REPORT ON

Understanding Consumer Perception Towards

Amul Milk Product
THIS STUDY WAS CONDUCTED FROM 6th APRIL 2016
TO 30th JUNE 2016
AT

GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LIMITED

By- KAJAL PRADHAN, PGDM

From

International Institute Of Management Studies

(PUNE)
A REPORT SUBMITTED IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS OF PGDM COURSE DURING

(2015-2017)

PREFACE
The PGDM program is a well-structured and integrated course of business
studies.
The main objective of practical training at PGDM level is to develop skills in
students by supplement to the theoretical study of business management in
general. Industrial training helps to gain real life knowledge about the industrial
environment and business practices.
The PGDM program provides student with a fundamental knowledge of business
and organizational functions and activities, as well as an exposure to strategic
thinking of management.
Training is an integral part of PGDM and each and every student has to undergo
the training for 3 months in a company and then prepare a project report on the
same after the completion of training.
During this whole training I got a lot of experience and came to know about the
management practices in real and how it differs from the theoretical knowledge.
In todays globalized world, where cutthroat competition is prevailing in the
market, theoretical knowledge is not sufficient. Besides this, one need to have
practical knowledge, which would help an individual in his /her carrier activities
and it, is true that Experience is the best teacher.

CERTIFICATE
The following summer internship project report titled --VISIBILITY AND MARKET RESEARCH OF AMUL ICE CREAM at Gujarat Co-operative
Milk Marketing Federation Ltd., Pune from 5th April 2016 to 5th june 2016 is here by approved
as a certified study in management carried out and presented in a manner satisfactory to warrant
its acceptance as a prerequisite for the award of PGDM .
For which it has been submitted. It is understood that by this approval the undersigned do not
necessarily endorse or approve any statement made, opinion expressed on conclusion drawn
therein but approve the Summer internship report only for the purpose it is submitted.

Signature of
Officer in Charge
Pune,
G.C.M.M.F Ltd

DECLARATION
I hereby declare that the following project report titled
Understanding Consumer Perception Towards Amul Milk at Gujarat Co-operative Milk
Marketing Federation Ltd., Pune is an authentic work done by me. It is to the best of my
knowledge and belief.
This is to declare that all my work indulged in the Completion of this Project Report such as
research, consumer Behaviour and Market Research is a profound and honest work of mine.

Date:

Signature
Kajal Pradhan

ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for GUJARAT
COOPERATIVE MILK MARKETING FEDERATION LTD; ANAND (AMUL).
It has been an enriching experience for me to undergo my summer training at AMUL, which
would not have been possible without the goodwill and support of the people around. As a
student of
INTERNATIONAL INSTITUTE OF MANAGEMENT STUDIES
I would like to express my sincere thanks to all those who helped me during my practical
training program.
I would like to thank Mr.Atul Suru(Branch Manager) for having given me the opportunity to do
my project work in the organization, and lighted my way of progress with his guidance.
I would like to express my sincere gratitude to my Director Dr. Sandip Sane for the continuous
support. I thankfully acknowledge the continuous support and inspiration given to me by my
Project Guide Prof. Anil Varma for sparing his valuable time with me and giving all the
guidance in executing the project as per requirement.
I am grateful to my friends for giving support in my project. Lastly, I would like to thank each
and every person who helped me in completing the project Especially MY PARENTS.

EXECUTIVE SUMMARY
In todays competitive world while entering in the market it is very necessary to have good
knowledge of the potential of a particular market. The information regarding the activities of
competitors existing in the market is very essential in chalking out our own plan.It is also
necessary to retain the existing customers apart from attracting the new customers. The Project is
concerned with the Understanding Consumer Perception Towards Amul Milk Products in
Pune- Maharastra. The project is included as a part of PGDM Program and is carried out from
6th April 2016 to 30th June 2016. The study helps to Understand Consumer Behavior
regarding Amul Milk. Research type was descriptive. The research was done through
retailers. I have collected the primary data through questionnaire. Questions were both open and
close ended. The secondary data was collected from the distributors and salesman, Websites etc .

INDEX
CHAPTER
NO.

TITLE

PREFACE
CERTIFICATE
DECLARATION
ACKNOWLEDGMENT
EXECUTIVE SUMMARY
INTRODUCTION

DAIRY INDUSTRY
COMPANY HISTORY
ORGANIZATION STRUCTURE
PRODUCT SHOW CASE

AMUL MILK

VARIANTS OF MILK
2
3
4
5

COMPETITORS ANANLYSIS
OBJECTIVE OF STUDY
RESEARCH METHODOOGY
DATA ANALYSIS & INTERPRETION
RETAILER
CONSUMER

6
7

FINDINGS
SUGGESTION & CONCLUSION
ANNEXURE
REFRENCE & BIBLIOGRAPHY

PAGE
NO.
2
4
5
6
7
11
12
16
27
30
31
33
36
44
46
50
51
61
72
74
77
80

Chapter-1
Introduction

DAIRY INDUSTRIES IN INDIA

The dairy sector in the India has shown remarkable development in the past decade and
India has now become one of the largest producers of milk and value-added milk products in the
world. The dairy sector has developed through co-operatives in many parts of the State with the
increase in milk production. Maharashtra now regularly exports milk to neighbouring states.
More
than
2,445
million
people
economically active in agriculture in the world,
probably 2/3 or even more of them are wholly or
partly dependent on livestock farming. India is
endowed with rich flora & Fauna & continues to be
vital avenue for employment and income
generation, especially in rural areas. The share of
livestock product is estimated at 21% of total
agricultural sector.
Dairy industry is of crucial importance to India. The
country is the worlds largest milk producer, accounting for more than 13% of worlds total milk
production. It is the worlds largest consumer of dairy products, consuming almost 100% of its
own milk production. Dairy products are a major source of cheap and nutritious food to millions
of people in India and the only acceptable source of animal protein for large vegetarian segment
of Indian population, particularly among the landless, small and marginal farmers and women.
The mission achieved thrust and direction with the launching of "Operation Flood", a programme
extending over 26 years and which used World Bank loan to finance India's emergence as the
world's largest milk producing nation. Operation Flood's third phase was completed in 1996 and
has to its credit a number of significant achievements.
The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest food
products marketing organization of India. It is the apex organization of the Dairy Cooperatives of
Gujarat. This State has been a pioneer in organizing dairy cooperatives and our success has not
only been emulated in India but serves as a model for rest of the World. Over the last five and a
half decades, Dairy Cooperatives in Gujarat have created an economic network that links more
than 2.8 million village milk producers with millions of consumers in India and abroad through a
cooperative system that includes 13,141 Village Dairy Cooperative Societies (VDCS) at the
village level, affiliated to 13 District Cooperative Milk Producers Unions at the District level
and GCMMF at the State level.
These cooperatives collect on an average 7.5 million liters of milk per day from their producer
members, more than 70% of whom are small, marginal farmers and landless laborers and include

a sizeable population of tribal folk and people belonging to the scheduled castes. It markets the
products, produced by the district milk unions in 30 dairy plants, under the renowned AMUL
brand name.
The combined processing capacity of these plants is 11.6 million liters per day, with four dairy
plants having processing capacity in excess of 1 million Liters per day. The farmers of Gujarat
own the largest state of the art dairy plant in Asia Mother Dairy, Gandhinagar, Gujarat which
can handle 2.5 million liters of milk per day and process 100 MTs of milk powder daily. During
the last year, 3.1 billion liters of milk was collected by Member Unions of GCMMF.
Huge capacities for milk drying, product manufacture and cattle feed manufacture have been
installed. All its products are manufactured under the most hygienic conditions. All dairy plants
of the unions are ISO 9001-2000, ISO 22000 and HACCP certified. GCMMF (AMUL)s Total
Quality Management ensures the quality of
products right from the starting point (milk
producer) through the value chain until it
reaches the consumer.
Ever since the movement was launched
fifty-five years ago, Gujarats Dairy
Cooperatives have brought about a
significant social and economic change to
our rural people. The Dairy Cooperatives
have helped in ending the exploitation of
farmers and demonstrated that when our
rural producers benefit, the community and
nation benefits as well.
The Gujarat Cooperative Milk Marketing
Federation Ltd. cannot be viewed simply as a business enterprise. It is an institution created by
the milk producers themselves to primarily safeguard their interest economically, socially as well
as democratically.
Business houses create profit in order to distribute it to the shareholders. In the case of GCMMF
the surplus is ploughed back to farmers through the District Unions as well as the village
societies. This circulation of capital with value addition within the structure not only benefits the
final beneficiary the farmer but eventually contributes to the development of the village
community.

COMPANY HISTORY

During the period of 1940s the framers have to travel long distance to deliver milk to one and
only Polson dairy due to which often milk went sour and farmers have to suffer loss they were
even exploited by giving less money in return of milk they provided.
To find the solution to these problem farmers of kheda went to Sardar Vallabbhai Patel under the
leadership of Tribhovandas Patel. Sardar Vallabbhai Patel advised them to form a cooperative
union to supply milk directly to Bombay instead of selling it to Polson dairy.
In those days Tribhuvandas Patel moved from villages to villages convincing farmers to from
village level cooperative. The members from all the caste and creed came together to from union.
The kaira district co operative milk producers union was registered on 10 th December 1946. In
1955 they established brand name AMUL.
The cooperative was further developed and managed by Dr.Verghese Kurien with H.M. Dalaya.
Dalaya's innovation of making skim milk powder from buffalo milk (for the first time in the
world) and a little later, with Kurien's help, making it on a commercial scale, led to the first
modern dairy of the cooperative at Anand, which would compete against established players in
the market. Kurien's brother-in-law K.M. Philip sensitized Kurien to the needs of attending to the
finer points of marketing, including the creation and popularization of a brand. This led to the
search for an attractive brand name. In a brainstorming session, a chemist who worked in the
dairy laboratory suggested Amul, which came from the Sanskrit word "Amulya", which means
"priceless" and "denoted and symbolized the pride of Swadeshi production.

The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to
Anand's neighborhood in Gujarat. Within a short span, five unions in other districts Mehsana,
Banaskantha, Baroda, Sabarkantha and Surat were set up. To combine forces and expand the
market while saving on advertising and avoid competing against each other, the GCMMF, an
apex marketing body of these district cooperatives, was set up in 1973. The Kaira Union, which
had the brand name Amul with it since 1955, transferred it to GCMMF.

GUJARAT COOPERATIVE MILK MARKETING FEDERATION

(GCMMF)
Gujarat cooperative milk marketing federation (GCMMF) is India largest food products
marketing organization it is a state level apex body of milk cooperative s in Gujarat which aims
to provide remunerative return to the farmers and also serve the interest of consumers by
providing quality product which are good value for money.
Year of establishment

: 1973

Members

: 17 district cooperative milk producers union

No. Of producers members

: 3.37 million

No. Village societies

: 18536

Total milk handling capacity

: 24 million litres per day

Milk collection

: 2.69billion litres

Milk collection

: 5.42billoin litres

(Daily average 2007-08)

: 14.85 million litres million litres

Milk drying capacity

: 626 Mts. per day

As you may be aware, Gujarat co-operative milk marketing federation limited is also one of the
Indias largest food company having an annual turnover in 2007-08 above Rs.5000crores. This is
an outcome of collective wisdom of some 20 lakh milk producers of Gujarat who have joined
hands to carve out a premier co-operative organization which has built such a valuable brands
known as Amul and sagar, over a period of 50 years.
At present, GCMMF has 12 member union and respective dairy co-operative societies made
famous by the much acclaimed Anand pattern of co-operatives. The pattern envisages dairy cooperative at level a processing unit called union at the district level and these are federated at the
state level. Today there are 20 lakh farmers forming 10 thousand village dairy co-operative
which gives a tremendous strength to the Amul sagar.

Company Name

: Kaira District Co-Operative Milk Producers Union Limited

Amul Dairy

Location

: Kaira District Co-Operative Milk Producers Union

Juna Bus Station Road, Anand-388001 ,Gujarat.

Head office

: Gujarat co-operation milk marketing Federation ltd.

Amul dairy road, P.B.No .10, anand-388001

Phone

: +91-2692-258506, 258507, 258508, 258509

Email

: [email protected]

Website

: www.amul.com

Registration

: 14th December , 1946

Initial promoters

: Shri Tribhuvandas Patel

Shri Moralji Desai

ORGANISATIONAL STRUCTURE
Chairman
Board of Directors
Managing Director (1)
General Manager
Assistant General Manager (2)
Manager
Senior Dy. Manager

Executive
Assistant
Skilled/Unskilled Work man

PRODUCT SHOWCASE

Introduction to AMUL MILK :

Amul was started on in Gujarat. The portfolio consisted of impulse products like pouch as well
as take home packs and institutional/catering packs. Amul was launched on the platform of
Amul Milk Pita Hey India given that it is a milk company and the wholesomeness of its
products gives it a competitive advantage. In Amul entered Mumbai followed by Chennai in
1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999. It
has combated competition like Mother Dairy and achieved the No 1 position in the country. This
position was achieved in 2001 and it has continued to remain at the top.
Today the market share of Amul Milk,Curd,Buttermilk is 38% share against the 9% market share
of HLL, thus making it 4 times larger than its closest competitor.Not only has it grown at a
phenomenal rate but has added a vast only of pouches to its ever growing range. Currently it
offers a selection of daily products. Amul has always brought newness in its products and the
same applies for Amul.
In , Amul introduced FAT FREE , which was a first in India. This range of FAT FREE, LOW
FAT Milk created for the health conscious. Amuls entry into milk regarded as successful due to
the large market share it was able to capture within a short period of time due to price
differential, quality of products and of course the brand name.
Production Area:
The main market for organized sector is restricted to large metropolitan cities. In small towns
and villages, there are thousands of small players who produce milk in their home backyard and
cater to the local market
Types:
Indian Milk market can be segmented in three different ways, namely on the basis of pouches;
on the basis of stock keeping units / packaging and on the basis of consumer segments.
On the basis of flavours the market today has a number of pouches traditional flavours like
FULL FAT, LOW FAT, FAT FREE etc.

Chapter- 2
Competitor analysis

COMPETITORS IN PUNE MARKET

For a company to excel, they need to be well aware about their competitors. The main rivals .

Chitale
Katraj
Mauli
Mother Dairy
Others

MOTHER

DAIRY

Mother dairy was commissioned in 1974 as a wholly owned subsidiary of the National Dairy
Development Board (NDDB) , It was an initiative under Operation Flood, a dairy development
program aimed at making India a milk sufficient nation. Mother Dairy sources a significant part
of its requirement of liquid milk from dairy cooperatives and village level farmer centric
organizations.

KATRAJ
Katraj Dairy was incorporated in 1960 with an intension of providing an organized facility
of milk collection for the village level farmers situated in Pune district.

Chapter-3
Objective of
Study

OBJECTIVES :

To find the consumer behavior in the market for Amul Milk.

To understand the buying process of Amul Milk products.
To study the awareness pattern as well as level of satisfaction of retailers with Amul
Milk Products.

Chapter-4
Research
Methodology

RESEARCH METHODOLOGY
The research was conducted from 6th April 2016 to 30th June 2016. The research included
meetings with the retailers, consumers and dealers. It included preparation of the questionnaire to
be answered by above people for knowing the competitive position of Amul in the milk market.
The views of the above parties were recorded in the research as per the questionnaire.

RESEARCH APPROACH:
The objective was to know the competitive position of Amul in the market, thus in order to
successfully conduct the research an unbiased opinion of the above parties was desirable. Thus I
conducted the research as the representative of AMUL Company.

METHOD

OF

SURVEY:

Personal Interview: It is direct form of investigation, involving face-to- face communication

with feedback. It offers a sense of participation. It is more flexible form of data collection. Use of
unstructured, open-end questions is possible. Rate of refusal is low. Depth interview is possible.
Complex questions can be asked. The interview can have questions to secure more information.
Visual aids in the form of catalogues samples etc. can be used to get views, opinions, and
attitudes of responder.

Questionnaire : Direct meeting with the customers and take the permission and giving the
form to customers and taking feedback in form of questionnaire. this is helps to me
understanding the customers perception towards milk.

Limitation:

The information is given in the report is purely on the basis of the generated data
provided by respondents.
Total coverage of the study was limited to few consumers and limited areas of Pune.
Time period of the project was 8 weeks, which may not be enough to understand the
whole market.
The psychology and temperament of a respondent play a significant role. Some
respondents are more sensitive as against others who are more tolerant. A change in
the composition of the respondents can affect the answers adversely or favorably.
Respondents may not have been true in answering various questions and may be
biased to certain other questions.

Research Design
Descriptive Research Design

Sampling Design
Convenience Sampling

Size of Sampling
117 respondents

Data Collection Method

Primary Data
Questionnaire
Secondary Data
Websites and data provided by AMUL

Data Analysis Method

MS Excel Method

Area of survey
Pune City

Chapter- 5
Data analysis
&
Interpretation

SURVEY ON CONSUMER PERCEPTION TOWARDS AMUL MILK

1. which milk you consumed ?
(i)Pouch
(ii)Loose
(iii)Both

Chart Title
pouched

loose

both

20%
10%
70%

Interpretation :Through the survey, I found that most of the

population consumed 80% people consumed Pouched milk , 10%
people consumed loose milk and 20% people consumed both.

2. Are you satisfied with the milk you are consuming ?

(i)Yes

(ii)No

Chart Title
yes

no

25%

75%

Interpretation:75% people says that they are satisfied with milk

which they are consuming and rest 25% people dissatisfied .

3. What do you like quality & taste , price, availability ?

Chart Title

15%

quality & taste

price
availability

20%
65%

Interpretation: here I found that 65% people like Quality and

taste of milk ,20% buy milk due to price and rest 15% people
go for the availability of milk .

4. Do you get milk pouch at doorstep , retailer ?

Chart Title

20%

doorstep
retailer

80%

Interpretation: most of the population means 80% people go to the

reatailer for buying milk and rest 20% people get milk at doorstep.

5. In pouch milk which brand do u prefer?

(i)Aamul
(ii)chitle

(iii)katra
j
(iv)gokul
(v)moth
er
(vi)dairy
(vii)maul
i

Chart Title
Aamul
chitle

5% 3%
30%

7%

katraj
gokul

15%

mother dairy
mauli
40%

Interpretation: here 40% people consumed Chitle milk , 30%

people consumed Amul milk , 15% people consumed Katraj milk
and rest people go for Gokul,Mother dairy and Mauli.

6. Why do u prefer this brand /due to

(i)Quality and taste
(ii)Price
(iii)Availability

Chart Title

15%

quality & taste

price
availability

20%
65%

Interpretation: here I found that 65% people prefer milk due to his
Quality and taste, 20% people go for price of milk and rest 15% people
go for the availability of milk which is easily available .

7. If you buy AMUL milk pouch which pack you purchase?

(i)Gold
(ii)Taaza
(iii)Slim n trim
(iv)Cow

Chart Title

15%

18%

gold
taaza
slim n trim

12%

cow milk

55%

Interpretation: here I found the 55% people purchasing Amul taaza

milk, 18% people purchasing Amul gold milk , 12% people purchasing
Amul Slim n trim milk those are health conscious and rest population
go for the Amul Cow milk they believe thet Cow milk is real milk.

FINDINGS
Through this survey, it is clear that:

Amul is preferred by the consumers.

Lack of effective marketing.

Lack of new schemes (although this has improved somewhat during the course of
research).
Supply is not being able to meet the demand.
Amul is having its reach in the city area only, when compared to Chitle; the brand is
present in village areas also.
.No sales person has approached most of the areas.
Amul Milk is also not present in the outlet where there is maximum foot fall.

Chapter- 7
Suggestion
&
Conclusion

Suggestion
Provide reasonable Margin to retailers as compared to competitors, this
motivates them to promote companys milk products. Incentives & schemes
should be given to the retailers and some cross check system should be
followed to check if the schemes are being communicated properly by
distributors or sales person.
In this competitive market not providing free fridge to retailers when your
biggest competitor is providing it with ease leads to huge loss in market

share. All the retailers are in the habit of getting free fridges from Chitle,
this strategy by Chitle is not only pushing out Amul from the shops but also
not letting it enter to areas where Amul havent been able to reach yet.
Amul has a relatively good distribution network but supply of basic milk is
not meeting the demand of customers. Lack of consistent supply is leading to
customers being pushed away to other brands. Maximum number of vendors
does not get the products that they ask for. Company should focus on this
issue and try and improve the supply chain management.

Conclusion
As we know that Amul is a big organization and market leader in dairy products. It has
maximum market share in Milk, Butter and Cheese which are its main/core products. But
when it comes to Amul Milk, it is not a popular product as compared to other Amul
Products. All the retailers feel that Amul products are very good in taste and once a customer
tries it they will become loyal to the brand but, then again, supply shortages have led to
customers shifting to other brands and retailers too start keeping less of Amul Milk.
Also, strong marketing tactics adopted by other brands have resulted in Amul Milk being left
behind. It was a great experience working in Amul. The people, the work culture, working

environment was very comfortable and easy to get accustomed with. These eight weeks in
Amul were not only enriching but a great learning curve, where I learned how a big company
like Amul works, what routine they follow, what are their hierarchy structure, how they
successfully manage such a huge supply chain. Amul also taught me how to be a market
leader, what they have done to reach that position and to also maintain it for years and years.
As I conclude this project I would like to tell that Amul has great potential and with the help
of this research, I hope company can find out its drawbacks and can increase its market share
by rectifying its mistakes. People have believed in Amuls product always and they will
accept it also if effective actions are taken.

Bibliography
1. http://www.amul.com/
2. http://www.investorwords.co/6576/market_size.html
3.http://www.businessdictionary.com/definition/market-size.html
4. http://www.barodamunicipal.gov.in/content/city/stmt3.shtml

5. http://en.wikipedia.org/wiki/Feasibility_study#Other_feasibility_factors
6. http://www.businessdictionary.com/definition/feasibility-study.html

Annexure
Survey on consumer perception towards
Amul milk
1. which milk you consumed ?
(i)Pouch
(ii)Loose
(iii)Both
2. Are you satisfied with the milk you are consuming ?
(i)Yes

(ii)No

3. What do you like quality & taste , price, availability ?

4. Do you get milk pouch at doorstep , retailer ?
5. In pouch milk which brand do u prefer?
(i)Aamul
(ii)chitle
(iii)katra
j

(iv)gokul
(v)moth
er
(vi)dairy
(vii)maul
i

6. Why do u prefer this brand /due to

(i)Quality and taste
(ii)Price
(iii)Availability
7. If you buy AMUL milk pouch which pack you purchase?
(i)Gold
(ii)Taaza
(iii)Slim n trim
(iv)Cow