PROJECT ON

(To Study on Market Penetration Strategy of
Amul Milk in PCMC Area)

Submitted By:
VINAY PHOOLKA
(Master of Business Administration)

Guide By:
Prof. D SURYA PRAKASH

Introduction
The name of my topic is “A Study on Market Penetration Strategy of Amul ”.
The project was done during the months of 22 Feb. to 14 July. The study of
the project was to know what market penetration strategies are used by
Amul.
Objective
The main aim was to understand the marketing strategies of Amul how
useful to increase market penetration and increase sale.
To study the marketing strategies and execute them more and more
effectively in the market.
Company Profile
-In the year 1946 AMUL (Anand Milk Union Limited) was established by Dr.
Verghese Kurien.
-Amul is a brand managed by co-operative body Gujrat Co-operative Milk
Marketing Federation Limited (GCMMF).
-Gujrat Co-operative Milk Marketing Federation Limited is India’s largest
food products marketing organization.
-GCMMF has the largest distribution network for any FMCG company.
-It has nearly 50 sales offices spread all over the India, more than
3,000whole sale dealers and more than 5,00,000 retailers.
-Besides India AMUL has entered international market such as Mauritius,
UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong, and few
South African nations, other potential markets being considered include Shi
Lanka.
-Annual Turnover of Rs. 19,100 Crore (2013-14).

Milestones of GCMMF:2. In the process Amul became the largest food brand in India and has ventured into markets overseas. which made the country the world's largest producer of milk and milk products. 13. it is a brand managed by a cooperative body. which today is jointly owned by 3 million milk producers in Gujarat.Verghese Kurien. Dr. Rs. 8.5 million liters of milk procured per day. founder-chairman of the GCMMF for more than 30 years (1973–2006). is credited with the success of Amul . India The word amul (अममल) is derived from the Sanskrit word amulya (अममलय) meaning in invaluable. 150 million disbursed in cash daily. Amul spurred India's White Revolution.759 village societies. The co-oprative was initially referred to as Anand Milk Federation Union Limited hence the name AMUL.Amul is an Indian dairy co-operative. the Gujarat Co-operative Milk Marketing Federation Ltd. 13 District Unions. (GCMMF). based at Anand in the state of Gujrat.8 million milk producer member families. Formed in 1946.

This co-operative.VergheseKurien. The exploitative trade practices followed by the local trade cartel triggered off the cooperative movement.The Birth of Amul It all began when milk became a symbol of protest. the farmers of the district approached the great Indian patriot SardarVallabhbhai Patel for a solution. District Cooperative Milk Producer's Union (Dugdh-Sangh) . they formed their own cooperative in 1946. In 1946. and the guidance of leaders like Morarji Desai and Tribhuvandas Patel. Angered by unfair and manipulative practices followed by the trade. Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas Patel. processing and marketing under their control. which would have procurement. a small town in the state of Gujarat in western India. began with just two village dairy co-operative societies and 247 litres of milk and is today better known as Amul Dairy. Inspired by the freedom movement The seeds of this unusual saga were sown more than 65 years back in Anand. the founder Chairman and the committed professionalism of Dr. Founded in 1946 to stop the exploitation by middlemen. Under the inspiration of Sardar Patel.who was entrusted the task of running the dairyfrom1950. the farmers of this area went on a milk strike refusing to be cowed down by the cartel. He advised them to get rid of middlemen and form their own co-operative. the Kaira District Co-operative Milk Producers Union Ltd.

State Cooperative Milk Federation (Federation) The main functions of the federation are as follows: Marketing of milk and milk products processed/manufactured by Milk Unions. Arranging transportation of raw milk from the VDCS to the Milk Union. Providing input services to the producers like veterinary care. animal husbandry and dairying for milk producers and conducting skill development and leadership development training for VDCS staff and Management Committee members. mineral mixture sales.The main functions of the union are: Procurement of milk from the village milking societies of the district. fodder and fodder seed sales. Establish chilling centres and dairy plants for processing the milk received from the villages. Conducting training on cooperative development. Providing management support to the VDCS along with supervision of its activities. RESEARCH METHODOLGY: . Arranging transportation of milk and milk products from the Milk Unions to the market. Establish a distribution network for marketing of milk and milk products. artificial insemination services. cattle-feed sales.

Title :To study of Market Penetration strategy of Amul Milk Research Plan Research Objectives: Determining the problems of retailers & deciding strategies to increase retail penetration. 10 days for designing questionnaire.  Understanding consumer & distributors’ role in increasing retail penetration. and 25 days for data coding. Sources of Data Collection: . Time for Completion The time taken to complete the project was 60 days. 25 days for market survey and filling questionnaire from the respondents. analysis and compiling of report. Exploratory Research: It was exploratory research in nature and which was subjected to the basic information required by research objectives. A preliminary study and findings can be further consolidated after detailed conclusion study has been carried out.

A brief questionnaire focused to collect the relevant information was prepared. Research is of survey research type & it is carried out with the help of 2 different questionnaires for dealers and retailers Sample size & sample technique Area Covered: [Indrayani Nagar. The data gathered through these questionnaires was analysed to judge the target audience behaviour and major factors. So the sampling technique used was stratified random sampling. etc. Secondary data –Through internet and Also the secondary data from the Amul Sales Officers and Distributors and through some informal chat we have collected the remaining information about the current scenario in the market. JadhavWadi. Total Retailers covered: 50 UHT (Ultra-High Temperature Processing) products . The respondents were asked to fill up this questionnaire followed by a short interview. Short interviews. Sant Nagar.Primary data:–Through Questionnaires.] RETAILERS: From each area we covered 15 to 20 retailers randomly.

Amul plans to install six such ATMs in Anand itself. The Amul Model The Amul Model of dairy development is a three-tiered structure with the dairy cooperative societies at the village level federated under a milk union at the district level and a federation of member unions at the state level. Amul sells around 4-500. which are packed in Tetra Pak cartons.Over the years Amul has been witnessing strong growth in this portfolio. Any Time Milk (ATM) Machine Amul has installed a "Any Time Milk" machine dispenses a 300-ml pouch of fresh milk for Rs. As a first step.10. AMUL USES E.[20] as a result of growing consumer awareness and demand for good quality milk. at Anand'sAmul Dairy. with the segment growing at 53%. the urban population has especially been showing great interest in long life UHT products like AmulTaaza.The UHT products have enabled Amul to position itself as the market leader in packaged milk segment by penetrating the deeper and vast markets by maintaining long shelf life of milk.SUPPLY CHAIN MANAGEMENT . Today. without the need of maintaining cold supply chain.000 liters of UHT milk and other value added products per day and forecast this demand to continue growing at 25%. which undergoes UHT treatment to remove all harmful microorganisms while retaining the nutrition in the milk.

Over 45 years of existence. the brand has always given a fresh flavour to Amul Mascot. However it has still been successful in creating the same impact. Advertisement In order to maintain costs at lower levels. milk fat content and amount payable to each member. Amul has recently entered into direct retailing through “AMUL utterly delicious “parlors created in major cities. and one prominent contender is the Amul mcute and chubby girl usually dressed in a polka dot. Amul India has never spent more than 1% of its budget on advertising. it created 60 years ago through its simple yet appealing ad campaignsTalk about universally recognizable Brands grown in India. AMUL has plans to create large chain of such outlet to be managed by franchisee through the country.Amul has installed over 3000 automatic milk collection system units (AMCUS) at village societies to capture member information. .

Interesting Ad – Accha din-neraaya Amul Ad – KhushRaheTera Beta Beti Data Interpretation .

Hence I had prepared a questionnaire to understand the attitude and behaviour of the customers towards premium milk brands. .Introduction: The projects main aim is to study the consumer behaviour towards premium milk. the data interpretation is as follows: The questionnaire is divided into 3 parts: i) Introductory Questions ii) Related to the main topic Questions 1) Various brands of Milk are sold in the market and highest selling milk brands in retail shops.

Brands Amul Chitale Gokul Katraj Thorat Other Highest selling retailers 12 7 10 9 6 6 Highest Selling Milk Brands in The Market Amul Chitale Gokul Katraj Thorat Other Inference: The above pie chart depicts about highest selling milk brands in the market. Gokul 20%. . Thorat 18% and Other milk brand 12% sold in the market. because in above data with 24% majority of the selling milk in the market and other brands are chitle 24%. From the above pie chart we can infer that highest selling milk brand is Amul. Katrj 18%.

2) The ratings given by retailers to Amul’s marketing strategy. Attributes Very good Good Average Poor No. of respondents 16 21 8 5 .

In this pie chart 42% of retailer say that the marketing strategy of Amul is Good . 16% are say Average and 10% says that the marketing strategy of Amul is having poor marketing strategy. 32% are say Very good . the visibility display given by Amul Milk. Type of board Glow sign board Wall painting Stand board No. of Shops 9 11 8 . 3) For advertising.Marketing Strategy Of Amul Milk Very Good Good Average Poor Inference: The above pie chart shows that the ratings given by retailers to the marketing strategy of Amul.

. these are very helpful to make advertisement in the market.Flex board Other 7 15 For Advertisement Boards Porovided by Amul to Retailers Glow sign board Wall painting Stand board Flex board Other Inference: The above pie chart shows that the display boards provided by Amul.

to 16% of retailers they provide stand board. to 22% of retailers they provide wall painting.This pie chart shows that to 18% of retailers they provide glow sign boards. 4) Factors are important for selling Amul milk as per retailer’s point of view. to 14% of retailers they provide flex boards and to 30% of retailers they provide other advertisement equipments.(Rated by retailers 1-10) Factors Ratings Brand Name Margin Service Customer Demand 07 09 08 07 .

means all preferences are less than margin. This graph shows that the retailers are mostly prefer to margin.10 9 8 7 6 5 Column1 4 3 2 1 0 Brand name Margine Service Customer demand Inference: The above bar graph shows the factors are important for selling Amul milk and ratings given by retailers. . then they prefer service. then equally prefer to the customer demand.

3) The retailers are not happy with the margin of Amul and at some places retailers are not happy with the service of Distributor. Quality and Availability. because all the retailers and customers which I mate. 2) Amul is leading in premium milk with relation to Brand awareness. 4) The main customer of Amul is upper middle class and higher class mainly. and middle class at some places. Price. . those all are aware about Amul’s product. 1) Amul gives more preference to their customer as compare to the retailers and distributor.Findings 1)Awareness of Amul in the market is 100%.

3) The G.M. .. Amul. 2) Provide reasonable margin to the retailers to motivate the retailer to promote their product in the market as compare to competitors. so company should improve their supply chain at peak seasons. Suggestions The suggestions to G. would be as follows: 1) Amul has relatively good supply chain but still company still not able to fulfil the demand of outlet at peak season when demand is very high.M.M.C.F.F. should launch the offers which are beneficial to the retailers. that will help to company for more penetration. 6) In some areas there are some services issues need to solve.5) Amul’s marketing strategy is very strong that’s why this is the most trusted brand in the market.M.C.

In terms of all the parameters Amul is the market leader as compared to the other milk brands. It has developed a trust factor in customers mind.4) Amul is having loyal customers so. It has a huge potential in Pune.M. Amul. Followed by Nestle which is good in quality and brand awareness and followed by mother dairy. owned by the company that will help for more penetration in the market. there should be having some campaigns and activity for making more loyal customers it will help Amul for more market penetration. the leader is Amul. In the milk market. There are many customers who need such good quality milk but due to lack of knowledge they are not aware about it. I came to a conclusion that. provided they concentrate on the distribution network.F.giving retailer’s delivery in time. which are strong competitors of Amul .M. .C. The company has a huge potential in the market. Conclusion After the study of the G. 5) Amul should open their exclusive stores in shoping malls.

THANK YOU . Amul can achieve heights provided they should focus on Promotional activities and providing good service to the retailers along with their benefits. it can be concluded by saying that Amul is an fastest growing brand in the market. customers need good quality milk along with extra value added services. Therefore.In the milk segment. From the survey also we found that the awareness level in the customer about Amul is comparatively higher than market share. They prefer Amul milk because they feel that they are given some extra benefit as compared to other milk which is available. that also help to company for better market penetration.