TABLE OF CONTENTS:

INTRODUCTION

HISTORY

ACHIEVEMENTS

SWOT ANALYSIS

MILESTONES

MARKETING ASPECTS

HUMANRESOURCE ASPECTS

FINANCIAL ASPECTS

PERFORMANCE AND GROWTH

Amul-The Taste of India

Introduction : Amul is an Indian dairy state government cooperative society, in
Gujarat. Formed in 1946, it is a cooperative brand managed by the Gujarat Cooperative
Milk Marketing Federation Ltd. (GCMMF), which today is jointly controlled by 36 lakh milk
producers in Gujarat. Amul spurred India's White Revolution, which made the country the
world's largest producer of milk and milk products. Word AMUL stands for Anand Milk
Union Limited. Kaira Union introduced the brand "Amul" for marketing its product range.
The word "Amul" is derived from the Sanskrit word 'Amulya' which means 'priceless' or
'precious', a name proposed by the founding leader of Anand Agriculture College, Maganbhai
Patel.

Tribhuvandas Kishibhai Patel under the guidance of Sardar Vallabhbhai Patel became the

founding chairman of the organization and led it until his retirement in the 70s. He
hired Varghese Kurien in 1949 and convinced him to stay and help with the mission. Under
the chairmanship of Tribhuvandas, Kurien was initially the general manager and helped guide
the technical and marketing efforts of Amul. Kurien was the chairman of Amul briefly after
Tribhuvandas Kishibhai Patel died in 1994. Kurien, founder-chairman of the GCMMF for
more than 30 years (1973–2006), is credited with the success of Amul's marketing.

History of Amul

Amul cooperative registered on 19 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, often went sour in summer, to Polson. The prices of
milk were arbitrarily determined. The government had given monopoly rights to Polson to
collect milk from Kaira and supply it to Mumbai city.

Angered by the unfair trade practices, the farmers of Kaira approached Sardar Vallabhbhai
Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to
form a cooperative (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 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.
By June 1948, the KDCMPUL had started pasteurizing milk for the 'Bombay Milk Scheme'.
Under the selfless leadership of Tribhuvandas Patel, in 1973, Amul celebrated its 25th
Anniversary with Morarji Desai, Maniben Patel and Varghese Kurian. 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.

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

On September 30, 2018, Prime Minister Narendra Modi inaugurated Amul's chocolate plant
in Mogar, Anand near their headquarters.

Vision:

 Liberate our farmers from economic oppression and lead them to prosperity.
 To run the organization with the co-operation of four main parties the farmers, the
representatives, the marketers, and the consumers.

Mission:

 Provide renumeratiive returns to the farmers.

 To serve the interest of the consumers by providing quality products which offer
good value for money.

Objectives:

Is to ensure that the maximum share of the consumer’s rupee goes to the milk producers.
Values:

• Commitment to producers

• Integrity

• Co-operation

• Excellence

• Quality

• Innovation

• Growth orientation

• Employee satisfaction

Symbol of Amul:

 First hand is for the farmers (producers), without whom the organization would do
not existed. Farmers are the inspiration of the AMUL – the taste of India.

 Second hand is for the representatives of processors by whom the raw milk
processed
into different finished products.
 Third hand is for marketers without whom the product would have not be able to
reached to the customer.
 Fourth hand is for customers without whom the organization could not carry on
because they are the people who consume the product.
The union of AMUL would not have been the second biggest successful company in the
world without the coordination of the above four hands.
Achievements:
Asia’s largest dairy co-operative was created way back in1946 to make “the milk producer
self-reliant and conduct milk- business with pride”. Amul has always been the trend setter in
bringing and adapting the most modern technology to door steps to rural farmers. Amul
created history in following areas:

 First self-motivated and autonomous farmers “organization comprising of more than

5000000 marginal milk producers of Karla District.

 Created Dairy co-operatives at village level functioning with milk collection centres
owned by them.

 Computerized milk collection system with electronic scale and computerized

accounting system.

 The first and only organization in world to get ISO 9000 standard for its farmers co-
operatives.

Amul is the live example of how co-operation amongst the poor marginal farmers can
provide means for the socio-economic development of the under privileged marginal farmers.

Board of Directors:

MUKESH KUMAR AGARWAL DIRECTOR

RAJESH KUMAR AGARWAL DIRECTOR

ALOK AGARWAL DIRECTOR

 RAKESH KUMAR AGARWAL DIRECTOR

Swot Analysis of Amul:

SWOT Analysis Example – SWOT analysis of Amul analyses the strengths, weaknesses,
opportunities and threats of the brand / company. Strengths and weaknesses of Amul SWOT
analysis are internal factors, while the external factors are opportunities and risks.

SWOT Analysis is a validated management method that helps a brand such as Amul to
evaluate its company and success against rivals and industry. Amul is one of the world’s
leading company for Milk and Milk products. In this article author has listed the top Amul
competitors and illustrates the segmentation of the Amul market, target group, positioning &
single sales proposal (USP).

Strengths:

Very strong market share of ice cream and Milk Products – Amul has the largest
market share in the Milk and ice cream sector, which allows to further sell other products.

 Great brand equity – Amul is a cherished brand over the years, and it is especially
worth mentioning the contribution of Amul girls and their outdoor advertising. Amul
has a brand name and has a good brand recall among customers.
 Great control of quality-although Amul has such a broad and diverse distribution
network, no qualitative concerns occur. Amul is associated with a strong network of
more than 3 million milk producers.
 Wide distribution network – Amul is a wide urban and rural distribution company.
Even in small towns and villages you can find Amul present.
 Good product portfolio-In comparison to any FMCG company, Amul has a deep
product portfolio. It has a wide range of dairy food products such as cheese, butter,
 milk, lassi, buttermilk and many more. Amul has a wide range of flavours in ice
creams too.
 Largest milk producer- Amul is the largest milk producer in the world.
 Quality – Amul is the biggest brand in Indian food. The quality of Amul is trusted.
 Great Promotional Strategies-The brand has been boosted by positive promotion and
marketing campaigns. A renowned Amul Girl is the mascot of Amul Brand.

Weaknesses

 Cost of Operations and Margin: Operational activities of Amul’s is massive. And

that’s the size. In fact, the market is so difficult to maintain the margins every day.
Therefore, Amul needs to keep the operations the same way they are doing today to
confront international players. It’s a perpetual obstacle for Amul rather than a
weakness. In reality, the company faces a significant supply shortage during the
summer months.
 Chocolates – To expand the range and improve the bottom line, Amul requires more
products in Chocolate Segment.
 Competition – Heavy international and domestic ice cream and milk products reduces
the market share of Amul.

Opportunities:

 Amul is exporting its products in different countries like UAE,

Singapore ,Australia ,U.S.A and Gulf countries. Being Asia’s largest milk brand
AMUL has acquired significant position in the global market.
 Day by day increase in the collection of the milk, AMUL has wide opportunity to
produce variety of products like Choco Flakes.
 Large demand in the market.

Threats:

 With the advent of multinational companies in India the companies have intensified.
Amul is facing a tough competition with the companies like Cadbury, Nestle and
Britannia.
  In the health drink segment for its ‘Stamina’ Amul is facing competition with PepsiCo
India, Parle Agro etc. Similarly in beverage section also it is having a lot of
competitors.
 Animals are now taken as side business by the farmers. Their literacy poses a threat to
change their mindset thereby affecting the organisation.
 Changes in government policies.

Milestones:
Marketing Aspects of Amul: -

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.
Market Research:
Market research is a method of getting facts to be used by the executives in formulating
policies and plans. It enables a manufacturer or producer to know what the customers want, at
what time and what quantity. It is an organized attempt to reduce market risk. The principle
task of marketing research is to widen the basis of facts upon which business plans can be
laid. Marketing research shows changes from time to time , if any. AMUL conducts basically
two types of market research. One is for products and another for the advertising conducted
by the company. These research results serve as an input in future decision making. The
company basically collects feedback from the customers, about the effectiveness of its
advertising campaign and liking of the product especially in case of new products launched.
It tries to find out by conducting a survey in a target market whether or not the product is
liked by the consumers and ask for their suggestions for improvement. However AMUL is
not much into conducting research before the launch of the product. Most of its research is
done only once when the product is already launched in the market. It doesn’t have any
separate department for this purpose but its sales agents themselves do the work of research
for the company. Yet the results are almost comparable to those conducted by professionals.

4 PS OF AMUL COMPANY:

 Product: -Tracks consumer needs & their changing lifestyles, & accordingly develops
products to suit their needs. Product quality plays a paramount role & so does
packaging.
 Pricing :- The main USP of Amul brand is its low pricing. It hits at the transnationals
by reducing its prices on its product portfolio. The competitive advantage is its
“backward integration” strategy, which helps substantially in cost reduction.
 Place :-Any food company requires a dedicated cool chain network. Amul boasts of the
largest cold chain network (18000 refrigerators) in India, as compared to any other
company. It is surprising to note that it sells pizzas in rural markets too.
 Promotion :- Amul spends very less on its advertising budget, but spends it very
effectively. It has the power of an umbrella brand Amul, which is highly respected
brand name & enjoy the trust of 1000 million households. Its brand mascot, the Amul girl,
the co-operative has been able to get away with spending just one percent of its revenues on
advertising. In contrast, its competitors spends anywhere between 7 to 10 percent on
advertising. Amul positioning is “Value for Money”.

Product Life Cycle:

A product passes through distinct stages during its life in market, each posing different
challenges, opportunities and problems. Profits rise and fall at different stages of the
product life cycle. There are four different stages of product life cycle, namely:
1. INTRODUCTION STAGE
2. GROWTH STAGE
3. MATURITY STAGE
4. DECLINE STAGE
Different products of AMUL are in different stages in the product life cycle. Products like
milk, butter, chocolate and cheese are in the maturity stage, while ice-creams , chocolates
are still in the growth stage. On the other hand, products like milk powders, infant food,
frozen food items and mix are in introduction stage. The company adopts aggressive selling
techniques for those products which are in the introductory stage, while very less
promotional programmes are carried out for those products which are in the growth or
maturity stage.

PRODUCT MIX:

 A product mix consists of all the product lines and items that a particular seller
offers for sale. A company’s product mix has four important dimensions: width,
length, depth and consistency. Product mix width refers to how many different
product lines the company carries.
 AMUL has 4 different product lines namely milk and milk products, chocolate
and ice-cream, wet products and dry products.
 Product mix length refers to the total number of items in the mix. In the milk and
milk products line there are 14 different products, while in ice-cream and
chocolate range there are 21 products and in wet and dry products line there are
20 and 10 different products respectively.
 Product line depth refers to how many variants are offered of each product in the
line. Product line consistency refers to how closely related the various product lines
are in the end use, production requirements, distribution channels or some other
ways.
 Although the products vary in many ways there is still product line
consistency in AMUL. All the products of AMUL are marketed through same
channels of distribution.
MARKETING STRATEGIES: -
MARKET SEGMENTATION: Market Segmentation is the act of sub dividing a market
into distinct sets of customers who merit attention. Targeting these customers for marketing
by evaluating, selecting, and concentrating becomes a corollary to segmentation. Market
segmentation assumes importance in the context of intense competition market is
bombarded with. A market consists of buyers, and buyers differ in one or more ways.
They may differ in their wants, resources, locations, products requirements. These
variables have to be considered in the process of segmentation. There are different levels
of market segmentation. They are mass marketing, segment marketing, niche marketing
and micro marketing. Markets can be segmented on the geographical basis,
demographical basis, psychological basis, behavioural basis and loyalty status.
AMUL segments its market on the following basis:
1. GEOGRAPHICAL BASIS: This segmentation is done on the basis of the lifestyle of
people in different regions and their tastes and consumption patterns which are distinct
according to their geographical situation. AMUL has segmented India geographically into 5
zones.
2. DEMOGRAPHICAL BASIS: They have segmented its market on the basis of the
socio-economic status of the customers i.e., on the basis of their purchasing power and
income level as follows:
GROUP ‘A’: Consumers falling in this group are from higher social and economic class.
GROUP ‘B’: Consumers falling in this group are from middle socio-economic class.
GROUP ‘C’: Consumers falling in this group are from the lower middle class.
MARKET TARGETING: After segmenting the market, company evaluate the
various segments and decides how many and which ones to target. Generally, the market is
targeted in three ways:
 UNDIFFERENTIATED MARKETING
 DIFFERENTIATED MARKETING
 CONCENTRATED MARKETING
AMUL uses undifferentiated marketing strategy for targeting its customers as far as its milk
and milk product line is concerned. While the company implements differentiated marketing
strategy for targeting its customers for the other product lines that are ice creams and
chocolates, wet products and dry products. Differentiated marketing means market coverage
strategy in which a firm decides to target several market segments and designs separate offers
for each. AMUL targets its customers according to the segments like geographic and
demographic.

PACKAGING: Packing includes the activities of designing and producing the container
for the product. Packaging has become the potent marketing tool. Well-designed packages
can create convenience and promotional value. Various factors contribute to packaging
growing use as a marketing tool:
• SELF SERVICE
• COMPANY AND BRAND IMAGE
• INNOVATION OPPORTUNITY
Packaging of the products of AMUL varies according to the nature of the product. As most of
the products are perishable in nature special care is taken in packing them. MILK AND
MILK PRODUCTS are packed in plastic bags or containers, while ICE-CREAMS AND
CHOCLATES are packed in cardboard packing. The company maintains the standards
prescribed by BIS, with regards to packing. These products are then packed in cartoons, for
greater safety measures and for transporting them to the market.

LABELLING: Labelling printed information that appears on or with the package, is also.
The labels of the products of AMUL are attractively designed. It contains all the information
as per statutory requirements. Information like name of product, brand name, logo, date of
packing & manufacturing, expiry date, price, code number, ingredients, storage and usage
instructions, weight, manufacturers and marketer’s name, logo showing “PURE VEG” etc
appears on the label of the products.

BRANDING: A brand is a name, term, sign, symbol or design or a combination of these

used to identify a product or company. A trademark is a legally recognized brand. Branding
has become so strong that today hardly anything goes unbranded. Today customers view a
brand as an important part of the product and branding adds value to a product. Brand names
help customers identify products that might benefit them and also tells the buyer something
about the product quality. To the seller’s brand name and trademark provides legal protection
for unique product features that otherwise might be copied by the competitors and it also
helps them to segment markets.
PRICING STRATEGY:
AMUL takes into consideration all the below mentioned factors, this is true for all the
products.
• Cost of raw materials
• Cost of labour
• Profit margin of distributors
• Prices of the competitors
• Demand and supply position in market
AMUL employs different pricing policies for different products depending upon the life cycle
stage of the product, market condition and the nature of product.
In case if the product is newly launched in the market the company doesn’t emphasize on the
profit margin and keeps its prices as low as possible so as to penetrate in the new market.
However, in case of the already established products the company uses a mix of cost-plus
pricing approach and competitor-based pricing approach i.e., it sets its prices keeping in
view the cost of production, desired profit margin and prices of competitor’s products.

PROMOTION STRATEGY: ADVERTISING

Amul has had one of the most successful Ad campaigns in the country. The reason for the
unprecedented success of the Amul ads is because of their simplicity. These Ads do not
involve any high flying or hi-tech special effects. Another main reason for their success is the
range of topics they cover in their Ads. The Ads always take a shot at the current hot topics in
the news. Such has been the popularity of these campaigns that people go down to the nearest
Amul hoarding just to see the latest Ad.

HUMAN RESOURCE ASPECTS:

MAJOR FUNCTION OF HUMAN RESOURCE DEPARTMENT

1. Recruitment and selection
2. Training and development
3. Performance appraisal
4. Salary and wage administration
5. Employee turnover
6. Compensation
RECRUITMENT:
There are two types of Recruitment sources followed by AMUL:
INTERNAL SOURCES: Internal sources include personnel already on the payroll of the
organization.
 Present Permanent Employees.
 Employee Referrals
 Former Employee
EXTERNAL SOURCES: These sources lie outside the organization in AMUL they
consider following sources for recruitment:
 Campus Interview
 Unsolicited Application
 Application Blank
 Placement Agencies

HUMAN RESOURCE POLICY

RECRUTMENT POLICY:
Entry level qualification:
Below officers’ cadres-
1. S.S.C / H.S.C Attendant Operator – Dairy (AOD) – G Gr. Worker.
Taken as apprentice under trade apprentice Act /3 yrs. Apprenticeship, then based on their
appraisal report, selected as temporary worker. After total 5yrs of work, may be selected as
G-Grade Worker.
2. Professional Qualification E/F Grade Worker (Boiler Attendant).
3. BA / B.COM / M.COM / M.A (general) MSW / MRM /MRS M.E_Biz of Gujarat
Vidyapeeth and C Grade Worker similar Non – University Institutions.
4. B.Sc. / M.Sc. / Diploma Engineers B Grade workers. Apprenticeship Lab assistant for 1yr
months for B.SC & M.SC; 1yr for Diploma Engg. Then 2/3 yrs. as trainee technician, then
based on appraisal Appointed as Technician B Grade.
5. BBA Management Trainee for 1yrs.Jr. Assistant
(a) M.SC (Agriculture) /MRS /MRM /MSW /MLW/ MBA/ B. Tech (DT) / MCA
(From recognized University) 1 yr. as a trainee then appointed as senior officer.
(b) Inter CA /Inter ICWA / BE 1 yr. as training period, then appointed as Dy. Sup. Deputy
Superintendent
SELECTION PROCESS:

Selection procedure is concerned with securing relevant information about the applicant. The
main objective of selection process is to determine whether an applicant meets the
qualification for a specific job and choose the application that is most likely to perform well
in the job. The Selection process in AMUL is as under

Vacancy in any department

Approval from M.D

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Collection of application

Securitize the application

Interview

Medical check-ups

Selection

After selection, the employees generally have probation period. In AMUL probation period is
different for different type of employees. Probation period for officers is 12 months, 6 months
for clerical employees and 3 months for workers.

TRAINING AND DEVELOPMENT

It is a subsystem of an organization. It ensures that randomness is reduced and learning or
behavioural change takes place in structured format. Training is the process where the work
related knowledge, skills and attitude are given to new employees. By which they aware the
policies rules and increase technical and manual efficiency and create of responsibility.
AMUL has accepted three methods for the training.

TRAINING PROCEDURE IN AMUL

1. On the job method

2. Off the job method
3. In house training
4. Out house training

Training and Development programme of AMUL is an ongoing programme since its

inception as it believes the development of the institution lies in the development of the
people – producer members. It organizes various training programmes based on the need and
a few of these are as follows:

 VMS Workshops:

This programme aims at to create a document on Vision, Mission and Strategy for Village
Dairy Co-operative Societies. This process has helped to involve and develop dairy farmers
for their future planning and review of the growth thereby improve their income and quality
of life.

Management Development Programme:

This programme aims at capacity building of Secretaries of Dairy Co-operative Societies
in better management and maintenance of ISO standards. For the Management
Committee Members, it imparts training on management strategies, co-operative laws and
their roles and responsibilities.
AMUL Darshan:
This programme aims at exposing producer members to various facets of dairy operations
to keep them informed and aware of the development and adopt to good management
practices in production of milk. The exposure visits include visit to Cattle Feed Plant,
Dairy Plant, Chocolate Plant, Dairy Demonstration Farm and presentation by the Cooperative
Development Group.
Self-Managing Leadership Programme:
AMUL undertakes Self Managing Leadership Programme for women resource persons
through Brahmakumari Iswariya Vishwa Vidyalaya at Mt. Abu to bring a value based
approach in development process.

PERFORMANCE APPRAISAL
In AMUL various attributes consider for the appraisal of employee.
• Job knowledge
• Work output
• Quality of work
• Interest in work
• Initiatives
• Past records
• Seniority
This appraisal is also the rating scale. Method appraiser also appraised employee by
following:
 Outstanding
 Good
 Satisfactory
 Poor
The overall assessment is done through above rating and also the comment of reviewing
officer is included. Apart from this the performance in liked allowance is provided in relation
with performance that is
 25%
 50%
 100%
 Not allowed
Generally, in AMUL on base of performance appraisal employee of managerial level gets
specials allowance. While for workers they get promotions.

COMPENSATION
In Amul, The workmen's Compensation Act. 1923 is very well executed. The compensation
is given lo employees as per the Act.
In the case of major accident occur in organization and if any worker gets injure that lime
organization take care of that employee.
If the employees under medical treatment and unable to came in organization for job, then
half salary will be given to that employee until he/she will again Join organization. Employee
also gets all incentives during this period. Union provides complex expanse of medical
treatment to his/her employees.
They have a provision for that amount in welfare fund. For that a report from surgeon is
considered. In case of minor accident, if any employee gets injure that time disability
certificate take as evidence for the payment of compensation. According to disability
certificate union decides the compensation. Disability certificate must be issue by doctor
from civil hospital.
According the Act, if accident takes place because of worker mistake than he/she will be
unable to get compensation. But in AMUL even if accident occurs by workers mistake in that
case union paid compensation according to injury. For that, employees must pass through
medical report. In case of accident, if worker get serious injury and he/she will be unable to
do same work after getting recovery than management give them relief by transferring them
in another section for suitable world.