A Project on

“TO STUDY ON CONSUMER PERCEPTION TOWARDS AMUL IN

REFERENCE TO KALAMBOLI”

A Project submitted to
University of Mumbai for partial completion of the degree of
Bachelor of Management Studies
Under the faculty of commerce
By

ANKIT KR SINGH

Under the Guidance of

Dr. Payal Sanan

KLE Society’s Science

& Commerce College

Plot No. 29, Sector 1,

Kalamboli,

 Navi Mumbai -410218 (Maharashtra)

1
 DECLARATION BY LEARNER

I the undersigned MR. ANKIT KR SINGH here by, declare that the work embodied in
this project work titled “TO STUDY ON CONSUMER PERCEPTION

TOWARDS AMUL IN REFERENCE TO KALAMBOLI ”, forms my own

contribution to the research work carried out under the guidance of Dr. Payal Sanan is
a result of my own research work and has not been previously submitted to any
other university for any other Degree / Diploma to this or any other university.

Wherever reference has been made to previous work of others , it has been clearly
indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct .

Place:

Date:

Student’s Signature

ANKIT KR SINGH

2
 TABLE OF CONTENT

PAGE
SR.NO PARTICULARS
NO.
1 CHAPTER 1:INTRODUCTION 5-40
1.1 HISTORY

1.2 COMPANY PROFILE

1.3 OBJECTIVES AND BUSINESS PHILOSOPHY OF GCMMF

1.4 ORGANIZATIONAL STRUCTURE OF GCMMF
1.5 ADVERTISING
1.6 PERFORMANCE OF PRODUCT & SERVICES
1.7 PRODUCTION PROCESS
1.8 E-SUPPLY CHAIN MANAGEMENT OF AMUL
1.9 CHALLENGES FACED BY THE INDIAN DIARY SECTOR
1.10 AMUL COMPETITORS IN DAIRY AND ICE CREAM
1.11 SWOT ANALYSIS

2 CHAPTER 2: RESEARCH METHODOLOGY 41-47

2.1 MEANING OF RESEARCH
2.2 OBJECTIVES
2.3 HYPOTHESIS
2.4 RESEARCH DESIGN
2.5 SORCES OF DATA COLLECTION
2.6 SCOPE OF THE STUDY
2.7 LIMITATIONS OF THE STUDY

3 CHAPTER 3: LITERATURE REVIEW 48-50

4 CHAPTER 4: DATA ANALYSIS AND INTERPRETATION 51-63

5 CHAPTER 5: SUGGESTIONS AND CONCLUSION 64-65

5.1 SUGGESTION
5.2 CONCLUSION

3
6 CHAPTER 6: BIBLOGRAPHY 66-69
6.1 QUESTIONNAIRE
6.2 REFERENCE

4
 CHAPTER 1:INTRODUCTION

Amul means "priceless" in Sanskrit. The brand name "Amul" from the

Sanskrit "Amoolya" was suggested by a quality expert in Anand. Variants, all meaning
priceless are found in several Indian language.
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, Nutranmul, Amul Milk
and Amulya have made Amul a leading food brand in India. Turnover Rs. 25
billion in 2002. Today Amul is a symbol of many things of 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 savvy of a farmer's
organization, and of a proven model for dairy development.

The revaluation started as awareness may the farmers that grew and matured into a protest
movement and determination to liberate them.
Over four decades ago the life of a farmer in Kaira district was like that of his counterpart
anywhere also in India. Income from dairy was under pendable. Private traders and
middleman controlled the marketing and distribution of milk. As milk is perishable, farmers
were compelled to sell it for what every they were offered. In this situation, the one who
5
gained was the private traders. Gradually the realization downed on the farmers that the
exploitation by the traders could be checker do only if they marketed their product
themselves. To do this they need some sort of organization this realization is what led to the
establishment of Kaira District Cooperative Milk producer Union Limited (Popularly known
as Amul), which was formally registered on December 14, 1946.

The Kaira Union started Pasteurizing milk for the Bombay milk scheme in
June 1948. An assured market proved a great incentive to milk producers of the
district by the end of 1948, more than 400 farmers joined in more village
societies and the quantity of milk handled by
union increase from 250 to 5000 liters per day.

As the movement spread in the district, it was found that the Bombay Milk
Scheme could not absorb the extra milk collected by the Kaira union in
summer when the production on an average was 2.5 times more than summer.
Even by 1953, the farmer's embers have no assured market for the extra milk
produced summer. The remedy was to setup a plant to process milk into
products like butter and milk powder. A five Million
Rupees Plant to manufacture milk powder and butter was competed in 1955. In
1958 the factory was expanded to manufacture sweetened condensed milk.
Two year later a new wing was added for manufacture of 25000 tons of roller
derived baby food and 600 tons of cheese per year. This cheese was based on
the formula developed with the assistance of Central Food Technology
Research Institute (CFTRI), Mysore. It was the first time in world that baby
food and cheese where made by buffalo milk on a large commercial scale.
Another r milestone was the completion as a project to manufacture balanced
cattle food. The plant was donated by OXFAM under the freedom from hunger
campaign
of the FAO.

To meet the requirement for defense the Kaira Union was asked by the
Government of India in 1963 to setup additional drying capacity. A new dairy
capable of producing 40 tons of milk powder and 20 tons of butter a day was
speedily completed. It was declared open in 1965. Since then Amul has

6
covered any miles on the road of success. Its members success of the federation
can be estimated from the fact the income of the rural household of the Kaira
district is being derived from dairying.

1.1 HISTORY

THE AMUL HISTORY

In the 1940s, in the district of Kaira of the State of Gujarat, India, a unique experiment was
conducted that become one of the most celebrated success stories of India. At that time, in
Gujarat, milk was obtained from farmers by private milk contractors and by a private
company, Polson's Dairy in Anand, the headquarters of the district. The company had a
virtual stranglehold on the farmers, deciding the prices both of the procured as well as the
sold milk. The company arranged to collect, chill and supply milk to the Bombay Milk
Scheme, which supplied milk to the metropolis of Bombay, and to cities in Gujarat, Polson's
Dairy also extracted dairy products such as cheese and butter. Polson's Dairy exploited its
monopoly fully; the farmers were forced to accept very low prices for their products, and the
decisions of the company regarding the quality and even the quantity of the milk supplied by
the farmers were final.

In 1946, inspired by Sardar Vallabhbhai Patel, a local farmer, freedom and social worker,
named Tribhuvandas Patel, organised the farmers into co-operatives, which could procure
milk from the farmers, process the milk and sell it in Bombay to customers including the
Bombay Milk Scheme, Purely by chance, in 1949, a mechanical engineer named Verghese
Kurien, who had just completed his studies in engineering in the USA, came to India and was
posted by the Government of India to a job at the Dairy Research Institute at Anand.

Settling down in Anand was hardly a part of his career plans; however, a meeting with
Tribhuvandas Patel changed his life and changed India's dairy industry. What Mr. Patel
requested of Dr. Kurien was hardly to bring about such a revolution. All the wanted was help
in solving various problems with bringing into working order some of the equipment just
purchased by his co-operative, especially the chilling and pasteurising equipment. These

7
items of equipment malfunctioned, leading to the rejection of large quantities of milk by the
Bombay Milk Scheme.

Dr. Kurien's involvement with the Kaira District Co-operative Milk Producers' Union
Limited (KDCMPUL; the registered name of the co-operative) grew rapidly. Initially he
merely provided technical assistance in repairing, maintaining and ordering new equipment
but subsequently he became involved with the larger sociological issues involved in
organising the farmers into co-operatives and running these co-operatives effectively. He
observed the exploitation of farmers by the private milk contractors and Poison's Dairy, and
noted how the co-operatives could transform the lives of the members. The most important
feature of these co-operatives is that they run purely as farmer's co-operatives, with all the
major decisions being taken by the farmers themselves. The co-operatives are not 'run' by a
separate bureaucracy with vested interests of its own; the farmers are truly in charge of their
own decisions. Any farmer can become a member by committing to supply a certain quantity
of milk for a certain number of days in a year and shall continue to be a member only if he
keeps up this commitment.

Each day, the farmers (or actually, in most cases, their wives and daughters) bring their milk
to the village collection centers where quantity of milk is checked in full view of all and
quality (milk fat content) is checked using a simple device, again in full view of all. The
farmers are paid in evening for the milk they supplied in the morning, and in the morning for
the evening's milk. This prompt settlement in cash is a great attraction to the farmers who are
usually cash starved. Thanks to the above system, there are no disputes regarding quantity or
quality of the milk supplied by each farmer. It was soon realized that it was not enough to
merely act as the collection and selling for the farmers. A variety of support services were
also required to enable the farmers continue selling milk of adequate quality and to avoid
disasters such as the death of their cattle (of a family owning just one or two cattle and
depending on its/their milk for their income, death of cow could indeed be a disaster). The
farmers were progressively given new services such as veterinary care for their cattle, supply
of good quality cattle feed, education on better feeding of cattle and facilities for artificial
insemination of their cattle. All these were strictly on payment basis; none of services were
free. This experiment of organizing farmers into co-operatives was one of the most successful
interventions of India. A very loyal clientele was built up who experienced prosperity on a
scale they could not have dreamt of 10 years earlier. With good prices paid for their milk,

8
raising milch cattle could become a good supplementary source of revenue to many
households.

The co-operatives were expanded to cover more and more areas of Gujarat and in each area,
a network of local village level co-operatives and district level co-operatives were formed on
a pattern similar to that at Anand (the so called Anand Pattern). In 1955, KDCMPUL
changed its name to Anand Milk Union Limited, which lent itself to a catchy abbreviation,
Amul, which meant priceless in Sanskrit. The word was also easy to pronounce, easy to
remember and carried a wholly positive connotation. It became the flagship brand name for
the entire dairy products made by this union.

In 1954, Amul built a plant to convert surplus milk produced in the cold seasons into milk
powder and butter. In 1958, a plant to manufacture cheese and one to produce baby food
were added-for the first time in the world, these products were made from buffalo milk.
Subsequent years saw the addition of more plants to produce different products. Starting from
a daily procurement of 250litres in 1946, Amul had become a milk giant with a large
procurement base and a product mix that had evolved by challenging the conventional
technology.

In his visit to Anand in 1965, the then Prime Minister of India, Lal Bhadur Shastri, was
impressed by what he saw-a system that procured, processed and delivered high quality milk
to distant markets cost efficiently. Shastri could also see the difference that the income from
milk had made to the standard of living of farmers in the area.

What impressed him the most was that Amul had done all this without Government
assistance in market contrast to number of Government sponsored dairy programmes that
were doing poorly in terms of procuring and marketing good quality milk and boosting
farmer's incomes. Shastri asked Dr. Kurien to replicate Anand's success all over India.

A pattern similar to the Anand Pattern was to be built in otherstates of India. This was carried
out under a programme launched by the Government of India, entitled "Operation Flood".
The operation was a body formed by the Government of India with this specific objective co-
ordinated by the National Dairy Development Board (NDDB), a body formed by the
Government of India with this specific objective.

9
1.2 COMPANY PROFILE

GCMMF

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

product marketing organisation with annual turnover (2019-20) US$ 5.1 Billion . Its daily
milk procurement is approx 23 million lit per day from 18600 village milk cooperative
societies, 18 member unions covering 33 districts, and 3.6 million milk producer members.

It is the Apex organisation 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 organisation of 'Amul' and 'Sagar' branded products. It operates through
61 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 Category. In 2002 GCMMF bagged India's
Most Respected Company Award instituted by Business World. In 2003, it was awarded the

10
 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 organisation 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 hope. To live.

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 18,600

Total Milk handling capacity per day 35 Million Litres per day

Milk collection (Daily Average 2018-19) 23 Million Litres per day

Cattlefeed manufacturing Capacity 9200 MTs per day

Sales Turnover -(2019-20) Rs. 38,550 Crores (US $ 5.1 Billion)

1.3 OBJECTIVES AND BUSINESS PHILOSOPHY OF GCMMF

The main stakeholder of GCMMF is the farmer member for whose welfare GCMMF exists.
GCMMF states that its main objective is the carrying out of activities for the economic
development of agriculturists by efficiently organizing marketing of milk and dairy produce,
veterinary medicines, vaccines and other animal health products, agricultural produce in raw
and/or processed form and other allied produce.

11
GCMMF aims to market the dairy and agricultural products of co-operatives through:

Common branding

Centralized marketing

Centralized quality control

Centralized purchases, and

Efficient pooling of milk

GCMMF has declared that its business philosophy is as follows:

To serve the interests of milk producers and

To provide quality product that offer the best value to consumer for money spent

PLANTS :

• First plant is at ANAND, which engaged in the manufacturing of

milk, butter, ghee, milk powder, flavored milk and buttermilk.

12
 Second plant is at MOGAR , which engaged in manufacturing chocolate, nutramul,
Amul Ganthia and Amul lite.

Third plant is at Kanjari , which produces cattelfeed.

Fourth plant is at Khatraj, which engaged in producing cheese.

13
Today, twelve dairies are producing different products under the brand name Amul.
Today Amul dairy is no. 1 dairy in Asia and no. 2 in the

world, which is matter of proud for Gujarat and whole India.

EXPORT

Export turnover of federation has grown up by 17% in terms of volume, total

exports being more than 400 crore. Due to the subsidies allowed by European
unions, the international prices were very low as a result
export turnover in value terms has declined by 6%.

The union not only takes the responsibility of collecting and marketing the
surplus milk but also provides member with every provisions that is required to
enhance production. Thus Kaira union has full fledge machinery geared to
provide animal health care and breeding facilities. The union has 16 mobile
veterinary dispensaries are managed by fully qualified staff. All the visages are
visited by monthly on predetermined day, to provide animal health care. A 24
hours emergency service is available at a fee Rs. 35 for members and Rs. 100
for non members. All
the mobile vans are equipped with radio set.

The union runs a semen production center where it maintains high pedigreed Surti buffalo
bulls, frees in a bulls, Jursy bulls etc. balanced

feed concentrate is manufactured in unions cattle feed plant and sold to

the members through societies at cost.

After discussing the origin and the actives of the federation now let's

have a look on the current position of the federation at various ends.

14
MILK PROCUREMENT

Total milk procurement by the members has reached an average of 52.35 lakh
kilogram per day from 47.32 in 2001-02.

SALES

Total sales for the year 2002 – 2003 were 2745.75 crores including
consignment sales of Rs. 404.53 crores. During last year Amul Ice cream
achieved second sales, with volume growth by 29 percent. UHT milk
was a bonanza product whose growth was 56 percent in volume terms.

Despite of intense competition and a market recession, sales of Amul Butter

grew by 7 percent and milk powder remains steady. This growth is particularly
pleasing as it demonstrates its ability to resist MNC competition. New products
like pannier, mithai mate, softy mix
demonstrated their potential to become dominant brands.

Amul's long life UHT milk, has received a good response in UAE currently 50
tons per month of UHT is imported and sold. Amul is exploring the possibility
of launching Amul Ice cream in gulf, the market demand for pizzas is also
being surveyed. Amul butter is also in high demand in foreign market currently
around 250 tons of butter is imported per annum. Amul ghee being in foreign
market from
years, records close to 500 tons per annum.

With a view to increase the volume and facilitate trade Amul is planning

to set warchouse this year, either at JAFZA or in Dubai city.

Gulf and West Asia is the largest overseas market for Amul products with UAE
being the biggest buyer in the region.

15
RETAILING :

The concept of Amul parlors initiated in 2002 has come a long way and has
today, evolved into the most visible face of brand Amul. The network of more
than 4000 parlors in almost all major towns of the country bears testimony to
the fact that the model is hugely scalable and inherently sustainable. This
retailing initiative has not only enabled us to interface directly with consumer,
it has also helped us in our endeavor to reduce middle-men from the supply
chain.

The addition of more than 2000 parlors during the current year is largely
attributed to our channel partners i.e. our wholesale distributors who have
embraced the concept by starting their own parlors and also
motivated franchises to create parlors for meaningful employment.

The relentless focus on expansion of Amul parlors is now paying us rich

dividends. The retailing business alone fetched us a sales turnover of more than
Rs.200 Crores during the current year. Moreover, these parlors also provide us
with an effective platform to introduce all the innovative products that we
launch, every year.

We have also made giant strides forward in reaching out to millions of railway commuters by
setting up more than 50 Amul stalls across major railway stations of the country. The Indian
Railways have also recognized our efforts and with active support from IRCTC, we plan to
set up another 300 railway parlors during the coming year.

Ice-cream scooping parlors, the latest addition to the retailing revolution are yet another
blockbuster from the house of Amul. We expect to add
200 more parlors in the coming year.

Taking cue from the success of our parlors, commitment from our sales team and all our
channel partners dealing in milk, ice-cream and dairy products; we plan to take the total tally
of Amul parlors to 10000 by

16
DISTRIBUTION NETWORK:

Over a period of time we have built unique capabilities of distributing

Ambient, Chilled, Frozen and Fresh products simultaneously through our
versatile distribution highways. Today, 3500 Distributors for Value added milk
products, 1800 Distributors for Fresh Milk, ensure that Amul Products are
available to all segments of consumers in India through
more than 2 Million outlets.

To enhance further efficiency in distribution, two key initiatives have been

taken during the year. Firstly, we expanded competency based distribution by
inducting about 300 Distributors having expertise in servicing specific market
segments and secondly, we are poised to divide the value added product lines
amongst three sets of Distributors to cater to the same market. This is going to
give us more and more competitive advantage.
In Federation, our distributor is considered to be the real Marketing

Manager. To update them with modern marketing concept a workshop on

Marketing and Sales Management is being conducted in collaboration with a
premier business school. So far, 1100 Distributors have been
benefited from this workshop.

SLDP (Self Leadership Development Programme) for Distributor is another

major initiative taken during the year primarily with objective of training them
to implement TQM at their and at the retailer level. This will ultimately serve
to bring all Stake holders under common platform in Strategic Planning
Process of the Organization and to develop Self
Leadership amongst each individual Distributor.

Our Amul Yatra Programmes ensure that our every new distributor and other
business partners visit Anand to get an exposure to our cooperative structure,
our culture as well as our operational systems and processes. The initiative
continued this year as well and so far, about 7400 Distributors and other
business associates have visited Anand on
Amul Yatra.

17
Clean Milk Production :

For strengthening infrastructure for quality and clean milk production and to
install Bulk Milk Coolers at VDCS, our member unions have submitted project
proposals to Department of Animal Husbandry,
Dairying & Fisheries, (DP Section), Ministry of Agriculture, Government of India.
Under the project, Government of India has already sanctioned financial assistance of more
than Rs. 28 crore and our member unions have already received financial assistance of more
than
Rs. 11.36 crore.

Continuing the cleanliness drive at village level, till March 2009, our Member
Unions have identified & imparted training to 9479 corore groups formed of
milk producers and Management of the VDCS. To enhance the level of
Cleanliness this year, 7956 VDCS celebrated Red Tag Day on “Gandhi
Jayanti” - 2nd October and the Unions also
awarded best performing VDCS.

Fertility Improvement Program:

The Board of Directors of Federation, considering a long term vision for

reducing infertile animal from their milkshed, decided to implement Fertility
Improvement Programme (FIP) from year 2007-08. The FIP concept has an
integrated design to overcome animal nutritional,
gynecological, and animal health related problems.

To implement FIP, milk unions have deployed 44 FIP teams of

veterinary consultants and they are working in 1960 villages. In the first year
they have registered 72904 and in second year they have registered 70435
“Non Pregnant Not Calved Even Once” and “Non-pregnant Dry” milch cattles
and buffaloes under FIP, out of which 52272 milch animals has become
pregnant. FIP is being monitored through www.amul.org.in. FIP has helped

18
milk producers to convert their unproductive milch animals to productive one
and also by adopting scientific animal
husbandry practices they are earning more at less cost.

SUSTAINABLE ECOLOGICAL DEVELOPMENT:

With a target of planting three trees per member, our member unions
celebrated 61st year of Independence, 15th August 2008 in a unique way and
our members have planted 52.74 lakh sapling across 21 districts of Gujarat.
During last two years, our members have planted more than 71.65 lakh trees
and demonstrated their commitment towards preserving and contributing to
improvement of the environment. For this activity, we have received “Good
Governance award” from “Srishti” during year
2007 as well as 2008.

TOTAL QUALITY MANAGEMENT :

In 1994, federation had embarked on the TQM (Total Quality Management). In 1999 it
received Rajiv Gandhi Quality Award for the

year.

More than 25000 Kaizen's (small improvement in work areas) were made by the employees
of the federation indifferent areas. Workshops on SQC (Statistical Quality Control) have been
conducted across the

member dairies to achieved total quality in the production process.

1.4 ORGANIZATIONAL STRUCTURE OF GCMMF

GCMMF is a lean organization, a strategy that is believed to provide it with a cost advantage.
At its headquarters in Anand, four General Managers (GMs) and four Assistant General
Managers (AGMs) assist the Managing Director (MD). The four AGMs look after the
functions of marketing, systems, co-operative services and technical projects, respectively.
19
The four GMs are in charge of marketing (dairy products), Human Resources Development
and Marketing (Dhara and new business), finance and quality assurance, respectively.

The whole country is divided into five zones, each headed by a zonal manager responsible for
the sales of all products within his zone. These managers report to the MD but functionally
each also reports to the various AGMs/GMs at the headquarters. There are 50 sales offices
spread across the country (of which only two are in Gujarat); a sales manager heads each
office and is assisted by sales officers and field salespersons. The entire country has been
represented in this structure. GCMMF has one overseas office in Dubai.

1.5 Advertising

In 1966, Amul hired Sylvester da Cunha, the managing director of the advertising agency as
to design an ad campaign for Amul Butter. DaCunha designed a campaign as series of
hoardings with topical ads, relating to day-to-day issues.[19] It was popular and earned a Guinness World
Record for the longest running ad campaign in the world. In the 1980s, cartoon artist Kumar Morey and
script writer Bharat Dabholkar had been involved with sketching the Amul ads; the latter rejected the trend
of using celebrities in advertisement campaigns. Dabholkar credited chairman Verghese Kurien with
creating a free atmosphere that fostered the development of the ads.

Despite encountering political pressure on several occasions, DaCunha's agency has made it a policy of not
backing down. Some of the more controversial Amul ads include one commenting on the Naxalite uprising
in West Bengal, on the Indian Airlines employees strike, and one depicting the Amul girl wearing a
Gandhi cap.

In 2013, Amul tweeted a picture featuring the Amul butter girl, implying that 'freedom of choice' died in
2013, in opposition to the Supreme Court of India overruling the judgment of the Delhi High Court and
criminalising homosexuality again.

On 17 October 2016, Amul butter girl celebrated 50 years when she first appeared in the topical ad titled
"Thoroughbread". The ad showed a jockey holding a slice of bread during the horse race season in 1966.
The impish Amul girl had appeared for the first time even before that, with Eustace Fernandez showed her
offering bedtime prayers with a wink and a lick of lips, saying "Give us this day our daily bread: with
Amul butter".

Their Ad on Aagey Badhta Hai India had an excellent response from the audience. It basically spoke about
how their Milk is seen as a household product with catchy tune associated to it. It has over 39 lakh (~4
million) views on YouTube.

In popular culture

The establishment of Amul is known as the White Revolution.

20
The White Revolution inspired the notable Indian film-maker Shyam Benegal to base his
film Manthan (1976) on it. The film was financed by over five lakh (half a million) rural
farmers in Gujarat who contributed ₹2 each to its budget. Upon its release, these farmers
went in truckloads to watch 'their' film, making it a commercial success. Manthan won
the National Film Award for Best Feature Film in Hindi during the 24th National Film
Awards in 1977.

In August 2019, Amul became the first Indian dairy company to enter Rabobank's
Global Top 20 Dairy Companies list

1.6 PERFORMANCE OF PRODUCT & SERVICES

AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit

"Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning
"priceless", are found in several Indian languages. Amul products have been in use in
millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray,
Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream,
Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India.

(Turnover: Rs. 25 billion in 2002). Today Amul is a symbol of many things.

 Of 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 savvy of a farmers' organization, and

 Of a proven model for dairy development

21
  The Product Range

Bread spreads Amul Butter, Amul Lite, Delicious Table Margarine

Amul Pasteurized Processed Cheddar Cheese, Amul Processed Cheese
Spread, Amul Pizza (Mozzarella) Cheese, Amul Emmental Cheese,
Cheese Range
Amul Gouda Cheese, Amul Malai Paneer (cottage cheese), Utterly
Delicious Pizza
Amul Gold Full Cream Milk 6% fat, Amul Shakti Standardized Milk
Fresh Milk 4.5% Fat, Amul Taaza Toned Milk 3% fat, Amul Slim & Trim, Amul
Cow Milk
Amul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk, Amul Taaza
UHT Milk Range
1.5% fat Milk, Amul Lite Slim-n-Trim Milk, Amul Fresh Cream
Amul Full Cream Milk Powder, Amulya Dairy Whitener, Sagar
Milk Powders Skimmed Milk Powder, Amul PRO Infant Milk Food, Sagar Tea and
Coffee Whitener
Amul Kool Flavoured Milk, Amul Kool Cafe, Amul Kool Koko,Amul
Milk Drink
Kool Milk Shake, Amul Kool Chocolate Milk,Nutramul Energy Drink
Health Drink Stamina Instant Energy Drink
Brown Beverage Nutramul Malted Milk Food
Amul Masti Dahi (fresh curd), Amul Masti Spiced Butter Milk,Amul
Curd Products
Lassee, Amul Flavor Yoghurt
Pure Ghee Amul Pure Ghee, Sagar Pure Ghee
Sweetened Condensed
Amul Mithaimate
Milk
Mithaee Range (Ethnic Amul Shrikhand, Amul Mithaee Gulabjamuns, Amul Basundi,Avsar
Sweets) Ladoos
Ice-cream Sundae Range, probiotic,,sugarfree and probiotic
Chocolate & Amul Milk Chocolate, Amul Fruit & Nut Chocolate, Amul Chocozoo,
Confectionery Amul Bindass, Amul Fundoo

1.7 PRODUCTION PROCESS:

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 Collection of Raw Milk:
Raw milk is collected from different co-operatives of Gujarat. About 12,22,000 liters
of raw milk is collected per day. Before this milk is sent to the laboratory for testing
the FAT & SNF proportion, the milk is separated from the raw milk. The milk is
taken from the chilling centers to Collection of Raw Milk Raw milk is collected from
different co-operatives of Gujarat. About 12,22,000 liters of raw milk is collected per
day. Before this milk is sent to the laboratory for testing the FAT & SNF proportion.

 Testing of raw milk:

After collecting the samples of milk they are taken to the laboratory where two types
of test are conducted:
1). ELECTRONIC MILK TEST Before pasteurizing the milk the samples are taken
to the laboratory . In the laboratory with the help of machine called electronic milk
tester, the proportion of SNF & FAT is checked with phosphate solution. When the
color of the milk become yellow, it is sent for pasteurization.

2). METHYLINE BLUE REDUCTION TEST This test is conducted for checking for
how long the milk will remain fresh. To check this, 10 ml of milk is taken and 1 ml of
METHYL solution is added to it. It is then kept under water at 57 degree Celsius.
After one hour if the solution losses its color then it is called raw milk. If the solution
remains the same even after 5 hours than it is considered fresh milk, which remains
constant for a long period of time.

The dairy fixes the proportion of SNF & FAT. After laboratory gives green signal and
conforming the raw milk at reception dock is brought into the house connected with
pump is sent to the milk processing plant. This is then chilled below 4 degree Celsius
and then stored in the milk silos. After that milk is processed which has two steps:
Pasteurizing and Standardizing

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 Pasteurizing and standardizing:

To pasteurize the milk means to kill the germs in the milk by a particular method
which was invented by a scientist called JAMES PASTEUR and so the name
pasteurization. In the pasteurization method the milk is first heated at 72 degree c to
76 degree c for 15 seconds and then it is immediately cooled below 4 degree c by this
method they destroy the pathogenic bacteria present in the raw milk. But if the right
degree of temperature is not provided there are chances that milk might contain
germs. After this process some milk goes to separator machine and remaining is
proportionately sent for standardization.

Standardization process bifurcates the milk in 3 categories varying according to the

SNF & FAT contents. The equipment named OSTA. Auto Standardization Adjusts
the FAT directly. The computer is just ordered whether gold or standard milk is to be
rationed and the same will be received with appropriate contents.

 SEPARATION PROCESS:
Separation Process Separator machine separates two kinds of products, skimmed milk
and cream, through channels. There are 100 disks fixed in separator machine, which
revolve at 5000 rpm(revolution per minute). It is taken to the tanks, which has the
capacity of 20000 liters. Whenever the milk is needed from the tank , it is tested in the
laboratory and the deficit proportion FAT is added by mixing cream. This process
continues for 24 hours.

 QUALITY CHECK:

Pasteurized milk is sent to the quality Assurance laboratory of the dairy plant. Within
14 seconds the FAT & SNF proportion is received regarding 30 lack liters of milk.
The total investment put into the lab by the dairy plant is Rs. 6 crores. The laboratory
only checks and analyses the powder, milk and ghee. There is a separate ice cream
analyzing laboratory.5). Packaging Process After the milk is sent for the packaging to
the milk packing station in the dairy plant. In the milk packaging stations there are
huge pipelines and behind them there is polyfil machine from which the material to

24
 pack milk comes out. From each of these 12 machines 100 pouches are packed in one
single minute.

 STORAGE:
Then the milk is sent to the cold storage of the dairy where the milk is stored until
it is dispatched. Here the milk is stored is temperature ranging from 5 degree c to 10
degree c, it is maintained with the help of exhaust fans having silicon chips. About
40000 liters of milk is dispatched from the cold storage of the dairy plant everyday.
The damaged pouches are kept aside and the milk is once again put to the storage
tank.

1.8 E- SUPPLY CHAIN MANAGEMENT OF AMUL

 AMUL uses E- SUPPLY CHAIN MANAGEMENT

 Amul has installed over 3000 automatic milk collection system units (AMCUS) at
village societies to capture member information, milk fat content and amount payable
to each member.

 Each member is given plastic card for identification

 Computer calculate amount due to the farmer on the basis of the fat content

 The value of the milk is printed out on the slip and handed over to the farmer ,who
collects the payment from the adjacent window

 Thus with the help of it farmer gets the payment within the minutes
On the logistic more than 5000 trucks move milk from the villages to 200 dairy
processing plants twice a day according to a carefully planned scheduled

25
 Every day Amul collects 7 million liters of milk from 2.6 million farmers (many
illiterate), converts the milk into branded, packaged products, and delivers goods to
over 500,000 retail outlets across the country

 ERP software named as enterprise wide integrated application system covers a

operation like planning advertisement and promotion and distribution network
planning.

 Each Amul office are connected via internet and all of them send daily reports on
sales and inventory to the main system at Anand,

 At the supply end a computerized database has been setup of all suppliers & their
cattle

 Computer equipment measures & records qualities & quantities collected.

 At the distribution end stockiest have been provided with basic computer skills.
Amulexperts assist them in building promotional web pages.

 Amul has linked distributors to the network & also incorporated web pages of top
retailers on their website

 Distributors can place their order on website amulb2b.com

 Automated supply & delivery chain

 Practices just in time supply chain management with six sigma accuracy

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1.9 CHALLENGES FACED BY THE INDIAN DIARY SECTOR

India has a unique pattern of production, processing and marketing/consumption of milk,

incomparable to any large milk producing country. India is the world’s largest milk producer
and consumer of dairy products, consuming almost 100% of its own milk production. The
Indian dairy sector is different from other dairy producing countries as emphasis is placed on
both cattle and buffalo milk. In order to achieve greater profitability, quality standards need
to be improved. Following are some of the practical dairy farming challenges in India.

Shortage of feed/fodder
There is an excessive number of unproductive animals which compete with productive dairy
animals in the utilisation of available feeds and fodder.  The grazing area is being reduced
markedly every year due to industrial development resulting in shortage of supply of feeds
and fodder to the total requirement. Ever increasing gap between demand and supply in feeds

27
and fodder limits performance of dairy animals. Moreover, provision of poor quality of
forage to dairy cattle restricts animal production system. The low capability of purchasing
feeds and fodder by the small and marginal farmers and agricultural labourers engaged in
dairy development result in inadequate feeding. Non-supplementation of mineral mixture
results in mineral deficiency diseases. High-cost Feeding reduces the profits of the dairy
industry.

Breeding system
Late maturity, in most of the Indian cattle breeds, is a common problem. There is no effective
detection of heat symptoms during oestrus cycle by the cattle owners. The calving interval is
on the increase resulting in a reduction in efficiency of animal performance. Diseases causing
abortion leads to economic loss to the industry. Mineral, hormone and vitamin deficiencies
lead to fertility problems.

Education and Training

A vigorous education and training programmes on good dairy practices could result in the
production of safe dairy products, but to succeed they have to be participative in nature. In
this regard, education and training of all the employees is essential so that they understand
what they are doing and develop a sense of ownership. However developing and
implementing such programs in the dairy sector requires a strong commitment from the
management, which at times, is a stumbling block.

Health
Veterinary health care centres are located in far off places. The ratio between cattle
population and veterinary institution is wider, resulting in inadequate health services to
animals. No regular and periodical vaccination schedule is followed, regular deworming
programme is not done as per schedule, resulting in heavy mortality in calves, especially in
buffalo. No adequate immunity is established against various cattle diseases.

Hygiene Conditions
Many cattle owners do not provide proper shelter to their cattles leaving them exposed to
extreme climatic conditions. Unsanitary conditions of cattle shed and milking yards, leads to

28
mastitis conditions. Unhygienic milk production leads to a reduction in storing quality and
spoilage of milk and other products.

Marketing and Pricing

Dairy farmers are not getting remunerative price for milk supply. Due to the adoption of
extensive crossbreeding programme with Holstein Friesian breed, the fat content of
crossbreed cow's milk is on the declining condition and low price is offered as the milk price
is estimated on the basis of fat and solid nonfat milk content. There is also a poor perception
of the farmers, due to lack of marketing facilities and extension services, towards commercial
dairy enterprise as an alternative to other occupation.    

1.10 AMUL COMPETITORS IN DAIRY AND ICE CREAM

Amul is an Indian Dairy industry that is based out in Anand, Gujarat. Established in the year
1948, this popular brand is managed by the Gujarat Co-operative Milk Marketing Federation
(GCMMF) which is a famous cooperative body.

It owns about 3.6 million producers of milk in Gujarat. It is the largest producer of ice cream
and other dairy products. The development of Amul is a three-tier model which has a dairy
cooperative society which is at the village level, at the district level is the milk union and at
the state level is the federation. It has developed a direct connection between the producers of
milk and consumers and eliminates distributors.

Amul ice creams are delicious products that are prepared from fresh milk and are sold at
multiple level packs. Amul dairy products are plenty like cheese, butter, etc.     

Through this article, let us discuss various Amul competitors for ice cream and dairy
products.

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1) Kwality Walls

A famous brand of ice cream, Kwality Walls, is a frozen dessert that is owned by Hindustan
Unilever, an Indian consumer goods company. It is a famous company for producing and
distributing frozen dessert in places like India, Nepal, Bhutan, Brunei, Malaysia, and Sri
Lanka.

This brand is created by combining two formerly separate independent companies that were
taken over by Unilever, Kwality of India and Wall’s of Great Britain. The brand with the red
and white heart symbol on their pack spreads the taste and happiness across the globe
for people of all ages.

The main strength of this brand is that Kwality Walls produces ice cream that caters to each
and every need and occasion of customers. The Cornetto and Feast are much liked by young
adults while Paddle Pop is liked by kids. Another strength is the deep pockets of HUL to back
up the brand.

HUL positions each of the variations of Kwality Walls to make sure that they look good as
per various segments. The pricing provided by this brand is feasible and affordable for all.
Due to their strong backing of HUL and their wide range of products, Kwality Walls is
considered as a top Amul competitor.

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2) Baskin Robbins

A strong Amul competitor, Baskin Robbins was founded in the year 1945. It is the largest
specialty store chain and the company is headquartered in Massachusetts, United States. The
company has popular for their 31 flavors which are significant in their logo.

It also means that a flavor for each day of a month. But, at present, there are about 1000
flavors across the globe.  It currently has their operations in about 50 countries and has about
7,500 stores. The company focuses on customer satisfaction and introduces new products that
they will like. This brand is a global brand and is available in many places around the world.
The company has set up many franchises which are also a reason for their expansion. The
main strength of this brand is the availability of various flavors.

The ice creams of Baskin Robbins are prepared with great care with good ingredients and
flavor that is liked by all. These ice creams stores can be seen easily available and are almost
found in many places.  Due to their great customer service and keeping up with the trend,
Baskin Robbins is considered as a top Amul competitor.

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3) Havmor

Also a top Amul competitor, Havmor was established in the year 1944 when a young
engineer of British Airways, Satish Chona planned to establish a popup ice cream shop in
Pakistan. He started this as a part-time project to support the financial conditions of his
family. Over the years it became a popular local ice cream brand.

Later in the year 1947, after independence, the business was shifted to Ahmedabad, India.
Havmor has a wide range of product basket that consists of more than 160 types of ice cream
flavors which are ready to eat. The ice creams are prepared from pure milk and good quality
ingredients. The main strength of this company is their strong brand namewith a great
customer base.

In Gujarat, this ice cream holds the second position with great loyal customers. This brand
has a variety of products which started as an ice cream but now it is progressively operating a
food business as well. Due to their great experience and product portfolio, Havmor is
considered as one of the top Amul competitors.

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4) Vadilal

A popular ice cream, Vadilal was established in the year 1907 and headquartered in
Ahmedabad. It is involved in manufacturing and processing of ice cream and flavored milk
and exporting them. The company’s main business segments are ice cream, processed food,
and others. In the ice cream segment, it produces ice cream and frozen dessert.

During the initial years of its establishment, it started with a soda foundation which was
headquartered in Ahmedabad. Over the years, it grew into a popular company and has
emerged into the biggest company which produces about 50 flavors in about 250 packs in
form of ice creams and frozen food. Their ice creams are available in cones, cups, candies,
family pack, an economy pack. The main strength of this brand is a clear understanding and
projecting about selling frozen dessert.

Vadial accepts the fact that its ice cream contains vegetable oil. This company has seen in at
bad times and has been a great fighter against its competitors. Due to their various
promotional schemes and diversification, Vadilal is considered as one of the top Amul
competitors.

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5) Dinshaws

A top Amul competitor, Dinshaws is a popular brand of ice cream that spans across India. It
was established by two brothers Dinshaw and ErachshawRana. Their focus on the quality of
ice creams thereby innovating new flavors which were truly wonderful.

The success in the production of ice cream gave rise to expand their business to several dairy
products. The Dinshaws ice creams are available across India. The ice creams are prepared
with at most care with the best ingredient. The process includes mixing some delicious
flavors and make sure the best quality of ice cream is delivered.

From the fine range of ice creams to great flavors like Vanilla and Chocolate, this brand has
great ice creams for all. Due to their great quality and taste, Dinshaws is considered as a top
Amul competitor.

34
6) Mother Dairy

Mother Dairy is a famous dairy company that was founded in the year 1974. It is an Indian
company that produces and sells milk, milk products, and other edible products. Mother
Dairy is a subsidiary of the National Dairy Development Board (NDDB). This brand has seen
to establish itself as a noteworthy occurrence in the market of Indian dairy.

The brand is quite popular in Delhi and NCR region. The main strength of this company is its
existence in many sectors. It deals with milk and milk products which include ice cream,
ghee, paneer and other dairy products. Over the years since its production, this brand has
established a high trust among customers.

The customers are satisfied with their products and the company mainly focuses on the
sentiments and demands of Indian customers. Due to their various products in this brand,
Mother Dairy is considered one of the top Amul competitors.

35
7) Arun Ice Cream

A well-known brand of ice cream, Arun ice cream is most commonly known as Hatsun
brand. As compared to other ice parlors, Arun ice cream opened their store in suburban and
even in rural areas. This way, Arun ice cream became popular and its taste was liked by many
customers. The ice creams of this brand cater to various people’s taste.

It has exclusive products for kids like the ice cream bars. The company keeps on introducing
new flavors most of the season to ensure that the customer will have something new when
they go to an Arun ice cream parlor. It provides a great service to customers through their
franchise. It has almost 70 mouth-watering ice cream flavors.

Due to their high-quality products with good attractive packaging, Arun ice cream is
considered as one of the top Amul competitors.

36
8) Other Regional Players

Ice Cream market has many regional players. This is because of the low barriers to entry in
this segment. Furthermore, the segment has production and raw material as the bottlenecks.
So individual dairies also take part in ice cream manufacturing. As a result, a huge bulk of the
market flows to regional players.

Top Amul Competitors In Dairy Products like Milk, Cheese, Butter etc

9) Britannia

A famous Indian food products company, Britannia is headquartered in Karnataka, India. The

company was founded in the year 2002. The Britannia dairy is involved in producing,
marketing, and selling various dairy products.

Their dairy products include cheese, butter, dairy whiteners, milk, and ghee. Britannia is
considered as the only company in India that offers bakery products at feasible rates and
because of this, it has a large customer base. This brand is visible in many segments like the

37
biscuit, cakes, rusk, and dairy products. It has a huge product portfolio with great market
recognition and distribution.

It is considered as a market leader in bakery products. It offers healthy food products for the
biscuit, rusk and a wide range of dairy products like cheese, curd etc. Due to their brand value
and their products, Britannia is considered one of the top Amul competitors.

10) Nestle

Nestle is a popular food processing company that is headquartered in Switzerland. It is a great

food processing company in the world. The several products of Nestle are bottled water, baby
food, medical food, breakfast cereals, coffee, tea, ice cream, dairy products, confectionery,
frozen food, snacks, and pet foods. The company has about 447 factories which are operated
in about 196 countries having approximately 339,000 employees.

Nestle is focused on improving the quality of food by providing various factors like wellness,
health, and nutrition in their food products. They provide the healthy and great taste that
caters to all the stages of a consumer’s life and at all time of the day. The company has been

38
continually in various research for giving innovative food and beverages. Due to their well-
known products and their quality, Nestle is considered one of the top Amul competitors.

11) Mother Dairy

Mother Dairy is a famous dairy company that was founded in the year 1974. It is an Indian
company that produces and sells milk, milk products, and other edible products. Mother
Dairy is a subsidiary of the National Dairy Development Board (NDDB).

The company sells milk and various milk products like ice creams, paneer, and ghee. The
company sources major part of its milk requirement from dairy cooperatives. The company
processes milk which is controlled by automation. It makes use of
microprocessor technology to integrate all functions of milk processing to make sure that the
products are of high-quality.

It produces roughly 3.2 million litres of milk daily. Due to their vast experience in this field
and their quality of dairy products, Mother Dairy is considered one of the top Amul
competitors.

39
12) Regional Dairy Players

Like Ice cream, there are many regional players who provide Buffalo milk or Cows milk with
home deliveries. This unorganized segment takes away the market from the organized milk
segment which belongs to Amul, Mother dairy and others.

1.11 SWOT ANALYSIS

Strength:-

1. The level of brand awareness is high especially in rural population, when

compared with competitors.
2. Amul has positioned itself as a Swadeshi Brand.

3. The name Amul is easy to remember as comapred to others. 4. Amul for a

common man means high quality milk products.
5. Co-operative model of organizations keep it a part from others.

6. Common man has developed emotional feelings for the brands.

40
Weakness:-

1. Distribution channel is weak as compared to competitors.

2. Amul is unable to penetrate into premium market segment.

3. Lack of consumer promotion plans.

4. The brand is more known for butter than its other products.

5. Proper supply of products is not ensured.

6. Products packing and appearance is not changed frequently to meet the changing
needs and preferences of the customer.
7. Older age groups show more loyalty to the brad as compared to younger age
groups.

OPPORTUNITY:-

1. Amul should try to make place in the heart of young consumers.

2. Proper supply of the products must be ensured by using sales forecasting.

3. Amul must try to cash its strong brand image in rural population.

4. More retailers can be added to supply chain, through retailer oriented schemes.
THREATS:-

1. With the entry of international players in market, the game will be harder to win.
2. Retailers are not satisfied by replacement and profit margins.

3. Non availability of products may compel the consumer to shift to other products.

41
 CHAPTER 2:-RESEARCH METHODOLOGY

2.1 MEANING OF RESEARCH

The most important function of management in a organization is to take correct decision,

minimizing the risk and uncertainty through rational and scientific decision making. Better
and fruitful decision result from the right information about consumer, retailers, competitors
and others. Thus, in this way management can be regards as the game of handling
information. If the manager fails to handle the information effectively, be is unable to make
the required decision correctly and result will be mismanagement.

Research is common parlance refers to a search for knowledge. Once can also define research
as a scientific and systematic search for pertinent information on a specific topic. In fact,
research is an art of scientific investigation. A careful investigation or inquiry specially
through search for new facts in any branch of knowledge.

(i) To gain familiarity with a phenomenon or to achieve new insights into it

(ii) To portray accurately the characteristics of a particular individual, situation or a

group

(iii) To determine the frequency with which something occurs or with which it is
associated with something else.

(iv) To test a hypothesis of a causal relationship between variables.

2.2 Marketing Research is usually conducted to achieve the following objective

1. To know about the person why buy the firms products

42
 It tries to reveal the number of person and the frequency of their buying and the
sources of their buying, their social status and regional location of the customers.

2. To find out the impact of promotional effort

This facilitates appraising and improving the methods of sales promotion. It also leads
to measure the effectiveness of advertising. Pricing policy and channel of distribution.

3. To know about customer's response

Marketing research helps in sales forecasting and marketing planning. The researcher
makes forecast on the basis of response from customer and
distribution media.

4. To forecast sales

Marketing research help in sales forecasting and marketing planning. The researcher
makes forecast on the basic of from customer and distribution media.

5. To study the goodwill of the firm in comparison to its competitor firms.

This helps in reveling the important information regarding the faith of customer and
retailer faith in the organization, that of competitor organization, new product and
substitutes entering the market and their impact the firm's product.

2.3 HYPOTHESIS

NULL HYPOTHESIS

 Customers are satisfied by the AMUL

ALTERNATIVE HYPOTHESIS

 Customers are not satisfied of the AMUL

43
  The research design is the specification of the method and procedure for acquiring
(getting) the information needed to solve the problem

2.4 RESEARCH DESIGN

 In my research, descriptive research design was used which enable researchers to

describe picture of a phenomenon under research. The strategy of AMUL were easily
understood due to research done by the researchers. Design involves solving
problems, creating something new, or transforming less desirable situations to
preferred situations. To do this, designers must know how things work and why.
Understanding how things work and why requires us to analyse and explain. This is
the purpose of theory. The article outlines a framework for theory construction in
design.

 This framework will clarify the meaning of theory and theorizing. It will explain the
nature and uses of theory as a general concept. It will propose necessary and sufficient
conditions for theory construction in design. Finally, it will outline potential areas for
future inquiry in design theory.

 This provides the first benefit of research training for the professional designer.
Design practice is inevitably located in a specific, clinical situation. A broad
understanding of general principles based on research gives the practicing designer a
background stock of knowledge on which to draw.

 This stock of knowledge includes principles, facts, and theories. No single individual
can master this comprehensive background stock of knowledge. Rather, this
constitutes the knowledge of the field. This knowledge is embodied in the minds and
working practices of millions of people. These people, their minds, and their
practices, are distributed in the social and organizational memory of tens of thousands
of organizations.

44
2.5 DATA COLLECTION

Two ways are introduced for collecting data:-

 Primary Data
 Secondary Data

Primary Data:-

Primary data is one which is collected by the investigator himself for the purpose of a specific
inquiry or study. These data are collected first time as original data.

Method used for collecting data was Survey Method. I had done survey through
“QUESTIONNAIRES”.

Primary objectives:-

1. To identify performance of AMUL operations.

2. To understand the taste & preferences of the customer.
3. To understand how the marketing mix influence consumer satisfaction level.
4. To analyse how active AMUL services attract customers.

Secondary Data:-

when an investigator uses the data which has already been collected by other researcher ,
such data is called secondary data.

Sources of secondary data are as follows:-

1. Text books like marketing management, research methodology.

45
 2. Internet is also considered as secondary source for data collection.
3. Magazines are also referred as a secondary data source.

Secondary Objective:-

1. To understand the quality of service maintained in AMUL

2. To find out the reason for less demand
3. To find which means of communication plays a vital role to persuade customer.

2.6 SCOPE OF THE STUDY

 The area of study is limited to the segment selected within KALAMBOLI. This study
is mainly confined to the customer satisfaction only.
 Finding of the study was based on the assumptions that respondents have given correct
information.
 Information provided by respondents may be biased.

 The sample size is comparatively very small compared to the population and there are
chances that it may not represent the whole population.

 The time and cost factors has affected the size of the sample.

 The study is academic in nature.

 The final conclusion can be also affected by some of the extraneous variables.

SAMPLING

A fine subset of the population, selected from it with the objectives of investigating its
properties is called a sample and the number of unit in thesample is known as sample size.
Sampling is a tool which enables us to drawconclusion about the characteristics of the
population after studying onlythose subjects or items that are included in the sample. In
sampling methodonly few units of the population is considered. The choice of an
appropriatesampling design is of keeping in view the objectives and scope of theenquiry and
the type of the universe to be sampled

46
Sampling Techniques:

 Random sampling
 Non random sampling

Random Sampling:

A random sampling is done in such a way that each member of the universe has a change of
being selected, which enables statistics procedures to be used under the result to estimate
sampling.

Non Random Sampling:

In the non-random sampling the chance of any particular unit in the population being selected
is unknown. The judgments sampling method under non-random sampling method was
adopted for the study with a sample size of 100 respondents, which are chosen in a judgment
manner from the customer. In this method a designed number of sample unit is selected
deliberately or purposely depending upon the objectives of the enquirer so that only the
important items representing the true characteristics of the population are included in the
sample.

Area Of Sampling-

In this study primary data plays a vital role. The process of choosing the correct number of
respondents is nothing but sampling procedure.

Sampling area: Kalamboli

Sampling Size-

100 is the number of items to be selected from the universe to constitute the sample. The
method used here is random sampling and on- the spot sampling, where the samples are
selected without considering any particular quality.

47
Sample Method-

Random Sampling

2.7 LIMITATIONS OF THE STUDY

Since the road to improvement is never ending, so this study also suffers from
certain limitations. Some of them are as follows:

 Scope of project is limited in the sense that only Amul has been taken for consumer
research.
 The extent of the survey was Kalamboli only. So the suggestions or arguments given
in the report may not hold true for other locations in India.
 Questionnaire method involves some uncertainty of response. Co-operation on the
part of informants, in some cases, was difficult to presume.
 Because of time constraints and reserve constraints, a mix of convenient sampling
and judgment (Probability & Random) sampling was used.
 Also because of above mentioned constraints, the sample size chosen for the
survey was 100 people.
 It is possible that the information supplied by the informants may be incorrect.

48
 CHAPTER 3 :- LITERATURE REVIEW

Introduction.

This chapter shows what other scholars have written about dairy industry. Attempts have
been made to review briefly the specific and relevant literature, which has direct or indirect
bearing on the objectives of the present study. Accordingly, relevant literature has been
reviewed and presented as follows.

Amul Co operative in India in relation to Organizational Design and Operational

Efficiency.

Dr Ruchira Prasad and Dr Rupali Satsangi (2013).

Looking back at the path traversed by AMUL, the features make it a pattern and model for
emulation elsewhere are: Producing an appropriate blend of the policy makers, farmers board
of management and the professionals, bringing the best of the technology to rural producers,
providing a support system to the milk producers without their agro- economic system and
plugging back the profits, by prudent use of men, material and machines.

Strengthening the Operational Efficiency of Dairy Supply Chain in Tamilnadu.

M Subhuraj, T Ramesh Babu, B Suresh Subramonian (2015 Based on the research work
carried out on dairy supply chain in Tamil Nadu, India, there are five areas of focus. They
are, Creation of Special dairy zone, Implementing dynamic milk procurement method,
strengthening cooperative societies, creations of feed bank increasing fodder productivity,
Integrated animal health plan and information technology.

Economics of Milk Processing in Dairy Plant in Haryana. AK Chauhan, KK Kalra, Raj

Vir Singh and BB Raina (2006). It has been observed that all the products, except the
double-toned milk are being produced above the recommended breakeven level. A
comparison of unit manufacturing cost with unit price received by the plant for different
products has revealed that ice- cream manufacturing has been the most profitable proposition
among different dairy products, and standardized milk has provided the maximum profit
margin among the milk pouches manufactured during the study period, 2000-01.

49
S Ayyappa Naik Nenavath (2013). In order to satisfy the needs of all customers to get the
products timely, additional arrangements have to be made by the Sangam dairy such as
keeping the outlets open for additional time. Unlike the complaining cells are set up at the
factory office and gates, the grievances cells have to install at important places in the towns
so as to facilitate the redresssal of the grievances of milk customers at a quicker phase.

Financial Health of Dairy Industry in Andhra Pradesh.T Hima Bindu, Dr S E V

Subrahmnyam (2012). The study deals with the concept of profitability, measurement of
profitability in relation to total investment, sales and shareholders’ funds in Dairy Industry in
Andhra Pradesh during 2001 to 2011. It also deals with the evaluation of earning power,
analysis of operating efficiency, analysis of financial efficiency and measurement of financial
health of Dairy Industry in Andhra Pradesh.

Measurement of Scale Efficiency in Dairy Farms.

Barram Aldeseit (2013). Data Envelopment Analysis (DEA) technique estimation of scale
efficiency scores showed that on average the majority of Jordanian dairy farmers during the study
reference period were not operating at maximum scale efficiency and have a marked potential to
improve.

Employment Generations through Dairy Farming in District Moradabad.

Nizamuddin Khan, Ashish Kumar Parashari (2014). People from different socio-
economic groups are engaged in different operations of dairy farming in the study area. The
size of landholding is an important economic attribute which determine the level and
proportion of dairy farmers located at grass root level. There are various socio-economic
attributes such as size of landholding, caste, community, education; age, etc. are constantly
affecting the growth and development of dairy farming in the study area and determining the
level and pattern of employment generation through dairy farming.

Opportunities and challenges in Indian Dairy Industry Supply chain. Rajeev Kumar,
Dr Raj Kiran Prabhakar (2013). Despite being the one of the largest milk producing
countries in the world, India accounts for a negligible share in the worldwide dairy trade. The
ever-increasing rise in domestic demand for dairy products and a large demand-supply gap
could lead India to be a net importer of dairy products in the near future.

Estimation of Cost Efficiency of Dairy Farms in Kenya’s Eastern Central Highlands.Dr

Mugambi David Kimenchu, Dr Wambugu, Stephen Kairu, Dr Maina Murangi, Dr

50
Gitunu Antony Macharia (2014). The main challenges to the dairy enterprise were the cost
of roughages, the small sizes of land owned and the price of labour. Labour productivity was
low. Farm inefficiency was not the main cause of high milk production cost. It was
recommended that policy makers generate necessary laws and regulations to ensure that the
continued land sub-division is reversed and that the cost of dairy farming inputs is reduced. A
law on the extent to which agricultural land should be sub-divided requires being enacted.
There is a need for reduction on the taxes levied on animal feed-making ingredients.

Comparative Study of Various Treatments for Dairy Industry Waste water. Mrs
Bharati S Shete, Dr NP Shinkar (2013). Anaerobic fixed bed reactors (AFBRs) has been
successfully and widely applied for the treatment of dairy industry wastewater due to its
capacity for microorganism retention on the support and, therefore, the hydraulic retention
time can be considerably reduced.

Structural Changes in Dairy Farming for better margins and local Economy
Development in Indian Context. Anil Chand, Vivek Swami, Dr Jaimini Tipnis (2015).
During next few years till 2030 the demand of dairy products is expected to grow at a rate of
9%-12% and industry at a rate of 4-5%. Clearly Indian industry will struggle to maintain
100% self- sufficiency due to huge local demand, between 160 to 170 Million Tonnes of milk
at would be required by 2030.

Milk Cost, Return and Profitability in Dairy Farming. Agatha Popescu (2014). Material
cost and labor cost represent the most important cost item in total milk production cost. They
are closely correlated with income from marketed milk. For the same level of labor cost in
dairy farms, material cost has a negative influence on income. In the dairy farms where
material cost is similar and constant, labor cost is deeply correlated with income coming from
marketed milk.

Method of Formulating least cost diets for small holder Dairy Production in Sub
Saharan Africa. Sebastian Chakeredza, Festus K Akinnifesi (2008). Commercially
available protein concentrates are prohibitively expensive for the smallholder dairy farmers in
sub-Saharan Africa. However, these farmers have a number of locally available feedstuffs at
their disposal that can be used for home-mixing into the dairy meal concentrate fraction.

51
 CHAPTER 4:-DATA ANALYSIS AND INTERPRETATION

is a process of inspecting, cleansing, transforming and modeling data with the goal of

discovering useful information, informing conclusion and supporting decision-making. Data
analysis has multiple facets and approaches, encompassing diverse techniques under a variety
of names, and is used in different business, science, and social science domains. In today's
business world, data analysis plays a role in making decisions more scientific and helping
businesses operate more effectively

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 ANALYSIS OF QUESTIONNAIRE:

1. Gender?

Serial No. Gender NO. of respondents % of respondents

1 Male 34 34%
2 Female 65 65%
3 Prefer not to say 1 1%

Interpretation:

From above pie diagram we came to know that 34% respondents are Male , 65% of the
respondents are Female, 1% of the respondents are Prefer not to say.

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 2. Age?

  

Serial No. Age NO. of respondents % of respondents

1 18-25 81 81%
2 25-30 14 14%
3 30-35 4 4%
4 35 and above 1 1%

Interpretation:

From above pie diagram we came to know that 81% respondents are 18-25 , 14% of the
respondents are 25-30, 4% of the respondents are 30-35, 1% of the respondents are 35 and
above.

3.Occupation?
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 Serial No. OCCUPATION NO. of respondents % of respondents
1 SELF-EMPLOYED 24 24%
2 STUDENT 63 63%
3 BUSINESS 8 8%
4 HOUSEWIFE 5 5%

Interpretation:

From above pie diagram we came to know that 24% respondents are SELF-EMPLOYED,
63% of the respondents are STUDENT, 8%of respondents are of BUSINESS, 5%of the
respondents are of HOUSEWIFE.

4. Which brand of Milk you consume?

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 Serial No. Particular NO. of respondents % of respondents
1 Amul 72 72 %
2 Warana 13 13%
3 Gowardhan 6 6%
4 Gokul 2 2%
5 Dairy 7 7%

Interpretation:

From above pie diagram we came to know that 72% respondents are Amul , 13 % of the
respondents are Warana , 6 %of respondents are Gowardhan , 2%of the respondents are of
Gokul. 7% of respondents are Dairy.

5.Which Amul milk do you consume?

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 Serial No. Particular NO. of respondents % of respondents
1 Amul 45 45%
2 Amul Gold 46 46%
3 Amul Deshi A2 Cow 9 9%
milk

Interpretation:

From above pie diagram we came to know that 45% respondents are Amul , 46%of the
respondents are Amul Gold , 9% of the respondents are Amul Deshi A2 Cow milk.

5. From where do you purchase Amul milk?

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 Serial No. Particular NO. of respondents % of respondents
1 Amul dairy 34 34 %
2 Local general store 66 66%

Interpretation:

From above pie diagram we came to know that 34 % respondents are Amul dairy , 66%of
the respondents are Local general store .

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 6. How many time do you buy milk?

Serial No. Particular NO. of respondents % of respondents

1 1 time a day 31 31%
2 2 time a day 28 28%
3 1 time in 2 day 28 28%
4 When requires 13 13%

Interpretation:

From above pie diagram we came to know that 31% respondents are 1 time a day 28%of the
respondents are 2 time a day, 28%of respondents are 1 time in 2 day, 13%of the
respondents are of When requires

8. Are you satisfied with the product packaging?

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 Serial No. Particular NO. of respondents % of respondents
1 Highly satisfied 33 33%
2 Satisfied 42 42%
3 Neutral 20 20%
4 Dissatisfied 5 5%

Interpretation:

From above pie diagram we came to know that 33% respondents are Highly satisfied,
42%of the respondents are Satisfied, 20%of respondents are Neutral , 5 %of the
respondents are of Dissatisfied.

9. Who influence your purchase decision?

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 Serial No. Particular NO. of respondents % of respondents
1 Television 27 27 %
2 News paper 17 17 %
3 Advertisement on 12 12%
boards
4 Word of month 44 44%

Interpretation:

From above pie diagram we came to know that 27% respondents are Television , 17 %of
the respondents are News paper , 12% of respondents are Advertisement on boards , 44%
of the respondents are of Word of month.

10. The Purpose of using milk?

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 Serial No. Particular NO. of respondents % of respondents
1 Tea/ coffee 36 36 %
2 Ghee making 15 15%
3 Curd making 7 7%
4 For sweets 12 12%
5 For drinking 30 30%

Interpretation:

From above pie diagram we came to know that 36 % respondents are Tea/ coffee , 15% of
the respondents are Ghee making, 7%of respondents are Curd making, 12%of the
respondents are of For sweets. 7% of respondents are For drinking.

11. What do you do when prise increase?

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 Serial No. Particular NO. of respondents % of respondents
1 Switch in brand 23 23 %
2 Change in milk 23 23%
3 Decreas in 14 14%
purchase of amount
of milk
4 Don’t do 40 40 %
anything

Interpretation:

From above pie diagram we came to know that 23 % respondents are Switch in brand, 23%
of the respondents are Change in milk, 14% of respondents are Decreas in purchase of
amount of milk, 40 % of the respondents are of Don’t do anything .

12. What improvement you would Recommend in Amul milk?

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 Serial No. Particular NO. of respondents % of respondents
1 Purity 27 27%
2 Packaging 27 27%
3 Delivery 24 24%
4 Availability 22 22%

Interpretation:

From above pie diagram we came to know that 27% respondents are Purity , 27% of the
respondents are Packaging , 24% of respondents are Delivery, 22% of the respondents are
of Availability.

CHAPTER 5: SUGGESTIONS AND CONCLUSION

64
5.1 SUGGESTIONS AND RECCOMENDATION

1. Give the credit purchase facility to their regular Retailers.

2. As quick as Possible try to settle the various claims of the Retailers.

3. They have to co-operate those retailers who have a less demand in shop and try to
pass the various attractive schemes of the company.
4. Were the mil van does not reach the side location there should be small
distribution by other means.
5. Customer relationship should be more commandeered by distributor for
homonymous relationship

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5.2 CONCLUSION

If we go through the SWOT analysis of Amul as a whole then we will find out it has a very
good standing at market place and Amul also has very good corporate image among present
companies and. It should cash his image by effective using of marketing mix.

The research which we have conducted we found that if Amul wants to stand in top position
he has to maintain himself in some areas.

• Advertising frequency

• Customer Relationship

• Dealer board sign board and banner etc.

• Retaining the small customer also.

• Availability (Distribution network). Product quality and packing

As we have found in our research that Amul has good market share in pouch milk, as
compared to other competitors.

However, Amul has very good brand image and corporate image too. But still Amul is not
able to cash all the opportunity, which exists in the market.

CHAPTER 6: BIBLOGRAPHY

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6.1 QUESTIONAIRE:

1. Which brand of Milk you consume?

a) Amul
b) Warana
c) Gowardhan
d) Gokul
e) Dairy

2. Which Amul milk do you consume?

a) Amul Taaza
b) Amul Gold
c) Amul Deshi A2 cow milk

3. From where do you purchase Amul milk?

a) Amul Dairy
b) Local general store

4. How many time do you buy milk?

a) 1time a day
b) 2time a day
c) 1time in 2day
d) When requires

5. What would be your daily purchase of milk?

a) Less than 1 ltr
b) 1 to 2 ltr
c) 2 to 4 ltr

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 d) More than 4 ltr

6. Are you satisfied with the product packaging?

a) Highly Satisfied
b) Satisfied
c) Neutral
d) Dissatisfied

7. Who influence your purchase decision?

a) Television
b) News papers
c) Advertisement on Boards
d) Word of mouth

8. The Purpose of using milk?

a) Tea/ Coffee
b) Ghee making
c) Curd making
d) For sweets
e) For drinking

9. What do you do when prise increase?

a) Switch in brand
b) Change in type of milk
c) Decrease in purchase of amount of milk
d) Don't do anything

10. What improvement you would Recommend in Amul milk?

a) Purity
b) Packaging

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 c) Delivery
d) Availability

6.2 REFERENCES:

69
 Marketing Management (Author- Philip Kotler)

 (Publish by Pren Tice-hall of India PVT. LTD., New Delhi)

Ninth Edition

1. www.amul.com

2. www.anulindia.com

3. https://www.franchiseindia.com/wellness/challenges-faced-by-the-indian-dairy-
sector.11159

4. https://www.marketing91.com/top-11-amul-competitors/

5. https://en.wikipedia.org/wiki/Amul#Advertising

6. https://www.academia.edu/3706812/PROJECT_ON_AMUL?auto=download&ssrv=ss

THANK YOU…
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