1

A
PROJECT REPORT
ON
MARKETING STRATEGY OF AMUL
( MMM-A + PGDM )

SUBMITTED BY:

SIDDARTH RAVINRAN

JAYDEV KUMAR

NIRAJ KUMAR PANDAY

DHARMENDRA PRASAD

SANDEEP KUMAR

RAKESH KUMAR

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND RESEARCH

2010-2012
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ACNOWLEDGEMENT

We extend my sincere thanks to Mr. Swapnil Patil for providing us the opportunity to
work on this project.

We express our deep sense of indebtness to him because he has been the moving force
behind the successful accomplishment of the project we thank him for taking time out of
his busy schedule and guiding me in the project.

We would also like to thank our project guide Swapnil Patil and faculty members for their
valuable guidance and encouragement at all the stages of the project.
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PREFACE

The success of any business entity solely depends on how effectively does it utilizes its optimum
resources and how soon does it make arrangements for the removal of the customer’s grievances.
Moreover, the company should always be ready to make necessary changes according to the
requirement in order to attract more customers so as to maintain a substantial growth in the
market. The topic given to me was:

“MARKETING STRATEGIES AMUL”

We have tried to put our best efforts to complete this task on the basis of skill that we have
achieved during our studies in the institute. We have tried to put my maximum effort to get the
accurate statistical data. If there is any error or any mistake in collecting the data, please ignore
it.
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INDEX

 Objectives of the project

 Introduction of the Topic
 Company profile of Amul
 Amul and co-operation
 GCMMF
 PEST Analysis amul
 4P’s of markering
 Comparison between chocolate companies
 Conclusion
 Bibliography
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OBJECTIVES OF THE PROJECT

The main objective of the study on this project is to demonstrate the marketing strategies of
Amul India Ltd. And to arrive at my findings, I have done PEST analyses.

And also 4 P’s of Marketing:-

• Product
• Price
• Physical Distribution
• Promotion

INTRODUCTION TO THE TOPIC

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.
The topic “To study about Strategy and Market Share of Amul chocolates“ highlights on the
market share of Amul Chocolates Pune city in comparison to existing player in the Milk
chocolate Market.
The market share can be found with the help of retailers. As the competitors are concerned there
are only two of them i.e. Cadbury and Nestle
The study is also concerned to find out the various reasons due to which the retailers do not
prefer to sell Amul Chocolates. Moreover the study also helps in knowing the best medium for
creating the awareness about the Amul Chocolates.
To know the Market share and problems faced by retailers is very important for every
organization for their promotion, expansion and development.

COMPANY PROFILE
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1. Formed in 1946, Amul has initiated the Dairy Cooperative movement in India and formed an
Apex Cooperative Organization, Gujarat Co-operative Milk Marketing Federation Ltd.
(GCMMF), jointly owned by some 2.1 million milk producers in Gujarat, India. Its products,
including milk powders, liquid milk, butter, ghee, cheese, chocolate, ice cream and pizza
are widely used throughout India and abroad and have made Amul the largest food brand in
India today with an annual turnover of some Rs.29 Billion ($US 616 million) per annum.

2. The primary goal of Dr. V. Kurien, Chairman, GCMMF, has been to build a strong Indian
society economically through an innovative cooperative network, to provide quality service and
products to end- consumers and good returns to the farmer members. Dr. Kurien states, “We
have traversed a path that few have dared to. We are continuing on a path that still fewer have
the courage to follow. We must pursue a path that even fewer can dream to pursue. Yet, we
must. We hold on trust the aims and aspirations o millions of our countrymen”.

3. Information Technology has played a significant role in developing the Amul brand. The
logistics behind co-ordinating the collection of some 6 million litres of milk per day from
10,755 separate Village Cooperative Societies throughout Gujarat and then storing, processing
and producing milk products at the respective 12 District Dairy Unions, are awesome. The
installation of 3000 Automatic Milk Collection System Units (AMCUS) at Village Societies to
capture member information, milk fat content, volume collected and amount payable to each
member has proved invaluable in ensuring fairness and transparency throughout the whole
Amul organization.

4. In 1996 Amul was one of the first major organizations in India to have a website and this has
been used both to develop an intranet of Amul distributors as well as a cyber-store for
consumers, one of the first examples of e-commerce activity in India.

AMUL AND CO-OPERATION

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The CEO, Mr. B M Vyas, said that. “Amul is not a food company; it is an IT company in the
food business”. In saying this he was recognizing that the most efficient way of building links
between milk producers and consumers so as to provide the best returns for the both is through
IT innovation.

Thus is why Amul has embraced the ideas behind coop with such enthusiasm. Not only will the
TLD enable consumers in India to recognize an established brand they can trust online, it will
enable Amul to begin trading competitively throughout the world, reaching markets, which have
hitherto been inaccessible.

The CIO, Mr. Subbarao Hegde said, “Information Technology is the most effective tool we have
in communicating with our members and the millions of consumers who purchase Amul
products throughout India every day. Coop not only reflects the cooperative values which shape
our own organization democratically dynamic, it will also give us a vital business advantage as
we seek to develop the Amul brand throughout the world.”

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 home since 1946.
Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates,
Amul Shrikhand, Amul Ice cream, Nutramaul, Amul Milk and Amulya have made Amul a
leading food brand in India. (Turnover: Rs. 29 billion in 2004). Today Amul is a symbol of many
things. Of high-quality products sold at reasonable prices.
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GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION

(GCMMF)

An Overview: -
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India’s largest food
products marketing organization. It is state level apex body of milk cooperative 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 Producers Members 2.36 million
No. of Village Societies 11,333
Total Milk handling capacity 6.9 million liters per day
Milk collection (Total –2002-03) 1.86 billion liters
Milk collection (Daily Average (2003-04) 4.97 million liters
Milk Drying Capacity 511 metric Tons per day
Cattle feed manufacturing 2340 Mats per day
Capacity:

Rs
Sales Turnover (million) US $ (in millions)
1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2005-06 37736 850
2006-07 42778 1050
2007-08 52448 1325
2008-09 67113 1504
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PEST ANALYSIS OF AMUL

P-) Since the budget range is decontrolled, no political effects are envisaged.

E-1) Increasing per capita income resulting in higher disposable income

2) Growing middle class/urban population – increase in demand.
3) Low cost of production – better penetration.

S-1) Per capita consumption expected to increase – fashion.

2) Increasing gifts culture – increase in demand.

3) Lower cholesterol than “Mithais” (sweet meat) – substitute demand

T-) Will have to reinforce technology to international levels once India is a “free” economy
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4 P’S OF MARKETING

PRODUCT:-

Satisfaction suffices. But delight dazzles the average company will compete for customer by

conforming to her expectation consistently. But the winner will surpass them by constantly

exceeding her expectation, delivering to her door step additional benefits which she would never

have imagined possible. Cadbury’s offer such product. The wide variety products offered by the

company include:

List of Products Marketed: -

Breadspreads:
 Amul Butter
 Amul Lite Low Fat Breadspread
 Amul Cooking Butter

Cheese Range:
 Amul Pasteurized Processed Cheddar Cheese
 Amul Processed Cheese Spread
 Amul Pizza (Mozarella) Cheese
 Amul Shredded Pizza Cheese
 Amul Emmental Cheese
 Amul Gouda Cheese
 Amul Malai Paneer (cottage cheese) Frozen and Tinned
 Utterly Delicious Pizza

Mithaee Range (Ethnic Sweets):

 Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
 Amul Amrakhand
 Amul Mithaee Gulabjamuns
 Amul Mithae Gulabjamun Mix
 Amul Mithaee Kulfi Mix

UHT Milk Range:

 Amul Taaza 3% fat Milk
 Amul Gold 4.5% fat Milk
 Amul Slim-n-Trim 0% fat Milk
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 Amul Chocolate Milk

 Amul Fresh Cream
 Amul Snowcap Softy Mix
 Amul Taaza Double Toned Milk

Pure Ghee:
 Amul Pure Ghee
 Sagar Pure Ghee
 Amul Cow Ghee

Infant Milk Range:

 Amul Infant Milk Formula 1 (0-6 months)
 Amul Infant Milk Formula 2 (6 months)
 Amulspray Infant Milk Food

Milk Powders:
 Amul Full Cream Milk Powder
 Amulya Dairy Whitener
 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 Standardised Milk 3% fat
 Amul Smart Double Toned Milk 1.5% fat

Curd Products:
 Amul Masti Dahi (fresh curd)
 Amul Butter Milk ,Amul Lassee

Amul Icecreams:
 Royal Treat Range (Rajbhog, Cappuccino, Chocohips, Butterscotch, Tutti Frutti)
 Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kerar Carival,
Badshahi Badam Kulfi, Shista Pista Kulfi)
 Utsav Range (Anjir, Roasted Almond)
 Simply Delicious Range ( Vanilla, Strawberry, Pineapple, Rose, Chocolate)
 Nature’s Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black
Currant)
 Sundae Range (Mango, Black Currant, Chocolate, Strawberry)
 Millennium Icecream (Cheese with Almonds, Dates with Honey)
 Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly,Shahi Badam Kulfi, Shahi
Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)
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 Cool Candies (Orange, Mango)

 Cassatta
 Tricone (Butterscotch, Chocolate)
 Megabite Almond Cone
 Frostik – 3 layer chocolate Bar
 Fundoo Range – exclusively for kids
 SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple)
 Health: Isabcool

Chocolate & Confectionery:

 Amul Milk Chocolate
 Amul Almondbar
 Amul Fundoo
 Amul Chocozoo
 Amul Bindaaz
 Amul Fruit & Nut Chocolate

Brown Beverage:
 Nutramul Malted Milk Food

Milk Drink:
 Amul Shakti Flavoured Milk

Ready to Serve Soups:

 Masti Hot & Sour Soup
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PRICING:-

Second P of marketing is not another name for blindly lowering prices and relying on this
strategy alone to increase sales dramatically. The strategy used by Cadbury’s is for matching the
value that customer pays to buy the product with the expectation they have about what the
production is worth to them.

 AMUL has launched various products which cater to all customer segments. So every
customer segment has different price expectation from the product. Therefore
maximizing the returns involves identifying right price level for each segment, and then
progressively moving through them.

In milk chocolate Amul has the following brands:

Name of chocolate Weight Price

(Rs.)

Amul Milk Chocolate 35g 10

Amul Fundoo 30g 10

Amul Fundoo 15g 5

Amul Fruit Nut 35g 15

Amul Bindaaz 30g 10

Amul Almondbar 35g 10

Amul Chocozoo 500g(Tub) 138

All the chocolates are
made up of:

Milk Fat - (2%)

Sugar - (55%)
Cocoa Solids - (7.5%)
Solid Milk - (20%)
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Physical Distribution – “Place”

In a product and price parity situation, the brand that sells more is the one that reaches the
highest number of customers. India – 1 billion people, 155 million household has over 4 million
retail outlets in 5351 urban markets and 552725 villages, spread cross 3.28 million sq.

Promotion

If an advertisement is to communicate effectively, the receiver must at least half want it to, and
be prepared too take step toward the sender. Effective advertising is rarely hectoring or loudly
explicit…. It often both attracts and generates arm feelings. More often than not, a successful
campaign has a stronger element of the unexpected a quality that good advertising shares with
much worthwhile literature.

To penetrate into the inner recesses of her memory, communication must first ensure exposure,
grab her attention evoke her comprehension, grab her acceptance and then extract retention
competing with thousands of other units of communication trying to do the same.
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COMPARISION BETWEEN CHOCOLATE COMPANIES

1) Name of Chocolate Companies and their penetration in market-

The table below deals in finding the numbers of retailers that sells different company chocolates
and their penetration in markets.
Table 1.1

Chocolate companies and their penetration

Name of company No of shops

Amul 20
Cadbury 149
Nestly 148
Other 18

Graph 1.1

Chocolate companies and their penetration

160 149 148

140
120
100
80
60
40
20 18
20
0
Amul Cadbury Nestle Others

The graph 1.1 shows the number of retailers selling different company chocolates. There are
only 20 retailers i.e. 13.33% who deal in Amul chocolates. The percentage is very less compared
to Cadbury and Nestle.
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2) Market share

The table below deals in finding the Market Share of Amul Chocolates and other companies
chocolate.

Table 2.1
Market Share

Name of company Total Sale Market share

(%)
(Per month)

Amul Rs. 3130 00.84%

Cadbury Rs. 239750 64.5%

Nestle Rs. 125940 33.9%

Others Rs. 2500 00.67%

Total Rs. 371320 100%

Graph 2.1

Market Share

34% 1%
Amul
Cadbury
Others
1% 65% Nestle

The graph 2.1 shows the market share of different company chocolates in terms of rupees. From
the graph we can say that the market share of Amul chocolates is only 1%, which is very less,
compared to other companies. Cadbury has the maximum share of 64.5%.

3) a) Brands of Amul chocolates sold on Amul chocolate Outlet.

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The table below helps in finding the different brands of Amul Chocolates that is available on
Amul Chocolate Outlet. A shop that sells even one Amul Chocolate is an Amul Chocolate
Outlet
Table 3.1
Brand of Amul Chocolates & their selling percentage

Name of chocolate No. Of Amul chocolate

Outlet

A Amul Milk chocolate 8

B Amul Fundoo 4

C Amul Fruit n Nut 11

D Amul Bindaaz 4

E Amul Almondbar 16

F Amul Chocozoo 6

G Amul Rejoice 0

H All Chocolates 0

Brand of Amul Chocolates & their selling percentage

16
16
14
11
12
10 8
8 6
6 4 4
4
2 0 0
0
A B C D E F G H

Graph-3.1
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The Graph 3.1 above shows that Amul Almond Bar is sold at most of the Amul Chocolate outlet
followed by Amul fruit n Nut & Amul Milk Chocolate. There is not a single outlet that sells
Rejoice.

3) b) Ordering Pattern
The table below deals in finding the ordering pattern for Amul Chocolates.

Table 3.2

Ordering Pattern
Option No. of Retailers

Daily 0

Weekly 0

Monthly 20
Graph 3.2
Ordering Pattern

25
20
20
15
10
5
0 0
0
Daily Weekly Monthly

The graph 3.2 shows the ordering pattern followed by Amul Chocolate outlets. It is seen that
almost all of them order once in a month since their demand is very less.

4) Financial Support for promotion.

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The table below deals in knowing whether the company provides any financial
support for promotion to Amul chocolate outlets.

Table 4.1
Financial Support For Promotion

Option No. of Retailers

Yes 0

No 20

Graph 4.1

Financial Support for Promotion

20
20

15

10

5 0
0
Yes No

The graph 4.1 shows the financial support for promotion. From the graph we can say that

according to the retailers the company does not provide any financial support for promotion.
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5) Reasons for not selling Amul Chocolates.

The table below deals in finding the reasons for retailers due to which they do not sell Amul
Chocolates.
Table 5.1
Reasons For Not Selling Of Amul Chocolates

Reasons No. of Retailers

A Distribution & Service problem 108

B Low demand 73
C Low Margin 98
D Replacement Problem 45
E No Refrigerator 21
F Not Interested 15

Graph 5.1
Reasons For Not Selling Amul Chocolates

120 108
98
100
73
80

60 45

40
21
15
20

0
A B C D E F

The graph 5.1 shows the various reasons due to which the retailers do not sell Amul

chocolates. From the graph we can say that Distribution & Service problems and Low

Margin are the major reasons followed by Low demand and Replacement problem because

of which the retailers do not want to sell Amul chocolates.

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6) Reasons for Preference in selling other company chocolates.

The table below deals with finding the reasons due to which the retailers prefer to sell other
company chocolates and not Amul chocolates.

Table 6.1
Reasons For Selling Other Company Chocolate
Reasons No. of
Retailers

A Good Distribution and Service 97

B More Demand 105
C Higher Margin 73
D Better Replacement 23
E More Benefit 30

Graph 6.1
Reasons For Selling Other Company Chocolate

120 105
97
100
73
80
60
30
40 23
20
0
A B C D E

The graph 6.1 shows the reasons for which the retailers prefer to sell other company

chocolates. The major reasons are the More demand of other company chocolates, Good

service as well as Higher Margin.

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7) The most attractive scheme.

The table below deals with finding the most attractive scheme according to the retailers.

Table 7.1
The most Attractive Scheme

Different Schemes No. of Retailers

Incentive Scheme 34
Free Pack on Large Purchase 40
Increase Profit Margin 79
Lucky Draw 25

Graph 7.1
The Most Attractive Scheme
100
79
80
60
40
40 34
25
20
0
Incentive Free Pack on Increase Profit Lucky Draw
Scheme Large Purchase Margin

The graph 7.1 shows show the Different Schemes for attracting the retailers for selling

Amul Chocolates. Mostly the retailers are attracted towards increased Profit Margin

followed by Free Pack on large purchase.

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8) Mediums for Creating Awareness.

The table below deals in finding the most appropriate medium for creating awareness.

Table 8.1
Effective Medium

Option No. Of Shops

More TV / News paper 150

Advertisement
Banners 62
Gift/Coupons 48
Graph 8.1
The Effective Medium

160 150
140
120
100
80 62
60 48
40
20
0
More TV / News Banners Gift/Coupons
paper Adver-
tisement

The graph 8.1 shows the different effective mediums for creating awareness about the Amul
chocolates. According to all of the retailers, the most effective medium is TV and
Newspaper advertisement.
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CONCLUSION

As we know that Amul is very big organization and market leader in dairy products. It has
maximum market share in Milk, Butter and Cheese, which are its main/core products. As we know
Amul is a co-operative organization but chocolate industry is a profitable industry we can’t ignore
it. With the help of research, company can find out its week points in chocolate product and can
increase its market share through rectify mistakes. People have believed in Amul’s product and
they will accept its chocolates also if effective actions were taken. The survey resulted into
following conclusions :

 Amul must come up with new promotional activities such that people become aware
about Amul Chocolates like Chocozoo, Bindaaz, and Fundoo.

 Quality is the dominating aspect which influences consumer to purchase Amul product,
but prompt availability of other chocolate brands and aggressive promotional activities by
others influences the consumer towards them and also leads to increase sales.

 In comparison to Amul Chocolate, the other players such as Cadbury, Nestle, are provide
a better availability and give competition to the hilt.

 People are mostlysatisfied with the overall quality of Amul Chocolate, but for the
existence in the local market Amul must use aggressive selling techniques.
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BIBLIOGRAPHY

1. www.amul.com
3. www.google.com
4. www.marketresearch.com
5. www.dairy.com
6. Research Methodology. (Harper W.Boyd, C. R. Kothari

swapnilpatil2k@gmail.com