A

SUMMER TRAINING REPORT

ON

“A STUDY ON CONSUMER PREFERENCE LEVEL

REGARDING THE AMUL FLAVOURED MILK”

SUBMITTED TOWARDS FULFILLMENT

OF
BACHELOR OF BUSINESS ADMINISTRATION
(AFFILIATED TO CH. CHARAN SINGH UNIVERSITY MEERUT)
ACADEMIC SESSION
[2014-2017]

SUBIMITTED TO SUBIMITTED TO
UNDER THE GUIDENC OF; NIKHIL TYAGI
MR; MOHIT GUPTA BBA 6sem
COODINATER BBA

INISTIUTE OF MANAGEMENT AND RESEARCH

8 Milestone Delhi Meerut roads Ghaziabad 201206(up)

1
 DECLARATION

I, Nikhil tyagi student of (Institute of management research) Ghaziabad, Batch 2014-2017,

hereby declare that this summer training report entitled “A Study on Marketing strategy of

AMUL” in Milk Market in NCR Region” is the outcome of my own research and prepared

by me and the same has not been submitted to any other university or institute for the award

of any degree.

I also declare that the institute as well as the guide is not liable for any kind of

misrepresentation in the report.

DATE NIKHIL TYAGI

PIACE

2
 ACKNOWLEDGEMENT

It was a great honour to assign the project “A Study on marketing strategy of Amul,

in Milk Market in NCR Region”. I express my sincere thanks to MR. (Area

Manager) for giving me the opportunity to do training and to learn and upgrade my

skills in this esteemed company Throughout the course of this project, all of my

teachers have provided continuous support. The extensive academic advice and

suggestions provided by Mr.Mohit Gupta -(Faculty, IMR) has also ensured the

quality of this work. Finally, I would like to thank my friends. Their help in the final

stages and in the submission of this work was instrumental in helping me achieve

deadlines which would otherwise have lapsed. Their encouragement and assistance

cannot be underestimated.

NIKHIL TYAGI
BBA 6 SEM

3
 PREFACE

As an essential obligatory part of my course. This training report helped me in

getting the practical knowledge of the business environment.

During my research I got practical knowledge about strategies. And how to

work is carried out into in company in this report I have mentioned the role of
AMUL INDIA LTD.

Learning is a process, which continues through out the life. Basically project
work is the best way to practice what we have learnt. A project is a scientific
and systematic study of real issue or a problem intended to resolve the problem
with applications of management knowledge and skills into the application to
solve whatever problem comes in the organization.

An organization is a human grouping in which work is done for the

accomplishment of some specific goal, or mission. All the activities of any
enterprises are initiated and determined by the person who make up that
institute, plant, office, computer, automated equipment and all else that make a
modern firm uses are unproductive expert for human effort and direction of all
the task of management, managing the human component is the central and most
important task, because all else depend on how well it is done.

NIKHIL TYAGI

4
 TABLE OF CONTENTS
 B

 EXECUTIVE SUMMARY 6---7

 INDRODUCTION/INDUSTRY 8---11
 PRODUCT PROFIL 12---15
 COMPANY PROFILE 16---42
 INTRODUCTION TO PROBLEM 43---44
 OBJEECTIVEOF THE STUDY 45---46
 NATURE&SCOPE 47---48
 RESEARCH METHODOLOGY 49---53
 DATA ANALYSIS 54---74
 SWOT ANALYSIS 75---77
 FIDINGS 78---79
 LIMITATIONS 80---81
 SUGGESTIONS 82---84
 CONCLUSION 85---86
 BIBLIOGRAPHY 87---88
 QUESTIONNAIRE 89---95

5
Executive Summary

6
 Executive Summary

The project purports to decipher the preferences of consumers pertaining to the various
flavors of cool a new range of savory milk launched by amyl. We aim to analyze the success,
marketability and future growth prospects of amyl cool. We also intend to study the
spending habits and motivation of consumers for buying flavored milk.

Basically we intend to find out the most popular flavored milk in the market from our sample.
Milk as such are a very important part of the milk and dairy industry because milk sector is
largely unorganized. Here we will also look into the market trends in flavored milk over the
years.

For this a survey was conducted in Ghaziabad where respondents were asked to fill a
questionnaire. The data was collected and analyses to obtain conclusions.

This report carries an introduction of the company profile, detail of the methodology
followed detailed data analysis and the results so obtained with the variety of graphs along
with given.

7
INTRODUCTION
TO THE
INDUSTRY

8
 INTRODUCTION TO THE INDUSTRY

India is the world’s largest producer of dairy products by volume, accounting for
more than 13% of world’s total milk production, and it also has the world’s largest
dairy herd. As the country consumes almost all of its own milk production, India was
neither an active importer nor an exporter of dairy products prior to year 2000.
However, since the implementation of Operation Flood Programme, the situation
changed significantly and imports of dairy products reduced to very small quantities.
From 2001, India has become a net exporter of dairy products and after 2003 India’s
dairy import has dipped while exports have increased at a fast rate. Yet the country’s
share in global dairy trade still remains at minor levels of 0.3 and 0.4 percent for
exports and imports respectively. This is due to the direct consumption of liquid milk
by the producer households as well as the demand for processed dairy products that
has increased with the growth of income levels, which have left little dairy surpluses
for export. Nevertheless, India consistently exports specialty products such as casein
for food processing or pharmaceuticals. The Indian dairy sector is also different from
other dairy producing countries as India places its emphasis on both cattle and buffalo
milk. In 2010, the government and the National Dairy Development Board have
drawn up a National Dairy Plan (NDP) that proposes to nearly double India’s milk
production by 2020. This plan will endeavour to increase the country’s milk
productivity, improve access to quality feeds and improve farmer access to the
organised market. These goals will be achieved through activities that focus on
increasing cooperative membership and growing the network of milk collection
facilities throughout India.    Despite its huge production volume, India nevertheless
faces a milk supply gap due to increasing demand from a growing middle class
population. Estimation suggests that Indian dairy production is growing at a rate of
about four percent per year, yet consumer demand is growing at approximately
double that rate. Apart from the rapidly increasing demand for milk and dairy
products, other reasons such as the increased cattle feed cost and low availability of
dairy farm labour in the rural areas have also resulted in increase in the cost of
production. On the other hand, the strong pressure from EU to open up its market as
well as the proposed free trade agreement with Australia and New Zealand may also
put India’s dairy sector in the risk of being jeopardised. In order to maintain the
development of its dairy industry, focus needs to be placed on several areas. First,

9
cost of production has to be reduced through increasing productivity of animals,
improve animal health care and breeding facilities and management of dairy animals.
Second, Indian dairy industry needs to further develop proper dairy production,
processing and marketing infrastructure, which is capable of meeting international
quality requirements. Third, India can focus on buffalo milk based speciality
products, such as Mozzarella cheese, in order to meet the needs of the target
consumers.
INDIAN DAIRY INDUSTRY IN 1940s
Iferior quality of locally marketed milk
Heavy dependence on imports
Unorganized production and processing
The rich dairying heritage being eroded

FORMATION OF NATIONAL DAIRY DEVELOPMENT BOARD

The National Dairy Development Board was created to promote, finance and support
producer-owned and controlled organizations. NDDB's programmes and activities
seek to strengthen farmer cooperatives and support national policies that are
favourable to the growth of such institutions.  Fundamental to NDDB's efforts are
cooperative principles and the Anand Pattern of Cooperation.

DAIRY COOPERATIVES
Dairy Cooperatives account for the major share of processed liquid milk marketed in
the country. Milk is processed and marketed by 170 Milk Producers' Cooperative
Unions, which federate into 15 State Cooperative Milk Marketing Federations. Liquid
milk it accounts for 90 per cent of the revenue of cooperatives. The MNCs and private
players, which were earlier only into milk products, are now seriously getting into the
liquid milk sector. They realise that money is in liquid milk. Whoever has access to
cheap milk eventually wins the battle in the products business. You can go and buy
standard marketing, brand building expertise.

The challenge for cooperatives is not to be competitive to export but to be competitive

to expand their market (for liquid milk) which has a limited purchasing power. Those
that are buying milk today are not going to be buying much more. Cooperatives have
to bring the price down for those who cannot afford it. And only if they do it will it
ensure that imports don’t come in. The real challenge is how to bring prices down,

10
how to reduce costs at the village level, in areas like transportation. Every paisa now
counts.

At the heart of the Indian dairy revolution stands the Indian farmer with two to five
animals who produces some of the cheapest milk in the world by feeding his animals’
mostly agricultural waste like straw. If he expands his operations and herd and starts
buying costly feed he will lose his competitiveness. So how will milk production rise
without raising costs? By taking the cooperative dairy revolution to where it is still
weak, the east and north-east of the country. This will help fight poverty there, raise
their own purchasing power for milk and keep feeding the dairy sector with a rising
supply of liquid milk at the globally competitive Indian costs for another ten years. If
you wish to run your business professionally and competitively you have to first
benchmark your costs and stabilised quality at a very high level. That’s the tough part.
Then you hire a brand consultant, evolve a brand strategy and get marketing experts
to run the promotions and do the selling. The key elements are an expanding supply of
cheap milk and attention to quality.

Over the years, brands created by cooperatives have become synonymous with quality
and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras
(Rajasthan). Nandini (Karnataka), Milma (Kerala) and Ghoul (Kolhapur) are among
those that have earned customer confidence.

Some of the major Dairy Cooperative Federations include:

Andhra Pradesh Dairy Development Cooperative Federation Ltd (APDDCF)

Bihar State Cooperative Milk Producers’ Federation Ltd (COMPFED)
Gujarat Cooperative Milk Marketing Federaation Limited (GCMMF)

11
PRODUCT PROFILE

12
PRODUCT PROFILE

LIST OF PRODUCTS:

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozarella) Cheese

Amul Shredded Pizza Cheese

Amul Emmental Cheese

UHT Milk Range:

Amul Taaza 3% fat Milk

Amul Gold 4.5% fat Milk

Amul Slim-n-Trim 0% fat milk

Amul Chocolate Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

Amul Taaza Double Toned Milk

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6 months)

Amul Infant Milk Formula 2 ( 6 months above)

Milk Powders:

Amul Full Cream Milk Powder

Amulya Dairy Whitener

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Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shanty Standardized Milk 3% fat

Amul Smart Double Toned Milk 1.5% fat

14
 DIFFERENCE BETWEEN AMUL KOOL AND GAGAN

 Constituents  AMUL KOOL  GAGAN

ENERGY  184 Cal.  180 Cal.

COLOUR &  NATURAL  SYNTHETIC

FLAVOUR IDENTICAL FOOD COLOURS
FLAVOUR & ADDED
FLAVOURS
MILK USED  TOND MILK  DOUBLE TOND
MILK

TYPES OF MILK USED

 Variation in different types of ilk is due to the difference in their Fat and SNF content.

 TYPE OF MILK  FAT %  SNF %

 DOUBLE TOND MILK  1.5  9.

 TOND MILK  3.0  8.5

15
COMPANY PROFILE

16
 GUJRAT COOPERATIVE
Milk marketing federation company profile

GCMMF; an overview Gujarat cooperative milk marketing federation (GCMMF) is India’s

largest food product marketing organization it is a state level apex body of milk cooperative
in gujrate which aims to provide remunerative return to the farm & also serve the internet of
consumers by providing quality product which are good value for money

 No. of Producer Members:  2.36 million

 No. of Village Societies:  11,333
 Total Milk handling capacity:  6.9 million Litres per day
 Milk collection (Total – 2008-09):  2.81 billion Litres

 Milk collection (Daily Average  5.97 million Litres

2009-10):

 Milk Drying Capacity:  511 metric Tons per day

 Cattle feed manufacturing Capac-  2340 Mets per day
ity:

AMUL KOOL :

‘Nature’s finest flavoured milk is here’

GCMMF launched Amul Kool in Delhi and NCR in 2004 to cater the demand of con-
sumers and to fill in the gap between demand and supply. It reaches consumers within
hours of it being packed at the right temperature to ensure that it retains all its natural
goodness.

Treasure of Natural Goodness

Amul Kool is highly nutritious and contains proteins, minerals, carbohydrates and vi-
tamins i.e. SNF as it is commonly called. Amul Kool also contains natural fat and
natural SNF as it is from natural source and does not contain milk powder.

17
Quality Standards

Amul Kool strictly conforms to quality standards of Prevention of Foods & Adultera-
tion Act (PFA). This means when one buy Amul Kool he/she is sure to get:

Nature’s perfect food for the health of your family

Milk which has longer because of its superior bacteriological quality and the state of
the art processing technology.

The right quantity as mentioned on the packs

Consistent quality and ample quantity throughout the year even during festive and
lean session.

The accurate taste which is mentioned on the bottle or pack.

  FAT  ENERG  QUANT  MRP

Y ITY per

 Amul  9.7%  184 cal.  200ml.  Rs.

Kool 10/-

 Gava  8.9%  180cal.  200ml.  Rs.

n 10/-

 NES  -----------  200cal.  200ml.  Rs.15

TLE /-

GCMMF – BUSINESS PHILOSOPHY

To serve the interests of milk producers.

To provide quality products to consumers – value for money.

INDUSTRY STANDING

India’s largest food products marketing organization with an annual turnover of over

18
Rs. 2700 crores.

Market’s popular brands Amul and Sagar.

India’s largest exporter of dairy products.

India’s largest “cold chain” network.

No.1 market share holder in India for Butter, Cheese, Ice-cream, Dairy Whitener,
Condensed Milk, UHT Milk, and Baby Food.

Presently marketing pouch liquid milk in five states namely, Gujrat, Maharashtra,
Chhattisgarhi, Rajasthan, Delhi and Madhya Pradesh.

OUR VALUES

Customer Orientation.

Commitment to Producers.

Belongingness.

Co-operation.

Pride in Organisation.

Employee Satisfaction.

Integrity.

Excellence.

Leadership.

Quality..

MISSION STATEMENT

We, at GCMMF, Endeavour to satisfy the taste and nutritional requirements of the
world, through excellence in marketing through our committed team.

Trough co-operative network, we are committed to offering quality products that pro-
vide best value for money.

19
GCMMF – JOURNEY 2010

GCMMF will be an outstanding marketing organization with specialization in mar-

keting of food and dairy products, both fresh and long life, with customer focus and
information technology integration. The network would consist of over 100 sales of-
fices, 7500 stockiest covering at least every talker headquarter town, servicing nearly
n1 million retail outlets with a sales turnover of Rs.10,000 crores (100 Billion), and
serving several cooperatives.GCMMF shall also create markets for its products in the
neighbouring countries.

Facts on 30th Annual General Body Meeting

Adopted at their meeting held on 8th June, 2004 for presentation at the
30thAnnual General Body Meeting.

As Amul was founded on a sound business model: providing quality products to

consumers at an affordable price. The Pundits have described our model as
"value for money" and it has been adopted by a number of companies. While
imitation may be flattery, most other organisations fail to understand that "value
for money" is not just about low prices - it means offering the best quality
products at the most reasonable price..

MILK PROCUREMENT

Total milk procurement by Member Unions averaged 51.13 lakh kilograms per
day, a marginal decline from 52.35 lakh kilograms per day, achieved in 2002-
2003. However, the good monsoons experienced during last year and the better
procurement prices on offer are expected to encourage higher milk production
and procurement in the current year.

SALES

During the year, your Federation's sales registered a growth of 5 % increase to

reach Rs. 2,881.96 crores including consignment sales of Rs.62.95 crores. The
dairy line grew by about 18% despite the loss of a sizable edible oil business. In
2004-05, the sale of Amul Milk in pouches increased by 34 % in value terms. A
notable development in the area of liquid milk in pouches has been the successful
launch of Amul Milk in the Delhi market during Nov. 2003. Within under 60

20
days of launch, achieved sales of 1 lakh liters per day. UHT Milk has grown in
both value and volume terms by 60 %, which shows that it has really come upon
the high growth stage. Despite intense competition, sales value of Amul Butter
grew by 19 % and that of milk powders has firmed up further. The sales of the
Amul Cheese range increased by 13 %. Products like Flavoured Milk, Amul
Fresh Cream, Pander, Mithaimate, Softy Mix, and fresh curd demonstrated their
potential to become dominant brands

DISTRIBUTION

During the year, the major development on the distribution front was the devel-
opment 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 us to develop synergies among all our product
lines and to leverage these highways to introduce and distribute new products as
per market demand. I take pleasure in declaring that no other organization in In-
dia has been able to develop this kind of channel synergy so far..

After Distributor Salesmen in the previous year and Distributors in the year be-
fore last, it was the turn of the top Retailers across the country to participate in
the Amul Yatra Programme. It is conducted by your Federation to bring our
channel partners face to face with our 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 Boise, the number of
Milk Area Delivery Agents has increased. 95 Milk Area Distribution Agents also
visited Anand for Amul Yatra. Distributors have further enhanced their infra-
structures in terms of installation of cold storage arrangements, enhanced bank
guarantee limits with Federation and introduced good quality delivery vehicles.
An objective evaluation was done in the form of distributor renewal and Perfor-
mance appraisal.

21
INFORMATION TECHNOLOGY INTEGRATION

The Federation has further advanced our technological leadership by implement-

ing a Virtual Private Network (VPN) with secured fiber optic connectivity which,
with deployment of the "Amul Online ERP" System, will facilitate electronic
transactions between member unions and the Federation offices, providing a
seamless and smooth flow of information that enhances operational efficiency.
The Federation now enjoys a significant advantage in rapid reaction to changing
business demands.

Your Federation is bolstering our 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 we are a cooperative, and proud of
it. This identity gives us a vital business advantage and facilitates Amul brand
penetration across the world. It also strengthens our co-operatives by bringing our
members together and closer to consumers.

COOPERATIVE DEVELOPMENT PROGRAMME

During the last four years, Member Unions have implemented an Internal Con-
sultant Development (ICD) intervention focused on developing leadership among
member producers, helping them to better manage their dairy business. During
the year, Member Unions continued to implement the module on Vision Mission
Strategy (VMS) for primary milk producer members and Village Dairy Coopera-
tives. Facilitated by specially trained consultants, 1,073 Village Dairy Coopera-
tive Societies (VDCS) have conducted Vision Mission Strategy Workshops, and
have prepared Mission Statements and Business Plans for the next five years. The
VMS module has prompted milk producers to initiate activities at villages that
have far-reaching effects on the milk business.

The success of the program has led to Member Unions focusing on implementing
this VMS module and developing Business Plans for all VDCS, thus strengthen-
ing them to face the fierce competition ahead.

With the objective of encouraging professional management by Milk Producers

and dairy cooperative societies, Member Unions have initiated Members' Busi-
ness Development Programme (MBDP). During the last three years, 2,483 vil-

22
lages and 1,53,108 milk producers participated in the programmer. This has re-
sulted in introduction of new scientific animal husbandry management methods
on a significant scale.

A Chairmen and Secretaries' Orientation Programme is being conducted at

Mother Dairy, Gandhi agar. Member Unions, supported by your Federation, carry
out this program to increase awareness regarding the dairy industry scenario and
to develop leadership skills among Chairmen and Secretaries. During the year,
5,797 chairmen and secretaries from 2,944 Village Dairy Cooperative Societies
participated in the program.

An ongoing emphasis of Member Unions has been to encourage increased

women milk producers' participation in their Dairy Cooperative Societies. To de-
velop and enhance leadership skills and qualities, Member Unions organised
three Self Managing Leadership (SML) workshops at Prajapita Brahmakumaris,
Mount Abu which attracted the participation of 3,100 women resource persons
along with the Chairmen and Secretaries of 750 VDCS.

WHAT THE FUTURE HOLDS

As there is a steady increase in consumer expectations. Product and service qual-

ity is rapidly becoming the minimum threshold for consumer acceptance. To
achieve and maintain competitive advantage, innovation in product design and
delivery are increasingly essential. Innovation must now define us as an organi-
zation. There must innovate at each stage in our value chain - production, pro-
curement, processing, marketing and branding.

Innovation cannot be mandated or forced out of people. It is everywhere a

function of the quality of people and environment. Need to have enough skilled
people working in a self-actuating environment to produce innovation. In these
times of increasing market opportunities, to devise more effective ways of
attracting and retaining skilled human resources. It is to be realized that just as
the market is expanding for our products, so it is opening up new opportunities
for the skilled people that we need to tap the market. Further, it does not suffice
merely to retain skilled human resources. It is also necessary to provide them

23
an adequately self-motivating work environment that draws out the best out of
them on a sustained basis.

From the year 1994, our unions have been engaged in the practice of third party
validation of its practices. Since then, we have been awarded the ISO 9002:2000,
the HACCP, the ISO 14001 and similar marks of our excellence in milk pro-
curement and processing. The importance of standardization of our village so-
ciety election processes lies in their instrumentality in throwing up genuine and
visionary leaders. It determines the future of the cooperative movement.

24
THE BIRTH OF AMUL
Linked to the freedom movement of India.
Founded in 1946 to stop the exploitation of milk producers at the hands of middle-
men.
A Co-operative movement – member control on milk production, processing and
marketing.
A humble beginning with two village societies and 247 litres of milk.

THE GROWTH OF AMUL

Co-operative movement spread like wild fire in the state.
Rapid increase in milk procurement.
Identification of Bombay liquid market.
Investing in manufacturing plants that produce milk powder, butter, cheese and con-
densed milk.
Launch of “Amul” as a brand.

FORMATION OF GUJARAT COOPERATIVE MILK MARKETING

FEDERATION LTD [GCMMF]

Formed 1973
No. of Cooperative Unions 12
No. of Dairy plants 19
Capacity 6,595 Thousand Litres per Day

It is Apex Marketing Federation of 12 District Milk Unions in Gujrat to operate own

marketing and distribution networks pan India and abroad

Address:
Gujarat Cooperative Milk Marketing Federation Ltd., Amul Dairy Road Anand, Guja-
rat, India 388 001, Tel: +91-2692-241621 & 23 web : www.amul.com

25
STRUCTURE OF SALES AND MARKETING DEPARTMENT

MANAGING DIRECTOR

HEAD OFFICE INCHARGE

MANAGER (SALES)

DY. MANAGER (SALES)

ASSTT. MANAGER (SALES)

SENIOR EXECUTIVE

EXECUTIVE

JUNIOR EXECUTIVE

FIELD SALES REPRESENTAVTIVE (FSR

26
AMUL IN DELHI/NCR REGION:
Delhi National Capital Region (NCR), among the biggest milk markets in the country,
is dominated by Mother Dairy currently. Amul and NDDB's non-compete agreement
has prevented the former from launching its liquid milk in the Delhi market till 2003.

With the non-compete agreement having run out this year, Amul fresh milk was
launched in Delhi last month in two variants — full cream and toned — priced at par
with that of Mother Dairy at Rs 18 and Rs 14 per liter, respectively. Amul is bringing
its milk into Delhi through one of its district co-operative unions, the Gujarat-based
Methane Union. The milk will be packed at Quality Dairy in Ballabgarh, leased out to
Amul for this purpose. Amul will use the same distribution network as butter and
cheese to retail Amul Milk in Delhi. According to Mr. R.S. Sochi, Alum’s marketing
head; Amul will not use skimmed milk powder in its milk.

GCMMF officials say the company's milk capacity has already touched 80,000 liters
per day (LPD) and have plans to take it to 3 LPD. Amul is now selling through 2,500
retail outlets and will increase this to 7,500 apart from covering outlets which are
selling Amul butter.

The Delhi market comprises 40 lakh liters currently and is dominated by Mother
Dairy, which sells 10 lakh LPD. The other organised sector players are Pares Dairy,
which sells 3 lakh LPD, state-owned Delhi Milk Scheme (2.5 Lakh LPD), Gopaljee
(1-1.5 Lakh LPD) and Britannia 30-40,000 LPD.

In just a fortnight, Amul milk has taken the Indian capital by storm, rapidly eating
into the market share of long time players like Mother Diary and Paras. Who cares if
it was rivalry or business strategy that made the Gujarat Cooperative Milk Marketing
Federation (GCMMF) enter the capital with Amul milk to take on state-owned
Mother Dairy in its home turf? From the response, Delimits seem to be lapping up
Alum’s pouches of full cream and toned milk in unimagined quantities.

In just two weeks of entering the market, Amul is beginning threaten the virtual mo-
nopoly of Mother Dairy and Pares. “We did not expect to reach 70,000 litres daily
supply in little over two weeks,” said R.S. Hanna, a GCMMF official here.

“We had expected to go up gradually and had made arrangements for pasteurisation

27
and packaging of just 60,000 litres per day at Quality Dairy’s unit in Faridabad, which
we have leased,” Hanna said. But in less than one week, Amul notched the mark of
50,000 litres per day. GCMMF is bringing milk to Delhi through one of its district co-
operative unions, located at Methane, around 700 km from the capital.

The fresh milk is transported through insulated containers of between 12,000 to

20,000 litres capacity at two degree centigrade. After the 24 to 30 hours journey by
road, the milk is processed and packaged at Meshing before being distributed in the
Indian capital. “The packaged milk is being sold through 2,500 retail outlets, which
we hope to raise to 7,500 as we soon as we are able increase the supplies to 100,000
litres.

“In two months our target is to raise supplies to 200,000 litres per day,” he added. The
official admitted that the idea of entering the Delhi market had originated in August
when the state and central governments approached the GCMMF to help tide over an
acute milk shortage. “Having helped to bridge the demand supply gap, we decided to
come in with fresh milk supply, which does not contain any milk powder and is
creamier and of richer quality compared to most other milk supplied in the city be-
cause it has more fat and solid non-fats like protein and minerals,” said Khanna. At
over five million litres a day, Delhi is one of the biggest markets for milk in the coun-
try.

28
CHAIRMAN'S SPEECH
38TH ANNUAL GENERAL BODY MEETING HELD ON 31ST MAY 2012

GENTLEMEN,

I believe that all of us present here are blessed to be part of one of the most
ambitiously idealistic movements witnessed by human civilization-the
movement called cooperation. Cooperation is first and foremost a philosophy. It
is a faith that human beings are capable of transcending narrow self interest to
work together to achieve a common and higher goal. However, the magic of
cooperation is seen when this philosophy is translated into business and
economic success.

There are three ways in which a nation may establish policies to allocate its
resources. First, following the doctrines of Adam Smith, the corporate sector
may be given a free hand in a nation's economy so that nothing but market
forces determines the fate of all socio-economic segments. All of us know,
however, that when a nation's fate is left to market forces, the economy becomes
skewed in favors of the rich, leaving the poor to the mercy of an unkind fate.

Second, a nation may entrust all its resources to the public sector, the purel ap
proach. But all of us have witnessed the debilitating inefficiencies and lack of
accountability that are inherent in this system.

The third method in which the nation can create and distribute wealth is through
cooperation. The performance of India's milk cooperatives -- and particularly
those in Gujarat -- provides compelling evidence of the superiority of

29
cooperation over unadulterated capitalism, or socialism.

We believe that through cooperation we can create and deliver value to both the
producer and the consumer.

Cooperation avoids the inequities of unadulterated capitalism and the

inefficiency and unaccountability of the socialist system - while serving as an
instrument of development. It is not a coincidence that throughout the world,
cooperation has

Proven to be the first choice of those involved in the primary sectors, especially
agriculture and dairying. It is in the fitness of things as both agriculture and
dairying- involving mass production and mass consumption - provide
livelihoods to millions of common people in most countries of the world.

However, for a cooperative to deliver value, it needs to remain true to its values,
be clear in its mission and run as a highly competitive business. It should be able
to create and seize opportunities, to react decisively to events, to anticipate and
act to take advantage of future trends. To serve its members - which is the
reason why cooperatives exist - every cooperative must have obtained the
maximum advantage from procurement, processing and most importantly,
marketing and branding. Every cooperative needs to strengthen its core
competencies because unlike in the private corporate and the public sectors, they
cannot be outsourced without risks. The 'Amul Pattern' of cooperatives has been
a model that has stood the test of time and adversities with flying colors.
Developed over more than a half century the Amul approach has been
successfully replicated in other states over the last quarter of a century. This
model has made an enormous difference in the lives of millions of farmers,
bolstering their livelihoods and offering steady income in regions where the best
part of agriculture is still rain fed and a gamble on the monsoons.

Amul is a matter of faith. It is faith that has proven to be an instrument of

development that has given a new dimension to the practice and discourse of
development in the country. It is a living example of the truth that farmers
should learn to be independent. They should manage their own affairs without
interference. As Nehru once said, they will make mistakes while they are

30
learning, but these are only stepping-stone to success as manifested in the
experience of Amul.

However, despite the proven success of the Amul Model, it is being threatened
by unsolicited attention. It is common knowledge that there is a movement afoot
for creation of joint venture companies with various state cooperative
federations. The putative objective of these ventures is to offer marketing
support to the so-called 'weak' federations. For this purpose, it is deemed
necessary to offer a minority stakeholder status to the client federations, while
reserving the majority stakeholder status for the NDDB subsidiary. For one who
has been associated with and worked for cooperatives for most of his life, it
saddens me to witness this colossal blow to the philosophy and practice of
cooperation. The unkindest cut of all is that it should come from an organization
that was meant to nurture the cooperative movement in India. You may take my
word for it that while it is extremely arduous and takes years of dedicated hard
work to create a successful organization or model, it is very easy to whimsically
destroy the same.

I feel hard pressed to find any justification for the trust that the authorities are
bestowing upon the new NDDB model. The key risk in the joint venture model
is that it will dismantle the existing marketing federations all over the country. If
the Joint Venture model fails, then there will be no organization or skill left in
the farmers' organizations to fall back on for the marketing function. Thus, the
experiment with joint ventures is well poised to emasculate the healthy
cooperative movement and create dependents out of self-sufficient farmers. The
weak need to be protected and nurtured not converted into parasites.

I believe that the forgoing observations prove beyond doubt the suspect
architecture of the joint venture company concept.

The silver lining in all the recent events is the continued good showing by
your Federation. The success of the Gujarat Cooperative Milk Marketing
Federation in not only defending its market, but in taking away market share in
almost all dairy products categories from the best of the Multi National
Corporations shall act as beacon to other cooperatives in these troubled times.

31
I now present to you your Federation's Annual Report and Audited Accounts for
the year 2002-2003.

MILK PROCUREMENT

The total milk procurement by our Member Unions reached an average of 52.35
lakh kilograms per day, a 10.6 percent increase over the 47.32 lakh Kilograms
per day, achieved in 2001-2002. Peak procurement touched a high of 67.52 lakh
kilograms in a day. This is an all time record of milk procurement.

SALES

During the year, your Federation's sales registered a growth of 17.5 percent
increase to reach Rs. 2,745.74 crores including consignment sales of Rs. 404.53
crores. In addition your Federation coordinated Rs. 34 crores in product sales to
the Defence services. This year, Amul ice cream achieved record sales, with
volume growth by 29 per cent. Sale of Amul Milk in pouches increased by
seven percent in value terms. UHT Milk has grown in volume terms by 56
percent, which is a very encouraging market response. Amul and Sagar brand
pure ghee sales in volume increased by 27 per cent over the previous year.
Despite intense

Competition and a market recession, sales of Amul Butter grew by seven

percent and milk powders remained steady. The sales volume of the Amul
Cheese range increased by 15 per cent. This is particularly pleasing as it
demonstrates our ability to resist MNC competition. New products like Paneer,
Mithaimate, Softy Mix, and fresh curd demonstrated their potential to become
dominant brands in the coming few years.

DISTRIBUTION

Amalgamation of the distribution networks carried out in the previous year

continued to yield results in terms of vast improvement in distributor
infrastructure including cold rooms, computers, bank guarantees and deep freeze
storages. Our Amul Yatra programmer has already covered 80% of the
distributors and 60% of the distributor salesmen, who carry the philosophy of all
that Amul stands for, to the market. Over 200 Amul Quality Circles continue to

32
be steered month after month with a national perspective and local focus. The
annual business plan for each product is now broken up town-by-town and
distributor-by-distributor, thus making the entire planning process thoroughly
focused.

EXPORTS

I am pleased to inform you that this year your Federation's export turnover has
grown by 17 % in terms of volume. As you have witnessed, European Union
declared heavy subsidies during last year and as a result international prices
have remained at very low level as compared to previous year. As a result, the
export turnover in value terms has declined by 6 % in spite of good growth in
volume.

We are proud to inform that our Long Life milk has been very well accepted in
the UAE and Singapore markets. In the International Market we have grown at a
rate of 34% in consumer packs reflecting growing

Consumer faith in the Amul brand. We have opened a warehouse in Dubai to

better serve customers in the region.

33
 COMPETITORS OF AMUL :

Pares (Veda Ram & Sops)

Madhusudan

Mother Dairy

Amrit Food

Goalie (G.K.Dairy)

Unman(J.K.Dairy)

Param

Ramlal

Madhuban

MOTHER DAIRY
Mother Dairy - Delhi was set up in 1974 under the Operation Flood Programme. It t is
now a subsidiary company of a wholly owned company of the National Dairy De-
velopment Board (NDDB). Mother Dairy sources its entire requirement of liquid milk
from dairy cooperatives. Mother Dairy sources fruits and vegetables from far-
mers/growers associations. Mother Dairy also contributes to the cause of oilseeds
grower cooperatives that manufacture/ pack the Dharma range of edible oils by under-
taking to nationally market all Dharma products.

34
 Mother Dairy's constant endeavor to:
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; uphold institutional structures that empower milk producers
and farmers through processes that are equitable. At Mother Dairy, processing of milk
is controlled by process automation whereby state-of-the-art microprocessor technol-
ogy is adopted to integrate and completely automate all functions of the milk
processing areas to ensure high product quality/ reliability and safety. Mother 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.

Mother Dairy markets & sells dairy products under the Mother Dairy brand (like Liq-
uid Milk, Dahi, Ice Creams, Dairy Whitener 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 it's sales and distribution networks, for marketing food items.
In times to come, Mother Dairy shall strive to become a leading
player in the food industry in India.

 Type of Milk  Milk Fat  SNF

 Double Tonned  1.0%  9.0%

 Full Cream  0.5%  8.7%

 Skimmed  6%  9%

35
AMUL GOLD MILK

Amul Gold is Long Life standardised milk. It is fresh and only fresh milk, which
has been processed with a technology called UHT (Ultra High Temperature),
hence also known as UHT milk. Notwithstanding popular misconception, UHT
technology does not involve any use of preservatives. The UHT treatment en-
sures zero microbial activation, while preserving the maximum flavour, taste,
and nutritional value. The aseptic packaging system protects the product from
air and light and guarantees a long shelf life of 180 days without refrigeration.

 

Amul Gold contains 4.5% fat and 8.5% SNF minimum and is ideal for making
sweet dishes (like kheer, payasam etc.) and for setting curds. It is also ideal for
drinking straight from the pack for kids and adolescents who simply love its
creamy taste sans the inconvenient cream layer! Amul Gold comes in conve-
nient 1 liter and 500ml packs.

36
AMUL LITE SLIM AND TRIM MILK

Amul Lite is Long Life skimmed milk. It is fresh and only fresh milk, which has
been processed with a technology called UHT (Ultra High Temperature), hence
also known as UHT milk. Notwithstanding popular misconception, UHT tech-
nology does not involve any use of preservatives. The UHT treatment ensures
zero microbial activation, while preserving the maximum flavour, taste, and nu-
tritional value. The aseptic packaging system protects the product from air and
light and guarantees a long shelf life of 180 days without refrigeration.
Amul Lite Milk is a unique offering to health conscious milk lovers. With vir-
tually zero fat content, nil cholesterol and 8.7% SNF minimum, it gives you all
the proteins, vitamins and minerals of natural milk without your having to im-
bibe unnecessary flab in the deal! Amul Lite Milk comes in convenient 1 liter,
500ml and 200ml pack

37
AMUL TAAZA DOUBLE TONED MILK

Amul Taaza is Long Life double toned milk. It is fresh and only fresh milk,
which has been processed with a technology called UHT (Ultra High Tempera-
ture), hence also known as UHT milk. Notwithstanding popular misconception,
UHT technology does not involve any use of preservatives. The UHT treatment
ensures zero microbial activation, while preserving the maximum flavour, taste,
and nutritional value. The aseptic packaging system protects the product from
air and light and guarantees a long shelf life of 180 days without refrigeration.

Amul Taaza contains 1.5% fat and 9% SNF minimum and is ideal for tea and-
coffee whitening and for setting curds. It is also just right for drinking straight
from the pack for those who would like to enjoy the taste the goodness of natu-
ral while avoiding the hazards of too much fat! Amul Taaza comes in conve-
nient 1 liter, 500ml and 200ml packs

38
GUJARAT COOPERATIVE
MILK MARKETING
FEDERATION
GCMMF: AN OVERVIEW

39
 GUJARAT COOPERATIVE MILK MARKETING
FEDERATION GCMMF: AN OVERVIEW
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest
food products marketing organization. It is a state level apex body of milk coop-
eratives in Gujarat which aims to provide remunerative returns to the farmers
and also serve the interest of consumers by providing quality products which are
good value for money.

 MEMBERS:
 12 district cooperative milk producers' Union
 No. of Producer Members:
 2.28 million
 No. of Village Societies:
 11,132
 Total Milk handling capacity:
 6.7 million litres per day
 Milk collection (Total - 2002-03):
 1.86 billion litres
 Milk collection (Daily Average 2002-03):
 5.08 million litres
 Milk Drying Capacity:
 510 metric Tons per day
 Cattle feed manufacturing Capacity:
 1450 Mets per day

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 40,000 tonnes a year in 2003. No other brand

40
comes even close to it. All because a thumb-sized girl climbed on to the hoard-
ings 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! Eve-
rywhere we went somehow or the other the campaign always seemed to crop up
in our conversation."

For 35 odd years the Utterly Butterly girl has managed to keep her fan followin-
gintact. 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 com-
pliment to the butter came when a British company launched a 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.

One of the first Amul hoardings 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 im-
portant Amul touch. India looked forward to Amul's evocative humour. If the
Naxalite movement was the happening thing in Calcutta, Amul would be up
41
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.
Amul's point of view on the MR coffee controversy From the Sixties to the Ni-
neties, 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 Alum’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. [Our Members Unions:
Sumulonline:com | Village Societies]

42
INTRODUCTION
TO THE PROBLEM

43
 INTRODUCTION TO THE PROBLEM
The company is not able to increase its market share in case of flavoured milk
because of lack of awareness level and competition in the market. Thus this
topic was assigned to me to study consumer preference level regarding the Amul
Flavoured milk.

44
 OBJECTIVE
OF THE STUDY

45
 OBJECTIVE OF THE STUDY

 To analyze the market share of amul flavoured milk.

 To analyze the competitive moves of amul milk with regards to other milk
brands in industry.

 To analyze the growth potential of amul flavoured milk with respect to fla-
voured milk industry.

46
SCOPE OF THE
STUDY

47
 SCOPE OF THE STUDY
This study will help the company to increase the market share in the segment of fla-
voured milk and also the increase in awareness level about the flavoured milk.

48
RESEARCH METHODOLOGY

49
 RESEARCH METHODOLOGY
In simple terms methodology can be defined as, it is used to give a clear cut idea on
what the researcher is carrying out his or her research. In order to plan in a right point
of time and to advance the research work methodology makes the right platform to
the researcher to mapping out the research work in relevance to make solid plans.
More over methodology guides the researcher to involve and to be active in his or her
particular field of enquiry. Most of the situations the aim of the research and the
research topic won't be same at all time it varies from its objectives and flow of the
research but by adopting a suitable methodology this can be achieved. Right from
selecting the topic.

Research methodology drives the researcher in the right track. The entire research
plan is based on the concept of right methodology. More over through methodology
the external! environment constitutes the research by giving a depth idea on setting
the right research objective, followed by literature point of view, based on that chosen
analysis through interviews or questionnaires findings will be obtained and finally
concluded message by this research.

50
RESEARCH DESIGN USED IN PROJECT

In this research report of a study on marketing strategy of Amul, in milk market in

NCR region. I used descriptive research design.

Descriptive research studies are those studies which are concerned with describing the
characteristics of a particular individual, or of a group, studies concerned with specific
predictions, with narrations of the fact and characteristics concerning individual,
group or situations are examples of descriptive research studies.

SAMPLING DESIGN
In this research report a study on marketing strategy of Amul, in milk market in NCR
region. I use non probability sampling i.e.; Convenience sampling. I choose my sam-
ple according to my convenience and which are relevant to my research project.

CONVENIENCE SAMPLING

Convenience sampling refers to the non probability process by which a scientist gath-
ers statistical data from the population. This form of selection is done based on the
ease of gaining the statistical data. Rather than gathering a more accurate array of data
from the population, the researcher simply gathers data from people nearby. A
researcher might go to a nearby mall, or street comer to gather data. This form of data
collection works for some areas of study, but researcher bias may result in inaccurate.

51
 Samplings Areas   Delhi & Ghaziabad (Sahibabad)

 Sampling   Non-Probability Sampling

technique  Convenience sampling
 Sample Size   100 Customers + 100 Retailers

 Primary Data   Responses through questionnaires

 Conducted personal interviews with the
respondents.
 Secondary Data   Websites .
 News papers

SAMPLE SIZE-
100 Customer & 100 Retailer from National Capital Region (NCR).

METHODS OF DATA COLLECTION

The data was collected both with the help of primary as well as
secondary sources.

PRIMARY DATA

For primary data, I proceeded with the drafting of the questionnaire for consumers.I
choice open end and multiple question in my project report And it was handed
personally by me to the respondents to be analyzed, questionnaire was of multiple
choices and the pattern of questions was as simple as possible. With every question,
multiple choices were given and respondents were asked to select one of them. The
questionnaire technique was structured and not disguised as the questions followed
one pattern and reason behind the questionnaire was stated properly. All the questions
were directly related to the subject.

SECONDARY DATA

52
Secondary data was also collected personally by me, which the company has
furnished for the general public. The secondary data was gathered with the help of
various magazines, newspapers, journals, brochures and also through the internet.

53
DATA ANALYSIS

&

INTERPRETATION

54
 DATA ANALYSIS & INTERPRETATION
 QUESTIONNAIRE FOR CONSUMERS
 Sample Size: 100 consumers
1. Which Flavoured milk do you buy?
o A. Branded : 60
o B. Loose : 26
o C. Both : 8

BOTH

8%

26% 1
LOOSE 2
3
66%

BRANDED

INTERPRETATION
The area covered Ghaziabad is in the vicinity of New Delhi, the capital of India;
branded things and even fresh milk is in great demand among literate consumers.
People are conscious of hygienic products and people of Rs. 10000+ income group
have a general inclination for branded packaged Flavoured milk because it is believed
that loose milk is generally not safe to consume.
We found that 66% of our respondents use branded milk and 26% people use loose
milk.
Moreover 8% of respondents have indicated that they use both branded and loose
milk.

55
2. Do you know that Amul has launched its flavoured milk in bottle
& tetrapack?
o Yes : 65
o No : 35

NO, 35%
1
2
YES, 65%

INTERPRETATION
We found that people are aware of Amul’s flavoured milk and Amul has good
reputation among the consumers. GCMMF Ltd., is considered to be one of the best
companies in the dairy products category in FMCG sector.
When GCMMF Ltd declared that it is going to launch flavoured milk in Delhi the
consumers accepted it in leaps and bound. People perceive Amul as the triumph of
indigenous technology.
People perceive Amul’s dairy product as Nature’s perfect food for the health of their
family.

56
3. How do you come to know about Amul Kool?
o T.V. : 25
o Banners : 23
o Radio : 5
o Newspaper : 15
o Friends : 23
o P.O.P. : 9

P.O.P, 9% T.V.ADD.
25%
Friends,
23%

NEWSPA Radio, 5% BANNER

PER, 15% S 23%

INTERPRETATION
It is very important for a company to know that medium of promotion is most
effective on the consumers and which is reachable to the consumers. Regarding this
15% people says that they came to know about Amul Kool through newspaper. Those
who got the information from Banners 23%, radio 5%, t.v.25% , friends 23%, pop 9%
.Advertisement has emerged as the best way to reach way to reach into the customer
mind. Means in today era advertisement plays important role in building image. The
collected by us is also says that advertisement is big factor for spreading the
awareness of consumers. The outcome is that a good spending in advertisement
generally pays in the long run.

57
4. What all flavours of Amul Kool do you know?

Elaichi : 92
Rose : 29
Other : 9

OTHER

9%

29% 1
2
3
62%
ROSE
ELACHI

INTERPRETATION
Throughout the survey it was found that people who consume flavoured milk are
more aware of flavours. 62 people out of 100 or 62% of respondents were aware of
elachi and 29 people or 29% of respondents were aware of rose.

9 respondents (9%) said that are using other flavours. Many consumers also
purchased various kind of flavours according to the requirements.

58
4. Please give the 1st rank to the following brand as per your choice?
Amul : 41
Amrit Food : 20
Gopal Ji : 17
Nestle : 9
Other : 13

Other 13%
1
NESTLE
AMUL 41% 2
9%
3
4
GOPALJI
AMRIT FOOD 5
17%
20%

INTERPRETATION
Only rank cannot help to winning the market. While in winning the market a
Company needs to have good quality as well as availability and the right price
supported by proper advertisement support and since Amul is fulfilling these
requirements it is the best in dairy products since 1946. That’s why after launch of
flavoured milk in the short period of time Amul is rising progressively to become the
market leader in the area covered those who tried Amul Kool once they became the
permanent customer of Amul Kool. 41% consumer says that Amul Kool is number 1
and there is good amount who says that Amul Kool is number2 brand {140}. But
tillthe survey Amrit Food has the percentage 20% and Nestle is at third place.

59
5. Pease tell if you have switched from one brand to another?
From Switch over to No. of Reason
respondents
Gagan Amul 60 Gagan quality was
declining so tried
Amul & liked t.Amul
Kool has good taste.

Amul Gagan 40 Easy availability.

INTERPRETATION
Flavoured milk is daily consumable commodity and considered to be a nutritious diet.
So whenever customer found any unacceptable degradation in quality as well as
adulteration they switch over to another brand.

An interesting point which we found during our survey is that now people are not
stable on any particular brand. If they do not find good quality in there flavoured milk
they can for another brand where they find good quality and which is easily available.

Because of it quite a no. of consumers of brands such as Gagan and Local flavoured
milk has switched over to Amul Kool because Amul is providing good quality, easily
available, good taste purity than their rivals. Moreover Amul does not use synthetic
milk as well as harmful chemicals in its flavoured milk.

60
What factors do you consider before purchasing your brand?
Availability : 32
Quality : 26
Taste : 19
Price : 12
Purity : 11

INTERPRETATION
We found that in the success of flavoured milk in market, availability and quality
plays an important role. Other factors like taste, price, purity are although less
significant. In the study 32% of the respondents said that for them availability is the
most important factor. They go to the confectionary store or dairy shop of their colony
and if the product is not available how can they buy. 26% of the respondents said that
for them, quality is the main concern. Those who preferred taste, price and purity
were 19%, 12%, 11% respectively. Consumers go the confectionery shop which is
nearest to their doorsteps so they generally compromise with that one.

61
Who influences your buying decision?
Family : 40
Brand Name : 20
Advertisement : 20
Retailer : 10
Others : 10

Others, 10%
1
Retailers,
10% Family, 40% 2
3
Advertisement 4
, 20%
Brand Name, 5
20%

INTERPRETATION
When we ask to the consumer about their buying decision those who said that their
decision of purchase for a particular brand of milk is influenced by members in the
family were 40% and 20% said that they are influenced by brand name.
Similarly 20% of our respondents said they were motivated by advertisement and the
claims made by companies.
Retailers influenced 10% and others factors 10%.
Regarding family we found that usually mothers and wives usually decide which
brand to purchase according to their affinity for a particular taste.

62
10. Where do you buy Flavoured milk?
Confectionary : 34
Home delivery : 28
Booths : 20
Dairy shops : 18

Dairy
Shop, 18% 1
Confectione
ry, 34% 2
Booths, 20 3
%
Home 4
Delivery, 28
%

INTERPRETATION
Confectionary stores usually keep a no. of other daily use eatables and commodities
and consumers think it to be very convenient to purchase their daily bread as well as
their brand of flavoured milk and 34% of our respondents said that they buy flavoured
milk from their colony or town confectionary stores.

In the urban areas of Ghaziabad a no. of vendors give home delivery of flavoured
milk and other products therefore the people who didn’t have time usually preferred
home delivery.

63
Whether Amul Kool is available whenever you go to your shop?
o Yes : 76
o Can’t say : 24

Cant say,
24% 
1
 2
Yes, 76%

INTERPRETATION
that part we tried to know about availability of Amul Kool and there was surprising
answer. Amul kool has covered the area in the short span of 10-12 months.
78%people say that they find the Amul Kool available from where purchases the milk
which means Amul distribution is good.
But much work is yet to be done to penetrate even deeper into the market and making
new customers.
The quantity of Amul kool consumed generally depended on the size of a family and
the frequency of intake and the various types of usage. Students who lived in hostels
and private flats used Amul Kool regularly for energy .

64
13. When do you buy Amul Kool ?
o Afternoon : 45
o Evening : 37
o Both : 18

Both
18%
Afternoon 1
45% 2
3
Evening
37%

INTERPRETATION
We found that 45% of our respondents went to purchase Amul Kool in afternoon and
37% people went in evening. 18% went both in afternoon and evening. We found
that most people preferred going to their milk or confectionary shop in the afternoon
for drinking kool and also the home delivery vendors mostly gave their services in the
afternoon.

65
QUESTIONNAIRE FOR RETAILERS
Sample Size : 100 Retailers
1. For how long you are in this business?
o 0 – 5 yrs : 11 Retailers
o 6 – 10 yrs : 30 Retailers
o 11 – 15 yrs : 35 Retailers
o 16 – 20 yrs : 17 Retailers
o 21 and more : 7 Retailers

21yrs&
more, 7% 1 - 5 yrs,
11% 1
16-20yrs,
2
17%
6 - 10 yrs, 3
30% 4
11-15 yrs,
5
35%

INTERPRETATION
35% of the retailers are doing business from 11 to 15 years. And they formed the
highest group of this category.
30% of the retailers are doing business from 6 to 10 years.
17 % of the retailers are doing business from 16 – 20 years.
11% of the retailers are doing business from 0 – 5 years.
7% of the retailers are doing business from 21 years and more

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2. Which brands you are selling?
Amul  Mother Dairy 
Paras  Gopaljee 
Others …………………
Amul Kool Yes – 42 No-- 48

YES
42% 1
NO 2
58%

INTERPRETATION
We found that 47% of the retailers kept Amul Kool.
3.If selling Amul, since how long you are selling Amul Kool?
Almost all the retailers who kept Amul Kool were keeping it since its launch .
Theywere satisfied with the growing demand of Amul Kool and said it showed a fair
retention power among consumers. Quite a good no. of consumers tried Amul Kool
and became loyal to Amul Kool.

67
4. Give average daily sales and distribution (1.Very good 2.Good
3.Fair) of these brands?
Amul……Amrit food …… Gopal ji …………Nestle …….

Other 13%
1
NESTLE
AMUL 41% 2
9%
3
4
GOPALJI
AMRIT FOOD 5
17%
20%

INTERPRETATION
From the survey of our respondents we found that Amul
had the largest sale at retailers visited by us. It stood at the staggering figure of 41%of
total sales.
Second place was occupied by Amrit food and stood at 20% market share.
Gopalji stood at 17%.
Nestle at 9% only.
Other brands occupied 13% of the sales.
Regarding distribution we came to know that Amrit food distributors were giving the
best service.

68
5.Does consumer approach you to keep Amul Kool?
Yes : 24
No : 76

Yes
24%
1
2
No
76%

INTERPRETATION

Most of the retailers didn’t give satisfactory answer to this question. Only 100
retailers said consumers approach them to keep Amul Kool. But due to low demand
and unavailability of refrigerators they are unable to keep Amul Kool.

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6. Are consumers switching over to Amul Kool ?

Yes : 47
No : 53

Yes
47% 1
No 2
53%

INTERPRETATION
47 Retailers (47%) were of the opinion that consumers were switching over to Amul
Kool. They were satisfied with the growing demand of Amul Kool and said it showed
a fair retention power among consumers. Quite a good no. of consumers tried Amul
and became loyal to Amul.

70
How is the response from the consumer? Give scaling for Amul Kool.
o Excellent to Poor
o Note: only 90 retailers gave answer to this question.
Excellent : 06 .
Good : 31
V. Good : 21
Fair : 27
Poor : 15

Excellent
Poor 6%
15% 1
V.Good 2
21%
3
Fair
27% 4
Good
5
31%

INTERPRETATION
6% or 5 retailers said that response from consumer was excellent.
21% or 19 retailers said that response from consumer was v. good.
31% or 27 retailers said that response was good.
Fair and poor ranking stood at 27% and 15% respectively.

71
Which brand do you usually push to the consumer in case he does not
demand any specific brand and why?
o A. Brand which has highest margin : 41
o B. Old Stock : 11
o C. Not specific : 48

A. highest
C.Not
margin 1
specific
41% 2
48%
3
B.Old
stock 11%

INTERPRETATION
41% of the retailers said that they push the brand which has the highest margin.
Retailers are chiefly considered with margin and goods and commodities which can
be sold.
11% of the retailers said that if any customer doesn’t give any specific choice of
brand then they give the brand which is of the old stock.
48% of the retailers said that this is not specific and they give any brand.

72
10. If not selling Amul Kool, then will you like to keep them?
o Yes : 46
o No : 54

Yes
46% yes
No no
54%

INTERPRETATION
Thus we see that 46% of the shopkeeper who were keeping not keeping Amul Kool
said they are interested in keeping Amul Kool.
54% of the retailers said they are interested because of poor demand and of non-
availability of refrigerators and of the risk involved in Amul Kool business because
unsold stock is not returnable.

73
11. What all you look while keeping Amul Kool on your shop please
rank? (I,II,III,IV,V)
Margin : 68
Service : 40
Behaviour of sales man : 08
Brand Name : 06
Trade scheme : 06
Consumer Demand : 72

Margin
36% 34% Service
Sales Man
Brand Name
3% Trade Scheme
20% Consumer Demand
3%
4%

INTERPRETATION
Thus one can see that the main thing which the shopkeepers are concerned is margin.
34% of the retailers said that for them margin is the main concern and they look
margin before keeping any brand in their shop.

74
SWOT ANALYSIS

75
 SWOT ANALYSIS

Strength

Amul has well built image of excellence and innovation supported of triumph of Indian
milk product industry.

It has well logistic and channel network.

Well trained and educated marketing staff.

Quality of products is good.

It ensures that only cow and buffalo milk is used by collecting milk

o From milk cooperative of Gujrat

Demand is absolutely optimistic.

Abundant availability of raw material.

WEAKNESS

Retailers say they are not satisfied by trade schemes.

Distributors do not give equal importance to all retailers and confectionary

stores.They neglect some retailers.

All is not well with distribution in Ghaziabad.

With so many companies in this industry, competition is becoming

Rougher day by day. But then competition has to be faced as a round reality. The
market is large enough for many to carve out heir niche.

Distribution channel of Amul is as string as Mother dairy have.

OPPORTUNITIES
“Failure is never final, and success never ending.” Dr. Kurien bears out this statement
perfectly. He entered the industry when there ere only threats. He met failure head-on,
and now he clearly is an example of ‘never ending success’! If dairy entrepreneurs are
76
looking for opportunities in India, the following areas must be tapped:

Value Addition: There is a phenomenal scope for innovations in product development,

packaging and presentation. Steps can be taken to introduce milk with addition of
essential vitamins for health conscious people. By reducing the price of products
Amul can reach new customers. Amul milk quality is better than other brands.

THREATS

Entry of MNC’s is a serious threat to Amul and other Indian companies. Incoming of
local brands, the unorganized are also a threat to Amul. The Indian industry of milk
and its products, following its deli censing, has been attracting a large numbers of
entrepreneurs. Their success depends on factors such as efficient yet economical
procurement network, hygienic and cost-effective processing facilities and
innovativeness in the market place. All the needs to be done are to innovate, convert
products into commercially exploitable ideas. All the time keep reminding yourself:
Benjamin Franklin discovered electricity, but it was the man who invented the meter
that really made the money!

77
FINDINGS

78
 FINDINGS

It is found in the survey that customer are influencing thought word of mouth.
41% of the retailers said that they push the brand which has the highest margin.
Retailers are chiefly considered with margin and goods and commodities which can
be sold.
11% of the retailers said that if any customer doesn’t give any specific choice of
brand then they give the brand which is of the old stock.
48% of the retailers said that this is not specific and they give any brand.
Thus we see that 46% of the shopkeeper who were keeping not keeping Amul Kool
said they are interested in keeping Amul Kool.
54% of the retailers said they are interested because of poor demand and of non-
availability of refrigerators and of the risk involved in Amul Kool business because
unsold stock is not returnable.
It is the finding in the survey that females are the main decision maker for the milk. as
per the data 65% Female and 35% of Males makes purchase decision.

79
LIMITATIONS

80
 LIMITATIONS

Every research is conducted under some foundations and this research is not an
exception. Limitations of this project are-
Te sample sizes of 100 consumers are too small to project the opinion of consumer
regarding a particular brand and also degree of success of a particular brand.
There might have been tendencies among the respondents to amplify or filter their
responses under the testing conditions.
Since the study involved sampling method, ‘Drop in’ or ‘Go through’ error might
have crept in.
Since the results have been drawn on the basis of the information provided by the
respondents, chances of error might have crept in.

81
 SUGGESTIONS

AND

RECOMMENDATIONS

82
 RECOMMENDATIONS
Amul as a brand has very “Brand Equity” and is a common name in India’s every
household. Through its vast product range and variety , it has created a strong
presence in dairy segment. Although it is monopoly in butter segment but in chocolate
field it needs a lot of measures to take to ensure the high performance.

1: Separate Butter Division

There is strong competitor like Para in the market so Amul should also have separate
division for butter. They should watch their competitors properly and adopt strategies
accordingly.

2: Small Wholesale Division in Interior Region

A small wholesale division should be established in interior region where sales are
low and regular visit bears high transportation cost. In such area either retailers
purchase from other area or don’t keep butter to sell.
3: Market Survey at Regular Interval By Representatives
Company’s representatives must survey the market themselves at regular interval in
order to know the opportunities in the market and to solve the retailer’s problems.
4: Provision of Target Even To Salesman
In order to increase the sale, salesman should also be given target to achieve and paid
them as quick as possible in form of cash not cheque.
5: Provision of Fridge At Easy Installment
There are many outlets where sales are high but they don’t have fridge.

6: Develop New Market

Amul should develop new market for butter like local general store,and confectionary.
7: Customer Care Division
A customer care division should be there to tackle the wholesalers as well as retailers
problems.
8: Strong Delivery Service And Other Match
Supply service should be strong enough to meet the requirement of retailers.Whether
the order is in bulk or in less volume it should effort to fulfill the order at right time.
9: Attractive Packaging
In fashion era,packaging is extremely essential because it plays a crucial role to attract

83
the consumer.However quality is also essential.
10: Regular Visit
It does not matter whether any retailer is purchasing the products at every visit or not,
but company should visit them at regular interval.
11: Quick Damage Clearance and Replacement
12: Strong Product and Price Range
13: Attractive Margin to Retailers
14: Sales Personnel should be instructed to educate the customer about the
service.
15: Customer should be out called from time to time and aware him/her about
the services and facilities.

84
CONCLUISON

85
CONCLUISON

Amul means different things to different people to a milk produces ~ A

life enriching experience.

AS we know that amul is very big organization & market leader in dairy
product. It has maximum market share in milk butter & cheese which are its
main n/case products but in case of amul ice cream is not a popular product as
compared to other amul product.

AS I conclude this project I would like to tell that amul flavors milk has
potential & with the help of this research I hope company can find out its
market.

86
BIBLIOGRAPHY

87
 BIBLIOGRAPHY

NEWSPAPER:

Economic Times

Business Standard

The Financial Express

BOOKS:

Majumdar, Ramanuj` :Marketing Research”:Sahitya Bahaman Publication,

(2008)

Gupta and Pal; “Consumer Behaviour”.Pargati Prakashan,(2007)

Philip Kittler; “Marketing Management” :Prankish Prakashan,(2009)

WEBSITES:

www.amul.com

www.parasdairy.com

www.motherdairy.com

www.economictimes.com

www.sify.com/finance

www.business-standard.com

www.rediff.com/money

88
QUESTIONNAIRE

89
 ANNEXURE

 Name________________________________
 Age_________________________________

QUESTIONNAIRE FOR CONSUMERS

1. Which Flavoured milk do you buy?
o A. Branded
o B. Loose
o C. Both

2. Do you know that Amul has launched its flavoured milk in bottle &
tetra pack?
o Yes
o No
3. How do you come to know about Amul Kool?
o T.V.
o Banners
o Radio
o Newspaper
o Friends
o P.O.P.

4. What all flavors’ of Amul Kool do you know?

o Leachy
o Rose
o Other

90
91
5. Please give the 1st rank to the following brand as per your choice?
Amul
Amrit Food
Goral Ji
Nestle
Other

6. Pease tell if you have switched from one brand to another?

From Switch over to
Gagan Amul

Amul Gavan

7. What factors do you consider before purchasing your brand?

Availability : 32
Quality : 26
Taste : 19
Price : 12
Purity : 11

8. Who influences your buying decision?

Family : 40
Brand Name : 20
Advertisement : 20
Retailer : 10
Others : 10

92
9. Where do you buy Flavoured milk?
.Confectionary : 34
. Home delivery : 28
. Booths : 20
. Dairy shops : 18

10. Whether Amul Kool is available whenever you go to your shop?

o Yes No
o Yes : 76
o Can’t say : 24

11. When do you buy AmulKool?

o Afternoon
o Evening
o Both

93
QUESTIONNAIRE FOR RETAILERS
Sample Size : 100 Retailers
1. For how long you are in this business?
0 – 5 yrs : 11 Retailers
6 – 10 yrs : 30 Retailers
11 – 15 yrs : 35 Retailers
16 – 20 yrs : 17 Retailers
21 and more : 7 Retailers

2. Which brands you are selling?

Amul 
Mother Dairy 
Para’s 
Gopaljee 
Amul Kool 
Others …………………

4. Give average daily sales and distribution (1.Very good 2.Good

3.Fair) of these brands?
Amul……Amrit food …… Go pal ji …………Nestle …….

5. Does consumer approach you to keep Amul Kool?

Yes 
No 

6. Are consumers switching over to Amul Kool?

Yes 
No 

94
9. How is the response from the consumer? Give scaling for Amul Kool.
Excellent to Poor
Note: only 90 retailers gave answer to this question.
Excellent: 05
V. Good: 19
Good: 27
Fair: 25
Poor: 14

8. Which brand do you usually push to the consumer in case he does not
demand any specific brand and why?
Brand which has highest margin
Old Stock
Not specific

9. If not selling Amul Kool, then will you like to keep them?
Yes 
No 

10. What all you look while keg Alum Cool on your shop please
rank? (I, II, III, IV, V)
Margin
Service
Behaviour of sales man
Brand Name
Trade scheme
Consumer Demand

95