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Submitted in partial fulfillment of the requirements for the award of the degree of Bachelor of Business Administration (2008-2011)
Under The Guidance Of Ms Shweta Rastogi Faculty, MAIMS Submitted By: Swati Taneja Roll No : 1256111708 BBA III SEM 2ND SHIFT
Maharaja Agrasen Institute Of Management Studies
Affiliated To Guru Gobind Singh Indraprastha University, Delhi PSP Area, Plot No. 1 Sector 22, Rohini Delhi 110086
This is to certify that I have completed the project titled “Amul Ltd.” under the guidance of “Mrs. Shweta Rastogi” in partial fulfillment of the requirement for the award of the degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of work and I have not submitted it earlier elsewhere.
Maharaja Agrasen Institute Of Management Studies
PSP Area, Plot No.1, Sector 22, Rohini, Delhi-110086
This is to certify that the project titled “AMUL Ltd” is an academic work done by “Swati Taneja” submitted in the partial fulfillment of the requirement for the award of the degree of Bachelor Of Business Administration from Maharaja Agrasen Institute Of Management Studies, Delhi, under my guidance and direction. To the best of my knowledge and belief the data and information presented by her in the project has not been submitted earlier.
Name of the Faculty Guide: Ms. Shweta Rastogi
I express my heartfelt gratitude and privilege to acknowledge our esteemed Director Mr. N.K.Kakkar and my guide Mrs. Shweta Rastogi without whom this project could have not been completed . I also express my deepest gratitude towards the teaching staff and the fellow member who helped me to finish the task successfully.
possessing about 70% of the milk cattle. to the extent of Revolution. iv . The primary focus will be on the marketing strategy and competitor analysis. over the years.EXECUTIVE SUMMARY In India dairy is considered as one of the main instruments for social and economic development. and too small. In the project we examine how the company is geared up to meet the challenge. Amul has become a symbol of farmers’ liberation and self-reliance.As it moves into newer products. evolution in the customer profiles. and.The project aims to study the evolution of Indian dairy industry and that of Amul. so dairy was not considered a viable business option. Small farmers. The entry of MNCs. But the Operation Flood changed the scenario. which has made Amul the most recalled brand. and a changing Market calls for a massive shift in the strategy. Amul is perusing a different advertising strategy. dominate milk production. Their income was undependable.
1 4.1 5.4 2.2 • Student undertaking Certificate Acknowledgement Executive summary Introduction The birth of Amul Objective of study Company profile About the company Amul success story Operation flood Impact of “Amul model” Achievement of Amul movement list of Amul products Product description Amul.6 2.5 2.1 Chapter-4 4.2 Chapter-2 2.3 2.7 2.8 2.1 2.the logistic and distribution GCMMF.9 2.2 Chapter-5 5.mission statement Achievement of GCMMF Research methodology Research methodology of the study Product and services Core marketing concepts The 4 P’s of marketing Swot Analysis Swot Analysis of Dairy Industry Conclusion Bibliography PAGE NO i ii iii iv (1-3) 1 3 (4-20) 4 7 8 9 11 13 18 19 19 20 (21-22) 21 (23-29) 23 29 (40-42) 40 42 vi v .2 2.TABLE OF CONTENT PARTICULARS • • • • Chapter-1 1.10 Chapter-3 3.1 1.
V Kurien along-with Shri H M Dalaya. He sent Morarji Desai (who later became Prime Minister of India) to organize the farmers. Indigenous R&D and 1 . especially in the summer season.1 The Birth of Amul and development of India’s Dairy Cooperative Movement: The birth of Amul at Anand provided the impetus to the cooperative dairy movement in the country. The Cooperative was further developed & managed by Dr. Often milk went sour as producers had to physically carry the milk in individual containers.1. the Polson Dairy in Anand. the farmers of the area went on a milk strike refusing to be further oppressed. Angered by the unfair and manipulative trade practices. Milk is a commodity that has to be collected twice a day from each cow/buffalo. the farmers of Kaira District approached Sardar Vallabhbhai Patel (who later became the first Deputy Prime Minister and Home Minister of free India) under the leadership of the local farmer leader Tribhuvandas Patel. Thus the Kaira District Cooperative was established to collect and process milk in the District of Kaira in 1946. In 1946. the producer was either left with surplus / unsold milk or had to sell it at very low prices. 1946 as a response to exploitation of marginal milk producers by traders or agents of existing dairies in the small town named Anand (in Kaira District of Gujarat). Milk collection was also decentralized. India ranked nowhere amongst milk producing countries in the world in 1946. Moreover. Sardar Patel advised the farmers to form a Cooperative and supply milk directly to the Bombay Milk Scheme instead of selling it to Polson (who did the same but gave low prices to the producers). the government at that time had given monopoly rights to Polson Dairy (around that time Polson was the most well known butter brand in the country) to collect milk from Anand and supply it to Bombay city in turn. The first modern dairy of the Kaira Union was established at Anand (which popularly came to be known as AMUL dairy after its brand name). These agents arbitrarily decided the prices depending on the production and the season. Village level cooperatives were established to organize the marginal milk producers in each of these villages. Milk Producers had to travel long distances to deliver milk to the only dairy. as most producers were marginal farmers who were in a position to deliver 1-2 litres of milk per day. In winter. The Kaira District Cooperative Milk Producers’ Union Limited was registered on December 14.
The success of the dairy co-operative movement spread rapidly in Gujarat. the Gujarat Co-operative Milk Marketing Federation was established. The birth of Amul at Anand provided the impetus to the cooperative dairy movement in the country.technology development at the Cooperative had led to the successful production of skimmed milk powder from buffalo milk – the first time on a commercial scale anywhere in the world. Baroda. The first modern dairy of the Kaira Union was established at Anand (which popularly came to be known as AMUL dairy after its brand name). His professional life has been dedicated to empowering Indian farmers through co-operatives. Verghese Kurien who worked as a professional manager at AMUL. In order to combine forces and expand the market while saving on advertising and avoid a situation where milk cooperatives would compete against each other it was decided to set up an apex marketing body of dairy cooperative unions in Gujarat. This was possible due to the dedicated and committed leadership of the founder Chairman of AMUL. Banaskantha. Dr. in 1973. Dr. Dr. Thus. V Kurien along-with Shri H M Dalaya. With the creation of GCMMF (AMUL). The foundations of a modern dairy industry in India were thus laid since India had one of the largest buffalo populations in the world. Tribhuvandas Patel and the vision and professionalism of the father of the White Revolution. The foundations of a modern dairy industry in India were thus laid since India had one of the largest buffalo populations in the world. which had established the brand name AMUL in 1955 decided to hand over the brand name to GCMMF (AMUL). Verghese Kurien. The Kaira District Cooperative Milk Producers’ Union Ltd. The Cooperative was further developed & managed by Dr. the World Food Prize and the Magsaysay Award winner. we managed to eliminate competition between Gujarat’s cooperatives while competing with the private sector as a combined stronger force. Within a short span five other district unions – Mehsana. Kurien’s vision has helped to lay the foundation of democratic enterprises at the grass roots and shown the way to ensure economic justice is with people’s 2 . Sabarkantha and Surat were organized. Indigenous R&D and technology development at the Cooperative had led to the successful production of skimmed milk powder from buffalo milk – the first time on a commercial scale anywhere in the world. GCMMF (AMUL) has ensured remunerative returns to the farmers while providing consumers with quality products under the brand name AMUL. is the architect of India’s White Revolution. which helped India emerge as the largest milk producer in the world.
1. He believes that by placing technology and professional management in the hands of the farmers. is based on the rich experience gained from the ‘Amul Model’ dairy cooperatives. The facilities at all levels are entirely farmer-owned. the world’s largest dairy development programme. Shri Lal Bahadur Shastri. supply inputs and create value-added processing. Operation Flood. This innovative three-tier organization structure combines the productive genius of farmers with professional management and modern technology. the then Prime Minister of India during his visit to Anand in 1964. India has already demonstrated the superiority of this approach. The cooperatives are able to build markets. To know the preferences of AMUL products with comparison to other competitive brands. Impressed with the development of dairy cooperatives in Kaira District & its success. the standard of living of millions of our poor people can be improved. Amul Model cooperatives seem to be the most appropriate organizational force for promoting agricultural development using modern technologies and professional management and thereby generating employment for the rural masses and eradicating poverty in these undeveloped areas. V Kurien to replicate the Anand type dairy cooperatives all over India.2 Objectives of the Study • • • To know the relationship of sales with the advertisement. asked Dr. Prompt and remunerative payment for produce of good quality has ensured the best incentive for the farmer to increase production and quality. To know in which segments AMUL products are most likely preferred. Thus. 3 .participation. Thus. the National Dairy Developed Board was formed and Operation Flood Programme was launched for replication of the Amul Model all over India.
884 crores in 1997-98 and 1. the federation.554 crores in 1996-97.5 crore litres of milk in pouches during April-September 1998. In 1997-98. In 1998. 2. 26 crores.1 lakh kg in 1996-97. The Gujarat Co-operative Milk Marketing Federation The Gujarat Co-operative Milk Marketing Federation. the federation with 19. marketing about 26 different dairy products.5 lakh producer members is taking up the manufacture of Swiss cheese both for the domestic market as well as exports. Until recently. The federation has plans to increase its turnover 5-fold to Rs.220 crores in 1998-99 from Rs. the 4 . 10. its sales of buffer have gone up form 10. sold about 10. which markets Amul brand dairy products is expected to show a growth in sales of 17 per cent to about Rs.000 tonnes in 1997. In 1997-98.000 crores by 2005 by increasingly milk products manufacturing capacity.1 ABOUT THE COMPANY AMUL THE ORGANIZATION 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 consumer by providing quality products which are good value for money. its average sales of liquid milk were 39-65 lakh kg per day against 38. Asia’s largest producer of dairy products.2.000 tonnes in 1996 to 25. the federation has been exporting its products to West Asia. 1. its exports touched rs.
2002-03): Milk collection (Daily Average 2002-03): Milk Drying Capacity: Cattle feed manufacturing Capacity: 12 district cooperative milk producers' Union 2. (million) US$ (in million) 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 11140 13790 15540 18840 22192 21185 22588 23365 27457 355 400 450 455 493 493 500 500 575 5 .. 10 crores.7 million litres per day 1. of Producer Members: No.132 6.08 million litres 510 metric Tons per day 1450 Mts per day Sales Turnover Rs.federation for the firs time exported butter. In 1998-99.86 billion litres 5. the federation exports to the US are pro jected at Rs. cheese and gulabjamuns to the US. • • • • • • • • Members: No. of Village Societies: Total Milk handling capacity: Milk collection (Total .28 million 11.
Of the triumph of indigenous technology. Amuspray. Amul Chocolates. The brand name “Amul” form the Sanskrit “Amoolya. Amul Cheese. Amul Butter. Nutramul. Amul Shrikhand. Amul Ice cream.8 billion in 199798). Amul Ghee. Today Amul is a symbol of many things. (Turnover: Rs.AMUL AMUL means “priceless” in Sanskrit. all meaning “priceless”. Of the marketing savvy of a farmer’s organization. And of a proven model for diary development. Of the genesis of vast co-operative network. Variants. 6 . Of the genesis of a vast co-operative network. Of high quality products sold at reasonable prices. are found in several Indian language. Of the triumph of indigenous technology. 18. Amul milk Powder. Amul Milk and Amulya have made Amul a leading food brand in India.” was suggested by a quality control expert in Anand. Amul products have been in use in million of homes since e1946.
Hence the Loyalty increases and Repurchase and Referral occur. Amul’s success is due to its ability to convert the value it offers to customers to profits. Similar models were replicated elsewhere. the colonial Government refused to recognize the milk society. The original Anand model envisioned co-operatives at the village level and processing unit at the district level. and Quality. resulting in Customer Satisfaction. Sadar Patel’s vision was to empower the farmers by allowing them to control the production. which will handle the milk sale from Kaira to the Bombay Milk Scheme.2 AMUL’S SUCCESS STORY: The decision to constitute Amul’s first co-operative was taken on 4 th January. but a fifteen-day strike by the milk producers made it relent. to market the products of the small unions more effectively. Since then. and in 1973. 7 . resulting in profits. The task was entrusted to qualified professionals. the Gujarat Co-operative Milk Marketing Federation (GCMMF) was formed. and thus the middlemen were to be eliminated. This decision marked a new era in Indian dairy industry. GCMMF is the sole marketer of the Amul brand. procurement. The milk producers’ co-operatives in villages formed a federation at the district level. and marketing of the milk. Initially. The Kaira District Milk Producers’ Union Limited was formed and registered on the 14 th December 1946. The expectations of the customer is met by a suitable combination of Relative Price. called an “union”.2. then the company can extend the brand to other products. 1946 at a meeting called by Morarjee Desai under the advice of Sardar Vallabbhai Patel.
He formed a co-operative. and the World Food Prize.3 OPERATION FLOOD: Operation Flood is responsible for the transformation from the situation of net imports to a state of surplus. which would buy milk from the producer. The result was dramatic: milk production and consumption jumped from 132 gm per day to 220 gm per day. who wanted to replicate the model in the poor section their country. He was posted at the KairaDistrict Milk Producers Union. a newly formed cooperative organization established to help market milk directly to the consumers. side by side empowering the farmers. a technologist. the Ramon Magsaysay Prize for Community Leadership. Dr Verghese Kurien.2. Asia. and Latin America. after returning to India from Michigan State University. 8 . began working with the farmers in 1949. The work won Dr Kurien numerous awards like the Padma Bhushan. by increasing their per capita income. The model given by Dr Kurien was so successful that it caught the attention of a large number of countries in Africa. where he earned a Master of Science of Mechanical Engineering (with distinction). the Carnegie-Wateler World Peace Prize. Thus it served to organize them and enable a fair price.
the country’s milk production tripled between the years 1971 to 1996. One can continue to see the effect of these efforts as India’s milk production continues to increase and now stands at 90 MMT.Operation Flood period to more than 60 MMT at the end of Operation flood Programme. Thus. the per capita milk consumption doubled from 111 gms per day in 1973 to 222 gms per day in 2000. 9 . these cooperatives have not just been instrumental in economic development of the rural society of India but it also has provided vital ingredient for improving health & nutritional requirement of the Indian society. from about 20 MMT in pre. Despite this fourfold increase in milk production.2. The three-tier ‘Amul Model’ has been instrumental in bringing about the White Revolution in the country. This has been the most beneficial project funded by the World Bank anywhere in the World. Very few industries of India have such parallels of development encompassing such a large population. It has been proved that an investment of Rs.e. 20 billion over 20 years under Operation Flood Programme in 70s & 80s has contributed in increase of India’s milk production by 40 Million Metric Tonne (MMT) i. 400 billion annually have been generated by an investment of Rs. This has also provided a definite source of income to the women leading to their economic emancipation. These dairy cooperatives have been responsible in uplifting the social & economic status of the women folk in particular as women are basically involved in dairying while the men are busy with their agriculture. Due to this movement. there has not been drop in the prices of milk during the period and has continued to grow. an incremental return of Rs. 20 billion over a period of 20 years.4 IMPACT OF “AMUL MODEL” The effects of Operation Flood Programme are more appraised by the World Bank in its recent evaluation report. Thus. Similarly.
5Achievements of ‘Amul Movement 10 .“As per the assessment report of the World Bank on the Impact of Dairy Development in India. the ‘Anand Pattern’ has demonstrated the following benefits: • The role of dairying in poverty reduction • The fact that rural development involves more than agricultural production • The value of national ‘ownership’ in development • The beneficial effects of higher incomes in relieving the worst aspects of poverty • The capacity of dairying to create jobs • The capacity of dairying to benefit the poor at low cost • The importance of commercial approach to development • The capacity of single-commodity projects to have multi-dimensional impacts • The importance of getting government out of commercial enterprises • The importance of market failure in agriculture • The power & problems of participatory organisations • The importance of policy 2.
which has resulted in low cost of production & processing of milk. which has further propelled growth of milk production. This has propelled India to emerge as the largest milk producing country in the World today. by offering open and voluntary membership. Dairy Cooperatives have always been proactive in building large processing capacities. 9. 6. creed.1. 3. The dairy cooperatives have also been instrumental in bridging the social divide of caste. 7. The dairy cooperative movement has spread across the length and breadth of the country.000 villages of 180 Districts in 22 States. with their membership today boasting of more than 13 million member families. 8. covering more than 125. The dairy cooperative movement has garnered a large base of milk producers. which has resulted in the 500 million cattle & buffalo population in the country . The dairy cooperatives have been able to maintain democratic structure at least at the grass-root level with the management committee of the village level unit elected from among the members in majority of the villages. 5. The movement has been successful because of a well-developed procurement system & supportive federal structures at District & State levels. 2. religion & language at the villages. race. 4.has been made possible only because of the dairy cooperative movement. 11 . The dairy cooperative movement has also encouraged Indian dairy farmers to keep more animals.the largest in the World. The dairy cooperatives have been successfully propagating the concepts of scientific animal husbandry & efficiency of operations. The phenomenal growth of milk production in India – from 20 million MT to 100 million MT in a span of just 40 years .
it has also resulted in fair returns to the members for their produce 12. As these are the institutions run by farmers themselves. 11. The dairy cooperatives have removed the poor farmers of India from the shackles of agents & middlemen and provided an assured market for their produce. which still cherish a strong Cooperative identity. The dairy cooperatives are among those few institutions in India.10. values and purpose. They still boast of idealism & good will of members and employees. Dairy cooperatives have been able to create a market perception of honesty & transparency with their clean management 2.6LIST OF AMUL PRODUCTS 12 .
SKIMMED MILK POWDER • Especially useful diet preparation or for use by people on low calorie and high protein diet. CHEESE AMUL PASTEURIZE DPROCESSED CHEDDAR • 100% vegetarian cheese made from microbial rennet. AMUL PURE GHEE • • Made from fresh cream has tupical rich aroma and granular.Amul Butter • Utterly butterly delicious Amul SPRAY • Infact milk food. AMUL CHEESE SPREAD • Tasty cheese spread in three great flavors. AMULYA DAIRY WHITENER • The richest. purest dairy whitener. Still mothers milk is bet for your baby AMUL INSTANT FULL CRAM MILK POWDER • A dairy at your home. NUTRAMUL 13 . An ethnic product made by dairies with decades of experience.
JAL DHARA PURE DRINKING WATER • The purest drinking water. AMUL EMMENTA CHEESE • The great Swiss cheese from Amul AMUL FRESH MILK • The most hygiene milk available in the market pasteurized packet for convenience. AMUL MOZZARELLA CHEESE • Pizza cheese makes great testing pizzas. 14 . AMUL FLAVOURED CHEESE CUBES • Great for cheese sandwiches cheese Pakoras cheese Burgers and a host of delicious cheesy snacks. AMUL PANEER • Ready to cook paneer to make your favorite recipes. DHARA EDIBLE OIL • Largest selling brand of edible oil in India.• Malted milk food made from malt extract has the highest protein content among all the brown beverage powder sold in India. AMUL UHT MILK • Longlife fresh milk with extra vitamins & no preservatives added. AMUL CHEESE POWDER • The real cream on your soup.
AMUL PIZZA • The hottest new addition Breadspreads • • • • Amul Butter --Amul Lite Low Fat Breadspread Amul Cooking Butter Delicious Margarine Milk Powders • • • • Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener Sweetened Condensed Milk • Amul Mithaimate Sweets • • • Amul Shrikhand & Amrakhand Amul Mithaee Khoya Gulabjamaun Amul Basundi Fresh Milk • • Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat 15 .
Sundae Magic. Rajbhog. Megabite. Fresh Strawberry. Double Sundae) Assorted Treat (Chocobar. Cake Magic) Amul SUGAR FREE Frozen Foods (Milk Based Sweet) Amul ProLife Probiotic Ice cream Roasted Almond) • Black Currant. Chocolate. Santra Mantra. Fresh Litchi. Chocochips. Fresh Pineapple) • • Chococrunch. Black Currant. Ice Candies. Nature's Treat (Alphanso Mango. Tricone. Frostik.• • • • Amul Shakti Standardised Milk 4. Cassatta) • • • Chocolate & Confectionery • • • • Amul Fruit & Nut Chocolate Amul Bindazz Amul Rejoice Amul kesar 16 . Dollies. Kesar Pista Royale.5% fat Amul Saathi Skimmed Milk 0% fat Amul Cow Milk Curd Products • • • • • • Yogi Sweetened Flavoured Dahi (Dessert) Amul Masti Dahi (fresh curd) Amul Lite Dahi Amul Prolife probiotic Dahi Amul Masti Spiced Butter Milk Amul Lassee Amul Icecreams • • • Vanilla Royale Royal Treat Range (Butterscotch. Utterly Delicious (Vanila. Sundae Range (Mango. Strawberry.5% fat Amul Slim & Trim Double Toned Milk 1. Malai Kulfi) Nut-o-Mania Range (Kaju Draksh. Fruit Bonanza. Shahi Anjir.
which kills bacterial and keep it fresh.7 PRODUCT DESCRIPTION Ultra High Temperature (U.Brown Beverage • Nutramul Malted Milk Food Milk Drink • Amul Kool Flavoured Milk (Mango. Saffron. Cardamom. There is no preservatives or 17 .H. Rose. It is fresh and hygenic milk. After cooling it is packed in tetra Pack. It is bacteria free milk. Strawberry. Butterscotch) • • Health Beverage • Amul Shakti White Milk Food 2.T) Milk is a kind of milk which comes in tetra pack. Amul Kool Cafe Amul Kool Koko Chocolate. It is firstly boiled on 1310C.
H. In India it is relatively new. NESTLE has two verities standard with 4. 2. Gagan is not in same category.e.e. Stay fresh for 4 months. It has good sale in A Class market. It is low price and it comes in poly pack.H. Low Fat with 1. SLIM NTRIM with 0.8 AMUL.5% fat. There is no need to keep it in freeze or boil it till 120 days.e. milk available in market i. People are less aware about this product.H. Vijaya has also two varieties i. Gives Excellent and Firm Cards/yoghurt Hygienically packed Natural taste with high nutritive value Packaging materials absolutely impermeable and non-returnable. which have contributed to its meteoric rise. Amul has three varieties of U.T MILK Treated at Ultra High Temperature and aseptically packed. (in packed condition). Amul has over a period of time built a massive distribution network. NESTLE. It is little more costlier than fresh poly pack milk. 18 . SLIMN TRIM with 05% fat. Homogenized. which has helped them penetrate the interiors of rural India. VIJAYA and GAGAN.T. Nestle Milk with 3% fat.e.5% fat. i.5% fat and FEATURES OF U. Need no refrigeration. It has a very good market in abroad. There is 3-4 branded U. Amul.The Logistics and Distribution The success of Amul can be contributed to the pricing to a large extent but none the less there are other factors. It has 120 days shelf life. Sterile bacteria free and can be consumed directly.T.chemical are added only extra vitamins and minerals are added in this pure milk.5% fat. Taaza with 3% fat and Gold with 4. milk i.
This has gone a long way in generating goodwill among Amul’s partners. 18000 strong cold chain and 500000 non refrigerated retail outlets. 2. The cold retail chains offer a major competitive advantage.5 million litres of milk procured per day ü Rs. 100000 retailers. Amul has also persuaded Carrier Aircon and Blue Star to provide warranty for three years instead of the usual two. 20000. 300 stock keeping units. 2.9 GCMMF: MISSION STATEMENT We are Gujarat Co-operative Milk Marketing Federation Endeavor to satisfy the taste & Nutritional Requirement of the Customers of the world through Excellence in Marketing by our Committed team. Amul has launched “Hamara Apna” Deep Freezer scheme. Amul outsold HLL in the ice cream market solely on the basis that it controlled a huge number of milk and butter outlets all over the country. with its 40 product categories.8 million milk producer member families ü 13. 53 billion ü The Govt. The Corporation networking we are committed to offering quality products that provides best value for money.10ACHEIVEMANTS OF GCMMF ü 2.Amul. 150 million disbursed in cash daily ü GCMMF is the largest cooperative business of small producers with an annual turnover of Rs. of India has honoured us with the “Best of all categories Rajiv 19 . In this scheme retailers would be provided with cooling machines only for Rs. In order to further strengthen their distribution backbone. has made it really difficult for a new entrant to get a foothold in the market.759 village societies ü 13 District Unions ü 8.
150 crores ü Winner of APEDA award for nine consecutive years Amul Brand Building: GCMMF (AMUL) has the largest distribution network for any FMCG company. 5 lakh retaikl outlets ü Export to 37 countries worth Rs.000 retailers. more than 3. 3000 Wholesale Distributors. and our SAARC neighbours. AMUL is also the largest exporter of dairy products in the country. The Philippines. Singapore. AMUL is available today in over 40 countries of the world. Cottage Cheese (Paneer). West Indies. The major markets are USA. and countries in Africa.1 Research methodology of the study 3. UHT Milk.00. Thailand.Gandhi National Quality Award”. In September 2007. Amul emerged as the leading Indian brand according to a survey by Synovate to find out Asia's top 1000 Brands. Japan and China. We are exporting a wide variety of products which include Whole and Skimmed Milk Powder. Clarified Butter (Ghee) and Indigenous Sweets. the Gulf Region.000 wholesale dealers and more than 5. It has nearly 50 sales offices spread all over the country.1. 3.1 Research:- 20 . ü Largest milk handling capacity in Asia ü Largest Cold Chain Network ü 48 Sales offices.
This includes using ALL appropriate print and electronic sources. and/or participation. The degree of reliability. Secondary data It is define as information collected by others such as government agencies and/or nonprofits that pertains to your area of interest. and precision required depends on how you intend to use the information. validity. validity. 3. Since there are vast sources through which the data can be collected thus this methodology means getting the best and appropriate data for the existing project.1. primary and secondary data.2 Research methodology:Research methodology is define as the way in which the data are collected for the research project.1. asking the reference librarians for help. In this project we have used secondary data sources such as Web sites Company annual reports 3. Primary data It is define as information collected directly from the source through observation.Research is define as diligent and thorough inquiry and investigation into a subject.3 Data Collection Data can be collected through various sources available in two different forms. The degree of reliability. and precision in secondary data depends on how it was collected and interpreted. Census data is one example of secondary data. and making use of bibliographies given by other authors 3.3 Limitation The limitations of the research were as follows:- 21 . Visitor response to surveys is one example of primary data. conversation.1.
22 . The cooperative Gujarat coopertive Milk Marketing federation better know as Amul gives that former the best price for its milk and the consumer the lowest rice for the product he buys. 4. Time frame required was not enough to survey more number of outlets.1 CORE MARKETING CONCEPTS Marketing Definition as said by Philip Kotler: Marketing is a societal process by which individuals and group obtain what they need and want through creating offering and freely encharge products and services of value with others.• • Lack of proper experience on the part of the researcher in conducting such studies in the past.
Needs. Wants: Need becomes want when they are directed to specific objects that might satisfy the need. persons place. Where Amul products are concerned consumers have the ability willingness to pray because. orgnaisation information and idea. Value and satisfaction Value = Benefit Cost = Functional Benefit + emotional benefit m onetary cost + time cost + energy cost Amul as a product offers functional benefit as it has super value products and milk is used by maximum numbers of house hold. wants & Demands Needs describes basic human requirement the basic requirements that Amul is addressing is the need for milk and milk products. events. They also provide services of institutions and schools and college canteens. experiences. properties. Ice-creams. • Product & Offering A product is my offering that can satisfy the need or want major types of basic offerings and goods. The marketer can increase the value of customer offering by reducing the cost. Butter. In case of Amul the wants any be mentioned as the milk products like Mish Dahi. Cheese. A brand is an offering from as know source and Amul offering market products like dairy products & edible oils. Demands: Demands and wants of specific products baced of ability to pray. Smeetened condeved milk and many more. 23 . services.
• Competition It has competitors in one products category or another. (HLL) HLL is trying to put on over Amul by building one network of franchised ice-creams parlours and kiosks.000 non refrigerated retail outlets it is now flexing its distribution muscle to make life tough for new entrant or to push its new offerings. dominos. For example transnational marketing gients like Pizza Huts. they know where Nestle will go and flooded the market with Amul butter and given GCMMF’s wide range of products no retailers could say no. 24 . milk maids dominance.S. R. Today milk Mithai mate has 30% share of the market. Britannia and Hindustan Lever Ltd.• Marketing Channel and Distribution In August Nestle discovered to its disadvantage when it launched its eponymous brand of butter in Delhi and Mumbai market the refrigerator for key retailers have not much of it in storage. Cadburys.000 strong cold chain 50. According go general manager (marketing) GCMMF Mr. Nestle. It is building more intensive distribution network as it is in maturity stage. Amul’s condence milk brand “Mithai Mate” has eroded market leader. It has 40 products categories 300 stock keeping units 100000 retailers with refrigerator 18. Sodhi.
HLL has a pronounced presence in Ice Creams and confectionary in which Amul has shown a keen interest in recent time so as to sustain its planned growth. and host of other products which 25 . • HLL Conflict Areas: Ice Creams. Amul has launched milk Lairs to gun for a major share in chocolate’s and confectionary markets.GCMMF milk based confectionary brand max is rupee one segment in this category of long life milk targeting high and consumers . pizza etc. as a countering measure it has launched kiosks and exclusive Ice Cream parlours across the length and breadth of the country. this has brought Amul in direct competition with the marketing majors in India. Contrary to popular perception that Amul competed only on the basis of competitive price. it managed to sabotage the market launch of Nestle’s Butter using its distribution network. Cornetto. Some of the companies that Amul is directly competing against in various segments are described in the following paragraphs. Confectionary HLL has increased the number of offerings at lower prices. • Competitor Strategy Analysis Currently only 15 % of GCMMF’s revenue come from value added offerings which include long life milk. The strategy of Amul has been highly aggressive. Amul competes with Nestle primarily on the plank of price competitiveness. ice cream. Amul has plans to increase this to 35 % within the next 5 years. The product profile of HLL in ice creams range from Max. The ambitious growth has made it imperative to expand its product line.
26 . Butter.. • Kwality Walls Cornetto Cornetto was launched in the year 1995-96. Max has the tagline masti kar Befikar and encourages all kids to have a good time. so as to differentiate itself from other ice cream brands. It has restricted its focus to 30 cities for butter and cheese. Let us take a look at the products in HLL’s profile in some detail. It does not come into the league of so-called big players because of its restricted focus. Max ice cream has been positioned as an ice cream that has been fortified with extra vitamins. and it remains the Ice cream with the …. • Britannia Conflict Areas: Milk. Max was launched in the year 1999. it has been positioned as an ice cream for romance and special moments it has been targeted towards young adults. Max has recently extended its presence in confectionary Max Magik and Choco Max. • Kwality Wall’s Max It has been advertised as the masti ice cream and has been targeted at young school going children. • Feast It was launched in 1995-96. (candies) with brands such as Max Masti.cater to different segments of the Indian society. Feast has managed to continuously connect with today’s youth. Cheese Britannia has launched fresh milk in markets where GCMMF lacks presence. Amul is not taking this lightlyand is all feared up for the competition. the Feast range of ice creams have been positioned as a ice cream of youth with attitude. Big F. It is advertised with the tagline bite bite mein pyar. Feast has expanded its chocolate only portfolio to include refreshment products tune with the variety need of todays youth. none the less it is coming across as an emerging player in the same segment as that of Amul.
Nestle has a very strong presence in baby foods with its products such as Farex which is not that well known now but 10-15 years ago it was a standard product in many middle and upper middle class households. In 1929 Nestle acquired Peter. The competition is also brewing in the infant milk and mithai segment as there are launches in these two segments by GCMMF. For three decades the company started by Daniel Peter relied on Nestle for its need of milk and marketing its brand of chocolate. the Milkmaid brand of sweetened condensed milk was one of the first products to be launched by Nestle way back in 1967. • Cadbury’s Conflict Areas: Confectionary 27 . But the modern day chocolate as we know of can be credited to Daniel Peter who in 1875. which Amul is trying to get a share of. figured out how to combine milk and cocoa powder in proportion to produce chocolate. Nestle has introduced Cerelac recently in the baby food segment to counter the threat from Amul. Nestle recently launched butter and curd in major markets across India. Apart from the traditional dairy products Nestle is also in direct competition with Amul in the chocolate and confectionary segment. Nespray which it markets under full cream milk powder. against Nestlé’s Cerelac and Milkmaid. With this kind of history and technical knowhow the going for Amul was never going to be easy. The history of chocolate dates back to the ancient civilization of Mayans and Aztecs. which brings them directly in contention for the same market. Nestle has launched its version of powdered milk.• Nestle Conflict Areas: Entire Dairy Spectrum Nestle is directly in competition with GCMMF across the entire dairy line. Few of the products that have been launched by Nestle date back to more than a century. Cailler. Nestle has a major presence in majority of the products which are there in Amul’s product line. Kohler With nearly 100 years of experience in making chocolates Nestle has a very great presence in this segment. This has brought both the giants in direct competition for larger pie of the market.
1 Product The product Amul was rightly launched as it has monopoly in super value segment. It is trying to move beyond its dependence on chocolates and move into sugar confectionary as the next growth opportunity. Gems and Bournvita. 4.Cadbury has relaunched three brands. Product levels – Almost all the products of Amul for between either expected or augmented product level.2 THE FOUR P’S OF MARKETING 4. Product classification – Amul comes under the category of Consumer Goods. 28 . 5 Star.2.
Convenience goods - These are goods that customer usually purchases frequently. 4. such as linear programming for example. Some companies have a narrow product mix geared toward a particular market segment. groundnut oil School & Colege Airlines & various Dhara Double filtered canteens Dhara refined mustard others 29 . the decision rule is to maximize the contribution margin per unit of the constrained resource. will maximize total profits. coffee. household paper goods.) required to support it. Procter bar soap. For example. marketing. Some products of Amul like Milk. disposable diapers.2. such as the Williams Sonoma catalog that sells gourmet cooking accessories. storage. Similarly Amul is also dealing in vats variety of dairy products in the market. given multiple constraints. etc. deodorants. the decision is more difficult and more sophisticated techniques must be used. and food products. Oil come under the category of staples. if the firm can sell as much as it can produce and has a single resource constraint. However. Butter. Thus the decision taken to the relative amounts of each type of product or service that. Some companies have a wide product mix geared toward a diverse consumer group. Procter & Gamble has a product mix that includes detergents.2THE PRODUCT MIX Product mix is defined as all of the products or product lines offered by a firm. Offering a wide product mix provides an opportunity to increase the amount of goods sold to each customer but has costs associated with the variety of resources (distribution. For example. Amul also has impulse goods like chocolate and ice-creams which are purchased without any planning or search. Dairy Products Consumer Packs: Amul Butter Amul Spray Instant Milk Flood Amul spray full cream milk powder Amulya dairy whitener Amul lite Edible oils Institution Dhara Double Filtered Railways: Mustard Oil. given demand and resource constraints. immediately and with the minimum of effort. toothpaste.
chocolate. lichi. Kaju. Raj bhog.e rose mango. honeydewmelon. kesanpista. Butter scotch. orrang.Amul Pure Ghee Sagar Pure Ghee Amul Processed Cheese Amul Enimenal Cheese (New) Amul Mozzarella Chese Amul Chocolates Nutramul Mauted Milk Food Amul Mithaee (Gulabjamun) Amul Shrikhand Amul Gold Amul Shakti (Standarised Milk) Amul Tazza Amul Longlife Milk Nutramul Brown Beverages Amul Ice-Cream (vanilla. pineapple. cashew break) Bulk Packs Amul skimmed milk powder Amul full cream milk powder oil Dhara health refined sunpower oil Dhara kalah ghani oil Dhara Soyabean oil Dhara vegetable oil Dhara sunflower oil Dhara cottonseed oil Lokdhara blended oil refined Refined Refined Product width = 3 Product Length = 50 Amul ice-creams → depth = 16 Amul bulk packs → depth = 2 The product mix is justified because Amul is in the maturity stage so its needs the diversify its brands and items. 30 . tutti frutti. choco Chips. strawberry.
Price Product Quality High High 1. Pricing Strategy All products of Amul have standard pricing strategy.4. Overcharging Low strategy 7. Economy strategy Medium 4. Super-value strategy 6.3 Pricing objective It faces major competition in ice cream category from HLL with both eyeing the interactive 75 to 100 crore units a year. Amul is in the maturity stage. Medium-value strategy 8. 31 . High-value strategy 5.2. Rig-off strategy Amul follows the super value strategy. Premium strategy Medium 2. It tries to seek profits and at the same time achieve low cost per customer. False economy strategy Low 3. which aims at providing superior quality product at low cost per customer. Good-value strategy 9.
00 Rs.188.8.131.52.00 Rs.70.00 Rs.97.0 Rs.203.00 Rs.13.60.35.00 Rs.00 Rs.No Products Pack size retail 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Amul butter Amul butter Delicious table margarine Delicious table margarine Amul light low fat bread spread Amul cheese Amul cheese slices Amul cheese chiplets Amul cheese Amul cheese spread Amul pizza cheese Amul emmental cheese Amul gouda cheese Amul gouda cheese Amul malai paneer Amul/sagar pure ghee Amul/sagar pure ghee Amul/sagar pure ghee Amul/sagar pure ghee Amul pure ghee Amul/sagar pure ghee Amul shrikhand Amul shrikhand Amul shrikhand Amul shrikhand Amul mithaee gulabjamun Amul mithaee gulabjamun Nutramul Amul chocolate Amul chocolate Amul almondbar Amul chocozoo Amul chocozoo tub Amul tazza double toned milk 32 100g pack 500g pack 100g pack 500g pack 200g tub 400g tin 200g pack 200g pack 1 kg block 200g pack 200g pack 400g pack 250 g 1 kg 200g dice pack 1 ltr tin 500ml pouch 2ltr tin 5ltr tin 1ltr reffil 1ltr pouch 500g cup elaichi 500g cup mango 500g cup kesar 500g badam pista 1kg tin 500g tin 500g reffil 35g milk 35g fruit & nut 35g 232g tin 500g 1 ltr tetra prices Rs.00 Rs.16.105.1075.00 Rs.00 Rs.184.108.40.206.00 Rs.32. Sr.110.20.00 Rs.00 Rs.00 Rs.00 Rs.00 Rs.225.00 Rs.230.00 Rs.115.00 Rs.00 Rs.00 Rs.00 .00 Rs.• PRICE LIST OF AMUL Max.00 Rs.47.00 Rs.34.110.15.00 Rs.00 Rs..150.58.00 Rs.00 Rs.50.00 Rs.420.60.00 Rs.00 Rs.00 Rs.435.00 Rs.50.
00 Rs.00 Rs.00 Rs.00 Rs.54 55 56 57 58 59 60 61 62 63 64 Amul tazza double toned milk Amul tazza toned milk.100.00 Rs.northern eastern state Amul gold milk Amul light skimmed milk Amul CALCI+ high calcium milk Amul mithaimate sweetened condensed milk Amul spray IMF Amul spray IMF Amul spray IMF Amul spray IMF Sagar skimmed milk powder Amulya dairy whitener Amulya dairy whitener Amulya dairy whitener Amul spray IMF Amul shakti health food drink (kesar almonds) Amul kool (kesar.00 Rs.209. elaichi.00 Rs.00 Rs.15.00 33 .22.00 Rs.00 Rs.30.00 Rs.00 Rs.40.00 Rs.00 Rs.00 Rs.204.00 Rs.12. rose) Amul kool (kesar.184.00 Rs.00 Rs.00 Rs.101.22.00 Rs.00 Rs.00 Rs.12.00 Rs.220.127.116.11.18.104.22.168.40. chocolate) Amul kool kesar Amul kool café Amul kool café Amul kool café Amul kool koko Amul kool milk shake( mango.105.22.29.00 Rs.15. strawberry & badam) Amul kool milk shake (mango &strawberry) Amul fresh cream Amul fresh cream Amul masti spiced butter milk Amul masti spiced butter milk Amul lassee (rose) 200ml tetra 1 ltr tetra 1 ltr tetra 1 ltr tetra 1 ltr brick 400g can 500g pouch 500g reffil 500g tin 1kg pouch 500g pouch 500g pouch 500g reffil 1kg pouch 1kg tin 500g reffil 200ml bottle 200ml tetra 250ml can 200ml glass bottle 250ml can 200ml tetra brick 250ml can 220ml can 180ml tetra pack 200ml tetra brick 1 ltr tetra brick 200ml tetra brick 1 ltr tetra brick 200ml tetra Rs.9. elaichi.35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 .00 Rs.10.115.00 Rs.00 Rs.00 Rs.15.00 Rs.108.
00 Amul Promotion Books • • • The Amul India Story : Ruth Herediya Management Kurien Style : MV Kamath The Unfinished Dream : V Kurien Amul Surabhi : Doordarshan.65 Amul basundi brick 1 ltr tetra brick Rs.98. India Amul India Show : Star Plus Channel Sardar: The Iron Man of India : A film by Ketan Mehta Manthan: a film by Shyam Benegal Sponsored Programs • • Feature Films • • TV Films (Coming Soon!) 34 .
• • • • • Utterly Butterly Amul : New 30sec TV Film Amul : The Taste of India TVC : 60 sec film Amul Golden Jubilee : Manthan TV film : 60 sec film Amul Cheese TV Film : 40 seconds Amul Icecream TV Film : 40 seconds Butter Topicals Amul Cricket Rankings 35 .
PRINT ADVERTISEMENTS 36 .
The Amul ads are one of the longest running ads based on a theme.The mascot was first used for Amul butter.2. that created. the campaign. But in recent years in a second wave of ad campaign for Amul products. Amul outdoor advertising uses billboards. Sylvester da Cunha was the managing director of the advertising agency. in 1967.Advertisement Its advertising has also started using tongue-in-cheek sketches starring the Amul baby commenting jovially on the latest news or current events. 4. The pun in her words has been popular. ASP. Mascot Since 1967 Amul products' mascot has been the very recognisable "Amul baby" (a chubby butter girl usually dressed in polka dotted dress) showing up on hoardings and product wrappers with the equally recognisable tagline Utterly Butterly Delicious Amul. now vying for the Guinness records for being the longest running ad campaign ever with Smokey Bear. with a humorous take on current events and is updated frequently.4 PLACE AMUL TOP RETAILERS • • • • • • • • • • • • Chennai Calcutta Nasik Jalgaon Aurangabad Delhi Raipur Jodhpur Udaipur Pune Siliguri / Durg Kota 37 . she has also been used for other product like ghee and milk.
GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 8 years. The major export products are: Consumer Packs • • • • • • • • • • Amul Pure Ghee Amul Butter Amul Shrikhand Amul Full Cream Milk Powder Amul Mithaee Gulabjamun Amul Skimmed Milk Powder Nutramul Brown Beverage Amulspray Infant Milk Food Amul Cheese Amul Malai Paneer Amul Skimmed Milk Powder Amul Full Cream Milk Powder Bulk Packs • • Many of our products are now available in the USA. 38 . Gulf Countries and Singapore.GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status.
More so. Profit Margins: Even in case of products like packed liquid milk. 5. the product line could be extended without the risk of cannibalization. the profit margin is reasonably high.1 STRENGTHS: Optimistic Demand Profile: The per capita consumption of milk and milk products is low. especially when major part of the milk is produced in the rural areas.2 SWOT ANALYSIS OF DAIRY INDUSTRY: 5. with the general economic development. Raw Materials: Milk is available abundantly for processing. However the condition is showing improvement over the years. Product Mix: This is very flexible. scientific breeding.1.5. and also it offers greater cost advantages. at 132gm per day. in case of processed products. when coupled with growth in population. Competition: The entry of deep-pocketed MNCs has marked a paradigm shift towards global standards in procurement of milk to distribution of finished products.bad roads. This. Operation Flood has successfully increased the production of milk. it is still an issue. gives rise to an increasing market. but it is a long-drawn process. and synergies. Transportation of Milk: This is the bane of India--. Production Control: Improvement in milk production is possible through adoption of new.2WEAKNESSES: Perish ability: Although Pasteurization has reduced this problem to a large extent.1. Only it needs to be channelised properly. albeit from the unorganized sector. The proliferation of urban population spurs the demand for processed products like cheese and butter. 39 .
5. and the Middle East.5. addition of new products. and diversification into new product range will provide new area of growth. and here lies the problem. packaging and presentation will generate huge scope of value addition for all the players. Sri Lanka.1. Export: There is huge opportunities of growth through exports. Nigeria. Amul is already exporting to Bangladesh.2 Conclusion 40 . This sector is largely unorganized. 5.4 THREATS: The biggest problem for the dairy industry comes from the milk vendors. Forward integration like retailing.3 OPPORTUNITIES: Value Addition: Product development. who are the source of the raw materials. Even after the successful Operation Flood.1. much remains to be done about organizing the actual producers of milk.
how it was originated.According to the study made on Amul Company.H.T milk in India which made the boom to the company. AMUL. They got a good marketing concept. 41 . this project provides a vast information about this company. This company was the first Indian based company which has launched U. The company has launched many products in the market which generally liked by the customers. detail knowledge about its founder. It also tells that the company is playing a vital in increasing their market value by attracting the customers towards their products. their competitors. They got very good strategic plans which are helping them in moving ahead with the logo THE TASTE OF INDIA.
org OTHER SOURCES : An Unfinished Dream by Dr Verghese Kurien Company Annual Report vi . Prentice Hall Kothari CR. 13th Edition (South Asian Perspective).amul. Koshy Abraham.BIBILIOGRAPHY BOOKS REFFERED : Kotler Philip. Keller K. New Delhi WEBSITES : www. Pvt Ltd. Research Methodology . Marketing Management. Vikas Publishing House. 3rd Edition 1997.L. Jha Mithileshwar.worldfoodprizes.com www..
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