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A

Marketing Research Report


On

Consumer's preference towards Amul milk


and local milk Traders

SUBMITTED TO:

Dr. J. S. PANWAR

PREPARED BY:

Jayesh Kalal

(13046)

Hardik Pathak

(13056)

Neha Sharma

(13066)

Unnati Raj

(13079)

BATCH:

2013-15 (MBA SEM II)

DIV:

G. H. Patel Post Graduate Institute of Business


Management
Sardar Patel University
Vallabh Vidyanagar-388120
(2013-2015)
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PREFACE
In the life of the Man success plays vital role. Success is necessary in every part of life. Without
success one cannot live happily. In a competitive world every person always try to get success in any field,
and to be succeed in any field we should follow some elements of success like hard work, confidence,
positive attitude, good planning and so many. As a student to succeed in our education life, and to succeed
M.B.A. practical knowledge is necessary.
In 2nd semester of M.B.A. we have to prepare a marketing research report as a part of Marketing
Management subject. We have done our report on "Consumers' preference towards Amul milk & local
milk traders" and we have surveyed Anand and Vidyanagar area for our research purpose. After getting all
these information we have prepared our fair report.
We hope that the report will provide all necessary information about the research as per the
requirement of syllabus but it is also possible that mistake may be there and kind suggestions are also
required.
With Thanks
Jayesh Kalal
Hardik Pathak
Neha Sharma
Unnati Raj

ACKNOWLEDGEMENT
We would like to thank Dr. J. S Panwar for providing us the opportunity to conduct a market
research on comparative study of consumers' preference towards Amul milk and local milk traders. Our
group of four students will hopefully provide you with valuable information through this research.
The research project will help all the interested people to understand the trend set, brand loyalty and
other useful information. Lastly we would like to thanks all those who have helped us directly or indirectly
in conducting this research.
Thank you again for this opportunity.

Jayesh kalal
Hardik Pathak
Neha Sharma
Unnati Raj

TABLE OF CONTENTS

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PARTICULARS
INTRODUCTION TO MARKETING RESEARCH
RESEARCH OBJECTIVE
RESEARCH MEHTODOLOGY
-TITLE
-OBJECTIVES
-SCOPE OF THE STUDY
-RESEARCH DESIGN
-SAMPLING METHODOLOGY
-LIMITATIONS
-RESEARCH SCHEDULE
DATA ANALYSIS & INTERPRETATION
INFERENCE FROM THE STUDY
CONCUSION
BIBLIOGRAPHY
QUESTIONNAIRE

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INTRODUCTION TO MARKETING RESEARCH


Market research is any organized effort to gather information about markets or customers. It is a very
important component of business strategy. The term is commonly interchanged with marketing research;
however, expert practitioners may wish to draw a distinction, in that marketing research is concerned
specifically about marketing processes, while market research is concerned specifically with markets.
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Market research as defined by the ICC/ESOMAR International Code on Market and Social Research
includes social and opinion research is the systematic gathering and interpretation of information about
individuals or organizations using statistical and analytical methods and techniques of the applied social
sciences to gain insight or support decision making.
Market research is for discovering what people want, need, or believe. It can also involve
discovering how they act. Once that research is completed, it can be used to determine how to market your
product.
Questionnaires and focus group discussion surveys are some of the instruments for market research.
There are some important things to be considered:

Market information

Through Market information one can know the prices of the different commodities in the market, as well as
the supply and demand situation. Information about the markets can be obtained from different sources,
varieties and formats, as well as the sources and varieties that have to be obtained to make the business
work.

Market segmentation

Market segmentation is the division of the market or population into subgroups with similar motivations. It
is widely used for segmenting on geographic differences, personality differences, demographic differences,
use of product differences, psychographic differences and gender differences.

Market trends

Market trends are the upward or downward movement of a market, during a period of time. The market size
is more difficult to estimate if one is starting with something completely new. In this case, you will have to
derive the figures from the number of potential customers, or customer segments.

Besides information about the target market, one also needs information about one's competitors,
customers, products, etc. Lastly, you need to measure marketing effectiveness.
A few techniques are:

Customer analysis

Choice Modeling

Competitor analysis

Risk analysis

Product research

Advertising the research

Marketing mix modeling

RESEARCH OBJECTIVE
Gujarat Co-operative Milk Marketing Federation is a dairy product producer and distributor. Amul is
one of its well known brands. Under this brand name G.C.M.M.F. sells varieties of milk, i.e. Amul Fresh,
Amul Gold, Amul Taaza, Amul Lite, Slim and Trim, Amul Shakti.

Along with Amul milk there are local milk suppliers operating in the market. All these local milk
suppliers have their own regular customers. So, it is interesting to know the consumers preference towards
Amul Milk and local milk traders.
By conducting a comparative study between Amul and local milk suppliers we would be able to
know consumers preference. We would also be able to know various reasons behind consumers preference
and future trends towards milks purchase and consumption.

RESEARCH METHODOLOGY
Topic: Consumers' preference towards Amul milk and Local milk traders
The Indian dairy sector has an annual production of 70 million metric tons and it is the second largest
in the world next to USA. In India there are more than 75,000 dairy co-operative societies which are spread
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all over the country and their membership is more than 10 million. Marketing is an integral functional
activity of all human beings in their day-to-day life.
It is a body of knowledge, capable of influencing the development of individuals and also
organization. The consumers play a vital role in the marketing of dairy milk. Several factors influence the
consumers in buying the milk. The specific objective of the present study is to know the preference of
consumers towards Amul brand of milk and milk of local milk traders marketed in the Anand & Vidya nagar
area.

OBJECTIVES IN SPECIFIC
The main objective of this research is to gain insights regarding preferences of the households in
purchase of milk. The final analysis will assist in determining which one has a good command over the
market and for what reasons.
Specific Objectives:
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To determine the consumption of milk by a household on daily basis.


Through this research we can come to know about the daily usage of the milk by the households.
How many households are consuming how much milk and which one? It can also help in determining the
intensity of different milk sources and other parameters will also helps due to which reasons the
consumption has affected.
To know the perception of households towards Amul milk and Loose Milk.
Another purpose is to know about the perception of the households about the different available
sources in the market. What the consumers think about the sources available in the market and what they
think about the different aspects like quality, service and price of the different sources.
To know about consumers satisfaction and brand loyalty.
To know how much the consumers are satisfied with their current source whether they are fully
satisfied or partially satisfied and what makes them to loyal towards their current source. What they think
about the source and what is their expectation from the source provider.

SCOPE OF THE STUDY


A good research design will ensure that the marketing research project is conducted effectively and
efficiently. We frame whole project on following basis:-Define the information needed
-Design the exploratory research
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-Specify the measurement and Scaling procedures


-Construct Questionnaire or appropriate form of data collection
-Specify the sampling process and sample size
-Develop a plan of data analysis.

RESEARCH DESIGN
An exploratory research will be conducted in the beginning in order to gain initial insight to key
factors regarding preferences of the households in purchase of milk. Once a clear understanding of the
subject is formed, causal research will be conducted to identify the perception of households towards Amul
milk and Loose Milk and in addition to that there satisfaction level and brand loyalty will be know.

SAMPLING METHODOLOGY
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In this research, we have used primary data for communication study. Here Quantitative Research
can be done for following reasons.
-To quantify the data and generalize the results from the sample to the population of interest.
-Data collection in a very structured way.
-Statistical Data Analysis.
Household we ask respondent to fill self-administered Questionnaire. Questionnaire is of only closed
ended Questions.
Sampling design

Target Population: The target population for the research is defined as follows:

Element: Any Households of Anand & Vidyanagar

Sampling Unit: Any household

Sampling Size: 100

Year: 2010

Sampling technique
Personal In-home Interviews, respondents are interviewed face-to-face in their homes. Ask the
questions, record the responses.
Statistical tool
SPSS Software
LIMITATION OF STUDY

This research will cover only the respondents from Anand and Vidyanagar.

Due to time and resource constraint, the sampling size will be limited to only 100 respondents.

No previous experience of conducting research.


RESEARCH SCHEDULE

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DATA ANALYSIS
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Brand Wise Frequencies.


Brand
Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Amul

71

71.0

71.0

71.0

Local Milk

24

24.0

24.0

95.0

Other

2.0

2.0

97.0

Both

3.0

3.0

100.0

Total
100
100.0
100.0
Looking at above data it is obvious that, as much as 71 percent of sample is consuming Amul milk and 24
percent of sample is consuming Local Milk in v.v.nagar and anand. So major chunk of milk market is
divided between Amul and Local Milk with pendulum heavily favored in Amul Milk. As much as 95 percent
of sample is using Either Amul or Local Milk, 2 percent is gone to other Milk provider and remaining 3
percent is consuming Amul as well as Local Milk.

Usage Wise Frequencies

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Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Up to 1 Ltrs

44

44.0

44.0

44.0

1.1-2 Ltrs

36

36.0

36.0

80.0

2.1 3 Ltrs

15

15.0

15.0

95.0

3.1 and Above

5.0

5.0

100.0

Total

100

100.0

100.0

This table shows Daily consumption of milk of v.v.nagar and Anand sample. From this we can say 80
percent of sample is consuming up to 2 liters of milk on an average. Only 20 percent of people is consuming
2.1 liters and above, on an average.

Satisfaction level

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Satisfaction
Valid

Frequency

Percent

Valid Percent

Cumulative Percent

1.0

1.0

1.0

Dissatisfied

1.0

Neutral

19

19.0

19.0

20.0

Satisfied

32

32.0

32.0

52.0

Highly Satisfied

48

48.0

48.0

100.0

Total

100

100.0

100.0

Highly
Dissatisfied

This sample shows overall satisfaction level they have regarding milk, its availability, price, quality and all
sorts of thing. It shows that 80 percent of consumers are satisfied with over all milk purchase and quality
.out of remaining 20 percent, 19 percents have shown neutral preference and with 1% is remaining as Highly
dissatisfied.

Occupation - Brand Cross Tabulation

Percent

Cases
Missing
N
Percent

100

100.0%

Valid
Brand * Occupation

.0%

Total
N

Percent

100

100.0%
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Govt.
Brand

Occupation
Private

Employee

Employee

Business

Other

Total

Amul

21

13

13

24

71

Local Milk

11

24

Other

Both
Total

0
26

2
17

1
21

0
36

3
100

This table shows consumption of milk occupation wise. Sample shows that out of 71 consumers of Amul
milk, 21 are government employees and 24 are others which mainly constitute of Students in v.v.nagar.
Private employees and businessmen are 13 each. Out of 43 surveyed employees, 34 were consuming Amul
milk from that employees are tends towards using Branded Milk. As v.v.nagar, Anand milk market is divided
mainly between Amul and local Milk, those who do not prefer Amul milk, are consuming local milk.

Current Source
2 years and
Brand

6 months

0.51-1 year

1.1 2 years

above

Total

Amul

11

49

71

Local Milk

12

24

Others

Both
Total

0
9

1
19

0
7

2
65

3
100

This table shows that, since what time a consumer is purchasing milk from its current source? As table
shows that out of 71 Amul consumers, 49 are consuming it from its current source for more than 2 years or
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more. This shows that consumers are comfortable enough with distribution system Amul has to reach to its
potential customers. 50 percent of Local milk consumers are also sticking to its current source. It also shows
that consumers are more often than not will like to purchase milk from same source , unless and otherwise
demanded. This can be said with 65% consumers are purchasing milk from its current source for more than
2 years.

Brand * Consumption

Brand

Up to 1 Liter

1.1 2 Ltrs

2.1-3 Ltrs

3 Ltrs and Above

Total

Amul

32

26

71

Local Milk

11

24

Others

Both
Total

1
44

0
36

2
15

0
5

3
100

This table shows the how much liters of milk is consumed by household on daily basis. From above sample
we can say that almost 81 percent of Amul consumers are consuming up to 2 liters of Amul on an average.
Almost 45 percent consumers are consuming Amul milk less than 1 liters in v.v. nagar and anand. This might
be because of concentration of students in overall population of v.v.nagar and anand. 80 percent of overall
consumers are consuming up to 2 liter of milk in anand and v.v.nagar.
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Price * Consumption Cross tabulation


Count
Consumption
.

3 Ltrs and
Up to 1 Liter

1.1 2 Ltrs

2.1-3 Ltrs

Above

Total

Price in Rs.

15-20

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per liter .

21-25

13

25

26-30
Total

23
44

25
36

9
15

5
5

62
100

This table shows us the consumption of milk depending upon price. 62 percent of overall consumer is
purchasing milk which ranges between 26 -30 Rs per liter. Consumers whose on average daily consumption
is 1.1 to 2 liters are consuming milk which prices between 26 30 Rs. per liter. Price is bit on high side but
still they are consuming, this might be because of quality of milk is more important to them than anything
else. Being and essential commodity, demand of milk is less price elastic.

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Cases
Valid
Brand * Quality

Missing

Total

Percent

Percent

Percent

100

100.0%

.0%

100

100.0%

Quality
Brand

Very Poor

Poor

Good

Very Good

Total

Count

41

27

71

% within Brand

1.4%

2.8%

57.7%

38.0%

100.0%

Local

Count

11

13

24

Milk

% within Brand

.0%

.0%

45.8%

54.2%

100.0%

Others

Count

% within Brand

.0%

.0%

.0%

100.0%

100.0%

Count

% within Brand

.0%

.0%

100.0%

.0%

100.0%

Count

55

42

100

% within Brand

1.0%

2.0%

55.0%

42.0%

100.0%

Amul

Both
Total

Previous table shows the Quality perspective of various milk brands from customers point of view. Almost
95 percent of Amul milk consumers stats that quality of milk is either good or very good. This is one of the
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positive points for Amul and company has able to meet the expectation of customers. For local milk provider
this turn out to be a 100 percent. This might be because of overall consumers of local milk are round about
one third of Amul Milk. In general sample shows that quality of milk available in v.v.nagar and anand is
either good or very good weather its Amul or Local milk.

Cases
Valid
Brand * Offer Price

Missing

Total

Percent

Percent

Percent

100

100.0%

.0%

100

100.0%

Brand * Offer Price Cross tabulation


Offer price
Brand

Low

Reasonable

High

Very High

Total

Count

34

28

71

% within Brand

4.2%

47.9%

39.4%

8.5%

100.0%

Local

Count

14

24

Milk

% within Brand

8.3%

58.3%

33.3%

.0%

100.0%

Others

Count

% within Brand

.0%

50.0%

50.0%

.0%

100.0%

Count

% within Brand

.0%

66.7%

33.3%

.0%

100.0%

Count

51

38

100

% within Brand

5.0%

51.0%

38.0%

6.0%

100.0%

Amul

Both
Total

This table shows the price offered by various milk source and customers perception towards it. Almost half
of the consumers in sample show that price is reasonable against quality of milk they are getting in return.
For Amul milk consumer, percentage is 40 who think that prices are high of Amul Milk. This is the point
where Amul needs focus and should try to change customers perspective regarding prices. One way of
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doing this that Either Amul can reduce price or should convey message to customer that quality milk they
are getting is worth paying and prices are reasonable enough.

Case Processing Summary

Percent

Cases
Missing
N
Percent

100

100.0%

Valid
Brand * Satisfaction

.0%

Total
N

Percent

100

100.0%

Brand * Satisfaction
Satisfaction
High
Brand

Highly

dissatisfied

Neutral

Satisfied

Satisfied

Total

Count

12

28

30

71

% within Brand

1.4%

16.9%

39.4%

42.3%

100.0%

Local

Count

16

24

Milk

% within Brand

.0%

25.0%

8.3%

66.7%

100.0%

Others

Count

% within Brand

.0%

50.0%

.0%

50.0%

100.0%

Count

% within Brand

.0%

.0%

66.7%

33.3%

100.0%

Count

19

32

48

100

Amul

Both
Total

% within Brand
1.0%
19.0%
32.0%
48.0%
100.0%
This table depicts satisfaction level among customer with milk they are consuming. Almost 81 % of
consumers of Amul milk are at least satisfied with Amul milk and 75 % of local milk consumers are either
satisfied or highly satisfied with over all their milk consumption.

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INFERENCE FROM THE STUDY


With Amul being a recognized brand all over the world, Majority of consumers of milk in v.v.nagar
and anand is preferring Amul milk over local milk or other source of milk. With Almost 71 percent of
market share in v.v.nagar and anand Amul certainly dominates market.
With heavy concentration of student in v.v.nagar, easy availability of Amul milk has become one of
most important factor in purchasing Amul milk by students. Amul has been able to live up to its standard in
providing quality no matter what the product is. This is same case with milk also, by data showing that
almost 96 percent of consumers has showed that Amul milk is of at least of good quality.
Local Milk is also good in quality but it is difficult for them to fight against a brand such as Amul.
Market share of Local Milk provider is just one third of Amul. One of the slightly worrying factors for Amul
is perception of customer towards its price. As almost half of the customer perceives price as high or very
high. As long as Amul has not face with any tough competition, price will not redirect its customer but this
provides an opportunity for other company to target Amul and snatch away market. Local Milk providers
can also penetrate market by reducing their prices.
Over all, Amul does drive the milk market of v.v.nagar and anand and will continue to do it because
of its quality of milk, distribution network its perceived brand image.

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CONCLUSION OF THE REPORT


We have conducted a research survey on Consumers Preference towards Amul Milk and Local Milk
Traders" through questionnaire method. Our research objective is to determine the consumption of milk by a
household on daily basis, to know the perception of household towards Amul milk and loose milk and to
know about consumer satisfaction and brand loyalty. For achieving our research objective we have used
exploratory research which has been of immense help to us in gaining insights regarding preferences of
households in purchase of milk. Our exploratory methodology has helped us a lot in drawing inferences
regarding our research project.
To conclude our research that is for making analysis and interpretation we have used SPS software.
This software has helped us in drawing conclusions towards consumer perception. Even major findings have
been drawn with the help of this software.

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BIBLIOGRAPHY
Reference books:
1. Cooper R Donald, Schindler S Pamela, Business Research Methods, Tata Mc Graw Hill. Page No.
138-139
2. C R KOTHARI, Research Methodology Methods and Techniques, New Age International ( P ) Ltd
Page No 345, 346, 347, 348
Websites:

http://www.amul.com/products.html

http://www.linkedin.com/companies/gcmmf

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CONSUMER FEEDBACK ON AMUL MILK AND LOCAL MILK TRADERS


We the students of GHPIBM from 2nd semester are conducting a survey on consumers' preference
regarding AMUL Milk and LOCAL Milk Traders.

PERSONAL INFORMATION
Name:
Occupation:
GOVERNMENT EMPLOYEE
PRIVATE EMPLOYEE
BUSINESS
OTHER

Gender:

Male

Female

Age (Years):
20-30

30-40

40-50

50 and above

15001-25000

25001-35000

35000 and above

Salary per month (Rs.):


UP TO 15000

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1) Which Brand of milk do you purchase?


Amul

Local Milkman

Other

Both

2) Since how long you have been purchasing milk from your current source?
6 months

6 months-1 year

1 year-2 year

2 year and above

2 to 3 liters

3 liters and above

3) How much is the daily consumption of milk?


Up to 1 litre

1 to 2 liters

4) What is the price of milk per litre, which you consume?


15 to 20 Rs

21 to 25 Rs

25 to 30 Rs

30 Rs and above

Good

Very good

5) How is the quality of the milk you consume?


Very poor

Poor

6) What do you think about the price charged for the milk?
Very Low

Low

Reasonable

High

Very high

7) Are you satisfied with your current source?


Satisfied
1
8)

Dissatisfied
2

a. Rank for preferring Amul Milk (from 1 to 5)


Availability

Brand loyalty

Pasteurization

Quality

Other reason please specify__________________________________

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b. Rank for preferring Local Milk (from 1 to 6)


Tradition

Affordability

Freshness

Digestibility

Smell

Other reason please specify_________________________

9) Rank your preferences (from 1 to 4)


Price
Quality

Availability
Proximity

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