a lactating mammal. The white fluid, know as milk, is made up of milk fat and other milk solids. AMUL ICE CREAM Amul ice cream is made up from fresh milk. Ice cream are rich in protein, calcium, dairy cream and vitamins. Ice cream are a complete food, easy to digest and full of energy. MANUFACTURING PROCESS FOR ICE CREAM Amul ice cream is made up from milk, milk products, sugar, stabilizers and emulsifiers. Composition •
Milk Fat 13.5% to 14.5%
•
Total Solids 40% to 41%
•
Sugar 15% Approx.
•
Acidity 0.17% to 0.19%
•
Protein 3.9% to 4.1%
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Food Energy Value Calories per 100 ml -196.7 kcal Flavors VANILA , Strawberry, Pineapple, Orange, Rose, Mango, Chocolate, Honey-Dew-Melon, Tutee Fruity, Litchi, Kesar Pista, Kaju Draksh, Butterscotch, Chocó chips, Rajbhog and Cashew Break.
Packaging 50 ml cup, 100 ml cup, 500 ml pack,1 litre pack, 4 litre pack, Chocobar, Ice candies, Cones and Kulfies .
MANUFACTURING PROCESS FOR MILK MILK PROCUREMENT Total milk procurement by our Member Unions during the year 2006-07 averaged 67.25 lakh kilograms (6.7 million kg) per day, representing a growth of 4.5 per cent over 64.38 lakh kilograms (6.4 million kg) per day achieved during 2005-06. The highest procurement as usual was recorded during January 2007 at 84.09 lakh kilograms (8.4 million kg) per day. This increase in milk procurement is very impressive, keeping in mind the massive loss suffered by our farmers due to floods during the monsoon season, specially in Surat district.
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MILK PROCESSING 1 Homogenization: - Milk must then be homogenized. Without homogenization, the milk fat would separate from the milk and rise to the top. Milk fat is what gives milk its rich and creamy taste. In this process Milk is transferred to a piece of equipment called a homogenizer. In this machine the milk fat is forced, under high pressure through tiny holes.
2 . Pasteurization:- Pasteurization is the process that purifies milk and helps it stay fresher, longer. Milk is pasteurized by heating it to 72°C for 16 seconds then quickly cooling it to 4°C. Pasteurization is named after Louis Pasteur, the famous scientist.
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3
.Adding Vitamins; - Before homogenization, vitamin D is added to all milk.
Vitamin D combined with the calcium that naturally exists in milk help gives us strong bones and teeth. Dairies also add Vitamin A to skim, 1% and 2% milk. Vitamin A is good for our eyesight.
4.Packaging Milk: - Milk is now ready to be packaged. Milk is pumped through automatic filling machines direct into bags, cartons and jugs. The machines are carefully sanitized and packages are filled and sealed without human hands. During the entire time that milk is at the dairy, it is kept at 1° - 2°C. This prevents the development of extra bacteria and keeps the milk it’s freshest.
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5.Storing:- Milk is delivered to grocery stores, convenience stores and restaurants in refrigerated trucks that keep milk cooled to 1° - 4°C. The stores take their milk and immediately place it in their refrigerated storage area. Because fresh milk is so important to our diets, dairies, and our health.
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Supply chain management of AMUL
SUPPLIERS
GCMMF’S SUPPLY CHAIN Processing : After the union received the milk, it was tested and if it was found to be of good quality, it was sent for processing. If the milk was found to have high acidity, it was used to make buttermilk. Raw milk was sent through a filter and clarifier and was pasteurized. For pasteurization, milk was treated at high temperatures for a specified.
This helped in destroying the pathogens and in maintaining the quality. After pasteurization, the milk was sent through a separation machine. Here the cream was separated and skimmed milk was obtained. According to the demand, the unions packed the milk after it was pasteurized and sent for distribution. The cream was marketed as Amul Fresh cream .
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Distribution GCMMF coordinated with various unions to get a regular supply of milk and dairy products. The processed milk and dairy products were procured from district dairy unions and distributed through third party distributors. To ensure quality and timely deliveries, GCMMF and the district unions had several mechanisms in place. The VCS constantly monitored the deliveries of the milk collected and ensured that the milk was picked up on time. The unions monitored the supplies of milk and the distribution of finished products.
WARE HOUSING: Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. This practice is consistent with GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This just-in-time inventory strategy improves dealers' return on investment (ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle operation .
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MILK PROCESSING BLOCK
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SUPPLY CHAIN EXPLANATION WITH DIAGRAME DEFINITION OF VALUE CHAIN
As per the above diagram there are the first components is raw material: In our company the raw materials are milk, powder for ice creams manufacturing, different types of flavors for ice creams, packaging material, sugar etc. required by the company for manufacturing. In this step GCMMF play a very important role it procures milk from villages and for this it develops three types of system and that is societies at villge level, district level and state level.
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Second component is suppliers are the farmers and other raw material for manufacturing the ice creams are provided by MAHAN PROTEINS LTD., IDEAL ICE CREAMS and BHARAT ESSENCE. This component is manufacturing process which is describe above. In milk process there are mainly five steps are required and i.e. homogenization, pasteurization, adding vitamins, packaging, storing. In this process there are also requirement of warehouse for storing the product which already made and also for the raw material. The next step is the distribution channel in which GCMMF plays very important role in that. It handle all the marketing for AMUL products. GCMMF's products were marketed through 50 sales offices located across India to 4,000 stockists. These stockists supplied the products to more than 500,000 retail outlets.
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The next step is the customers in this category there are restaurants includes. Also the retail shops and whole sellers are included. The last step is the consumer in which the actual hose hold are included in this category. Our Product AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "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 millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 42.78 billion in 2007-08). 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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Check out this vast and ever-growing range of 'tasteful' Amul delectable! "Please click here to download the latest PRODUCT DETAILER". Bread Spreads Amul Butter
Amul Lite
Utterly Butterly
Low fat, low
Delicious
Cholesterol Bread Spread
Delicious Table Margarine The Delicious way to eat healthy
Milk Drinks Amul Kool
Amul Kool Cafe
Kool Koko
Nutramul Energy
A delight to Chocolate
Drink
Lovers. Delicious
A drink for Kids -
Chocolate taste
provides energy to
75
suit the needs of growing Kids
Amul Kool
Amul Kool
Chocolate Milk
Flavoured Bottled Milk
Amul Kool
Amul Masti Spiced
Flavoured Tetra
Buttermilk
Pack
Amul introduces the Best Thirst Quenching Drink
Amul Kool Thandai
Powder Milk
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Amul Spray
Amul Instant
Infant Milk Food
Full 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
Which is especially useful for diet preparations or for use by people on low calorie and high protein diet.
Amulya Dairy Whitener The Richest, Purest Dairy Whitener
Fresh Milk
77
Amul Fresh Milk
Amul Gold Milk
This is the most hygienic milk available in the
market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience.
Amul Taaza Double
Amul Lite Slim and
Toned Milk
Trim Milk
Amul Fresh Cream
Amul Shakti Toned Milk
Amul Calci+
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Cheese Amul Pasteurised
Amul Cheese
Processed Cheese
Spreads
100% Vegetarian
Tasty Cheese Spreads
Cheese made from
in 3 great flavours.
microbial rennet
Amul Emmental
Amul Pizza
Cheese
Mozzarella Cheese
The Great Swiss
Pizza cheese...makes
Cheese from Amul,
great tasting pizzas!
has a sweet-dry flavour and hazelnut aroma
Gouda Cheese
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For Cooking Amul / Sagar Pure
Cooking Butter
Ghee Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience.
Amul Malai Paneer
Utterly Delicious
Ready to cook paneer
Pizza
to make your favourite recipes!
Mithai Mate
Masti Dahi
Sweetened Condensed Milk –
Free flowing and smooth texture.
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White to creamy color with a pleasant taste.
81
Desserts Amul Ice Creams
Amul Shrikhand----
Premium Ice Cream
A delicious treats,
made in various
anytime.
varieties and flavours with dry fruits and nuts.
Amul Mithaee
Amul Chocolates
Gulab Jamuns
The perfect gift for
Pure Khoya Gulab
someone you love.
Jamums...best served piping hot.
Amul Lassee
Amul Basundi
Health Drink
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Nutramul
Amul Shakti
Malted Milk Food
Health Food
made from malt
Drink
extract has the
Available in Kesar-
highest protein
Almond and
content among all
Chocolate
the brown
flavours.
beverage powders sold in India.
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PROFILE OF PARAG DAIRY Parag Dairy – Delhi was set up in 1974 under the Operation Flood Programme. It is now a wholly owned company of the National Dairy Development Board (NDDB). Parag Dairy markets & sells dairy products under the Parag Dairy brand (like Liquid Milk, Dahi, Ice creams, Cheese and Butter), Dhara range of edible oils and the Safal range of fresh fruits & vegetables, frozen vegetables and fruit juices at a national level through its sales and distribution networks for marketing food items. Parag Dairy sources significant part of its requirement of liquid milk from dairy cooperatives. Similarly, Parag Dairy sources fruits and vegetables from farmers / growers associations. Parag Dairy also contributes to the cause of oilseeds grower cooperatives that manufacture/ pack the Dhara range of edible oils by undertaking to nationally market all Dhara products. It is Parag Dairy’s constant endeavor to (a) Ensure that milk producers and farmers regularly and continually receive market prices by offering quality milk, milk products and other food products to consumers at competitive prices and; (b) Uphold institutional structures that empower milk producers and farmers through processes that are equitable.
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At Parag Dairy, processing of milk is controlled by process automation whereby state-of-the-art microprocessor technology is adopted to integrate and completely automate all functions of the milk processing areas to ensure high product quality/ reliability and safety. Parag Dairy is an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS certified organization. Moreover, its Quality Assurance Laboratory is certified by National Accreditation Board for Testing and Calibration
Laboratory (NABL)-Department of Science and Technology,
Government of India. Parag Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi, Mumbai, Saurashtra and Hyderabad. Parag Dairy Milk has a market share of 66% in the branded sector in Delhi where it sells 2.3 million liters of milk daily and undertakes its marketing operations through around 14,000 retail outlets and 845 exclusive outlets of Parag Dairy. The company’s derives significant competitive advantage from its unique distribution network of bulk vending booths, retail outlets and mobile units. Parag Dairy ice creams launched in the year 1995 have shown continuous growth over the years and today boasts of approximately 62% market share in Delhi and NCR. Parag Dairy also manufactures and markets a wide range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT Milk, Lassi & Flavored Milk and most of these products are available across the country. The company markets an array of fresh and frozen fruit and vegetable products under the brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops and more than 20,000 retail outlets in various parts of the country. Fresh produce from the producers is handled at the Company’s modern distribution facility in Delhi with an 85
annual capacity of 200,000 MT. An IQF facility with capacity of around 75 MT per day is also operational in Delhi. A state-of-the-art fruit processing plant of fruit handling capacity of 120 MT per day, a 100 percent EOU, setup in 1996 at Mumbai supplies quality products in the international market.
86
With increasing demand another state-of-the-art fruit processing plant has been set up at Bangalore with fruit handling capacity of around 250 MT per day. Parag Dairy has also been marketing the Dhara range of edible oils for the last few years. Today it is a leading brand of edible oils and is available across the country in over 2, 00,000 outlets. The brand is currently available in the following variants: Refined Vegetable Oil, Refined Soybean Oil, Refined Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil and Filtered Groundnut Oil. Parag Dairy has also launched extra virgin Olive Oil under the Daroliva brand. Parag Dairy has over the last 3 decades, harnessed the power of farmer cooperatives to deliver a range of delicious products and bring a smile on your face. In times to come, Parag Dairy shall strive to remain one of India’s finest food companies.
List of Products Marketed:
Bread spreads: •
Parag Butter
Cheese Range: •
Parag Processed Cheese
•
Parag Pizza Cheese
•
Parag Paneer
UHT Milk Range: •
Parag Milk 87
•
Parag Fresh Cream
Pure Ghee: •
Parag Pure Ghee
Infant Milk Range: •
Parag spray Milk Food
Milk Powders: •
Paragya Dairy Whitener
•
Sagar Skimmed Milk Powder
Fresh Milk: •
Parag Taaza Toned Milk
•
Parag Cow Milk
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MARKET SHARE OF AMUL SPRAY IN % AGE (Agra)
TERRITORIES Vijay Nagar Sanjay Place Khandari Sikandra Rajpur Chungi Sadar Bazar Shashtripuram Bodla Jeevni Mandi Rawatpara Belanganj Tajganj Lohamandi Rajamandi TOTAL
AMUL SPRAY
PARAG DAIRY LECTOGIN 3.61 10.31 4.00 5.12 4.50 1.40 2.81 1.00 8.61 2.40 0.40 13.52 1.20 3.80 62.68
1.40 2.80 0.20 2.40 1.40 1.00 3.70 4.00 3.00 1.20 0.10 15.52 0.10 0.50 37.32
SALES OF BUTTER BY TERRITORY (KG) (Agra)
TERRITORIES Vijay Nagar Sanjay Place Khandari
AMUL BUTTER
PARAG DAIRY
159 92 734
BUTTER 0 30 72
89
Sikandra Rajpur Chungi Sadar Bazar Shashtripuram Bodla Jeevni Mandi Rawatpara Belanganj Tajganj Lohamandi TOTAL
355 190.5 678 500 470 350 40.5 14 259 8 3850
0 0 0 42 2 100 0 60 0 0 306
MARKET SHARE OF AMUL BUTTER IN %AGE
TERRITORIES Vijay Nagar Sanjay Place Khandari Sikandra Rajpur Chungi Sadar Bazar Shashtripuram Bodla Jeevni Mandi Rawatpara Belanganj Tajganj Lohamandi TOTAL
AMUL BUTTER
PARAG
3.83 2.21 17.76 8.49 4.56 16.32 12.03 11.31 8.36 0.96 0.33 6.23 0.19 92.58
BUTTER 0 .72 1.80 0 0 0 1.01 0.05 2.41 0 1.43 0 0 7.42
DAIRY
90
SALES OF DAIRY WHITE BY TERRITORY (KG)
TERRITORIES Vijay Nagar Sanjay Place Khandari Sikandra Rajpur Chungi Sadar Bazar Shashtripuram Bodla Jeevni Mandi Rawatpara Belanganj Tajganj Lohamandi TOTAL
AMULYA
Parag Dairy
OTHERS
27 6 51 46 0 24 5 37 28 43 310 2 10 589
0 5 2 8 0 2 3 3 0 0 34 0 0 57
9 6 25 28 16 17 4 4 0 0 0 0 0 109
MARKET SHARE OF DAIRY WHITE IN % AGE (Agra)
TERRITORIES Vijay Nagar Sanjay Place Khandari
AMULYA
Parag Dairy
OTHERS
2.02 0.45 3.72
0 0.37 0.15
0.76 0.45 1.96
91
Sikandra Rajpur Chungi Sadar Bazar Shashtripuram Bodla Jeevni Mandi Rawatpara Belanganj Tajganj Lohamandi TOTAL
3.34 0 1.78 0.37 2.83 2.18 3.22 23.20 0.15 0.75 44.01
0.58 0 0.37 0.22 0.22 0 0 2.54 0 0 4.45
2.18 1.19 1.27 0.38 0.38 0 0 0 0 0 8.57
Consumer Perception towards Amul & Parag Dairy Products
Export Potential India has the potential to become one of the leading players in milk and milk product exports. Location advantage: India is located amidst major milk deficit countries in Asia and Africa. Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located close to India.
Low Cost of Production: Milk production is scale insensitive and labour intensive. Due to low labour cost, cost of production of milk is significantly lower in India.
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Concerns in export competitiveness are Quality: Significant investment has to be made in milk procurement, equipments, chilling and refrigeration facilities. Also, training has to be imparted to improve the quality to bring it up to international standards.
Productivity: To have an exportable surplus in the long-term and also to maintain cost competitiveness, it is imperative to improve productivity of Indian cattle. There is a vast market for the export of traditional milk products such as ghee, paneer, shrikhand, rasgolas and other ethnic sweets to the large number of Indians scattered all over the world
93
Chapter 3 Research methodology
94
OBJECTIVE OF THE STUDY Amul & Parag Dairy is the market leader of dairy based food products in Agra City. Amul is the major competitors in the market against Parag Dairy. It is important to get an idea regarding Amul’s & Parag Dairy position in Agra City. It would not help Amul to capitalize on existing potential but also to formulate strategies and to fill the look holes and gaps to fight the competitive situation The Objective also contains:
To determine the market share of Amul & Parag dairy based product.
To determine the consumer preferences of Amul & Parag dairy product with the help of some parameters -quality, taste, price, packing style.
To compare the dairy product of Amul and Parag dairy on the basis of above parameters
95
SIGNIFICANCE OF THE TOPIC Create the awareness in the market. Building confidence in retailers as well as in the customer. To Understand the terminologies used in market by retailers. Develop the usefulness in enhancing the usability of the product. To know different selling skills at various situation of market. To learn different strategies which are used by retailers in market to convince the customers.
96
RESEARCH METHODOLOGY Methodology for a study like this is the most important part .The method of study operate by me is totally is to increase $ to gather the more information regarding this project. The major emphasis in such studies is on the discovery of the ideas fruitful relevant information. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspect of a problem under study. I collected the information regarding this project through – I.
PRIMARY DATA
II.
SECONDARY DATA Primary data is collected by the customers and Parag retailers.
Secondary data is collected by retailer & personal interview. Since our research is descriptive type, so research design is also descriptive.
97
Sample design: Sampling is a process of obtaining information about an entire population by examining
only a part of it.
As depicted below, I have taken 14 retailers and 30 customers as my sample size
Sample size: RETAILER : CUSTOMER:
35 110
Analytical tools: This study is based on collecting data by using well-connected questionnaire for consumer from various demographic segments and also data is collected using secondary sources. After collecting data it is arranged in the form of tables from analysis and interpretation. Graphs and percentage analysis are the main tools used for the purpose of interpretation.
98
Areas where I made survey •
Vijay Nagar
•
Sanjay Place
•
Khandari
•
Sikandra
•
Rajpur Chungi
•
Sadar Bazar
•
Shastripuram
•
Bodla
•
Jeevni Mandi
•
Rawat Para
•
Belan Ganj
•
Taj Ganj
•
Loha Mandi
99
LIMITATIONS OF THE STUDY This survey although carried out with fullest possible efforts and devotion, the limitation of the time, resources available and limited area chose may lead to limited representation of the universe. The major limitations from which the study suffers are as follows. Time Constraint:Time factor has been a very big limitation in the research/survey like this. The retailers have limited time so they sometimes refuse to answer the questionnaire, also me as a surveyor has less time to conduct the survey. So the size of the sample was restricted to Agra. Biasness in Information:It was felt that retailers did not come up with true responses, in several cases the retailers answered the questions with the help of other members and it was mostly in case of less educated persons. Financial Constraint:The financial aspect, which includes the traveling cost, cost of administrating questionnaire and collection of data through other resources was also costly. Constraint regarding the use of technique:-
100
The deeper statistical techniques such as analysis using variance, multiple regressions etc., could not be adopted due to the constraint of time and efforts. So, simple statistical techniques were used to analyze the data.
Chapter 4 Data Interpretation & Graphical analysis 101
ANALYSIS AND INTERPRETATION OF DATA
I.
Which company's dairy product you use?
Parag, 15% Other, 30%
Amul, 55%
Interpretation: 55 percent consumers use Amul & 30 per cent used others and last 15 percent consumer used Parag dairy products.
102
II.
Which of the product mostly you go for?
50%
50%
48%
47%
45% 40%
38%
35%
40% 36%
32%
30%
28% 25%
25%
Amul 22%
20%
20%
Parag Others
15%
12%
10% 5% 0% Ghee
Milk
Butter
Cheese
Interpretation: Amul Ghee used consumer 32%, Parag Ghee used 20% and others 48%. Milk used by consumer 28% Amul, 25% Parag and others 47%. Butter used by consumer 38% Amul, 12% Parag and 40% others.
103
III.
Are you satisfied with your product?
No, 20%
Yes, 80%
Interpretation: 80% Consumer satisfied with their products and 20 % consumer not satisfied their products.
104
IV.
Why are you inclined to your product? 80%
80%
60%
70%
68%
70% 60%
50% 40%
40%
Amul 32%
30%
Parag
30% 20%
20% 10% 0% Quality
Brand
Price
Taste
Interpretation: Amul Quality inclined to products by consumer 60%, Parag satisfied 40%. Brand preferred by consumer e.g. 68% Amul and 32% Parag. Price satisfaction with consumer 70% Amul and 30% Parag.
105
V.
Do you like any change in product?
90% 80%
85% 80% 75% 75% 70%
70%
60%
60%
Amul Yes
50%
45% 40%
40%
40%
30%
30% 20%
60%
55% Amul No Parag Yes Parag No 25%
25%
20% 15%
10% 0% Taste
Price
Packing Style
Quality
Interpretation: All consumers satisfied with their product and some consumer change product Taste by consumer Amul 80% and no20% and Parag with satisfied 45% and not satisfied 45%. Price by consumer Amul 30% and no70% and Parag with satisfied 40% and not satisfied 60%. Packing by consumer Amul 25% and no75% and Parag with satisfied 75% and not satisfied 25%. Quality wise Amul 15% and no 85% and Parag with satisfied 60% and not satisfied 40%.
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RETAILER ANALYSIS I.
In dairy products, which company product demand is
higher?
Other, 30%
Parag, 20%
Amul, 50%
Interpretation: 50per cent consumers demand for Amul dairy products & 30 per cent consumer preferred others branded products and last 20 percent consumer preferred Parag dairy products.
107
II.
Reason……………………………………………
20% Packing style
80% 30%
Brand
70% Parag 32%
Amul
Taste
68% 40%
Price
0%
60% 10%
20%
30%
40%
50%
60%
70%
80%
Interpretation: Amul dairy products Packing Style wise by consumer 80%, Parag preferred 20%. Brand preferred by consumer e.g. 70% Amul and 30% Parag. Taste preferred by consumer 68% Amul and 32% Parag. Price wise by consumer 60% Amul and 40% Parag.
108
III.
Which product of
Amul is preferred by customers?
100% 90% 80%
48%
47%
50%
40%
70% 60% 50%
Others 20%
25%
32%
28%
40%
12%
22%
Parag Amul
30% 20%
38%
36%
Butter
Cheese
10% 0% Ghee
Milk
Interpretation: All consumers Preferred with their product and some consumer change product Taste by consumer Amul 80% and no20% and Parag with Preferred 45% and not Preferred 45%. Price by consumer Amul 30% and no70% and Parag with Preferred 40% and not Preferred 60%. Packing by consumer Amul 25% and no75% and Parag with Preferred 75% and not Preferred 25%. Quality wise Amul 15% and no 85% and Parag with Preferred 60% and not Preferred 40%. 109
Chapter 5 Findings, suggestions & conclusion
110
FINDINGS
1. "The company caters to the Indian palate, which is its primary driver of success". In light of this statement, critically examine the marketing strategies adopted by Amul & Parag Dairy to capture a sizeable market share of the organized Dairy based food Product in India.
2. In the modern competitive scenario, promotion is a key element in the marketing mix of a company. Critically analyze the promotion strategies adopted by Amul India Pvt. Ltd. What other efforts must the company take to effectively promote its products?
3. Dairy based Products contribute a major share of the revenues of Amul. Given the competitive scenario in the Dairy Products in India, where competitors such as Parag Dairy are introducing several innovative products, what measures must Amul take to remain competitive? Explain in detail.
111
RECOMMENDATIONS 1.
Company should have feed back from market and consumer about the Dairy based Products.
2.
The more Flavors of Amul & Parag Dairy Products should become in the Market.
3.
The company provided some small schemes for retailer also.
4.
The company gives some gifts for customer also.
5.
The company should associate itself with some games or tournaments like football, cricket and so on.
6.
Company should provide sponsored seminar market intelligenceCompany should maintain the healthy relationship with market distribution channel i.e. whole seller, distributor, retailers which will boost the brand image.
7.
Company should check the market real position help the trainees and other survey organizations.
8.
Company should launch its website and use new advertising channels; i.e. ♦ Trailer in cinema halls ♦ Hoardings
112
♦ Spencer any education scholarship or games.
CONCLUSION I have studied and analyzed the Dairy based food Product Market of Amul & Parag Dairy Products at Agra on different aspects of the markets, outlets, distribution & consumers. The survey was conducted in various areas of Agra city with great enthusiasm. This project report Concludes that Amul & Parag Dairy are easily available in various parts of Agra. The Parag distribution channel of the Amul is much strong the most important thing, which I feel to improve is “the availability to retailers & consumers”. The retailers & consumers both promotes either Amul or Parag Dairy of it’s brands for could be with regard to order processing, warehousing, inventory management & transportation; besides that shop covering, exit from the market by the salesmen glow shine board, schemes, incentives, prizes, gifts, discount, returning of defective goods, proper supply should be improved. My job was to make marketing managers aware of all the problems so that a proper course of action is required to be undertaken.
113
ANNEXURE
114
QUESTIONNAIRE
CUSTOMER:
ADDRESS:
NAME:
INCOME:
I.
Which company's dairy product you use
a) Parag
b) Amul
c) Others
II.
Which of the product mostly you go for?
a) Ghee
b) milk
c) Butter
d) cheese
115
III.
Are you satisfied with your product?
a) Yes
b) No
REASON…
IV.
Why are you inclined to your product?
a) Quality
b)
c) Price
d) taste
V.
Do you like any change in product
a) Yes
VI.
b) no
IN WHICH PARAMETER: ……………………………
a) Taste
b) price
c) Packing style
d) quality
VII.
brand
RETAILER:
ADDRESS:
NAME:
INCOME:
In dairy products, which company product demand is higher?
a) Amul
b) Parag dairy
c) others
VIII. Reason…………………………………………… 116
a) Price
b) taste
c) Brand
d) packing style
IX. Which product of Amul is preferred by customers? a) Ghee c) Cheese
b) milk d) butter
e) Any other
REASON… a) Price c) Quality
b) taste d) packing style
X. Which product of Parag dairy is preferred least by customers? a) Ghee c) Cheese
b) milk d) butter
e) Any other
XI. Which product of amul is preferred least by customers? a) Ghee c) Cheese
b) milk d) butter
e) Any other
XII. Which of Parag dairy is preferred least by customer?
117
a) Ghee
b) milk
c) Cheese
d) butter
e) Any other
XIII. Rank the preferences of consumers for Amul $ Parag dairy.
Amul
Parag dairy
Others
Ghee Cheese Dahi Butter Milk Others
118
COMPARATIVE STUDY OF AMUL AND PARAG DAIRY PRODUCTS
Consumer Preferences
Parag Dairy Ghee
Milk
Amul
Butter Cheese Ghee
Milk
Butter
Che ese
1. Price
High
High
High
High
Low
Low
Low
2. Quality
High
High
High
High
Good
Good Good
Good
3. Taste 4. Packing Style
Better Better Better Better Better Better
Better Better
Good Best
Good Good Best Best
Good Best
BIBLIOGRAPHY
Market Research
- Luck and Rubin
Research Methodology
- C.R. Kothari
119
Low
Product Management
- Ramanuj Majumdar
Marketing Management
- R.L. Vashney & S.L. Gupta
www.google.com
www.amul.com
www.Paragdairy.com
120
