A study on customer satisfaction for Amul milk and other Amul products

Jainil Bane
Abstract
With rising number of firms providing milk and other milk products, this study tries to
understand and analyze the level of satisfaction amongst consumers of Amul. The following study
understands the preferences of consumers who consume Amul milk and other Amul products, by
comparing their preference levels and purchase frequency.

Keywords:
Consumer satisfaction, Amul products, Demogrphics, Purchase frequency,

Introduction
Amul’s seeds were sown in in Anand, where the farmers were exploited by the local trade cartel.
After being victims to unfair trade practices, a co-operative was formed with just two village
dairy co-operative societies and 247 litres of milk, which grew over time to be know as Amul
Dairy. Today the co-operative giant has diversified into, milk products ranging from cheese,
paneer, chocolates etc. The firm has tied up with global supermarket chain Walmart to sell it’s
range of products. It also sells its products to Nepal. Now India is looking to capture
neighborhood markets like Pakistan, Bangladesh etc.

Research Objective
The objective of this study is to find which Amul products do consumers use, brands the
consumers choose regularly for consumption of milk, cheese and paneer, and the rate at which
consumers purchase these products.
Other objectives include:-

 To know the demographic factors which are influencing the purchase and consumption of
Amul milk and other Milk products.
Literature Review:
The Gujarat Cooperative Milk Marketing Federation, who manages the brand Amul was awarded as the
best FMCG in the food sector in October (2017). The turnover has recorded a growth of 238 percent in
the last 7 years which reflects an impressive cumulative average growth rate of 19% during this period.
Thus showing that the demand grew over the 7 years period.

A paper published in January (2015) which focused on co-operatives in India with reference to a
five year plan. Which concludes that co-operatives in India including Amul have grown
tremendously and have further potential to grow, but need further proper attention as they could
be nurtured. Suggestions such as reforms in co-operative laws have been mentioned with
recommended mergers and acquisitions wherever necessary.
There are very less studies that have been published on the customer satisfaction of Amul milk
and other Amul milk products. The study is one of the first few to be published.

Research Methodology:
The method followed is quantitative in nature. With all the data being collected via online
questionnaires with a mix of phone call interviews. Sampling is done across various occupations,
gender , income groups and age groups.

Demography :
GENDER

Gender Of Respondents

Female
41% Female
Male
Male
59%
AGE

Age Groups Of Respondents

41-50 yrs
31-40 yrs
5%
2%

15-20 years
16%
15-20 years
21-30 years
31-40 yrs
41-50 yrs
21-30 years
77%

OCCUPATION

Occupation Of Respondents
Homemaker
2%

Self-employed
Homemaker
18%
Self-employed
Student
50% Services

Services Student
30%
Family Type

Family Types Of Respondents

Joint
20%

Joint
Nuclear

Nuclear
80%

Monthly Family Income

Monthly Family Income Of Respondents

less than 1,00,000 -

50,000 1,50,000 1,50,000 -
13% 16% 2,00,000 1,00,000 - 1,50,000
7%
1,50,000 - 2,00,000
Above 2,00,000 50,000 - 1,00,000
23%
50,000 - 1,00,000 Above 2,00,000
41%
less than 50,000
Data Analysis

P- Test
More than 25% of joint families consume amul milk on a regular
Ho:µ basis
Less than 25% of joint families consume amul milk on a regular
Ha:µ basis

Row Labels Count of Which Milk brand do you prefer for regular use? [Amul]
Joint 9
Grand Total 9

-0.61632
T Left tail
T P Test
A 10%
P 10%
C -1.28155
O
X 9
N 43
P' 21%
P 25%
Q 75%
P*Q 18.7500%
sqrt((p*q)/n) 0.066034
-
Z observed -0.61632 1.28155

p-value 0.268843

alpha 10%
Failed to reject the
D null

Observation:
The observed is greater than the critical. Thus failed to reject the null.

Insight:
Less than 25% of joint families consume Amul milk as consumers who tend to live in joint
families are bound to follow certain family trends and buying milk from local vendors who is
known is a custom in an Indian household.
Anova
The average age of consumers who purchase Amul cheese is same across all
Ho:µ occupations
The average age of consumers who purchase Amul cheese is not same across all
Ha:µ occupations

Anova: Two-Factor Without Replication

SUMMARY Count Sum Average Variance

Sometimes 4.00 25.00 6.25 156.25

Yes 4.00 101.19 25.30 3.05

Homemaker 2.00 25.00 12.50 312.50

Self-employed 2.00 25.00 12.50 312.50

Services 2.00 27.69 13.85 383.43

Student 2.00 48.50 24.25 1.13

ANOVA
Source of Variation SS df MS F P-value F crit α
Rows 725.66 1.00 725.66 7.67 0.07 5.54 0.10 Reject the null
Columns 193.99 3.00 64.66 0.68 0.62 5.39 0.10 Fail to reject the null
Error 283.90 3.00 94.63

Total 1,203.55 7.00

Observation:
The average age is same across all occupation who purchase amul cheese.

Insight:
Consumer perception about amul is the same since generations as a requirement.
T- Test
The average age of consumers purchasing amul cheese is less than or
Ho:µ equal 22 years
The average age of consumers purchasing amul cheese is more than 22
Ha:µ years

MEAN 24.94 0.674

SD 5.48488
T Right Tail
T T test
Alpha 10%

t-critical 0.674

Observed

x' 24.94
µ 22
s 5.48488
sqrt(n) 6.557439 3.51

x'-µ 2.94
s/sqrt(n) 0.836436
t
observed 3.518716
P
A 10%
D Reject the null
Limitations of the research :

1. Data collected using the Primary Source was limited to only Online Forums and the ones
who didn’t have the means of access to internet were excluded from the research.
2. The data collected may have been biased for the reason that the respondents were only
from a closed specified area (Mumbai) only so the inferences may not apply to the entire
population.

Conclusion:
The above study shows the customer satisfaction by measuring firstly the attitude of joint
families towards Amul milk. Which according to their attitudes comes in line, as less than 25%
of joint families consume Amul milk on a regular basis. Thus Amul should establish a campaign
to encourage more joint families to consume Amul milk. Secondly the average age of consumers
who purchase Amul cheese is same across all occupations this cements Amul has a household
product that is a necessity across all occupations thus showing that Amul cheese has become a
necessity in Indian household thus showing that customers are satisfied with it and continue to
purchase it. The average of consumers for Amul cheese is less than or equal to 22 years which
shows that on an average the consumers of Amul cheese are in the lower age group thus Amul
should embark on an advertisement campaign which holds these customers as the average age of
consumers who purchase Amul cheese is same across all occupations. Thus enabling it to
retrieve it’s existing customer base. Thus the study shows that consumers are satisfied with Amul
milk and other Amul products.

References :

http://www.abrmr.com/myfile/conference_proceedings/Con_Pro_16615/2015iciee_india5.pdf
http://www.amul.com
http://www.amul.com/files/pdf/GCMMF_awarded_best_MCG_food_sector_by_IAA.pdf