Amul Project
Amul Project
Prepared By
Darshan Makwana
Student of
Master of BusinessAdministration
Batch (2007 - 2009)
Roll No. -18
Submitted To
Saurashtra University
Rajkot
Guided By
Prof. Vijay Vyas
Institute
R.K. College of
Engineering and Technology
RAJKOT
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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
PREFACE
AMUL is the pride not only of Gujarat but also of entire country. I have
great pleasure in preparing this project of such organization. A person aspiring to
enter in management profession must have practical knowledge of the subject.
The objective of industrial training is to develop practical knowledge in student as a
supplement to the theoretical study of management in general as well as industrial. It
provides foundation to students intending to pursue a career in this field.
I have tried my best to represent all relevant data and information relating to
my project work. I hope this report will serve the purpose of the readers
Darshan Makwana
M.B.A
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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
ACKNOWLEGEMENT
Darshan Makwana
M.B.A
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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
CONTENTS
I CONCLUSION 66-66
J REFERENCES 67-67
I.
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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
AMUL
INDIAN
DAIRY
INDUSYTRY
PROFILE
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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
INDIAN DAIRY
INDUSTRY– A PROFILE
India’s modern dairy sector has expanded rapidly. India is recognized as a biggest
and fastest growing market in the world for milk and milk products. India's dairy
market is multi-layered. It's shaped like a pyramid with the base made up of a vast
market for Chocolate. The bulk of the demand for Chocolate is among the Rural
areas whose requirement is large.
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; so all the countries are
looking at Indian dairy industry markets for exports. As per GATT agreement the
export subsidy is reduced. Because of this India is expecting major changes in
dairy industry of North America, Europe and Australia. It may also get some
advantage in this situation. After reduction in subsidies given by other countries
India would be able to compete with their products efficiently on price in
international markets. At present India has a negligible export to international
markets.
Both public and private sector have contributed to the dairy industry growth in
India. Government dairy distributes 90% of its milk in sachets or in containers
while remaining 10% is marketed as butter, ghee etc. On contrary, private sector
only markets 20% of milk and remaining 80% of milk is made into preparations
suitable for exports. Amul have Chocolate as their main product.
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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
EXECUTIVE SUMMARY
1. Student Name : Kiran .Ishwarlal. Jaiswal
5. Objective
A) To study the existing market of Amul Chocolate in various areas Like
Patan , Palanpur, Deesa andMahesana .
VII) Methodology :
The area of work was in important rural and town areas Patan , Palanpur , Deesa and
Mahesana . We had to depend mainly on primary data so as to have to a first hand
knowledge of the prevailing market position of liquid milk of various brands. Thus,
our actual study was conducted in 3 stages. First we talked informally on various
aspects with our guiding officers, certain consumers & retailer. Next we prepared our
questionnaires based on the priors discussions having separate questionnaires for
established & unexplored markets. Both consumers & retailers were given separate
questionnaires.
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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
IX) Suggestions :
1) People use milk for various purposes like making Curd, Lassi, Ice-cream
besides Tea and for drinking purpose. So a positive perception can be created
to make them think that amul milk is best suited for those purposes.
2) Projector films may be shown to the villagers emphasizing on the quality and
the hygenity of amul chocolate. This would help in convincing the people &
creating a favourable attitude towards amul chocolate in pouches.
3) Arrangement should be made to ensure regular supply of amul chocolate to
the consumers in new places once the milk in introduced. If possible
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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
X) Limitation :
1) The time for the project was short & I had to be completed on time.
2) Language barrier was also a problem in one or two areas.
3) Retailers were not ready to furnish the detailed information. Some
consumers in the villages were hesitant in giving response which could
have lead to some sort of biasedness.
1 Project Activities :
Chocolate market is one of the minor activity of Amul milk unions. It is an active
proposition since amul sells chocolates but could not make the product a moving
product like milk due to its less demand. The topic has been selected with a view to
study the chocolate market scenario in various parts of district(Mahesana, Patan,
Palanpur, and Deesa) and identify ways and means to increase the existing sales as
well as explore the possibilities for introducing new varieties in chocolates and reduce
the price to some extent in all areas. For the purpose of the study. The market was
segregated into established and unexplored markets. Following places have been
studied.
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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
1. Mahesana
2. Patan
3. Palanpur
4. Deesa
Each and every town was studied individually and properly analysed.
4 Objectives : -
1. To study the chocolate market scenario in various area Patan , Palanpur, Deesa
andMahesana . The first and foremost objective of the project was perfect.
Under this, the consumption pattern, market share of various brands and
the factors influencing the buying decisions of the consumers were
studied.
2. To study the position of amul chocolate in established market. The nearest
competitor and the various possibilities has been explored to minimize
their threats.
3. To estimate the market potential for amul chocolate in unexplored market was
one of the major objectives. Here the conditions were also studied under
which the consumer as well as the retailer would be willing to buy amul
chocolate.
4. To identify the problem areas for all the places separately. Here the
shortcomings of amul were studied which could be removed after careful
understanding & detailed analysis.
5. To develop strategies and come out with suggestions for increasing the sales.
5 Methodology : -
The research methodology adopted is of descriptive type. The major
purpose of this research was the description of the state of affairs as it exists at
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present. Even though there was no control over the variables. The cause were
tried to be discovered. The method of research utilized here was survey
method. The facts or information gathered were analyzed to make a critical
evaluation of the information.
5.1 Research Approach : -
One had to depend mainly on primary data as first had knowledge was
required about market position of various brands in the chocolate market. So
our actual study was conducted in 3 stages : -
First we discussed with our guiding officers on the various parameters of the
project. We also talked informally with some consumers and retailers to have
some preliminary idea.
Next questionnaire was prepared based on priori discussion. Separate
questionnaire was prepared for established and unexplored markets.
Lastly the final questionnaire was prepared with various modification to the
previous questionnaire.
Separate questionnaires were prepared for the consumers and retailers
6 Data Analysis : -
The data were analyzed separately for each town. The findings resulting of the
analysis varied from town to town and the recommendations stated accordingly
arrived at after thorough analysis and recommendation stated accordingly.
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COMPANY
PROFILE
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The story of AMUL inspired 'Operation Flood' and heralded the 'White Revolution' in
India. It began with two village cooperatives and 250 liters of milk per day,
nothing but a trickle compared to the flood it has become today. Today Amul collects
processes and distributes over a million liters of milk and milk products per day,
during the peak, on behalf of more than a thousand village cooperatives owned by
half a million farmer members. Amul has become a symbol of the aspirations of
millions of farmers; creating a pattern of liberation and self-reliance for every farmer
to follow.
The ‘AMUL revolution’ started as awareness among the farmers grew and matured
into a protest movement. Over four decades ago, the life of a farmer in Kaira District
was very much like that of his counterpart anywhere else in India. His income was
derived almost entirely from seasonal crops. The income from milch buffaloes was
undependable. Private traders and middlemen controlled the marketing and
distribution system for the milk. As milk is perishable, farmers were compelled to sell
it for whatever they were offered. Often, they had to sell cream and ghee at
throwaway prices. In this situation, the one who gained was the private trader.
Gradually, the realization dawned on the farmers that the exploitation by the trader
could be checked only if marketed their milk themselves.
In order to do that they needed to form some sort of an organization. This realization
is what led to the establishment of the Kaira District Cooperative Milk Producers'
Union Limited (popularly known as Amul) which was formally registered on
December 14, 1946.
Currently AMUL has 2.28 million producer members with milk collection average of
5.08 million liters/day.
MAIN BUSINESS
AMUL is mainly into the business of marketing, transporting and distributing the
milk and milk products manufactured by its owners. Besides creating urban
employment in dairy plants, marketing, transporting and distribution, it has helped to
provide farmers with a sustainable rural employment program. AMUL has always
tried to be a step ahead of the market. It has always been a model to which other
cooperatives have looked up as an example and inspiration as well as one from
which many have benefited. AMUL was one of the first major organizations
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in India to have a website. This site has been used both to develop an
intranet of AMUL distributors as well as a cyber-store for consumers , one
of the first examples of e-commerce activity in India.
MISSION STATEMENT
VALUES
AMUL cherish following values:
• Customer orientation
• Commitment to producers
• Integrity
• Co-operation
• Excellence
• Leadership
• Quality
• Innovation
• Growth orientation
• Belongingness
• Pride in the organization
• Employee satisfaction
SALES TURNOVER
Gujarat Cooperative Milk Marketing Federation: An Overview
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The annual sales turnover of AMUL in last 9 years is as follows, which itself is the
proof of the huge turnover and the success and profitability of the company.
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PRODUCTION
DEPARTMENT
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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
ABOUT PRODUCTS
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. 37.74 billion in 2005-06). 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' organisation. And of a proven model for dairy development.
PRODUCTS
A. Bread Spred
B. Powder Milk
Amul spray infant milk food: Still, mother milk is best for baby.
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C. fresh milk
Amul fresh milk: This is the most hygienic milk available in the market.
Pasteurized in state-of-the-art processing plants and pouch-packed for convenience
Amul masti spiced buttermilk: Amul introduces the Best Thirst Quenching
Drink
D. Cheese
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Amul Emmental Cheese: The Great Swiss Cheese from Amul has a sweet-
dry flavour and hazelnut aroma.
Guuda Cheese:
E. For cooking
Amul/Sagar Pure Ghee: Made from fresh cream. Has typical rich aroma and
granular texture. An ethnic product made by diaries with decades of experience.
Cooking Butter:
Amul Malai Paneer: Ready to cook paneer to make your favourite recipes
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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
Mithai Mate: Sweetened Condensed Milk - Free flowing and smooth texture.
White to creamy color with a pleasant taste.
Masti Dahi:
F. Desserts
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Amul Lassee:
Amul Basundi:
G. Health Drink:
Nutramul: Malted Milk Food made from malt extract has the highest protein
content among all the brown beverage powders sold in India.
Sample
Chiller
Milk clarifier
Pasteurize
Pasteurized standardized
a. F-60
b. TFD
c. AMUL II
d. ROAD TANKER
e. RAIL TANKER
Packaging machine
Pouches
For successful operation of these activities, a control room has been provided.
All the operations in the Dairy are Programmable Logic Controller controlled. A set
of logical programmes through a programmer is prepared on the PC and stored in the
memory of the CPU of the PLC. This is possible due to the microprocessor
technology. Whenever the operator performs the operation these programmes are
recalled and executes accordingly the commands and signals for activating or
deactivating the solenoid valves and start and stop of the pumps are affected.
There is one PLC in the control room. All the parts of the PLC are run on 24
V DC supply which is converted from 220 v AC supply by the transformer in each
unit of PLC. Incase of power breakdown the PLC continues to get the power supply
from the UPS system.
The control room has also information system for updation of production data
of milk, cream, raw milk intake, centerwise milk reception and dispatch record,
inventories, CIP programming and its timing, trend charts, consumption of steam,
electricity, water and compressed air, etc.
Raw milk is received only in tankers at the 3 bays of reception dock of Amul-
3 process section. Each reception line has:
1] Centrifugal pumps of 30,000 LPH
2] Deaerator to remove air from the milk
3] Autosampler to take the uniform sample
4] Pasilac Continous Mass Meter to measure the milk unloaded in
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List of equipments :
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CHOCOLATE
The plant is involved in manufacturing Milk Chocolate, Fruit & nut, Fundoo,
Bindaaz, Almond Bar including Premium and Classic Cooking Chocolate of 500g
slabs. Chocolate production is 4.5 MT per day.
Beans passed via a Cleaner (Make: Swastik) for removal of dust and dirt
Beans passed through Roaster at 160°C (Make: Carl & Montanari, Italy)
Pressure: 5.1 kg / cm²
Beans passed via Winnower, husks and nibs get separated & nibs grinded
Cocoa Press
Make: Carl & Montanari, Pressure: 240 kg / cm², total nos. 2
Min. pressure: 6 kg / cm², Pressing: 700 / 1400 rpm, temp. 90°C
There are 3 rollers via which well water circulated at 35 - 40°C & 2-3 kg / cm²
Tempering Machine
Temp. 40-45°C, cooling to 24-30°C
Vibrator
Packing Machine
Almondbar
Bindaaz Chocolate
Chocozoo Birthday
Chocomini Tub
Chocozoo Retub
Chocozoo Corporate
Fundoo Milk
Fundoo Chocolate
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MARKETING
STRATEGIES
HEAD OFFICE
↓
ZONAL OFFICE
↓
DEPOT OFFICE
↓
CARRYING & FORWARDING AGENTS (C & F)
↓
WHOLESALE DEALERS
↓
RETAILERS
↓
CONSUMERS
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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
MARKET RESEARCH
AMUL conducts basically two types of market research. One is for products and
another for the advertising conducted by the company. These research results serve as
an input in future decision making. The company basically collects feedback from the
customers, about the effectiveness of its advertising campaign and liking of the
product especially in case of new products launched. It tries to find out by conducting
a survey in a target market whether or not the product is liked by the consumers and
ask for their suggestions for improvement. However AMUL is not much into
conducting research before the launch of the product. Most of its research is done
only once when the product is already launched in the market. It doesn’t have any
separate department for this purpose but its sales agents themselves do the work of
research for the company. Yet the results are almost comparable to those conducted
by professionals.
• Market analysis
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• Appointing distributors
A product passes through distinct stages during its life in market, each posing
different challenges, opportunities and problems .Profits rise and fall at different
stages of the product life cycle. There are four different stages of product life cycle,
namely
1. INTRODUCTION STAGE
2. GROWTH STAGE
3. MATURITY STAGE
4. DECLINE STAGE
Different products of AMUL are in different stages in the product life cycle.
Products like milk, butter, chocolate and cheese are in the maturity stage, while
ice-creams , chocolates and shrikhand are still in the growth stage. On the other
hand, products like milk powders, infant food, frozen food items and mix are in
introduction stage.
The company adopts aggressive selling techniques for those products which
are in the introductory stage, while very less promotional programmes are carried
out for those products which are in the growth or maturity stage.
PRODUCT RANGE
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BREADSPREADS
Amul Butter
Amul Lite Low Fat Breadspread
Amul Cooking Butter
CHEESE RANGE
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese
Amul Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese) Frozen and Tinned
Utterly Delicious Pizza
PURE GHEE
Amul Pure Ghee
Sagar Pure Ghee
Amul Cow Ghee
MILK POWDERS
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FRESH MILK
Amul Taaza Toned Milk 3% fat
Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardised Milk 3% fat
Amul Smart Double Toned Milk 1.5% fat
CURD PRODUCTS
Amul Masti Dahi (fresh curd)
Amul Butter Milk
Amul Lassi
AMUL ICECREAMS
• Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti
Frutti)
• Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar
Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi)
• Utsav Range (Anjir, Roasted Almond)
• Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate)
• Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry,
Black Currant)
• Sundae Range (Mango, Black Currant, Chocolate, Strawberry)
• Millennium Icecream (Cheese with Almonds, Dates with Honey)
• Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi,
Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)
• Cool Candies (Orange, Mango)
• Cassatta
• Tricone Cones (Butterscotch, Chocolate)
• Megabite Almond Cone
• Frostik - 3 layer chocolate Bar
• Fundoo Range - exclusively for kids
• SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple)
BROWN BEVERAGE
• Nutramul Malted Milk Food
MILK DRINK
• Amul Shakti Flavoured Milk
PRODUCT LINE
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AMUL has basically 4 product lines which are milk and milk products, ice-cream,
chocolate, wet product line and dry product line. The company is increasing the
length of its product line by filling its line i.e. by adding more products within the
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PRODUCT MIX
A product mix consists of all the product lines and items that a particular seller
offers for sale. A company’s product mix has four important dimensions : width,
length ,depth and consistency.
Product mix width refers to how many different product lines the company carries.
AMUL has 4 different product lines namely milk and milk products, chocolate and
ice-cream, wet products and dry products.
Product mix length refers to the total number of items in the mix . In the milk
and milk products line there are 14 different products, while in ice-cream and
chocolate range there are 21 products and in wet and dry products line there are 20
and 10 different products respectively.
Product line depth refers to how many variants are offered of each product in
the line .
Product line consistency refers to how closely related the various product lines
are in the end use, production requirements, distribution channels or some other
ways . Although the products vary in many ways there is still product line
consistency in AMUL. All the products of AMUL are marketed through same
channels of distribution.
MARKET SEGMENTATION
Market Segmentation is the act of sub dividing a market into distinct sets of customers
who merit attention. Targeting these customers for marketing by evaluating, selecting,
and concentrating becomes a corollary to segmentation. Market segmentation assumes
importance in the context of intense competition market is bombarded with. A market
consists of buyers, and buyers differ in one or more ways. They may differ in their
wants, resources, locations, products requirements. These variables have to be
considered in the process of segmentation.
There are different levels of market segmentation. They are mass marketing, segment
marketing, niche marketing and micro marketing. Markets can be segmented on the
geographical basis, demographical basis, psychological basis, behavioral basis and
loyalty status.
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This segmentation is done on the basis of the lifestyle of people in different regions
and their tastes and consumption patterns which are distinct according to their
geographical situation. AMUL has segmented India geographically into 5 zones.
2. DEMOGRAPHICAL BASIS:
They have segmented its market on the basis of the socio-economic status of the
customers. i.e. on the basis of their purchasing power and income level as follows:
GROUP’A’:
Consumers falling in this group are from higher social and economic class.
GROUP’B’:
Consumers falling in this group are from middle socio-economic class.
GROUP’C’:
Consumers falling in this group are from the lower middle class.
MARKET TARGETING
After segmenting the market, company evaluate the various segments and decides
how many and which ones to target.
Generally the market is targeted in three ways:-
UNDIFFERENTIATED MARKETING
DIFFERENTIATED MARKETING
CONCENTRATED MARKETING
AMUL uses undifferentiated marketing strategy for targeting its customers as far as
its milk and milk product line is concerned. While the company implements
differentiated marketing strategy for targeting its customers for the other product lines
that are ice creams and chocolates, wet products and dry products. Differentiated
marketing means market coverage strategy in which a firm decides to target several
market segments and designs separate offers for each. AMUL targets its customers
according to the segments like geographic and demographic.
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PACKAGING
Packing includes the activities of designing and producing the container for the
product. Packaging has become the potent marketing tool. Well designed packages
can create convenience and promotional value. Various factors contribute to
packaging growing use as a marketing tool:
• SELF SERVICE
• CONSUMER AFFLUENCE
• INNOVATION OPPORTUNITY
Packaging of the products of AMUL varies according to the nature of the
product. As most of the products are perishable in nature special care is taken
in packing them. MILK AND MILK PRODUCTS are packed in plastic bags or
containers, while ICE-CREAMS AND CHOCLATES are packed in cardboard
packing. The company maintains the standards prescribed by BIS, with regards
to packing. These products are then packed in cartoons, for greater safety
measures and for transporting them to the market.
LABELING
Labeling printed information that appears on or with the package, is also a part of
packaging. Labels may range from simples tags attached to products to complex
graphics that are part of the package. Label identifies describes and promotes the
product through attractive graphics. The label might carry only the brand name or
great deal of information or pictures. Even if the seller prefers a simple label the law
may require additional information.
The labels of the products of AMUL are attractively designed. It contains all the
information as per statutory requirements. Information like name of product, brand
name, logo, date of packing & manufacturing, expiry date, price, code number,
ingredients, storage and usage instructions, weight, manufacturer’s and marketer’s
name, logo showing “ PURE VEG ” etc appears on the label of the products.
BRANDING
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customers view a brand as an important part of the product and branding adds value to
a product.
Brand names help customers identify products that might benefit them and also tells
the buyer something about the product quality. To the sellers brand name and
trademark provides legal protection for unique product features that otherwise might
be copied by the competitors and it also helps them to segment markets. A brand
name is selected keeping in view the product and its benefits, the target market and
proposed marketing strategies.
Decisions about branding are taken at the Head Office at Anand. 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 languages of India. AMUL manufactures and markets its products
under two brand names AMUL and SAGAR Information Technology (IT) has
played a significant role in developing the Amul brand. The installation of 3000
Automatic Milk Collection System Units (AMCUS) at Village Societies to capture
member information, milk fat content, the volume collected and amount payable to
each member has proved invaluable in ensuring fairness and transparency throughout
the whole Amul organization.
UMBRELLA BRAND
The network follows an umbrella branding strategy. Amul is the common brand for
most product categories produced by various unions: liquid milk, milk powders,
butter, ghee, cheese, cocoa products, sweets, ice-cream and condensed milk.
Amul's sub-brands include variants such as Amulspray, Amulspree, Amulya and
Nutramul. The edible oil products are grouped around Dhara and Lokdhara, mineral
water is sold under the Jal Dhara brand while fruit drinks bear the Safal name.
By insisting on an umbrella brand, GCMMF not only skillfully avoided inter-union
conflicts but also created an opportunity for the union members to cooperate in
developing products.
BRAND EQUITY
Brand equity refers to the value of a brand, based on the extent to which it has brand
loyalty, brand name awareness, perceived quality, strong brand associations, and the
other assets such as patents, trademarks and channel relationship.
It is evaluated on the basis of brand assets which are:
2. BRAND LOYALTY: Brand loyalty means the ability to retain the existing
customers. AMUL is blessed with high brand loyalty among its customers. As it is
one of the biggest market players it has proportionately larger group of loyal
customer, who are in turn a medium of marketing/ advertising.
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INFORMATION
TECHNOLOGY
INTEGRATION
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Amul is bolstering its brand identity as a farmers' co-operative through the Internet
based "amul.coop" URL and e-mail addresses. This will continually remind the
world's consumers that they are a cooperative, and proud of it. This identity gives
Amul a vital business advantage and facilitates Amul brand penetration across the
world. It also strengthens their co-operatives by bringing their members together and
closer to consumers.
Even though the cooperative was formed to bring together farmers, it was recognized
that professional managers and technocrats would be required to manage the network
effectively and make it commercially viable.
Coordination
Given the large number of organizations and entities in the supply chain and
decentralized responsibility for various activities, effective coordination is critical for
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efficiency and cost control. GCMMF and the unions play a major role in this process
and jointly achieve the desired degree of control.
Buy-in from the unions is assured as the plans are approved by GCMMF's board. The
board is drawn from the heads of all the unions, and the boards of the unions comprise
of farmers elected through village societies, thereby creating a situation of
interlocking control.
The federation handles the distribution of end products and coordination with retailers
and the dealers. The unions coordinate the supply side activities.
These include monitoring milk collection contractors, the supply of animal feed and
other supplies, provision of veterinary services, and educational activities.
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For example, every Friday, without fail, between 10.00 a.m. and 11.00 a.m., all
employees of GCMMF meet at the closest office, be it a department or a branch or a
depot to discuss their various quality concerns.
Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL)
with a process check at the end to record how the meeting was conducted. Similar
processes are in place at the village societies, the unions and even at the wholesaler
and C&F agent levels as well.
Examples of benefits from recent initiatives include reduction in transportation time
from the depots to the wholesale dealers, improvement in ROI of wholesale dealers,
implementation of Zero Stock Out through improved availability of products at depots
and also the implementation of Just-in-Time in finance to reduce the float.
Kaizens at the unions have helped improve the quality of milk in terms of acidity and
sour milk. (Undertaken by multi-disciplined teams, Kaizens are highly focused
projects, reliant on a structured approach based on data gathering and analysis.) For
example, Sabar Union's records show a reduction from 2.0% to 0.5% in the amount of
sour milk/curd received at the union.
The most impressive aspect of this large-scale roll out is that improvement processes
are turning the village societies into individual improvement centers.
PRICING
The amount of money charged for a product or service or the sum of the values that
consumers exchange for the benefit of having or using the product or service is called
its price. A company’s pricing decisions are affected by both internal factors like
company’s objectives, marketing mix strategy, cost and organizational considerations
and external factors like nature of the market and demand, competition and other
environmental elements.
While deciding the price of its products AMUL takes into consideration all the below
mentioned factors, this is true for all the products.
• Cost of labour
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AMUL believes that the company with largest market share will enjoy lowest cost
and highest long run profit to become the market leader. They set prices as low as
possible.
PRICING APPROACH
AMUL employs different pricing policies for different products depending upon the
life cycle stage of the product, market condition and the nature of product.
In case if the product is newly launched in the market the company doesn’t emphasize
on the profit margin and keeps its prices as low as possible so as to penetrate in the
new market.
However in case of the already established products the company uses a mix of cost
plus pricing approach and competitor based pricing approach i.e. it sets its prices
keeping in view the cost of production, desired profit margin and prices of
competitor’s products
DISTRIBUTION CHANNEL
Manufacturer---------------Consumer
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Manufacturer---Retailer---Consumer
(iii) TWO-LEVEL CHANNEL:
Manufacturer--Wholesaler--Retailer--Consumer
(iv) THREE-LEVEL CHANNEL:
Manufacturer-Wholesaler-Agents-Retailer-Consumer
AMUL has three-level distribution channel, i.e. it employs carry forward agents,
wholesaler and retailers to carry its products to the final consumers.
Till today, the major development on the distribution front is the development and
alignment of four distribution highways - those of Fresh Products, Chilled Products,
Frozen Products and Ambient Products. This is a significant achievement because it
allows AMUL to develop synergies among all their product lines and to leverage
these highways to introduce and distribute new products as per market demand. No
other organization in India has been able to develop this kind of channel synergy so
far.
Another major initiative undertaken is the Time-based Military Technique (TMT) of
distribution. This has been deployed to effect a nationally synchronized mass
distribution of their products with the objective of achieving total channel penetration
on a single day.
After Distributor Salesmen in the previous year and Distributors in the year before
last, it was the turn of the top Retailers across the country to participate in the Amul
Yatra Programme which is a unique experiment conducted by Amul to bring their
channel partners face to face with their cooperative institutions, activities, culture and
achievements through a guided tour in and around Anand. A total of 114 Distributor
Salesmen and 482 top retailers from across the country participated in the Amul Yatra
this year. With the opening of several new milk markets and 3 separate Milk Sales
Offices at Mumbai, New Delhi and Boisar, the number of Milk Area Delivery Agents
has increased.
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ZONAL INCHARGE
↓
DEPOT INCHARGE
↓
EXECUTIVES
↓
F.S.R. (Field Sales Representative)
↓
PSM (Pilot Sales man)
The total staff at AMUL is of nearly 750 people. The company conducts intensive
training programme for its employees. The company sends any of its employees for
training who will later train the other employees. It’s not necessary that the person
sent for training must be someone from the top or middle management, he can be any
employee. The company treats all its employees equally. Various training
programmes like TQM, Self management Programmes, etc conducted so far. The
turnover and absenteeism ratio is almost negligible at AMUL which is the proof of the
well functioning of the Human Resource Management. All the agents and sales force
is giving a percentage of sales as commission.
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INTEGRATED MARKETING
COMMUNICATIONS
ADVERTISING
Amul has had one of the most successful Ad campaigns in the country. Innovative
and refreshing, Maul’s Ads have, through the years, captured the imagination of the
whole nation. Created in 1966 the topical, news-event-oriented ads are reportedly
ready to enter the Guinness Book of World Records as the longest running advertising
campaign ever.
The reason for the unprecedented success of the Amul ads is because of their
simplicity. These Ads do not involve any high flying or hi-tech special effects. They
are very simple and bank solely on clean humor for their success. The team, which
designs all the Ad campaigns for Amul, has been very focused on this point. As a
result you don’t see any radical deviations in their Ad campaigns and all the Ads are
built along the same lines. And this too while maintaining the freshness that was
present in the very first Ad 5 decades back. Another main reason for their success is
the range of topics they cover in their Ads. The Ads always take a shot at the current
hot topics in the news. Such has been the popularity of these campaigns that people go
down to the nearest Amul hoarding just to see the latest Ad. People talk about it over
lunch, in parties. It is hard to imagine the amount of brand equity the thumb sized girl
polka dotted dress has achieved ever since she went up the Amul hoarding.
All the ad campaigns of AMUL are carried out by the two Bombay based ad agencies
namely DA CUNAS and ALUKA, which takes care of all its promotional campaigns.
The company just briefs these agencies about the product and the rest is done by them
i.e. creating message, deciding the media vehicle and timing, execution, etc.
AMUL implements various sales promotion tools for wholesalers, retailers, sales
force and customers. They offer 3% to 3.5% profit margin to stimulate its wholesaler
and retailers. The sales persons are given a commission on a fixed percentage on their
sales. The profit of the company reaches directly to the owners i.e. the farmers in the
way of increase in price of milk, other technical assistance and subsidies. The
company also introduces various schemes for the customers like more quantity at less
price, free gifts and contests. The company had introduced a contest namely AMUL
MAHARANI CONTEST in the previous year for promoting its products.
INTERNATIONAL BUSINESS
AMUL stands out a star performer both in the domestic and international market.
With the perfect mix of technical know how and business acumen the company has
grown into a major of milk and milk products producing company.
AMUL is India’s largest exporter of dairy products. It has been accorded a “Trading
House” status. It has received the APEDA Award from Government of India for
excellence in dairy product exports for the last 8 years.
AMUL has its market in almost 20 countries which include USA, Iraq, Kuwait,
Russia, Nepal, Qatar, Muscat, Singapore, Saudi Arabia, Sri Lanka, Bangladesh,
Gambia, Uganda, Madagaskar, Tanzania, U.A.E., Bahrain. Major export products of
AMUL are:
Consumer Packs
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Bulk Packs
INTERNATIONAL DISTRIBUTION
STRATEGIES
The company has appointed special carry forward agents for distributing its
products in the international market .It has rented cold storages in various
countries to store its products from where they are distributed as per orders.
Although the distribution network for international market is not so well
knitted as in case of domestic market, it has been successful in maintaining a
satisfactory network that ensures smooth functioning.
While deciding the prices for international market the company takes into
consideration the prices of the competitors , production cost , distribution cost for
international market , taxes and duties to be paid ,etc. However the company tries
not to have much difference in prices in National and the International markets.
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PRODUCT VARIATIONS
There are no variations in the basic products that the company offers in
National and International markets, except for the fact that the company has to
maintain the quality standards as per the regulations of the respective countries.
Not all the products manufactured are yet available in International market
because of the difference in preferences and consumption pattern of the people
in various countries.
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 labor intensive.
Due to low labor cost, cost of production of milk is significantly lower in India.
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In 1994 AMUL had embarked on the Total Quality Management and in 1999 received
the Rajiv Gandhi National Quality Award for the year 1999, India’s premier
recognition for quality. Continuing to learn their employees have consistently striven
to maintain improved product and service quality at each stage of the value chain.
Learning from employing Total Quality Management principles have been cascaded
to both the member dairies as well as distribution channel members. Workshops on
Statistical Quality Control have been conducted across the member dairies to achieve
total quality in the production process.
On of AMUL’s most remarkable achievements has been creation of more than 225
Quality Circles across the length and breadth of the country. The federation’s
wholesale dealers meet every month in these quality circles and discuss and resolve
distribution problems and improve their distribution process.
Another unique feature of the TQM programmes at AMUL is the HOSHIN KANRI.
The word Hoshin is made up of two Chinese characters “HO” and “SHIN”
which means a methodology for strategic direction setting. In Hoshin Kanri, at
the strategic level the company identifies certain strategic thrust areas and the
entire organization, i.e. all employees focus their attention and energy to
achieve the goals derived from these strategic thrust areas. At the same time,
however, more routine and fundamental aspects of the business are also covered
in Hoshin Kanri in addition to the strategic goals.
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FINANCE
DEPARTMENT
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INTRODUCTION
The firm may have any objectives but financial management has the
objectives of profit maximization or weather maximization. Keeping in mind this
particular objectives only major 3 decision are taken that are:
Investment Decision
Financing Decision
Dividend Policy Decision
FINANCIAL PLANNING
Planning is pre-requisite for managing any little things too. When we think
about fund, financial planning comes at first. Financial planning answers the
following questions: -
Head office deals with the arrangement of raising the funds and provides funds
required by any of four plants.
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WORKING CAPITAL
Management of working capital usually involve management or
administration of current assets namely cash and marketable securities, account
receivable and inventories and also administration of current liabilities. The quantum
of working capital in business is dependent on various factors. Such as type of
business, turnover of inventories, term of purchase and sale, size of the business unit,
process of manufacturing, seasonal variations etc. the present company is engaged in
manufacturing of capital goods. Therefore naturally there is a high amount of working
capital required.
CASH
The cash is needed for various purposes in business. They may be speculative,
transitive and precautionary motives. The management of cash requires cash planning.
It is a technique to plan & control the use of the cash. Cash is the most liquid current
asset. Finance manager has to do cash planning. Manager the cash flows decide
optimum balance of cash and invest the surplus cash in marketable securities.
ACCOUNT RECEIVABLE
INVENTORIES
Inventories constitute the most significant part of current assets of a large
majority of companies. The inventories are in form of raw material, work in process
and finish goods. The management of inventories is necessary to maintain a large size
of inventory for efficient and smooth production and sales operations and to maintain
the minimum investment in inventories is not desirable. The latest and modern
techniques like economic order quantity are used in the company for management of
the inventories.
RATIO ANALYSIS
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Ratio analysis is one of the techniques of financial analysis where ratios are
used as a yardstick for evaluating the financial condition and performance of a firm.
Liquidity ratios:
A liquidity ratio is a ratio, which points out whether there are sufficient liquid
resources to meet the short-term liabilities. They are meant to measure the company’s
financial strength to meet current obligations.
e.g.: current ratio, quick ratio etc.
Solvency ratios:
These are long-term ratios, a pointer to the future and long-term solvency of
the company in which creditors, bankers and financial institutions have great stake.
e.g.: Proprietary Ratio, Debt-Equity Ratio.
Profitability ratios:
Ratios that are meant to measure the profit-earning capacity of the firm in its
business operation fall under this category.
e.g.: Gross Profit Ratio, Net Profit Ratio, Return on Capital Employed.
Activity ratios:
These ratios establish a relationship between sales and various assets of the
firm, how well the assets are being made use of and the speed with which they are
converted into sales.
e.g.: Debtors’ Turnover Ratio, Creditors Turnover Ratio, and Stock
Turnover Ratio.
Current ratio:
Current ratio is a significant ratio, which establishes a relationship between
current assets and current liabilities of a firm during a given period of time. It is also
known as “working capital” ratio
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HUMAN
RESOURCE
MANAGEMENT
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INTRODUCTION
The dairy industry is moving forward by leaps and bounds. Aided and
supported by extensive R&D, emergence of new state of the art Dairy plants, training
programs conducted by NDDB and quality control measures that make sure the end
consumer gets optimum value for money.
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The National Dairy Development Board - the accolades for the progress of the
dairy industry rest squarely on it's collective shoulders.
The screw compressor room of the refrigeration plant at the 30 TPD Power
plant, Meerut, the first of it's kind in the country
► Facilities
The society has a comprehensive medical benefit scheme for its employees.
The employee and his dependent family members are eligible for reimbursement of
medical expenses in respect of any ailment, disease, injury, or disability suffered by
them. For routine medical treatment the ceiling is as under:
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Employees and their family members are periodically examined and the
report is given to them with doctor’s suggestions for remedial action.
CANTEEN:
Canteens have been provided at our factories, which provide lunch, tea and
snacks. Canteen management committees consisting of the employees also monitor
the menus, cleanliness, quality of food. Canteen Subsidy is paid @ 7% of the basic
pay to officers and @ 5% of basic pay to workmen.
TRANSPORT FACILITIES:
AMUL is providing bus facility to its employees for coming to their workplace
at our factories.
They also advertised for the after the service of the dairy which are the best in
the dairy and available very less and cheaper rate in other competitors. Dairy is
advertised its product by autorikshow and cycle. Dairy is promoted the worker to
increase the productivity and motivation.
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RESEARCH
AND
DEVELOPMENT
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The Amul dairy is having independent research & development department. Dairy has
to maintenance the quality of the product so person have to measure the fat,
pasteurization and also quality.
The Amul dairy research its product at every two hours dairy has a milk
reception lab it has a SNF. Central lab for quality assurance is found a quality every
two hours in a day because the test of the product is depended on a quality and milk is
a finish good so it can not be maintained for the long time so Amul dairy research
every hours to maintained the sweet test of the product.
The training to the worker in necessary part in every large organization this
dairy has its “personnel training center” and its provide training to its employee the
training is necessary to operate and control the machinery and operational
information, information about near and latest technology and computerized machine
are to near provided though technology. Thus, dairy is taking steps for training and
development of the employee.
1. Identify those characteristics of the for elements in the development process the
affects uncertainty in the determination of the information.
a. Utilization system
b. Information system or application
c. Users
d. Analysts
2. Evaluate the effect of the characteristics if the four elements in the development in
the development process on three uncertainties.
5. Select one or more methods from the set of methods to implement the primary
strategy.
Most managers’ works at hectic pace. They always thinking about since
they are responsible for a lot of important activities.
Their roles influence the characteristics of activity like brevity, variety and
fragmentation.
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The study reveled that not only are managerial decisions unstructured, but the
environments in which these decisions are made are also unstructured. As a result, it
is a necessary to consider the cognitive style of managers when developing a decision
support system. To make the system powerful, it should be combined with order
information gathering and evaluation techniques. The business environment is full of
interruption and managers can hardly exercise any control over such distortions.
CONTROL ROOM
Control room is a one of the department of the dairy. Control room is called a
heart of the dairy because all the machine are handled by the control room there are
two person who operate all the machine in the dairy Amul dairy is a fully
computerized and machineries so there are a few workers are require for increase for
increase the productivity.
ORGANIZATION CHART
Control
Workers
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SWOT ANALYSIS
The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’ far
outweigh ‘weaknesses’ and ‘threats’. The strengths and opportunities are fundamental
and weaknesses and threats are transitory.
STRENGTHS:
WEAKNESSES:
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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
OPPORTUNITIES:
Value addition: There is a phenomenal scope for innovations in
product development, packaging and presentation. Given below are potential areas of
value addition:
o Steps should be taken to introduce value-added products like
shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets,
chocolates etc. This will lead to a greater presence and flexibility in the
market place along with opportunities in the field of brand building.
o Addition of cultured products like yoghurt and cheese lend further
strength - both in terms of utilization of resources and presence in the
market place.
o A lateral view opens up opportunities in milk proteins through casein,
caseinates and other dietary proteins, further opening up export
opportunities.
o Yet another aspect can be the addition of infant foods, geriatric foods
and nutritional.
• Export potential: Efforts to exploit export potential are already on. Amul is
exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following
the new treaty, opportunities will increase tremendously for the export of
agricultural products in general and dairy products in particular.
THREATS:
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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
Milk vendors, the un-organized sector: Today chocolate vendors are occupying the
pride of place in the industry. Organized dissemination of information about the harm
that they are doing to producers and consumers should see a steady decline in their
importance.
CONCLUSION
This is the vision of the future which the company sees for itself:
‘‘AMUL will be an outstanding marketing organization, with specialization in
marketing of food and dairy products, both fresh and long life with customer focus
and information technology integration.
The network would consist of over 100 offices, 7500 stockists covering at least every
taluka head quarter town, servicing nearly 10 lakh outlets with a turnover of
Rs.10,000 Crore, and serving several co-operatives.
AMUL shall also create a market for its products in the neighboring countries.”
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REFERENCES
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AMUL DAIRY
PRODUCT
Bread Spreads
Amul Butter Amul Lite
Utterly Butterly Delicious Low fat, low Cholesterol
Bread Spread
Delicious Table
Margarine
The Delicious way to eat
healthy
Milk Drinks
Amul Kool Amul Kool Cafe
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Powder Milk
Amul Spray Infant Milk Amul Instant Full
Food Cream Milk Powder
Still, Mother's Milk is Best A dairy in your home
for your baby
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Fresh Milk
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 Toned Amul Lite Slim and Trim Milk
Milk
Amul Calci+
Cheese
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Gouda Cheese
For Cooking
Amul / Sagar Pure Ghee Cooking Butter
Made from fresh cream. Has
typical rich aroma and
granular texture. An ethnic
product made by dairies with
decades of experience.
Desserts
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Health Drink
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