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Amul Project Report Suraj
Amul Project Report Suraj
ON
BY
SPECIALISATION:MARKETING
ROLL NO.67
IN PARTIAL FULFILLMENT OF
JULY, 2019
1
DECLARATION
I Suraj G. Chaudhari, hereby declare that project Titled “To study the consumer
behavior and competitive analysis towards amul fresh products in central mumbai”is
an original piece of research work carried out by me under the guidance and supervision of
Dr. Bharati Deshpande(KBS). The information has been collected from genuine &
authentic sources. The work has been submitted in partial fulfillment of the requirement of
MMS to our college.
Date: Signature:
Place: Mumbai Student Name: Suraj Gopal Chaudhari
2
CERTIFICATE
This project report is the record of authentic work carried out by her during the period from
2nd May, 2019 to 30thJune, 2019.
3
ACKNOWLEDGEMENT
It gives me immense pleasure to express my deep thanks and gratitude to my industry mentor and guide
Mr SANDEEP BHARADE, Branch Manager, Amul (Mumbai) for the kind of support and
encouragement he provided us during the entire internship. His timely advice and regular guidance have
helped me to a great extent to accomplish the project.
A special thanks to Mr TEJAS RAMNATHKAR, Territory Sales in Charge, Mr KISHORE INGLE, MR.
RUSHABH MEHTA, who helped and guided me to complete this project and encouraged me to learn
different methodologies at every step.
I would also like to show our gratitude to the Prof. Dr.Bharati Deshpande, head of MMS department for
sharing her pearls of wisdom with me during the course of this project. Her knowledge, suggestions and
mentorship have helped me to explore various dimensions and complete my project.
This internship was a big milestone in my career development. I will use the gained skill and knowledge
in the best possible way in the future.
4
EXECUTIVE SUMMARY
AMUL (Anand Milk Union Limited) is an Indian dairy cooperative body, based at Anand, Gujarat.
Formed in the year 1948, it is a brand managed by Gujarat Cooperative Milk Marketing Federation
Limited (GCMMF), which is owned by 3.6 million milk producers in Gujarat.
The objective of my project was to study the impact of below the line strategies of Amul’s fresh product
division in central Mumbai. The Amul’s fresh product division consists of Milk, Paneer, Buttermilk,
Lassi and Dahi.
In order to complete the objectives of the project, retailer and consumer surveys were done in Sion,
Matunga and Mahim region in considerable number. These surveys helped to understand the buying
behaviour of consumers, selling psychology of retailers and designing of strategies accordingly. Along
with the survey, a focus group discussion and an expert interview were also conducted to understand the
real market scenario. To create awareness among the consumers, kiosk activities and merchandising were
done in Mahim, Kurla and Dharavi, which also led to lead generation.
Distribution and selling are the main problems which were affecting the penetration of Amul products in
the market. Accordingly, strategies were recommended to overcome the issue. Since in most of the areas
people prefer home delivery, strategies were formulated by keeping that set of audience in mind.
The following are some of the strategies we come up with –
Creating Awareness and engagement of consumer about the range of Amul’s product with the
help of creative pamphlet
Providing Amul’s fresh products at their doorstep at MRP price
Engaging young audiences by planning an educational tour of colleges and schools to Amul
manufacturing plants.
Increase in the online presence with the help of celebrity endorsements.
So, these were the marketing strategies suggested to increase the market share and penetration by Central
Mumbai team.
5
CONTENTS
6
Dairy Industry
Dairy activities have been an integral part of our civilization since ancient times. Dairy market
has its web spread across the whole world as people rear milch animals in almost every country.
This sector also helps sustain the farm and rural community worldwide. With an active
consumption of dairy products and their proactive function in the global food system, dairy plays
a crucial role in the growth of the economies worldwide. This new report from IMARC group
entitled “Global Dairy Market Report, Trends and Forecast (2017-2022)” provides a
comprehensive insight into the different segments and sub -segments of the global dairy industry.
The report finds that population growth, rising incomes, health consciousness and thrivin g food
and beverage industries are some of the many reasons due to which the multi -billion dollar
global dairy market has been witnessing stable growth for the past many decades. In recent years,
however, the market has been impacted due to an imbalance in the demand-supply ratio.
Revenues have gone south due to an excess milk production and a sluggish demand in the key
import markets such as China. Fortunately, a slow recovery has been forecasted from
2017 onwards.
The dairy market is projected to be valued at USD 703.5 billion by 2024, while registering a CAGR of
5% over the forecast period.
In 2018, the global milk output was valued at 843 million ton, an increase of 2.2% from the valued
registered in 2017. This increase can be primarily attributed to production expansions in India,
Turkey, the European Union, Pakistan, the United States, and Argentina. However, this factor was
partially offset by a decline in milk output, especially in China and Ukraine.
Increasing demand for dairy products is driven by growing population, higher income levels, and
rising health consciousness. The global market is primarily dominated by the milk segment, followed
by butter and cheese segments. The yogurt and dairy desserts segments are expected to be the fastest
growing segments across the world.
7
Indian Dairy Industry Scenario
India is the world's largest producer and consumer of dairy. The dairy industry in India was worth INR
5,000 billion in 2016. India is also globally the largest milk producing country since 1997. In India, the
co-operatives and private dairies have access to only 20% of the milk produced. Approximately, 34% of
the milk is sold in the unorganized market while 46% is consumed locally. This is in comparison to most
of the developed nations where almost 90% of the surplus milk is passes through the organized sector.
The dairy market in India reached a value of INR 7,916 Billion in 2017. The market is expected to reach
a value of INR 18,599 Billion by 2023, exhibiting a CAGR of around 15% during 2018-2023.
Also it holds essential part in Rural Indian Economy. In spite of having highest number of cows, milk
production per animal is significantly low as compared to other major dairy producer. Along with
offering profitable business opportunities, the dairy industry in India serves as a tool of socio-economic
development. Keeping this in view, the Government of India has introduced various schemes and
initiatives aimed at the development of the dairy sector in the country.
8
INTRODUCTION
GCMMF OVERVIEW:
Total Milk handling capacity per 23.2 Million litres per day
day
9
Cattle feed manufacturing Capacity 6190 Mts. per day
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food
product marketing organization with annual turnover (2014-15) US$ 3.4 billion. Its daily
milk procurement is approx. 14.85 million lit per day from 18,536 village milk cooperative
societies, 17 member unions covering 31 districts, and 3.37 million milk producer members.
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
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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 'Sagar' branded products. It operates through
56 Sales Offices and has a dealer network of 10000 dealers and 10 lakh 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 for the last 16 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.
For its consistent adherence to quality, customer focus and dependability, GCMMF has
received numerous awards and accolades over the years. It received the Rajiv Gandhi
National Quality Award in1999 in Best of All Categories. In 2002 GCMMF bagged India's
Most Respected Company Award instituted by Business World. In 2003, it was awarded the
IMC Ram Krishna Bajaj National Quality Award - 2003 - certificate of merit- for adopting
noteworthy quality management practices for logistics and procurement. GCMMF is the first
and only Indian organization to win topmost International Dairy Federation Marketing Award
for probiotic ice cream launch in 2007. For the innovations, GCMMF has received AIMA-
RK Swamy High Performance brand award 2013 and CNN-IBN innovating for better
tomorrow award in 2014. World Dairy Innovation Awards- 2014 for Best Marketing
Campaign - "Eat Milk with Every Meal". For the tree plantation activity GCMMF has
received seven consecutive Good Green Governance award from Srishti during 2007 to 2013.
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
to live.
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VISION:
Liberate our farmers from economic oppression and lead them to prosperity.
MISSION:
Dairy cooperatives of Gujarat turnover of Rs. 30,000 Crores by the year 2020.
Most producers work with marketing intermediaries to bring their products to market. The
marketing intermediaries make up a marketing channel also called distribution channel.
Distribution channels are sets of interdependent organizations involved in the process of
making a product or service available for use or consumption.
The Head Office of GCMMF is located at Anand. The entire market is divided in 5 zones.
The zonal offices are located at Ahmadabad, Mumbai, New Delhi, Kolkata and Chennai.
Moreover, there are 49 Depots located across the country and GCMMF caters to 13 Export
markets
12
HISTORY
In the year 1946 the first milk union was established. This union was started with 250 liters of
milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known
as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCER’S UNION. This union selected
the brand name AMUL in 1955.
The brand name “AMUL” means “AMULYA”. The word “AMUL” is derived from the
Sanskrit word “AMULYA” was suggested by a quality control expert in Anand, which means
“PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”.
Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk
Powder, Amul Ghee, Amul Spray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul
Ice-cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India.
(Turnover: ` 80.05 billion in 2009-10). Today Amul is a symbol of many things like of the
high-quality products sold at reasonable prices, of the genesis of a vast co-operative network,
of the triumph of indigenous technology, of the marketing survey of a farmer’s organization
and have a proven model for dairy development. (Generally known as “ANAND
PATTERN”).
In the early 40’s, the main source of earning for the farmers of Kaira District were farming
and selling of milk. That time there was high demand for milk in Bombay. The main supplier
the milk was Polson Dairy Limited, which was a privately owned company and held
monopoly over the supply of milk at Bombay from the Kaira District. This system leads to
exploitation of poor and illiterates’ farmers by the private traders. The traders used to beside
the prices of milk and the farmers were forced to accept it without uttering a single word.
13
However, when the exploitation became intolerable, the farmers were frustrated. They
collectively appealed to Sardar Vallabhbhai Patel, who was a lading activist in the freedom
movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a
co-operative union, instead of supplying milk to private traders. Sardar Patel sent the farmers
to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at
Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society
for collection of the milk.
These village societies would collect the milk themselves and would decide the prices at
which they can sell the milk. The district union was also form to collect the milk from
Government should be asked to buy milk from the union
However, the Government did not seem to help farmers by any means. It gave the negative
response by turning down the demand for the milk. To respond to this action of Government
the farmers of Kaira district went on a milk strike. For 15 whole days not a single drop of
milk was sold to the traders. As a result, the Bombay milk scheme was severely affected. The
milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the
condition, he decided to fulfill the farmers demand.
Thus their co-operatives unions were forced at the village and district level to collect and sell
milk on co-operatives basis, without the intervention of Government. Mr. Verghese Kurien
showed main interest in establishing union who was supported by Shri Tribhuvandas Patel
who lead the farmers in forming the Co-operatives unions at the village level. The Kaira
District milk producer’s union was thus established in ANAND and was registered formally
on 14th December 1946. Since farmers sold all the milk in Anand through a co-operative
union, it was commonly resolved to sell the milk under the brand name AMUL.
At the initial stage only 250 liters of milk was collected every day. But with the growing
awareness of the benefits of the co-operatives, the collection of milk increased. Today Amul
collect 11 lakhs liters of milk every day. Since milk was a perishable commodity it becomes
difficult to preserve milk flora longer period. Besides when the milk was to be collected from
the far places, there was a fear of spoiling of milk.
To overcome this problem, the union thought out to develop the chilling unit at various
junctions, which would collect the milk and could chill, so as to preserve it for a longer
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period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is
collected from almost 1073 societies.
With the financial help from UNICEF, assistance from the Government of New Zealand
under the Colombo plan, of ` 50 million for factory to manufacture milk powder and butter
was planned. Dr. Rajendra Prasad, the president of India laid the foundation on November 15,
1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul d
airy on November 20, 1955.
15
PEOPLE POWER: AMUL’S SCERET OF SUCCESS:
The system succeeded mainly because it provides an assured market at remunerative prices
for producers' milk besides acting as a channel to market the production enhancement
package. What's more, it does not disturb the agro-system of the farmers. It also enables the
consumer an access to high quality milk and milk products. 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.
The Union looks after policy formulation, processing and marketing of milk, provision of
technical inputs to enhance milk yield of animals, the artificial insemination service,
veterinary care, better feeds and the like - all through the village societies. Basically the union
and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION
LIMITED), a name which suggest THE TASTE OF INDIA.
16
COMPANY PROFILE
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 middleman
Milk Producers (farmers) control procurement, processing and marketing
Professional management
17
18
The Amul model has helped India to emerge as the largest milk producer in the world. More
than 15 million 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.
19
AWARDS AND ACHIEVEMENTS
Amul receives Srishti Good Green Governance award for the year 2013
Amul wins AIMA High Performance Brand Award-2013 for brand Amul
Amul Bags Srishti G-cube Award for Good Green Governance – 2009
Amul - The Taste of India (GCMMF) Receives International CIO 100 Award for
Resourcefulness
Rajiv Gandhi National Quality Award – 1999
20
SALES TURNOVER
21
MAJOR COMPETITORS OF AMUL
GOWARDHAN:
Gowardhan manufacture dairy products that are not just 100% natural, but also lighter and
rich in calcium. That’s because the milk, procured from its own cow farm- the largest in
Asia- is 100% natural cow’s milk. What’s more, the use of latest European technology in our
manufacturing units ensures superior quality and freshness of our products, giving them the
unique Gowardhan taste and flavor
MAHANAND:
MRSDMM is working a vital link between the milk producers and consumer and working for the
economic development and upliftment of the farmers in the rural areas MRSDMM was established
on 9thjune 1967.at present MRSDMM have 103 member unions (25 district +59 Taluka+ 19 multi-
state unions) with more than 24000 primary milk societies& 25 lakhs which includes approx.
27000 women members. At present, Mahanand dairy is distributing
4.20 lakhs liters milk per day in Mumbai with the help of one packing depot strategically
located at new Mumbai (Capacity 3.00 LLPD)
22
AAREY MILK:
Aarey milk colony was established in year 1948. on 04.03.1951 central dairy, Aarey was
inaugurated by auspicious of then prime minister Shri. Pandit Jawaharlal Nehru. The central
dairy, Aarey was constructed for processing and packing of milk which was collected from
Aareymilk colony and to supply same to consumer of Mumbai city. this dairy is pioneer of its
kind in entire Asia. After 1970 milk produced in mofussil area was also received in this
dairy.it distributed milk in western suburbs of Mumbai city.
GOKUL:
23
MOTHER DAIRY:
24
AMUL FRESH PRODUCT DIVISION
An AMUL segment which offers you a complete range of daily consumable dairy
products including Milk, Dahi, Buttermilk, Fresh Paneer and Lassi. They come
with a shelf life of 2 to 3 days max. Being a fast perishable items and has to be
delivered on time to consumers, it comes under VFMCG category.
1. AMUL GOLD
The most FAT content milk by AMUL in Fresh division with FAT(%) 6.0 min and
SNF (%) 9.0 min. It has been processed with a technology called UHT,
hence also known as UHT milk. AMUL Gold Homogenized Standardized
Milk does not contain any preservatives and the Ultra High Temperature
technology ensures zero microbial activity.
Tip: AMUL Gold should be consumed by the people who have to work hard like
lifting heavy load, have to run here and there whole day, etc. so that high fat
content should be digested easily.
Available SKUs-
● 500ml Poly pack
● 1 litre Poly pack
● 5 litre Poly pack
25
2. AMUL TAAZA
The most preferred AMUL milk variant with Fat (%) 3.0 min content and
SNF (%) *8.5 min. Shelf Life for this product is also 48 Hours from the date of
packing if kept under refrigeration below 8°C. It has also been processed with
UHT which ensures zero microbial activation, while preserving the maximum
flavour, taste, and nutritional value.
Available SKUs-
● 200ml Poly pack
● 500ml Poly pack
● 1 litre Poly pack
● 5 litre Poly pack
3. AMUL DAHI
26
● AMUL Masti Dahi made out of Pasteurised Toned Milk comes with a shelf life of
7 days which could be extended to 15 days if kept in proper refrigeration below
8°C. It is ideal meal accompaniment and is delicious as well as nutritious by itself
too. It is also used to marinate veg. and non-veg. dishes. Dahi is well known for its
nutritive values.
Available SKUs-
● 200gm Poly pack
● 400gm Poly pack
● 1 kg Poly pack
● 100gm Cup
● 200gm Cup
● 400gm Cup
4. AMUL BUTTERMILK
Available SKUs-
● 200ml Poly pack
● 500ml Poly pack
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5. AMUL FRESH PANEER
AMUL fresh paneer is pure, hygienic and rich in proteins. It contains high fat and
low moisture compared to loose paneer. It contains both the freshness of
loose dairy paneer and the quality and safety of packed product.
Available SKUs-
● 100gm block
● 200gm block
● 1kg block
28
OBJECTIVES
To study the consumer buying behaviour of fresh dairy products in the given market.
To collect, analyse and interpret the data gathered from customer and retailer surveys for
understanding the potential of market.
To formulate new marketing strategies which would attract new consumers and expand the
customer base by creating awareness about the different products that Amul has to offer.
To implement new communication channel/tool between buyer and Amul in the given market.
29
RESEARCH METHODOLOGY
Source of Data
Retailer Surveys
Consumer Surveys
Focus Group Discussion
An expert interview
Types of Research
Exploratory Research was used for the consumers to understand their buying patterns
Quantitative Research was used to collect the sales data from various retailer outlets across
the Central Mumbai region.
Sampling- Sampling is the statistical method which is used to analyse a particular set of
observations taken from population. During the duration of the research, Stratified
Sampling method was used for the consumer survey and Convenience Sampling was
used for the Retailers for the analysis of the fetched data.
Target Audience
Number of Retailers Covered: 650
Number of Consumers surveyed: 353
Number of members in Focus Group Discussion: 12
30
CURRENT POSITIONING
M
CHUNABHATTI MATUNGA
U
M
DHARAVI B PRATIKSHYA NAGAR
A
I
GTB NAGAR SION
VADALA
31
RETAILER SURVEY
To cover the entire central Mumbai region, teams were allotted specific regions. Hence, a total of
650 retailers were tapped and required data was collected.
Based on the data collected, six main problematic areas were chosen where Amul penetration
and market share was very low.
These areas were –
Matunga
Chunabhatti
Wadala
Jain Society
King Circle
Sion.
Apart from Amul, which other brands he prefer to sell and why
32
Amul milk Market Share %
120 Amul milk Market Share %
97.5
100
77.18
80 59.89 65.64
52.51 53.91
60
34.21 34.04 35.7
40 29.35
13.73 10.16 8.49 12.85
20 4.31 0
0
33
Main milk Competitor market Share %
100 82.48 82.96
80
60 48.81
29.32 35.7
40 20.03
16.02 14.01 21.67 18.28 16.57
12.877.69 9.87 5.73
20 1.07
0
Chunabhatti
Dharavi
Wadala
Koliwada
Chembur
Anushakti Nagar
Antop Hill
Kings Circle
Kurla
Mahim
Matunga
Jain Society
Pratiksha Nagar
GTB Nagar
Sion
Gandhi Market
Main milk Competitor
market Share %
100 95
85.18 88.05
77.35 83.33
62.96 61.53 62.06
48.14 44.44 42.85
36.66 30
25
0
0 0 0
34
Amul Dahi Market Penetration %
Wadala
38.33 38.88
GTB Nagar
14.28 22.22
0 Gandhi Market
31.03
37.03 Chembur
8.46
Chunabhatti
16.66 6.66
Anushakti Nagar
32.69 30.76
7.54 Dharavi
23.52 28.55 12.5
Mahim
300
250 211
195
200
150
103
100 84
50
0
Milk Dahi Buttermilk Lassi Paneer
When asked whether they will prefer consuming Amul fresh products, more than 70%
said yes, 28% said it depends upon the availability.
35
If not Amul, which brand do you prefer?
20% 23%
9%
21%
20%
7%
Gokul Mother dairy Mahanand Gowardhan Loose Milk Which ever is available
We found that more than 20% of the individual surveyed prefer which ever brand is
available to them nearby, which can be our target audience.
15%
28%
17%
15%
25%
When asked, If Amul is ready to deliver fresh products at their doorstep at MRP without
delivery charges, would they consider?
36
If Amul is ready to deliver fresh products at
your doorstep at MRP without delivery
charges, do you consider?
19%
12%
69%
Yes No Maybe
Thus, based on the responses we have concluded people will prefer Amul fresh products if
delivered at their doorstep on daily basis.
Majority of people are not consuming Amul fresh products because of its low availability and
also they can shift to whichever brand is available to them nearby.
These conclusions led us to conduct a more detailed survey, focusing the residents of various
societies in Matunga and Sion for their concerns regarding the Home delivery of Amul Fresh
products.
Kiosk activities and merchandising activities were conducted in the area of Mahim, Dharavi and
Kurla to understand the consumers perception.
A focus group discussion was held to understand the preferences of the consumer.
37
EXPERT INTERVIEW
Aim: To understand Mumbai market with respect to AMUL & Business of the
dairy industry as a whole
We Started the interview with asking about the current scenario of the fresh
product division in Mumbai market. After that we shifted towards the current
marketing strategies that are being implemented AMUL. The interview was then
driven towards the competition AMUL faces with respect to Milk, Buttermilk and
Dahi in Mumbai Market. Then we focused on different variants of the products.
We also asked him about other companies as how they see them as a competitor
and what they think that who is the closest competitor to them. Eventually, the
interview moved towards the issues faced by the company in previous years and
how they tackled them. Reasons for the problems that came out from the survey
were then focused on. Then we asked him about the system, that how the system
works in AMUL for a new distributor or stakeholder. And lastly, we talked about
the perception regarding loose milk and pouch milk.
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Major Outcomes:
✔ AMUL is very strong in Central Mumbai among all the areas of Mumbai. It
has a very strong hold in Kurla, Antop Hill,Chembur whereas it is almost a
monopoly in the western Mumbai suburban areas of Borivali, Dahisar, etc.
✔ AMUL has almost 17 lakh litres of sales of milk in Mumbai. Out of which
major sales is of AMUL Taaza. Dahi has around 50 metric tonnes of sales
while buttermilk accounts to 3 lakh litres.
✔ Distribution Channel is little weak in Sion area in comparison to other
Central Mumbai areas.
✔ Fresh Paneer penetration is the worst among the fresh products division.
✔ Main issue with the retailers/vendors is the margin given to them. But the
issue is neutralized by volume they sell.
✔ Proper area demarcation strategy has worked in some areas in Mumbai
market.
✔ Tie up with a daily subscription service company for home delivery name
SUPR DAILY. It’s an application based delivery service which is providing
milk and milk products on subscription bases.
✔ Good supply chain results in no shortage of fresh products, even if shortage
is faced in the market.
✔ AMUL is also looking to come up with the online platform for milk service.
✔ They are also looking forward for procuring cow milk with good FAT from
other states in Maharashtra.
39
MARKET ANALYSIS USING RESEARCH STRATEGIES
1. SWOT ANALYSIS
STRENGTHS WEAKNESS
Brand Equity Cost of operation
Quality Availability
OPPORTUNITY THREAT
Exports Local players
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STPD ANALYSIS
SEGMENTATION TARGETING
Geographic – central Mumbai
Mass market player
Demographic - 4 years and above
No premium offering
Psychographic – Attitude
Quality with affordability - USP
Behavioural – Loyalty
POSITIONING DIFFERENTIATION
Global presence and largest milk Consumer advertising
Producer
Non- broadcast media
Middle to upper class customer
Affordable pricing
Emotional Content – The Taste of
India
41
INFERENCES
● After analysing the Questionnaire, it is concluded that AMUL has a good
reputation amongst its customers and created many satisfied customers
but lack proper distribution and marketing channels.
● Very few distributors are in a particular area which not only resulted in
improper distribution but also resulted in monopoly of these distributors.
● The situation can be improved by sound marketing and proper
distribution channel which results in delivery on time.
● AMUL has a good reputation and name because of existence in the
market for so many years especially through the product “AMUL
Butter”.
● Within a short span of time AMUL has launched so many products which
lack awareness amongst consumers as well as availability.
● AMUL is a good example of firms that are able to develop control
process through better use of operational practices and supply chain
coordination are the one that are able to serve large volumes and enjoy
top line growth in revenue.
● AMUL is adopting defensive strategies, moving consumers to loose milk
to packaged milk and gradually move them up the value chain. Being
exposed to brand, it is natural for customer to use more products.
● AMUL lacks the use of BTL activities to target the middle class and
lower middle class section of the society which in turn affects their sales
and awareness.
● Most of the areas were dominated by Home Delivery and it was a perfect
opportunity space for AMUL to brand their product.
On the basis of the above inferences and surveys, few marketing strategies were
formulated so as to better the situation of AMUL products in the Central Mumbai
region. These startegies were derived with an aim to increase awareness and
availability of the products.
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PROPOSED STRATEGIES
To reach the maximum number of consumer, what we decided was to distribute the creative
pamphlet along with the news paper in the required market. The pamphlet consists of a QR code
which will redirect the consumer to the sign up page.
Those who want to get the Amul product at MRP at doorstep; they just have to sign up the form.
Following is the sample of pamphlet used –
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CREATING AWARENESS THROUGH KIOSK ACTIVITY
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FUTURE SCOPE
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RECOMMENDATIONS
This industry is most competitive industry; there are large numbers of competitors
in this field. In such condition a small loop may create big problems following
things are Necessary to improve the sales in the city:
a. Advertisement
b. Distribution
c. Service
d. Credit policy
e. Replacement policy
1. Advertisement:
This is the most important factor that affects both the sales as well as the
consumer attention. AMUL has to take aggressive advertising centred
specially for newly launched products.
2. Distribution
The replenishment is average and often damaged material came on account
of improper handling by distributors due to this it is difficult to retain the
customer. The number of distributor operating in an area also very low in
number which also adds to improper distribution.
3. Service
It is the critical factor in the success of any brand. There is no doubt that
AMUL services are good but it needs little more improvement to completely
capture the market.
4. Credit policy
The company should give credit period policy to their distributors so that it
will lead to increase in their sales and gain more customers.
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REFERENCES
http://www.drkurien.com/biography
https://www.prnewswire.com/news-releases/global-dairy-industry---the-
milky-way-271782401.html
https://www.imarcgroup.com/dairy-industry-in-india
https://economictimes.indiatimes.com/industry/cons-products/food/dairy-
industry-hails-budget-2019-says-measures-would-increase-farmers-
income/articleshow/67792204.cms?from=mdr
https://www.businesswire.com
https://amul.com/m/about-us
https://www.scribd.com
https://www.thebetterindia.com
https://bbamantra.com
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