You are on page 1of 53

Mini Project

on
"A Study On Consumer Behavior towards AMUL with Special
reference to AMUL milk"

In partial fulfillment of the requirement for the award of the degree of

Master of Business Administration

Project Submitted By
Kisa Butool Mehdi

Under the Guidance of


Dr. Shubhendu Shekher Shukla

Asst. Professor

SRM BUSINESS SCHOOL, LUCKNOW (666)


(Approved By AICTE, Ministry of HRD, Govt of India and Affiliated to Dr. A.P.J. Abdul Kalam Technical
University, Lucknow)

NH-24 SITAPUR ROAD, BAKSHI KA TALAB, LUCKNOW

(2021-22)

1
Contents
Aknowledgement.......................................................................................................................................3
Declaration................................................................................................................................................4
Certificate By Institution............................................................................................................................5
Preface.......................................................................................................................................................6
Introduction and History............................................................................................................................7
Introduction to AMUL Milk......................................................................................................................12
Objective..................................................................................................................................................28
Literature Review.....................................................................................................................................29
Research Methodology............................................................................................................................32
Data Sources.......................................................................................................................................32
SWOT Analysis AMUL...............................................................................................................................34
Competitor Analysis.................................................................................................................................38
Advantages of AMUL milk........................................................................................................................41
Disadvantages of AMUL Milk...................................................................................................................42
Data Analysis and Interpretation.............................................................................................................43
Results :....................................................................................................................................................49
Limitations :.............................................................................................................................................50
Conclusion and suggestions:....................................................................................................................51
References...............................................................................................................................................52

2
Aknowledgement

To make any project, essential requirement is able guidance and


references without which project is incomplete I am very much
thankful to my teacher Mr. Shubhendu S. Shukla who gave me the
golden opportunity to do this wonderful project on the topic “A
Study on Consumer Behavior Towards AMUL with Special Reference
to AMUL milk”, which also helped me in doing a lot of research and I
came to know about so many things and this will help me a lot in my
career.

At last but not the least, I am thankful to my friend and family who
have directly and indirectly helped me a lot in finishing this project
within the limited time.

I am making this project not only for marks but to also enhance my
knowledge.

Thank You Kisa Butool Mehdi

MBA 1st year

3
Declaration
I hereby declare that the project report titled "A Study on Consumer Behavior
Towards AMUL with Special Reference to AMUL milk" is based on my own
work and under the supervision of Mr. Shubhendu S. Shukla.

I assert the statements made and conclusions drawn are an outcome of my research
work. I further certify that the work contained in the report is original and best of
my knowledge.

This work has not been submitted to any other university for any examination.

Kisa Butool Mehdi

MBA 1st year

4
Certificate By Institution

5
Preface
As a part of the MBA Curriculum and in order to gain knowledge in the field of management,
I have made a project on "A Study on Consumer Behavior Towards AMUL with Special
Reference to AMUL milk" The basic objective behind doing this project is to get knowledge
about the overall consumer behaviour towards A M U L .

In this project I have included history, introduction, SWOT analysis, objective/purpose,


advantages & disadvantages, and so on regarding AMUL.

Doing this project report helped me to enhance my knowledge regarding various AMUL
products and their competitors. I underwent many experiences related with the topic.

6
Introduction and History
In the year 1946 the primary milk association was built up. This association was begun with 250

liters of milk for every day. In the year 1955 AMUL was built up. In the year 1946 the

association was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS' UNION. This

association chose the brand name AMUL in 1955. The brand name Amul signifies "AMULYA".

This word got from the Sanskrit word "AMULYA" which signifies "Extremely valuable". A quality

control master in Anand had proposed the brand name "AMUL". Amul items have been being

used in a large number of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee,

Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul

Milk and Amulya have made Amul a main food brand in India. (The absolute deal is Rs. 6 billion

out of 2005). Today, Amul is an image of numerous things like of the great items sold at

sensible costs, of the beginning of a tremendous co-employable system, of the triumph of

indigenous innovation, of the advertising wise of a ranchers' association. Furthermore, have a

demonstrated model for dairy advancement (Generally known as "ANAND PATTERN").

MISSION : "We at GCMMF try to fulfill the taste and healthful necessities of the client of the

world through greatness in the advertising by our submitted group. Through agreeable systems

administration, we are focused on offering quality item that gives best an incentive to

money ."The region association was additionally structure to gather the milk from such town

co-usable social orders and to sell them. It was likewise settled that the Government ought to

be approached to purchase milk from the association. In any case, the govt. didn't appear to

7
help ranchers using any and all means. It gave the negative reaction by turning down the

interest for the milk. To react to this activity of govt., the ranchers of Kaira locale went on a milk

strike. For 15 entire days not a solitary drop of milk was offered to the dealers. Thus, the

Bombay milk plot was seriously influenced. The milk official of Bombay at that point visited

Anand to evaluate the circumstance. Having appeared the condition, he chose to satisfy the

ranchers request. In this way, their agreeable associations were constrained at the town and

region level to gather and sell milk on a helpful premise, without the mediation of Government.

Mr. VergheseKurien indicated primary enthusiasm for building up association who was upheld

by ShriTribhuvandas Patel who lead the ranchers in framing the Coemployable associations at

the town level. The Kaira area milk maker's association was hence settled in ANAND and was

enlisted officially on fourteenth December 1946. Since ranchers sold all the milk in Anand

through a helpful association, it was usually set out to sell the milk under the brand name

AMUL. At the underlying stage just 250 liters of milk was gathered each day. In any case, with

the developing consciousness of the advantages of the helpfulness, the assortment of milk

expanded. Today Amul gather 11 lakhs liters of milk each day. Since milk was a transient item it

gets hard to save milk verdure longer period. Other than when the milk was to be gathered

from the far spots, there was a dread of ruining of milk. To conquer this issue the association

thoroughly considered to build up the chilling unit at different intersections, which would

gather the milk and could chill it, to save it for a more drawn out period. Along these lines,

today Amul has in excess of 150 chilling communities in different towns. Milk is gathered from

right around 1073 social orders. With the money related assistance from UNICEF, help from the

govt. of New Zealand under the Colombo plan, of Rs. 50 million for plant to make milk powder

8
and spread was arranged. Dr. Rajendra Prasad, the leader of India established the framework

on November 15, 1954. ShriPandit Jawaharlal Nehru, the executive of India announced it open

at Amul dairy on November 20, 1955. The Union looks after policy formulation, processing and

marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial

insemination service, veterinary care, better feeds and the like - all through the village societies.

Basically, the union and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK

UNION LIMITED), a name which suggest “THE TASTE OF INDIA”.

Amul cooperative was registered on 19 December 1946, as a response to the exploitation of

marginal milk producers by traders and agents in small cities. The prices of milk were arbitrarily

determined at the time. The government had given Polson an effective monopoly in milk

collection from Kaira and its subsequent supply to Mumbai.

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

under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to form a

cooperative (Kaira District Co-operative Milk Producers' Union) and supply milk directly to the

Bombay Milk Scheme instead of Polson (who did the same but gave them low prices). He sent

Morarji Desai to organize the farmers. In 1946, the milk farmers of the area went on a strike

which led to the setting up of the cooperative to collect and process milk. Milk collection was

decentralized, as most producers were marginal farmers who could deliver, at most, 1–2 liters

of milk per day. Cooperatives were formed for each village, too. By June 1948, the KDCMPUL

had started pasteurizing milk for the Bombay Milk Scheme. Then-Prime Minister Lal Bahadur

Shastri visited Anand to inaugurate Amul's cattle feed factory. On 31 October 1964, and

sporganizationin the village and spoke to farmers about their cooperative and after returning to
9
Delhi, he set in motion the creation of an organization, the National Dairy Development Board

(NDDB), to replicate the Kaira cooperative in other parts of India. Under the leadership of

Tribhuvandas Patel, in 1973, Amul celebrated its 25th Anniversary with Morarji Desai, Maniben

Patel, and Verghese Kurien.

Under the leadership of Tribhuvandas Patel, the cooperative was further developed through

the efforts of Verghese Kurien and H. M. Dalaya. Dalaya's innovation of making skim milk

powder from buffalo milk was a technological breakthrough that revolutionized India's

organized dairy industry.

With Kurien's help, the process was expanded on a commercial scale which led to the first

modern dairy of the cooperative at Anand. This cooperative would go on to 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 neighborhood in Gujarat. Within a short span, five unions in other districts – Mehsana,

Banaskantha, Baroda, Sabarkantha, and Surat – were set up, following the approach sometimes

described as the Anand pattern.

In 1970, it spearheaded the "White Revolution" of India. To combine forces and expand the

market while saving on advertising and avoid competing against each other, the Gujarat Co-

operative Milk Marketing Federation Ltd., 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.

10
In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award Technological

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

The GCMMF is the largest food products marketing organization in India. It is the apex

organization of the dairy cooperatives of Gujarat. It is the exclusive marketing organization for

products under the brand name Amul and Sagar. Over the last five and a half decades, dairy

cooperatives in Gujarat have created an economic network that links more than 3.1 million (3.1

million) village milk products with crores of consumers in India. In 2007, Gujarat Cooperative

Milk Marketing Federation Ltd crossed US$ 1 billion in its sales turnover and entered the elite

club of food companies having this distinction from India.[20] In one more major achievement,

the dairy cooperatives of Gujarat under the GCMMF fold crossed milk procurement of 10

million kgs. per day mark on 27 December 2007, which is the highest ever milk procurement

achieved by any dairy network in India, be it private or cooperative and the entire quantity of

milk received was accepted without any milk holidays and was processed successfully into milk

and other milk products.

On 30 September 2018, Prime Minister Narendra Modi inaugurated Amul's chocolate plant in

Mogar, Anand near their headquarters. The new plant has been built with an increased capacity

of 1,000 tonnes per month against the earlier 250 tonnes a month capacity. GCMMF has

invested around ₹3 billion in this project. It is a fully automated production factory with

minimal human intervention.

11
Introduction to AMUL Milk

Amul Milk is the most hygienic liquid milk available in the market.
It is pasteurized in state-of-the-art processing plants and pouch-packed to make it conveniently
available to consumers.
Amul Fresh Milk Ranges

Amul has varieties of fresh milk ranges and are preferred by many consumers on a daily basis.
These are outlined below.

 Amul Fresh Milk

12
 Amul Gold Milk

 Amul Taaza Double Toned Milk

 Amul Lite Slim and Trim Milk

13
 Amul Fresh Cream

 Amul Shakti Toned Milk

 Amul Calci+

14
 Amul Buttermilk

Amul Fresh Milk Ranges

Amul has varieties of fresh milk ranges and are preferred by many consumers on a daily basis.
These are outlined below.

 Amul Fresh Milk

 Amul Gold Milk

15
 Amul Taaza Double Toned Milk

 Amul Lite Slim and Trim Milk

 Amul Fresh Cream

16
 Amul Shakti Toned Milk

 Amul Calci+

 Amul Buttermilk

17
Various Products of AMUL

It consists of wide ranges of products which are outlined below:

 Amul Fresh Milk Range


 Amul Cheese Range
 Amul Cooking Range
 Amul Dhai Range
 Amul Mithai / Desserts Range
 Amul Health Drink
 Amul Chocolates
 Amul Icecreams
 Amul's New Products

Amul Bread Spreads Ranges

Amul has varieties of Bread Spreads ranges and are preferred by many consumers on a daily
basis. These are outlined below.

Amul Butter

Amul Butter is made up of pure milk fat. It consists of 100g, 500g, 50g, 20g, and 8.1g packing. It
can be eaten with bread, paratha, roti, nans, and sandwiches.

18
Amul Lite

Amul Lite is a low cholesterol, low calorie and low fat bread spread. It is available in 100g, 500g,
and 200g packing. It is been used for topping on parathas, pav-bhaji, and also for preparation of
cakes.

Delicious Table Margarine

Delicious Table Margarine is the substitute of butter. Margarine is prepared from vegetable oils
and fats. It contains zero cholesterol and fortified with vitamin A & D. 100g, 500g, 200g tub &

19
Single serve pack are available.

Amul Beverage Range / Milk Drinks

Amul Kool Milk Shaake

Amul Kool Millk Shaake comes with four awesome flavours which are Banana, Mango,
Strawberry and Badam. The price of this is Rs. 22 for 220 ml can. These are also sold in tetra
pack in three flavours i.e. Mango, Strawberry and Banana. The price of this is Rs 15 for 180 ml
tetra brick. It is rich in nutrients and is the healthiest drink against any other soft drinks.

Amul Kool

Amul Kool is very tasty and healthy drink and come with five flavour i.e Kesar, Elaichi, Rose,
Mango, and Strawberry. Available in 200ml Glass Bottle, 200ml Tetra Pack, 250ml Can, and 1
Litre Tetra Pack.

20
Amul Kool Café

Amul Kool Café is a tonned milk flavoured with coffee. It is very good and convenient for
parties, picnics, etc. Available in 200ml Glass Bottle, 200ml Tetra Pack, 250ml Can.

Amul Kool KoKo

Amul Kool Koko is a Chocolate Flavour Milk. Available in 200 ml Glass Bottle, 250 ml Can, 200 ml
Tetra pack.

21
Amul Kool Chocolate Milk

It is chocolate flavoured milk and is available in 200 ml & 1 litre Tetra pack.

Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Bottled Milk comes in four flavour which are Elaichi, Kesar, Rose, and
Badam. It is very delicious and healthy drink. It is also available in 200 ml Tetrapak.

Amul Kool Flavoured Tetra Pack

Amul Kool Flavoured Tetra pack comes in four flavour which are Elaichi, Kesar, Rose, and
Badam. It is very delicious and healthy drink. It is also available in 200 ml Pet Bottle & Glass
Bottles.

22
Amul Masti Spiced Buttermilk

Amul Masti Spiced Buttermilk is a 100% natural drink and free from artificial Colour,
preservatives, acids and sugar. It is available in 200ml Tetra, 500ml and 1 litre Tetra. The price
of this is Rs. 8, Rs. 15, Rs. 30 respectively.

Amul Kool Lassee

Amul Kool Lassee is refreshing milk natural drink. It can be served at any convenient place like
parties, picnic and during hot summer.

Amul Kool Thandai

23
Amul Kool Thandai is also flavored milk with flavour of traditional Thandai. It is available in 200
ml Glass Bottle, 200 ml & 1 litre Tetra pack.

Amul Stamina Can

Amul Stamina is an energy drink which contains electrolytes, vitamin C, minerals, calcium, milk
proteins. It is essential for body growth and muscle building. It is available in 200 ml Tetra Pack
and 250 ml can.

Amul PRO

Amul PRO is a malt based milk additive. It is very easy to make and suitable for people of all
ages, especially kids, who need milk and nutrients. It is to be consumed by adding directly to
the hot or cold milk.

24
Amul Cheese Range

Amul has varieties of cheese ranges and are preferred by many consumers on a daily basis and
are used mainly on bread, cooking, pizza etc. It can be eaten with bread, paratha, roti, nans, and
sandwiches.

The cheese types are outlined below.


 Amul Cheese Spreads

 Amul Emmental Cheese

25
 Amul Pizza Mozzarella Cheese

 Gouda Cheese

Amul Icecreams

Amul Icecreams are made from fresh milk and are available in different flavours. It can be used
to prepare sundaes, shakes, etc. Icecreams are much preferred by kids and also all generations.
It is very nice to consume them during anytime, anywhere.

Amul has varieties of ice-creams ranges and are preferred by many consumers on a daily basis.

Some of them are outlined below.

 Simply Delicious Range


 Nature's Treat
 Sundae Range

26
 Cassatta

27
Objective
● To know consciousness of individuals towards Amul items.

● To know the inclination of Amul items with correlation with other serious brands.

● To know the variables which influences purchaser's purchasing conduct while buy milk.

● Swot examination of Amul and its rivals.

● To examine different factors, for example, quality, value, accessibility, inclination and so

forth.

● Thoughts regarding to expand the offer of the "Amul"

● Understanding AMUL Brand an incentive in the present and future market.

28
Literature Review
Since the turn of nineteenth century, Cooperatives have existed as predominant types of

association in the dairy business around the globe. At times they have assumed the job of

creating newborn child industry while at different occasions they have been utilized to reinforce

frail creation bases in a situation where showcase disappointments will in general be higher for

minor producers. In some her cases, a system of little makers has sorted out themselves to all

the more likely market their items. The executives of these cooperatives have additionally

prompted some intriguing administrative bits of knowledge for administrators with regards to

rising just as created economies. Enormous rising economies, e.g., India and China, have

complexities that extend from improvement of business sectors (where the biggest fragment of

populace is the one which has low buying capacity) to joining of minimal effort providers who

are transcendently exceptionally little. For firms that seek to direct considerable business in

such markets, such complexities must be perceived and afterward survive. The test is to

comprehend the linkages among business sectors and the general public. This would likewise

require advancement of another plan of action that enables a firm to develop in such

conditions. This paper is around one such effective model. The Kaira District Milk Cooperative

Union or AMUL in India is a case of how to build up a system of firms so as to beat the

complexities of a huge yet divided market like those in developing economies by making an

incentive for providers just as the clients. AMUL has driven the milk dairy upheaval in India that

has now developed as one of the biggest milk makers on the planet. In this article we will depict

the advancement vision that prompted the synchronous improvement of the market and

flexibly side through a procedure of social turn of events and training at AMUL. Obviously,

29
usage of this vision a serious situation and keeping up continued development and benefit

requires improvement of intensity on a few biggest fragment of populace is the one which has

low buying capacity) to joining of minimal effort providers who are transcendently exceptionally

little. For firms that seek to direct considerable business in such markets, such complexities

must be perceived and afterward survive. The test is to comprehend the linkages among

business sectors and the general public. This would likewise require advancement of another

plan of action that enables a firm to develop in such conditions. This paper is around one such

effective model. The Kaira District Milk Cooperative Union or AMUL in India is a case of how to

build up a system of firms so as to beat the complexities of a huge yet divided market like those

in developing economies by making an incentive for providers just as the clients. AMUL has

driven the milk dairy upheaval in India that has now developed as one of the biggest milk

makers on the planet. In this article we will depict the advancement vision that prompted the

synchronous improvement of the market and flexibly side through a procedure of social turn of

events and training at AMUL. Obviously, usage of this vision a serious situation and keeping up

continued development and benefit requires improvement of intensity on a few measurements

and operational viability. This article gives bits of knowledge into the executives of enormous

flexibly chains by adjusting and coordinating an assortment of procedures and strategies. This

incorporates building systems, creating trust and qualities in the system, growing reasonable

instruments for sharing advantages over the gracefully chain, coordination for operational

adequacy, development and new innovation for picking up intensity. It is important that these

victories were accomplished inside the system of a system of cooperatives sorted out in a

30
various leveled way. There are numerous exercises in AMUL's prosperity for the agreeable

division as well as for firms who plan to work together in developing markets.

31
Research Methodology
Data Sources
The sources of data can be classified into two types: statistical and non-statistical. Statistical sources refer
to data that is gathered for some official purposes, incorporate censuses, and officially administered
surveys. Non-statistical sources refer to the collection of data for other administrative purposes or for the
private sector.

What are the different sources of data?


The following are the two sources of data:

Internal sources

 When data is collected from reports and records of the organisation itself, they are known as the
internal sources.
 For example, a company publishes its annual report‟ on profit and loss, total sales, loans,
wages, etc.

External sources

 When data is collected from sources outside the organisation, they are known as the external
sources. For example, if a tour and travel company obtains information on Karnataka tourism
from Karnataka Transport Corporation, it would be known as an external source of data.

Types of Data
Primary data

 Primary data means first-hand information collected by an investigator.


 It is collected for the first time.
 It is original and more reliable.
 For example, the population census conducted by the government of India after every ten
years is primary data.
Secondary data

 Secondary data refers to second-hand information.


 It is not originally collected and rather obtained from already published or unpublished
sources.
 For example, the address of a person taken from the telephone directory or the phone
number of a company taken from Just Dial are secondary data.

32
The research methodology is the basic procedures or techniques used to classify, select,

process and evaluate information on the subject. It includes following terms :

Research Problem :
• Seek the general perception of consumer towards Amul Milk.

• To know the consumer psyche and their behavior towards Amul Milk .

• To know the relationship of sales with the advertisement.

• To know awareness of people towards Amul Milk.

• To know which advertisement tool is mostly preferred by people.

• To know the preference of Amul Milk with comparison to Other competitive brands.

Research Design :
Descriptive research (A Research design specifies the methods and procedures for conducting a

particular study. It is a map (or) blue print to which the research is to be conducted. Descriptive

research design has been considered as a suitable methodology for present study and for data

analysis).

Sampling Design :
Convenience sampling (The sampling design used was Convenience sampling, which is a non

probability sampling method. The convenience factors were the availability and approachability

of the respondents).

Population : A population is usually a broad number of individuals or artifacts that is the main

subject of a scientific inquiry. In this research, population are those who uses dairy products.

33
SWOT Analysis AMUL

Amul is a really strong and dominant brand in its category. The SWOT Analysis of Amul that I
have shared with you below is based on my understanding and my research of the success story
of Amul.

My intention behind putting together this SWOT Analysis of Amul is to help you put together
similar kind of points for the other companies for which you might want to do a SWOT Analysis.

Strengths of Amul

Strengths are always internal to a company. A strength is something that comes from within the
company, from its people, its process or the resources employed by it. Here are the strengths
from the SWOT Analysis of Amul.

1. Investment in Technology
Amul has experienced exponential growth in the last few decades. The company is continually
investing in adaptive and revolutionary technologies within the dairy industry. The company is
targeting a turnover of Rs. 50,000 crore in the fiscal year 2020.

2. Production Capacity
Amul is one of the largest manufacturers of milk and dairy products in the world. The company
is managed by the Gujarat Co-operative Milk Marketing Federation Limited, which is a dairy
producers cooperative which supplies the company with almost 18 million liters of milk daily.

3. Market Share
Amul has transformed itself into the market leader of milk and dairy products in the country.
For instance, Amul has a market share of 33 per cent in the organised ice cream industry. The
ice cream market is expected to grow by 30 per cent.

Amul has expanded its ice cream product and business portfolio by opening standalone Amul
ice cream stores all over the country.

Furthermore, the flavoured milk industry in India is also expected to grow by 20 per cent, and
once again, Amul is a market leader in flavoured milk in India.

4. Strong Brand Value


Amul is one of the most recognizable and valuable brands in India. The Amul girl, the company’s
mascot which features on its advertisements is one of the oldest and most iconic brand
mascots which Amul uses even today.

34
None of the milk or dairy products brands in India has come close to the public image or brand
value which Amul enjoys in the Indian market.

5. Quality
One of the primary reasons for Amul being one of the most trusted brands in Indian and having
a strong and loyal consumer base is its quality. Amul has never faced any significant issues
pertaining to its quality within the Indian market. The company has also maintained
transparency concerning its quality control practices.

Amul maintains excellent relationships with the health department and government agencies.
Validation from these authorities further develops trust within the minds of the consumers
about the quality of Amul’s products.

5. Large Consumer Base


The company has a large consumer base which spreads across the urban and rural regions of
the country. This wide-reaching consumer base has allowed the company to maintain distinct
leverage over its competitors

Weaknesses of Amul
Just like the strengths, weaknesses are also internal to the brand or the company. You could see
it as lack of certain aspects in the business that makes it vulnerable. Sometimes, certain
strengths bring with them certain weaknesses. Examples of that is, however, the matter of
another blog post.

So, here are the weaknesses from the SWOT Analysis of Amul.

1. High Operational Cost


Amul has a high operational cost due to its massive size and complex structure. This can
become problematic for the company if the company experiences fall in demand.

The company also heavily depends on the dairy unions and communities for its supply of milk.
As the needs of the dairy community are changing with them demanding higher prices for their
produce.

These issues can add up to the operational cost of the company and lower its profit margins.

2. Lack of Success in Certain Areas of Portfolio Expansion


Amul has expanded its product portfolio to add products such as butter, ghee, buttermilk,
flavored milk, ice cream, chocolates, cheese, creams, sweets and more.

However, not every product of Amul within its portfolio has tasted the same amount of success.

35
For instance, Amul’s chocolates have not been able to replicate the success of its ice cream
brands. Amul chocolates have a tiny market share in the chocolates, sweets and confectionery
market in India.

3. Frequent Legal Issues


The company has faced legal issues in the recent past wherein Amul chose to advertise its
products while disparaging the brand and products of its rivals. This led to Hindustan Unilever
filing a lawsuit against Amul in the Bombay High Court.

In 2017, The Bombay High Court passed a verdict in favour of Hindustan Unilever. This caused
the company a lot of embarrassment and has also contributed to tarnishing the public image of
the company.

Opportunities for Amul


In the SWOT Analysis, Opportunities are the points that can be and should be converted to the
strengths of the company. In the case of the SWOT Analysis of Amul, I have listed below the
opportunities that can be worked on by Amul.

1. High per capita Milk consumption


India is a high milk consuming nation with milk and dairy products being an essential
component of the Indian diet. According to research, Indians consume almost 100 liters of milk
per annum.

India has a billion plus population which is only increasing. This growth in population and high
milk consumption opens up opportunities for Amul to expand its production capacities and
acquire new consumers.

2. International Expansion
Amul can serve global markets. The brand can expand into overseas markets such as the
Middle-East and the Asian markets by aggressively targeting Indian expats living in these
countries. Amul can organically broaden its international presence and consumer base.

3. Expansion of Product Portfolio


Amul can invest in research and development or adopt a mergers and acquisition strategy to
expand its product line. Amul has an extensive distribution network which can be used to sell its
new products into the market, and the substantial brand value and trust of the consumers will
also enable easier acceptance from the consumers.

Threats for Amul


The way a company should take care of the threats is by working on its strengths to mitigate
the effects of threats. Some organisations who are in a niche, niche down further to mitigate
the risks of a competitive environment. I have listed below some of the Threats for Amul.

36
1. Increasing Competition
Amul is facing increasing competition in milk and dairy products sector from brands such as
Mother Dairy, Aavin, Kwality Ltd, Nadini Dairy, HUL and other local players. Amul is also facing
increasing competition within the ice cream sector from Kwality Walls, Baskin Robins, Havmor,
London Dairy and other domestic brands

2. Growing trend of Veganism in India


Many people in India are turning towards veganism, which implies that these people do not
consume dairy or dairy products. This can impact the demand for Amul’s milk and dairy
products if the popularity of veganism increases and spreads across different parts of the
country.

Many people in India are turning towards veganism, which implies that these people do not
consume dairy or dairy products. This can impact the demand for Amul’s milk and dairy
products if the popularity of veganism increases and spreads across different parts of the
country.

37
Competitor Analysis

1 Mother’s Dairy

Mother Dairy Fruit & Vegetable Pvt Ltd is an Indian food processing company that
manufactures, markets, and sells milk, milk products, and other edible products. Its milk
products include cultured products, ice cream, paneer, and ghee under the Mother Dairy
brand.
The company also sells edible oils, fresh fruits and vegetables, frozen vegetables, and processed
food like fruit juices, jams, pickles, etc. Mother Dairy was founded in 1974 as a wholly-owned
subsidiary of the National Dairy Development Board (NDDB).

2 Kwality Wall’s
Kwality Ltd. is a processor and handler of dairy products in India listed on the Bombay Stock
exchange as a Public Limited Company. The company produces various dairy products,
including milk, ghee, butter, milk powder, curd, yogurt, cheese, etc. The company has
established a procurement network that comprises 350,000 farmer families across 4,700
villages in North India. Kwality Ltd. has six plants in Haryana, Uttar Pradesh, and Rajasthan with
a processing capacity of 3.4 million liters (750,000 imp gal; 900,000 U.S. gal) milk per day.

3 Mars
Mars, Incorporated is an American multinational manufacturer of confectionery, pet food, and
other food products and a provider of animal care services, with US$33 billion in annual sales in
2015. It was ranked as the 6th largest privately held company in the United States by
Forbes. Headquartered in McLean, Virginia, United States, the company is entirely owned by
the Mars family.
Mars operates in five business segments around the world: Mars Wrigley Confectionery
(headquartered in Chicago, Illinois, with US headquarters in Hackettstown and Newark, New
Jersey), Petcare, Zaventem, Belgium; Poncitlán and Jalisco, Mexico; Querétaro, Mexico, Food
(Rancho Dominguez, California), Drinks (West Chester, Pennsylvania), and Symbioscience
(Germantown, Maryland), the company’s life sciences division.
4 Hershey
The Hershey Company, commonly known as Hershey’s, is an American multinational company
and one of the largest chocolate manufacturers in the world. It also manufactures baked
products, such as cookies and cakes, and sells beverages like milkshakes and many more
produced globally. Its headquarters are in Hershey, Pennsylvania, home to Hersheypark and
Hershey’s Chocolate World. Milton S. Hershey founded it in 1894 as the Hershey Chocolate

38
Company, a subsidiary of his Lancaster Caramel Company. The Hershey Trust Company owns a
minority stake but retains a majority of the voting power within the company.
Hershey’s chocolate is available across the United States and in over 60 countries
worldwide. They have three large distribution centers with modern technology and labor
management systems. In addition, Hershey is a member of the World Cocoa Foundation. It is
also associated with the Hersheypark Stadium and the Giant Center.

5 Britannia Industries
Britannia Industries Limited is an Indian multinational food and beverage company Founded in
1892 and headquartered in Kolkata, India. It is one of India’s oldest existing companies. It is
now part of the Wadia Group headed by Nusli Wadia. It is best known for its biscuit products.
The company sells its Britannia and Tiger brands of biscuits, bread, and dairy products
throughout India and in more than 60 countries worldwide. Beginning with the circumstances
of its takeover by the Wadia group in the early 1990s, the company has been mired in several
controversies connected to its management. However, it does enjoy a large market share and is
exceedingly profitable.

6 Heritage Foods
Heritage Foods Limited (commonly known as Heritage Foods) is one of the largest private-
sector dairy enterprises in Southern India.
Heritage’s milk products have a market presence in Telangana, Andhra Pradesh, Karnataka,
Kerala, Tamil Nadu, Maharashtra, Delhi, Rajasthan, and Punjab. It has retail stores across
Bangalore, Chennai, Hyderabad, and Visakhapatnam. Integrated Agri operations are in Chittoor
and Medak Districts, and these are the backbone of retail operations.

7 Hatsun Agro

Hatsun Agro Product Ltd (HAP), often referred to as Hatsun, is a leading private sector dairy
company in India based in Chennai. R. G. Chandramogan founded it in 1970. It had become a
billion-dollar company by mid-2016. The Company was also awarded “The Fastest Growing
Asian Dairy Company.” The Dairy product maker has been bagging the Golden Trophy from the
Indian Government for largest dairy products exporter for the last many years.
It has various brands like Arun Ice Creams, Arokya, Ibaco, Oyalo, Etc.

8 Dodla Diary
Dodla Dairy Limited is a public limited company having its registered and corporate office at the
Hyderabad City of Telangana State in India. The company was incorporated in the year 1995,
and production commenced in 1997. Currently, Our procurement is centered in 5 states, and
our products are available for purchase in 11 states. We have 94 milk chilling centers. Some of
our plants are ISO 22000:2005 Certified, while two are ISO 50001:2011 (EnMS) Certified.

39
Distribution and marketing operations consist of distributing their products through 40 sales
offices, 3,285 distribution agents, 861 milk distributors, and 544 milk product distributors across
11 states in India. Additionally, as of March 31st, 2021, our milk and dairy-based VAPs are also
available through 393 “Dodla Retail Parlours,” which commenced operations in 2016 and are
spread across the states of Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka. their
product portfolio consists of Milk, Butter Milk, Ghee, Curd, Paneer, Flavoured Milk, Doodh
Peda, Ice Cream, and Milk Based Sweets. These products are conveniently packed to suit the
various needs of its consumers.

9 Aavin
Aavin is the trademark of Tamil Nadu Co-operative Milk Producers’ Federation Limited, a Tamil
Nadu-based milk producer’s union. Aavin procures milk, processes it, and sells milk and milk
products to consumers.
The company produces a wide range of products, including milk, butter, yogurt, ice cream,
ghee, milkshake, tea, coffee, and chocolate, among other goods.

10 Dynamix Dairy
Dynamix Dairies Ltd offers the best quality products to end consumers and implementing the
latest technologies to process quality milk for various brands in India, located in Baramati near
Pune.

11 Milma Milk – Kerala Co-operative Milk Marketing Federation


Kerala Co-operative Milk Marketing Federation or Milma takes care of the production and milk
marketing in the state. Milma stands for milk and other variety of milk products in Kerala.

12 Milky Mist Dairy – Erode, Tamil Nadu


Milky Mist Dairy is one of the largest private dairies in South India, offers more than 20 milk
products with the largest cheese-making unit in Erode, Tamil Nadu.

40
Advantages of AMUL milk
1. Milk is packed with nutrients:

The nutritional value of milk is quite impressive after all it is designed to nourish the newborn.
One cup of milk incorporates the following amount of nutrients:
Calories: 146
Protein: 8 grams
Fat: 8 grams
Calcium: 28% of the RDA
Vitamin D: 24% of the RDA
Riboflavin (B2): 26% of the RDA
Vitamin B12: 18% of the RDA
Potassium: 10% of the RDA
Phosphorus: 22% of the RDA
Selenium: 13% of the RDA

2. It is an excellent source of quality protein:

Amul milk online availability has made things easier. Amul is one of the prominent brands in
terms of dairy products. Such fluid is a rich source of protein. The quality protein is essential for
many vital functions in your body, including development and overall growth, cellular repair
and immune system regulation. This is the reason that milk is called a “complete protein” that
contains all the essential nine amino acids necessary for your body to function effectively.

3. Milk benefits bone health:

Consuming milk has been associated with healthy bones. The reason behind it is the powerful
combination of nutrients including calcium, potassium, phosphorous, protein and vitamin K2.
All of these nutrients are proven necessities for maintaining strong and healthy bones.

4. Helps prevent weight gain:

This is a misconception that milk promotes weight gain. The studies have shown that milk
intake is linked to a lower risk of obesity. The conjugated linoleic acid present in the liquid can
boost weight loss by preventing fat breakdown and inhibiting fat production.

5. Milk is a versatile ingredient:

Milk is a nutritious fluid that offers a vast number of health benefits.

41
42
Disadvantages of AMUL Milk

1 Rising market of competitors: The competitors of Amul milk are rising. Companies like Britannia,
Go, Nestle and Mother Dairy are also getting ahead in the game.

2 Expensive Price: Amul milk variants tend to be priced higher than other companies. The reason
Amul claims is due to their quality, but often consumers pick the lower priced variant just because of the
affordability.

3 Tackling the Rural Market: The people residing in the rural belt like to have raw cow’s milk more
than the pasteurized version. Better knowledge of them would increase the market.

43
Data Analysis and Interpretation

The collected data were not easily understandable, so I like to analyze the collected data in a

systematic manner and interpreted with simple method. The analysis and interpretation of the

data involves the analyzing of the collected data and interpretation it with pictorial

representation such as bar charts, pie charts and others.

Which dairy product do you prefer?

44
2. Are you satisfied with the dairy product you are consuming?

3. What do you like in these products most “Quality, Availability, Price or Taste”?

45
4. Do you get milk pouch at _______________.

5. What is total consumption of milk in litre/day?

46
6. What is your monthly expenditure on milk (in Rs.)?

7. In pouch milk which brand do you prefer?

47
8. AMUL tagline is "......................................................."

9. Do you think the price of the product is low compared to competitor’s product?

48
10. If you buy AMUL milk pouch which pack you purchase?

11. Can you recall AMUL advertisement ?

12. Consumer’s opinion towards AMUL Products :

49
Results :
• Over 62% people chooses pouch packets and total of 92% are satisfied with dairy products.

• Quality liked most, proceeded by taste , availability and price respectively.

• Daily consumption of milk is upto 3 liters for over 65% of peoples.

• Amul is preferred most by 74% and proceeded by Mother dairy (22%).

• 88% recalls the Amul tagline and over 84% recalls its advertisement.

• Amul Gold purchased by 34% followed by AmulTaaza (46%).

• Over 82% liked the service of Amul products.

50
Limitations :
• Time frame required was not enough to survey a greater number of outlets.

• The Pandemic “Covid’19” drops the quality of research.

• Lack of research experience.

• Convenience Sampling provides little-bit homogeneous results.

51
Conclusion and suggestions:
• It is found that Amul has a strong brand value in the market, and it increases rapidly through

its advertising.

• Amul focus on Advertising, Quality and customer service which makes it a chief brand in dairy

industry.

• Competitors like mother dairy focus on availability, thus they attracts only existing customers

and narrowing their captured market.

• Amul should provide doorstep facility which is preferred from survey.

• The demand of Amul products is higher than its supply which impose customers to buy

competitors’ products.

52
References

i. Google, www.google.co.in , Introduction, literature and data analysis


ii. Google, www.wikipedia.com , Introduction and history
iii. Google, www.amul.com, Company details, 04/2020
iv. Google, www.marketresearch.com , Competitors analysis
v. Google, www.dairy.com , Industry Profile, 04/2020
vi. Google, https://forms.gle/8HiRuZuBfLXRMeYw6 , Survey link

53

You might also like