Directorate of Distance Education

Swami Vivekanand Subharti University

A Project Report on

“A STUDY ON MARKETING STRATEGY

OF AMUL MILK MARKET IN NCR
REGION”

Directorate of Distance Education

Swami Vivekanand Subharti University
Meerut

Submitted for Partial fulfillment for award of the degree in

Master of Business Administration

By Student Under the Supervision

Name- VARUN SONI Mr. Deepak Mittal
Enroll No. - W1020648887 (HOD)
Roll No.- W11647389
Batch - Q 2018-19

1
 CERTIFICATE

This is to certify that VARUN SONI has carried out the Project work presented

in this entitled "A STUDY ON MARKETING STRATEGY OF AMUL

MILK MARKET IN NCR REGION" under my supervision and merits the

award of Master of Business Administration from Swami Vivekanand

Subharti University. The Project embodies result for Original work and studies

carried out by Student himself/herself and the contents of the Project do not

form the basis for the award of any other degree to the candidate or to anyone

else.

Signature of Student Signature of Guide

Name- VARUN SONI Name of Guide- Mr. Deepak Mittal

Enroll No. - W1020648887 Designation: HOD
Roll No.- W11647389
Batch - Q 2018-19

Signature:-
Name of the Faculty:- Mr. Deepak Mittal
Designation: - HOD

2
 DECLARATION

I hereby declare that I have carried out Summer Training Project on the topic entitled

"A STUDY ON MARKETING STRATEGY OF AMUL MILK MARKET IN

NCR REGION". I further declare that this project report work is based on my

original work and no part of this project has been published or submitted to anybody.

DATE: ………………….
PLACE:…………………..

VARUN SONI

3
 ACKNOWLEDGEMENT

When I embarked this project, it appeared to me an onerous work. Slowly as I

progressed, I did realize that I was not alone after all!! There were friends and well wishers,

who with their magnanimous and generous help and support made it a relative easier affair.

I wish to express my gratitude to all that concerned persons who have extended their

kind help, guidance and suggestions without which it could not have been possible for me to

complete this project report.

I am deeply indebted to my Mr. Deepak Mittal Mittal (HOD) for not only her

valuable and enlightened guidance but also for the freedom he rendered to me during this

project work.

My heart goes out to my parents who bear with all types of troubles I caused

them with smile during the entire study period and beyond.

VARUN SONI

4
 PREFACE

During my research I got practical knowledge about strategies. And how to work is
carried out into in company in this report I have mentioned the role of AMUL INDIA
LTD.

Learning is a process, which continues throughout the life. Basically project work is
the best way to practice what we have learnt. A project is a scientific and systematic
study of real issue or a problem intended to resolve the problem with applications of
management knowledge and skills into the application to solve whatever problem
comes in the organization.

An organization is a human grouping in which work is done for the accomplishment

of some specific goal, or mission. All the activities of any enterprises are initiated and

determined by the person who make up that institute, plant, office, computer,

automated equipment and all else that make a modern firm uses are unproductive

expert for human effort and direction of all the task of management, managing the

human component is the central and most important task, because all else depend on

how well it is done.

TABLE OF CONTENTS
Chapter-1
 Executive summary
Chapter-2
 Introduction
 History
Chapter-3
 Company Profile

5
  Structure of Sales & marketing
 Product Profile
 Amul Delhi NCR region
 Competitor of Amul
 Overview of Gujarat cooperative milk
 Industry Profile
 Chairman speech
 Nature of job & marketing
Chapter-4
 Research methodology
a. Objectives
b. Sample Technique
c. Method of data collection
Chapter-5
 Data analysis & Interpretation
 Marketing Strategy of Amul
 SWOT Analysis
 Findings
 Limitations
 Suggestions & Recommendation
Chapter-7
 Bibliography
Chapter-8
 Questionnaires

EXECUTIVE SUMMARY

The topic of my project is “A Study on Marketing Strategy of Amul in Milk Market in NCR
Region”. This project was undertaken with the objective of promotion of brand AMUL in
schools & nearby area canteens. The study was conducted at AMUL India Ltd. Indore
branch. The retailer's preference was studied through using questionnaire. A sample size of
100 consumers was taken for the study, whose responses were studied and interpreted the
sampling design was used descriptive sampling. The process of analysis was done through
excel work sheets, frequency table, percentage analysis etc. It was found that canteen holders
are having the problem in storage of AMUL products because company does not provide
refrigerator to them that's why they do not keep Amul products in their canteens. Retail
outlet. Trust of the company was the first preference of the retailer's then credit on the
product. Retailers want to keep AMUL products but they want some facilities from the
company side. Finally the whole study of the research work.

6
 INTRODUCTION

Amul is basically operated from Anand and it’s on co-operative basis. Amul produces
large variety of product range starting from Milk, Misti Dahi, Mozzarella, Cheese and
Ready to eat pizza as well as Ice creams and chocolates. Amul has been the market
leader in butter for last 55 years. No such competitor stands before Amul butter.

Therefore Amul decided to enter into Ice cream field in 2015. After a long research in
this field, an output obtained was positive. Though of the tough competitors like
Mother Dairy, HLL, Britannia, Cadbury and many more. Amul was ready to face
them. Amul was very successful and got a positive response from the market in 2012.
It was because of its brand image, product range and test which were given to the
retailers.

7
The main competitors in Sahibabad and Ghaziabad were Mother Dairy, Paras and
Parag milk. Mother Dairy was very strong due to its facilities as well as it has made a
room in customers mind. Whereas Amul had also provided a deep freezer on security
on preference of the retailer. Paras was the second major competitor due to its huge
investments of money on sales promotion as well as Paras provides a large variety of
product range and attractive packaging.

Amul had a very good advantage of its good brand image. It has captured a very good
market in Ghaziabad and Sahibabad area. Amul has a start to end range of every
product. Consumers are very much attracted towards Amul’s quality, which was
highest among all competitors.

Formed in 1950, it is a brand managed by a cooperative body, the Gujarat Co-

operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by
3.6 million milk producers in Gujarat.

The white revolution was spearheaded by Tribhuvandas Patel under the guidance of
Sardar Patel and Verghese Kurien. As a result, Kaira District Milk Union Limited was
born in 1946. Tribhuvan das became the founding chairman of the organization which
he led till his last day of his life. He hired Dr. Kurien three years after the white
revolution. He convinced Dr.Kurien to stay and help with the mission rest was history
in the dairying industry.

Amul spurred India's White Revolution, which made the country the world's largest
producer of milk and milk products. In the process Amul became the largest food brand in
India and has ventured into markets overseas.

Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–
2006), is credited with the success of Amul.[5]Amul products are now available in more than
60 countries in the world.

8
 HISTORY

Amul-cooperative registered on 14 December 1946 as a response to the exploitation of

marginal milk producers by traders or agents of the only existing dairy, the Polson dairy, in
the small city distances to deliver milk, which often went sour in summer, to Polson. The
prices of milk were arbitrarily determined. Government had given monopoly rights to Polson
to collect milk from Kaira and supply it to Bombay city.

Angered by the unfair trade practices, the farmers of Kaira approached Sardar Vallabhbhai

Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to
form a cooperative and supply milk directly to the Bombay Milk Scheme instead of Polson
(who did the same but gave them low prices). He sent Morarji Desai to organize the farmers.
In 1946, the milk farmers of the area went on a strike which led to the setting up of the
cooperative to collect and process milk. Milk collection was decentralized, as most producers
were marginal farmers who could deliver, at most, 1–2 litres of milk per day. Cooperatives
were formed for each village, too.

The cooperative was further developed and managed by Dr.Verghese Kurien with H.M.

Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk (for the first
time in the world) and a little later, with Kurien's help, making it on a commercial scale, ] led
to the first modern dairy of the cooperative at Anand, which would compete against
established players in the market. Kurien's brother-in-law K.M. Philip sensitized Kurien to
the needs of attending to the finer points of marketing, including the creation and
popularization of a brand. This led to the search for an attractive brand name. In a
brainstorming session, a chemist who worked in the dairy laboratory suggested Amul, which

9
came from the Sanskrit word "amulya", which means "priceless" and "denoted and
symbolized the pride of swadeshi production."

The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to
Anand's neighborhood in Gujarat. Within a short span, five unions in other districts –
Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set up. To combine forces and
expand the market while saving on advertising and avoid competing against each other, the
GCMMF, an apex marketing body of these district cooperatives, was set up in 1973. The
Kaira Union, which had the brand name Amul with it since 1955, transferred it to GCMMF.

In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.

Technological developments at Amul have subsequently spread to other parts of India.

The GCMMF is the largest food products marketing organization of India. It is the apex
organization of the dairy cooperatives of Gujarat. It is the exclusive marketing organization
for products under the brand name of Amul and Sagar. Over the last five and a half decades,
dairy cooperatives in Gujarat have created an economic network that links more than
3.1 million village milk products with millions of consumers in India. Gujarat Cooperative
Milk Marketing Federation Ltd.

10
 COMPANY PROFILE

GUJARAT COOPERATIVE MILK MARKETING FEDERATION

GCMMF: An Overview

Gujarat Cooperative Milk Marketing

Federation (GCMMF) is India's
largest food products marketing
organization. It is a state level apex
body of milk cooperatives in Gujarat
which aims to provide remunerative
returns to the farmers and also serve
the interest of consumers by
providing quality products which are
good value for money.

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 hones since 1946.
Amul Milk Powder, Amul Ghee, Amul Spray, Amul Cheese, Amul Chocolates, Amul Shrikhand,
Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in
India. (Rs. 45225 Million in 2011-12). 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

11
model for dairy development.

12
Members: 18 district cooperative milk producers' Union
No. of Producer Members: 3.6 million

No. of Village Societies: 18600

Total Milk handling capacity: 6.9 million Litres per day

Milk collection (Total – 2015-16): 6.6 billion Litres

Milk collection (Daily Average 20016-17): 7.8 billion Litres

Milk Drying Capacity: 511 metric Tons per day

Cattle feed manufacturing Capacity: 2340 Mts per day

13
 AMUL KOOL:

‘Nature’s finest flavoured milk is here’

GCMMF launched Amul Kool in Delhi and NCR in 2014 to cater the demand of consumers
and to fill in the gap between demand and supply. It reaches consumers within hours of it
being packed at the right temperature to ensure that it retains all its natural goodness.

Treasure of Natural Goodness

Amul Kool is highly nutritious and contains proteins, minerals, carbohydrates and vitamins
i.e. SNF as it is commonly called. Amul Kool also contains natural fat and natural SNF as it
is from natural source and does not contain milk powder.

Quality Standards

Amul Kool strictly conforms to quality standards of Prevention of Foods & Adulteration Act
(PFA). This means when one buy Amul Kool he/she is sure to get:

 Nature’s perfect food for the health of your family

 Milk which has longer because of its superior bacteriological quality and the state of
the art processing technology.

 The right quantity as mentioned on the packs

 Consistent quality and ample quantity throughout the year even during festive and
lean session.

 The accurate taste which is mentioned on the bottle or pack.

FAT ENERGY QUANTITY MRP per

Amul Kool 9.7% 184 cal. 200ml. Rs. 10/-

Gagan 8.9% 180cal. 200ml. Rs. 10/-

NESTLE ----------- 200cal. 200ml. Rs.15/-

14
GCMMF – BUSINESS PHILOSOPHY

 To serve the interests of milk producers.

 To provide quality products to consumers – value for money.

INDUSTRY STANDING

 India’s largest food products marketing organization with an annual turnover of

over Rs. 2700 crores.

 Market’s popular brands Amul and Sagar.

 India’s largest exporter of dairy products.

 India’s largest “cold chain” network.

 No.1 market share holder in India for Butter, Cheese, Ice-cream, Dairy Whitener,
Condensed Milk, UHT Milk, and Baby Food.

 Presently marketing pouch liquid milk in five states namely, Gujrat, Maharashtra,
Chhattisgarh, Rajasthan, Delhi and Madhya Pradesh.

OUR VALUES

 Customer Orientation.

 Commitment to Producers.

 Belongingness.

 Co-operation.

 Pride in Organization.

15
  Employee Satisfaction.

 Integrity.

 Excellence.

 Leadership.

MISSION STATEMENT

We, at GCMMF, endeavor to satisfy the taste and nutritional requirements of the world,
through excellence in marketing through our committed team.

Trough co-operative network, we are committed to offering quality products that provide best
value for money.

GCMMF – JOURNEY 2014

GCMMF will be an outstanding marketing organization with specialization in marketing of

food and dairy products, both fresh and long life, with customer focus and information
technology integration. The network would consist of over 100 sales offices, 8500 stockiest
covering at least every taluka headquarter town, servicing nearly n1 million retail outlets with
a sales turnover of Rs.13,000 crores (100 Billion), and serving several cooperatives.

GCMMF shall also create markets for its products in the neighbouring countries.

Facts on 30th Annual General Body Meeting

Adopted at their meeting held on 8th June, 2014 for presentation at the 30th Annual
General Body Meeting.

As Amul was founded on a sound business model: providing quality products to

consumers at an affordable price. The Pundits have described our model as "value for
money" and it has been adopted by a number of companies. While imitation may be
flattery, most other organizations fail to understand that "value for money" is not just
about low prices - it means offering the best quality products at the most reasonable

16
price. As a cooperative, our faith requires that we safeguard the interest of both our
major stakeholders the farmers - and the consumers whose loyalty is essential to our
continued success.

MILK PROCUREMENT

Total milk procurement by Member Unions averaged 51.13 lakh kilograms per day, a
marginal decline from 52.35 lakh kilograms per day, achieved in 2012-2013. However,
the good monsoons experienced during last year and the better procurement prices on
offer are expected to encourage higher milk production and procurement in the current
year.

SALES

During the year, your Federation's sales registered a growth of 5 percent increase to reach Rs.
2,881.96 crores including consignment sales of Rs.62.95 crores. The dairy line grew by about
18% despite the loss of a sizable edible oil business. In 2014-15, the sale of Amul Milk in
pouches increased by 34 percent in value terms. A notable development in the area of liquid
milk in pouches has been the successful launch of Amul Milk in the Delhi market during
November 2003. Within under 60 days of launch, achieved sales of 1 lakh liters per day.
UHT Milk has grown in both value and volume terms by 60 percent, which shows that it has
really come upon the high growth stage. Despite intense competition, sales value of Amul
Butter grew by 19 percent and that of milk powders has firmed up further. The sales of the
Amul Cheese range increased by 13 percent. Products like Flavoured Milk, Amul Fresh
Cream, Paneer, Mithaimate, Softy Mix, and fresh curd demonstrated their potential to
become dominant brands

DISTRIBUTION

During the year, the major development on the distribution front was the development

17
and alignment of four distribution highways-those of Fresh Products, Chilled Products,
Frozen Products and Ambient Products. This is a significant achievement because it
allows us to develop synergies among all our product lines and to leverage these
highways to introduce and distribute new products as per market demand. I take pleasure
in declaring that no other organization in India has been able to develop this kind of
channel synergy so far.

Another major initiative undertaken during the year was the Time-based Military
Technique (TMT) of distribution. This has been deployed to effect a nationally
synchronized mass distribution of products with the objective of achieving total channel
penetration on a single day. Most of our products launched or re-launched through this
technique have seen significant gains in distribution and availability.

After Distributor Salesmen in the previous year and Distributors in the year before last, it
was the turn of the top Retailers across the country to participate in the Amul Yatra
Programme. It is conducted by your Federation to bring our channel partners face to face
with our cooperative institutions, activities, culture and achievements through a guided
tour in and around Anand. A total of 114 Distributor Salesmen and 482 top retailers from
across the country participated in the Amul Yatra this year. With the opening of several
new milk markets and 3 separate Milk Sales Offices at Mumbai, New Delhi and Boisar,
the number of Milk Area Delivery Agents has increased. 95 Milk Area Distribution
Agents also visited Anand for Amul Yatra. Distributors have further enhanced their
infrastructures in terms of installation of cold storage arrangements, enhanced bank
guarantee limits with Federation and introduced good quality delivery vehicles. An
objective evaluation was done in the form of distributor renewal and Performance
appraisal.

INFORMATION TECHNOLOGY INTEGRATION

The Federation has further advanced our technological leadership by implementing a

Virtual Private Network (VPN) with secured fiber optic connectivity which, with

18
deployment of the "Amul Online ERP" System, will facilitate electronic transactions
between member unions and the Federation offices, providing a seamless and smooth
flow of information that enhances operational efficiency. The Federation now enjoys a
significant advantage in rapid reaction to changing business demands.

Your Federation is bolstering our brand identity as a farmers' co-operative through the
Internet based "amul.coop" URL and e-mail addresses. This will continually remind the
world's consumers that we are a cooperative, and proud of it. This identity gives us a
vital business advantage and facilitates Amul brand penetration across the world. It also
strengthens our co-operatives by bringing our members together and closer to
consumers.

COOPERATIVE DEVELOPMENT PROGRAMME

During the last four years, Member Unions have implemented an Internal Consultant
Development (ICD) intervention focused on developing leadership among member
producers, helping them to better manage their dairy business.

During the year, Member Unions continued to implement the module on Vision Mission
Strategy (VMS) for primary milk producer members and Village Dairy Cooperatives.
Facilitated by specially trained consultants, 1,073 Village Dairy Cooperative Societies
(VDCS) have conducted Vision Mission Strategy Workshops, and have prepared
Mission Statements and Business Plans for the next five years. The VMS module has
prompted milk producers to initiate activities at villages that have far-reaching effects on
the milk business.

The success of the program has led to Member Unions focusing on implementing this
VMS module and developing Business Plans for all VDCS, thus strengthening them to
face the fierce competition ahead.

With the objective of encouraging professional management by Milk Producers and

dairy cooperative societies, Member Unions have initiated Members' Business
Development Programme (MBDP). During the last three years, 2,483 villages and 1,
53,108 milk producers participated in the programme. This has resulted in introduction
of new scientific animal husbandry management methods on a significant scale.

A Chairmen and Secretaries' Orientation Programme is being conducted at Mother

19
Dairy, Gandhi nagar. Member Unions, supported by your Federation, carry out this
program to increase awareness regarding the dairy industry scenario and to develop
leadership skills among Chairmen and Secretaries. During the year, 5,797 chairmen and
secretaries from 2,944 Village Dairy Cooperative Societies participated in the program.

An ongoing emphasis of Member Unions has been to encourage increased women milk
producers' participation in their Dairy Cooperative Societies. To develop and enhance
leadership skills and qualities, Member Unions organized three Self Managing
Leadership (SML) workshops at Prajapita Brahma kumaris, Mount Abu which attracted
the participation of 3,100 women resource persons along with the Chairmen and
Secretaries of 750 VDCS.

WHAT THE FUTURE HOLDS

As there is a steady increase in consumer expectations. Product and service quality is

rapidly becoming the minimum threshold for consumer acceptance. To achieve and
maintain competitive advantage, innovation in product design and delivery are
increasingly essential. Innovation must now define us as an organization. There must
innovate at each stage in our value chain - production, procurement, processing,
marketing and branding.

Innovation cannot be mandated or forced out of people. It is everywhere a function of

the quality of people and environment. Need to have enough skilled people working in a
self-actuating environment to produce innovation. In these times of increasing market
opportunities, to devise more effective ways of attracting and retaining skilled human
resources. It is to be realized that just as the market is expanding for our products, so it is
opening up new opportunities for the skilled people that we need to tap the market.
Further, it does not suffice merely to retain skilled human resources. It is also necessary
to provide them an adequately self-motivating work environment that draws out the best
out of them on a sustained basis.

From the year 1994, our unions have been engaged in the practice of third party
validation of its practices. Since then, we have been awarded the ISO 9002:2000, the
HACCP, the ISO 14001 and similar marks of our excellence in milk procurement and
processing. The importance of standardization of our village society election processes
lies in their instrumentality in throwing up genuine and visionary leaders. It determines

20
the future of the cooperative movement.

THE BIRTH OF AMUL

 Linked to the freedom movement of India.
 Founded in 1946 to stop the exploitation of milk producers at the hands of
middlemen.
 A Co-operative movement – member control on milk production, processing and
marketing.
 A humble beginning with two village societies and 247 litres of milk

THE GROWTH OF AMUL

 Co-operative movement spread like wild fire in the state.
 Rapid increase in milk procurement.
 Identification of Bombay liquid market.
 Investing in manufacturing plants that produce milk powder, butter, cheese and
condensed milk.
 Launch of “Amul” as a brand.

FORMATION OF GUJARAT COOPERATIVE MILK MARKETING FEDERATION

LTD [GCMMF]

Formed 1973
No. of Cooperative Unions 12

21
No. of Dairy plants 19
Capacity 6,595 Thousand Litres per Day

It is Apex Marketing Federation of 12 District Milk Unions in Gujrat to operate own

marketing and distribution networks pan India and abroad

Address:
Gujarat Cooperative Milk Marketing Federation Ltd., Amul Dairy Road Anand, Gujarat,
India 388 001, Tel: +91-2692-241621 & 23 web: www.amul.com

22
STRUCTURE OF SALES AND MARKETING DEPARTMENT

MANAGING DIRECTOR

HEAD OFFICE INCHARGE

MANAGER (SALES)

DY. MANAGER (SALES)

ASSTT. MANAGER (SALES)

SENIOR EXECUTIVE

EXECUTIVE

JUNIOR EXECUTIVE

FIELD SALES REPRESENTAVTIVE (FSR

23
 PRODUCT PROFILE
LIST OF PRODUCTS:

Cheese Range:

 Amul Pasteurized Processed Cheddar Cheese

 Amul Processed Cheese Spread

 Amul Pizza (Mozarella) Cheese

 Amul Shredded Pizza Cheese

 Amul Emmental Cheese

UHT Milk Range:

 Amul Taaza 3% fat Milk

 Amul Gold 4.5% fat Milk

 Amul Slim-n-Trim 0% fat milk

 Amul Chocolate Milk

 Amul Fresh Cream

 Amul Snowcap Softy Mix

 Amul Taaza Double Toned Milk

Infant Milk Range:

 Amul Infant Milk Formula 1 (0-6 months)

 Amul Infant Milk Formula 2 ( 6 months above)

Milk Powders:

 Amul Full Cream Milk Powder

 Amulya Dairy Whitener

24
  Sagar Skimmed Milk Powder

 Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

 Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat

 Amul Gold Full Cream Milk 6% fat

 Amul Shakti Standardized Milk 3% fat

 Amul Smart Double Toned Milk 1.5% fat

25
DIFFERENCE BETWEEN AMUL KOOL AND GAGAN

Constituents AMUL KOOL GAGAN

ENERGY 184 Cal. 180 Cal.

COLOUR & FLAVOUR NATURAL IDENTICAL

FLAVOUR SYNTHETIC FOOD
COLOURS & ADDED
FLAVOURS
MILK USED TOND MILK DOUBLE TOND MILK

TYPES OF MILK USED:

Variation in different types of milk is due to the difference in their Fat and SNF content.

TYPE OF MILK FAT % SNF %

DOUBLE TOND MILK 1.5 9.0

TOND MILK 3.0 8.5

AMUL IN DELHI/NCR REGION:

26
Delhi National Capital Region (NCR), among the biggest milk markets in the country, is
dominated by Mother Dairy currently. Amul and NDDB's non-compete agreement has
prevented the former from launching its liquid milk in the Delhi market till 2003.

With the non-compete agreement having run out this year, Amul fresh milk was launched in
Delhi last month in two variants — full cream and toned — priced at par with that of Mother
Dairy at Rs 30 and Rs 26 per liter, respectively. Amul is bringing its milk into Delhi through
one of its district co-operative unions, the Gujarat-based Mehsana Union. The milk will be
packed at Kwality Dairy in Ballabgarh, leased out to Amul for this purpose. Amul will use
the same distribution network as butter and cheese to retail Amul Milk in Delhi. According to
Mr. R.S. Sodhi, Amul’s marketing head; Amul will not use skimmed milk powder in its milk.

GCMMF officials say the company's milk capacity has already touched 80,000 litres per day
(LPD) and have plans to take it to 3 LPD. Amul is now selling through 2,500 retail outlets
and will increase this to 7,500 apart from covering outlets which are selling Amul butter.

The Delhi market comprises 40 lakh litres currently and is dominated by Mother Dairy,
which sells 10 lakh LPD. The other organized sector players are Paras Dairy, which sells 3
lakh LPD, state-owned Delhi Milk Scheme (2.5 Lakh LPD), Gopaljee (1-1.5 Lakh LPD) and
Britannia 30-40,000 LPD.

In just a fortnight, Amul milk has taken the Indian capital by storm, rapidly eating into the
market share of long time players like Mother Diary and Paras. Who cares if it was rivalry or
business strategy that made the Gujarat Cooperative Milk Marketing Federation (GCMMF)
enter the capital with Amul milk to take on state-owned Mother Dairy in its home turf? From
the response, Delhiites seem to be lapping up Amul’s pouches of full cream and toned milk in
unimagined quantities.

In just two weeks of entering the market, Amul is beginning threaten the virtual monopoly of
Mother Dairy and Paras. “We did not expect to reach 70,000 litres daily supply in little over
two weeks,” said R.S. Khanna, a GCMMF official here.

“We had expected to go up gradually and had made arrangements for pasteurisation and
packaging of just 60,000 litres per day at Kwality Dairy’s unit in Faridabad, which we have
leased,” Khanna said. But in less than one week, Amul notched the mark of 50,000 litres per
day. GCMMF is bringing milk to Delhi through one of its district co-operative unions,

27
located at Mehsana, around 700 km from the capital.

The fresh milk is transported through insulated containers of between 12,000 to 20,000 litres
capacity at two degree centigrade. After the 24 to 30 hours journey by road, the milk is
processed and packaged at Mehsana before being distributed in the Indian capital. “The
packaged milk is being sold through 2,500 retail outlets, which we hope to raise to 7,500 as
we soon as we are able increase the supplies to 100,000 litres.

“In two months our target is to raise supplies to 200,000 litres per day,” he added. The
official admitted that the idea of entering the Delhi market had originated in August when the
state and central governments approached the GCMMF to help tide over an acute milk
shortage. “Having helped to bridge the demand supply gap, we decided to come in with fresh
milk supply, which does not contain any milk powder and is creamier and of richer quality
compared to most other milk supplied in the city because it has more fat and solid non-fats
like protein and minerals,” said Khanna. At over five million litres a day, Delhi is one of the
biggest markets for milk in the country. Of the supplies from the organised sector, Mother
Dairy has been the undisputed leader with 1.8 million litres daily sales through package and
vending machines. The other big names are Paras, Param, Gopaljee and Umang. Now Amul
milk has arrived to eat into the share of other players in the market on the strength of its
quality and brand equity.

28
 COMPETITORS OF AMUL :

 Paras(Ved Ram & Sons)

 Madhusudan

 Mother Dairy

 Amrit Food

 Gopaljee(G.K.Dairy)

 Umang (J.K.Dairy)

 Param

 Ramlal

 Madhuban

29
MOTHER DAIRY

Mother Dairy - Delhi was set up in 1974 under the Operation Flood Programme. It t is now a
subsidiary company of a wholly owned company of the National Dairy Development Board
(NDDB). Mother Dairy sources its entire requirement of liquid milk from dairy cooperatives.
Mother Dairy sources fruits and vegetables from farmers/growers associations. Mother Dairy
also contributes to the cause of oilseeds grower cooperatives that manufacture/ pack the
Dhara range of edible oils by undertaking to nationally market all Dhara products.

Mother Dairy's constant endeavor to:

Ensure that milk producers and farmers regularly and continually receive market prices by
offering quality milk, milk products and other food products to consumers at competitive
prices and; uphold institutional structures that empower milk producers and farmers through
processes that are equitable. At Mother Dairy, processing of milk is controlled by process
automation whereby state-of-the-art microprocessor technology is adopted to integrate and
completely automate all functions of the milk processing areas to ensure high product quality/
reliability and safety. Mother Dairy is an IS/ ISO-9002, IS-15000 HACCP and IS-14001
EMS certified organization. Moreover, its Quality Assurance Laboratory is certified by
National Accreditation Board for Testing and Calibration Laboratory (NABL) - Department
of Science and Technology, Government of India.

Mother Dairy markets & sells dairy products under the Mother Dairy brand (like Liquid
Milk, Dahi, Ice Creams, Dairy Whitener and Butter), Dhara range of edible oils and the Safal
range of fresh fruits & vegetables, frozen vegetables and fruit juices at a national level,
through it's sales and distribution networks, for marketing food items. In times to come,
Mother Dairy shall strive to become a leading player in the food industry in India.
Type of Milk Milk Fat SNF

Double Tonned 1.0% 9.0%

Full Cream 0.5% 8.7%

Skimmed 6% 9%

30
 AMUL GOLD MILK

Amul Gold is Long Life standardized milk. It is fresh and only fresh milk, which has
been processed with a technology called UHT (Ultra High Temperature), hence also
known as UHT milk. Notwithstanding popular misconception, UHT technology does
not involve any use of preservatives. The UHT treatment ensures zero microbial
activation, while preserving the maximum flavours, taste, and nutritional value. The
aseptic packaging system protects the product from air and light and guarantees a long
shelf life of 180 days without refrigeration.

Amul Gold contains 4.5% fat and 8.5% SNF minimum and is ideal for making sweet
dishes (like kheer, payasam etc.) and for setting curds. It is also ideal for drinking
straight from the pack for kids and adolescents who simply love its creamy taste sans
the inconvenient cream layer! Amul Gold comes in convenient 1 liter and 500ml
packs.

31
 AMUL LITE SLIM AND TRIM MILK

Amul Lite is Long Life skimmed milk. It is fresh and only fresh milk, which has been
processed with a technology called UHT (Ultra High Temperature), hence also known
as UHT milk. Notwithstanding popular misconception, UHT technology does not
involve any use of preservatives. The UHT treatment ensures zero microbial
activation, while preserving the maximum flavours, taste, and nutritional value. The
aseptic packaging system protects the product from air and light and guarantees a long
shelf life of 180 days without refrigeration

Amul Lite Milk is a unique offering to health conscious milk lovers. With virtually
zero fat content, nil cholesterol and 8.7% SNF minimum, it gives you all the proteins,
vitamins and minerals of natural milk without your having to imbibe unnecessary flab
in the deal! Amul Lite Milk comes in convenient 1 liter, 500ml and 200ml pack

32
 AMUL TAAZA DOUBLE TONED MILK

Amul Taaza is Long Life double toned milk. It is fresh and only fresh milk, which has
been processed with a technology called UHT (Ultra High Temperature), hence also
known as UHT milk. Notwithstanding popular misconception, UHT technology does
not involve any use of preservatives. The UHT treatment ensures zero microbial
activation, while preserving the maximum flavours, taste, and nutritional value. The
aseptic packaging system protects the product from air and light and guarantees a long
shelf life of 180 days without refrigeration.

Amul Taaza contains 1.5% fat and 9% SNF minimum and is ideal for tea and coffee
whitening and for setting curds. It is also just right for drinking straight from the pack
for those who would like to enjoy the taste the goodness of natural while avoiding the
hazards of too much fat! Amul Taaza comes in convenient 1 liter, 500ml and 200ml
packs

33
PRODUCT OF AMUL PRODUCTS

34
HEALTHY DRINK
NUTRAMUL
Malted Milk Food made from malt extract has the
highest protein content among all the brown
beverage powders sold in India.

Check out this vast and ever growing range of Amul delectable’s:

Amul Butter

35
Amul Butter Amul Cheese Spreads

Amul Pasteurized Processed Cheese

36
Amul Lite Gouda Cheese.

Amul Pizza Mozzarella Cheese Amul Saagar Ghee

37
Amul Paneer Amul Mithai mate

Amul Mithaee Gulab Jamnus Amul Gulab Jamun Mix

38
 Amul Cooking Butter. Amul Masti Dahi.

Amul Gold Milk Amul Taaza Milk

These two packets are new successful inventions by Amul.

39
Amul Shakti Drink. Amul Nutramul Drink.

These two drinks are very successful health drinks pf Amul.

Amul Utterly Delicious Pizza Amul Fresh and Tasty Cream

40
 Amul Hot Tasty Soups. Amul Dairy Whitener.

Amul Shrikhand Amul Masti Buttermilk, an Ultimate

Amul Kool Amul Milk

41
Amul Ice creams Amul Chocolates

42
 GUJARAT COOPERATIVE MILK MARKETING
FEDERATION GCMMF: AN OVERVIEW
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food
products marketing organization. It is a state level apex body of milk cooperatives in
Gujarat which aims to provide remunerative returns to the farmers and also serve the
interest of consumers by providing quality products which are good value for money.

MEMBERS: 12 district cooperative milk producers' Union

No. of Producer Members: 2.28 million

No. of Village Societies: 11,132

Total Milk handling capacity: 6.7 million Litres per day

Milk collection (Total - 2002-03): 1.86 billion Litres

Milk collection (Daily Average 2002-03): 5.08 million Litres

Milk Drying Capacity: 510 metric Tons per day

Cattle feed manufacturing Capacity: 1450 Mts per day

43
THE MOPPET WHO PUT AMUL ON INDIA'S BREAKFAST TABLE

50 years after it was first launched, Amul's sale figures have jumped from 1000
tonnes a year in 1966 to over 40,000 tonnes a year in 2003. No other brand comes
even close to it. All because a thumb-sized girl climbed on to the hoardings and put a
spell on the masses.

Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old
housewife is out in the balcony drying clothes. From her second floor flat she can see
her neighbours on the road. There are other people too. The crowd seems to be
growing larger by the minute. Unable to curb her curiosity Sheela Mane hurries down
to see what all the commotion is about. She expects the worst but can see no signs of
an accident. It is her four-year-old who draws her attention to the hoarding that has
come up overnight. "It was the first Amul hoarding that was put up in Mumbai,"
recalls Sheela Mane. "People loved it. I remember it was our favourite topic of
discussion for the next one week! Everywhere we went somehow or the other the
campaign always seemed to crop up in our conversation."

For 35 odd years the Utterly Butterly girl has managed to keep her fan following
intact. So much so that the ads are now ready to enter the Guinness Book of World
Records for being the longest running campaign ever. The ultimate compliment to the
butter came when a British company launched a butter and called it Utterly Butterly,
last year.

It all began in 1966 when Sylvester da Cunha, then the managing director of the
advertising agency, ASP, clinched the account for Amul butter. The butter, which had
been launched in 1945, had a staid, boring image, primarily because the earlier
advertising agency which was in charge of the account preferred to stick to routine,
corporate ads.

44
One of the first Amul hoardings In 1969, when the city first saw the beginning of the
Hare Rama Hare Krishna movement, Sylvester da Cunha, Mohammad Khan and Usha
Bandarkar, then the creative team working on the Amul account came up with a
clincher -- 'Hurry Amul, Hurry Hurry'. Bombay reacted to the ad with a fervor that
was almost as devout as the Iskon fever. That was the first of the many topical ads
that were in the offing. From then on Amul began playing the role of a social
observer. Over the years the campaign acquired that all important Amul touch. India
looked forward to Amul's evocative humour. If the Naxalite movement was the
happening thing in Calcutta, Amul would be up there on the hoardings saying, "Bread
without Amul Butter, cholbe na cholbe na (won't do, won't do). If there was an Indian
Airlines strike Amul would be there again saying, Indian Airlines Won't Fly Without
Amul.

45
Amul's point of view on the MR coffee controversy From the Sixties to the Nineties,
the Amul ads have come a long way. While most people agree that the Amul ads were
at their peak in the Eighties they still maintain that the Amul ads continue to tease a
laughter out of them. Where does Amul's magic actually lie? Many believe that the
charm lies in the catchy lines. That we laugh because the humour is what anybody
would enjoy. They don't pander to your nationality or certain sentiments. It is pure
and simple, everyday fun. [Our Members Unions: aumulonline.com | Village
Societies]

46
 INDUSTRY PROFILE

INDIAN DAIRY INDUSTRY IN 1940s

 Inferior quality of locally marketed milk.
 Heavy dependence on imports.
 Unorganized production and processing.
 The rich dairying heritage being eroded.

FORMATION OF NATIONAL DAIRY DEVELOPMENT BOARD

The National Dairy Development Board was created to promote, finance and support
producer-owned and controlled organizations. NDDB's programmes and activities seek to
strengthen farmer cooperatives and support national policies that are favourable to the growth
of such institutions.  Fundamental to NDDB's efforts are cooperative principles and the
Anand Pattern of Cooperation.

DAIRY COOPERATIVES
Dairy Cooperatives account for the major share of processed liquid milk marketed in the
country. Milk is processed and marketed by 170 Milk Producers' Cooperative Unions, which
federate into 15 State Cooperative Milk Marketing Federations. Liquid milk it accounts for
90 per cent of the revenue of cooperatives. The MNCs and private players, which were earlier
only into milk products, are now seriously getting into the liquid milk sector. They realise
that money is in liquid milk. Whoever has access to cheap milk eventually wins the battle in
the products business. You can go and buy standard marketing, brand building expertise.

The challenge for cooperatives is not to be competitive to export but to be competitive to

expand their market (for liquid milk) which has a limited purchasing power. Those that are
buying milk today are not going to be buying much more. Cooperatives have to bring the
price down for those who cannot afford it. And only if they do it will it ensure that imports
don’t come in. The real challenge is how to bring prices down, how to reduce costs at the
village level, in areas like transportation. Every paisa now counts.

At the heart of the Indian dairy revolution stands the Indian farmer with two to five animals
who produces some of the cheapest milk in the world by feeding his animals’ mostly
agricultural waste like straw. If he expands his operations and herd and starts buying costly

47
feed he will lose his competitiveness. So how will milk production rise without raising costs?
By taking the cooperative dairy revolution to where it is still weak, the east and north-east of
the country. This will help fight poverty there, raise their own purchasing power for milk and
keep feeding the dairy sector with a rising supply of liquid milk at the globally competitive
Indian costs for another ten years. If you wish to run your business professionally and
competitively you have to first benchmark your costs and stabilized quality at a very high
level. That’s the tough part. Then you hire a brand consultant, evolve a brand strategy and get
marketing experts to run the promotions and do the selling. The key elements are an
expanding supply of cheap milk and attention to quality.

The Dairy Board's programmes and activities seek to strengthen the functioning of Dairy
Cooperatives, as producer-owned and controlled organizations. NDDB supports the
development of dairy cooperatives by providing them financial assistance and technical
expertise, ensuring a better future for India's farmers.

Over the years, brands created by cooperatives have become synonymous with quality and
value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan).
Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have
earned customer confidence.

Some of the major Dairy Cooperative Federations include:

 Andhra Pradesh Dairy Development Cooperative Federation Ltd (APDDCF)

 Bihar State Cooperative Milk Producers’ Federation Ltd (COMPFED)
 Gujarat Cooperative Milk Marketing Federation Limited (GCMMF)

48
 CHAIRMAN'S SPEECH
38TH ANNUAL GENERAL BODY MEETING HELD ON 31ST MAY 2012

GENTLEMEN,

I believe that all of us present here are blessed to be part of one of the most
ambitiously idealistic movements witnessed by human civilization-the movement
called cooperation. Cooperation is first and foremost a philosophy. It is a faith that
human beings are capable of transcending narrow self interest to work together to
achieve a common and higher goal. However, the magic of cooperation is seen when
this philosophy is translated into business and economic success.

There are three ways in which a nation may establish policies to allocate its resources.
First, following the doctrines of Adam Smith, the corporate sector may be given a free
hand in a nation's economy so that nothing but market forces determine the fate of all
socio-economic segments. All of us know, however, that when a nation's fate is left to
market forces, the economy becomes skewed in favour of the rich, leaving the poor to
the mercy of an unkind fate.

Second, a nation may entrust all its resources to the public sector, the purely socialist
approach. But all of us have witnessed the debilitating inefficiencies and lack of
accountability that are inherent in this system.

The third method in which the nation can create and distribute wealth is through
cooperation. The performance of India's milk cooperatives -- and particularly those in
Gujarat -- provides compelling evidence of the superiority of cooperation over
unadulterated capitalism, or socialism.

We believe that through cooperation we can create and deliver value to both the

49
producer and the consumer.

Cooperation avoids the inequities of unadulterated capitalism and the inefficiency and
unaccountability of the socialist system - while serving as an instrument of
development. It is not a coincidence that throughout the world, cooperation has
proven to be the first choice of those involved in the primary sectors, especially
agriculture and dairying. It is in the fitness of things as both agriculture and dairying-
involving mass production and mass consumption - provide livelihoods to millions of
common people in most countries of the world.

However, for a cooperative to deliver value, it needs to remain true to its values, be
clear in its mission and run as a highly competitive business. It should be able to
create and seize opportunities, to react decisively to events, to anticipate and act to
take advantage of future trends. To serve its members - which is the reason why
cooperatives exist - every cooperative must have obtained the maximum advantage
from procurement, processing and most importantly, marketing and branding. Every
cooperative needs to strengthen its core competencies because unlike in the private
corporate and the public sectors, they cannot be outsourced without risks. The 'Amul
Pattern' of cooperatives has been a model that has stood the test of time and
adversities with flying colors. Developed over more than a half century the Amul
approach has been successfully replicated in other states over the last quarter of a
century. This model has made an enormous difference in the lives of millions of
farmers, bolstering their livelihoods and offering steady income in regions where the
best part of agriculture is still rain fed and a gamble on the monsoons.

Amul is a matter of faith. It is faith that has proven to be an instrument of

development that has given a new dimension to the practice and discourse of
development in the country. It is a living example of the truth that farmers should
learn to be independent. They should manage their own affairs without interference.
As Nehru once said, they will make mistakes while they are learning, but these are
only stepping-stone to success as manifested in the experience of Amul.

However, despite the proven success of the Amul Model, it is being threatened by
unsolicited attention. It is common knowledge that there is a movement afoot for
creation of joint venture companies with various state cooperative federations. The
putative objective of these ventures is to offer marketing support to the so-called
'weak' federations. For this purpose, it is deemed necessary to offer a minority

50
stakeholder status to the client federations, while reserving the majority stakeholder
status for the NDDB subsidiary. For one who has been associated with and worked for
cooperatives for most of his life, it saddens me to witness this colossal blow to the
philosophy and practice of cooperation. The unkindest cut of all is that it should come
from an organization that was meant to nurture the cooperative movement in India.
You may take my word for it that while it is extremely arduous and takes years of
dedicated hard work to create a successful organization or model, it is very easy to
whimsically destroy the same.

I feel hard pressed to find any justification for the trust that the authorities are
bestowing upon the new NDDB model. The key risk in the joint venture model is that
it will dismantle the existing marketing federations all over the country. If the Joint
Venture model fails, then there will be no organization or skill left in the farmers'
organizations to fall back on for the marketing function. Thus, the experiment with
joint ventures is well poised to emasculate the healthy cooperative movement and
create dependents out of self-sufficient farmers. The weak need to be protected and
nurtured not converted into parasites.

I believe that the forgoing observations prove beyond doubt the suspect architecture
of the joint venture company concept.

The silver lining in all the recent events is the continued good showing by your
Federation. The success of the Gujarat Cooperative Milk Marketing Federation in not
only defending its market, but in taking away market share in almost all dairy
products categories from the best of the Multi National Corporations shall act as
beacon to other cooperatives in these troubled times.

I now present to you your Federation's Annual Report and Audited Accounts for the
year 2002-2003.

51
MILK PROCUREMENT

The total milk procurement by our Member Unions reached an average of 52.35 lakh
kilograms per day, a 10.6 percent increase over the 47.32 lakh Kilograms per day,
achieved in 2001-2002. Peak procurement touched a high of 67.52 lakh kilograms in a
day. This is an all time record of milk procurement.

SALES

During the year, your Federation's sales registered a growth of 17.5 percent increase
to reach Rs. 2,745.74 crores including consignment sales of Rs. 404.53 crores. In
addition your Federation coordinated Rs. 34 crores in product sales to the Defence
services. This year, Amul ice cream achieved record sales, with volume growth by 29
per cent. Sale of Amul Milk in pouches increased by seven percent in value terms.
UHT Milk has grown in volume terms by 56 percent, which is a very encouraging
market response. Amul and Sagar brand pure ghee sales in volume increased by 27
per cent over the previous year. Despite intense

Competition and a market recession, sales of Amul Butter grew by seven percent and
milk powders remained steady. The sales volume of the Amul Cheese range increased
by 15 per cent. This is particularly pleasing as it demonstrates our ability to resist
MNC competition. New products like Paneer, Mithai mate, Softy Mix, and fresh curd
demonstrated their potential to become dominant brands in the coming few years.

52
DISTRIBUTION

Amalgamation of the distribution networks carried out in the previous year continued
to yield results in terms of vast improvement in distributor infrastructure including
cold rooms, computers, bank guarantees and deep freeze storages. Our Amul Yatra
programme has already covered 80% of the distributors and 60% of the distributor
salesmen, who carry the philosophy of all that Amul stands for, to the market. Over
200 Amul Quality Circles continue to be steered month after month with a national
perspective and local focus. The annual business plan for each product is now broken
up town-by-town and distributor-by-distributor, thus making the entire planning
process thoroughly focused.

53
EXPORTS

I am pleased to inform you that this year your Federation's export turnover has grown
by 17 % in terms of volume. As you have witnessed, European Union declared heavy
subsidies during last year and as a result international prices have remained at very
low level as compared to previous year. As a result, the export turnover in value terms
has declined by 6 % in spite of good growth in volume.

We are proud to inform that our Long Life milk has been very well accepted in the
UAE and Singapore markets. In the International Market we have grown at a rate of
34% in consumer packs reflecting growing consumer faith in the Amul brand. We
have opened a warehouse in Dubai to better serve customers in the region.

TOTAL QUALITY MANAGEMENT CONDUCTED

54
 BY
AMUL COMPANY
Introduction:-
As AMUL concerned with the manufacturing of perishable products it had a bird eye on the
quality of the products produced by the company. In today’s stiff competition it tried to
strengthen its functional processes. Emerging trends of liberalization and impact of WTO has
led to focus on Total Quality Management. Realizing that unless the TQM initiatives is been
accepted by all business partners, the same would remain ineffective. As a very unique
measure Amul extended all the TQM initiatives to its business partners whether it was the
farmer producer in the village or a wholesale distributor in a metro town or its most
sophisticated production unit. A number of TQM initiatives which run successfully across the
organization are been mentioned below:-
1. Kaizen
2. Housekeeping
3. Small Group Activities
4. Hoshin Kanri(Policy Development )
Shri B.M. Vyas, Managing Director, championed this movement realized way back in 1994
that with emerging competition, doing business would become more exciting yet extremely
competitive which would require at times not only a whole set of new skills and
competencies but quick adaptability to change without much stress or turbulence. The
initiation of TQM was to work with the well known quality management initiatives which
have proven to be effective elsewhere to create a culture of transparency, openness and
leadership in the organization.

1. Kaizen:-
Employees of GCMMF have done more than 1.60 lakhs Kaizen since May, 1995 which has
impacted in bringing in a culture of continuous improvement.

2. Housekeeping:-
The housekeeping initiatives have helped keeping the offices warehouses neat, clean and
more productive, be it is the Office premises or the go downs or even Computers.
3. Small Group Activities:-

55
150 SGA’S have been carried out in cross functional groups to address the problem and pain
areas of the organization i.e. issue of sales, marketing, HR or IT. The organization has
implemented a customized ERP for seamless integration of its 40 odd sales offices from
Jammu to Port-Blair and Head Office. All its wholesale dealers are computerized and
GCMMF is moving on a B2B model for integration interface with its dealers be it for placing
order for buying its products, sharing information or for tracking logistic of dispatch/receipt
of goods.

4. Hoshin Kanri(Policy Development):-

GCMMF has also embarked upon for last 4 years, 'Hoshin Kanri' a employment initiative
where more than 100 Officers/Heads participate twice in a year to review its business
goals/processes and implement new initiatives. These are further cascaded to the wholesale
dealers in different territories in a two day exercise called Vision Mission Strategy (VMS)
Workshop. These initiatives have resulted common understanding of goals, eliminating
communication barrier.

EFFECTIVENESS:-
The initiative of TQM six years back has made the organization efficient whether it be in
launch of brands, or in implementing ERP's or expanding its distribution network. More
striking feature of GCMMF's TQM experience is the integration of its business linkages at
the village level to the forward linkage through its sales offices/wholesale dealers in the
market.

56
 NATURE AND SCOPE OF MARKETING RESEARCH

The whole approach of marketing pivots around the tenet of meeting the retailers and
consumers wants. It is essential to understand what they want, how they perceives the
product (service), what exactly (ideally) does he/she wants to derive out of the
product (service), how does they make the brand choice decision, what are the sources
of information and influence processes? 

In order to take the decisions further any marketer would constantly monitor such
information and obtain a continuous feedback of the trends in the market. As such,
marketing research is an effective tool for measuring the consumers’ aspirations, trade
channel behaviour, competitive actions etc. It provides a linkage between the
corporate environment and the marketing organization. Marketing research, thus, may
be viewed as an important tool used as an aid for the tackling problems in marketing. 

57
MARKETING RESEARCH – DEFINITION

Marketing research is defined as the objective and formal process of systematically

obtaining, analyzing and interpreting data for actionable decision in marketing.
This decision lays stress on two aspects, namely, objectivity and systematic process in
the collection and analysis of data. In fact, marketing research should not be allowed
to be influenced by personal views and considerations. 

COMMON USES OF RESEARCH IN MARKETING DECISION

MAKING

The following paragraph highlights some of the marketing decision areas where
marketing research is commonly used.

 Sales management

 Market Boundary

 Buyer Concentration

 Demand Projections and Supply

 Consumer Behaviour Analysis

 New Product Launch and Product Positioning

 Research in Sales Methods and Policies

 Advertising and Sales Promotion Research

 Marketing Audit of Company Performance

 Environment Trends

58
 RESEARCH METHODOLOGY

In simple terms methodology can be defined as, it is used to give a clear cut idea on what the
researcher is carrying out his or her research. In order to plan in a right point of time and to
advance the research work methodology makes the right platform to the researcher to
mapping out the research work in relevance to make solid plans. More over methodology
guides the researcher to involve and to be active in his or her particular field of enquiry. Most
of the situations the aim of the research and the research topic won't be same at all time it
varies from its objectives and flow of the research but by adopting a suitable methodology
this can be achieved. Right from selecting the topic.

Research methodology drives the researcher in the right track. The entire research plan is
based on the concept of right methodology. More over through methodology the external!
Environment constitutes the research by giving a depth idea on setting the right research
objective, followed by literature point of view, based on that chosen analysis through
interviews or questionnaires findings will be obtained and finally concluded message by this
research.

59
 OBJECTIVE OF THE PROJECT
The topic of my project is “A study on marketing strategy of Amul, in milk
Market in NCR Region” in Delhi & Ghaziabad (Sahibabad). This includes the
following objectives to find out:-

 Packaged milk market in Delhi & Ghaziabad (Sahibabad) against loose milk.

 Brands available in the market and their average daily sales.

 The most effective media of promotion.

 Highest and lowest sale of particular Amul product and area of sale.

 Factors influencing consumer buying behavior.

 Expectations of retailers from Amul.

 Response of the retailers to Amul as well comparative brands.

 Complaints and suggestions of retailers for a winning brand.

 Ascertain the awareness level of Amul market and its distinct image.

60
 RESEARCH DESIGN USED IN PROJECT

In this research report of a study on marketing strategy of Amul, in milk market in NCR
region. I used descriptive research design.

Descriptive research studies are those studies which are concerned with describing the
characteristics of a particular individual, or of a group, studies concerned with specific
predictions, with narrations of the fact and characteristics concerning individual, group or
situations are examples of descriptive research studies.

SAMPLING DESIGN
In this research report a study on marketing strategy of Amul, in milk market in NCR region.
I use non probability sampling i.e.; Convenience sampling. I choose my sample according to
my convenience and which are relevant to my research project.

CONVENIENCE SAMPLING

Convenience sampling refers to the non probability process by which a scientist gathers
statistical data from the population. This form of selection is done based on the ease of
gaining the statistical data. Rather than gathering a more accurate array of data from the
population, the researcher simply gathers data from people nearby. A researcher might go to a
nearby mall, or street comer to gather data. This form of data collection works for some areas
of study, but researcher bias may result in inaccurate

61
SAMPLE SIZE-
100 Customer & 100 Retailer from National Capital Region (NCR).

METHODS OF DATA COLLECTION

The data was collected both with the help of primary as well as secondary
sources.

PRIMARY DATA

For primary data, I proceeded with the drafting of the questionnaire for consumers. I choice
open end and multiple question in my project report and it was handed personally by me to
the respondents to be analyzed, questionnaire was of multiple choices and the pattern of
questions was as simple as possible. With every question, multiple choices were given and
respondents were asked to select one of them. The questionnaire technique was structured
and not disguised as the questions followed one pattern and reason behind the questionnaire
was stated properly. All the questions were directly related to the subject.

SECONDARY DATA
Secondary data was also collected personally by me, which the company has furnished for
the general public. The secondary data was gathered with the help of various magazines,
newspapers, journals, brochures and also through the internet.

62
 DATA ANALYSIS & INTERPRETATION

QUESTIONNAIRE FOR CONSUMERS

Sample Size: 100 consumers
1. Which Flavoured milk do you buy?
A. Branded : 60
B. Loose : 26
C. Both : 8

BOTH

8%

26% 1
LOOSE
2
3
66%
BRANDED

BRAND NO. OF CONSUMERS

AMUL KOOL 150
GAGAN 180

63
INTERPRETATION
 The area covered Ghaziabad is in the vicinity of New Delhi, the capital of India;
branded things and even fresh milk is in great demand among literate consumers.
 People are conscious of hygienic products and people of Rs. 10000+ income group
have a general inclination for branded packaged Flavoured milk because it is believed
that loose milk is generally not safe to consume.
 We found that 66% of our respondents use branded milk and 26% people use loose
milk.
 Moreover 8% of respondents have indicated that they use both branded and loose
milk.

64
 2. Do you know that Amul has launched its flavoured milk in bottle &
tetra pack?
Yes : 65
No : 35

NO, 35%
1
2
YES, 65%

INTERPRETATION

 We found that people are aware of Amul’s flavoured milk and Amul has good
reputation among the consumers. GCMMF Ltd., is considered to be one of the best
companies in the dairy products category in FMCG sector.
 When GCMMF Ltd declared that it is going to launch flavoured milk in Delhi the
consumers accepted it in leaps and bound. People perceive Amul as the triumph of
indigenous technology.
 People perceive Amul’s dairy product as Nature’s perfect food for the health of their
family.

65
 3. How do you come to know about Amul Kool?
A. T.V. : 25
B. Banners : 23
C. Radio : 5
D. Newspaper : 15
E. Friends : 23
F. P.O.P. : 9

P.O.P, 9% T.V.ADD.
Friends, 25%
23%

NEWSPA Radio, 5% BANNER

PER, 15% S 23%

INTERPRETATION
 It is very important for a company to know that medium of promotion is most
effective on the consumers and which is reachable to the consumers. Regarding this
15% people says that they came to know about Amul Kool through newspaper. Those
who got the information from Banners 23%, radio 5%, t.v.25% , friends 23%, pop 9%
.Advertisement has emerged as the best way to reach way to reach into the customer
mind. Means in today era advertisement plays important role in building image. The
collected by us is also says that advertisement is big factor for spreading the
awareness of consumers. The outcome is that a good spending in advertisement
generally pays in the long run.

4. What first come to your mind about Amul Kool?

66
 A good brand.
 Good in taste.
 A leading brand in the Indian market.
 Reliability.
 Purity.
 Trustworthiness.
 Value for money.
 Good for health and health conscious people.
 Powder based milk.
 Real taste and mazaa.
 It is an old time tested brand on which one can rely.
 Must be very good because its other products are excellent and AMUL has
its own identity.

67
 5. What all flavours of Amul Kool do you know?

Elachi : 92
Rose : 29
Other : 9

OTHER

9%

29% 1
2
3
62%
ROSE
ELACHI

INTERPRETATION
 Throughout the survey it was found that people who consume flavoured milk are
more aware of flavours. 62 people out of 100 or 62% of respondents were aware of
elachi and 29 people or 29% of respondents were aware of rose.

 9 respondents (9%) said that are using other flavours. Many consumers also
purchased various kind of flavours according to the requirements.

68
 6. Please give the 1st rank to the following brand as per your choice?
A. Amul : 41 , B. Amrit Food : 20
c. Gopal Ji : 17 , D. Other : 13 E. Nestle: 9

Other 13%
1
NESTLE
AMUL 41% 2
9%
3
4
GOPALJI
AMRIT FOOD 5
17%
20%

INTERPRETATION
Only rank cannot help to winning the market. While in winning the market a Company needs
to have good quality as well as availability and the right price supported by proper
advertisement support and since Amul is fulfilling these requirements it is the best in dairy
products since 1946. That’s why after launch of flavoured milk in the short period of time
Amul is rising progressively to become the market leader in the area covered those who tried
Amul Kool once they became the permanent customer of Amul Kool. 41% consumer says
that Amul Kool is number 1 and there is good amount who says that Amul Kool is number2
brand {140}. But till the survey Amrit Food has the percentage 20% and Nestle is at third
place.

7. Please tell if you have switched from one brand to another?

From Switch over No. of Reason
to respondents

69
 Gagan Amul 60 Gagan quality was declining
so tried Amul & liked Amul
Kool has good taste.

Amul Gagan 40 Easy availability.

INTERPRETATION
 Flavoured milk is daily consumable commodity and considered to be a nutritious diet.
So whenever customer found any unacceptable degradation in quality as well as
adulteration they switch over to another brand.

 An interesting point which we found during our survey is that now people are not
stable on any particular brand. If they do not find good quality in there flavoured milk
they can for another brand where they find good quality and which is easily available.

 Because of it quite a no. of consumers of brands such as Gagan and Local flavoured
milk has switched over to Amul Kool because Amul is providing good quality, easily
available, good taste purity than their rivals. Moreover Amul does not use synthetic
milk as well as harmful chemicals in its flavoured milk.

8. What do you look while buying flavoured milk? (I, II, III, IV, V )
What factors do you consider before purchasing your brand?
Availability : 32
Quality : 26

70
 Taste : 19
Price : 12
Purity : 11

PURITY
AVAILIBILITY
11%
32% 1
PRICE 12%
2
3
TASTE 4
19%
5
26%
QUALITY

INTERPRETATION
We found that in the success of flavoured milk in market, availability and quality plays an
important role. Other factors like taste, price, purity are although less significant. In the study
32% of the respondents said that for them availability is the most important factor. They go to
the confectionary store or dairy shop of their colony and if the product is not available how
can they buy. 26% of the respondents said that for them, quality is the main concern. Those
who preferred taste, price and purity were 19%, 12%, 11% respectively. Consumers go the
confectionery shop which is nearest to their doorsteps so they generally compromise with that
one.

9. Who influences your buying decision?

A. Family : 40
B. Brand Name : 20
C. Advertisement : 20
D. Retailer : 10

71
 E. Others : 10

Others, 10%
1
Retailers,
10% Family, 40% 2
3
Advertisement 4
, 20%
Brand Name, 5
20%

INTERPRETATION
When we ask to the consumer about their buying decision those who said that their decision
of purchase for a particular brand of milk is influenced by members in the family were 40%
and 20% said that they are influenced by brand name.
Similarly 20% of our respondents said they were motivated by advertisement and the claims
made by companies.
Retailers influenced 10% and others factors 10%.
Regarding family we found that usually mothers and wives usually decide which brand to
purchase according to their affinity for a particular taste.

10. Where do you buy flavored

Dairy milk?
A. Confectionary Shop,: 34
B. Home delivery 18%: 28 Confection 1
ery, 34%
C. Booths : 20 2
Booths,
D. Dairy shops : 18 3
20%
Home 4
Delivery,
28%72
INTERPRETATION
Confectionary stores usually keep a no. of other daily use eatables and commodities and
consumers think it to be very convenient to purchase their daily bread as well as their brand
of flavored milk and 34% of our respondents said that they buy flavoured milk from their
colony or town confectionary stores.

In the urban areas of Ghaziabad a no. of vendors give home delivery of flavoured milk and
other products therefore the people who didn’t have time usually preferred home delivery.

73
11. Whether Amul Kool is available whenever you go to your shop?
Yes □ No □
Yes : 76
Can’t say : 24

Cant say,
24%

1
2
Yes, 76%

INTERPRETATION
 That part we tried to know about availability of Amul Kool and there was surprising
answer. Amul kool has covered the area in the short span of 10-12 months.
 78%people say that they find the Amul Kool available from where purchases the milk
which means Amul distribution is good.
 But much work is yet to be done to penetrate even deeper into the market and making
new customers.
The quantity of Amul kool consumed generally depended on the size of a family and
the frequency of intake and the various types of usage. Students who lived in hostels
and private flats used Amul Kool regularly for energy.

74
 13. When do you buy Amul Kool?
Afternoon : 45
Evening : 37
Both : 18

Both
18%
Afternoon 1
45% 2
3
Evening
37%

INTERPRETATION
We found that 45% of our respondents went to purchase Amul Kool in afternoon and 37%
people went in evening. 18% went both in afternoon and evening. We found that most people
preferred going to their milk or confectionary shop in the afternoon for drinking kool and also
the home delivery vendors mostly gave their services in the afternoon.

75
 QUESTIONNAIRE FOR RETAILERS
Sample Size: 200 Retailers
1. For how long you are in this business?
0 – 5 yrs : 11 Retailers
6 – 10 yrs : 30 Retailers
11 – 15 yrs : 35 Retailers
16 – 20 yrs : 17 Retailers
21 and more : 7 Retailers

21yrs&
more, 7% 1 - 5 yrs,
11% 1
16-20yrs,
2
17%
6 - 10 yrs, 3
30% 4
11-15 yrs,
5
35%

INTERPRETATION
 35% of
the retailers are doing business from 11 to 15 years. And they formed
the highest group of this category.
 30% of
the retailers are doing business from 6 to 10 years.
 17 %
of the retailers are doing business from 16 – 20 years.
 11% of
the retailers are doing business from 0 – 5 years.
 7% of
the retailers are doing business from 21 years and more

76
 2. Which brands you are selling?
Amul  Mother Dairy 
Paras  Gopaljee 
Others …………………
Amul Kool Yes – 42 No-- 48

YES
42% 1
NO 2
58%

INTERPRETATION
 We found that 47% of the retailers kept Amul Kool.
1. If selling Amul, since how long you are selling Amul Kool?
 Almost all the retailers who kept Amul Kool were keeping it since its launch. They
were satisfied with the growing demand of Amul Kool and said it showed a fair
retention power among consumers. Quite a good no. of consumers tried Amul Kool
and became loyal to Amul Kool.

77
 4. Give average daily sales and distribution (1.Very good 2.Good
3.Fair) of these brands?
Amul……Amrit food …… Gopal ji …………Nestle …….

Other 13%
1
NESTLE
AMUL 41% 2
 9%
3
 4
GOPALJI
AMRIT FOOD 5
17%
20%

INTERPRETATION
 From the survey of our respondents we found that Amul
 Had the largest sale at retailers visited by us. It stood at the staggering figure
of 41% of total sales.
 Second place was occupied by Amrit food and stood at 20% market share.
 Gopal ji stood at 17%.
 Nestle at 9% only.
 Other brands occupied 13% of the sales.
 Regarding distribution we came to know that Amrit food distributors were
giving the best service.

78
 5. Does consumer approach you to keep Amul Kool?
Yes  No 
Yes: 24
No : 76

Yes
24%

1
2

No
76%

INTERPRETATION
 Most of the retailers didn’t give satisfactory answer to this question. Only 100
retailers said consumers approach them to keep Amul Kool. But due to low demand
and unavailability of refrigerators they are unable to keep Amul Kool.

79
6. Are consumers switching over to Amul Kool?
Yes  No 
Yes: 47 No: 53

Yes
47% 1
No 2
53%

INTERPRETATION
 47 Retailers (47%) were of the opinion that consumers were switching over to Amul
Kool. They were satisfied with the growing demand of Amul Kool and said it showed
a fair retention power among consumers. Quite a good no. of consumers tried Amul
and became loyal to Amul.

80
 7. How is the response from the consumer? Give scaling for Amul Kool.
Excellent to Poor
Note: only 90 retailers gave answer to this question.
Excellent: 05 Good: 19 Good: 27
Fair: 25 Poor: 14

Excellent
Poor 6%
15% 1
V.Good 2
21%
3
Fair
27% 4
Good
5
31%

INTERPRETATION
 6% or 5 retailers said that response from consumer was excellent.
 21% or 19 retailers said that response from consumer was v. good.
 31% or 27 retailers said that response was good.
 Fair and poor ranking stood at 27% and 15% respectively.

81
 9. Which brand do you usually push to the consumer in case he does
not demand any specific brand and why?
A. Brand which has highest margin : 41
B. Old Stock : 11
C. Not specific : 48

A. highest
C.Not
margin 1
specific
41% 2
48%
3
B.Old
stock 11%

INTERPRETATION
 41% of the retailers said that they push the brand which has the highest margin.
Retailers are chiefly considered with margin and goods and commodities which can
be sold.
 11% of the retailers said that if any customer doesn’t give any specific choice of
brand then they give the brand which is of the old stock.
 48% of the retailers said that this is not specific and they give any brand.

10. If not selling Amul Kool, then will you like to keep them?

82
 Yes  : 46
No  : 54

Yes
46% yes
No no
54%

INTERPRETATION
 Thus we see that 46% of the shopkeeper who were keeping not keeping Amul Kool
said they are interested in keeping Amul Kool.
 54% of the retailers said they are interested because of poor demand and of non-
availability of refrigerators and of the risk involved in Amul Kool business because
unsold stock is not returnable.

83
 11. What all you look while keeping Amul Kool on your shop please
rank? (I,II,III,IV,V)
A. Margin : 68
B. Service : 40
C. Behaviour of sales man : 08
D. Brand Name : 06
E. Trade scheme : 06
F. Consumer Demand : 72

Margin
36% 34% Service
Sales Man
Brand Name
3% Trade Scheme
20% Consumer Demand
3%
4%

INTERPRETATION
 Thus one can see that the main thing which the shopkeepers are concerned is margin.
34% of the retailers said that for them margin is the main concern and they look
margin before keeping any brand in their shop.

MARKETING STRATEGY OF AMUL

84
The Marketing strategy of Amul covers various aspects of the business right
from segmentation and targeting to the overall mission and vision of the company and the
various parameters which the company executes to become the top brand that it has in the
market. So what is the marketing strategy of Amul? Let us discuss

Segmentation, targeting, positioning in the Marketing strategy of

Amul
The segmentation of Amul is the mass population and in general, you will find people of all
different age groups and demography enjoying Amul products. This is because Amul is not
only present in Ice cream, but also in Milk, Butter, Cheese and other such products.

As it has a very deep product portfolio, it does not differentiate in its customers but uses

a mass marketing principle. And till date, this principle has worked very well for the
marketing strategy of Amul. Similarly, the target audience are the regular middle class
people.

This is because higher end customers do have a lot of high end products as an alternative in
ice cream. However, for other products like Butter and cheese, both high end and low end
customers are the target. In terms of positioning, Amul has top of the mind positioning
because it is the first brand which comes in mind when talking of Ice cream, milk, cheese,
butter or any other milk based products.

Mission of Amul

85
“We the motivated and dedicated workforce at amul are committed to produce wholesome
and safe foods of excellent quality to remain market leader through development of quality
management system, state of art technology, innovation and eco-friendly operations to
achieve delightment of customers and milk producers”.

Vision of Amul – Amul has a vision to provide more and more satisfaction to the
farmers, employees and distributors.

Tagline of Amul
The taste of India.

Competitive advantage in the Marketing strategy of Amul 

86
There are two major competitive advantages of Amul over other brands. First and foremost is
the supply chain. Because of the large numbers of dairy suppliers, Amul has a tremendous
strength and reliability in its supply chain. Hence it is able to produce such high volumes. The
second competitive advantage is the wide product portfolio due to which it can run Amul
shoppe’s and also have its products present in retail. The product portfolio is such that
products like Butter and Ice cream are cash cows for the company.

BCG Matrix in the Marketing strategy of Amul

When we plot the BCG matrix, Amul has certain products which are stars whereas others are
cash cows. And in fact, Amul chocolates are question marks because they have very low
market share in a growing market. Amul ice cream and Amul butter can clearly be said to be
a cash cow because they have very high market share and the market in itself is growing with
the increase in population.

On the other hand, Dairy products like Milk, buttermilk, cheese, lassi, amul kool etc have a
lot of direct and indirect competition in their niche. However, when compared with the same
type of product, then Amul has a high market share. Thus, these products are stars for Amul.

Distribution strategy in the Marketing strategy of Amul

Like any FMCG company, Amul concentrates on breaking the bulk. It supplies in huge
amounts to its C&F, who is required to have the right arrangements to store Amul products in
bulk. This C&F then transfers the products to distributors who in turn give it to retailers.
Furthermore, Amul has a direct sale team too which sells to modern retail. Besides this, the
company has exclusive Amul stores which sell all products of Amul brand. Thus, in the
marketing strategy

Brand equity in the Marketing strategy of Amul

87
Because of the excellent products, the top of the mind positioning, the fantastic distribution
and supply chain channels and finally the point of purchase branding and advertising of the
Amul girl, Amul finds itself in a very strong position where its brand equity is concerned.
Amul brand is worth $3.2 billion as per the 2013 brand equity report. Furthermore, most
analysts say that Amul would have touched the $4 billion mark, but the dropping value of the
rupee is what caused the difference.

Competitive analysis in the Marketing strategy of Amul

Amul has some good competitors who have entered the market in the last decade and
growing strong steadily. Most of these ice creams entered regionally but then held on to the
regional market share. Thus, even though individually these brands might not be a worthy
adversary, combined and with their total net aggregate, all of them together are giving a very
tough competition to Amul.

Some of these competitors are Kwality walls, Vadilal, Havmore, Dinshaws, Arun Ice
cream, Baskin Robbins, London dairy and others. Many of these ice cream products have
their own niche or geographic targets. Arun ice cream is strong in the south whereas havmor
and Vadilal are strong in the west.

Besides these organized players, there are many unorganised local players who also give
competition to Amul by having their own outlets and their own variants of ice cream.
However, the competition in Butter and Cheese and other dairy products is far lesser.

Market analysis in the Marketing strategy of Amul 

88
The FMCG market is highly competitive in nature and is known to have a combination of
organized players as well as unorganized players. Similarly, in FMCG, direct competition is
equally important as indirect competition. For example – During winters, ice cream and cold
milk products will not sell, whereas butter and cheese will sell equally well.

But on the other hand, during summers the demand of ice cream shoots up so much so that
companies are not able to meet demands. Thus, when we analyse the market of Amul, in
some cases Amul is the clear market leader, whereas in other products it is a competitor in the
market.

Customer analysis in the Marketing strategy of Amul

The typical customers of Amul belong to the Sec B and Sec C segment wherein they are
either middle class or lower class. Amul in general uses mass marketing and therefore it
targets these 2 classes majorly. The high end customers are more likely to prefer a Naturals, a
Baskin robbins, or any other such brand which meets their taste and status.

Marketing mix of Amul

89
Amul is definitely an “Amoolya” brand. Amoolya in Sanskrit means something which
is invaluable or priceless. With a presence in almost every product which can be made
by milk, Amul has won over hearts along with market share to become a highly valued
brand with an Indian origin. Amul was formed because of a revolt of dairy farmers. And
today, Amul is a brand against which companies want to compete and come on top but
the same is not being allowed by the smart minds in Amul. The reason Amul is such
a strong brand is because of the marketing mix of Amul. Here is an in depth analysis of
the Marketing mix of Amul

Product in the marketing mix of Amul

90
Amul has a very very strong product portfolio. Amul product portfolio is comprised mainly
of Dairy products. Amul butter, Amul cheese and Amul ice cream are cash cows for Amul as
they have the major market share in their product category. Amul ice cream is amongst the
top 10 ice cream brands of India.

Amul milk, Amul Paneer and Amul Dahi consumption is on the rise. In fact Amul milk has
26% of market share in the packaged milk segment. The only disappointing performance is
seen in Amul Chocolates which are a burden for Amul and lot of push is required for the
sales of the same. This is because the chocolate market has established players
like Parle, Dairy milk and others.

The Amul family tree has the following brands –  Amul Milk, Amul bread spreads, Amul
Cheese, Amul Milk, Amul kool and its variants, Amul pro, Amul ice cream, Amul Paneer,
Amul Dahi, Amul Ghee, Amul Milk powders, Amul Nutramul, Amul mithai range,
Amul mithai mate, Amul chocolates, Amul butter milk. Thus the product portfolio of Amul
considering its dairy origins is astounding. Amul has various competitors based on different
products. In ice cream it is Vadilal, Dinshaws and Havmor. In butter and milk there is mother
dairy, Britannia and others. However, no competitor has such a vast dairy based product
portfolio as Amul. This is the major reason that Amul has a sustainable competitive
advantage over its competitors.

Price in the marketing mix of Amul

91
 Amul has a strategy of low cost pricing. Some may call it penetrative pricing. But
penetrative pricing strategy is used when the market has a high level of competition and a
player wants to establish itself in the market by giving low prices. However, in the case of
Amul, when Amul started, there were no national players and the dairy market was
unorganized. During the introduction stage itself, Amul had a vision to provide their products
to end customers at the best affordable rates. And the same vision is in place even today.

Today also, you will find that Amul butter, milk and cheese are available at affordable prices
keeping in mind the end customers. You may call these products costly, but the cost has
nothing to do with Amul’s strategy. Remember that transportation costs as well as storage
and distribution costs are very high in FMCG. Thus, as the cost of transportation, storage and
distribution has increased over the years, so has the cost of Amul products gone up. But
considering their value for the average India consumer, these products are still priced at an
affordable rate.

Place in the marketing mix of Amul

92
 Amul has a massive distribution network because its ice creams, milk, butter and cheese is
found practically everywhere. As it is a FMCG product, Amul follows the methodology of
breaking the bulk. The initial factory output is in bulk. Later on this bulk becomes smaller
and smaller and finally one individual slab of butter or scoop of ice cream is sold at the retail
place.

There are two different channels through which Distribution happens in Amul. One is the
procurement channel which is responsible for collection of Milk through dairy co operatives.
The other is the distribution channel which is responsible for distributing the finalized
product to the end customers.

In the procurement channel, the milk is individually delivered from farmers to the co
operatives. The co operatives then collect all this milk and send the bulk to the manufacturing
facility. At the manufacturing facility, the milk is used to manufacture the finalised products.

In the distribution channel, there are carrying and forwarding agents, distributors, dealers and
retailers involved. There are also Amul shoppe’s which sell all products in the Amul product
portfolio. The distribution is as follows.

Amul >> Carrying and forwarding agent >> Distributor >> Dealer / Retailer / Amul Shoppe
>> Customer

Amul >> Modern retail

Thus there is a lot of transportation involved for all of Amul’s products. However, the
distribution channel of Amul ensures that the products reach every nook and corner of India.

Promotions in the marketing mix of Amul

93
Amul is responsible for one of the most unique and longest running outdoor campaign as well
as one of the most known outdoor advertising characters –  The Amul girl. We would like to
take this opportunity to specially thank Mr Eustace fernandes, the creative brain behind the
sweet girl. But we should know by now that the Amul girl is hardly sweet or cute. She is
known to be the most naughty advertising girl ever. Amul hoardings mainly feature the
current news and are used to take a tongue in cheek viewpoint at current happenings.
However, each advertisement hits the nail on the head.

The promotions of Amul are mainly for butter but for all the other products there is hardly
any promotions. During the launch of products, Amul is known to go ATL and advertise
milk, butter etc. The Smita Patil ad wherein Smita patil is shown as a village milk collector is
one of the most famous ads for Amul. But overall, the main advertisement is BTL through
outdoor, trade promotions, discount schemes and sales promotions.

The major reason for Amul’s absence in hardcore advertising is that Amul does not want to
give away margins in advertising its products. As per Amul, their maximum budget for
advertising is 1% of the turnover. Above and beyond that will directly affect the cost of the
product. And the major reason for Amuls strong presence in the market is its excellent quality
combined with the affordable price. Thus, overall promotions will always be low for
Amul except for the outdoor advertising of Amul butter.

This concludes the marketing mix of Amul. The bottom line is that we love that an Indian
brand like Amul has reached such staggering heights and that we are a part of the time when
such a white revolution took place.

SWOT ANALYSIS

94
Strength

Amul has well built image of excellence and innovation supported of triumph of Indian milk
product industry.

 It has well logistic and channel network.

 Well trained and educated marketing staff.

 Quality of products is good.

 It ensures that only cow and buffalo milk is used by collecting milk from milk
cooperative of Gujarat

 Demand is absolutely optimistic.

 Abundant availability of raw material.

WEAKNESS

 Retailers say they are not satisfied by trade schemes.

 Distributors do not give equal importance to all retailers and confectionary stores.
They neglect some retailers.

 All is not well with distribution in Ghaziabad.

 With so many companies in this industry, competition is becoming

 Rougher day by day. But then competition has to be faced as a round reality. The
market is large enough for many to carve out their niche.

 Distribution channel of Amul is as string as Mother dairy have.

OPPORTUNITIES

“Failure is never final, and success never ending.” Dr. Kurien bears out this statement

95
Perfectly. He entered the industry when there ere only threats. He met failure head-on, and
Now he clearly is an example of ‘never ending successes! If dairy entrepreneurs are looking
for opportunities in India, the following areas must be tapped:

Value Addition: There is a phenomenal scope for innovations in product development,

packaging and presentation. Steps can be taken to introduce milk with addition of essential
vitamins for health conscious people. By reducing the price of products Amul can reach
new customers. Amul milk quality is better than other brands.

  

THREATS

Entry of MNC’s is a serious threat to Amul and other Indian companies. Incoming of
local brands, the unorganized are also a threat to Amul. The Indian industry of milk
and its products, following its deli censing, has been attracting a large numbers of
entrepreneurs. Their success depends on factors such as efficient yet economical
procurement network, hygienic and cost-effective processing facilities and
innovativeness in the market place. All the needs to be done are to innovate, convert
products into commercially exploitable ideas. All the time keep reminding yourself:
Benjamin Franklin discovered electricity, but it was the man who invented the meter
that really made the money!

FINDINGS

 It is found in the survey that customer are influencing thought word of mouth.

96
 41% of the retailers said that they push the brand which has the highest margin.
Retailers are chiefly considered with margin and goods and commodities which can
be sold.
 11% of the retailers said that if any customer doesn’t give any specific choice of
brand then they give the brand which is of the old stock.
 48% of the retailers said that this is not specific and they give any brand.
 Thus we see that 46% of the shopkeeper who were keeping not keeping Amul Kool
said they are interested in keeping Amul Kool.
 54% of the retailers said they are interested because of poor demand and of non-
availability of refrigerators and of the risk involved in Amul Kool business because
unsold stock is not returnable.
 It is the finding in the survey that females are the main decision maker for the milk.
As per the data 65% Female and 35% of Males makes purchase decision.

LIMITATIONS

97
 Every research is conducted under some boundations and this research is not an
exception. Limitations of this project are-

 The sample size of 500 consumers are too small to project the opinion of consumer
regarding a particular brand and also degree of success of a particular brand.

 There might have been tendencies among the respondents to amplify or filter their
responses under the testing conditions.

 Since the study involved sampling method, ‘Drop in’ or ‘Go through’ error might
have crept in.

 Since the results have been drawn on the basis of the information provided by the
respondents, chances of error might have crept in.

98
 SUGGESTIONS AND RECOMMENDATIONS

Amul as a brand has very “Brand Equity” and is a common name in India’s every household.
Through its vast product range and variety, it has created a strong presence in dairy segment.
Although it is monopoly in butter segment but in chocolate field it needs a lot of measures to
take to ensure the high performance.

1: Separate Butter Division

There are strong competitor like Parag in the market so Amul should also have separate
division for butter. They should watch their competitors properly and adopt strategies
accordingly.

2: Small Wholesale Division in Interior Region

A small wholesale division should be established in interior region where sales are low and
regular visit bears high transportation cost. In such area either retailers purchase from other
area or don’t keep butter to sell.

3: Market Survey at Regular Interval by Representatives

Company’s representatives must survey the market themselves at regular interval in order to
know the opportunities in the market and to solve the retailer’s problems.

4: Provision of Target Even To Salesman

In order to increase the sale, salesman should also be given target to achieve and paid them as
quick as possible in form of cash not cheque.

5: Provision of Fridge At Easy Installment

There are many outlets where sales are high but they don’t have fridge.

6: Develop New Market

Amul should develop new market for butter like local general store,and confectionary.

99
7: Customer Care Division
A customer care division should be there to tackle the wholesalers as well as retailers
problems.

8: Strong Delivery Service And Other Match

Supply service should be strong enough to meet the requirement of retailers. Whether the
order is in bulk or in less volume it should effort to fulfill the order at right time.

9: Attractive Packaging
In fashion era, packaging is extremely essential because it plays a crucial role to attract the
consumer. However quality is also essential.

10: Regular Visit

It does not matter whether any retailer is purchasing the products at every visit or not, but
company should visit them at regular interval.

11: Quick Damage Clearance and Replacement

12: Strong Product and Price Range

13: Attractive Margin to Retailers

14: Sales Personnel should be instructed to educate the customer about the service.

15: Customer should be out called from time to time and aware him/her about the
services and facilities.

100
 BIBLIOGRAPHY

NEWSPAPER:

 Economic Times

 Business Standard

 The Financial Express

BOOKS:

 Majumdar,Ramanuj` :Marketing Research”:Sahitya Bhawan Publication,

(2008)

 Gupta and Pal; “Consumer Behaviour”.Pargati Prakashan,(2007)

 Philip Kotler; “Marketing Management”:Prakash Prakashan,(2009)

WEBSITES:

 www.amul.com

 www.parasdairy.com

 www.motherdairy.com

 www.economictimes.com

 www.sify.com/finance

 www.business-standard.com

 www.rediff.com/money

 www.ask.com

 www.google.com

ANNEXURE

101
Name________________________________
Address______________________________
Age_________________________________

1. Numbers of brands of Amul you have

 3
 6
 9
 10 or more

2. Which Amul milk is most popular among the customers?

 Gold
 Shakti
 Tonned
 Double Tonned

3. Why people prefer that particular milk?

Because of its---
 Components
 Rate
 Taste

4. Which type of Amul customers do you have?

 Permanent
 Temporary

5. Which other brands do you have?

________________________________________________________________
6. Numbers of brands of Amul you have

102
 3
 6
 9
 10 or more

7. Which Amul milk is most popular among the customers?

 Gold
 Shakti
 Tonned
 Double Tonned

8. Why people prefer that particular milk?

Because of its---
 Components
 Rate
 Taste

9. Which type of Amul customers do you have?

 Permanent
 Temporary

10. Which other brands do you have?

________________________________________________________________

103