You are on page 1of 58

e

1. EXECUTIVE SUMMARY

The Project was taken into consideration for the Promotion and Marketing of the Amul Milk.

The main task assigned to us by our mentors where to make the product available in each and

every stores.

It also focuses on the competition product like Haldiram, Dinshaws, Mahananda, Mother

Dairy Etc.

1
The main aim was to first analyses the market situation focuses on the need of the consumers

what the thing they are lacking in the competitor’s product so that the same thing didn’t

happened in our product.

So after the whole promotion and marketing of the product. we have taken the sample size of

50 retailers. Retailers wanted to know the feedback which we are getting for our product.

2
2.Introduction of the topic

Gujarat Cooperative Milk Marketing Federation LTD. (GCMMF), is India's largest food

product marketing organization with annual turnover (2013-14) US$ 3.0 billion. Its daily

milk procurement is approx 13.18 million lit per day from 17,025 village milk

cooperative societies, 17 member unions covering 31 districts, and 3.23 million milk

producer members.

The Birth of Amul

It all began when milk became a symbol of protest. Founded in 1946 to

stop the exploitation by middlemen Inspired by the freedom movement. The seeds of

this unusual saga were sown more than 65 years back in Anand, a small town in the

state of Gujarat in western India. The exploitative trade practices followed by the

local trade cartel triggered off the cooperative movement. Angered by unfair and

manipulative practices followed by the trade, the farmers of the district approached

the great Indian patriot SardarVallabhbhai Patel for a solution. He advised them to

get rid of middlemen and form their own co-operative, which would have

procurement, processing and marketing under their control.

In 1946, the farmers of this area went on a milk strike refusing to be cowed

down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders

like Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in

1946. This co-operative, the Kaira District Co-operative Milk Producers Union Ltd.

began with just two village dairy co-operative societies and 247 litres of milk and is

today better known as Amul Dairy. Amul grew from strength to strength thanks to the

inspired leadership of Tribhuvandas Patel, the founder Chairman and the committed

3
professionalism of Dr. Verghese Kurien, who was entrusted the task of running the

dairy from 1950.

The then Prime Minister of India, Lal Bahadur Shastri decided that the same

approach should become the basis of a National Dairy Development policy. He

understood that the success of Amul could be attributed to four important factors.

The farmers owned the dairy, their elected representatives managed the village

societies and the district union, they employed professionals to operate the dairy and

manage its business. Most importantly, the co-operatives were sensitive to the needs

of farmers and responsive to their demands.

At his instance in 1965 the National Dairy Development Board was set up with the

basic objective of replicating the Amul model. Dr. Kurien was chosen to head the

institution as its Chairman and asked to replicate this model throughout the country.

In today’s brand strategies the word “anticipation” become more. Important than

predication we no longer have the luxury of being reactive we need to address not

only the definite needs of consumer but the unclear needs as well but when it comes

to our basic needs consumer wants to believe on a single brand a if it provides its

customers of filling of full satisfaction of AMUL, the brand name Amul means

“AMULYA”. This word derived from the Sanskrit word “AMULYA” which means

“PRICE LSS” a quality control expert in Anand had suggested the brand name Amul.

AMUL product have been in use in millions of home since 1946.Amul Butter, Amul

milk powder, Amul ghee, Amul cheese, Amul chocolate, Amul shrikhand, Amul ice-

cream, Nutramul, Amul milk & AMULYA have made Amul a leading food brand in

INDIA. The milk cooperative company amul is the sole Indian brand and the most

popular brand in FMCG sector also amul is ranked no.1.dairy brand not just in India

4
but across the Asia pacific region and completing with global brand like Dutch ,

dumex, anchor etc. It was list 4th India for 2009-2010 as well.

As we know that Amul is very big organization and market leader in dairy products.

It has maximum market share in Butter and Cheese, Ice-Cream which are

its main/core products. As we know Amul is a co-operative organization

but milk industry is a profitable industry we can’t ignore it. With the help of

research, company can find out its weak points in milk segment and can increase its

market share through rectify mistakes. People have believed in Amul’s

product and they will accept its milk also if effective actions are taken. This project

was a greater importance to me, I have learnt a lot in this project . This

project shows m e the way to work in the market .How to

c o m m u n i c a t e w i t h d i ff e r e n t t y p e o f p e o p l e . H o w t o convince one for

better job .

Learnt how to sell ,how things work in Fast moving Consumer goods

.having perishable nature of these product one need a excellent

distribution network and carefully select market because these product if

transferred to far area then cost attached to the product will make it un

competitive .Milk marketing is full game of Branding .if branding of a product is

done then the following things has to be taken into consideration like

availability of product ,continuous change in the product as required by

consumers and third is price of the product according to satisfaction level of the

people and last but not the least is the visibility of product and a promotional strategy

to hit, people’s mind. Ultimately I must say that I am privileged to work in

the company like Amul and get such a real time exposure of FMCG

company .Q u a l i t y i s t h e d o m i n a t i n g a s p e c t w h i c h

5
influences consumer t o p u r c h a s e A m u l p r o d u c t , b u t prompt availability o f

other milk brands and aggressive promotional activities b y o t h e r s

influences the consumer towards them and also leads to increase sales. In

comparison to Amul Milk, the other players such as Saras, Lotus, Groups and Others

provide a better availability and give competition to the hilt.

It is the Apex organization of the Dairy Cooperatives of Gujarat, popularly known as

'AMUL', which aims to provide remunerative returns to the farmers and also serve

the interest of consumers by providing quality products which are good value for

money. Its success has not only been emulated in India but serves as a model for rest

of the World. It is exclusive marketing organization of 'Amul' and 'Sugar' branded

products. It operates through 53 Sales Offices and has a dealer network of 10000

dealers and 10-lakhs retailers, one of the largest such networks in India. Its product

range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza

cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc.

GCMMF is India's largest exporter of Dairy Products. It has been accorded a

"Trading House" status. Many of our products are available in USA, Gulf Countries,

Singapore, The Philippines, Japan, China and Australia. GCMMF has received the

APEDA Award from Government of India for Excellence in Dairy Product Exports

6
for the last 13 years. For the year 2009-10, GCMMF has been awarded "Golden

Trophy" for its outstanding export performance and contribution in dairy products

sector by APEDA. In 2013-14, GCMMF took giant strides in expanding its presence

in International markets. Amul’s presence on Global Dairy Trade (GDT) platform in

which only the top six dairy players of the world sell their products, has earned

respect and recognition across the world. By selling milk powders on GDT, GCMMF

could not only realize better prices as per market demand but it also firmly

established Amul in the league of top dairy players in world trade.

The Amul brand is not only a product, but also a movement. It is in one way, the

representation of the economic freedom of farmers. It has given farmers the courage

to dream.

Amul the co-operative registered on 1 December 1946 as a response to the

exploitation of marginal milk producers by traders or agents of the only existing

dairy, the Polson dairy, in the small city distances to deliver milk, which often went

sour in summer, to Polson. The prices of milk were arbitrarily determined. Moreover,

the government had given monopoly rights to Polson to collect milk from mikka and

supply it to Bombay city.

7
Angered by the unfair trade practices, the farmers of Kaira approached sardar

vallabbhai patel under the leadership of local farmer leader Tribhavandas K. Patel He

advised them to form a corporative and supply milk directly to the Bombay Milk

Scheme instead of Polson (who did the same but gave them low prices).He set to

Morarji Desai organize the farmers. In 1946, the milk farmers of the area went on a

strike which led to the setting up of the cooperative to collect and process milk. Milk

collection was decentralized, as most producers were marginal farmers who could

deliver, at most, 1–2 litres of milk per day. Cooperatives were formed for each

village, too.

The cooperative was further developed and managed by Dr.Verghese kurien with

H.M.DALAYA. Dalaya's innovation of making skim milk powder from buffalo milk

(for the first time in the world) and a little later, with Kurien's help, making it on a

commercial scale, led to the first modern dairy of the cooperative at Anand, which

would compete against established players in the market.

The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon

spread to Anand's neighbourhood in Gujarat. Within a short span, five unions in

other districts – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set

up. To combine forces and expand the market while saving on advertising and avoid

competing against each other, the GCMMF, an apex marketing body of these district

cooperatives, was set up in 1973. The Kaira Union, which had the brand name Amul

with it since 1955, transferred it to GCMMF.

In 1999, it was awarded the "Best of all "RAJIV GHANDHI NATIONAL QUALITY

8
The GCMMF is the largest food products marketing organization of India. It is the

apex organization of the dairy cooperatives of Gujarat. It is the exclusive marketing

organization for products under the brand name of Amul and Sugar. Over the last five

and a half decades, dairy cooperatives in Gujarat have created an economic network

that links more than 3.1 million village milk products with millions of consumers in

India. The daily milk procurement of GCMMF is around 13 million liters per day. It

collects milk from about 16914 village milk cooperative societies, 17 member unions

and 24 districts covering about 3.18 million milk producer members. More than 70%

of the members are small or marginal farmers and landless laborers including a

sizeable population of tribal folk and people belonging to the scheduled.

GCMMF (AMUL) has the largest distribution network for any FMCG company. It

has nearly 50 sales offices spread all over the country, more than 5000 wholesale

dealers and more than 700000 retailers.

Amul became the world's largest vegetarian cheese and the largest pouched-milk

brand.

AMUL is also the largest exporter of dairy products in the country. 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, cottage cheese (Paneer),

UHT milk, clarified butter (Ghee) and indigenous sweets.

9
The major markets are USA, West Indies, and countries in Africa, the Gulf Region,

and SAARC neighbors, Singapore, The Philippines, Thailand, Japan and China, and

others such as Mauritius, Australia, Hong Kong and a few South African countries.

Its bid to enter the Japanese market in 1994 did not succeed, but it plans to venture

again.

In September 2007, Amul emerged as the leading Indian brand according to a survey

by Syncopate to find out Asia's top 1000 Brands.

In 2013, Amul was named the Most Trusted brand in the Food and Beverages sector

in the BRAND TRUST REPORT, published by Trust Research Advisor.

Contrary to the traditional system, when the profit of the business was cornered by

the middlemen, the system ensured that the profit goes to the participants for their

socio-economic upliftment and common good. Looking back on the path

traversed by Amul, the following features make it a pattern and model

for emulation elsewhere.

10
GCMMF Overview:

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's

largest food products marketing organization. It is a state level apex body

of milk cooperatives in Gujarat which aims to provide remunerative

returns to the farmers and also serve the interest of consumers by

providing quality products which are good value for money.

Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the largest

Organization in FMCG industry engaged in marketing of milk & milk products

under the brand names of AMUL and SUGAR with an annual turnover exceeding

Rs5000crores.GCMMF is a unique organization. It's a body created by

Farmers, managed by competent professionals serving a very competitive

and challenging consumer market. It is a true testimony of synergistic

national development through the practice of modern management methods.

11
Vision:

GCMMF will be an outstanding marketing

organization, with specialization in marketing

of food and dairy products both fresh and long life

with customer focus and IT integrated. The

network w o u l d consist of over 100 o ff i c e s , 7500 stockiest

c o v e r i n g a t l e a s t e v e r y Ta l u k a . H e a d q u a r t e r servicing nearly 10

lakhs outlets with a turnover of Rs.10, 000 Cr and serving several co-

operatives.GCMMF shall also create markets for its products in neighboring

countries.

Mission:

We at GCMMF endeavor to satisfy the taste and nutritional requirements

of the customer of t h e w o r l d t h r o u g h e x c e l l e n c e i n t h e m a r k e t i n g

b y o u r c o m m i t t e d t e a m . T h r o u g h c o - o p e r a t i v e networking, we are

committed to offering quality product that provides best value for money.

INDIAN DAIRY INDUSTRY:

Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore

to entrepreneurs worldwide, who wish to capitalize on one of the world's largest and

fastest growing markets for milk and milk products. A bagful of 'pearls' awaits the

international dairy processor in India. The Indian dairy industry is rapidly growing,

trying to keep pace with the galloping progress around the world. As he expands his

12
overseas operations to India many profitable options await him. He may transfer

technology, sign joint ventures or use India as a sourcing center for regional exports.

The liberalization of the Indian economy beckons to MNC's and foreign investors

alike. India’s dairy sector is expected to triple its production in the next 10 years in

view of expanding potential for export to Europe and the West. Moreover with WTO

regulations expected to come into force in coming years all the developed countries

which are among big exporters today would have to withdraw the support and

subsidy to their domestic milk products sector. Also India today is the lowest cost

producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63

cents, and Japan’s $2.8 dollars. Also to take advantage of this lowest cost of milk

production and increasing production in the country multinational companies are

planning to expand their activities here. Some of these milk producers have already

obtained quality standard certificates from the authorities. This will help them in

marketing their products in foreign countries in processed form. The urban market

for milk products is expected to grow at an accelerated pace of around33% per

annum to around Rs.43,500 crores by year 2005. This growth is going to come from

the greater emphasis on the processed foods sector and also by increase in the

conversion of milk into milk products. By 2005, the value of Indian dairy produce is

expected to be Rs 10,00,000 million. Presently the market is valued at

aroundRs7,00,000mnIndia with 134mn cows and 125mn buffaloes, has the largest

population of cattle in the world. Total cattle population in the country as on

October'00 stood at 313mn. More than fifty percent of the buffaloes and twenty

percent of the cattle in the world are found in India and most of these are milch cows

and milch buffaloes.

13
AWARDS:-

1965: “Padmshri” awarded was given to V. Kurien, general manager, by the president

of India.

1987: “Best Productivity” awarded by national productivity council for the year

1985-86 awarded to Amul dairy.

2003: The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the top scorer

in The service category of the prestigious IMC Ramakrishna Bajaj National Quality Award

MARKET RESEARCH OF AMUL

“Market research is any organized effort to gather information about

target 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.

Market research is a key factor to maintain

competitiveness over competitors. Market research provides

important information to identify and analyze the market

need, market size and competition. Market research, which includes social and

14
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.

15
Market research for business/planning

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.

Peter.Drucker believed market research to be the

quintessence of marketing.

There are two major types of market research.

Primary Research sub-divided into Quantitative and

Qualitative research and Secondary research.

Market information

Through Market information one can know the prices of different commodities in the

market, as well as the supply and demand situation. Market researchers have a wider

role than previously recognized by helping their clients to understand social,

technical, and even legal aspects of markets.

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, techno graphic differences, use of

product differences, psychographic differences and gender differences. For B2B

segmentation firm graphics is commonly used.

16
Market trends

Market trends are the upward or downward movement of a market, during a period

of time. Determining the market size may be more difficult if one is starting with a

new innovation. In this case, you will have to derive the figures from the number of

potential customers, or customer segments.

SWOT Analysis

It is a written analysis of the Strengths, Weaknesses, Opportunities and Threats to a

business entity. Not only should a SWOT be used in the creation stage of the

company but could also be used throughout the life of the company. A SWOT may

also be written up for the competition to understand how to develop the marketing

and product mixes. 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

17
3. COMPANY PROFILE

18
Type : Cooperative

Founded: 1946

Headquarters: Anand, India

Industry: Dairy

Revenue: $868 million USD (06-07)

Employees: 2.41 million milk producers.

19
About some 100kms from Ahmadabad lies a small city named Anand. The city is

known as the Milk Capital of India due to presence of the famous Amul Dairy there.

Amul – one of the most famous Dairy brands of our country came into existence in

1946. During that time there was only one dairy in the district of Anand and in

Gujarat known as Polson Dairy which had been established in 1930. Polson Dairy

was providing superior quality dairy products to up-market consumers. However it

was involved in the exploitation of Indian farmers by not providing sufficient amount

to them for milk and also not allowing them to sell milk to other vendors. Indian

national leader Sardar Patel along with agitated farmers of that area initiated a non-

cooperation movement against this process in the year 1946 and this lead to the

foundation of Amul on 14th December 1946. Initially it supplied milk and other dairy

products without any formalized distribution network or any supply chain in place.

The brand name Amul had not been adopted at that time and it was called

KDCMPUL (Kaira District Cooperative Milk Producer’s union Limited). It started

initially with two dairy co-operative societies and 247 liters of milk only.

“Dr. Verghese kurien and Amul”

20
It was on 13th May 1949, a young engineer who had just completed his Masters

Degree in Dairy Engineering arrived at Anand to serve the bond period against the

government scholarship for his education. His name was Mr. Verghese Kurien, later

to be known to the whole world as Dr. Verghese Kurien. At the start of it all, he

served there just to complete his required period and was ready to leave Amul after

that but he was persuaded to stay back at Amul by Mr. Tribhuvandas Patel – the

founder of KDCMPUL. He along with Mr. Patel started developing co-operatives in

the Kheda district. The role of co-operatives was to procure the milk from the

farmers and to pay the farmers their appropriate amount according to the quality of

milk. Further detailed operation cycle of the co-operatives is explained in the

following section. Mr. Kurien however wanted to give KDCMPUL a unique name

which could be easily pronounced by all and which could also help in growth of the

union. Suggestions were asked from various employees and farmers for an

appropriate name. Soon, a quality control supervisor recommended the name

“Amulya” which is derived from a Sanskrit word meaning priceless and implies

unmatchable excellence. The name was modified to “Amul” to make the union also a

part of this name and hence brand AMUL- Anand Milk Union Limited, came into

existence.

The Amul brand

GCMMF (AMUL) has the largest distribution network for any FMCG company. It

has nearly 50 sales offices spread all over the country, more than 5000 wholesale

dealers and more than 700000 retailers.

Amul became the world's largest vegetarian cheese and the largest pouched-milk

brand. AMUL is also the largest exporter of dairy products in the country. AMUL is

21
available today in over 40 countries of the world. AMUL is exporting a wide variety

of products which include whole and skimmed milk powder, cottage cheese (Paneer),

UHT milk, clarified butter (Ghee) and indigenous sweets. The major markets are

USA, West Indies, and countries in Africa, the Gulf Region, and SAARC neighbours,

Singapore, The Philippines, Thailand, Japan and China, and others such as Mauritius,

Australia, Hong Kong and a few South African countries. Its bid to enter the

Japanese market in 1994 did not succeed, but it plans to venture again. In September

2007, Amul emerged as the leading Indian brand according to a survey by Synovate

to find out Asia's top 1000 Brands. In 2013, Amul was named the Most Trusted brand

in the Food and Beverages sector in The Brand Trust Report, published by Trust

Research Advisory.

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. Establishment of a direct

linkage between milk producers and consumers by eliminating middlemen Milk

22
Producers (farmers) control procurement, processing and marketing Professional

management

The Amul model has helped India to emerge as the largest milk producer in the

world. More than 15million milk producers pour their milk in 1,44,500 dairy

cooperative societies across the country. Their milk is processed in 184 District Co-

operative Unions and marketed by 22 State Marketing Federations, ensuring a better

life for millions.

The Amul girl was created as a response to Amul's rival brand Polson's butter-girl.

The idea was conceived in 1967 once ASP (Advertising, Sales and Promotion)

clinched the brand portfolio from the previous agency FCB Ulka. It was executed by

Sylvester Da Cunha, the owner of the agency and his art director Eustace Fernandez

on hoardings, painted bus panels and posters in Mumbai. The mascot, since then, has

been mobilized to comment on many events of national and political importance

like Emergency in India in 1976.

23
24
PRICE: Amul Pricing Strategies

At the time Amul was formed, consumers had limited purchasing power, and modest
25
consumption levels of milk and other dairy products. Thus Amul adopted a low-cost

price strategy to make its products affordable and attractive to consumers by

guaranteeing them value for money. Despite competition in the high value dairy

product segments from firms such as:-

Hindustan Lever, Nestle and Britannia, GCMMF ensures that the product mix and

the

Sequence in which Amul introduces its products is consistent with the core

philosophy of providing butter at a basic, affordable price to appeal the common

masses. This helped AMUL BUTTER to create its brand image in the household

sector of the society.

PLACE: A Global Distributor

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading

House" status. GCMMF has received the APEDA Award from Government of India

for

Excellence in Dairy Product Exports for the last 9 years. Currently Amul has 2.41

million producer members with milk collection average of 5.08million litres/day.

Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA,

Bangladesh, Australia, China, Singapore, Hong Kong and a few South African

countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it

has fresh plans of flooding the Japanese markets. Other potential markets being

considered include Sri Lanka.

4. OBJECTIVE OF THE STUDY


PROMOTION: Initial Promotional Strategy

The butter, which had been launched in 1945, had a staid, boring image, primarily

26
because the earlier advertising agency which was in charge of the account preferred

to

stick to routine, corporate ads. They didn’t help in creating a brand image of AMUL

butter which was their then motive. The image they presented was, well, boring.

A brand - Amul – A Taste of India However, in 1966, a man named Sylvester

daCunha, from the ad agency of ASP, took over the Amul account. And in 1967 it

began, innocently enough. In India, food was something one couldn't afford to fool

around with. It had been taken too seriously, for too long. Sylvester daCunha decided

it was time for a change of image.

ADVERTISING

Its advertising has also started using tongue-in-cheek sketches starring the Amul baby

commenting jovially on the latest news or current events

. This formed a large chunk of the collective memory of us Indians. We grew with

them as the ads grew with us. They are quirky, poke fun at no one in particular and

are pure eye-candy! We almost admire the speed with which the ad-people come up

with copy and illustration for the ads, that change every few days!!From the Sixties

to the Nineties, the Amul ads have come a long way.

BRANDING

The first products with the Amul brand name were launched in 1955. Since then,

they

27
have been in use in millions of homes in all parts of India, and beyond. There is

something more, though, that makes the Amul brand special and that something is

the

reason for the commitment to quality and value for money. Amul is the brand name

of 2

million farmers, members of 10,000 village dairy cooperative societies throughout

Gujarat. This is the heart of Amul, it is what gives strength to Amul, and it is what is

so

special about the Amul saga. The Amul Pattern has established itself as a uniquely

appropriate model for rural development. Amul has made India one of the largest

milk producers in the world. Amul, therefore, is a brand with a difference.

SEGMENTATION

•Wide range of product categories caters to consumers across all market segments.

For example, Amul Cool is targeted at children, while teenagers prefer Cool Café,

as it has a cool imagery associated with it.

•Segmentation is not as easy in curd and low fat products, due to mixed audiences,

various culinary applications , eg. ghee, butter and cheese.

“In India, the most used spread is ghee, then butter, cheese, low fat butter,

margarine, cheese spread and mozzarella cheese.

5. SCOPE OF THE STUDY

28
4-MAIN STRATEGIES

What goes into the ‘contract’ that is a brand name?

First is Quality

. No brand survives long if its quality does not equal or exceed what the buyer

expects. There simply can be no compromise. That’s the essence of the contract. In

the case of a food product, this means that the brand must always represent the

highest hygienic, bacteriological and organoleptic standards. It must taste good, and

it must be good.

Second, value for money

. If our customer buys an Amul product, she gets what she pays for, and more. We

have always taken pride in the fact that while we earn a good income for our owners

– the dairy farmers of Gujarat – we don’t do it at the cost of exploiting the consumer.

Even when adverse conditions have reduced supplies of products like butter, we have

resisted the common practice of raising prices, charging what the market would bear.

Rather, we have kept prices fair and done our best to ensure that retailers do not gain

at the consumers’ expense.

Third, availability

. A brand should be available when and where the customer wants it. There is no

benefit achieved in creating a positive brand image, and then being unable to supply

the customer who wants to buy it. In our case, over the years we have built what is

probably the nation’s finest distribution network. We reach hundreds of cities and

towns through a cold chain that not only ensures that our products are available, but

they reach the customer at the farthest end of the country with the same quality as

you would find in Ahmedabad or Vadodara.

29
Fourth, service

. We have a commitment to total quality. But, occasionally, we may make a mistake –

or, our customer may think we’ve made a mistake, and the customer, as they say, is

always right. That is why, for Amul, every customer complaint must be heard – not

just listened to. And, every customer complaint must be rectified to the extent

humanly possible. For close to fifty years now, Amul has honored its contract with

the consumer. The contract that is symbolized by the Amul brand means quality. It

means value for money. It means availability. And it means service.

GCMMF - An Overview

30
Year of Establishment 1973
17 District Cooperative Milk Producers'
Members
Unions
No. of Producer Members 3.23 Million
No. of Village Societies 17,025
Total Milk handling capacity per
23.2 Million litres per day
day
Milk Collection (Total - 2018-19) 4.79 billion litres
Milk collection (Daily Average
13.18 million litres
2018-19))
Cattle feed manufacturing Capacity 6190 Mts. per day
Sales Turnover -(2018-19) Rs. 18143 Crores (US $ 3.0 Billion)

NAGPUR MARKET

Analysis and interpretation of data is based on the survey conducted by


the researcher in the areas of Nagpur market for Amul Milk Product and its competitors.
Analysis and interpretation of data is also based on the survey conducted on retailers. In this
survey the researcher tries to know the various market share of Amul milk products. Also
researcher tries to ask everything to the retailers relating to the product, such as price,
availability, distribution and quality, etc.

31
OBSERVATION:

Starting from the company place we successfully find a statistical data of market condition of
Amul products and the existence market condition of Nagpur for the Amul products is huge
and its amazingly increase by day-to-day because of quality & test of Amul. People have
been giving good response to the Amul products. that is the reason why Amul is growing
company in the Nagpur city and also able to maintain a good quality & quantity at reasonable
prices. so Amul is gaining a successfully trust from public.

Amul milk is highly consume by the people of Nagpur city ,if we find in a
numerical data we get a extreme quantity of Amul milk consume then the other firm.
It is near about 10,000-litre per day.

Popular Milk Brand % of Brand in Market


AMUL 29%
Dinshaw’s 23%
Mahananda 14%
Haldiram 11%
Mother Diary 9%
Gowardhan 5%
Aarey 3%
Purna 3%
Reliance 3%

OUTLETS TYPE VISITED

FOR

THE PURPOSE OF RESEARCH:

Total Outlet = 440

Type Number

32
Tea Stall 222
Milk Center 15
Kirana Shop 68
Restaurant and Sweet Mart 40
Canteen 13
Bakery 7
Daily Needs 51
General Stores and Stationary 19
Pan Shop 5

Amul is very big organization and market leader

in dairy products. It has maximum market share in Butter and Cheese, Ice-

Cream which are its main/core products. As we know Amul is a co-

33
operative organization but milk industry is a profitable industry we can’t

ignore it. With the help of research, company can find out its weak points in milk

segment and can increase its market share through rectify mistakes. People

have believed in Amul’s product and they will accept its milk also if effective

actions are taken. This project was a greater importance to me ,I have learnt

a lot in this project . This project shows m e t h e w a y t o w o r k i n t h e

m a r k e t . H o w t o c o m m u n i c a t e w i t h d i ff e r e n t t y p e o f p e o p l e . H o w

t o convince one for better job .Learnt how to sell ,how things work in Fast

moving Consumer goods .having perishable nature of these product one

need a excellent distribution network and carefully select market because

these product if transferred to far area then cost attached to the product will make it

un competitive .

Milk marketing is full game of Branding .if branding of a product is done then the

following things has to be taken into consideration like availability of

product ,continuous change in the product as required by consumers and third

is price of the product according to satisfaction level of the people and last but not

the least is the visibility of product and a promotional strategy to hit, people’s mind.

Ultimately I must say that I am privileged to work in the company like

Amul and get such a real time exposure of FMCG company .

34
35
ASSISSTANCE GENERAL MANAGER

36
6. Limitation of the study

AIMA-High Performance Brand Award 2013

Gujarat Cooperative Milk Marketing Federation Ltd. Anand, February 02,

2012

Shri R.S. Sodhi, MD-GCMMF received the AIMA-High Performance Brand Award

2013 for brand Amul at a glittering function in Delhi on 21st February, 2014 from

Shri Ravi Shankar Prasad, Dy. Leader of Opposition, Rajya Sabha.

37
News Released on 6th February, 2014

Amul wins All India Management Association's AIMA High performance Brand

award 2013

All India Management Association (AIMA), the national apex body of management

profession in the country is committed to enhancing the competence of management

profession through its multifaceted activities. Every year, to recognize excellence in

Management, Entrepreneurship and Leadership, AIMA confers Awards on

distinguished professional and organizations who have made outstanding

contribution. To recognize and celebrate the marketing success of a brand, AIMA and

R K SWAMY BBDO instituted the "AIMA - R K Swami High Performance Brand

Award" in 2009.

Mr. R S Sodhi, MD GCMMF said "our brand Amul has shown tremendous growth

and growing at the rate of 20% CAGR since last five years . For the current year, we

are expected to grow at 30% and would reach turnover of Rs. 18,000 crores".

The award will be presented during AIMA's 58th Foundation Day and National

Management Day, scheduled to be held on 21st February 2014, at New Delhi. The

award presentation ceremony will be held during a special plenary session. Mr. R S

Sodhi will receive the award on behalf of 3.5 million farmers of GCMMF who own

38
"Amul" brand.

LIST OF PRODUCTS

PRODUCTS & SERVICES

Cream and butter

Today, milk is separated by huge machines in bulk into cream and skim milk. The

cream is processed to produce various consumer products, depending on its

thickness, its suitability for culinary uses and consumer demand, which differs from

place to place and country to country. Some cream is dried and powdered, some is

condensed (by evaporation) mixed with varying amounts of sugar and canned. Most

cream from New Zealand and Australian factories is made into butter. This is done

by churning the cream until the fat globules coagulate and form a monolithic mass.

This butter mass is washed and, sometimes, salted to improve keeping qualities. The

residual buttermilk goes on to further processing. The butter is packaged (25 to 50 kg

boxes) and chilled for storage and sale. At a later stage these packages are broken

down into home-consumption sized packs.

39
SKIMMED MILK

The product left after the cream is removed is called skim, or

skimmed, milk. To make a consumable liquid a portion of cream is returned to the

skim milk to make low fat milk (semi-skimmed) for human consumption. By varying

the amount of cream returned, producers can make a variety of low-fat milks to suit

their local market. Other products, such as calcium, vitamin D, and flavoring, are

also added to appeal to consumers. Casein is the predominant phosphor protein

found in fresh milk. It has a very wide range of uses from being a filler for human

foods, such as in ice cream, to the manufacture of products such as fabric, adhesives,

and plastics.

CHEESE

Cheese is another product made from milk. Whole milk is

reacted to form curds that can be compressed, processed and

stored to form cheese. In countries where milk is legally allowed

to be processed without pasteurization, a wide range of cheeses

can be made using the bacteria naturally in the milk. In most other countries, the

range of cheeses is smaller and the use of artificial cheese curing is greater. Whey is

also the byproduct of this process. Some people with lactose intolerance are

surprisingly able to eat certain types of cheese.

40
MILK POWDERS

Milk is also processed by various drying processes into

powders. Whole milk, skim milk, buttermilk, and whey

products are dried into a powder form and used for human and animal consumption.

The main difference between production of powders for human or for animal

consumption is in the protection of the process and the product from contamination.

Some people drink milk reconstituted from powdered milk, because milk is about

88% water and it is much cheaper to transport the dried product.

OTHER MILK PRODUCTS

Kumis is produced commercially in Central Asia. Although it is

traditionally made from mare's milk, modern industrial variants

may use cow's milk instead.

MILKING

Preserved Express Dairies three-axle Milk Tank Wagon at the Did cot Railway

Centre, based on an SR chassis Milk churns on a railway platform. Originally,

milking and processing took place on the dairy farm itself. Later, cream was

separated from the milk by machine on the farm, and transported to a factory to be

made into butter. The skim milk was fed to pigs. This allowed for the high cost of

transport (taking the smallest volume high-value product),primitive trucks and the

poor quality of roads. Only farms close to factories could afford to take whole milk,

which was essential for cheese making in industrial quantities, to them. Originally

41
milk was originally distributed in ' pails ', a lidded bucket with a handle. These

proved impractical for transport by road or rail, and so the milk churn was

introduced, based on the tall conical shape of the butter churn. Later large railway

containers, such as the British Railway Milk Tank Wagon were introduced, enabling

the transport of larger quantities of milk, and over longer distances.

42
7. HYPOTHESIS OF THE STUDY

PROBLEMS FACED BY COMPANY

 Big competition
 Networking
 Advertisements
 Legal issues
 Supplier Control
 Existence of big players in milk industry
 Frequent change in demand of customer
 Difficult to sale the new product
 Difficult to capturing the market the market product range

8. RESEARCH METHOLOGY
Supplier Control
43
Appropriate selection, control, management and surveillance of suppliers are

definitely not exclusive to the dairy industry. However, dairies do have some unique

concerns that may not be experienced by most food processors. Raw milk can be

sourced from member producers, cooperatives, brokers or from the spot market.

As a result, dairy processors may not be able to do any type of audit of the

producer of their primary incoming ingredient before it is received. That’s where

regulations like the aforementioned PMO come into play. The PMO has specific

requirements for milk quality that must be met (particularly for Grade A). It

mandates parameters for temperature, somatic cell count (indicating cow health),

antibiotic residues and bacterial limits. In addition, most states have additional

mandates for things like milk-hauler truck inspections, wash tags to document tanker

cleaning, permitting of tankers and monitoring of antibiotic residue testing.

Mastitis is a common malady in dairy cows that may need to be treated using

antibiotics. As some people have severe allergies to certain antibiotics (e.g.,

penicillin), dairies must ensure that no milk contains residues above a standard limit.

When cows are treated with antibiotics, their milk is discarded until they are

cured and the antibiotic has cleared their system. However, sometimes a cow’s milk

may be reintroduced into the market too early, and the antibiotic passes into the milk.

Many times, this milk will get commingled with the milk from other farms and will

lead to the dumping of an entire tanker load. For this reason, all milk must be tested

for the presence of antibiotics before use.

In September 2008, FDA issued a Health Information Advisory concerning

reports from China of melamine-contaminated infant formula. Melamine, a nitrogen-

based compound used in commercial and industrial plastics, had been added to

44
Chinese dairy products to make them appear to have more protein. In China, 54,000

babies were sickened and four died as a result of consuming the tainted formula.

Worldwide bans on Chinese dairy products and milk proteins were initiated, and

many companies still refuse to purchase these items.

Dairy food manufacturers use the same criteria as most food companies to

approve ingredient suppliers. There is typically a document review (insurance, pure

food guarantees, specifications, FDA registration, etc.) along with the completion of

a food safety questionnaire. In addition, the prospective supplier may be asked for its

most recent third-party food safety audit along with corrective actions. (Companies

may also choose to conduct their own audit rather than accept a third-party

assessment.) However, the recent massive Peanut. Corporation of America (PCA)

recall may have cast some doubt on the validity of some third-party audits. Both of

the PCA plants involved in the recall received Superior ratings on their most recent

third-party audits. However, federal and state inspectors found evidence of pest

infestation, structural problems and other questionable practices.

Thus, with limited personnel and resources to conduct audits at all suppliers,

what can a company do to mitigate risk? One option is to conduct Verification Site

Visits based on an assessment of risk. To accomplish this, prepare a list of all

ingredients and product-contact packaging. For each item, determine the level of risk

for microbiological, chemical and physical parameters.

If any of the risk factors are present, that factor receives a score of one (1).

Using a scale of zero to three (0–3), the “spend risk” (based on the amount of the

item that is purchased each year or the level of cost) is determined. Low-volume

items would receive a zero, while high-volume or high-cost items would receive a

45
score as high as three. When finished, total all numbers to obtain a Risk Score. If the

score is between zero and two, no site visit is needed. A score of three would prompt

a biennial visit and a score of four or higher would require annual visits.

As an example, let’s say an ice cream manufacturer purchases a fruit puree

that it adds to product post-pasteurization. It is an ingredient in a seasonal product,

and only a small amount is used on an annual basis. The risk assessment scores are

shown in Table 2. The final Risk Score for this ingredient is 3, which would require a

biennial site visit.

The site visits are not meant to be complete audits, but rather opportunities to

verify the results of a third-party audit and to ensure that corrective actions were

completed. A walk-through of the production areas will provide an indication of the

level of food safety compliance by employees (such as whether or not they are

following Good Manufacturing Practices, GMPs). Because the time required for each

site visit is minimal, compared to a full audit, several can be scheduled by city, state

or region to save on travel expenses.

In summary, dairy product manufacturers have many food safety issues and

opportunities that are unique within the food industry. Strict regulations, the potential

for bacterial and allergenic issues, ingredient concerns and the need for heightened

surveillance of suppliers provide constant challenges. Yet, with all these challenges,

the U.S. dairy supply remains one of the world’s safest.

NETWORKING

So you’ve decided that network marketing is the industry that you want to be in,

whether it’s financial or time freedom that you’re looking for. You’ve realized that

46
working for someone else is not the solution. Congratulations! But it’s not the only

thing you need to know to get started. There are network marketing problems that

every business owner should understand before jumping in headfirst.

This is Part 1 of network marketing problems.

The first of network marketing problems that network marketers need to be aware of

is the idea that you need people!

What does that mean? It means this is a people business. Every network marketing

company focuses one facet of their business on recruiting, and there’s no way around

it. If you are not a people person, get out now and get a job for the rest of your life.

Don’t live the lie that you can build a successful network marketing business without

recruiting a soul.

But if that notion doesn’t deter you, then understand that people are needed for a

reason. Network marketing is no different than any other business in that people are

needed. The resolution to network marketing problems is to find the right people

and bring in the right business partners.

47
It’s an expansion of distribution. Needing people in your business is not much of

network marketing problems because any business cannot be built on the sweat of

one individual. Help is needed at one point or another, otherwise it’s just an over-

glorified job. And I don’t believe that’s why you are where you are.

Think about all the franchises that you know. Do you think they would be so famous

if they never recruited franchisees to open stores all over the world? They didn’t do

it all themselves. Neither should you.

The second of network marketing problems is the notion that there is a stigma about

network marketing. Because of companies and individuals in the past, our industry

has been given a black eye and a dark reputation as nothing more than a scam of time

and money.

That is so far from the truth. There are people that make it in this business just like

any other business any opponent of network marketing can name. It’s no different

than a Fortune 500 company. People label us as pyramids and multi-level, but if you

dissect companies, the structure is the same as any other traditional business.

What makes network marketing unique is that the average person is given a fair

chance to become the top tier without having to own the company, or invent the idea.

However, this reality is not privy to the public, because they are shrouded by the

traditional stigma. Therefore, you have to have chops to be successful in this

industry and understand that people will reject you. If you are the type of person that

needs to be liked by everyone, you’re in for a shock and this business probably isn’t

right for you.

48
But if you can develop some kind of thick skin, you will go far in this industry

because you will know and ignore the network marketing problems.

INDIAN MILK COMPANIES

The size of Indian Milk company

globally is $ 225 billion, while that of


Size of the Industry
the Indian Milk company is $ 4.6

billion.

According to analysis and figures

given by the Confederation of Indian

Market Industries (CII), the total Indian milk

Capitalization market size currently stands at US$750

million and showing growth between

15-20% per annum.

Industry sources estimate a rapid


Output per annum
growth rate of 20% per annum

The overall milk market that includes

Percentage in World product services stands at about

market US$2,980 million, according to CII

estimates.

9. DATA ANALYSIS & DATA INTERPRETATION

ANALYSIS OF DATA

49
Analysis and interpretation of data is based on the survey conducted by the

researcher during 27th June 2014 to 31st July 2014 in the areas of Nagpur market

for Amul Milk Product and its competitors. Analysis and interpretation of data is

also based on the survey conducted on retailers. In this survey the researcher tries to

know the various brand positioning of Amul milk products with the help of

questionnaire. Also researcher tries to ask everything to the retailers relating to the

product, such as price, availability, distribution and quality, etc.

Sources of Data

The various sources of the data can be summarized as follows –

1.Primary sources – Primary sources include

.Industry surveys

.Face to face marketing

. Interviews with consumers

. Industry experts.

.Existing market

.Magazines

.Newspapers

50
2. Secondary sources – Data can be referred to be secondary in nature if the

information provided by the data is not related to the purpose of the research

project work i.e. secondary data accounts to the information for the various other

purposes and not the purpose involved in the given research work.

51
10. CONCLUSION
After analyzing all the data given by shopkeepers and consumers in the “NAGPUR

MARKET”, we found certain key findings that are very important for our project.

1. Most of the retailers are not interested for keeping some of the

A m u l products.

2. Retailers are not satisfied with the services provided by the company.

3. The sale of Amul product is average round the year.

4. The full varieties of products are not available on regular basis.

5. Prices of Amul products are almost as par customers need.

52
11. SUGGESTIONS
1. Retailers want more margins from Amul.

2. People were highly satisfied with product quality of Amul.

3 Retailers are unsatisfied with the replacement of unsold Amul products.

4. Distributors could not provide all type of varieties because of less stock.

5. Demand of Amul milk is less as compare to Dinshaw’s ‘Aahar’.

53
12. BIBLIOGRAPHY

1. WWW.GOOGLE.COM

2. WWW.WIKIPEDIA.COM

3. WWW.WORDPRESS.COM

4. WWW.LINKEDIN.COM

54
13. ANNEXURE

1.Do you have adequate information about AMUL MILK products

The 90% people are know about the AMUL product and 10% people not known about it.

55
2.Are you happy with using the Amul product

INFERENCE:

Here, 70% of the people are happy with to used the AMUL product &

30 % of people are not satisfied with the using the product.

56
3.Do you think AMUL MILK increased his share in the market

INFERENCE:

All the people give the good feedback about the to increased the market share of Amul

57
4.What do you think AMUL give the competition to existing brands in the market

INFERENCE

80% of the people said that AMUL gives the good competitor to the existing brands .
20% of the people said that they believe in the others product

58