MINOR PROJECT REPORT

ON
MARKETING STRATEGY OF AMUL

Submitted in partial fulfillment of the requirement of

Bachelors of Business Administration (BBA)

Guru Gobind Singh Indraprastha University, Delhi

Session 2016-17

SUBMITTED TO: Submitted By:

MR SAJEEVAN RAO SHREYA SAXENA

DIRECTOR
BBA 1ST sem

Enrolment no:

51125501715

UNITED COLLEGE OF EDUCATION

48/4, Knowledge Park III, Greater Noida-201306
(U.P) Guru Gobind Singh Indraprastha University,
Delhi
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 INDEX

S.NO. TOPIC PAGE

NO.
1. CONCEPTUAL DISCUSSION 8

2. INTRODUCTION 14
2.1 Overview of Industry as whole
2.2 Profile of the Organization
2.3 Problems of the Organization
2.4 Competition Information
2.5 S.W.O.T Analysis of the Organization

3. RESEARCH METHODOLOGY 35
3.1 Overview of the Project
Objective of Studies
3.3 Purpose of Study

4. ANALYSIS / STUDY OF TOPIC 38

5. FINDINGS/ OBSERVATIONS 44

6. RECOMMENDATIONS 45

7. CONCLUSION 46

8. BIBLIOGRAPHY 47

2
 DECLARATION
I hereby declare that this Minor Project Report titled “Marketing Strategies of
AMUL” submitted by me to UCE, Greater Noida is a bonafide work undertaken and
has not been submitted to any other University or Institution for the award of any
degree diploma / certificate or published any time before.

(Signature of the Student) Date:13 /03 /2022

Name: SHREYA SAXENA

Enroll. No.: 51125501715

3
 BONAFIDE CERTIFICATE

This is to certify that as per best of my belief the project entitle“ marketing strategies of
AMUL” is the bonafide research work carried out by SHREYA SAXENA student of
BBA, UCE, Greater Noida, in partial fulfillment of the requirements for the Minor
Project Report of the Degree of Bachelor of Business Administration.

Name: MR SAJEEVAN RAO

Project Guide

Date:13/03/2022

4
 ACKNOWLEDGEMENT

On the onset I would like to take this opportunity to thank Mr. Pavan Singh, chief general
manager and marketing head of marketing planning and research of “Amul Pvt. ltd” for
providing his invaluable support, suggestions and guidance during the course of my
minor project. I would not have been able to learn so much without his mentoring.

I am highly indebted to MR SAJEEVAN RAO, whose constant guidance and prudent

suggestions went a long way in the successful completion of the project.

Last but not the least I want to thank the almighty by whose grace I was able to complete
the project in the stipulated time.

SHREYA SAXENA

BBA 1ST Semester

ENROLL NO.:

5
 Executive summary

AMUL is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.

Formed in 1946, 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.

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.

The establishment of Amul is known as White Revolution.

The White Revolution inspired the notable Indian film-maker Shyam Benegal to base his
film Manthan (1976) on it. It starred Smita Patil, Girish Karnad, Naseeruddin Shah and
Amrish Puri. The film was financed by over five lakh rural farmers in Gujarat who
contributed Rs 2 each to its budget. Upon its release, these farmers went in truckloads to

6
watch 'their' film, making it a commercial success. Manthan was chosen for the 1977
National Film Award for Best Feature Film in Hindi.

CHAPTER 1

CONCEPTUAL DISCUSSION

What is 'Marketing'

Marketing are activities of a company associated with buying and selling a product or
service. It includes advertising, selling and delivering products to people. People who
work in marketing departments of companies try to get the attention of target audiences
by using slogans, packaging design, celebrity endorsements and general media exposure.

Features of Marketing

1. Need and Want:

Marketing is the process of fulfilling the needs and wants of the consumers. This is why
people get attracted to this process.All the people have almost the same needs but their
wants happen to be different, e.g., feeling hungry is a need but satisfying it by eating only
sambhar and dosa is a want. A seller tries to find out the needs of the consumers and how
those needs are to be satisfied.

2. Creating a Market Offering:

The second feature of marketing is creating market offering. It refers to providing

complete information about the product and services, e.g., providing information about
the name of the product and service, type, price, size, centre of availability, etc. A good

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market offer is always prepared keeping in mind the needs and priorities of the
customers.

3. Customer Value:

A buyer analyses the cost and the satisfaction that a product provides before buying it.
When he/she finds that the satisfaction that it provides outweighs the cost factors, only
then he/she buys it.

The seller should manufacture the product keeping in view this tendency of the customer.
A seller who does not pay attention to the importance that a buyer pays to a product is
sure to lag behind in the race of competition.

4. Exchange Mechanism:

Exchange has a special importance in marketing. Literal meaning of marketing is

exchanging things. Marketing has two sides-buyer and seller. Marketing becomes
possible only by the medium of exchange between the two.

For example, the seller gives goods and services and in exchange the buyer gives money
or something equivalent to it. These days the distance between the place of production
and the place of consumption has increased.

To lessen this distance the help of many intermediaries like the agents, wholesalers,
retailers, etc., is taken. All these reduce this distance through the medium of marketing.
Therefore, it can be said that exchange is the essence of marketing following things are
important in respect of exchange.

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(a) The presence of two sides the buyer and the seller.

(b) Both should be capable of playing each other something, e.g., money in exchange of
product.

(c) Both must have the ability to communicate. In the absence of communication no
buying and selling can take place.

(d) Both do the transaction independently and without any pressure.

(e) Both the parties make transaction for their own satisfaction.

Functions of Marketing

1. Gathering and Analysing Market Information

2. Marketing Planning

3. Product Designing and Development

4. Standardisation and Grading

5. Packaging and Labelling

6. Branding

7. Customer support service

8. Pricing of products

9. Promotion

10. Physical distribution

11. Transportation

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12. Storage or warehousing.

Meaning of Marketing Process

The Marketing Process of a company typically involves identifying the viable and
potential marketing opportunities in the environment, developing strategies to effective
utilise the opportunities, evolving suitable marketing strategies, and supervising the
implementation of these marketing efforts.

Marketing process involves ways that value can be created for the customers to satisfy
their needs. Marketing process is a continual series of actions and reactions between the
customers and the organizations which are making attempt to create value for and satisfy
needs of customers. In marketing process the situation is analysed to identify
opportunities, the strategy is formulated for a value proposition, tactical decisions are
taken, plan is implemented, and results are monitored.

Steps in Marketing Process :

Following are the steps involved in the Marketing Process :-

 Situation Analysis
 Marketing Strategy
 Marketing Mix Decision
 Implementation and Control

1. Situation Analysis

Analysis of situation in which the organisation finds itself serves as the basis for
identifying opportunities to satisfy unfulfilled customer needs. Situational and

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environmental analysis is done to identify the marketing opportunities, to understand
firms own capabilities, and to understand the environment in which the firm is operating.

2. Marketing Strategy

After identifying the marketing opportunities a strategic plan is developed to pursue the
identified opportunities.

3. Marketing Mix Decisions

At this step detailed tactical decisions are made for the controllable parameters of the
marketing mix. It includes - product development decisions, product pricing decisions,
product distribution decisions, and product promotional decisions.

4. Implementation and Control

Finally, the marketing plan is implemented and the results of marketing efforts are
monitored to adjust the marketing mix according to the market changes.

Marketing mix

Marketing mix is a business tool used in marketing and by marketers. The marketing mix
is often crucial when determining a product or brand's offer, and is often associated with
the four Ps: product, price, promotion, and place. In service marketing, however, the four
Ps are expanded to the seven Ps: process, people, physical environment or Seven Ps to
address the different nature of services.

Marketing strategy

Marketing strategy has the fundamental goal of increasing sales and achieving a
sustainable competitive advantage. Marketing strategy includes all basic, short-term, and
long-term activities in the field of marketing that deal with the analysis of the strategic

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initial situation of a company and the formulation, evaluation and selection of market-
oriented strategies and therefore contribute to the goals of the company and its marketing
objectives.

Factors of influence on marketing strategies

In addition to the controllable marketing mix factors, there are uncontrollable factors
called environmental forces. The external influences are the forces that affect the
characteristics of the marketing strategies to which marketers adapt. Amongst others they
include: regulatory, economic, social, political environmental, competitive, and
technological.

• Regulatory: This refers to laws and legality (governmental policies) that may affect the
way marketing can be characterized. For example, government restriction on the
importation of a particular product might hinder the marketers playing in that particular
field.

• Economic. Various trends in the economic business cycle, including inflation,

recessions, deficit, or income level. Each of these factors can have a direct impact on
marketing which may have to be re-evaluated and overhauled as a result.

• Social: The social forces refer to the structure and dynamics of individuals and groups
and their behaviors, beliefs, thought patterns, and lifestyles, friendships, etc. When
consumers change their needs and wants, this directly affects marketing strategies.

• Political: The socio-economic conditions are closely related to the state of the
governmental institutions. Depending on the governmental impact on bureaucracy,
corruption, freedom of speech, and other limitations (or opportunities), the marketing
strategies will adapt to the political conditions.

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• Competitive: Competition refers to the numbers of similar competitive product brands.
A new competitor entering the market will directly affect the marketing strategies of the
incumbent companies. Firms offering similar services or products often achieve
differentiation through marketing, positioning, and branding.

• Technological: The marketing strategies often adapt to the pace of development of the
consumer demand and exponential technological progression.

Chapter -2 Introduction

Overview of industry as whole

The vital statistics of the confectionery segment seem more promising than the
conventional FMCG categories such as toilet soaps or detergents. While toilet soaps and
detergents already reach over 90 per cent of the households, both chocolate and sugar
confectioneries have abysmally low penetration levels.

Today, India is 'The Oyster' of the global dairy industry. It offers opportunities in large
number to entrepreneurs worldwide, who wish to capitalize on one of the world's largest
and fastest growing markets for milk and milk products. The Indian dairy industry is
rapidly growing, trying to keep pace with the galloping progress around the world. It may
transfer technology, sign joint ventures or use India as a sourcing center for regional
exports.

India’s dairy sector is expected to triple its production in the next 10 years in view of
expanding potential for export to Europe and the West. Moreover with WTO regulations
expected to come into force in coming years all the developed countries which are among
big exporters today would have to withdraw the support and subsidy to their domestic
milk products sector.

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 View to Indian Dairy

Size of the Industry More than 10 million dairy farmers belong to

96,000 local dairy cooperatives, who sell their
product to one of 170 milk producers’
cooperative unions who in turn are supported
by 15 state cooperative.
Geographical distribution Delhi, Punjab, Mumbai, Gujarat, Surat,
Lucknow, Bihar, Hyderabad.
Output per annum Growing 5 % per annum.

Market Capitalization The industry contributes about Rs 1,15,970 to

the national economy.

Abbreviations & Important Terms:

 AMUL- Anand Milk Union Limited.

 GCMMF- Gujarat Co-operative Milk Marketing Federation Ltd.
 FMGC- Fast Moving Consumers Goods
 Dr. Verghese Kurien – Founder- chairman of the GCMMF.

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 COLLECTION OF MILK AT A VILLAGE SOCIETY

Profile of organization

“In today’s brand strategies, the word ‘anticipation’ bcomes more important than
‘prediction’. We no longer have the luxury of being reactive, we need to address not only
the definite needs of consumers, but the unclear needs as well.’’ But when it comes to our
basic needs, consumer wants to believe on a single brand if it provides its customers a
feeling of full satisfaction is AMUL. The brand name Amul means “AMULYA”. This
word derived from the Sanskrit word “AMULYA” which means “PRICELESS”. A
quality controlexpert in Anand had suggested the brand name “AMUL”.

Amul products have been in use in millions of homes since 1946. Amul Butter, Amul
Milk Powder, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have
made Amul a leading food brand in India.

The Milk Cooperative company AMUL is the sole Indian brand & the most popular
brand in FMCG sector. Also, AMUL is ranked No.1 dairy brand not just in India but
across the Asia Pacific regions & competing with global brands like Dutch, Dumex,
Anchor etc. It was listed 4th India brands for 2009 & 2010 as well.

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AMUL`S TAGLINE :- AMUL THE TASTE OF INDIA

Revenue US$3.4 billion (2014–15)

Employees750 employees of Marketing Arm. However, real pool consist of 3.6

million milk producer members
FULL FORM OF AMUL : ANAND MILK UNION LIMITED.

Anand milk union lmt. Was formed as a cooperative dairy in the small town of anand (in
kaira district of Gujarat) in 1946. AMUL is the largest manufacturer of Milk and Milk
products in India. It operates through 56 Sales Offices and has a dealer network of 10000
dealers and 10 lakh retailers, one of the largest such networks in India. Its product range
comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese,Ice-
cream, Paneer, chocolates, and traditional Indian sweets, etc.

The Amul Plant at Anand showing the milk silos

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AMUL created an economic network that links village milk producers with millions of
consumers in India. started with the sale of milk,the company now produces wide range
of milk products.

Advertisement of AMUL BUTTER . WHOSE TAGLINE IS Utterly Butterly Delicious

Amul.

HISTORY

Amul the co-operative registered on 1 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. Moreover, the government had given
monopoly rights to Polson to collect milk from mikka and supply it to Bombay city.

17
Angered by the unfair trade practices, the farmers of Kaira approached sardar vallabhbhai
patel under the leadership of local farmer leader Tribhuvandas Kishibhai 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 organise 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.

The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon
spread to Anand's neighbourhood in Gujarat.

THE STORY OF AMUL

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 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

Adding to the success, Dr. Madan Mohan Kashyap (faculty Agricultural and Engineering
Department, Punjab Agricultural University Ludhiana), Dr. Bondurant (visiting faculty)
and Dr Feryll (former student of Dr Verghese Kurien), visited the Amul factory in
Gujarat as a research team headed by Dr. Bheemsen. Shivdayal Pathak (ex-director of the
Sardar Patel Renewable Energy Research Institute) in the 1960s.

A milk pasteurization system at the Research Centre of Punjab Agricultural University

(PAU) Ludhiana was then formed under the guidance of Kashyap.

In November 2015, KM Jhala was appointed as the chief operating officer. Jhala was
previously the chief general manager before this appointment .

ANY TIME MILK (ATM) MACHINE :

Amul has installed a "Any Time Milk" machine which dispenses a 300-ml pouch of fresh
milk for Rs 10, at Anand's Amul Dairy. As a first step, Amul plans to install six such
ATMs in Anand itself. According to Dr. K Rathnam, MD of Amul Dairy, Amul wants to
add a whole range of dairy products, which could be dispensed through these machines.

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 The Amul Model

The Amul Model of dairy development is a three-tiered structure with the dairy
cooperative societies at the village level federated under a milk union at the district level
and a federation of member unions at the state level.

 Establishment of a direct linkage

between milk producers and
consumers by eliminating
middlemen

 Milk Producers (farmers) control

procurement, processing and
marketing

 Professional management

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 THE AMUL MODEL

The Amul model has helped India to emerge as the largest milk producer in the world.
More than 15 million milk producers pour their milk in 1,44,500 dairy cooperative
societies across the country. Their milk is processed in 184 District Co-operative Unions
and marketed by 22 State Marketing Federations, ensuring a better life for millions.

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 The Amul brand

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has
nearly 50 sales offices spread all over the country, more than 5000 wholesale dealers and
more than 700000 retailers.

Amul became the world's largest vegetarian cheese and the largest pouched-milk brand.

AMUL is also the largest exporter of dairy products in the country. AMUL is available
today in over 40 countries of the world. AMUL is exporting a wide variety of products
which include whole and skimmed milk powder, cottage cheese (Paneer), UHT milk,
clarified butter (Ghee) and indigenous sweets.

The major markets are USA, West Indies, and countries in Africa, the Gulf Region,
and SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China, and
others such as Mauritius, Australia, Hong Kong and a few South African countries. Its
bid to enter the Japanese market in 1994 did not succeed, but it plans to venture again.

In September 2007, Amul emerged as the leading Indian brand according to a survey by
Synovate to find out Asia's top 1000 Brands.

In 2013, Amul was named the Most Trusted brand in the Food and Beverages sector
in The Brand Trust Report, published by Trust Research Advisory.

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 AMUL PRODUCTS

The three-tier "Amul Model"

The Amul Model is a three-tier cooperative structure. This structure consists of a dairy
cooperative society at the village level affiliated to a milk union at the district level which
in turn is federated into a milk federation at the state level. Milk collection is done at the
village dairy society, milk procurement and processing at the District Milk Union and
milk and milk products marketing at the state milk federation. The structure was evolved
at Amul in Gujarat and thereafter replicated all over the country under the Operation
Flood programme. It is known as the 'Amul Model' or 'Anand Pattern' of dairy
cooperatives.

The main functions of the VDCS are:

 Collection of surplus milk from the producers of the village and payment based
on quality and quantity,

 Providing support services to the members like veterinary first aid, artificial
insemination services, cattle-feed sales, mineral mixture sales, fodder and fodder seed
sales, conducting training on animal husbandry and dairying,

 Selling liquid milk for local consumers of the village,

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 Supplying milk to the District Milk Union.

Impact of the "Amul Model"

The effects of Operation Flood Programme are appraised by the World Bank in an
evaluation report. It has been proved that an investment of Rs. 20 billion over 20 years
under Operation Flood in the 1970s and 80s has contributed in increase of India’s milk
production by 40 million metric tonnes (MMT), i.e., from about 20 MMT pre-Operation
Flood to more than 60 MMT at the end of Operation Flood.

Thus, an incremental return of Rs. 400 billion annually have been generated by an
investment of Rs. 20 billion over 20 years. India’s milk production continues to increase
and now stands at 90 MMT(as of 2012). Despite this fourfold increase in production,
there has not been a drop in the prices of milk during the period while production has
continued to grow.

Due to this movement, the country’s milk production tripled between the years 1971 and
1996. Similarly, the per capita milk consumption doubled from 111 gm per day in 1973
to 222 gm per day in 2000

Products

Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti
Dahi, Yoghurt, Buttermilk, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns,
flavoured milk, basundi, Amul Pro brand and others.

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 Amul PRO is a recently launched brown beverage just like bournevita and horlicks
offering whey protein, DHA and essential nutrients.

In January 2006, Amul launched India's first sports drink, Stamina, which competes
with Coca Cola's Powerade and PepsiCo's Gatorade.

Amul offers mithaimate which competes with Milkmaid by Nestle by offering more fat at
lower price.

In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its
product offering in the milk products segment.

Other Amul brands are Amul Kool, a low-calorie thirst quenching drink; Masti Butter
Milk; and Kool Cafe, ready to drink coffee.

Amul's icecreams are made from milk fat and thus are icecreams in real sense of the
word, while many brands in India sell frozen desserts made from vegetable fat.

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation

Marketing Award for 2007.

In popular culture

The
establishment of Amul is known as White Revolution.The White Revolution inspired the
notable Indian film-maker Shyam Benegal to base his film Manthan (1976) on it.

It starred Smita Patil, Girish Karnad, Naseeruddin Shah and Amrish Puri.
The film was financed by over five lakh rural farmers in Gujarat who contributed Rs 2
each to its budget.

25
 Upon its release, these farmers went in truckloads to watch 'their' film, making it a
commercial success. Manthan was chosen for the 1977 National Film Award for Best
Feature Film in Hindi.

Mascot

Since 1967, Amul products' mascot has been the very recognisable "Amul baby" or Amul
girl (a chubby butter girl usually dressed in polka dotted dress) showing up on hoardings
and product wrappers with the tagline Utterly Butterly Delicious Amul.

The mascot was first used for Amul butter. In recent years in a second wave of ad
campaign for Amul products like ghee and milk.

Problems Of Organization

It is not a hidden fact that the amul has its own image or
brand, which shows the value of money for its product. The AMUL’S have a geat
product line and depth. AMUL’S products are Amul Butter, Amul Cheese Amul
confectionery, Amul Flavored Milk and Pasteurized milk, Dahi, Lashi, Ice-cream,etc.

If we give a overall look on the all market position of AMUL’S product almost all
product have a great market share in other hand all product are market leader with their
greater sales volume and high turnover, for example AMUL butter, AMUL Flavored
milk, Amul Mozerella cheese.

But in case of AMUL Chocolate the position of AMUL is not satisfactory. It is

generally consider AMUL is in the 3rd position after CADBURY and NESTLE. Both the
company has separate distribution channel for chocolate, they are giving high priority to
confectionery products. They are providing easy replacement, high penetration, and
regular visit to retailers shop. Most importantly they are providing cool storage
equipment to their retailers and they positioning their product through heavy
advertisement campaign.

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 Recently the AMUL Chocolate is re-launched in market but the position remains
same, which is very critical for the company. After re-launched, the sale volume and
customer awareness about the all chocolate products remain unsatisfactory, which create
harsh situation for all organization. Companies highly willing to excel in the chocolate
field there are some problem, which is adversely influence the the organization.

There are some problems, which is as follows:-

 Competition position in market

 Vast distribution channel which deals almost all products
 Replacement
 Retailer satisfaction level
 Awareness about the product.

Competition Information

AMUL :-

 NESTLE
 CADBURY
 BRITTANIA
 PIZZA Cos.
 HLL

So what does AMUL do?

• Strategize

• Innovate

• Customer focus

• Keeping cost low

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 Amul and Competition Curd

AMUL NIRULA’s Pizza Hut Domino’s

Entered the ready to Fortifying Delhi Plan to increase reach Closing down
eat segment thru centric presence thru 100 outlets in unprofitable outlets
“Utterly delicious” Launching frozen next 3 years
ready to cook pizza

Amul and Competition – Butter/Cheese/Paneer

AMUL Nestle Britannia

Plans to protect dominance in An outsourced product to Focusing on flavored high

the lower end of the market complete Dairy range margin UHT (Ultra High
thru price Seeking to maintain Treated) market
Wants to create institutional leadership in cheese slices. Moving from frozen to

28
market for Mozzarella cheese refrigerated Paneer.
Wants to create branded
Paneer.

Amul and Competition – Milk additives

Amul Cadbury Smithkline Beecham

Not a core competence area but Re-launched Bornvita. Acquired Maltova/iva to fortify
part of range. Boost and Horlicks.

Amul and competition – Sweetened condensed milk

AMUL Nestle

Emphasizing price leadership to drive Mithai Holding price of Milk maid

Mate to market dominance. Heavy cross promotion.

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 SWOT ANALYSIS OF THE ORGANIZATION

Strengths:
AMUL is the High brand equity and top of the mind brand.

It has a Strong network of over 3 million milk producers . AMUL is the World’s largest
manufacturer of pouched milk.

AMUL is the India’s largest food brand and is trusted for its quality . AMUL have a
large Number of popular milk products like ice cream, ghee, butter, Paneer , dahi, milk,
etc.

AMUL Products available at affordable prices in the market . AMUL is the Market leader
in butter segment.

AMUL is Responsible for white revolution in India. AMUL have a very successful
advertising and marketing campaigns in the market .

AMUL have a Strong network of retail outlets, stalls and parlours .

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AMUL have a popular mascot in the Amul girl which is used for its advertising and
marketing strategies .

Weakness:

The company’s original business was traded in AMUL butter .AMUL stands
for Anand milk union limited . AMUL has a Low market share in chocolates
segment which should be more improved , advertised and promoted because it has
many competitors like cad bury , kit-kat , ferrero rocher , nestle , mother dairy ,
etc .
AMUL have a Strong competition from international & domestic players in the
ice cream segment means limited market share like mother dairy and ferrero
rocher. AMUL have AMUL butter, AMUL cheese ,AMUL chocolate , AMUL ice
creams , etc . from which all dairy products are AMULs speciality but ice creams
and chocolates can get improved.

Opportunities:

Core brands such as AMUL ice creams and AMUL chocolates can be
developed using strategies of market development, product development and
marketing penetration. AMUL is moving into new and emerging sectors
including AMUL chocolates . This is an original and well thought of initiative
that could be used in other sectors in many other parts of the world. It is also
an ambitious project . AMUL should introduce new products in the chocolate
products like other competitors are doing usually . AMUL should try to To tap
the untapped market and increase its reach in rural markets
AMUL can Rise in purchasing power of Indian people .

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 Threats:
The obvious threat is from competition, both domestic and international. The laws
of economics dictate that if competitors see that there is a solid profit to be made in an
emerging consumer society that ultimately new products and services will be made
available. Western companies will see India as an exciting opportunity for themselves to
find new market segments for their own offerings AMUL's opportunities are likely to be
opportunities for other companies as well. Therefore the dynamic of competition will
alter in the medium term. Then AMUL will need to decide whether being a diversified
conglomerate is the most competitive strategic formation for a secure future. AMUL have
strong competiton from the international players . international markets are more
appealing due to which it is necessary to improve . AMUL should look out for economic
slow down , inflation and deflation etc .

CHAPTER 3
RESEARCH METHODOLOGY

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Significance

Any research has its own importance in any business organization. The research
shows the real fact about product as well as organization . research is a systematic and
scientific investigation of any idea either precise or abstract from a continuous basis of
learning , it could be either explorative or descriptive .

According to a above definition research is systematic and scientific investigation

through which any organization try to find out its strength and weakness as well as
opportunity and threat. As we know in the present era the business activities have become
more complex and complicated due to modern technology ,globalization and
liberalization and in other hand today customer are highly conscious about products and
brand.

In recent time customers are not blind follower of a product . they are giving high priority
to all feature like price , quality, innovative features etc. But after all this features brand
becomes the inevitable parts of any product because it gives the complete identification
of product so it is also the most important part.

My research work is highly focused on this issue, which is important for me as well
as the organization. During research work I learnt retailer’s opinion about product and
services.

I learnt which factors affect the retailers to sale an individual product, this research gives
me insight to understand the retailers problems as well their area of interest, in this I got
the great experience about the market.

So it is my strong believe that my research work is significant in all manners.

This research is helpful for organization, retailers as well as consumer.

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 OVERVIEW OF THE PROJECT

This study comprises of Qualitative research work on various Branding Strategies

adopted by AMUL. It is all about exploring issues understanding phenomena &
answering questions. While there’s a whole industry involved in it persued qualitative
research also happens in nearly every workplace & study environment, nearly everyday..

Among the traditional milk products, ghee is the only product, whichis currently
marketed, in branded form. Main ghee brands are Sagar,MilkMan (Britannia),Amul
(GCMMF),Aarey (Mafco Ltd), Vijaya (AP Dairy Development Cooperative Federation),
Verka (Punjab Dairy Cooperative), Everyday (Nestle) and Farm Fresh (Wockhardt).

Objectives of the study

 To study the position of Amul in certain established market.

 To understand the 4 P’s of marketing.
 To identify the problems in various areas.

Purpose of the topic

 Create the awareness in the milk product market

 Building confidence in retailers as well as in the customer
 To Understand the terminologies used in market by retailers.
 Develop the usefulness in enhancing the usability of the product.

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 To learn different strategies which are used by retailers in market to convince the
customers.

CHAPTER 4

ANALYSIS/STUDY OF

TOPIC

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STP

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Segment People who need milk and milk products for day to day use

Target Group Lower, Middle and upper middle class families

Positioning An Indian brand producing superior quality products

Product Portfolio

1.AmulButter
2.Amul Cheese

3.Amul Chocolates

4.Amul Ice Cream

Brands 5.Amul kool

Types of data:

 Primary Data: Primary research consists of a collection of original primary data

collected by the researcher. It is often undertaken after the researcher has gained
some insight into the issue by reviewing secondary research or by analyzing
previously collected primary data.

 Secondary Data: Secondary data refers to the data that was collected by someone
other than the user. Common sources of secondary data for social
science include censuses, information collected by government departments,
organizational records and data that was originally collected for other research
purposes.

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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.

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
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 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.

Marketing mix of Amul

Product in the marketing mix of Amul – 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.

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Price in the marketing mix of Amul – 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 – 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

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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 – 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.

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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.

CHAPTER 5

FINDINGS/OBSEVATIONS

It has been founded from the following research that :

1. "The company caters to the Indian palate, which is its primary driver of
success". In light of this statement, critically examine the marketing strategies
adopted by Amul & Parag Dairy to capture a sizeable market share of the
organized Dairy based food Product in India.

2. In the modern competitive scenario, promotion is a key element in the

marketing mix of a company. Critically analyze the promotion strategies
adopted by Amul India Pvt. Ltd. What other efforts must the company take to
effectively promote its products?

3. Dairy based Products contribute a major share of the revenues of Amul.

Given the competitive scenario in the Dairy Products in India, where

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competitors such as Parag Dairy are introducing several innovative products,

what measures must Amul take to remain competitive?

RECOMMENDATIONS

 Company should have feedback from market and consumer about the Dairy based
products.
 The company provides some small schemes for retailers also.
 The company gives some gifts for customers also.

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 The company should check the market real position help the trainees and other
survey organizations.
 The company should launch its website and use new advertising channels.

CHAPTER 6

CONCLUSION

From the analysis, the following conclusion can be arrived at:

 Amul enjoys the trust of the retailers as well as the consumer because of its
quality and huge brand image.
 There is a big storage problem with certain Amul products, it has needed to keep
in certain temperature.
 Some distributors do not give proper information to the retailers about the
product and offers given by the company for the promotion of amul. This leads
bad image of the company.
 There is some problem with the packaging of the products .

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 BIBLIOGRAPHY

Books:-

 Kotler Philip “Markiting Management” New Delhi

Prenticehall of India. 2011
 Pandey, LM., Financial Management , Vikas Publication, New
Delhi , 2007
 Kothari C.R. “Research

Methodology” Search Engine:-

 www.google.com
 www.yahoo.com

 WEBSITES:-

 www.amul.com

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MAGAZINES:-

 Business World
 Business today

PREOIDICAL:-

 Economic times
 Times of India

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