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“Institutional review for Amul’s Fresh Dairy

Products in Western line and South Mumbai.”
Submitted By
ABHIJEET KAMDI
MMS
Roll No. 21
Batch: 2012-2014

UNDER THE GUIDANCE OF

Prof. Dr. SUNITA SRIVASTAVA

A PROJECT SUBMITTED under part completion of MMS to
Chetana’s R. K. Institute of Management & Research
Bandra (East), Mumbai 400 051.
July, 2013

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ACKNOWLEDGEMENT
It is my great privilege to acknowledge and remain indebted to the people who by their rich and
varied contribution have helped me in understanding the various aspects included in my project.
The successful completion of the project would be incomplete without the mention of the people
who made it possible.
I would like to thank and express my deep sense of gratitude to my Faculty Guide Prof. Dr.
Sunita Srivastava. I am greatly indebted to her for providing me with her precious
guidance,valuable suggestions, without which it would have not been possible to complete the
project.
I would also like to thank my Project Guide Mr. Sameer Nagle who in spite of his busy schedule
has co-operated with me continuously and indeed, his valuable contribution and guidance have
been certainly indispensable for my project work.
I would also like to thank all respondents, and the dealers, who spared their valuable time and
enriched me with valuable information.
Last but not the least;I heartily thanks to my colleagues and friends who helped a lot during
project work.

Abhijeet Kamdi

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CERTIFICATE

This is to certify that the project presented by Mr.AbhijeetKamdi to the Chetana’s Ramprasad
KhandelwalInstitute Of Management And Research in part completion of the Master of
Management Studies under the title “Institutional review for Amul’s fresh dairy products in
Western line and South Mumbai.”has been done under the guidance of Prof. Dr.
SunitaSrivastava.
The project is in the nature of original work that has not so far been submitted for any Degree of
any other University/Institute. References of work and related sources of information have been
given at the end of each chapter.

Signature of the Guide Signature of the Director
Prof. Dr. SunitaSrivastavaProf. Dr. Jayshree Bhakay

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EXECUTIVE SUMMARY:
The objective of the project aimed at promoting Amul’s Fresh Dairy Products(Fresh Paneer,
Dahi, and Flavoured Yoghurt) in Institutes.Hence, it has become imperative to find out average
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daily consumption of these products and who are the existing competitors of Amul in this
product line. In order to execute the same, initial activities included visiting the 3 star, 5 star
Hotels.And I (in association with colleague) conducted Market Research in Institution Segment.
Aim was to study B2B marketing and analyze ways to improve Amul’s sale in this segment.
This Research includes interviewing Purchase Managers and Chef of hotels.
The Interview Questions were designed to extract information about the following

Purchasing Pattern of Institutes.

Consumption of Fresh Dairy Products.

Factors which affects sale of Fresh Dairy Products.

Amul’s position in Market against its Competitors.

This helped in arriving at important conclusions that the consumption of Fresh Dairy Productsin
Institutions such as Hotels is very large and local dairies and few well-known brands have
captured good Market Share. And we promoted Amul’s Fresh Dairy Productsand tried to
convince them by highlighting the offers and advantages of Amul’s product over other
competitor’s products.
Opportunity to capitalize on low consumption levels, growing institutional sales challenges,
competition with unorganized sector on price and quality all these covers under this project.

CONTENTS
Index

Page No.

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. Introduction.... Results &Interpretations…………………………........………………………………...... Literature review………………………………………………………………………26 3........ 1 Table No..……………………………………………………............. Conclusions.. Limitations of the project………………………………………......50 Bibliography……………………………………………………...………………………...… …………………............................….52 List of Tables Sr..32 4...... 10 .47 7....………………...………………………………………………………….. Research Methodology……....... No................34 5.…………………………………………………………………………......48 Appendix. 1..…………………...09 2......1.......... Recommendations……………………………………………….1 6 Page No... Table No.46 6.

Ultra high Temperature processing milk MNC:. No. 4. 4.9 Figure 4.5 Table No.7 Figure 4. 4.1 Figure 4. 4.6 Figure 4. 4. Figure 1.6 Table No.1 Figure 3.7 Table No.9 Table No.3 Figure 4.2 3 4 5 6 7 8 9 10 11 Table No. 4.5 Figure 4. 4.4 Table No.2 Figure 2.1 Table No.National Dairy Development Board CII:.Multinational Corporation or Company B2B:.8 Figure 4.8 Table No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Figure No.1 Figure 4.1 Figure 1.2 Table No.10 35 36 37 38 39 40 41 42 43 44 List of Figures Sr. 4.2 Figure 4.Hotel/ Restaurant/ Catering 7 Page No. 4. 11 15 30 32 35 36 37 38 39 40 41 42 43 44 .4 Figure 4. 4.3 Table No.Business to business NDDB:.Confederation of Indian Industry HORECA:.10 Abbreviations: 1) 2) 3) 4) 5) 6) UHT Milk:.

1. Introduction 1.1 Company Profile: Gujarat Co-operative Milk Marketing Federation 8 .

Bahrain. of Producer Members 3. The total milk drying capacity is 510 MT per day. It manufactures and markets a wide range of dairy products in India and abroad under the brand names of Amul and Sagar. UAE. on a regular basis.Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF) is India's largest food products marketing organization with annual sales turnover of Rs 13. GCMMF – An Overview Year of Establishment 1973 Members 17 District Cooperative Milk Producers' Unions (16 Members & 1 Nominal Members) No. Chocolates. Govt of India. Cheese Spreads.18 Million 9 . GCMMF is the largest exporter of dairy products from India. Mozzarella Cheese. UHT (Long life) Milk. Yemen. It manufactures and markets a wide range of dairy products in India and abroad under the brand names of Amul and Sagar. state of art technology. Qatar. Australia. Table Butter. Blended Breadspreads. Emmental Cheese. It has won 9 awards consecutively from APEDA. Madagascar.7 million litres per day.735 crore in the year 2012-2013. Dairy Whitener. Cheddar Cheese. innovation and eco-friendly operations to delight customers and milk producer. Singapore. Skimmed Milk Powder. Mission: The motivated and dedicated workforce at Amul is committed to produce wholesome and safe food of excellent quality to remain market leader through development of quality management system. Kuwait. employees and distributors. Full Cream Milk Powder. Ghee. GCMMF has 19 affiliated dairy plants with a total milk handling capacity of 6. Sweetened Condensed Milk. Oman. their customers. It exports our products in consumer packs and bulk to USA. Fresh milk. Gouda cheese. Sri Lanka etc. GCMMF is also the largest exporter of dairy products from India. Bangladesh. Vision: Amul’s vision is to provide more and more satisfaction to the farmers. The product categories are Infant Milk Food. Icecream and ethnic Indian sweets. Malted Milk Food.

914 Total Milk handling capacity per day 16.1 10 .66 billion litres Milk collection (Daily Average 201212.7 million litres 13) Cattlefeed manufacturing Capacity 5890 Mts.8 Million litres per day Milk Collection (Total . of Village Societies 16.2012-13) 4. 13735 Crore (US $ 2.amul.54 Billion) Source: www. 1.com Table No.No. per day Sales Turnover -(2012-13) Rs.

Figure 1.1 Map of India showing locations of different offices of Amul 11 .

the farmers of Kaira District approached Sardar Vallabhbhai Patel (who later became the first Deputy Prime Minister and Home Minister of free India) under the leadership of the local farmer leader Tribhuvandas Patel. These agents arbitrarily decided the prices depending on the production and the season. Often milk went sour. 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 it to Bombay city in turn. Milk Producers had to travel long distances to deliver milk to the only dairy. In winter. Instead of selling it to Polson (who did the same. the farmers of the area went on a milk strike refusing to be further oppressed. the Kaira District Cooperative was established to collect and process milk in the District of Kaira in 1946. Milk is a commodity that has to be collected twice a day from each cow/buffalo. Sardar Patel advised the farmers to form a Cooperative and supply milk directly to the Bombay Milk Scheme. Angered by the unfair and manipulative trade practices. but gave low prices to the producers). Moreover. He sent Morarji Desai (who later became Prime Minister of India) to organize the farmers. especially in the summer season.HISTORY OF AMUL The birth of Amul at Anand provided the driving force to the cooperative dairy movement in the country. as producers had to physically carry the milk in individual containers. India ranked nowhere amongst milk producing countries in the world in 1946. the producer was either left with surplus / unsold milk or had to sell it at very low prices. 1946 as a response to exploitation of marginal milk producers by traders or agents of existing dairies in the small town named Anand (in Kaira District of Gujarat). In 1946. the Polson Dairy in Anand. Thus. The Kaira District Cooperative Milk Producers Union Limited was registered on December 14. 12 .

13 .M. Amul Model cooperatives seem to be the most appropriate organizational force for promoting agricultural development using modern technologies. Verghese Kurien. Operation Flood.N. supply inputs and create value-added processing. and avoid a situation where milk cooperatives would compete against each other it was decided to set up an apex marketing body of dairy cooperative unions in Gujarat. which helped India emerge as the largest milk producer in the world.Milk collection was also decentralized.. Thus. the National Dairy Developed Board was formed and Operation Flood Programme was launched for replication of the Amul Model all over India. The Kaira District Co-operative Milk Producers Union Ltd. Banaskantha. The cooperatives are able to build markets. Thus. Dalaya. The success of the dairy co-operative movement spread rapidly in Gujarat. In order to combine forces. Thus. Indigenous R&D and technology development at the Cooperative had led to the successful production of skimmed milk powder from buffalo milk – the first time on a commercial scale anywhere in the world. Kurien along with Shri. Impressed with the development of dairy cooperatives in Kaira District & its success. the Gujarat Cooperative Milk Marketing Federation was established. Sabarkantha and Surat were organized. Village level cooperatives were established to organize the marginal milk producers in each of these villages. Shri Lal Bahadur Shastri. as most producers were marginal farmers who were in a position to deliver 1-2 liters of milk per day. The facilities at all levels are entirely farmerowned. the then Prime Minister of India during his visit to Anand in 1964. The Cooperative was further developed & managed by Dr. Within a short span five other district unions – Mehsana. The foundations of a modern dairy industry in India were thus laid since India had one of the largest buffalo populations in the world. professional management. which had established the brand name AMUL in 1955. the world’s largest dairy development programme. Baroda. The first modern dairy of the Kaira Union was established at Anand (which popularly came to be known as AMUL dairy after its brand name). Amul Model dairy cooperatives. H. the World Food Prize and the Magsaysay Award winner. in 1973. Dr. asked Dr. V Kurien to replicate the Anand type dairy cooperatives all over India. expand the market while saving on advertising. decided to hand over the brand name to GCMMF (AMUL). is the architect of India’s White Revolution. V. is based on the experience gained from the.

Member Unions: 1. Bhavnagar 16.. Vadodara 7. Ahmedabad District Cooperative Milk Producers' Union Ltd. Amreli District Cooperative Milk Producers Union Ltd. Banaskantha District Cooperative Milk Producers' Union Ltd.... The milk yield from animals. Gandhinagar 13. Sabarkantha District Cooperative Milk Producers' Union Ltd. Valsad District Cooperative Milk Producers' Union Ltd. Himatnagar 4.. which were maintained mainly on the by-products of the farm.. Bharuch District Cooperative Milk Producers' Union Ltd.and thereby generating employment for the rural masses anderadicating poverty in these undeveloped areas. Bhavnagar District Cooperative Milk Producers Union Ltd. Anjar 14 . the contribution to the farmer's income was not as prominent as his attachment to dairying as a tradition handed down from one generation to the next. Bharuch 10. was decidedly low. Surendranagar District Cooperative Milk Producers' Union Ltd. The return on the investment as well as the prospects of being able to market the product looked very bleak. Rajkot District Cooperative Milk Producers' Union Ltd. However. Anand 2. Kutch District Cooperative Milk Producers' Union Ltd. India has already demonstrated the superiority of this approach.. Baroda District Cooperative Milk Producers' Union Ltd.. It was a vicious cycle reinforced by generations of beliefs. Ahmedabad 11. Surat 6. Rajkot 12. Surat District Cooperative Milk Producers' Union Ltd. Kaira District Cooperative Milk Producers' Union Ltd... Traditionally dairying was a subsidairy occupation of the farmers of Kaira. Godhra 8... That together with the lack of facilities to market even the little produced rendered the scientific practice of animal husbandry irrational as well as unaffordable... Gandhinagar District Cooperative Milk Producers' Union Ltd. Mehsana District Cooperative Milk Producers' Union Ltd. Surendranagar 14. Mehsana 3. Amreli 15.. Panchmahal District Cooperative Milk Producers' Union Ltd. Palanpur 5. Valsad 9.

it is known as the‘Amul Model’ or ‘Anand Pattern’ of Dairy Cooperatives. 15 . replicated all over the country under the Operation Flood Programme. The abovethree-tier structure was set-up in order to delegate the various functions. Milk Procurement & Processing at the District MilkUnion and Milk & Milk Products Marketing at the State Milk Federation.amul. Responsible for Collection of Milk Responsible for Milk Production. This helps ineliminating not only internal competition but also ensuring that an economy of scale is achieved. This structure consists of a Dairy Co-operative Society at the village level affiliated to a Milk Union at the District levelwhich in turn is further federated into a Milk Federation at the State level. milk collection isdone at the Village Dairy Society.com/m/organisation Figure 1. As the above structure was first evolved at Amul in Gujarat and the.    Responsible for Marketing of Milk & Milk Products. Responsible for Procurement & Processing of Milk.2 THREE-TIER “AMUL MODEL”: The Amul Model is a three-tier cooperative structure.Sales Turnover for the last 10 years Source: http://www.

The village society further appoints a Secretary (a paidemployee and member secretary of the Management Committee) for 16 . having surplus milk after own consumption.1. cometogether and form a Village Dairy Cooperative Society (VDCS). The Village DairyCo-operative is the primary society under the three-tier structure. Village Dairy Cooperative Society (VDCS): The milk producers of a village. one vote. It has membership ofmilk producers of the village and is governed by an elected Management Committeeconsisting of 9 to 12 elected representatives of the milk producers based on the principleof one member.

Thus.  Providing input services to the producers like Veterinary Care. etc. TheMilk Union is the second tier under the three-tier structure.  Selling liquid milk for local consumers of the village. 2. 17 . mineral mixture sales. mineral mixture sales.  Supplying milk to the District Milk Union. It has membership of VillageDairy Societies of the District and is governed by a Board of Directors consisting of 9 to18 electedrepresentatives of the Village Societies. Artificial Insemination services. District Cooperative Milk Producers’ Union(Milk Union): The Village Societies of a District (ranging from 75 to 1653 per Milk Union in Gujarat)having surplus milk after local sales come together and form a District Milk Union.  Establish Chilling Centres & Dairy Plants for processing the milk received from the villages.  Conducting training on Cooperative Development.management of theday-to-day functions. fodder & fodder seed sales.  Providing support services to the members like Veterinary First Aid. ArtificialInsemination services.  Arranging transportation of raw milk from the VDCS to the Milk Union. cattle-feed sales. It also employs various people for assisting theManaging Director in accomplishing his/ her daily duties. Animal Husbandry & Dairying for milk producers and conducting specialised skill development & Leadership Development training for VDCS staff & Management Committee members. etc. The main functions of theMilk Union are as follows:  Procurement of milk from the Village Dairy Societies of the District. It also employs various people for assisting the Secretary inaccomplishing his / her daily duties. the VDCS in an independent entity managed locally by the milk producers andassisted by the District Milk Union.  Providing management support to the VDCS along with regular supervision of its activities. conducting training on Animal Husbandry & Dairying. The Milk Union further appoints aprofessionalManaging Director (paid employee and member secretary of the Board) formanagement of the day-to-day functions. cattle-feed sales. fodder & fodder seedsales. The main functions of the VDCS are as follows:  Collection of surplus milk from the milk producers of the village & paymentbased onquality & quantity.

Establish distribution network for marketing of milk & milk products.  Arranging Finance for the Milk Unions and providing them technical know-how.  Decide on the products to be manufactured at various Milk Unions (product-mix) and capacity required for the same.  Decide on the prices of milk to be paid to milk producers as well on the prices of support services provided to members. 3.  Conduct long-term Milk Production. Arranging transportation of milk & milk products from the Milk Unions to themarket. It has membership of all thecooperative Milk Unions of the State and is governed by a Board of Directors consistingof one electedrepresentative of each Milk Union. The main functions of the Federation are asfollows:      Marketing of milk & milk products processed / manufactured by Milk Unions. 18 .  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. Creating & maintaining a brand for marketing of milk & milk products (brandbuilding). State Cooperative Milk Federation(Federation): The Milk Unions of a State are federated into a State Cooperative Milk Federation. The State Federation further appoints aManaging Director (paid employee and member secretary of the Board) for managementof the day-to-day functions. Providing support services to the Milk Unions & members like Technical Inputs.  Pooling surplus milk from the Milk Unions and supplying it to deficit MilkUnions. Selling liquid milk & milk products within the District  Process milk into various milk & milk products as per the requirement of State Marketing Federation.  Establish feeder-balancing Dairy Plants for processing the surplus milk of the MilkUnions. It also employs various people for assisting the ManagingDirector in accomplishing his dailyduties. TheFederation is the apex tier under the three-tier structure.management support & advisory services. Procurement & Processing as well as Marketing Planning.

Due to this movement. the ‘Anand Pattern’ has demonstrated the following benefits:  It has multi-dimensional impacts.Operation Flood period to more than 60 MMT at the end of Operation flood Programme. 20 billion over a period of 20 years. One can continue to see the effect of these efforts as India’s milk production continues to increase and now stands at 90 MMT. Impact of “Amul Model”: The effects of Operation Flood Programme are more appraised by the World Bank in its recent evaluation report. Technical & Marketing functions. the per capita milk consumption doubled from 111 gm per day in 1973 to 222 gm per day in 2000. Very few industries of India have such parallels of development encompassing such a large population. Despite this fourfold increase in milk production. Similarly. This has been the most beneficial project funded by the World Bank anywhere in the World. 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.e.  Conflict Resolution & keeping the entire structure intact. This has also provided a definite source of income to the women leading to their economic emancipation. 20 billion over 20 years under Operation Flood Programme in 70s & 80s has contributed in an increase of India’s milk production by 40 Million Metric Tonne (MMT) i. Designing &providing training in Cooperative Development. the country’s milk production tripled between the years 1971 to 1996. The three-tier ‘Amul Model’ has been instrumental in bringing about the White Revolution in the country. 400 billion annually have been generated by an investment of Rs. 19 . It has been proved that an investment of Rs. an incremental return of Rs. Thus. Thus. from about 20 MMT in pre. there has not been drop in the prices of milk during the period and hascontinued to grow. 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. As per the assessment report of the World Bank on the Impact of Dairy Development in India.

hotels etc. Amul became the world's largest vegetarian cheese and the largest pouched-milk brand. Japan and China. And then distributor supplies stocks to retailers. Clarified Butter (Ghee) and Indigenous Sweets.  Power & problems of participatory organisations. and SAARC neighbours. West Indies. but it plans to venture again. Distribution Network: Amul have efficient distribution network. Thailand. The major markets are USA. Its bid to enter the Japanese market in 1994 did not succeed. more than 5. AMUL is available today in over 40 countries of the world. AMUL is exporting a wide variety of products which include Whole and Skimmed Milk Powder. and others such as Mauritius. AMUL is also the largest exporter of dairy products in the country. Importance of getting government out of commercial enterprises. and countries in Africa. and then finally stock reaches to the end consumer.000 retailers. Hong Kong and a few South African countries. Amul manufactures Ice-cream in Gujarat. Singapore. The Philippines. UHT Milk. In Mumbai.. Cottage Cheese (Paneer). From warehouse stock goes to different distributors. Amul has its warehouse in Andheri. 20 . the Gulf Region.000 wholesale dealers and more than 7. It has nearly 50 sales offices spread all over the country. Cold store manager distributes stock in various warehouses across India. In September 2007.00. The Amul brand GCMMF (AMUL) has the largest distribution network for any FMCG company. The stock goes to cold storage from Gujarat. It follows downstream channel of distribution. Australia. caterers. Amul emerged as the leading Indian brand according to a survey by Synovate to find out Asia's top 1000 Brands.

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com/m/about-us 22 .amul.Source: http://www.

So. and Flavoured Yoghurt). And they want to capture Institutions such as Hotels. etc for the sale of Fresh Dairy products (Fresh Paneer. It also wanted to get some insights of its competitors’ products offers and strategies. Hospitals.1. 2) To emphasize difference between products of Amul and its competitors. Hence. would be beneficial and profitable to the Organisation. Dahi. it has become imperative to find out average daily consumption of these products.3 Scope and objectives of the project: 23 .2 Definition and purpose of the project: The objective of the project is to get Institutional review for fresh dairy products. This project will benefit Amul to capture new market in the form of Hotels. 3) To promote Amul’s fresh dairy product amongst Institutions. Banks. Amul wanted to check the feasibility and gauge the potential market. Purpose of the objectives: Amul is launching Fresh Paneer in Mumbai. doing business with whom. It also aimed at promoting and penetrating its fresh dairy products in Hotels. 1. Flight Kitchen. Management objectives are: 1) To find out Institutes.

It includes articles related to the Food Industry.4 Salient Contributions of the project:  Institutes consume dairy products mainly supplied by unorganised sector. 5) To study strategies used by the competitors of Amul.  The project helped to know the perception of Institutes about Amul’s dairy products. Literature:It includes the theoretical frame work. 24 . 4) To study the response of institutions based on place strategy of Amul.  The project provides insights about how the distribution channel works. 1.  The project offers the opportunity to understand dairy industry as whole. 2) To study the response of institutions based on pricing strategies of Amul.Research Objective: 1) To study the response of institutions based on product strategies of Amul. Dairy Industry. 1. what are competitor’s activities to trigger their sales.5 Outline of the project report: Introduction:It includes company profile of Amul and its history. 3) To study the response of institutions based on promotional strategies of Amul.  The reason for consumption of dairy products from local supplier is due to low awareness about Amul products in that category. It also gives gist about Amul’s three tier model and its impact.

1 Theoretical framework. It helps to explore facts and data.Research Methodology:The research design specifiesthe method & procedure to conduct a particular research. Limitations of the Project:Limitations of the project are based upon the survey & sampling performed. Literature Review 2. Recommendations:Specific recommendations were submitted to the Territory sales manager during the project & most of them were approved. Result & Interpretations:The results & interpretations of the study highlighted in the project reflect various factors which are considered by Purchase Managers while purchasing dairy products. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale. an increasing amount of retailing is 25 . 2. In above project the research methodology used is Exploratory Research. background theory: RETAILERS: Retailers are part of an integrated system called the supply chain. Retailing can be done in either fixed locations like stores or markets. door-to-door or by delivery. In the 2000s. and then sells smaller quantities to the consumer for a profit. Conclusion:The conclusion drawn is extracted from interaction done with Purchase Managers and Chefs.

2. Online retailing. which not only enhances milks nutritive value but also makes milk a very tasty drink for people of all ages. It is easy to digest and helps muscle building and nurturing growth. eyes and central nervous system of a child. DHA: Brain Development Docosahexaenoic Acid (DHA) is an essential fatty acid required for optimal development and function of the brain. and then delivered via a courier or via other services. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. 27 Essential Nutrients: Complete Wellness Amul PRO contains 27 essential nutrients (proteins. Food processing industry is of enormous significance for India's development because of the vital linkages and synergies it promotes between the two pillars of our economy. vitamins and minerals) that help in boosting immune system enhance metabolism and nervous system functions and helps children be mentally sharp and physically agile. such as delivery. a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order. AMUL PRO – Amul PRO is a malt based milk additive. helping your child strengthening the immunity and stay healthy. streets with few or no houses or in a shopping mall. It comes from the House of Amul. Key product attributes of Amul PRO are as follows: Whey Protein: Muscle building & Immunity Whey Protein is the purest and most essential form of protein. especially kids.2 Review of existing literature: Food Industry in India Ministry of Food processing of India Estimates growth of Dairy Market at growth rate of around 8% over next 5 years from base 2009-10. such as for the public. are forms of non-shop retailing. The term "retailer" is also applied where a service provider services the needs of a large number of individuals. It plays an important role in enhancing your childs immunity by protecting it from allergies like Asthma. the brand which is known all over for providing quality products at value for money price. Shops may be on residential streets. electronic payment. Shopping streets may be for pedestrians only. Retailing includes subordinated services. Why Protein is often referred to as Fast Protein. who need milk and nutrition for healthy growth. provides quick nourishment to muscles. industry and agriculture. Fast growth in the food processing sector and simultaneous improvement in the development of value chain are also of great importance to 26 .done using online websites.

The Food Processing Industry sector in India has been accorded high priority by the Government of India. paneer are increasingly getting organised with players investing heavily in technology and infrastructure to meet the surging needs and demand in both domestic and export markets. industrial licenses and 100% export oriented units envisaging an investment of Rs. Given the trade in production of food commodities.000 crore (US $ 69.2 billion). Dairy and Food Processing. the Government has also approved proposals for joint ventures.4 billion) have been proposed in various segments of the food and agro-processing industry. skills and equipment.250. human. cheese. Out of this. the turnover of the total food market is approximately Rs. Canning. As per a study conducted by McKinsey and Confederation of Indian Industry (CII).achieve favourable terms of trade for Indian agriculture both in the domestic and the international markets. 9100 crore (US $ 18. icecreams and other traditional milk based products like dahi. 53. foreign collaboration.000 crore (US $ 22.100 crore (US $ 4. Dairy Industry of India: The Marketing White Book says that processed milk products such as ghee.13.19. It is expected to attract phenomenal investment in capital.4 billion) out of which value-added food products comprise Rs. till February 2000. the Food Processing Industry in India is on an assured track of growth and profitability. with a number of fiscal relief and incentives.2 billion). India boasts of its credit of being the 27 .800 crore (US. technological and financial areas. Packaging. Even marginal reductions in these losses are bound to give us better returns and thereby improve the income level of the farmers.80. Health food and health food supplements are other rapidly rising segments of this industry. Besides this. Even important is the crucial contribution that an efficient food processing industry could make in the nation's food security for instance the post-harvest losses of selected Fruits and Vegetables are about 25% to 30% in our country. Frozen Food/Refrigeration and Thermo Processing. for example. projects of over Rs. The total food production of India is estimated to double in the next ten years. During the last one decade. to encourage commercialisation and value addition. The major interventions in this context are. Specialty Processing. Since the liberalisation in August. India moved from a position of scarcity to surplus in Food. butter. foreign investment is over Rs.80 billion) during the same period. The sector however has to go a long way. Hence there is an opportunity for large investments in food and food processing technologies.

India’s modern dairy sector has expanded rapidly. While the dairy industry in India is growing at a rapid phase. 28 . The second section involves an in-depth understanding of dairy consumption patterns among Indian consumers and the potential of value added dairy products. milk processing. The Experts forecast that the sales of dairy products in India will nearly double its size from INR 2. India represents one of most lucrative dairy markets. India's dairy market is multi-layered. Some of the crucial areas in which foreign technologies will be useful in the Indian scenario include raw milk handling. The third section investigates the usage of natural colouration in dairy products and evaluates their current and future potential.6 Trillion (US$ 60 Billion) to around INR 5. Apart from native methods found implemented in the dairy industry sector. the liberal economy offers a very great number of opportunities for foreign investors and MNCs to take advantage of the huge potential in this industry segment. Size of Indian Dairy industry: Being the world’s largest producer and consumer of dairy products. The study which has been undertaken using both desk research and two waves of qualitative primary research has analyzed three aspects of the Indian Dairy Market. Government dairy distributes 90% of its milk in sachets or in containers while remaining 10% is marketed as butter. some of the important areas in the Indian dairy industry can be upgraded by introducing differentiated technologies and devices imported from overseas. The first section quantifies the Indian dairy market into twelve major classes and investigates the current and future opportunities in each of these classes. private sector only markets 20% of milk and remaining 80% of milk is made into preparations suitable for exports. Both public and private sector have contributed to the dairy industry growth in India. packaging and manufacturing value-added products.largest milk producer on the earth besides offering a galaxy of opportunities to entrepreneurs across the world in the dairy industry. Indian Dairy Market Report & Forecasts 2011-2016 provides an analytical and statistical insight into the Indian Dairy market.1 Trillion (US$ 115 Billion) by 2016. India has been alluring a large number of investors to invest in the milk production and dairy products manufacturingarena. On contrary. The dairy industry in India moves ahead with the chief aim of enhancing milk production upgrading the processing of milk with the help of recent technologies. India is recognized as a biggest and fastest growing market in the world for milk and milk products. ghee etc.

Figure 2. They handle less than 10.Indian Dairy Structure: FPI report says that “India has a unique pattern of production.000 litres of milk per day. which is not comparable with any large milk producing country. They are involved in selling raw liquid milk. The Unorganized Sector comprises of numerous small and/ or seasonal milk producers/ traders that are not registered under MMPO. There are no official records on number of such unorganized dairy units. Private or Others (like Government Dairies). but have a major share in these milk products. 1992. boiled liquid milk as well as selling many traditional milk products usually at local levels. while the unorganized dairy sector handles about 70% of marketable milk. The organized dairy sector procures around 30% of the marketable surplus. Approximately 70 million households in the country are engaged in milk production.” The Dairy Industry handling the marketable surplus of the milk is broadly divided into the following two groups:  Organized Sector  Unorganized Sector The Organized Sector refers to the dairy units registered under the Milk and Milk Products Order. They are registered as Co-operatives.1 29 . processing and marketing of milk.000 litres of milk per day or above. These dairies have capacity of handling 10.

and rubber hoses for its vehicles. a finished vehicle sold to the consumer.In 2011. 30 . The final transaction. Many businesses are now using social media to connect with their consumers (B2C). where this model was replicated. The primary reason for this is that in a typical supply chain there will be many B2B transactions involving sub components or raw materials. In addition. For example. such as between a manufacturer and a wholesaler. The overall volume of B2B (Business-to-Business) transactions is much higher than the volume of B2C transactions. each party involved may have different reasons for buying or not buying a particular brand. this can be referred to as “B2B” communication. Business to Business: Business-to-business (B2B) describes commerce transactions between businesses. they are now using similar tools within the business so employees can connect with one another. an automobile manufacturer makes several B2B transactions such as buying tires. however. Contrasting terms are business-to-consumer (B2C) and business-to-government (B2G). in essence leading to the White Revolution. The Brand Trust Reportsaid that Amul is the Most Trusted brand in the Food and Beverages sector. is a single (B2C) transaction. connecting the dairy farmer to the consumer through its organic network. The success of this model ignited interest across India. The case provides sufficient insights and learning to develop a framework to comprehend the basic essence of a prosperous social enterprise factors that make it successful. and only one B2C transaction. B2B branding is a term used in marketing. In B2B there are usually committees of people in an organization and each of the members may have different attitudes towards any brand. specifically sale of the finished product to the end customer. glass for windscreens. or between a wholesaler and a retailer. Some characteristics of organizational buying / selling behavior in detail:  For consumer brands the buyer is an individual. When communication is taking place amongst employees. B2B is also used in the context of communication and collaboration. Asian Case Research Journal says that the Amul Model narrowed the gap between the producer and the consumer.

the Nature of Research is Exploratory. the decision-making process for B2B products is usually much longer than in B2C. no research has been undertaken in this area by the company. 2.3 Comparison of current project work with the work reported in the literature by others researchers: Since the company has recently decided to venture in Institutional sales. Research Methodology: 3.1. Since there are more people involved in the decision making process and technical details may have to be discussed in length. samples and mock ups. Exploratory Research helps to explore facts and data.1 Nature of Research. Also no relevant literature regarding the same could be found from any other individual source. 3.  Companies seek long term relationships as any experiment with a different brand will have impacts on the entire business. but the buyer may ask for prototypes.Exploratory Research Since the variables in Research Objective are unknown. 31 . Not only is it required to meet the buyer numerous times.1. It helps to get in-depth information about the subject. the selling process involves high costs. Brand loyalty is therefore much higher than in consumer goods markets. Such detailed assessment serves the purpose of eliminating the risk of buying the wrong product or service. Research Design: Research Design Exploratory Research Conclusive Research Figure 3.  While consumer goods usually cost little in comparison to B2B goods.

In Hotels.Research Methodology. various newspapers.Qualitative Research As the Nature of Research is Exploratory.1.4 Data Collection Instrument: Tools used for Data collection are Interviews and Observations. Data Collection Sources: Sources used for data collection are primary and secondary. 3. and other internet websites. Also primary data was collected with the help of observations.1. advertisements. Secondary Data:Secondary Data is collected from Amul’s official website. Normally surveys are carried out to obtain primary data. Along with this various observations were recorded during this process.Interviewers can also show actual products.e. 3.Personal interview can be used in any type of questionnaire and can be conducted fairly quickly. journals. Here sample size does not matter. 3. various reference books. Personal Interviewingis very flexible and can be used to collect large amounts of information.1. A survey is a research technique used to gather information from a sample of respondents by taking Interviews. depth of the research is more important.2. 32 . Qualitative Research helps to get in-depth study or analysis.3. packages and observe and record their reactions and behaviour. Data Collection Methods: Method used for Data collection is Survey. In this Research the appropriate Respondents were Purchase Managers and Chefs in the Hotels. Purchase Manager and Chef in the Hotels. Purchase Managers and Chefs were interviewed and information was collected. Primary Data Survey Experiment Personal Interview Primary Data:Primary data is collected by having direct interaction with respondents i. But themost important thing is choosing right Respondent who is qualified to answer the questions.

1. 33 . 4.5. Sampling Frame: Sampling frame comprises all the elements of a population with proper identification that is available to us for selection at any stage of sampling. Hotels in Mumbai is Sampling frame. On the basis of that pitching Amul’s products to the respective Purchase Manager. For this we adopted the following approach.e. Convenience Sampling is chosen.3. Element: An element comprises a single member of population. In this we were required to observe and investigate a potential market for Amul’s products in these Institutions. Results and Interpretations Institutional Analysis: As a part of this project Amul asked us to visit Institutes in Western and Southern areas of Mumbai.1. 3.Probabilistic Sampling. 6. In Non. Identifying the Target Hotels. 1. 4. Determining the scope for Amul products. the requirement of these hotels and to identify a potential gap or the scope to create additional market for Amul. The only criterion for selecting sampling units in this project is the convenience. focused group study. Taking appointment of the Purchase Manager. Sampling Methodology: Non.After the completion of survey the analysis of survey was carried out in order to get the conclusion of the survey. To achieve this objective we took note of various products of competitors available in these Hotels. 2. In this case.6 Data Analysis Technique: The data analysis techniques used were both qualitative as well as quantitative.Probabilistic Sampling. The quantitative technique was used since the research includes the survey in it & qualitative was used because the Purchase Managers were interviewed personally i. Sampling Plan: Population: Population in this case refers to all Institutes in Mumbai. Sample Size: 30 3. In this case an element is every single Institute. Noting down the various competitors’ products consumed by Hotels. Convenience Sampling is used to obtain information quickly. 5. Visiting Hotels and having discussion with Purchase Manager.

Analysis of Interviews 1.7. 10. 8. 9. How much is the consumption of Fresh Paneer? No. 4. of Hotels 7 10 6 3 4 Quantity (kg/day) 3 to 5 10 to 20 30 to 40 50 to 60 80 to 100 Table No. Highlighting the various offers and schemes for bulk purchase. Making him aware of the various Amul’s Fresh Dairy Products available. Trying to get as many orders as possible. Emphasizing the benefits of Amul’s products over competitors.1 34 .

 General observation is that Hotels which have maximum accommodation consumes highest quantity of paneer. Which packaging do you prefer? No. 2.  Consumption of Paneer is directly proportional to the number of customer that dines in the Hotel. 4. of Hotels Blocks (kg) 15 14 1 2 1 3 Table No.2 35 .1  Graph shows that maximum consumption of Paneer is in range 10-20 kg.Figure 4.

220 Table No.  Hotels generally prefer smaller packaging of 1 or 2 kg so that it can be consumed within small time frame. of Hotels Rs. 3. (per kg) 6 Rs. 4. 170 3 Rs.2  This shows that most of the Hotels use packaging in proportion to their daily consumption. 200 3 Rs.Figure 4. 190 4 Rs.3 36 .  This means that the Hotels having higher consumption of Paneer use 2 kg packaging and Hotels with less consumption use 1 kg packaging with few exceptions. 160 5 Rs. At what price do you purchase Paneer? No.

How frequently do you purchase Fresh Paneer?  Every Hotels purchase paneer daily. Paneer cannot remain fresh for more than a day. Who is supplier of fresh paneer? Suppliers Darshan Dairy Gupta Dairy Royal Dairy Punjab & Sindh Shree Krishna Modern Dairy No.  Therefore. 4.  Conversely we can also say that higher is the quantity ordered more bulk discounts are claimed and lesser is the price at which the paneer is purchased. the order cycle of paneer is one day. purchased at lower price.3  From the above graph it is obvious that lesser the price higher purchase and consumption.  This was proven by the fact that Hotels which had highest consumption of paneer and ordered in bulk. 5. of Hotels 7 5 3 8 3 4 Table No.  Shelf life of paneer is around one day. 4.Figure 4.4 37 .

4. Paneer is an item which has less shelf life. 6.4     All are Local suppliers. of Hotels 7 10 6 5 2 Quantity (kg/day) In-house 10 to 20 30 to 50 60 to 80 90 to 100 Table No. They supply Fresh Paneer daily. So. The price they quote is presumed to be less.5 38 .Figure 4. it is purchased locally to avoid problems involved in logistics such as problems related to freshness and quality. How much is the consumption of Dahi? No.

7. Which packaging do you prefer? No.  General observation is that Hotels which have maximum accommodation consumes highest quantity of Dahi.Figure 4. of Hotels 10 13 Packaging 1 kg pouch 2 kg tub Table No.5  Graph shows that maximum consumption of Dahi is in range 10-20 kg.6 39 . 4.  Consumption of Dahi is directly proportional to the number of customer that dines in the Hotel.

6  This shows that most of the Hotels use 2 kg tub. Who is supplier of Dahi? Supplier Mother Dairy Punjab & Sindh Darshan Dairy Shree Krishna No.Figure 4. of Hotels 8 6 5 4 Table No.  Also 1 kg pouch is inconvenient to handle and manage. 8. adulteration.  2 kg tub is preferred because Dahi is an item consumed on the go and ordering 1 kg pouch would lead to problem such as spillage. 4.7 40 .

Do you use Flavoured Yoghurt? No.8 41 . 9. Mother Dairy gets tough competition from Local suppliers.Figure 4.  Hotels generally prefer to purchase Dahi from the dairy in its vicinity. 4.e.7  Branded product i.  This is gives them advantage that the nearby dairy can easily cater to the shortfalls in their requirements. of Hotels 14 16 Response YES NO Table No.

Which brand do you serve in Hotel? Brands Danone Mother Dairy Dabon In-house No.  Also it was observed that the Hotels that generally cater to the higher income group include Flavoured Yoghurt in their menu list. 10.  Thus it can be said that awareness level of Flavoured Yoghurt is still considerably low.8  Graph shows that less than 50% Hotels use Flavoured Yoghurt. 4. of Hotels 6 3 2 3 Table No.Figure 4.  An inference that can be drawn from this is that Flavoured Yoghurt is yet to find the liking with the common masses.9 42 .

9  DANONE is preferred over other brands because of its brand reputation and International presence.  DANONE gives better services and competitive offers. 4. How much is the consumption of Flavoured Yoghurt? No. of Hotels 4 5 2 100 ml cups 30 to 40 cups/day 50 to 60 cups/day 70 to 80 cups/day Table No.10 43 .  DANONE has penetrated the market better and faster than its competitors. 11.Figure 4.

Observation and Findings: 1) The quality of Amul products is appreciated by most institutions.10  Flavoured Yoghurt is yet to find the liking with the common masses. it is not so popular item. Chef first decides as per test and quality. 2) In Hotels.  Since Flavoured Yoghurt is newly introduced. 4) Among the three new products. 7) The supply chain of Amul is what restricts it from increasing its market share in institutions where regular and immediate supply is very important for fresh dairy products.Figure 4. 6) Also there is unhappiness with credit facilities adopted by Amul. 3) Amul has not approached Hotels in Western Mumbai. 44 . Flavoured Yoghurt is not consumed at many Hotels. 5) Institutes prefer freshly available paneer from local vendors over packaged form of paneer from brands. and then Purchase Manager takes final decision according to financial viability.  There is more room for improvement in sales.

 Freshness is one of the major reasons why Institutions did not prefer packaged paneer. Conclusions:  From the research it was found that the awareness about Amul Flavoured yoghurt is relatively low. hence there is scope to improve the sales of Amul products. 10) In spite of this when offered for Sampling of Amul’s products many Purchase Managers readily agreed.  Advertising can play a significant role in generating awareness which is relatively low in terms of flavoured yoghurt. 45 .  Personally reaching to Institutions and promoting the products can go a long way in increasing the market share of Amul’s Fresh Dairy Products. 9) Due to this there is inhibition in the minds of Purchase Managers to switch to new products offered by Amul fearing the repetition of the same.  Amul has good brand perception in the eyes of Institutes.8) Institution have standards when it comes to fresh dairy products to which the Supplying organization must adhere to if it wants to supply products to the institution. 11) Institutions at the higher end of the spectrum demand higher quality and are willing to pay a higher price.

Limitations  The Area for research was from South Mumbai to Western Mumbai (Andheri). So.  Few Hotels have their main branch in some other cities.  Purchase Manager of Some Hotels did not give appointment specifying the reason that they are out of town for 15 days and so on. 46 . they did not have authority to make purchase decision.

 Refine Delivery Schedules: 47 .Recommendations  Explore corporate selling in star hotels: Amul has not yet explored its full potential in Hotel industry. This is required because Hotels believes in economies of scale i. Amul should offer considerable discounts for bulk purchase. Therefore. They only need to approach the Institutions and through its sale persons and interns Amul should find out which competitors’ product are being sold and with what offers.e.  Approach: Amul is very strong brand in dairy products. more they purchase they want it at comparatively less price. Amul can compensate for the lesser price earned per unit by selling large volumes of its products.  Considerable discounts: In order to get big orders. Providing samples of the products to taste will help to get acceptance from them. Amul can then provide Institutions with similar or better offer and more often than not Amul will get orders because of its strong reputation and trustworthiness as a brand. Amul need not go for very aggressive marketing and selling strategy. Decision makers in hotels are Chefs and purchasing team.

Amul can promote those products with attractive pitching. Also research can be done in North India to get potential prospects. the order is not delivered in time and they have to face lot of inconvenience once or twice a year. This is because some Institutes are not happy with the delivery of existing Amul’s product. The project can be extended to approach Restaurants and Caterers.  Amul can appoint Distributors specific for institutions in all areas in the city. Hence there is lot of scope for future work to do research in whole Mumbai. In this way customer will get aware of Flavoured Yoghurt and demand for the same.Some Hotels complained that on ordering Amul butter. Frozen Yoghurts. So. Amul can promote Ice-creams.Amul should refine the delivery schedules so as to be able to cater to the Institutes. Amul can reach out to maximum number of customer by focusing more on ads displayed on LCD/ LED screen in Institutions. Along with Fresh Dairy Products. Scope for future work The Area of research was from South Mumbai to Western Mumbai (Andheri). Every year Amul launches new range of products. 48 . then awareness will increase among the people and they will demand for it in Hotels.  Advertise to increase awareness: Amul should advertise for the Flavoured Yoghurt.

Who is supplier of Dahi? 9. Which packaging do you prefer? 8. How much is the consumption of Fresh Paneer? 2. How much is the consumption of Dahi? 7.Appendix (A) 1. Which brand do you serve in Hotel? 11. How frequently do you purchase Fresh Paneer? 5. How much is the consumption of Flavoured Yoghurt? 49 . Do you use Flavoured Yoghurt? 10. Which packaging do you prefer? 3. Who is supplier of fresh paneer? 6. At what price do you purchase Paneer? 4.

Marriot 6) Trident 7) Hotel Sea Princess 8) Shree Krishna 9) Taj Lands end 10) Hotel Midland 11) Juhu Residency Boutique 12) Summer Harvest 13) Hotel Bawa Continental 14) Hotel Sea Side 15) The Orchid 16) ITC Maratha 17) Hyatt Regency 18) The Intercontinental 19) Sun and Sand 20) Ramee plaza 21) Ramada Palm grove 22) Hotel Hilton 23) Hotel Transit 24) Copper Chimney 25) Hotel Airport International 26) The Ambassador 27) Hotel Accord 28) VITS 29) Hotel Courtyard Marriot 30) The Emerald 50 .Appendix (B) List of Hotels: 1) Taj Mahal Palace 2) Taj Vivanta 3) Grand Hyatt 4) Regency hotel 5) J. W.

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