Amul Milk Case Study

Factors Influencing Retailer’s Buying Decision Of Amul Milk with respect to its Competitors.
Amul
A SUMMER INTERNSHIP
PROJECT REPORT
on
“Factors Influencing Retailers’ Buying Decision of Amul Milk with Respect To Its Competitors
in PCMC Area”
GCMMF (AMUL) Ltd.
PUNE (Maharashtra) Region
SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE PGDM

DEGREE COURSE OF BALAJI INSTITUTE MODERN MANAGEMENT (BIMM)
BALAJI INSTITUTE OF MODERN MANAGEMENT

S. No. 55/2-7, TATHAWADE, NEAR WAKAD,
OFF. MUMBAI-BANGALORE BYPASS
PUNE (411 033)
GUIDED BY: SUBMITTEED BY :

Mr. Pranil Jadhav Ayush Garg
(Assistant Manager, Sales) MM1820205
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Factors Influencing Retailer’s Buying Decision Of Amul Milk with respect to its Competitors. Amul
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DECLARATION
I hereby declare that the follwing project report titled “Factors Influencing Retailer’s Buying
Decision of Amul Milk with respect To Its Competitors in PCMC Area”
is an authenticate work done by me. It is true to the best of my knowledge and belief.
This is to declare that all my work indulged my work indulged in the completion of this
Project Report is a profound and honest work of mine.
Date:-
Signature
Ayush Garg
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ACKNOWLEDGEMENT
As a part of curriculum at Sri Balaji Society, the “Summer internship Program” aims at
overall development of the students by providing them an opportunity to gain corporate
exposure and space to apply their theoretical knowledge in practice in a mutually beneficial
manner. No summer internship can be successful without the support of the people who keep
themselves closely involved with the student undergone the program.
The wealth of knowledge and guidance shared and provided by these professional is
invaluable
I have given my all dedication to this project and have been able manage all of thing as
professional. However, it would not have been possible without the kind support and help of
many individuals from industry and organizations. I would like to extend my hearties
Gratitude to all of them.
First and foremost, I would like to thank GCMMF (AMUL) Ltd. for giving me an
opportunity to do my internship in their esteemed organization. I express my sincere gratitude
towards Mr Pranil Jadhav and Mr Ashutosh Raut whose constant guidance was a major
morale booster during my training.
This internship would not be complete without the support of our Prof (Col)
A.Balasubramanian, President of Sri Balaji Society. I would also like to thank our Director
Dr Archana Srivstava for their guidance and unflinching support throughout the phases of
my Internship.
Last but not the least, my endless appreciation goes to my family who has stood by my side
and given me moral support whenever I was low and boosted my will power.
I perceive this opportunity as a big milestone in my career development. I shall strive to use
gained skills and knowledge in the best possible way, and will continue to work on their
improvement, in order to attain desired career objectives. Hope to continue cooperation with
all of you in the future
Thank You!
Ayush Garg
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TABLE OF CONTENT
1. Executive Summary…………………………………………………6
2. Introduction.........................................................................................8
2.1 Industry Profile……………………………8
2.2. Company Profile………………………..12
2.3 Business Model...................................... 16
2.4 Competition Profile.................................18
3. Product Profile…………………………………………………….19
4. Company Growth………………………………………………….31
5. Promotional Campaign…………………………………………….32
6. Objective..........................................................................................34
7. Research Methodology…………………………………................35
8. Hypothesis.......................................................................................37
9. Literature Review............................................................................38
10.Data Analysis and Interpretation………..……………………….................41

9. Findings……………………………………………………………..58
10. Recommendations and Suggestions………………………………...60
11. Limitations of the study……………………………………………..60
12. Conclusion………………………………………………………….60
12. References ……………………………………………………….....61
13. Appendix…………………………………………………………….62
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EXECUTIVE SUMMARY
India is not only the largest milk and dairy products consuming country in the entire world, but we
are also among the fastest growing dairy markets across the globe. Therefore, global competitors are
entering into the Indian market. Dairy market is growing with a pace of 22% which makes dairies
attractive to invest in this segment.
In today’s competition in the field of business, it is a must for a company to have full information
about the customer’s need and requirement and also about the competitors and their strategies. This
enables the company to exploit the full potential of the market & to meet the expectations. For this
purpose a survey is required.
 What is the study about?
This study is about the identifying the factors that influence the retailers’ buying decision of Amul
milk with respect its competitors. Study also focuses on scope for identifying problems faced by
retailers and finding a solution to them. In this study I found out about presence of dairy products in
market and expectation and views of retailers regarding distributor.
My project title is “Factors influencing retailers’ buying decision of Amul milk with respect to its
competitors” and the duration was 2 months.
The study started with the survey of market(area) allocated by the company mentor, Detailed
analysis of competitor’s brand presence and their products was done. The study leads us to conduct a
survey regarding sales promotion and way of working of company in distribution channel and
knowledge about competitor’s product and their offerings. This helped us to lay the understanding of
Competitor’s tactics to enter in the market.
This study tells us about GCMMF’s (Amul) strategy to gain competitive advantage over its
competitors through strong and reliable distribution channel. This survey was conducted to get first
hand information from retailers on competitor presence and tactics used for penetrating the market
and evaluation of services of distributors and views on sales promotion activities.
 What kind of data has been used?
The data used in this report is from primary and secondary sources. The primary data has been
collected through personal interviews and structured questionnaires where both direct and indirect
questions were mentioned. In case of secondary data, it was recorded by the distributor and the
company’s website, newspapers and internet sources.
 What is the procedure to collect primary data?
The procedure for collecting data was through a structured questionnaire designed by a discussion
with the mentor. It has been filled in by retailers who were the respondents. The questionnaire was
filled face to face with a discussion with the respondents. Further, data was analyzed using tools of
SPSS.
 Which research methodology has been used?
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In this research methodology, I have used exploratory and descriptive research methodology. The
findings and propositions developed as a consequence of exploratory research might be tested and
authenticated by conclusive research.
Sample size of 110 retail outlets is selected on basis of convenience sampling (Pimpri Chinchwad
Area) for collecting primary data.
 What are the findings and conclusions?
It was found out that Amul does not have a significant market share in area under survey due to low
margins and local brand inclination of the customers. Amul has a few distribution problems and less
customer demand in comparison to its competitors especially Chitale & Gokul.
Retailers are mostly found unsatisfied with problem handling regarding replacement of products,
packing dates not printed on the packets.
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INTRODUCTION
2.1 INDUSTRY PROFILE

Domestic Dairy Scene
India continued to be the largest milk producing nation in the world, with milk production
anticipated to be 196.3 million tonnes in 2020 – an increase by about 3.9 per cent over the previous
year. The estimated per capita availability of milk increased to 302 grams per day which is more than
the world average of 294 grams per day. Per capita availability of milk in developed countries is
estimated at 831 grams per day and in Asia the same is estimated at 186 grams per day. The dairy
cooperatives procured about 12.5 million tonnes of milk as compared to 12.2 million tonnes in the
previous year, registering a growth of 2.5 per cent. Liquid milk marketing by the cooperatives stood
at 11 million tonnes as compared to 10.4 million tonnes in the previous year – an increase of about
5.8 per cent. The wholesale price indices of fodder and cotton seed oil cakes increased by more than
10 per cent during the year. To offset the high input cost for milk production the cooperatives paid a
higher procurement price to milk producers.
The International Dairy Situation

FAO reported 0.7 per cent increase in milk production from 762 million tonnes in 2012 to 767
million tonnes in 2013. International prices of dairy commodities which were relatively high during
the early part of the financial year, declined during middle of the year but increased substantially by
the end of the year. With reduced availability of milk powder stocks due to drought in Oceania, price
of milk powder registered an increase of more than 40 per cent during the year as compared to
previous year. Taking advantage of high prices and low stock levels, India exported about 0.17
million tonnes of milk powder, including milk powder equivalent of casein.
Highlights of NDDB Annual Report 2014-15
 18 per cent, The country‟s share in world milk production.

 146.3 million tonnes milk production recorded milk production .
 8,745 villages were covered with additional membership of 1,77,507 producers under NDP-I.
Global Dairy Industry Analysis
Due to the remarkable efforts of Indian dairy farmers, per-capita milk availability of India which was
only 110 gm per day till 1970s, has now exceeded 315 gm per day.
Today, milk is the largest agricultural crop in India with market value exceeding Rs 4 lakh crore (US
$ 65 billion) per annum and the milk group contributes the highest to the total output of our
agricultural sector, surpassing the output value of wheat, rice and oilseeds.
Milk directly affects livelihood of more than 150 million Indian farmers; a vast majority of whom
are small and marginal farmers. Further, most of the dairy business in organized sector is in the
hands of cooperatives, which are owned by farmers themselves.
In fact dairy cooperatives have triggered a socio-economic revolution in rural India by generating
gainful employment for the most vulnerable sections of our rural population; especially rural women
and landless labourers.
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Milk production in our country is growing at a healthy rate of 4.5% per annum and is expected to
touch 200 Million MTs per annum by 2020. India has tremendous potential for increasing production
of milk as the current yield of milch animals is still very low, about 3 litres per animal per day, as
compared to the developed world where the yield is around 30 litres per animal per day.
Several programs such as National Dairy Plan (NDP) of Government of India implemented through
NDDB, with outlay of Rs 18000 Crore (USD 2.9 billion), are currently being implemented in our
country, with the objective of improving productivity of Milch animals. This will ensure that growth
in milk production is in sync with expected growth in demand for branded, packaged dairy products
in this country.
India is not only the largest milk and dairy products consuming country in the entire world, but we
are also among the fastest growing dairy markets across the globe.
Nations such as New Zealand, Australia and EU which have sizable export surpluses in dairy sector
are trying every means at their disposal to gain access to Indian dairy market on highly favourable
terms. Their latest strategy is to demand inclusion of dairy products under bilateral FTA (Free Trade
Agreement) negotiations, currently underway with these countries.
Faced with the prospect of mounting inventory of dairy commodities on one hand and stagnating
demand in their own home markets, these countries intend to use India as a dumping ground for their
export surpluses. If they succeed in their objective, then domestic dairy industry of India will be
crippled forever. This in turn will have a devastating impact on our rural economy, adversely
impacting livelihood of 150 million small and marginal farmers.
If EU, Australia, New Zealand and other dairy export surplus countries gain access to Indian market
at concessional or even zero import duty, India stands to lose its self-sufficiency in dairy sector,
severely compromising the food-security of our nation in coming decades.
The pragmatic and responsible policy environment of last sixty years has not only made India, the
largest milk producing nation but also the only country in the world, where dairy cooperatives ensure
that 80% of consumer’s rupee flows back to the farmers. In most of the developed countries, only
35% to 38% of consumer’s dollar ultimately flows back to the dairy farmers.
The year 2014 witnessed continuous growth in milk production, in the major milk exporting
countries. On the other hand, import demand from China has actually declined in the same year.
Trade sanctions by Russia have also led to accumulation of dairy commodities inventory in EU.
Due to softening in the import demand for dairy products and higher production in major exporting
countries, there has been a major meltdown in global prices of dairy commodities. Farm-gate prices
of milk continue to fall in countries such as Australia, New Zealand and EU nations, which are
heavily dependent on dairy exports. These countries are lobbying hard for access to Indian dairy
market through bilateral Free Trade Agreement negotiations.
On the other hand, India’s access to the markets of developed countries is being denied by several
non-Tariff Barriers like FMD, Brucellosis, Residue monitoring, Alfatoxin etc.
In Australia, there are just 6300 dairy farms, supporting similar number of people engaged in dairy
farming. Similarly, in New Zealand, there are only 12000 dairy farms supporting similar number of
people engaged in dairy farming. On the other hand, in India, there are 150 million small and
marginal dairy farmers, dependent on dairying for their livelihood. Due to limited domestic market,
countries such as Australia and New Zealand have to export most of their dairy production and are
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constantly looking out for new markets. This is the reason why these countries are deeply interested
in free access to Indian dairy markets.
It may be pertinent to note that EU does not allow import of Indian dairy products as they do not
approve any Indian dairy plant for export to EU, under their so called extremely strict Sanitary and
Phyto-Sanitary (SPS) standards. These are actually non-tariff barriers imposed by them, which India
has never been able to break. It may be noted that whole of Europe does not permit import of any of
dairy products from India under one or other non-tariff barrier even if India is willing to pay import
duties. Since their own domestic markets within EU are stagnant, they are actually trying to protect
their markets through different tactics.
EU is providing very high subsidy on exports of dairy products to their milk producers which results
into lower prices of milk powder and fat based products such as Ghee and butter. They can dump
such subsidized products at low prices if the market access is granted to EU at concessional or zero
import duty. Unfortunately, under FTA, India cannot negotiate on these subsidies but we must keep
this factor in mind during FTA negotiations.
Major dairy exporting countries are actually anticipating huge market opportunity in India once the
comprehensive free trade agreement is ratified and hence are looking forward for every way to
utilize marketing opportunity in India. We need to be conscious of the fact that our own national
interest should not be hampered.
EU is also demanding GI protection of certain variety of Cheeses which are of EU origin. Many of
these cheese variants have been manufactured in India since several years and granting GI protection
now, will adversely impact both our dairy farmers as well as Indian consumers. It is pertinent to note
that in entire Europe, one can find ethnic Indian products such as paneer and lassi, which have been
manufactured in dairy plants within EU. However, EU is not willing to grant GI protection to India
for these ethnic Indian dairy products.
We request our policy makers to keep in mind the fate that China’s domestic dairy industry suffered
after entering into FTA with New Zealand on dairy products. China’s milk production was growing
at a very healthy rate of 25.5% till 2008, but soon after China signed FTA with NZ, China’s import
dependency increased suddenly and has resulted into stagnation in local milk production. Thus, FTA
only helped in killing domestic industry within China and increased outflow of foreign exchange
towards huge import of dairy products. It would also be useful for us to learn from Canada, a country
which has pro-actively ensured protection for its own domestic industry, while negotiating FTA’s
with other nations.
In the 1960's, the situation was quite similar since even then, Europe was saddled with mountain of
surplus milk powder & butter stocks. In order to protect their own market, European countries were
trying to dump these stocks into market of some developing country, in guise of free aid. Instead of
allowing free import of subsidized dairy commodities, Government of India on advice of Dr.
VergheseKurien, decided to monetize this aid and use generated funds to develop infrastructure for
Indian dairy industry.
Granting concessions or free market access to major dairy exporting countries under FTA
negotiations will be contradictory to the “Make in India” strategy of our Honorable Prime Minister.
Our policy makers should never allow FTA for 12 products or raw material which is abundantly
available in India. India has the potential to be the dairy to the world. On the other hand, modern
machinery and state-of-the-art technology which is not available in India and are necessary for the
development of domestic dairy industry should actually be brought under the purview of FTA and
we can reduce duty on their import from developed countries. This is necessary for manufacturing
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technologically superior dairy products for Indian consumers and truly achieves the goal of 'Make in
India'.
Major Players of Fresh Milk/Products in Market -
 GCMMF Ltd. (AMUL).

 Katraj Dairy
 Chitle
 Gokul
 Govind
 Mother Dairy
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2.2 COMPANY PROFILE
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food product
marketing organization with annual turnover . Its daily milk procurement is approx. 23 million lit per
day from 18,700 village milk cooperative societies, 18 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 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 IMC Ramakrishna Bajaj National Quality
Award-2018. It also received 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 Category. In 2002 GCMMF bagged India's Most Respected Company Award
instituted by Business World. In 2003, it was awarded the The IMC Ramkrishna 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
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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 hope. To live.
Shri Ramsinhbhai P Parmar, Chairman, GCMMF informed that during the last nine years, our milk
procurement has witnessed a phenomenal increase of 153%. This enormous growth was a result of
the high milk procurement price paid to our farmer-members which has increased by 105% in this
period. He further added that considering the urbanization and population growth estimates, it is
envisaged that India needs around 600 million metric tonnes of milk per year (65 crore liters per day)
in the year 2050-51 from current level of 176 million metric tonnes per year (48 crore liters per day)
to fulfill the demand for milk and milk products. This means that India’s milk production needs to
grow at around 3.2% CAGR for the next 40 years. This can be possible only when dairy farmers are
given stable and remunerative prices through proper market linkage. In order to achieve this
estimated growth in demand, the time is ripe for the Second White Revolution in India. Shri
Jethabhai Bharwad, Vice Chairman, GCMMF has informed that for the last 21 years, India continues
to be the largest producer of milk in the world and is likely to retain its prime position with an annual
growth rate of 5.5% during the last three to four years as against global milk production, which is
growing at 2.0%. India contributes almost 50% of the global growth in milk production. The
monetary value of milk produced in India is around Rs. 7 lakh crores which is more than which is
more than the total value of all pulses and grain put together.
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GCMMF - An Overview
Year of Establishment 1973
Members 18 District Cooperative Milk Producers' Unions
No. of Producer Members 3.6 Million
No. of Village Societies 18,700
Total Milk handling capacity per day 32 Million litres per day
Milk Collection (Total - 2018-19) 8.4 billion litres
Milk collection (Daily Average 2018-19) 23 million litres
Cattlefeed manufacturing Capacity 7800 Mts. per day
Sales Turnover -(2018-19) Rs. 33150 Crores (US $ 4.9 Billion)
GCMMF Member Unions
1. Kaira District Cooperative Milk Producers' Union Ltd., Anand

2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana
3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar
4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur
5. Surat District Cooperative Milk Producers' Union Ltd., Surat
6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara
7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra
8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad
9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch
10.Ahmedabad District Cooperative Milk Producers' Union Ltd.,Ahmedabad
11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot
12. Gandhinagar District Cooperative Milk Producers'Union Ltd., Gandhinagar
13. Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranagar
14. Amreli District Cooperative Milk Producers Union Ltd., Amreli
15. Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar
16.Kutch District Cooperative Milk Producers' Union Ltd., Anjar
17. Junagadh District Cooperative Milk Producers' Union Limited, Junagadh
18. Porbandar District Cooperative Milk Producer’s union Limited, Porbandar.
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Sales Turnover Rs (million) US$ (in million)

1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504
2009-10 80053 1700
2010-11 97742 2172
2011-12 116680 2500
2012-13 137350 2540
2013-14 181434 3024
2014-15 207330 3410
2015-16 229720 3500
2016-17 270430 4100
2017-18 292250 4393
2018-19 331500 4989
(Source: https://www.amul.com/m/oraganisation)
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2.3 BUSINESS MODEL
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 Producers (farmers) control procurement, processing and marketing
 Professional management
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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.
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2.4 Competitors Profile
Chitale
Chitale Dairy was founded by the great visionary, Late Shri Bhaskar Ganesh alias Babasaheb Chitale
(B. G. Chitale). A journey that began in 1939, in the small town of Bhilawadi set the stage for a
revolution in the country's dairy industry. The trail to a milk revolution was set ablaze by Babasaheb,
much before the dairy cooperative movement took roots in the country. He possessed strong business
acumen and vision that was well ahead of his time. He believed that a true revolution can only
happen if all the farmers join forces to support a common cause, of commercialising the dairy
activity into a full-fledged industry.
Babasaheb's philosophy was simple – to provide the best quality milk produce at the most
competitive rates with a view to uplift each and every member of the extended Chitale farmer
family! His remarkable contribution to the dairy industry earned him the unofficial tag as 'the Father
of India's Dairy Industry'.
Katraj
'Katraj Dairy' in the local and branded as "Katraj", a district level co-operative organization
registered in 1960, involved in processing milk and milk products. The representatives of milk
producing farmers based in rurals, encompassing almost the entire Pune District, manage this
organization on behalf of the milk producers for their (rural India) socio-economic growth. The
objective of Katraj is to build a value chain of farmers to source milk at an organized level,
manufacture products with high standards and sale these products in the competitive open market
place.
The organization has a unique advantage of its strategic location as it is based in Pune city, a place
with historic and cultural importance and a major district place in Maharashtra, India with a sound
Educational and industrial infrastructure, located about 180 kilometers from Mumbai (the financial
capital of India)
Gokul
Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd. well known with its popular brand ‘Gokul‘ is
an Operation Flood cooperative dairy project established on 16thMarch 1963.The Gokul Dudh
Sangh Products
Branded as Gokul Products, they include Milk, Shrikhand, Ghee, Table Butter, Skimmed Milk
Powder & Desi Butter.
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PRODUCT PROFILE
 Product Details
Product Name Amul Cow Milk

Pasteurised Cow milk. Amul milk meets the FSSAI standards for the
Description
respective type of milk.
Poly Pack - 500ml, 1000ml
Packing
* In Selected markets only
 Product Specifications
FAT(%) 3.5 min

Composition
SNF (%)* 8.5 min
Nutritional Information Nutritional Information*
Serving Size 200 ml
Amount per 100 ml
Energy 62 kcal
Energy from FAT 32 kcal
Total FAT 3.5 g
Saturated FAT 2.3 g
Cholesterol 8 mg
Total Carbohydrate 4.7 g
Added Sugar 0g
Protein 3.1 g
Calcium 102 mg
Phosphorus 130 mg
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Sodium 50 mg
Thiamine 42.5 mcg
Riboflavin 120 mcg
Niacin 100 mcg
Folic Acid 7.5 mcg
Vit. A(Retinol) 32 mcg
*Approx. values
48 Hours from the date of packing if kept under refrigeration below
Shelf Life
8°C
Storage condition Under Refrigeration (Below 8°C)
 Product Features
 Amul Milk is the most hygienic liquid milk available in the market.
 It is pasteurized in state-of-the-art processing plants and pouch-packed to make it
conveniently available to consumers.
 Product Application
Direct consumption, Making of : Tea or Coffee, Sweets, Khoa, Curd, Buttermilk, Ghee
 Available in (Segments/Markets)
Gujarat, Mumbai, Delhi, Udaipur, Jodhpur, Pali , Pune, Aurangabad, Jaipur and Ajmer
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 Product Details
Product Name Amul Gold

Pasteurised milk Amul milk meets the PFA standards for the respective
Description
type of milk.
Poly Pack - 500ml, 1000ml, 5 Ltr *
Packing
FAT(%) 6.0 min

Composition
SNF (%)* 9.0 min
Serving Size 200 ml
Amount per 100 ml
Energy 87 kcal
Total FAT 6g
Saturated FAT 3.7 g
Cholesterol 16 mg
Added Sugar 0g
Protein 3.3 g
Calcium 150 mg
Phosphorus 130 mg
Sodium 50 mg
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Thiamine 42 mcg
Riboflavin 120 mcg
Niacin 100 mcg
Folic Acid 7.5 mcg
*Approx. values
Shelf Life
8°C
Product Features
 Amul Milk is the most hygenic liquid milk available in the market.
 It is pasteurised in state-of-the-art processing plants and pouch-packed to make it
Product Application
Direct consumption, Making of Tea or Coffee, Sweets, Khoa, Curd, Buttermilk, Ghee
Available in (Segments/Markets)
Gujarat, Delhi & NCR, Mumbai, Kolkata, Kanpur, Lucknow, Allahabad, Agra, Meerut, Aligarh,
Asansol, Nagpur, Raipur, Indore, Bhopal, Jaipur, Ajmer, Pushkar, Udaipur, Jodhpur, Pali , Pune,
Nasik.
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 Product Details
Product Name Amul Taaza

Pasteurised Milk Amul milk meets the PFA standards for the respective
Description
type of milk.
Poly Pack - 500ml, 1000ml, 200ml, 5 Ltr *
Packing
* In selected markets only
Fat (%) 3.0 min

Composition
SNF (%) *8.5 min
Serving Size 200 ml
Amount per 100 ml
Energy 58 kcal
Total FAT 3g
Saturated FAT 1.9 g
Cholesterol 8 mg
Added Sugar 0g
Protein 3.1 g
Calcium 150 mg
Phosphorus 130 mg
Sodium 50 mg
Thiamine 42.5 mcg
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Riboflavin 120 mcg

Niacin 100 mcg
Folic Acid 7.5 mcg
*Approx. values
Shelf Life
8°C
Product Features
 Amul Milk is the most hygenic liquid milk available in the market.
Product Application
Asansol, Nagpur, Raipur, Indore, Bhopal, Jaipur, Ajmer, Pushkar, Udaipur, Jodhpur, Pali, Pune,
Nasik
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 Product Details
Amul Slim and Trim Milk

Product Name
Pasteurised Milk Amul milk meets the PFA standards for the respective
Description
type of milk.
Poly Pack– 6 L*, 5 L*, 1 L*, 500ml, 350ml*, 300ml*,200ml*
Packing
* In selected markets only
Fat (%) 1.5 min

Composition
SNF (%) *9.0 min
Nutritional Information Nutritional Information per 100g (approx. values)
Total
Energy, kcal 45.9 5.0
Carbohydrate, g
Total Fat, g 1.5 Added Sugar, g 0.0
Saturated Fat, g 1.0 Protein, g 3.1
Trans Fat, g 0.0 Calcium, mg 108.0
Shelf Life
8°C
Product Features
 Amul Milk is the most hygienic liquid milk available in the market.
Product Application
Asansol, Nagpur, Raipur, Indore, Bhopal, Jaipur, Ajmer, Pushkar, Udaipur, Jodhpur, Pali, Pune,
Nasik
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 Product Details
Product Name Amul Masti Dahi

Description Curd made from Pasteurised Toned Milk
Poly Pack - 200 gm, 400 gm, 1 kg *
Packing PP Cup - 200 gm, 400 gm, 100 gm *
Composition
Amount per 100 g
Energy 62 kcal
Energy from Fat 28 kcal
Total Fat 3.1 g
Saturated fat 1.9 g
Cholesterol 8 mg
Total Carbohydrate, g 4.4 g
Added Sugar 0g
Protein 4.1 g
Calcium 183 mg
Phosphorus 158 mg
Sodium 61 mg
Thiamine 51.5 mcg
Riboflavin 146 mcg
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Niacin 122 ncg

Folic Acid 9.2 mcg
Vit. A (Retinol) 65 mcg
Not a significant source of Vitamin C, Iron and Dietary fiber.
*Approx. values
Shelf Life Poly Pack - 7 Days from the date of packaging PP Cup - 15 Days
Storage condition Under Refrigeration (Below 8C)
Product Features
 Dahi or Curd plays a key role in the Indian diet and in preparation of delicious dishes like
Dahi Wada, DahiBatataPuri, Dahi Rice, DahiIdli, Dahi Raita, Kadhi and Muglai Food.
 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.
 The answer to making great tasting dishes is fresh, creamy and good quality dahi - "Amul
MastiDahi."
"AMUL MASTI" Dahi:
 Making fresh Dahi is cumbersome, time consuming chore and can cause great embarrassment
to the house wife when it is not prepared properly.
 Dahi prepared by local shop owners or at home varies in terms of quality & culture used.
 Amul Dahi is prepared in controlled conditions i.e. maintaining proper temperatures to grow
beneficial bacteria and to avoid growth of harmful bacteria.
 It is difficult to maintain controlled conditions at Home or at local shop level.
 Many times the quality of Dahi available from the local market is far from satisfactory and
often found to be contaminated as the culture used do not contain 100% beneficial bacteria.
 AMUL MastiDahi is a pasteurized product i.e. free from unwanted bacteria.
 AMUL MastiDahi is prepared with selected culture having pro health bacteria. The culture is
developed after in depth research.
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Superiority of Amul Masti Dahi:
 Amul Masti Dahi is prepared from purest, freshest pasteurized milk and it is free from added
sugar.
 What's more, Amul MastiDahi doesn't contain any preservatives.
 Amul MastiDahi is prepared from certified and selected bacterial culture which gives
excellent curd.
 Amul MastiDahi is hygienically processed and packed in a reusable plastic tub as well as
convenient pouch and thus free from possible adulteration.
 Amul MastiDahi is high on nutrition and taste.
 Thick, creamy Amul MastiDahi has a rich, glossy texture. Food tastes even more delicious at
the snap of your fingers.
 The live microflora in Amul MastiDahi helps the digestive system and enhances the immune
system's ability to fight harmful organisms. It improves the body's natural defenses and helps
keep the body functioning at its best.
 Amul MastiDahi having a probiotic nature contains live bacterial culture which increases
milk digestibility, quickens recovery from certain types of diarrhea, skin infections, enhances
immune function of the body and encourages the body to function in the best possible and
most natural way.
 Amul MastiDahi contains all goodness of milk such as proteins, carbohydrates, fats, calcium,
phosphorous, magnesium, zinc, iodine and vitamins.
 Lactic acid in Amul MastiDahi is helpful in absorption and utilization of calcium.
 Amul MastiDahi is a quality product from the house of "Amul" at affordable price which
gives "value for money".
Product Application
 Direct consumption
 Making of Lassee, Dahi Wada, DahiBatataPuri, Dahi Rice, DahiIdli, Dahi Raita, Kadhi and
Muglai Food.
 To marinate veg. and non-veg. dishes
Amul MastiDahi is widely available in: Gujarat, Delhi & NCR, Western UP, Mumbai, Pune, Nagpur,
Raipur, Udaipur, Jodhpur, Jaipur, Indore, Bhopal, Chennai, Banglore
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 Product Details
Product Name Amul Pouch Butter Milk

Description Pasteurized Buttermilk meets the PFA standards.
Packing Poly Pack - 500ml
FAT(%) 1.0
Composition SNF (%) 5.5
Acidity 0.8% Max
Nutritional Information*
Amount per 100 g
Energy, kcal 26
Energy from Fat, kcal 9
Total Fat, g 1
Nutritional Information Saturated fat,g 0.5
Cholesterol, mg 3
Total Carbohydrate, g 2.3
Added Sugar, g 0
Protein, g 2.1
Calcium, mg 91
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Sodium, mg 30
Phosphorous, mg 79
Thiamine, mcg 25
Riboflavin, mcg 73
Niacin, mcg 61
Folic acid, mcg 4.5
*Approx. values
48 Hours from the date of packing if kept under Refrigeration below
Shelf Life
8°C
Product Features
 It is produced in very hygienic and clean atmosphere.

 Scientific bacterial culture in Amul Buttermilk improves digestion.
 It is conventionally packed in pouches and easily available at Amul Milk outlets spread all
over major cities of India.
 Buttermilk is traditionally known as "Chhash" (Gujarat & MP), "Mattha" (UP & Delhi),
"Tak" (Maharastra), "Ghol" (Bengal).
Product Application
Take a glass full in early morning in place of Tea, Amul Buttermilk will improve the digestive
function.
Replace your soup with Amul Buttermilk, it will give you dieting benefits.
Take a glass of Amul Buttermilk after lunch / dinner for better digestion.
Just give "Tadka" to Amul Buttermilk and use it as your "Dal".
Add some coriander cumin and salt to Amul Buttermilk and your guest offering is ready.
You can prepare BesanKadhi from Amul buttermilk.
Gujarat, Delhi & NCR, Mumbai, Kanpur, Lucknow, Allahabad, Faridabad, Agra, Meerut, Aligarh,
Nagpur, Raipur, Jaipur, Ajmer, Pushkar, Udaipur, Jodhpur, Pali.
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COMPANY GROWTH
Gujarat Co-operative Milk Marketing Federation Ltd., which markets the popular Amul brand of
milk and dairy products, has registered 13 per cent increase in turnover at Rs 33,150 crore for the last
fiscal on an across-the-board sales increase. Gujarat Co-operative Milk Marketing Federation
(GCMMF), which markets Amul brand of milk and dairy products, had posted a turnover of Rs
29,225crore last year. The turnover of GCMMF has increased by about 3 times in the last seven
years.
"We have achieved volume sales growth in all product categories," said R S Sodhi, Managing
Director, GCMMF.Pouch milk, the highest turnover product, has shown volume growth in double
digits while products like butter, ghee, ice cream, UHT milk, flavoured milk, paneer and fresh cream
have also registered a double-digit growth.Sodhi asserted that there was no negative impact
of demonetisation on its business.
He added that member unions of GCMMF have opened more than 12.5 lakh new bank accounts for
milk producer members and their almost entire payment is channelised through bank accounts.
GCMMF has been achieving a compound annual growth rate (CAGR) of more than 20 per cent for
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the last seven years because of higher milk procurement, continuous expansion in terms of adding
new markets, launching of new products and adding new milk processing capacities across India.
Amul plans to step up its milk processing capacity to 380 lakh litres per day, from the current 300
lakh litres, in the next three years, said Jethabhai Patel, Chairman, GCMMF.
1. PROMOTIONAL CAMPAIGN BY AMUL
We had kiosk to promote Amul milk, through which we were supposed to promote Amul Gold, the
full cream milk. The campaign was conducted outside retail stores where footfalls were
guite high,. Generally it is in a market place where the numbers of retail outlets are
more.
This has the colour coding similar to the packaging of the product and also the name of the
respective product was printed on that which helps the customers and retailers to recognize the
product.
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OUT-OF-HOME ADVERTISING: HOARDINGS AND BANNERS
OOH is the advertising that reaches the consumers while they are outside their homes. Under this
promotional activity the company put up hoardings and banners to the feasible places so that it can
easily observed by the consumers. For Amul promotion we have provided hoardings and banners to
each and every retail outlets those wants to sale Amul products for Amul milk, Amul Mastidahi and
Amul Buttermilk. By this the retail outlets has been recognised that they are selling Amul products
and customer demanding that particular product.
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OBJECTIVE OF STUDY
Primary Objectives:
 To identify factors which influence retailers to stock and sell Amul milk.
Secondary Objectives:
 To identify the problems, if any, faced by retailers selling Amul milk.
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RESEARCH METHODOLOGY
The Research was conducted from 2nd May to 30th June 2019. The research includes meetings with
the retailers. It included preparation of the questionnaire to be answered by the above people for
knowing the competitive position of Amul in the market. The views of the parties were recorded in
the research as per the questionnaire set by me.
Data Collection Method:
I have used survey method for data collection. Survey is the most commonly used method.
Data Sources:
A) Primary Data:
The primary data was collected through questionnaires. They were filled using the scheduled method
of data collection by the researcher. Herein, face to face interviews were conducted between research
executive and the respondent. Data was collected through a survey. The questionnaire was prepared
considering various parameters and thus had a mix of open and closed ended questions using various
scales to measure the responses and draw easy conclusions form the study .The research would leave
very little room for any discrepancy or misinterpretation of the asked questions since researcher
would interview the respondents face to face and also give an insight into their body language of the
respondents making use of observation technique along with the survey method. Also, observation
technique was used to study consumer behavior patterns at retail outlets.
B) Secondary Data:
I collected data from magazines, newspapers and different websites. The secondary sources were
used only for collecting information regarding the sample, they were however not used for analysis.
Sampling:
Step 1) Defining the population:

In case the research is conducted in only Pune, considering the city and its huge population, I have
selected the population from PCMC covering all strata of society. I have segmented it further onto a
very specific sampling group covering all the decision makers in the case of milk.
Step 2) Specify the sampling frame:

The sampling frame in my case is the map of the city. The sample specific suburban regions is taken
covering all the directions of the city from only Pune West.
Step 3) Specify the sampling unit:

In my case I have considered 1 sample units to be studied - Retailers. I have undertaken random
sampling in the selected areas and defined our sample units in the said criteria.
Step 4) Specify the sampling method:

Convenience sampling was adopted in where I approached retailers
Step 5) Determination of sample size:
The sample size for study is 110 retailers for the survey.
Areas covered:
Pimpri Chinchwad
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Population Covered:
Retailers
Tools Utilized:
Percentage analysis
Graph chart
Research Instruments:
A) Questionnaire method:
The research instrument was structured questionnaire designed for the respondents. The
questionnaire was for the retailers. There was also area maps.
Types of questions:
The second important aspect in designing a question is to decide which questions are to be asked.
Questions can be classified in various ways. Questionnaire contains following type of information:
Open ended and multiple choice questions.
Phrasing of questions:
In questionnaire, I have tried to phrase the questions in a logical way. For eg. I arrange questions in
sequence as personal information, income, product preferences and finally related to feedback. The
questionnaire consists of all 3 types of questions. Mostly all questions are multiple type questions.
Personal Interview:
It is direct form of investigation involving face to face communication with free feedback
information. It offers a sense of participation. It is more flexible form of data collection. Use of
unstructured open ended question is possible. Rate of refusal is low. Depth interview is possible.
Complex questions can be asked. The interview can have questions to secure more information.
Observation approach can be combined to verify age, income, status, standard information, and
visual aids in the form of catalogues, samples etc. can be used to get views, opinions and attitudes of
responder.
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Hypothesis
1.
Ho- There is no significant relationship between margin and retailers’ buying decision of retailer
H1- There is significant relationship between margin and retailers’ buying decision
2.
Ho- There is no significant relationship between consumer demand and retailers’ buying decision
of retailer
H1- There is significant relationship between consumer demand and retailers’ buying decision
3.
Ho- There is no significant relationship between brand name and retailers’ buying decision of
retailer
H1- There is significant relationship between brand name and retailers’ buying decision
37|P a g e
LITERATURE REVIEW
Category of milk and dairy products has been seeing some of the most frenetic activity over the past
couple of years. Multinational and Indian corporate giants have jumped into the market. Start-ups
have cropped up. Fund raising is taking place at a frenzied pace, both from the equity markets and
via private equity funding. And new products and innovations are being launched fast and furious.
Meanwhile, the 800 pound gorilla in the market - the Rs 33150 crore Amul (2018/19), is managed by
the Gujarat Cooperative Milk Marketing Federation (GCMMF) - is aggressively throwing resources
to protect its turf. It wants to hit Rs 65,000 crore in revenues by 2024.
But Amul is facing unprecedented challenge from all sorts of players. Groupe Lactalis SA, the
world's largest dairy products company, picked up Hyderabad-based Tirumala Milk from private
equity player Carlyle. A few months ago, ITC had jumped into the fray with its Aashirvaad brand of
ghee and a promise to add a lot more products. Last week, Parag Milk Foods, a Maharashtra-based
milk company, raised about Rs 750 crore in an initial public offering (IPO) to beef up its operation.
A year ago, Maharashtra based Prabhat Dairy had raised Rs 473.89 crore in an IPO for the same
reason. Godrej Agrovet raised its stake from 10 per cent to 25 per cent in Creamline Dairy for Rs 150
crore. Private equity players have pumped in Rs 900 crore already in the past couple of years.
Meanwhile, Danone, Nestle and other existing private sector players are adding to their product line-
ups and pushing in big money into the market while home-grown dairy cooperatives such as Mother
Dairy and Nandini, among others, are also expanding their operations rapidly. And other big global
dairy companies are all eyeing the market. Crisil Ratings estimates that investments worth Rs 15,000
crore will flow into the milk business in India in the next two years.
It is an extremely attractive market, both because of its size and its potential. It is also, however, a
marketplace fraught with danger that can sink even big players because of its sheer complexity. Over
the next few years, the dairy market will see the mother of all market battles as the newcomers try to
take away share from Amul, Mother Dairy and the other cooperatives, which have largely ruled the
roost so far. But it could also prove a graveyard for many a player, Indian and global
Out of the 400 million litres of milk that India produces per day, 160 million litres per day (48 per
cent) is retained by the producers for their own consumption. The surplus milk that is available for
sale is around 240 million litres per day (52 per cent) and out of that only 70 million litres per day is
being used by the organised sector - consisting of co-operatives such as Amul, Mother Dairy
(wholly-owned subsidiary of NDDB) and Nandini (a brand owned by the Karnataka Cooperative
Milk Producers Federation (KMF), as well as private sector players such as Nestle and Danone. Over
170 million litres of the surplus milk continues to be with the unorganised sector, comprising
traditional doodhwalas. In value terms, the Indian milk economy is worth Rs 5 lakh crore, growing at
a CAGR of 15-16 per cent, out of which the organised milk economy is worth Rs 80,000 crore
The turnover of Gujarat Cooperative Milk Marketing Federation (GCMMF) rose 11 per cent to
Rs.23,005 crore during 2015-16 fiscal.
"After taking into consideration the continuous rise in demand for Amul products, we are
anticipating at least 20 per cent growth in our turnover for next 4 years," GCMMF Managing
Director R S Sodhi told PTI.
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COMPETITIVE STRATEGY
Structural Analysis of Industries
The essence of formulating competitive strategy is relating a company to its environment. Although
the relevant environment is very broad, encompassing social as well as economic forces, the key
aspect of the firm’s environment is the industry or industries in which it competes. Industry structure
has a strong influence in determining the competitive rules of the game as the strategies potentially
available to the firm.
The state of competition in an industry depends on the five basis competitive forces, which are
mention in below in figure.
The goal of competitive strategy for a business unit in an industry is to find a position in the industry
where the company can best defend itself against these competitive forces or can influence them in
its favor.
39|P a g e
The five competitive forces- entry, threat of substitution, bargaining power of buyers, bargaining
power of suppliers, and rivalry among current competitors – reflect the fact that competition in an
industry goes well beyond the established players. Customers, suppliers, substitutes, and potential
entrants are all “competitors” to firms in the industry and may be more or less prominent depending
on the particular circumstances. Competition in this broader sense might be termed as extended
rivalry.
All five competitive forces jointly determine the intensity of industry competition and profitability,
and the strongest force or forces are governing and become crucial from the point of view of strong
formulation.
The application of above model on Fresh Milk/Products market is as follow:
Threat of New Entrants

Fresh Milk/Products market has huge potential. India has always been the largest producer (an
estimated 400 million litre per day currently) and consumer of milk in the world. New entrants from
domestic market, State dairy cooperatives are spreading their arms to enter into the National market.
Coca-cola is also planning to enter Indian Dairy industry that might prove out to be a major threat.
Bargaining power of Suppliers

Due to the Dairy cooperative Union, most of the dairy farmers are linked to a particular cooperative
union which provide them high return on investment with fair treatment of their cattle. Dairy farmers
are not suppliers; they are member of these unions. So bargaining power of suppliers do not exist in
the present scenario.
Bargaining power of Buyers

Fresh Milk/Products are the traditional Indian Basic products which are available in a convenient
format by Amul which is widely accepted by customer due to its quality products and affordable
price. The concept which is followed by GCMMF is „value for money‟. This gives them better
positioning in mind of customers. They have wide range of products which enables them to lower
threat from buyers.
Threat of Substitutions
There are many substitutes available in case of fresh mik products, So the threat is high, despite of
the fact Amul enjoys high profitability in case of its other quality products.
Intensity of rivalry among existing competitors

Intensity of rivalry among competitors is moderate, There are large number of competitors which
includes local dairy cooperatives such as Chitale, Gokul, Katraj dairy and local dudhwalas. Amul has
wider range of products than its competitor which made the competitors inefficient. As compared to
others Amul has strong distribution network
40|P a g e
Analysis & Interpretation:
Q1. Number of retailers stocking Milk.
Sample Size (Retailers stocking milk)
Yes
110
Interpretation:
A total of 110 retailers were surveyed who stock milk in PCMC area.
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Q2. Percent of retailers stocking Amul milk.
Do you stock/sell Amul milk?

No Yes
18%
82%
Interpretation: The above pie chart shows that out of a sample of 110 retailers, 82% of retailers
sell Amul milk.
There is still room for Amul to expand their market.
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Q3. What all brands do retailers stock/sell.
Presence in No. of outlets
Katraj 65
Mother Dairy 50
Govind 85
Presence in No. of outlets

Gokul 90
Amul 95
Chitle 80
0 20 40 60 80 100
Interpretation:
The above graph shows that majority of the retailers stock Amul milk(95), followed y Gokul(90) and
Govind(85) very closely.
Katraj and Mother Dairy’s presence is comparatively less (65 & 50 respectively).
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Q4. Daily counter sale of milk.
What is your daily counter sale of milk?

<60 120-180 litres 60-120 litres Above 180 litres
9% 9%
32%
50%
Interpretation:
From the above pie chart, it can be observed that about 50% of the retailers stock 6—120 litres of
milk daily, around 9% store less than 60 litres, 32% 120-180 litres and a mere 9% store more than
180 litres of milk daily.
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Q5. Daily counter share of Amul Milk.
What is counter share of Amul milk?

<15 litre 15-30 litres 30-45 litres 45-60 litres (blank)
10%
16%
32%
42%
Interpretation:
From the pie chart we can observe that around 42% of the retailers stock only 15-30 litres of milk,
which can be increased.
32% of the respondents store around 30-45 litres of milk and a mere 10% of them stock 45-60 litres
of milk.
16% of the respondents stock even less than 15 litres of milk.
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Q6. Reason for no/less stocking of Amul milk.
Reason for less/no stocking of Amul milk
Low consumer demand 30
No distributor available 5
No replacement policy 50
Frequency
Absence of packaging date 15
Low Margin
90
0
20
40
60
80
100
Interpretation:
It can be observed that major chunk of the retailers have given low margins as the answer for less
stocking of Amul milk.
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Q7. Satisfaction with margin provided by Amul.
Satisfaction level with respect to Margin

50
50
40 35
30
20
Total
20
10 5
0
1 2 3 4
Interpretation:
Here, 1 is the option for least satisfaction, and 5 very satisfied ,3 being neutral.
Majority of the respondents have opted not satisfied and least satisfied with 85 responses combined
for dissatisfaction out of the sample size of 110.
It is evident that less than 20% of the retailers are satisfied with the margin provided by Amul to its
retailers.
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Q8. Rate how much you are satisfied with the services of distributor on a scale of 1-5.
A) Availability of stock
Satisfaction (Availability Of Stock)

70 65
60
50
40
30
Total
20 15
10
10 5
0
Somewhat Neutral Somewhat Very satisfied
Dissatisfied Satisfied
Interpretation:
75 out of 110 retailers are satisfied or very satisfied with stock availability with distributor and a
small number i.e. 10 out of 110 are dissatisfied with availability of stock attribute.
B) Timely Delivery
Satisfaction (Timely Delivery)

55
60
50
40
30
Total
15
20 10 10
10
0
Somewhat Neutral Somewhat Very
Dissatisfied Satisfied satisfied
Interpretation:
From the bar diagram we can observe that 65 respondents are either satisfied or very satisfied with
on time delivery attrbiute of the distributor.
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C) Complaint Handling
Satisfaction (complaint
handling)
60
60
40 25
10 Total
20
0
Somewhat Neutral Somewhat
Dissatisfied Satisfied
Interpretation:
Majority of the retailers(60) are not satisfied with the complaints being handled by distributor.
D) Communication about offers, price changes etc.
Satisfaction(communication)
100 85
80
60 Total
40
10
20
0
Neutral Somewhat Satisfied
Interpretation:
It can be seen in the graph that 85 retailers responded that they are somewhat satisfied with the
communication about offers, prices etc and there’s no negative feedback.
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Q9. Satisfaction with the frequency of visits of Amul representative.
Satisfaction scale(Amul reprsentative)
60 55
50
40
25 Total
30
20 15
10
0
2 3 4
Interpretation:
It can be observed that 55 respondents gave neutral response with respect to satisfaction with
frequency of Amul rep. visits depicting that it is immaterial to them.
25 said that they were not satisfied and 15 were satisfied.
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Q10. Grievance handling procedure of Amul.
Grievance Resolving Procedure of Amul

80
80
70
60
50
Total
40
30
20
10
10 5 5
0
1 2 3 4
Interpretation:
The graph shows satisfaction with the grievance handling procedure of Amul on a scale of 1 to 5.
It can be seen that majority of the retailers (85) are not satisfied with the grievance handling
procedure of Amul which is quite astonishing.
Only 10 of the retailers are satisfied.
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Q11. The importance of attributes of Amul milk that affect retailers’ buying decision.
Rating on the scale of 1 to 5.
Importance of factors w.r.t buying decision

90 85
80
80
70
60
60
50
40
40 35 35
30 25 25
20 20
20
10 5 5
0 0 0 0
0
Quality Availability Consumer Demand Packaging
Least Important Not Important Neutral Important Very Important
Importance of factors w.r.t buying decision

100 95
90 85 85
80 75
70
60 55
50
40 35
30 25 25 25
20
20 10
10 5 5 5
0 0 0 0 0 0 0 0 0 0 0
0
Brand Name Margin Distributor Service Grievance Handling Frequency of visits of
Amul Rep
Least Important Not Important Neutral Important Very Important
52|P a g e
Interpretation:
It can be interpreted that there is a mix response for importance of quality of milk with 40 responses
being for important and 35 for not important.
Availability has received 80 responses for important and 5 for very important making it an important
factor for retailers’ decision .
Consumer demand can be seen as even more important factor with all responses coming for
important and very important.
Similarly brand name has received 95 responses for important and 10 very important.
Packaging has got more of neutral responses depicting that it is not that relevant to the retailers or
making decision.
Margin seems to be the most important factor with 70 responses for important and 35 responses for
very important depicting its importance.
Distributor service is another somewhat important factor with 85 responses for important.
53|P a g e
Chi-Square Testing
Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent

how important is Margin as
110 85.3% 19 14.7% 129 100.0%
factor * Buying decision
How important is Margin as factor * Buying decision Crosstabulation

Count
Buying decision
No Yes Total
how important is Margin as important 10 65 75
factor very important 10 25 35
Total 20 90 110
Chi-Square Tests
Asymptotic
Significance (2- Exact Sig. (2- Exact Sig. (1-
Value df sided) sided) sided)
a
Pearson Chi-Square 3.725 1 .054
b
Continuity Correction 2.771 1 .096
Likelihood Ratio 3.531 1 .060
Fisher's Exact Test .066 .051
N of Valid Cases 110
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 6.36.
b. Computed only for a 2x2 table
54|P a g e
Symmetric Measures
Approximate
Value Significance
Nominal by Nominal Phi -.184 .054

Cramer's V .184 .054
Contingency Coefficient .181 .054

Conclusion -As the significance level is more than 0.05, hence null hypothesis is accepted.,
Therefore, There is no significant relationship between margin and buying decision of retailer.
2.
How important is brand name * Buying decision Crosstabulation

Count
Buying decision
No Yes Total
how important is brand name not important 0 5 5
important 15 80 95
very important 5 5 10
Total 20 90 110
Chi-Square Tests
Asymptotic
Significance (2-
Value df sided)
Pearson Chi-Square 8.282a 2 .016
a. 3 cells (50.0%) have expected count less than 5. The minimum expected
count is .91.
55|P a g e
Symmetric Measures
Approximate
Value Significance
Nominal by Nominal Phi .274 .016


Conclusion- As the significance level is less than 0.05, hence null hypothesis is not accepted.,
Therefore, There is a significant relationship between brand name and buying decision of retailer.
3.
How important is consumer demand * Buying decision Crosstabulation

Count
Buying decision
No Yes Total
how important is consumer important 10 75 85

demand very important 10 15 25
Total 20 90 110
Chi-Square Tests
Asymptotic
Significance (2- Exact Sig. (2- Exact Sig. (1-
Value df sided) sided) sided)
a
Pearson Chi-Square 10.353 1 .001
b
Continuity Correction 8.542 1 .003
Fisher's Exact Test .003 .003
a. 1 cells (25.0%) have expected count less than 5. The minimum expected count is 4.55.
b. Computed only for a 2x2 table
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Symmetric Measures
Approximate
Value Significance
Nominal by Nominal Phi -.307 .001


Conclusion- As the significance level is less than 0.05, hence null hypothesis is not accepted.,
Therefore, There is a significant relationship between consumer demand and buying decision of
retailer.
57|P a g e
FINDINGS:
 50% of the retailers stock 60-120 litres of milk daily, around 9% store less than 60 litres, 32%
120-180 litres and a mere 9% store more than 180 litres of milk daily.
 Around 42% of the retailers stock only 15-30 litres of milk, which can be increased.
32% of the respondents store around 30-45 litres of milk and a mere 10% of them stock 45-
60 litres of milk.
 About 59% of retailers stock Katraj, 45% stock Mother Dairy, 77% stock Govind, 82% stock
gokul, 86% stock Amul and around 73% stock chitle.
 Around 82% of the retailers gave reason for stocking less/no amul milk of low margin
 50 % of the respondents gave neutral response, 13.6% gave satisfied response and almost
23% said that they are unsatisfied with frequency of visits of Amul rep. to their retail store.
 It can be interpreted that there is a mix response for importance of quality of milk with 40
responses being for important and 35 for not important.
 Availability has received 80 responses for important and 5 for very important making it an
important factor for retailers’ decision.
 About 77% of the retailers are dissatisfied with grievance handling procedure of amul.
58|P a g e
General Findings
 Amul is still the market leader at the respective area because of high demand from the end
customers due to brand name. Also Amul provides good quality products in low price as
compared to other brands.
 Retailers are less interested to sale Amul products because of low profitable margin and no
replacement policy while other brands providing high margin as well as facilitate the retailers
with timely replacement.
 It has been observed that retailers facing problem with pouch packaging mostly leakage while
handling so they prefer hard packaging such as tetra pack or cup especially for Amul (curd &
buttermilk) products because they don’t provide any replacement.
 It has been found that the brand preference for the retailers is depending upon the margin
provided by the company to them, high margin means high demand from the retailers side,
but because of high consumer demand, and market pull, despite very low margins retailers
keep amul milk, or else they lose out on sales.
 Also a good scheme or offer, packaging and availability influence the retailers to sale the
product.
 There’s a lack of coordination among the distributors and service department resulting in
dissatisfaction among retailers.
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RECOMMENDATIONS AND SUGGESTIONS

.
 Retailers have a high rate of dissatisfaction.with respect to the grievance handling procedure,
so concerned department should focus on that.
 Product price for the end consumer is low as compared to competitor’s products so they can
slightly increase the product price and provide a healthy margin to the retailers.
 Company should take care of retailers by solving their problems and should call back or
timely visit should be given to retail outlets by appointing separate company representative.
LIMITATIONS OF THE STUDY
 The survey is limited only for PCMC region of Pune

 Time period of the project was 8 weeks, which may not be enough to understand the whole
market.
 Data analysis is done on the responses given by respondents.
 Present study is carried in 2 months (from 2-05-2019 to 30-6-201).
CONCLUSION
The factors that affect the buying decision of retailers are mainly brand name, the strong consumer
demand and quality. Amul should not let these factors get down.
Though most of the retailers are dissatisfied with margin provided by Amul, still retailers tend to
stock Amul milk because of strong consumer demand, brand name along with other factors.
60|P a g e
REFERENCES
BOOKS:
I. Marketing Management (14th Edition) - Philip kotler, Kevin Lane Keller, Abraham
Koshy andMithileshwar Jha
II. Research Methodology – Dr Deepak Chawla and Dr NeenaSondhi

( Chapter 3-page no-46, Chapter 5- page no-85, Chapter-8 page -175)
WEBSITES:
I. Amul growth rate:-http://www.amul.com/files/pdf/GCMMF-Sales-Turnover-crossed-

Rs-33,000-crores-Mark-English-01-04-2016.pdf
II. About AMUL brand: - http://www.amul.com/m/brands
III. Organisation:-http://www.amul.com/m/organisation
IV. Research :- http://www.marketresearch.com/search/results.asp?query=amul
V. Research methodology: http://www.newagepublishers.com/samplechapter/000896.pdf
VI. News feed:-http://timesofindia.indiatimes.com/city/vadodara/Amul-brand-is-now-

worth-5-billion/articleshow/52804279.cms(01 July, 2019 12:28 PM)
VII. Industry:-
https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&
uact=8&ved=0ahUKEwjP7OT1n97NAhUFF5QKHXQUBUQQFggmMAA&url=http
%3A%2F%2Fwww.imarcgroup.com%2Fdairy-industry-in-
india&usg=AFQjCNEEo1JOLukfm9Ysu54oOVPdbZj46g&sig2=j6UOiVAg0mXhEn
mawoibyw
61|P a g e
Appendix
Questionnaire
Q1. * Required
Name of the Retailer
Q2.Do you stock/sell milk? *

Yes
No
Page 1 of 2
Q3. Do you stock/sell Amul milk? *

Yes
No
Q4. What all brands of Milk do you stock/sell? *

Chitle
Amul
Gokul
Govind
Mother Dairy
Katraj
Other:
Q5. What is your daily counter sale of milk? *

<60
60-120 litres
120-180 litres
Above 180 litres
62|P a g e
Q6. What is counter share of Amul milk?

<15 litre
15-30 litres
30-45 litres
45-60 litres
Above 60 litres
Other:
Q7. Reasons for less/non-stocking of Amul milk?

Low Margin
Absence of packaging date
No Replacement Policy
No distributor available
Low consumer demand
Other:
Q8. How much satisfied are you with the margin provided by Amul compared to its competition
brands? *
Not at all satisfied
1
2
3
4
5
Fully satisfied
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Q9. Rate how much you are satisfied with the services of distributor on a scale of 1 to 5.
Very Dissatisfied
Somewhat Dissatisfied
Neutral
Somewhat Satisfied
Very satisfied
1. )Availability of stock
2.Timely Delivery
3. Complaint Handling
4. Communication about offers, price changes etc.
5. Availability of stock
6. Timely Delivery
7. Complaint Handling
8. Communication about offers, price changes etc.
Q10. Rate how much you are satisfied with the frequency of visits of Amul representative to your
retail outlet.
Very Dissatisfied
1
2
3
4
5
Very satisfied
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Q11. Rate the grievance resolving procedure of Amul.

Very Poor
1
2
3
4
5
Very Good
Q12.Rate on the scale of 1 to 5, the importance of attributes of Amul milk that affect your buying
decision. *
Least Important
Not Important
Neutral
Important
Very Important
1.Quality
2.Availability
3.Consumer Demand
4.Packaging
5. Brand Name
6. Margin
7. Distributor Service
8. Grievance Resolving
9. Frequency of visits of Amul representative
Page 2 of 2
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Factors Influencing Retailer’s Buying Decision Of Amul Milk with respect to its Competitors.

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE PGDM

BALAJI INSTITUTE OF MODERN MANAGEMENT

GUIDED BY: SUBMITTEED BY :

10.Data Analysis and Interpretation………..……………………….................41

 What is the study about?

 What kind of data has been used?

 What is the procedure to collect primary data?

 Which research methodology has been used?

 What are the findings and conclusions?

2.1 INDUSTRY PROFILE

The International Dairy Situation

Highlights of NDDB Annual Report 2014-15

 18 per cent, The country‟s share in world milk production.

Global Dairy Industry Analysis

Major Players of Fresh Milk/Products in Market -

 GCMMF Ltd. (AMUL).

2.2 COMPANY PROFILE

GCMMF Member Unions

1. Kaira District Cooperative Milk Producers' Union Ltd., Anand

Sales Turnover Rs (million) US$ (in million)

2.3 BUSINESS MODEL

The Amul Model

 Establishment of a direct linkage between milk producers and consumers by eliminating

2.4 Competitors Profile

Product Name Amul Cow Milk

FAT(%) 3.5 min

Product Name Amul Gold

FAT(%) 6.0 min

Product Name Amul Taaza

Fat (%) 3.0 min

Riboflavin 120 mcg

Amul Slim and Trim Milk

Fat (%) 1.5 min

Product Name Amul Masti Dahi

Niacin 122 ncg

"AMUL MASTI" Dahi:

Superiority of Amul Masti Dahi:

Product Name Amul Pouch Butter Milk

 It is produced in very hygienic and clean atmosphere.

1. PROMOTIONAL CAMPAIGN BY AMUL

OUT-OF-HOME ADVERTISING: HOARDINGS AND BANNERS

Step 1) Defining the population:

Step 2) Specify the sampling frame:

Step 3) Specify the sampling unit:

Step 4) Specify the sampling method:

Structural Analysis of Industries

The application of above model on Fresh Milk/Products market is as follow:

Threat of New Entrants

Bargaining power of Suppliers

Bargaining power of Buyers

Intensity of rivalry among existing competitors

Analysis & Interpretation:

Q1. Number of retailers stocking Milk.

Sample Size (Retailers stocking milk)

Q2. Percent of retailers stocking Amul milk.

Do you stock/sell Amul milk?

Q3. What all brands do retailers stock/sell.

Presence in No. of outlets

Presence in No. of outlets

Q4. Daily counter sale of milk.

What is your daily counter sale of milk?

Q5. Daily counter share of Amul Milk.

What is counter share of Amul milk?