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BRCM College of Business Administration, Surat
Marketing Management
Project: Product Category Milk Products and
Company Name Amul

Submitted by:
Name Roll no.

Kinjal Sanghani 128
Sanket Bhararia 129
Maulik Sanghvi 130

Submitted to: Mr. Jayesh Desai and Mr. Pratik Patel
Submitted on: 26
September, 2011

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Present Market Condition and Growth:

Demand conditions:
Demand for dairy products in India is likely to grow significantly in the coming years, driven
by more consumers, higher incomes and greater interest in nutrition. Consumption of
processed and packaged dairy products is increasing in urban areas. Because of the
increasing competition from the private sector, several national and international brands have
entered the market and expanded consumers expectation of quality although only among a
small proportion of the population. In many parts of the country, people still prefer unpacked
and unprocessed milk delivered by a local milkman because of its taste and the perception of
freshness. The price elasticity for milk is high, thus demand for milk is very sensitive to price
Demand conditions
Market size and growth Market growth is due to high per capita consumption,
increasing population and health consciousness
Consumption patterns Consumption of processed and packaged dairy products
is increasing in urban areas
Consumption patterns Unpackaged milk is still preferred because of taste and
Sophistication of consumers Consumer awareness on product quality is increasing
but in a very small portion of the population
Receptivity to new products Mostly urban consumers have a very low but increasing
interest in new products
Price elasticity Price elasticity is high
Impact of market opening on
Consumers now have a variety of quality products

Market structure
Until 2002, cooperatives traditionally were the dominant players in the formal sector. With
liberalization of the dairy industry, private investment has increased quite significantly.
However, the organized sectors share in milk procurement is very low because a large
proportion of the milk and Milk Products are sold through the informal channel (Table 1).
The informal demand absorbs approximately 41 percent of the milk and Milk Products
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produced in the country, accounting for about 75 percent of the marketable surplus of milk.
The formal channel, with its packaged milk and dairy products, accounts for only about 25
percent of the marketable surplus, which is about 15 percent of production.

Table 1:
Market Structure
Performance Still large share of produce; 85% of marketable surplus
goes through informal channel
Quality of milk through informal channel is an issue and
to some extent in formal channel as well
Competitive structure Little competition to cooperatives because private
sector was not allowed in the sector until recently
Entry of supermarkets in retailing of milk is increasing
the competitive structure
Governance (value chain type) Governance of cooperative structures is constaining
efficiency and expansion
Role of "lead" or organizing firms Role of lead agency has been hampered by government
interference in cooperatives
Farmer organization Immense scope for improving management and
governance through farmer organizations
Marketing chain capacity and efficiency Scope for enhancing efficiency of distribution
Distribution channels Cooperatives have a well-developed distribution channel
in urban areas
How market signals are conveyed or
Government and political interference in price setting,
limits prices being determined by market forces.
The informal sector consists of the village milk vendors who procure loose milk from
farmers and sell it in urban and peri-urban areas directly to consumers, small private
processors or hotels. The milk vendors also may sell processed products, such as paneer or
separated cream. The quality of the vendors milk and Milk Products is not guaranteed.
Largely sold in loose form, it is often adulterated with several additives to control spoilage.

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India: World's Largest Dairy Market
India today is the worlds largest and fastest growing market for milk and Milk Products . With
an annual growth rate of about 4.5 per cent, the countrys milk production, mostly rural-based,
exceeded 230 million litres per day (84.6 million tonnes per year) in 2010. Some 70 million
farmers maintaining a milch herd of about 100 million 54 million cows and 42 million
buffaloes, fed largely on crop residues. They account for 97 per cent of all milk produced in India.
Operation Flood (19701996) has modernized Indias dairy sector. In 2008, over 30 dairy plants
have been awarded the ISO:9000 and HACCP certification, and their number is increasing.
The countrys milk production is estimated to have touched 100 million tonnes (mt) last year,
which is higher than the estimated 92 mt for rice and 75 mt for wheat. In value terms, too, a kg of
milk is worth more than what you and I pay for a kg of rice and wheat.
But despite all this and the fact that India is today the worlds largest milk producer, the dairy
industry is for some strange reason not considered glamourous. For policy makers, dairying is
viewed as a subsidiary activity. This, when milk is one product that generates cash income to
farmers almost on a daily basis, unlike sugarcane or wheat.
Besides being a source of liquidity and insurance against crop failure, milk is the only crop where
the farmer realizes 60-70 per cent of consumer price against 20 per cent or so in fruits and
vegetables. Again, it is striking that there are no commodity futures in milk powder or ghee,
whereas the daily turnover volumes in NCDEX and MCX of guarseed, mentha oil, jeera or
pepper run to hundreds (even thousands) of crores!
One reason for this image problem suffered by milk has to do with the absence of proper
databases with authentic information on the sector. This is a gap that Dairy India 2007 (Sixth
Edition) seeks to fill.A treasure trove of information, this 864-page publication offers the most
comprehensive and up-to-date picture about the worlds numero uno dairying nation. An
invaluable Databank-cum-Management Guide-cum-Directory, it contains over 120 in-depth
articles, 260 statistical tables and charts and reference details of 7,000 organizations including
dairy plants and farms, equipment and consumable manufacturers, cattle feed and veterinary
pharmaceutical manufacturers, chemicals and food additives, project consultants, breeding and
fodder seed farms, analytical and disease-diagnostic laboratories, cooperative institutions and
government agencies.
The articles cover a range of topics including trends in consumption and market size of milk and
Milk Products , WTO challenges and export potential, management of dairy plants and farms,
breeding, feeding and nutrition, health care, clean milk production, food safety and quality
standards as well as techno-economic feasibility of small and large scale dairy plants and farms,
cattle feed units, and manufacture of cheese, ice-cream, etc. In addition, there is a special section
devoted to technology innovations and organized production of indigenous Milk Products such
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as paneer, gulabjamun, rasogolla and shrikhand a potentially lucrative segment ignored so far
by the industry in its obsession with butter, cheese and other foreign products.
Contributors include the President, Dr A.P.J. Abdul Kalam and the Father of Indias Dairy
Revolution, Dr V. Kurien, besides a host of acknowledged experts in livestock management,
marketing, processing technologies and policy makers. In response to unprecedented
developments in Asian countries, a special section, Dairy Asia, has been introduced.


Dairy India 2009 has estimated the size of Indias dairy sector in 2010 at Rs 227,340 crore
(valued at consumer prices). The largest contributor to this is liquid milk (at Rs 82,835 crore),
followed by ghee (Rs 22,980 crore), khoa/chhana/paneer (Rs 24,100 crore), milk powder (Rs
4,680 crore), table butter (Rs 770 crore), cheese/edible casein (Rs 975 crore) and other products
such ethnic sweets, ice-cream, etc (Rs 9,100 crore). Out of the total milk production of 94.5 mt, 77
per cent or 73.1 mt is sold as liquid milk, with the balance 23 per cent or 21.4 mt converted into
products. Further, the organized industry handles only 18 per cent or 17 mt of milk, with 36 per
cent (34.5 mt) being handled by private dudhias and unorganized players and 46 per cent (43 mt)
being retained in rural areas. Within the 18 per cent organized sector share, private and
cooperative/government dairies handle an equal 8.5 mt each.
By 2011, Dairy India projects the value of the industry to more than double to Rs 520,780 crore,
which includes Rs 159,600 crore from liquid milk, Rs 42,680 crore from ghee, Rs 50,500 crore
from khoa/chhana/paneer, Rs 9,100 crore from milk powder, Rs 2,250 crore from table butter, Rs
6,150 crore from cheese/edible casein and Rs 25,050 crore from other products. Interestingly, out
of the anticipated milk output of 120 mt, the share of liquid milk will rise to 81 per cent or 97.5 mt
and only the rest 19 per cent (22.5 mt) would get converted into products. But the organized
industrys share of total milk handling will go up to 30 per cent (36 mt), while the small players
will see their share dip to 22 per cent (26 mt). At the same time, higher rural incomes will
marginally boost the share of milk retained in rural areas to 48 per cent or 58 mt.
The other significant feature is that within the 30 per cent overall share of organized dairies, the
major 20 per cent (24 mt) will be accounted for by the private sector. The cooperatives and
government dairies will handle 10 per cent or 12 mt of milk, which will be lower than that of the
organized private sector.

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Product Projected Growth Rate
(Per cent per annum)

Products Estimated Growth Rate (%)
Milk production 3
Ghee consumption 9
Table Butter consumption 10
Paneer (cottage cheese) 10
Processed cheese 14
Dairy whiteners and condensed milk 8

Indias milk production will continue to grow at about 3 per cent per annum in spite of difficulties

Table Showing: Milk utilization pattern in India, 1943-2001

*includes Pakistan & Bangladesh

1943* 1956 2001

Milk production (million tonnes) 23.5 17.8 84.6
Milk utilization (percentage) 100 100 100

A. Liquid milk:
28.0% 39.2% 46.0%
B. Traditional products: 72.0% 60.8% 50.0%
Ghee/makkhan (clarified butter) 58.7% 46.0% 33.0%
Dahi (curds/chakka) 5.2% 8.8% 7.0%
Khoa (partially dessicated milk) 5.0% 4.4% 7.0%
Chhana & paneer (cottage cheese) 3.1% 1.6% 3.0%
C. Western products: Milk powder, etc Neg Neg 4.0%

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One of the fastest growing niches in the FMCG market is the milk and product segment. This
space is dominated by Amul, Nestle, Britannia, Mother Dairy and a host of other local players.
While the competition is intense, the scope of growth in this market is drawing in more players.
The latest to enter this market is Danone, the erstwhile promoter of Britannia.
However, at this stage let us give you a bit on Danone's background. Founded in 1919, Groupe
Danone or Danone is a French food products company. Its turnover in 2009 stood at EUR 14.9 bn.
The company's products range includes fresh dairy products, bottled water, baby nutrition and
medical nutrition. Danone is the number 1 in fresh dairy products and number 2 in water and baby
nutrition products in the world in volume terms.
Danone marked its independent entry in India in late 2009. The company launched three products
- chocolate smoothies (Choco Plus) in Hyderabad, plain yogurts (Danone Dahi) and a range of
flavoured yogurts (strawberry, mango and vanilla), in Pune and Maharashtra. The yogurt market
is estimated at Rs 5 bn. Of this, only Rs 250 m constitutes the organized market while the
remaining is unorganized. Moreover, the per-capita consumption in India for Curd and yogurt is at
0.5 kg while in European countries the average is around 30 kg. This means there is ample scope
for growth. Furthermore, with the rising price of milk, (55% point to point increase since Jan
2007) it makes sense for the company to launch curd and yogurt as opposed to plain milk as these
are value added products. This strategy seems to be working as the company has grown by 50%
YoY and claims to have a 19-20% market share in modern trade in Mumbai and Pune. This is just
after a year and a half of operations. Currently, the company is concentrating on increasing its
presence in the modern trade and is present at around 230 retail chains. Future plans
Going forward, the company wants to go pan India. However, it is restricted by not having a
supply chain in place. Danone has several blockbuster products for which it sees potential in
India. These include Activia, a fermented dairy product, Actimel, a probiotic dairy product,
Danacol, which is a cholesterol-lowering dairy product and Evian, mineral water. While all these
have potential for strong growth, the company has not indicated what it plans to launch. Danone
also plans to target the base of the pyramid consumers. For this, it plans to launch a project in the
second half of the year. This project would look at affordable products from factories at various
points. To further root itself in the Indian markets, Danone plans to invest about Rs 3.3 bn over
the next few years. Danone is also considering acquisitions to grow its business in India. While
the company has the products and the technology, the company is lacking in a distribution
channel. Hence, the company may look at potential joint venture or buyout which would help it
build up a distribution capability.
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The entry of Danone in India spells bad news for companies like Amul, Britannia and Nestle.
Britannia has been looking to expand its product offering. For this it entered into the dairy
business. The company already has a curd and flavoured milk offering. Nestle's milk portfolio
contributed about 44% of the company's CY10 sales. The milk portfolio includes (although a
small percentage) yogurt and curd. As the market is growing, the sales of these companies would
not be affected by the entry of Danone. However, to capture market share, the profitability of
Amul, Britannia and Nestle would be affected.

The Following Table shows the different brands and their products and the major competitors for
the product:

Products/ Brands Competitors

Butter Britannia, Nestle, Amul
Cheese Britannia, Amul
Dairy Whitener Segment Britannia, Nestle, Amul
Ice-Creams HUL, Amul
Chocolates Cadbury, Nestle ,Amul, Danone
Curd Mother Dairy, Nestle ,Amul, Danone
Ultra high Treated MILK Britannia, Nestle, Amul
Sweet Condensed MILK Nestle, Amul
Paneer Britannia, Amul
Flavored MILK Britannia, Nestle, Amul, Danone
Milk Additives Cadbury, Smithkline Beecham, Amul

The KSF model, to have a overall analysis. The table for the KSF model is given as under:

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Competitors Product
Pricing Product
Advertising Product

Note: E- Excellent, VG- Very Good, G- Good, A-Average, P- Poor.
Thus, from the above table we can say that Amul is the Leading Brand for Milk Products
and its main Competitors are Britannia, Nestle and Mother Dairy along with the emerging
new Brand in India DANONE.

The Following table shows the market share that Amul holds for each Product line:
Category Market Share (%) Market Position

Butter 85 1
Milk Powder 40 1
Cheese 50 1
Ice-cream 24.75 2
Sweets 50 1
Chocolates 90 1
Chocolate Drink 10 3

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Demand profile: Absolutely optimistic.
Margins: Quite reasonable, even on packed liquid milk.
Flexibility of product mix: Tremendous. With balancing equipment, you can keep on adding to
your product line.
Availability of raw material: Abundant. Presently, more than 80 per cent of milk produced is
flowing into the unorganized sector, which requires proper channelization.
Technical manpower: Professionally-trained, technical human resource pool, built over last 30

Perishability: Pasteurization has overcome this weakness partially. UHT
gives milk long life. Surely, many new processes will follow to improve milk
quality and extend its shelf life.
Lack of control over yield: Theoretically, there is little control over milk
yield. However, increased awareness of developments like embryo
transplant, artificial insemination and properly managed animal husbandry
practices, coupled with higher income to rural milk producers should
automatically lead to improvement in milk yields.
Logistics of procurement: Woes of bad roads and inadequate transportation
facility make milk procurement problematic. But with the overall economic
improvement in India, these problems would also get solved.
Problematic distribution: Yes, all is not well with distribution. But then if
ice creams can be sold virtually at every nook and corner, why cant we sell
other dairy products too? Moreover, it is only a matter of time before we see
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the emergence of a cold chain linking the producer to the refrigerator at the
consumers home!
Competition: With so many newcomers entering this industry, competition
is becoming tougher day by day. But then competition has to be faced as a
ground reality. The market is large enough for many to carve out their niche.

"Failure is never final, and success never ending. Dr Kurien bears out this statement
perfectly. He entered the industry when there were only threats. He met failure head-on, and
now he clearly is an example of never ending success! If dairy entrepreneurs are 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. Given below are potential areas of value addition:
Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer,
khoa, flavored milk, dairy sweets, etc.
This will lead to a greater presence and flexibility in the market place along with
opportunities in the field of brand building. Addition of cultured products like yoghurt and
cheese lend further strength - both in terms of utilization of resources and presence in the
market place. A lateral view opens up opportunities in milk proteins through casein,
caseinates and other dietary proteins, further opening up export opportunities. Yet another
aspect can be the addition of infant foods, geriatric foods and nutritionals.
*. Export potential: Efforts to exploit export potential are already on. Amul is exporting to
Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty,
opportunities will increase tremendously for the export of agri-products in general and dairy
products in particular.

Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of place
in the industry. Organized dissemination of information about the harm that they are doing
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to producers and consumers should see a steady decline in their importance.

The study of this SWOT analysis shows that the strengths and opportunities far outweigh
weaknesses and threats. Strengths and opportunities are fundamental and weaknesses and
threats are transitory. Any investment idea can do well only when you have three essential
ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines
and marketing) and values (of quality/ethics).
The Indian dairy industry, following its delicensing, has been attracting a large number of
entrepreneurs. Their success in dairying depends on factors such as an efficient yet
economical procurement network, hygienic and cost-effective processing facilities and
innovativeness in the market place. All that needs to be done is: 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

How to build on Strengths..
Strengthen economic viability of dairy farms by interventions on the input side as well as
ensuring more fair farmer prices
Increase the link between rural production areas and urban markets
Focus on strengthening the indigenous breed to help significantly enhance productivity
Ensure availability of quality medicines by strengthening regulatory framework for quality
How to correct Weakness..
Focus on quality issues even in the informal channel by training traders and by enforcing
food quality regulations
Develop infrastructure and training for clean milk production
Support a fair playing field for the private sector
Bring about changes in cooperatives to make them true representatives of farmers instead
of functioning as parastatals.
Support to dairying as an enterprise to encourage commercial dairy farming and encourage
production and productivity by extension and breed development
Enhance packaged milk distribution in more areas
Strengthen dairy farmer cooperatives to enable farmers to get a higher price for milk
Create rational export policy to enable farmers to take advantage of higher prices
Strictly implement quality regulations and improve infrastructure and training for quality
Strengthen the breed development programmes
Strengthen extension facilities
Create policy regulations to make mandatory testing as a basis for setting milk price
Increase access to credit through dairy farmer organizations and other agencies
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How to pursue Opportunities..
Create policies and activities geared towards enhancing dairy farming activity by increasing,
production, productivity and ensuring fair farmer price of milk
Establish enabling policy environment to enhance investment
Create policy support to enhance governance of producer companies
Focus on quality issues that are a barrier to exports
Encourage private sector to increase investment in dairying
How to avert Threat..
Initiate consumer education about the negative health impacts of unpackaged products
Develop packaging in small quantities to meet the needs of the poor
Increase milk prices in accordance with feed prices
Support expansion of dairy farmer organizations
Enhance productivity by breed improvement and extension
Enforce price setting of milk based on fat and SNF content to encourage production of cow
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Consumer Buying Behaviour

The consumer buying behaviour process helps in understanding the consumers buying
decision process all their experiences in learning, choosing, using and even disposing of a
product. This is of an immense use for a marketer as they are concerned with all these
activities o the consumer.
The consumer buying behaviour process for Milk Products passes through five stages:
1) Problem Recognition.
2) Information Search.
3) Evaluation of Alternatives.
4) Purchase Decision.
5) Post Purchase behaviour.

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Problem Recognition:

The buying process of Milk Products starts when the buyer recognizes a problem or need
triggered by an Internal or an External stimulus.
The Internal Stimuli to buy an Milk Products can be with the arrival of Summer Season and
increase in the temperature as the day are hot so Milk Products like Curd, lassi, etc may be
bought . Also as they are the daily used item they are bought for cooking purpose also which
is also an internal drive for self and family gratification.
The External Stimuli to buy a Milk Products can be when a person sees new Milk Products
in his/her neighbours house or relatives house this can drive him/her to buy a Milk
Products. Also you may see an ad of a new milk product which may drive a force to
purchase it or induce a trail.
So considering the internal and the external need recognition the consumer may have got an
urge to have a Milk Products.

Information Search :

After the problem or need is recognized the consumer moves to the second stage of
information search and often search for limited amount of information.
We can distinguish between two levels of involvement with search of information.
- The milder search state is called heightened attention. At this level a person simply
becomes more receptive to information about the product.
- At the next level, the person may enter an Active information search: looking for
reading material, phoning friends, going online, and visiting stores to learn about the

Information sources:

Major information sources to which consumer will turn fall into four groups:
a) Personal sources: family, friends, neighbours etc
b) Commercial sources: advertising, salespeople, retailers, dealers, packaging,
point-of-sale display.
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c) Public sources: newspapers, radio, television, consumer organisations;
specialist magazines.
d) Experiential sources: handling, examining, is using the product.
The usefulness and influence of these sources of information will vary by product and
by customer. Research suggests that customer value and respect personal sources
more than commercial sources. The challenge for the marketing team is to identify
which information sources are most influential in their target markets.

Total set Awareness set Consideration set Choice set Decision

The Total Set (Amul, Danone, Mother Dairy, Britannia, Nestle, etc) shows that the brand
available to the consumer. The individual consumers will come to know the subset of these
Brands which is called the Awareness set (Amul, Danone, Britannia, Nestle). Some brands are
considered by the consumer which he selects from the Awareness set based upon some initial
criteria which can be price, Brand image, Quality, life, taste, etc this set is called
Consideration set (Amul, Britannia, Nestle). Further only a few of these brands are chosen
based upon the further priority of attributes which the consumer wants in the Milk Products ,
this set is known as Choice set (Amul, Britannia, Nestle). Only a few from the Choice set will
be the strong contenders and will be considered in the final decision making for buying a
Milk Products (Amul, Nestle).





Mother Dairy

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Evaluation of Alternative :

- After information search is over the next stage is the evaluation of the Alternatives.
- How does the consumer process competitive brand information and make a final
value judgment?
- No single process is used by all the consumers for evaluation purpose and thus a
marketer must keep in mind the following concepts:
(1). The consumer is trying to satisfy a need.
(2). The consumer is looking for certain benefits from the product solution.
(3). The consumer sees each product as a bundle of attributes with varying abilities
for delivering the benefits sought to satisfy this need.
- Consumers will pay the most attention to attributes that deliver the sought-after
Table showing the beliefs about how each brand rates on three attributes:
Milk Products Attributes Total
Quality(40%) Availability(30%) Price(30%)
Amul 8 9 6 7.7
Nestle 8 7 6 7.1

- Each Attribute is rated from 0 to 10 where 10 represent the highest level on that
- The Expectancy Value Model of attitude formation posits that consumers evaluate
product & services by combining their brand beliefs positive & negative according
to importance
- This computation leads to the following perceived values:

Amul = 8 * 0.40 + 9 * 0.30 + 6 * 0.30 = 7.7
Nestle = 8 * 0.40 + 7 * 0.30 + 6 * 0.30 = 7.1

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- With the help of above table consumer select AMUL MILK PRODUCTS for
satisfying his need as the Expectancy Value Model predicts that the highest value
perceived is of AMUL MILK PRODUCTS (7.7)

Purchase decision:

- After evaluating alternatives which are available in the market or which will satisfy
his needs consumer try to take purchased decision. In Evaluation Step the consumer
develops preference for a Brand among the Choice set brands. The consumer may
also from an intention to buy the most preferred Brand.
- In Executing a Purchase intention the consumer may make up to five sub decisions
- A consumer decision to modify, postpone, or avoid a purchase decision is heavily
influenced by perceived risk and Consumer may perceive many types of risk in
buying and consuming a product. Even if the consumer form brand preference two
general factors can intervene between the purchase intention and the purchase

Purchase Decision

Unanticipated situational factors. Attitudes of others

Purchase Intention

Evaluation of Alternatives.
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The first is the Attitudes of others. The extent to which another persons attitude reduces our
preferences for alternatives depends upon two things:

The intensity of other persons negative attitude towards the preferred product by the
consumer i.e. it may happen that a friend may say that the Milk Products of Amul are
not worth purchasing.
Consumers Motivation to comply with the other persons attitudes i.e. the consumer
may change his/her attitude towards Amul and may develop a negative toward also.
The second factor is Unanticipated situational factors that may erupt to change the purchase
In our case the consumers neighbour may purchase a Nestle Milk Product and this can drive
the consumer to think of purchasing the Nestle Milk Product when the neighbour
recommends that it is very good and has a good Quality at less price and he/she may also say
that the Milk Products of Amul are not good at Quality and might get a perished very soon.
If the consumer is not willing to accept the attitude of the neighbour than he may buy Amul
Milk Products or will some other may be Nestls Milk Products

Post purchase behaviour:

Post-Purchase satisfaction:

- Satisfaction is a function of the closeness between expectations and the product perceived
- If performance is less than expectations, the consumer is disappointed.
- If perceived performance is equal to expectation than the consumer is satisfied.
- If perceived performance is greater than the expectations than the consumer is delighted.

So if the consumer buys a Amul milk products and expects that Taste and freshness at a
particular price of the milk products will be 8 out of 10 (rate is hypothetical) but after using
he came to know that is 9.5 out of 10 (rate is hypothetical) than he will be delighted. The
opposite might also happen if the consumer buys a Amul milk products and if he expects
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Taste and freshness at a particular price of the milk products will be 8 out of 10 (rate is
hypothetical) but after using he came to know that is 6 out of 10 (rate is hypothetical) than he
will be Dissatisfied

Post- Purchase Action :

If the consumer buys a Amul milk products and expects that the Taste and freshness at a
particular price of the milk products will be 8 out of 10 (rate is hypothetical) but after using
he came to know that is 9.5 out of 10 (rate is hypothetical) than the consumer may give
positive word of mouth for the brand - Amul and he might consider Amul as a priority in
future when he is triggered by a need to purchase an Milk Products if Amul sells it. Also, if
he expects that Taste and freshness at a particular price of the milk products will be 8 out of
10 (rate is hypothetical) but after using he came to know that is 6 out of 10 (rate is
hypothetical) than he will be Dissatisfied and will give negative word of mouth for the
brand- Amul and he might not consider Amul as a priority in future when he is triggered by a
need to purchase an Milk Products even though Amul sells it.

Post-Purchase use and Disposal:

Marketer must also monitor how the buyer use and dispose of the products. As the product
Milk Products is perishable in nature so it is purchased frequently and has a short use life so
they have to ensure that the product is used properly and that the availability is maintained
too. They also have to make the consumer aware about the life of the product and its
replacement. Also the disposable of the product after use is a concern for the marketer as it
may cause harm to the environment.
After the Purchase the consumer might experience dissonance that seems from noticing
certain disquieting features or hearing favourable things about other brands and will be alert
to information that supports his or her decision. Marketing communication should supply
beliefs and evaluation that reinforce the consumers choice and help him feel good about the
brand chosen.
Finally we say that the consumer can purchase Amul Brand of Milk Products.

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Factors Affecting Consumer Buying Behaviour:
As the milk products are the items of daily consumption so the influence of the below listed
factors is not much as it is the urge which drives them to buy the product also the financial
capability and willingness is involved. Thus, below listed the factors affecting the Consumer
buying Behaviour for milk products in India.
1). Cultural Factors.
Culture refers to the people of a specific region, caste or religion and describes what they
think, what they believe in, what are their values, etc. India being a country in which the is
tradition of drinking milk and eating milk is age old. People believe that the milk products
will help them to be strong, energetic and active. So the demand of milk products is very
high in India.

2).Social Factors.
a). Reference Group
People Consult generally consult each other before buying many perishable items also
and milk products are one of them particularly when the cases of adulteration in milk and
milk products is increasing the tendency to enquire about the product quality have aroused.
The Values and attitude of the family members towards milk products also affects the
buying behaviour for milk products.
3).Personal Factors.
a). Age and Stage in life cycle.
Generally all age group drink milk and eat milk products but there is a bigger market
for them for the children and youth.

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b).Occupation and Economic Status
Also the Occupation and the income determine the buying behaviour as the prices of
the milk products showing an increasing trend the tendency of the poor to buy them is
decreasing so these factors also influences the buying behaviour.
With the increase in consciousness for healthy and fat free food the milk products
demand is also affected now a days the demand for fat free milk products have increased a
lot. This may be because of the western culture adoption and change in lifestyle too.
A man believing in building and having a good physique may like milk products and
that also of a particular brand say Amul as he is a very patriotic person and is influenced by
its tagline The Taste of India this matching of brand and individual personality also
affects the buying behaviour.
4).Psychological Factors.
Motivation is the inner urge which forces and drives an individual to adopt specific
type of Behaviour as a response to satisfy the unsatisfied need. As the need for the certain
milk products is primary so they are purchased without any external force as the internal
urge to have the product is sufficient and also as per the Maslows Need Hierarchy theory the
primary needs drive consumers to behave differently than the other needs. As the
involvement in the milk product buying is less in time in concern but for quality concern its
not the case. So the marketer have to effective in delivering superior customer value at
affordable price.
perception is the process by which an individual selects, organize and interpret information
inputs to create a meaningful picture of the world. A person own perception for the milk
products also matters a lot in deciding his buying behaviour. As one may perceive the eating
of milk products as unhealthy so do not buy them while other may consider it as healthy and
may buy them.

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Consumer brand knowledge is a part of his memory if the Brand is well known and is
visible to him in many situation and places he may like it and may induce a trail of it this
affects his buying behaviour as if the Brand is not associated with good attributes than he
may not recall the brand or recall it with an negative attitude.

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Every day Amul collects 447,000 litres of milk from 2.12 million farmers (many illiterate),
converts the milk into branded, packaged products, and delivers goods worth Rs 6 crore (Rs 60
million) to over 500,000 retail outlets across the country.

Type : Cooperative
Founded: 1946
Headquarters: Anand, India
Industry: Dairy


Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to
provide remunerative returns to the farmers and also serve the interest of consumers by providing
quality products which are good value for money.
Amul (Anand Milk-producers Union Limited), formed in 1946, is a dairy cooperative
movement in India. The brand name Amul, sourced from the Sanskrit word Amoolya, means
priceless. It was suggested by a quality control expert in Anand. It is a brand name managed by an
apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd., which today
is jointly owned by some 2.41 million milk producers in Gujarat, India
. It is based in Anand
town of Gujarat and has been a sterling example of a co-operative organization's success in the
long term. The Amul Pattern has established itself as a uniquely appropriate model for rural
development. Amul has spurred the White Revolution of India, which has made India the largest
producer of milk and Milk Products in the world. It is also the world's biggest vegetarian cheese
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brand. Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate,
ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others.
Situation of farmers.

Over five decades ago, the life of an average farmer in Kheda District was very much like that of
his/her counterpart anywhere else in India. His/her income was derived almost entirely from
seasonal crops. The income from milk buffaloes was undependable. Milk producers had to travel
long distances to deliver milk to the only dairy, the Polson Dairy in Anand often milk went sour,
especially in the summer season, as producers had to physically carry milk in individual
containers. Private traders and middlemen controlled the marketing and distribution system for the
milk. These middlemen decided the prices and the off-take from the farmers by the season. As
milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they
had to sell cream and ghee at throw-away prices. In this situation, the private trader made a
killing. Moreover, the government at that time had given monopoly rights to Polson Dairy (around
that time Polson was the most well known butter brand in the country) to collect milk from Anand
and supply to Bombay city in turn (about 400 kilometers away). India ranked nowhere amongst
milk producing countries in the world in 1946. Gradually, the realization dawned on the farmers
with inspiration from then nationalist leaders Sardar Vallabhbhai Patel (who later became the first
Home Minister of free India) and Morarji Desai (who later become the Prime Minister of India)
and local farmer, freedom fighter and social worker Tribhovandas Patel, that the exploitation by
the trader could be checked only if they marketed their milk themselves. Amul was the result of
the realization that they could pool up their milk and work as a cooperative.

GCMMF is India's largest food products marketing organization. It is a state level apex body of
milk cooperatives in Gujarat, which aims to provide remunerative returns to the farmers and also
serve the interest of consumers by providing affordable quality products. GCMMF markets and
manages the Amul brand. From mid-1990s Amul has entered areas not related directly to its core
business. Its entry into ice cream was regarded as successful due to the large market share it was
able to capture within a short period of time primarily due to the price differential and the brand
name. It also entered the pizza business, where the base and the recipes were made available to
restaurant owners who could price it as low as 30 rupees per pizza when the other players were
charging upwards of 100 rupees.

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Company info
The Gujarat Cooperative milk Marketing Federation Ltd, Anand (GCMMF) is the largest food
products marketing organisation 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 These cooperatives
collect on an average 7.5 million litres of milk per day from their producer members, more than
70% of whom are small, marginal farmers and landless labourers and include a sizeable
population of tribal folk and people belonging to the scheduled castes.
The turnover of GCMMF (AMUL) during 2008-09 was Rs. 67.11 billion. It markets the products,
produced by the district milk unions in 30 dairy plants,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 litres of milk per day and process 100 MTs of milk powder daily.. 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. This is the most significant
contribution the Amul Model cooperatives has made in building the Nation.
Members: 13 District Cooperative Milk
Producers' Unions
No. of Producer Members: 3.03 million
No. of Village Societies: 15,712
Total Milk handling capacity: 13.67 million litres per day
Milk collection (Total - 2010-11): 3.45 billion litres
Milk collection (Daily Average 2010-11): 9.2 million litres
Milk Drying Capacity: 647 Mts. per day
Cattlefeed manufacturing Capacity: 3690 Mts per day
Sales Turnover (2010-11) Rs. 9774 Crores (US $ 2.2 billion)
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Sales Turnover Rs (million) US $ (in million)
1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504
2009-10 80053 1700
2010-11 97742 2172

Above table shows the growth in the milk production and the revenue from 1994-45 to 2010-11

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Product Mix:

Over the years Amul has come up with many products. There has been product line extension as
well as product category extension.
List of Products Marketed:
Amul Butter
Amul Lite Low Fat Breadspread
Amul Cooking Butter
Cheese Range:
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese
Amul Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese)
Utterly Delicious Pizza
Mithaee Range (Ethnic sweets):
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
Amul Amrakhand
Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamun Mix
Amul Mithaee Kulfi Mix
Avsar Ladoos
UHT Milk Range:
Amul Shakti 3% fat Milk
Amul Taaza 1.5% fat Milk
Amul Gold 4.5% fat Milk
Amul Lite Slim-n-Trim Milk 0% fat milk
Amul Shakti Toned Milk
Amul Fresh Cream
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Amul Snowcap Softy Mix

Pure Ghee:
Amul Pure Ghee
Sagar Pure Ghee
Amul Cow Ghee
Infant Milk Range:
Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 ( 6 months above)
Amulspray Infant Milk Food
Milk Powders:
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
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 Shakti Standardised Milk 4.5% fat
Amul Slim & Trim Double Toned Milk 1.5% fat
Amul Saathi Skimmed Milk 0% fat
Amul Cow Milk
Curd Products:
Amul Flaavyo Yoghurt
Amul Masti Dahi (fresh curd)
Amul Masti Spiced Butter Milk
Amul Lassee
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Amul Icecreams:
Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)
Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond)
Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant,
Santra Mantra, Fresh Pineapple)
Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite,
Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)
Chocolate & Confectionery:
Amul Milk Chocolate
Amul Fruit & Nut Chocolate
Brown Beverage:
Nutramul Malted Milk Food
Milk Drink:
Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate)
Amul Kool Cafe
Amul Kool Koko
Amul Kool Millk Shaake (Mango, Strawberry, Badam, Banana)

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The above figure shows the product portfolio of the Brand - AMUL

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Price Mix:
Amul Pricing Strategies

AMUL means in Sanskrit. The brand name Amul, from the Sanskrit Amoolya,was suggested by
a quality control expert in Anand. Variants, all meaning priceless, are found in several Indian
languages. Amul products have been in use in millions of home since 1946. Amul Butter, Amul
Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul
Ice cream, Nutramaul, Amul Milk and Amulya have made Amul a leading food brand in India.
(Turnover: Rs. 29 billion in 2004). Today Amul is a symbol of many things. Of high-quality
products sold at reasonable prices. At the time Amul was formed, consumers had limited
purchasing power, and modest consumption levels of milk and other dairy products. Thus Amul
adopted a low-cost price strategy to make its products affordable and attractive to consumers by
guaranteeing them value for money. Despite competition in the high value dairy product segments
from firms such as Hindustan Lever, Nestle and Britannia, GCMMF ensures that the product mix
and the sequence in which Amul introduces its products is consistent with the core philosophy of
providing butter at a basic, affordable price to appeal the common masses. This helped AMUL
BUTTER to create its brand image in the household sector of the society. The Prices of Amul
Products are being decided by GCMMF by conducting market survey to check the validity and
feasablity of the prices for Amul Products in the market and accordingly decides the prices of
Amul products.
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Amul products price includes following Costs:
Cost of Milk
Labour Cost
Processing Cost
Packaging Cost
Advertising Cost
Transportation Cost

Place Mix:
Amul Success is partly because of its strong supply chain design. This has lead to Amul being the
Asias largest Milk Products supplier.

A Global Distributor

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status.
GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product
Exports for the last 9 years.

Currently Amul has 2.41 million producer members with milk collection average of 5.08 million
litres/day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh,
Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese
market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets
. Other
potential markets being considered include Sri Lanka.

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Amul products are available in over 500,000 retail outlets across India through its network
of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer
inventory of the
entire range of

GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of
the cheque system adopted by other major FMCG companies. This practice is consistent
with GCMMF's philosophy of maintaining cash transactions throughout the supply chain
and it also minimizes dumping.
Wholesale dealers carry inventory that is just adequate to take care of the transit time from
the branch warehouse to their premises. This just-in-time inventory strategy improves
dealers' return on investment (ROI). All GCMMF branches engage in route scheduling and
have dedicated vehicle operations.
Umbrella brand
The network follows an umbrella branding strategy. Amul is the common brand for most
product categories produced by various unions: liquid milk, milk powders, butter, ghee,
cheese, cocoa products, sweets, ice-cream and condensed milk.
Amul's sub-brands include variants such as Amulspray, Amulspree, Amulya and Nutramul.
The edible oil products are grouped around Dhara and Lokdhara, mineral water is sold
under the Jal Dhara brand while fruit drinks bear the Safal name.
By insisting on an umbrella brand, GCMMF not only skillfully avoided inter-union conflicts
but also created an opportunity for the union members to cooperate in developing products.

Below Drawn is the Distribution and procurement Channel of Amul:
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First leg (from manufacturing units)

Distribution channel
GCMMF Head office
Depot...1 Depot...n

Second leg
Third leg
Downstream flow
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GCMMF Head office
MU1 MU...n
Procurement Channel
Upstream flow
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The network

Milk is procured from the villages and collected at Village Cooperative Societies (VCS), from
there the milk is taken to manufacturing units where the milk is processed into various products.

The products are then transporters to the company Depots located in various parts of the country.
The products are then sent to Wholesale Distributors (WD) and from there to the retailers.

The fact sheet

Milk is procured twice a day from 2 million from Gujarat alone
The payment is made under twelve hours of procurement
There are 10000 village cooperative societies
There are 3600 wholesale distributors in the country
45 depots
The C&F agents are not fixed and are decided by the local company offices
There are aproxx. 4,50,000 retailers spread all over India
Total house hold consumers covered are 100,000
The milk procured per day is 5 million liters
Where the total capacity of operation is 7 million liters per day
The peak processing till date has been 6 million liters per day
These co operative societies are bound to supply there produce only to GCMMF

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SCM and Market Logistics

Enterprise resource planning: the company at has implemented an ERP program as low as Rs. 3
corers in collaboration with TCS ltd. The company uses it, the data right from the procurement
from the farmers till the delivery of goods to the retailers is fed into the system. The software
enabling the channel members to use for the synchronized working and best possible utilization of
the available resources maintains details regarding the inventory management.

Market logistics deals with the implementation of the SCM of the company.
Upstream Channel in which milk is procured from the farmers to the manufacturing units.

1. In the first step, the milk is taken to the VCS by the farmers on foot or bicycles in small quantities
2. The second step involves the transportation of milk from the co-operatives to the manufacturing
units this is done in special trucks which are equipped with tankers to carry milk.

Downstream Channel, it is the distribution part of the supply chain. From the
manufacturing units to the retailers.

1. First leg of transport is from the manufacturing unit to the company depots. This is done using 9
and 18 MT trucks any lesser quantity will be uneconomical to the company there fore is some
time the quantity ordered is lesser then club loading is done which means that the product ordered
is supplied with some other products.
a. Frozen food the temperature of these trucks is kept below -18C
b. Dairy wet the temperature of these trucks is kept between 0-4C

2. Second leg is from the depot to the WDs, this transport is carried out in insulated 3 and 5 MT
TATA 407s here a permanent dispatch plan (PDP) is prepared where the distributor plans out the
quantity of various products to be ordered on a particular date.

3. Third leg this is the flow of good from WDs to retailers, a beat plan is prepared and
transportation is done on auto-rickshaws, rickshaws and bicycles.

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The Three-tier "Amul Model"
The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy
Cooperative Society at the village level affiliated to a Milk Union at the District level which in
turn is furthler federated into a Milk Federation at the State level. The above three-tier structure
was set up in order to delegate the various functions, milk collection is done at the Village Dairy
Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products
Marketing at the State Milk Federation. This helps in eliminating not only internal competition
but also ensuring that economies of scale is achieved. As the above structure was first evolved at
Amul in Gujarat and thereafter replicated all over the country under the Operation Flood
Programme, it is known as the Amul Model or Anand Pattern of Dairy Cooperatives.
Responsible for Marketing of Milk & Milk Products Responsible for Procurement & Processing
of Milk Responsible for Collection of Milk Responsible for Milk Production
Village Dairy Cooperative Society (VDCS)

The main functions of the VDCS are as follows:
Collection of surplus milk from the milk producers of the village & payment based on quality &
Providing support services to the members like Veterinary First Aid, Artificial Insemination
services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, conducting training
on Animal Husbandry & Dairying, etc.
Selling liquid milk for local consumers of the village
Supplying milk to the District Milk Union
Thus, the VDCS in an independent entity managed locally by the milk producers and assisted by
the District Milk Union.
District Cooperative Milk Producers Union (Milk Union)

The main functions of the Milk Union are as follows:
Procurement of milk from the Village Dairy Societies of the District
Arranging transportation of raw milk from the VDCS to the Milk Union.
Providing input services to the producers like Veterinary Care, Artificial Insemination services,
cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, etc.
Conducting training on Cooperative Development, Animal Husbandry & Dairying for milk
producers and conducting specialised skill development & Leadership Development training for
VDCS staff & Management Committee members.
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Providing management support to the VDCS along with regular supervision of its activities.
Establish Chilling Centres & Dairy Plants for processing the milk received from the villages.
Selling liquid milk & Milk Products within the District
Process milk into various milk & Milk Products as per the requirement of State Marketing
Decide on the prices of milk to be paid to milk producers as well on the prices of support services
provided to members.
State Cooperative Milk Federation (Federation) The main functions of the Federation
are as follows:
Marketing of milk & Milk Products processed / manufactured by Milk Unions.
Establish distribution network for marketing of milk & Milk Products .
Arranging transportation of milk & Milk Products from the Milk Unions to the market.
Creating & maintaining a brand for marketing of milk & Milk Products (brand building).
Providing support services to the Milk Unions & members like Technical Inputs, management
support & advisory services.
Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.
Establish feeder-balancing Dairy Plants for processing the surplus milk of the Milk Unions.
Arranging for common purchase of raw materials used in manufacture / packaging of Milk
Products .
Decide on the prices of milk & Milk Products to be paid to Milk Unions.
Decide on the products to be manufactured at various Milk Unions (product-mix) and capacity
required for the same.
Conduct long-term Milk Production, Procurement & Processing as well as Marketing Planning.
Arranging Finance for the Milk Unions and providing them technical know-how.
Designing & Providing training on Cooperative Development, Technical & Marketing functions.
Conflict Resolution & keeping the entire structure intact.
Today, we have around 176 cooperative dairy Unions formed by 1,25,000
dairy cooperative
societies having a total membership of around 13 million farmers on the same pattern, who are
processing and marketing milk and Milk Products profitably, be it Amul in Gujarat or Verka in
Punjab, Vijaya in Andhra Pradesh or a Nandini in Karnataka. This entire process has created more
than 190 dairy processing plants spread all over India with large investments by these farmers
institutions. These cooperatives today collect approximately 23 million kgs. of milk per day and
pay an aggregate amount of more than Rs.125 billion to the milk producers in a year.

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Promotion Mix:

Initial Promotional Strategy

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. They didnt help in creating a brand image of AMUL butter which was their then

A brand - Amul A Taste of India

However, in 1966, a man named Sylvester daCunha, from the ad agency of ASP, took over the
Amul account. And in 1967 it began, innocently enough. In India, food was something one
couldn't afford to fool around with. It had been taken too seriously, for too long. Sylvester
daCunha decided it was time for a change of image.
Scott Bradbury, the marketing genius behind Nike and Starbucks, once said A great brand is a
story that is never completely told. A brand is a metaphorical story thats evolving all the time.
Stories create the emotional context people need to locate themselves in the larger experience He
could easily have been talking about the Amul moppet.

The moppet who put Amul on India's breakfast table

The year Sylvester daCunha took over the account, the country saw the birth of a campaign whose
charm has endured fickle public opinion, gimmickry and all else. The Amul moppet, the little girl
who created a home in the hearts and minds of millions and millions of Indians. No easy task.
And to be there for almost 34 years!

Call her the Friday to Friday star because Every Friday, since 1967, this little girl appears at
billboards, strategically placed all over India, focusing on the item of the week tongue in cheek,
of course. Round eyed, chubby cheeked, winking at you, from strategically placed hoardings at
many traffic lights. She is the Amul moppet everyone loves to love (including prickly votaries of
the Shiv Sena and BJP). How often have we stopped, looked, chuckled at the Amul hoarding and
product wrappers with the equally recognisable tagline Utterly Butterly Delicious Amul that casts
her sometime as the coy, shy Madhuri, a bold sensuous Urmila or simply as herself, dressed in
her little polka dotted dress and a red and white bow, holding out her favourite packet of butter.

There are no boundaries and nothing is off limits. From the political scene, to entertainment, from
local news to international, from sports to stars, she has a line for everything. Often said to be
playing the role of a social observer with evocative humor, the billboards became, and still are,
a topic of conversation amongst millions. With their hing-lish (a combination of Hindi and
English) punch-lines, they have won the maximum number of awards in India for any ad
campaign ever! This little thumbalina, seems to have the masses, right where she wants them
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wanting more of her and of Amul. No other brand comes close to what Amul has been able to


Its advertising has also started using tongue-in-cheek sketches starring the Amul baby
commenting jovially on the latest news or current events. This formed a large chunk of the
collective memory of us Indians. We grew with them as the ads grew with us. They are quirky,
poke fun at no one in particular and are pure eye-candy! We almost admire the speed with which
the ad-people come up with copy and illustration for the ads, that change every few days!!
From the Sixties to the Nineties, the Amul ads have come a long way. While most people agree
that the Amul ads were at their peak in the Eighties they still maintain that the Amul ads continue
to tease a laughter out of them
The Amul ads are one of the longest running ads based on a theme, now vying for the Guinness
records for being the longest running ad campaign ever.

Where does Amul's magic actually lie?

Many believe that the charm lies in the catchy lines. That we laugh because the humour is what
anybody would enjoy. They don't pander to your nationality or certain sentiments. It is pure and
simple, everyday fun.

An Amul butter ad on Pakistan's Kargil War fiasco. The image shows the "Amul baby" in
between George Fernandes and Atal Behari Vajpayee.
In 1966, Amul hired Sylvester daCunha, then managing director of the advertising agency AS to
design a new ad campaign for Amul Butter. daCunha designed an add campaign as series of
hoardings with topical ads, relating to day-to-day issues. The campaign was widely popular and
earned a Guiness world record for the longest running ad campaign in the world. Since the 1980s,
cartoon artist Bharat Dabholkar has been involved with sketching the Amul ads, who rejected the
trend of using celebrities in advertisement campaigns. Dabholkar credited chairman Varghese
Kurien with creating a free atmosphere that fostered the development of the ads.

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Despite encountering political pressure on several occasions, daCunha's agency has made it a
policy of not backing down. Some of the more controversial Amul ads include one commenting
on Naxalite uprising in West Bengal, on the Indian Airlines employees strike, and the one
depicting the Amul butter girl wearing a Gandhi cap.
Amuls advertising strategy has followed the concept of Umbrella Branding. Amul is the
common brand name for most of its products across categories. For instance, the Amul girl has
also been used to advertise Amul ghee and milk. Its ad campaign Amul doodh peeta hai India,
conceptualised & created by FCB-Ulka, was drafted to proclaim its leadership position and was
targeted at people across all income categories. Says Sodhi, Our corporate campaign The Taste
of India caters to people belonging to all walks of life & across cultures. It is circled around a one
day old child who needs milk as much as to a dead man who needs ghee.


The first products with the Amul brand name were launched in 1955. Since then, they have been
in use in millions of homes in all parts of India, and beyond. There is something more, though,
that makes the Amul brand special and that something is the reason for the commitment to quality
and value for money. Amul is the brand name of 2 million farmers, members of 10,000 village
dairy cooperative societies throughout Gujarat. This is the heart of Amul, it is what gives strength
to Amul, and it is what is so special about the Amul saga.

The Amul Pattern has established itself as a uniquely appropriate model for rural development.
Amul has made India one of the largest milk producers in the world.
Amul, therefore, is a brand with a difference. That difference manifests itself in a larger than life
purpose. The purpose freedom to farmers by giving total control over procurement, production
and marketing. Our commitment to the producer and our contract with the consumer is the reasons
we are confident that cooperative brands, like Amul, will have an even bigger role to play in the
next fifty years.

Utterly Butterly Delicious! hummed a thumb sized little girl dressed in a polka-dotted frock and
so was born a star a pun loving star who with her bold tongue-in-cheek topicals made way
directly into the hearts of millions. The history of the Amul girl can be traced back to 1967, when
the first hoarding of Amul came up in Bombay (now Mumbai) and became an instant hit,
especially with housewives. The man behind the Amul girl, Sylvester da Cunha (founder of
daCunha Communications) who, at that time was working with Lintas, recalls, We needed a girl
who would worm her way into a housewifes heart. 40-years hence, the bubbly Amul girl has
found her way directly into the Guinness Book of World Records for the longest running
campaign ever.

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Otherwise an epitome of Indias largest food brand, it is interesting to note that the Amul girl has
always been flying high on the hoardings but never seen on television. R. S. Sodhi, Chief General
Manager, GCMMF says, Creatives cannot be easily translated from one media to another. The
topicals are created in different languages & pertain to the geographical region they are put in.
Every kind of media has different attributes & we need to focus on that particular media, which
brings maximum recognition & effectiveness to the brand.

Amul, a brand of the apex organisation GCMMF, has been an excellent success story of a co-
operative organisation a concept not very popular in India. Its range of dairy products includes
milk, butter, ghee, cheese, curd, chocolate, ice cream, et al. The establishment of Amul in 1946
was marked as an epoch in the White Revolution of the country.



What goes into the contract that is a brand name?

First is quality. No brand survives long if its quality does not equal or exceed what the buyer
expects. There simply can be no compromise. Thats the essence of the contract. In the case of a
food product, this means that the brand must always represent the highest hygienic,
bacteriological and organoleptic standards. It must taste good, and it must be good.
Second, the contract requires value for money.
If our customer buys an Amul product, she gets what she pays for, and more. We have always
taken pride in the fact that while we earn a good income for our owners the dairy farmers of
Gujarat we dont do it at the cost of exploiting the consumer. Even when adverse conditions
have reduced supplies of products like butter, we have resisted the common practice of raising
prices, charging what the market would bear. Rather, we have kept prices fair and done our best to
ensure that retailers do not gain at the consumers expense.

The third element of the contract is availability.
A brand should be available when and where the customer wants it. There is no benefit achieved
in creating a positive brand image, and then being unable to supply the customer who wants to
buy it. In our case, over the years we have built what is probably the nations finest distribution
network. We reach hundreds of cities and towns through a cold chain that not only ensures that
our products are available, but they reach the customer at the farthest end of the country with the
same quality as you would find in Ahmedabad or Vadodara.

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The fourth part of the contract is service.
We have a commitment to total quality. But, occasionally, we may make a mistake or, our
customer may think weve made a mistake, and the customer, as they say, is always right. That is
why, for Amul, every customer complaint must be heard not just listened to. And, every
customer complaint must be rectified to the extent humanly possible.
For close to fifty years now, Amul has honoured its contract with the consumer. The contract that
is symbolised by the Amul brand means quality. It means value for money. It means availability.
And it means service.

Contests, TV shows, Movies:

Amul promotes itself by conducting various contests such as:

Chef of the year-in this, the participants are required to use as many as Amul Products as
Amul Maharani of the year- in this, the participants are required to fill up questionnaire and
then there is a lucky draw.
Amul promotes itself by sponsoring various movies, TV shows also:
TV Shows:
Amul Star Voice of India
Amul Comedy ka MAHA MUKABLA

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Segmentation , Targeting and Positioning (STP):

Segmentation is not easy because of mixed audience and various culinary
applications of Amul Products. Nevertheless, we may do Segmentation based
1. Consumer Type:
a. For kids- Amul Kool, Amul Chocolates, Nutramul, etc.
b. For Women- Amul Calci+
c. For Youth- Utterly Delicious Pizza, Cheese Variants, etc.
d. For the calorie conscious- Amul Lite, Amul lite Slim Trim Milk, etc.
e. For health conscious- Nutramul, Amul Shakti, etc.

2. Industry Type:
a. Milk Ice cream Manufacturer, Restaurants, coffee shops, etc.
b. Butter/cheese/Ghee Bakery, Pizza retailers, Snack Retailers, etc


After Segmentation, one has to decide where to find this market segment and what
should be the size of the segment. Example: Amul has identified youth as one of its
potential segments. Now it has to find youth who will actually go get their product and
the number of youth that the company .i.e., Amul requires, Amul has come up with
Amul parlors for this reason.

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a) A mass market player, so premium offerings.
b) Quality with Affordability
c) Amul as Taste of India Creating value for everyone in the value chain,
both customers & farmers.
d) New offering for health conscious and vibrant India in the form of Probiotic
wellness Ice-cream, sugar free delights for the diabetic patients and Amul kool
caf for the youth of today.

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Impact of the "Amul Model"
The effects of Operation Flood Programme are more appraised by the World Bank in its recent
evaluation report. It has been proved that an investment of Rs. 20 billion over 20 years under
Operation Flood Programme in 70s & 80s has contributed in increase of Indias milk production
by 40 Million Metric Tonne (MMT) i.e. from about 20 MMT in pre- Operation Flood period to
more than 60 MMT at the end of Operation flood Programme. Thus, an incremental return of Rs.
400 billion annually have been generated by an investment of Rs. 20 billion over a period of
20 years. This has been the most beneficial project funded by the World Bank anywhere in the
World. One can continue to see the effect of these efforts as Indias milk production continues to
increase and now stands at 90 MMT. Despite this fourfold increase in milk production, there has
not been drop in the prices of milk during the period and has continued to grow.
Due to this movement, the countrys milk production tripled between the years 1971 to 1996.
Similarly, the per capita milk consumption doubled from 111 gms per day in 1973 to 222 gms per
day in 2000. Thus, these cooperatives have not just been instrumental in economic development
of the rural society of India but it also has provided vital ingredient for improving health &
nutritional requirement of the Indian society. Very few industries of India have such parallels of
development encompassing such a large population.
These dairy cooperatives have been responsible in uplifting the social & economic status of the
women folk in particular as women are basically involved in dairying while the men are busy with
their agriculture. This has also provided a definite source of income to the women leading to their
economic emancipation.
The three-tier Amul Model has been instrumental in bringing about the White Revolution in the
country. As per the assessment report of the World Bank on the Impact of Dairy Development in
India, the Anand Pattern has demonstrated the following benefits:
The role of dairying in poverty reduction
The fact that rural development involves more than agricultural production
The value of national ownership in development
The beneficial effects of higher incomes in relieving the worst aspects of poverty
The capacity of dairying to create jobs
The capacity of dairying to benefit the poor at low cost
The importance of commercial approach to development
The capacity of single-commodity projects to have multi-dimensional impacts
The importance of getting government out of commercial enterprises
The importance of market failure in agriculture
The power & problems of participatory organisations
The importance of policy poda pattie mayire

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Market Condition And Consumer Behaviour:
India is the largest producer of milk producing more than 100 million tons of milk per
annum. Yet, her per capita milk consumption is around 250 g per day.
India has a population of more than 1 billion with diverse food habits, cultures, traditions
and religions. Regional variations within the country can be mind boggling. On one hand,
the country has plains with long tradition of milk production and consumption. On the
other hand, there are forest and hilly regions with no tradition of dairying. Most of coastal
belts also do not have much of dairy tradition.
Cow is holy for Hindus who make up more than 80 per cent of the population of India.
Buffalo enjoys no such holy status. Cow slaughter is banned in many states of India.
There are no restrictions on buffalo culling.
All this makes India a very complex dairy country.
Till about year 2000, India was not on the radar screen of most international dairy companies,
since India was neither a major importer nor an exporter of dairy products. Through the 70s,
80s and 90s India used to take some milk powder and butter oil as aid. Exports from India
were insignificantly small. From 2000 onwards, Indian dairy products, particularly milk powder,
casein, whey products and ghee started making their presence felt in global markets.
The decade of 2000-10 will be recorded in dairy history as the decade of exports. But the next
decade will be different. Signs of change are already visible. On one hand, India is finding it
difficult to sustain exports of dairy products due to low global prices and high domestic prices.
On the other hand, some dairy products and companies from India have been able to make
their mark on international markets leading to increase in their exports even when the overall
global market sentiment has turned negative.
Reintroduction of subsidies by European Union, continuing global economic downturn and
devaluation of currency of a major dairy exporting country like New Zealand combined with high
domestic prices have made dairy imports into India attractive. The day is not far when India will
become a net importer of dairy products. It is expected that initially large-scale imports will be of
dairy commodities, which will be used by Indian dairy cooperatives and companies to make
reconstituted milk and other branded dairy products. Imports of branded dairy products may
trickle in later.
Due to stagnant livestock herd size and shortage of fodder. Due to increasing population, per
capita availability of milk will increase by only about 1.5 per cent per annum. For an economy
growing at about 6 per cent per annum, this increase in availability will be grossly inadequate.
Production growing at only 3 per cent and consumption growing at more than double the rate is
obviously going to lead to a mismatch between demand and supply. This will create
opportunities for international dairy companies.
On one hand, India is expected to enter the international market with demand for commodities
like skimmed milk powder and butter oil. On the other hand, growing prosperity and fast growth
of organized modern retail and western style fast food outlets will lead to increased
consumption of products like cheese and table butter. This will throw up opportunities for
branded dairy products to enter this huge market of more than a billion people.

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The information for the project is taken from the following websites:

Also with the help and guidance of Mr. Pratik Patel and Mr. Jayesh Desai along with the book
Marketing Management by Phillip Kotler.

Contribution of the members in the project :

Name Contribution (%)

Sanket Bhararia 70
Maulik Sanghvi 15
Kinjal Sanghani 15