A REPORT

ON

DETAILED STUDY OF SALES AND

DISTRIBUTION MANAGEMENT OF AMUL
FRESH PRODUCTS

By

Dipankar Das
77119781707

AT

AMUL PVT LTD

MUMBAI

AMUL 1
 REPORT

ON

DETAILED STUDY OF SALES AND

DISTRIBUTION MANAGEMENT OF AMUL
FRESH PRODUCTS

By

Dipankar Das
77119781707
(Batch 2019-2021)

A report submitted for the fulfilment of the

requirements of
PGDBM program of

NMIMS (Distance)

Date of Submission: 27th November, 2021

AMUL 2
AUTHORIZATION

I, Dipankar Das, here by state that this project work entitled “A Detailed Study on Sales and
Distribution Managed of Amul fresh products” assigned at “Amul Pvt Ltd.” is an original
piece of work done and submitted by me towards fulfilment of the requirement of PGDBM -
MM Program of NMIMS (DISTANCE). The findings and conclusions expressed in this
report are genuine and for academic purpose. It has neither been submitted nor published
anywhere before any resemblance to earlier project or research work purely coincidental.

Dipankar Das
77119781707
Batch: 2019-2021
NMIMS (Distance)

AMUL 3
ACKNOWLEDGEMENT

Through this report, I take this opportunity to express my sincere gratitude to all
those who have helped me in making my internship at AMUL PVT LTD, a success.
First of all, I would like to thank the academic fraternity at NMIMS (DISTANCE)
for having such a dedicated system in place, where students like us are given the
opportunity to learn about their areas of interest. I would like to thank and express
my deepest sense of gratitude towards Mr. Khandu Shahare, my guide at
AMUL PVT LTD for continuous guidance. At last, I would like to thank the
entire team of AMUL who have contributed to the completion of my PROJECT
REPORT. I acknowledge their efforts in making me understand the various
functions of Dairy Industry for developing the deliverables to the organization.

AMUL 4
TABLE OF CONTENTS
SR.NO CONTENT PAGE.NO

1 ABSTRACT 7

2 EXECUTIVE SUMMARY 8-9

3 Chapter 1- INTRODUCTION 10

3.1 About the industry 10

3.2 Company overview 10-11

3.3 Project Title 11

3.4 Description of the Work 11

3.5 Objective of the PROJECT 11-12

3.6 Scope of the PROJECT 12

3 .7 Limitations 12

4 Chapter 2- Industry Overview 13

4.1 Overview of Dairy Industry 13-14

4.2 Michael Porter’s Five Forces Analysis 14-15

4.3 Pestle Analysis 16-17

4.4 Impact of Covid -19 on Dairy industry 18-19

5 Chapter-3 Company overview 20

5.1 About Amul 20-23

5.2 Vision and Mission of Amul 24

AMUL 5
 5.3 Amul Business Model 24-26

5.4 Products of Amul 27-29

5.5 Sales Turnover of Amul from the year 2011 to 2020 30

5.6 SWOT Analysis of Amul 31-32

5.7 Competitor Analysis of Amul 33-35

6 Chapter -4 Work Done during PROJECT 36

6.1 Market visit and Retailer’s Survey 36-37

6.2 Brand awareness of Amul probiotic products 37-38

6.3 Amul Distribution channel 39

6.4 Responsibilities undertaken during PROJECT 40

6.5 Work done from home during Covid pandemic 40-41

7 Chapter -5 Primary Research 42

7.1 Questionnaire Survey 43-54

7.2 Findings from the Project 55

7.3 Findings from the Primary Research 56

8 Chapter 6- Recommendations 57

9 Chapter -7 Learnings and Challenges faced 58

10 Chapter -8 Conclusion 59

11 Chapter -9 References 60

12 Chapter 10 – Annexure 61-64

AMUL 6
ABSTRACT:

This Project Report covers a study of Amul fresh product category and strategy to
increase the sale of Amul milk and other fresh products along with the distribution
management. In this report, I am going to share my 3 months internship
experience in the company.

As a part of my internship, I was working with the sales department of the Amul
Pvt Ltd. The sales department consists of 8-10 members with Mr Khandu Shahare
as one of the Senior Sales Executive who was also my mentor.

The main objective of the department is to place newly launched product of Amul
in the market, along with to generate orders from the retail outlets for new as well
as the existing fresh products of the company, To deliver the products on time so
that it will reach to customers on the and there will be a proper supply chain between
organization and the customers.

In my tenure I got a chance to work on various aspects to bring useful insights to

the organization, From completing surveys through questionnaire’s to generating
orders from the retail outlets and ensuring on time Delivery of the products to the
retail outlets, This Internship experience has taught me great communication skills,
how to promote a product and team work.

AMUL 7
EXECUTIVE SUMMARY

Executive summary submitted in fulfilment of the requirement of PGDBM - MM

Program of NMIMS (Distance).

Student Name: Dipankar Das Enrollment No: 77119781707

ORGANIZATION DESCRIPTION: Amul is an Indian dairy cooperative brand

managed by GCMMF which is the largest food products marketing organization of
India. It is the apex organization of the dairy cooperatives of Gujarat. Its aim is to
supply goods with best quality and purity at very reasonable rates.

TITLE: “Detailed Study of Sales and Distribution Management of Amul Fresh

Products”.

OBJECITVE: The main objective of the Internship is to analyze the customer

buying patterns and Amul strategy with retailers in order to help Amul better
strategize the increase in sale of Amul fresh products in allotted areas of Mumbai.
Through a market research survey on consumer buying behaviour for Amul fresh
products, the key objectives are the following:
 Increase the market share of Amul products by conducting a product awareness campaign
 Understand the distribution channel of the Amul fresh product segment and improve its
operation and supply chain management
 Identify measures to improve retailer and distributer relationship
 Identify and suggest solution to close gap between different channels of supply chain
 Increase the sales of Amul low performing products by new promotional campaigns

PURPOSE: The purpose of the internship was to get exposure to Food processing
FMCG industry and to learn the significance and different aspects of:
 Retailer-distributer relationship
 Supply chain segment in a Food processing FMCG industry
 Marketing strategies
 Consumer buying trends

METHODOLOGY: The Research methodology was Primary Research on

consumer market and Behavior, Keeping effectiveness of the sales of Amul fresh
product into consideration. By leveraging the consumer behavior and distribution

AMUL 8
Management data, a detailed analysis was conducted to identify measures to
improve the awareness of the brand, increase the market share of Amul products
and close the gaps in different channels of supply chain.

CONCLUSION: It has been observed that there are many factors which affect the
buying decision of consumers such as quality, price and availability. Improvement
in the distribution management of Amul fresh products and strategy to tape the
competitor’s market are key to the acquisition and engagement of consumers.

RECOMMENDATIONS: Ensuring the availability of all the fresh product ranges

in the nearby shops would increase the convenience for the customers to purchase
the products. Moreover, increase in the margins on various products especially the
milk products would help increase the profitability.

LIMITATIONS: Due to the current pandemic (COVID 19), it was cumbersome to

access the large volume of consumer and distributor management data. As a result
of which, the survey sample size is ~50 consumers, though healthy enough to
conduct the analysis. Moreover, COVID 19 has slightly skewed the distributor
management due to limitations in resources as a result of lockdown.

AMUL 9
CHAPTER 1- INTRODUCTION

3.1 ABOUT THE INDUSTRY:

India is the highest milk producer in the entire globe. India is well known as the 'Oyster'
of the global dairy industry, with opportunities galore for the entrepreneurs globally. It
might be the dream for any nation in the world to capitalize on the largest and fastest
growing milk and milk products' market. The dairy industry in India has been witnessing
rapid growth with liberalization. The main objective of the Indian Dairy Industry is to
manage the national resources in a manner to enhance milk production and upgrade milk
processing using innovative technologies. The industry contributes about Rs.115970 to
the national economy. India is the largest producer of milk in the world.

The Indian dairy industry is divided into the organized and unorganized segments. The
unorganized segment consists of traditional milkmen, vendors and self-consumption at
home, and the organized segment consists of cooperatives and private dairies. As per
the Annual Report for FY19 of Dept. of Animal Husbandry, Dairying & Fisheries,
Ministry of Agriculture & Farmers Welfare, GOI, co-operatives & private dairies still
procure only about 20% of the milk produced in the country, while 32% is sold in the
unorganized market and about 48% is consumed locally. About 40% of the milk sold is
handled by the organized sector and the remaining 60% by the unorganized sector.
However, in most of the developed nations, 90% of the surplus milk is processed
through organized sector. With the increase in population, rise in per capita income,
changing lifestyle, affordable aspirational food habits, export opportunities etc., the
demand for milk is expected to rise.

3.2 COMPANY OVERVIEW:

Anand Milk Union Limited or Amul is an Indian dairy company, based at Anand in the
state of Gujarat. Formed in 1948, it is a cooperative 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. Gujarat Cooperative
Milk Marketing Federation Ltd. (GCMMF), is India's largest food product marketing
organization with an annual turnover (2016-17) of US$ 4.1 billion. The total milk
procurement by 18-member unions covering 33 districts during the year 2016-17

AMUL 10
averaged 181.7 lakh kilograms (18.17 million kg) per day. Amul is present in 50
countries, and India alone has more than 7200 exclusive parlors.
The GCMMF is the largest food products marketing organization of India. It is the apex
organization of the dairy cooperatives of Gujarat. It is the exclusive marketing
organization 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 31 lakh (3.1 million) village milk products with crores of consumers in
India.

3.3 PROJECT TITLE

“Detailed Study of Sales and Distribution Management of Amul Fresh

Products”.

3.4 DESCRIPTION OF THE WORK

The main objective of this Project is to analyze the buying behavior of the
customer’s and retailers related to fresh products and also to increase the sales of
fresh products in a particular area of Mumbai.
This internship programme was a great chance to learn and work on Amul strategy
with respect to number of retailers in a certain market and availability of stock in
the plant. This analysis will be carried out after data collection during survey of the
market. The measures to improve Retailer participation will be identified during the
Market Research survey by analyzing the relationship between the distributors and
Retailers and the cost of getting amul products and the margin of profit on the
products. This study will also help to identify the problems between different
channels of a supply chain. The process would involve analysis of quantitative Data
and sales.

3.5 OJECTIVE OF THE PROJECT:

The PROJECT will aim to bring useful and important insights to the organization
in terms of the Width and Depth of Distribution (for particular areas given) and the
measures which can be taken by the organization in order to improve the Retailer
Participation for Amul Fresh Products.

AMUL 11
Also this project aims to increase the sale of Amul fresh products in particular areas:

 To understand the constraints for insufficient market coverage.

 To Understand the Distribution channel of the Amul fresh product segment and to
improve its operation and supply chain management.
 Increasing product and brand awareness.

 Increasing the number of retailers.

 To place new as well as existing product in the market.

 To generate orders from the retail outlets and delivery of the products.

 Identification of the competitors in the market in every segment of products.

 To study competitors.

3.6 SCOPE OF THE PROJECT:

The aim of any organization is to grow and sustain its development. With the same
purpose the scope has been laid, which focuses on the organizational development
of AMUL by the virtue of its products as well as the services delivered to the
customers by strategies adopted. Amul also tries to increase its sales every year by
launching new products and improving existing products. This study will help
company in providing information about current competitive position of Amul
Fresh products in markets.

3.7 LIMITATIONS:

Time constraint was one of the major limitations to the study. Most of the customer
are not ready to interact with the field workers. Language barrier is found to be a
short come, Trouble in Understanding Marathi Language, most of the Retailers talk
in their mother tongue language which many of a time created difficulty in
coordination.

AMUL 12
CHAPTER -2 INDUSTRY OVERVIEW

4.1 OVERVIEW OF DAIRY INDUSTRY

India is the highest milk producer in the entire globe. India is well known as the 'Oyster'
of the global dairy industry, with opportunities galore for the entrepreneurs globally. It
might be the dream for any nation in the world to capitalize on the largest and fastest
growing milk and milk products' market. The dairy industry in India has been witnessing
rapid growth with liberalization. The main objective of the Indian Dairy Industry is to
manage the national resources in a manner to enhance milk production and upgrade milk
processing using innovative technologies. The industry contributes about Rs.115970 to
the national economy. India is the largest producer of milk in the world.

The Indian dairy industry is divided into the organized and unorganized segments. The
unorganized segment consists of traditional milkmen, vendors and self-consumption at
home, and the organized segment consists of cooperatives and private dairies. As per
the Annual Report for FY19 of Dept. of Animal Husbandry, Dairying & Fisheries,
Ministry of Agriculture & Farmers Welfare, GOI, co-operatives & private dairies still
procure only about 20% of the milk produced in the country, while 32% is sold in the
unorganized market and about 48% is consumed locally. About 40% of the milk sold is
handled by the organized sector and the remaining 60% by the unorganized sector.
However, in most of the developed nations, 90% of the surplus milk is processed
through organized sector. With the increase in population, rise in per capita income,

AMUL 13
changing lifestyle, affordable aspirational food habits, export opportunities etc., the
demand for milk is expected to rise.

Dairy sector in India is fairly organized to the tune of ~35 per cent compared to fruits
and vegetables sector where we see processing levels to be around 3-5 per cent. This
increased organized market drives multiple benefits for the sector. We find improved
quality dairy products due to adherence to FSSAI guidelines. Good quality products
ensure expanded market reach. India exported dairy products worth $ 187 Million in
2019-20.

In the organized sector, private dairy companies are investing in developing an efficient milk
procurement network as well as marketing of liquid milk and valued added products. It is
noteworthy that the percentage of milk being handled by the private sector has exceeded that
of the cooperative sector. This ratio is expected to further increase in favour of the private
sector in the coming years. Some of the major organized private players include Amul,
Britannia, Hatsun Agro, Parag Milk Foods, Schreiber Dynamix, Heritage Foods, Tirumala
Milk Products, Sterling Agro, VRS Foods, Nestle India and Prabhat Dairy. We observe that
means of production and consumption are modernizing as the market evolves toward
industrial packaged products and product variety. The rapid growth of private sector shows
that the sector is prospering in dairy sector with a focus on value added products.

4.2 PORTER’S FIVE FORCE MODEL:

Porter’s 5 Forces is a model that identifies and analyses five competitive forces that
shape every industry, and helps to determine an industry’s weaknesses and strengths.
Frequently used to identify an industry’s structure to determine corporate strategy,
Porter’s model can be applied to any segment of the economy to search for profitability
and attractiveness. The model is named after Michael E. Porter.

 Porter’s 5 Forces Model is a framework for analyzing a company’s

competitiveenvironment.

AMUL 14
  The number and power of a company’s competitive rivals, potential new
market entrants, suppliers, customers and substitute products influence a
company’s profitability
 Analyzing these elements can be used to guide business strategy to increase
competitive advantage.

Threat of substitutes (Medium)

Although many drinking substitutes to milk are available, the dairy industry enjoys high
profitability in case of any other dairy product.

Competitive rivalry (High)

There will be large number of competitors at national level (high) as there are so many
named brands. Also, launch of private label brands by big retailers, which are
competitively priced with offers and discounts, will limit competition for weak brands.
Also, local doodhwala’s can give tough competition considering local regions and small
areas.

Bargaining power of buyers (High)

While rising incomes and growing youth population have been key growth drivers of the
sector, brand consciousness has also aided demand. With low switching cost inducing
customers to shift to other products, there will only be more demand for new products.
Presence of multiple competitors, Dudhwalas will lead customer to switch easily.

Threat of new entrants (medium)

Any new competition in the market poses threat to the existing players in the
industry. Also, companies will be forced to spend aggressively on advertisement,
which will only hurt the business in the long run. Threat of new entrance is high as
there is no entry barriers in these product segments. It requires high capital
investment and difficult to achieve economies of scale.

Bargaining power of suppliers (Low)

Mainly the suppliers are rural milk producers and thus their bargaining power is
very low.

AMUL 15
4.3 PESTLE ANALYSIS

A PESTEL analysis or PESTLE analysis (formerly known as PEST analysis) is a framework

or tool used to analyze and monitor the macro-environmental factors that may have a
profound impact on an organization’s performance. This tool is especially useful when
starting a new business or entering a foreign market. It is often used in collaboration with
other analytical business tools such as the SWOT analysis and Porter’s Five Forces to give a
clear understanding of a situation and related internal and external factors.

Political Factor:
Government policies and regulations regarding agricultural products will affect the farmer’s
decision to keep livestock and extract milk out of them relative to other uses of livestock. In
certain countries which import agricultural products instead of producing its own, the dairy
industry would also be affected by import laws as well as the government’s foreign relations.
Similarly, a company that exports its dairy products must take care to comply with the
regulations of its own country, but also of the country to which it wishes to export to.

Economical Factor:
The most obvious economic factor affecting the Dairy industry would be purchasing power in
the economy as a whole. Milk in its most basic form is considered an essential product and
people still make an effort to purchase milk regardless of their financial position. As a result
the sales of milk would not be significantly hit in case of reduction in a family income, unless
the income is reduced to a bare minimum. On the other end of spectrum, an increase in
purchasing power will only boost the sales of milk up to a certain level after which it would
taper off, as there is a limit to the amount of milk a family can assume.

Social Factors:
The individual buying decision is mainly the output of social factors like culture and society.
Friends, peer groups, families, reference groups can have a major influence on the
consumption pattern and buying behavior of the consumer. Vegan lifestyle is being
increasingly adopted by a large number of consumers. Increase in the number of vegans
would negatively influence the dairy industry as the lifestyle itself doesn’t permit
consumption of dairy products obtained from animals. The overall picture for the company

AMUL 16
looks in a beneficial position as the Indian households are more accustomed to morning tea
and the people are in general more accustomed to milk and milk products. The culture of fast
food also promotes a certain type of lifestyle that increases the consumption of ice creams.

Technological Factors:
Technology has made it all possible for Dairy industry manufacturers to market several
different kinds of Dairy products along with the several variants of these products at very
low cost. A main factor in the upward trend of the Dairy industry has been the pace with
which technological advances have been applied into farming practices, often enough under
the pressure of falling prices and the necessity to vindicate land values resulting from
excessive optimism in periods of rising prices.

Legal Factors:
There Organizations which are assigned to regulate and monitor food items in their respective
countries. The Dairy industry is no different as it too required to abide by any laws imposed
by all food regulatory bodies in the country. For example, most countries require all food and
beverage manufacturers including dairy manufacturers, to display complete nutritional
information of all their products very clearly on the product labels. This includes calorie
counts, serving sizes, number of servings per container as well as nutrient information.

Environmental Factors:
The Dairy industry is heavily dependent on the health and availability of livestock. Plagues,
epidemic and other diseases affecting the livestock, more specifically cattle, will reduce the
quality of milk and supply will be adversely affected the livestock is killed of. The climate in
which a dairy manufacturer chooses to operate is another concern. In a warm climate a dairy
manufacturer will have to look into methods for preservation in order to be able to extend
their products’ shelf lives without the items going bad. The climate also influences the
product lines the manufacturer will branch into. In warmer regions ice creams and frozen
desserts are more successful, while in a colder region products like cheese or tea milk
powderswould be more successful than ice creams.

AMUL 17
4.4 IMPACT OF COVID-19 ON THE INDIAN DAIRY SEGMENT

Globally, the dairy supply chain has been majorly impacted by the Covid-19 Pandemic.
Despite domestic demand for milk increasing with consumers displaying a propensity
to save and stock-up essentials such as milk, the supply chains have been impacted with
logistics being a challenge. While other food sectors have also been impacted, Dairy
has seen a much harder hit because the products are highly perishable. In the Indian
context, both the Milk and Processed Milk Product Segments are expected to be
severely impacted by the COVID-19 Crisis, in terms of a demand crunch. While the
demand-supply gap may impact farmers' prices significantly; th e industry will also
suffer from a diminished export market and conservative domestic demand. The current
Pan-India lockdown has impacted liquid milk consumption by around 30-35% with the
closure of the HoReCa sector, QSR, unorganized sector, as well as sweetmeat shops.
Further, apart from the sweetmeat and unorganized segment, the others are expected to
require a minimum of 6-9 months to bounce back to pre covid level demand, post
lockdown. The loss of demand has led to a pressure on milk procurement prices.

For the Industry, given the COVID-19 situation, there is an oversupply of milk with
respect to (reduced) demand. Thus, industries procuring milk to covert to SMPs are
running at 80-100% capacities as on date against 30 to 50% in normal lean milk
production months (April-September). This excess production will lead to SMP prices
crashing domestically. Further, SMP consumption by the Ice Cream Industry will be
minimal, as the industry is expected to be impacted significantly. Meanwhile, the global
prices of SMP have also crashed from USD 3000/MT in Jan 2020 to USD 2514/MT in
April 2020 which is expected to fall further— thus impacting export opportunity of
excess SMP. Come the flush season mid-September, milk production will increase
overall. However, Industry will face the challenge of already available high stocks of
SMP and Butter Oil. This will in turn again impact dairy farmers significantly as
procurement will see a decline adversely impacting prices again. Given this scenario
CII, recommends the need to create and maintain domestic demand for Milk Powder
through a Government created strategic reserve. This may then be distributed through
PDS, which will also help the poorer section of India in terms of nutrition intake.

AMUL 18
Additionally, Milk may be distributed through Mid-Day Meal Schemes towards
ensuring nutrition availability for children. Towards strengthening the value-added
product market, such as Butter and Ghee, the Government may consider measures such
as rationalization of GST to build market resilience. In the long run, towards stabilizing
the liquidity crunch and dearth of working capital across these industries, the Banking
System should be guided to invest in 'One Health' and ESG (Environmental, Social and
Governance) projects as priority sector while restructuring the current NPAs.

The Covid-19 pandemic has impacted the dairy industry globally, and several
Governments have taken active measures to protect farmers and the industry. Recently,
the US Government announced a USD3 billion relief package for the dairy industry.
Further, the USDA has announced that USD100 million per month will be spent on
purchasing dairy products for food banks.

AMUL 19
CHAPTER 3 - COMPANY OVERVIEW

5.1 ABOUT AMUL

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food
product marketing organization with an annual turnover (2016-17) of US$ 4.1 billion.
The total milk procurement by 18-member unions covering 33 districts during the year
2016-17 averaged 181.7 lakh kilograms (18.17 million kg) per day. Amul is present in
50 countries, and India alone has more than 7200 exclusive parlors.
The GCMMF is the largest food products marketing organization of India. It is the apex
organization of the dairy cooperatives of Gujarat. It is the exclusive marketing
organization 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 31 lakh (3.1 million) village milk products with crores of consumers in
India.

It is an Apex organization of the Dairy Cooperatives of Gujarat, popularly known as

'AMUL’, whose focus is to provide remunerative returns to the farmers, this highly
remunerative price has helped in retaining the farmers’ interest in milk production.
Better returns from dairying have motivated the farmers to enhance their investments in
increasing milk production.

AMUL 20
Based on the estimated growth in market demand for Amul products and the ongoing
marketing efforts, Amul anticipates at least 20% CAGR growth in GCMMF’s business
during the next five years. Its plan is to enhance the overall milk processing capacity
from the current level of 300 lakh liters per day to 380 lakh liters per day in the next
three years. The Federation is aiming to achieve a business turnover of Rs. 50,000 crores
and become the largest FMCG organization in
India by 2020-21.

History:

Anand Milk Union Limited or Amul is an Indian dairy company, based at Anand in the state
of Gujarat. Formed in 1948, it is a cooperative 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.

The white revolution was spearheaded by Tribhuvandas Patel under the guidance of Sardar
Patel. As a result, Kaira District Milk Union Limited was born in 1946. Tribhuvandas became
the founding chairman of the organization and led it until his death. He hired Dr. Verghese
Kurien three years after the white revolution. He convinced Dr. Kurien to stay and help with
the mission.

AMUL 21
Amul-cooperative registered on 14 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. The government had given monopoly rights to Polson to
collect milk from Kaira and supply it to Bombay city

Industry Type Dairy/Fast-moving consumer

good (FMCG)

Founded 1946; 73 years ago

Founder Tribhivandas patel

Head Quarters Anand, Gujrat, India

Area Served Worldwide

Key People Rupender Singh sodhi (MD)

Revenue 38,0000 Cr

No of Employees 752 Marketing Arms

3.6 Million (Milk Producing
member)

AMUL 22
Anand Milk Unit Ltd. (AMUL) – Growth is life

• Amul Co-operative Registered on 14 Dec 1946

1946

• Amul started Pasteurizing Milk under Bombay Milk Scheme

1948

• Initiated White Revolution in India which help in formation

of GCMMF
1970

• Amul Celebrated its 25 Anniversory with Morarji Desai and

Maniben Patel
1973

• Amul was awarded with "Best of All" Rajiv Gandhi National

quality award
1999

• Amul Butter Girl Celebrated 50 years when she first

apperead in Ad title
2016

• Prime Minister Mr. Narendra Modi Inaugrated Amul

chocolate plant in Mogar, anand
2018

• Amul is sponsering Afganistan in ICC World cup 2019

2019

AMUL 23
5.2 VISION AND MISSION OF THE COMPANY

Vision:
Our vision is not just to be rated among the top five brands of India in interior field,
but more importantly to strive to attain the leadership position in making our people
aware to protect and save the nature by using plywood and related products for their
wood work.

Mission:
GCMMF endeavor to satisfy the taste and nutrition requirements of the customers,
of the world through excellence in marketing by their committed team. Through co-
operative networking, they are committed to offer quality products that provide best
value for money.

AMUL QUALITY MANAGEMENT SYSTEM

 Food safety policy

 ISO accreditation of primary dairy Co-operative societies.
 Hygienic & clean milk production drive
 Bulk Milk Chillers
 Road milk tankers
 Animal Disease diagnostic laboratory
 Animal nutrition
 Quality of life

5.3 AMUL BUSINESS MODEL:

Amul follows a three-tire structure of business model:

It starts with dairy cooperatives society at the village level. Cooperatives formed at
village which is managed by GCMMF. Milk produced at the village level is delivered
at every retail store because of excellent management by the GCMMF. It expands under
federal union at district level. Milk from village is then transferred from to state in

AMUL 24
chilling van to avoid spoilage of milk. Milk is processed through special treatment to
ensure that milk is safe to drink. Finally, it enters the federation at the state level. After
processing and packaging, milk is brought in different states and is made available at
every retail outlet.

Advantage:

Establishment of direct linkage between producers and consumers

Eliminates middlemen

Establishment of professional management

Milk producers have full control over the procurement, processing and marketing

The business model followed by Amul has made India the largest producer of milk
in the world.
Amul aims at providing the value for money products to its consumers and also keeping
in mind the demand and interest at farmers.
The Amul Model of Dairy development is a three-tiered structure. It consists of Dairy
co- operative societies at the village level federated under a milk union which functions
at the district level and a federation of member union at the state level. This model has
helped India emerge as the largest milk producer in the world. More than 15 million
milk producers pour their milk in 144,500 dairy co-operative societies across the
country. Their milk is processed across 184 District Co-operatives Unions and marketed
by 22 State Marketing Federations, ensuring a better life for millions. The Amul Model
has helped India to emerge as the largest milk producer in the world. More than 16
million milk producers pour their milk in 185903 dairy cooperative societies across the
country. The story of Amul is not just the story of the success of an enterprise or
cooperative model of business. It is the success story of India. At every stage in 73 years
of Amul, one would see how ordinary Indians can come together and create wonders.

AMUL 25
 THE AMUL MODEL:

Milk Producers
(Milking, Carrying
Payments twice a
Veterinary first aid, milk) At village
day (Deferred
Artificial level
Payment – 15days)
insemination,
Breeding services,
Sale of cattle-feed &
fodder seeds,
Training
Primary Milk Producers
Cooperative societies
(Collection, Weighing and Payment
grading) every 10
days

Milk
Products
District Cooperative Milk
Producers’ Union (Planning,
Technical processing, & packaging) Payment on
inputs, regular basis
Management
support,
Advisory
services
State Cooperative Milk
Marketing Federation
(Marketing & Distribution)

Consumer (Demand and

fulfilment)

AMUL 26
5.4 PRODUCTS OF AMUL

AMUL FRESH PRODUCTS

Amul fresh products include the list of those products which should be consumed
within short span of time or we can say the products which are consumed freshly
on the daily basis. Amul fresh product segment mainly include Milk, Buttermilk,
Curd, Lassi, etc

Some of the Amul Products are:

 Amul Milk
 Amul Gold Milk
 Amul Milk powders
 Amul Cheese
 Amul Kool and its variants
 Amul ice cream
 Amul Dahi
 Amul Paneer
 Amul Ghee
 Amul mithai mate
 Amul Nutramul
 Amul chocolates
 Amul Masti
 Amul Buttermilk
 Amul Flavoured Milk

AMUL 27
AMUL FRESH PRODUCT CATEGORY:

AMUL MILK AMUL BUTTER MILK

AMUL LASSI AMUL DAHI

AMUL 28
 NEWLY LAUNCHED PACK OF 6 POS (RANGE) – PROBIOTIC:

Pack CUP CUP CUP CUP

Sub Probiotic Probiotic Prolife Prolife
Brand Dahi Buttermilk Rose Mango
Lassi Lassi
Fat 3.1% 0.8% 1% 1%
SKU 180GM 180ML 180ML 180ML
MRP 221 15 20 20
RS/PC
Shelf 15 days 12 days 10 10
Life days days

Amul Probiotic Dahi Amul Probiotic Lassi( Rose )

Amul Pro-Biotic Lassi Amul Probiotic Buttermilk

AMUL 29
About Pack of 6 (POS)- Probiotic Range:
Pack of 6 is the newly launched product from Amul, It comes in probiotic range which
is considered to be good for health, keeping an eye on the current covid pandemic – Amul
has launched this range.

5.5 SALES TURNOVER OF AMUL FROM THE YEAR 2011 TO 2020:

AMUL 30
5.6 SWOT ANALYSIS

It is a study taken by company to understand the internal strength and weakness and
external opportunity and threat. It is used for the strategic analysis by the company. It
helps to understand the objectives of the company.

SWOT ANALYSIS OF AMUL

Strength

 Amul has a good growth as its revenue increased by nearly 18 percent for the
previous year and development revenue by 67 percent making it the thirteenth largest
dairy organization in the world.
 As Amul’s goods are popular and have been on the market for a while now, it has
established its luxury brand and its consumers are very loyal to the firm.
 Although the distribution system of Amul is small and distributed, it has maintained
its quality worldwide. The credit also goes to the fact that Amul has an incredibly
strong supply chain.
 One of its advantages is also its broad and wide variety of goods.
 The global mascot (Amul girl) used in its ads is their symbol worldwide.

Weaknesses

 With so many foreign brands competing with Amul, it is now finding its operating
costs difficult to manage. And so, particularly in international markets, they are facing
huge competition.
 A while back, Amul launched his candy, but it was unable to achieve the popularity it
aimed for.
 Most dairy products have a limited shelf life which makes the business vulnerable to
failures.
 Given the wide distribution, it is still not distributed to rural areas.
 Amul is very well known for its butter, cheese products, and milk, but the degree of
awareness for its other products like chocolates, Amul milk powder, Amul mithai is

AMUL 31
 still very low among consumers. Amul needs to increase the marketing and
advertising efforts to promote these products.

Opportunities
 Because Amul has seen strong growth in most areas, it can expand further as regards
exporting its goods to more nations.
 Since the company has now established brand identity, it will extend its product range
even further. Pulses, herbs, grains to save.
 Amul can also integrate advertisements into its operations, especially investigating the
emerging advertising trends in the internet and social media.
 Explore the rural areas by doing extensive distribution work.
 Accommodate for the increasingly health-conscious consumers who prefer low-fat
goods.

Threats

 A challenge to Amul‘s operations is domestic rivalry on the international markets as

well as increasing competition from foreign brands on the local market.
 Amul’s biggest competition is on the ice-cream market, with new brands emerging.
 Fluctuating unemployment speed in India can impact Amul’s market, as it directly
affects customers’ purchase power.
 The declining market situation across the globe will lead to losses for Amul.
 Often seasonal variations in milk production can occur which can affect the
production of all Amul products.

AMUL 32
5.7 COMPETITOR ANALYSIS OF AMUL:

Major competitors of Amul under Milk and Milk products are Prayag Milk
Foods, MotherDairy, Local Dudhwalas, and many more.

Parag Milk Foods:

Parag Milk Foods is one of Amul’s largest competitors and the second-largest producer of
milk in India. Itis popularly known among consumers through its brands Govardhan and Go,
which it uses to market its dairy products. The flagship Gowardhan brand is aimed at
consumers from the older demographic. The line includes Gowardhan Gold full-fat
milk, Gowardhan Fresh, toned milk, and Gowardhan Tea Star, specifically aimed at tea and
coffee drinkers. It also has the Pride Of Cows brand, which it uses to cater to upmarket
consumers with increased incomes who want milk that is of higher quality and comes from
specific farms.

Mother Dairy:

AMUL 33
Another of Amul’s large competitors, especially in the North Indian market, is Mother Dairy. It
was set upby the National Dairy Development Board in 1974 and has a comprehensive
distribution strategy through milk booths set up throughout cities in the Delhi region. They
have further garnered goodwill by giving preference to stores set up by ex-
servicemen and war veteran’s families. The company has a variety of milk varieties,
including:
Mother Dairy Ultra Milk, which contains extra cream added, Mother Dairy Full Cream Milk
without any of the fat removed, Mother Dairy Toned Milk with lower fat levels, Mother Dairy
Standardized Milk with a fixed fat % across milch animals, Mother Dairy Cow Milk which
contains milk only from cows, Mother Dairy 'Live lite' Milk fortified with Vitamins A and D,
Mother Dairy Super-T Milk made explicitly for tea and coffee drinkers8.Mother Dairy Dietz
Milk with shallow fat levels.

Gokul:

Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd. well known with its popular
brand ‘Gokul‘ is an Operation Flood cooperative dairy project established on 16th
March 1963. Since then achieved many land marks in Milk Procurement,
Extension, Animal Health, Breeding, Milk Processing, Product making and
Marketing. At present Gokul has modern 12 Lakh Liters/day capacity dairy plant ,
satelite dairy at udgaon , tal shirol and 4 owned chilling centers having 4.75 Lakh
liters/day milk handling capacity with modern Packing Unit at Navi Mumbai.

AMUL 34
Local Dudhwalas:
People in India still believe that milk from local dudhwalas is fresh and purer
than the one in polybags from the market. Thus, it gives local dudhwalas an
excellent opportunity to serve people in their range. A graph of milk from
different milk suppliers is given below for Mumbai city, which shows that
though Amul is a very big brand, local dudhwalas still have a fair share in the
market. This share increases when we consider small towns and villages.

Patanjali:

In a bid to strengthen its presence in the dairy segment, Baba Ramdev-led Patanjali
Ayurveda has launched the toned milk variant of its cow milk, besides cow milk
butter. It forayed into the dairy segment last September with cow milk and has since
then gradually expanded the dairy portfolio with the introduction of cow milk
paneer, curd, chaach and lassi. Baba Ramdev said the newly launched toned milk
variant would be available in Delhi-NCR, Rajasthan and parts of Haryana and
Maharashtra from Tuesday. This move by Patanjali comes at a time when leading
dairy players such as Amul and Mother Dairy have raised milk prices citing higher
procurement costs. Ramdev claimed that Patanjali’s toned milk variant, priced
at ₹40 per litre, is nearly ₹4 cheaper than the offerings of competitors such as Amul
and Mother Dairy

AMUL 35
CHAPTER -4 WORK DONE DURING PROJECT

6.1 MARKET VISITS AND RETAILER’S SURVEY:

Visiting unorganized retail stores:

During the very First week of my Internship program, I have done Market Survey of a
retail outlets in Chembur location of Mumbai. These include class A, class B, class C
retailers and Amul Parlour’s. Relevant information like the Volume of sale of Amul
products and brands of competitors product used was gathered for the benefit of the
company.

• Product knowledge

• Product samples

• Competitor’s strategy

Following report shows the survey being done on the Retailers:

AMUL 36
Findings from the Survey:

 During the Survey it was found that the market share of Amul was approximately
40%
 Amul Taaza is found to be the most preferred brand of Amul Milk.
 Generally, people buy Amul products because of Better quality and brand name.
 It has been found that Retailers are not getting enough margin in some Amul fresh
products as compare to the competitor brands.

6.2 BRAND AWARENESS OF AMUL PROBIOTIC PRODUCTS:

In order to aware the Retailers about the probiotic fresh products such as Amul Probiotic
Buttermilk, Probiotic Lassi and Fruit flavour Dahi. I went to various shops and stores in the
given area to introduce the new products and also in order to attract customers, I have shared
product posters with the retailers. As it has been considered that poster advertising is one of
the effective way to create awareness and to promote a product it is cost effective and highly
visible.

RETAIL OUTLETS:

During the internship programme, I went to different retail outlets and promoted Amul
products and distributed the posters and all the campaigning materials provided by the
company so that it will help in maximum reach. They always come up with unique
advertisements and catchy taglines which make them outstand when compared to any
other competitors. For retailers they have suggested that with the help of this customers
will get to know that the product is available in the store and at the same time they will
get to know about new products launched by the company.

AMUL 37
Posters posted and shared with Shopkeepers:

6.3 AMUL DISTRIBUTION AND SUPPLY CHAIN MANAGEMENT:

By getting knowledge of how the whole Amul distribution management works, helped
me in knowing how take orders and what are the channels through which the whole
process goes on. The marketing and distribution of milk processed and manufactured by
milk unions is done by GCMMF.

 Distributers supply it to the retailers and then the milk finally reaches the
customers.

AMUL 38
 Arranges transportation of milk & milk products from the Milk Unions to the
market.
 GCMMF takes the daily demand from the distributers and accordingly inform it to
the packing plant

A zero level of channel also called direct marketing channel consists of a manufacturer
selling directly to the final customers.
A one level channel contains one selling intermediary such as retailer to the final
customers.
A two-level channel two intermediaries are typically wholesaler and retailer.
A three-level channel are typically wholesaler, retailer and jobber in between.
GCMMF has an excellent distribution. It is its distribution channel, which has made
it so popular. GCMMF’s products like milk and milk products are perishable. It
becomes that much important for them to have a good distribution.

From above figure we can see that the distribution channel of GCMMF is simple and
transparent.

AMUL 39
6.4 Responsibilities undertaken during the internship:

 Visiting the the retail outlets to take orders and to place Amul new product in the
market.
 I have to put banners and distribute pamphlets through visiting newspaper distributors
in early morning.
 During these days I was assigned with the work to deliver the orders which was taken
one day priors from the retail outlets in Chembur.
 I was also supposed to change the damage products which was delivered by mistake to
the retail outlets.
 I have to give them a bill and collect the amount from them and at the end of the day I
have to hand over it to the Distributor of the Chembur.
 During these days I was assigned with another new task in the new area. Vaashi Naka
 In this period, I have to take order from the retail outlets of the area of the Vaashi Naka
with our respective PSM of that particular area.
 I have to forward these orders to the respective distributor of that particular area so that
it can delivered to very next day.

6.5 Work from Home during Covid19 pandemic:

Due to Covid Pandemic and announcement of lockdown in various areas of Mumbai.

We are working from home, so basically my work is to Call Retailers and Small
shopkeepers of Chembur and allotted locations from the Database maintained through
initial days from the Retailer Survey in the given Areas.

Questions Asked during the Calls with Retailers:

 Do you have any issues related the Distribution and distributor?

 What are the timings of you are opening your shop during the lockdown?
 What are the products are currently customers are asking for?
 Do you want to place any order at this point of time?
 For any issue or query related to Amul products you can contact us

AMUL 40
Following are results and feedback I got from Cold Calling:

 Taking feedbacks from the Retailers in terms of Supply and distribution of the
products.
 Getting updates of the Current market situation and how does it affected the
Demand of Amul Milk and Fresh products.
 It has been found that the retailers are more focused on sale of Milk as compared
to fresh products like – Dahi, buttermilk and Lassi. Their main focus is to make
sure that the stock of Milk especially Amul Taaza should be maintained as to get
theproducts sold within a Day and mostly customers are during the lockdown and
limited number of opening hours of the shops are only demanding Milk.
 Most of the shopkeepers are not opening their shops during this lockdown
situation and due to limitation in opening hours, they are not getting high amount
of sales.
 They are mostly are satisfied with the Distribution of the products, even in the
limitation in the opening hours of market. They are getting delivery of Milk in the
morning on time.

Details of Retailers for Cold calling:

AMUL 41
CHAPTER -5 PRIMARY RESEARCH

Definition of Research:

Research is defined as careful consideration of study regarding a particular concern

or problem using scientific methods. According to the American sociologist Earl
Robert Babbie, “research is a systematic inquiry to describe, explain, predict, and
control the observed phenomenon. It involves inductive and deductive methods.

Research Methodology:
The method used for the collection of data in this report is primary. I have, with the
help of the service of Google forms, created a questionnaire which involves 15
questions. The goal of getting direct responses of people was possible since I have
drafted the questions and got responses of people representing themselves. I have
applied a random sampling method of data collection here as it follows an unbiased
representation of Study on Marketing of Amul. The sample size of this survey is 50.

Method of Data Collection:

For this research, I have used Google forms to generate this survey and collect
responses to further draw inferences about the topic.

Method:
Direct questionnaire interview Sample size is the act of choosing the number of
observations to include in a statistical sample. The sample size is an important
feature of any empirical study in which the goal is to make inferences about a
population from a sample. The sample size for this research was of 50-60
respondents.

Type of Data
Primary data is used in this research work. Data obtained from first hand sources by
a research person using methods such as surveys, interviews and experiments are
primary data. It is taken directly from primary sources with the research project in
mind.

AMUL 42
7.1 QUESTIONNAIRE SURVEY:

A survey was conducted to analyze the customer buying behavior of Amul fresh
product category and the impact of COVID 19 PANDEMIC on the distribution of
Amul products. In this survey, the demography of Salaiya region in Bhopal is
determined.

Interpretation:
The “Age” dimension is considered to be the most important aspect to demonstrate
the demographic situation of a particular place. In this case the demography of
Bhopal region is determined. From the above figure we can determine the buying
behavior of the customer belonging to the certain “Age” category.

The population pool of this survey is ~50 people (received responses). Among
which adults of 20-59 years of age attribute the highest percentage of the survey
population which is ~ 76% followed by kids of below 12 years (~12%) and old age
group of above 59 years of age (~10%). The least amount of responses (~2%)
received from teen age group between 13 to 19 years of age.

AMUL 43
Fig 1:

Interpretation:

 Amul is significantly a popular brand. ~92.6% of survey population are satisfied with
Amul products whereas dissatisfaction is evident among ~7.4% of the survey
population pool.
 This signifies Amul has 7.4% opportunity of improvement and 92.6% opportunity for
customer engagement.

Fig 2:

AMUL 44
Interpretation:

 This analysis helps understand the whole Amul portfolio demand and focus areas.
 Amul dahi is considered to be the popular and first choice of the customer.
 Followed by Amul fresh paneer and buttermilk. Amul icecream is considered to be
the least popular product among customers in the Salaiya region of Bhopal.

Fig 3:

Interpretation:

 The major driving factor for the popularity of Amul products is the price.
 94% customers consider Amul products worth the price.

Fig 4:

AMUL 45
Interpretation:

 52% of the population pool has reported ‘Out of stock’ as the driving factor for not
able to purchase Amul products.
 Apparently, the shortage of supply is the reason for ~7.4% customer dissatisfaction
with Amul products as shown in fig 1.
 This signifies an opportunity area to improve the customer satisfaction by managing
the supply operations with distributors.

Fig 5:

Interpretation:

 Consistency in buying Amul fresh products is an important factor to understand the

accurate demand and supply of the whole product portfolio.
 A significant chunk of the population pool (56%) uses Amul fresh products daily.

AMUL 46
Fig 6:

Interpretation:
 This analysis helps understand the place of sale to improve the effectiveness of
distribution system of Amul.
 Retail outlets consider to be the major distributor of Amul fresh products in the
Salaiya region of Bhopal followed by Convenience stores and super markets.

Fig 7:

AMUL 47
Interpretation:
 This analysis determines the availability and easy accessibility of Amul fresh
products.
 74% population has reported easy accessibility to Amul fresh products whereas 26%
of the population pool have report drawbacks on the availability.
 Given that Amul Dahi (all types) and Amul Mastibuttermilk are one of the popular
products (as shown in fig 2), this is an opportunity area to improve the supply and
demand chain.

Fig 8:

Interpretation:

 This analysis is to understand the affinity of customers towards Amul Masti Dahi
given Amul dahi is one of the popular products among customers.
 20% of the population pool have rated it as the excellent product in taste (highest
rating 5).

AMUL 48
Fig:9

Interpretation:

 This analysis is to understand the affinity of customers towards Amul Flaouvered

lassi.
 36% of the population pool have rated it as the excellent product in taste (highest
rating 5).

Fig 10:

Interpretation:

 This analysis is to understand the affinity of customers towards Amul Masti

buttermilk.

AMUL 49
  40% of the population pool have rated it as the excellent product in taste (highest
rating 5)

Fig 11:

Interpretation:

 It is key to understand the affinity of customers towards Amul products in order to

conduct marketing campaigns and manage supply-demand operations accurately.
 Mango lassi is considered to be one of the most popular flavoured lassis, rated by
66% of the population pool.

Fig 12:

Interpretation:

AMUL 50
  It is important to understand the factors that lead to customer dissatisfaction in order
to improve customer experience.
 40% of the population pool have rated ‘taste issue’ as one of the major factors that
affect their buying preferences.

Fig 13:

Interpretation:

 The perks and offers play an important role in marketing strategies of acquiring new
customers and retaining existing customers.
 68% of the population pool have reported ‘no offers’ on Amul fresh products

AMUL 51
Fig 14:

Interpretation:

 This analysis is to understand the time of the day when customers tend to buy Amul
products in order to manage the supply demand operations.
 According to 64% of the population pool, morning is considered to be the time
preference to buy Amul dairy products.
 Given that morning time has the highest foot traffic in the Salaiya region of Bhopal,
increasing supply in morning time would help maintain the supply demand
operations.

Fig 15:

Interpretation:

AMUL 52
  This analysis is to understand the tendency of customers to switch to other brands.
54% of the population pool are considered to be loyal customers of Amul.
 An effective customer retention marketing strategy would help retain this 54%
population pool.

Fig 16:

Interpretation:

 It is important to know about the competitors of Amul as there are many local players
2in the market.
 Majority of the population pool are considered to be the loyal customers of Amul.
 However, Sanchi and Mother Dairy are one of the competitors of Amul which
customers can switch to.

AMUL 53
Fig 17:

Interpretation:

 Given Covid lockdown, it is interesting to see that lockdown has no major impact on
the distribution of milk as per 72% of the population pool.
 Distribution is still effective of Milk and Fresh products.

Fig 18:

Interpretation:

 This is determine the kinds of problem faced during the lockdown.

AMUL 54
7.2 FINDINGS FROM THE PROJECT

 People are more concerned about availability on time with convenience that
makes them to buy any brands, whatever the retailer offer they take it.
 Vertical conflict: more than one retailer keeping the same Amul products lead to
vertical conflict.
 It has been found that Retailers and shopkeepers maintain better coordination
with each other, But sometimes due to large market area delivery of products
may get late, which sometimes leads to retailers losing customers.
 Margin requirements as retailers prefers to push competitor’s product from
which he is getting better margin.
 Duplicity of the product and also taste and preference of the people play an
important role.

 Product packaging and damage carat, due to faulty packaging the milk got leaked
from the pouch and loss would be wear by either retailer or distributor.
 Questionnaire or survey was the best method as it gave clear measurable picture
about the buying behavior
 Retailers act as a marketing agent. According to observation method it was found
that retailers could influence the buying behavior of the consumer
 Major competitors of Amul were Prabhat, Gokul,Mother dairy, Gowardhan and
also the loose milk sellers. There are more than which is actually making it tough
for Amul to settle down in those area and possessing a huge threat in the market.
 Frequent non availability of products especially milk due to flaws and delay in
operations causes loss of time, money as well as customer.

AMUL 55
7.3 FINDING FROM THE PRIMARY RESEARCH WORK:

 Above research is done on the sample of 50 people.

 The age group of people who have responded the most is 20- 59 years. As these
people are usually visit market almost every day and buy dairy products on a regular
basis. They are the ones who know what to buy and what is best in terms of price and
quality.
 Majority of the population pool are considered to be the loyal customers of Amul.
However, Sanchi and Mother Dairy are one of the competitors of Amul which
customers can switch to.
 Amul dahi is considered to be the popular and first choice of the customer. Followed
by Amul fresh paneer and Masti buttermilk. Amul icecream is considered to be the
least popular product among customers.
 Another interesting analysis was that Fresh Product product category which has the
presence of Lassi and Buttermilk. People rated both on a higher side in terms of
quality and taste, which is almost 36% for Lassi (both mango and rose flavour) and
40% for Masti Buttermilk, which is considered to be the satisfactory as these are the
newly launched product category from Amul.
 It has been proved that the perks and offers play an important role in marketing
strategies of acquiring new customers and retaining existing customers.
 68% of the population pool have reported ‘no offers’ on Amul fresh products. There
should be some amount of offerings, which needs to be implemented, so that
customer more satisfied and suggest Amul products to others. This will increase
potential buyers of Amul products.
 Also, keeping an eye on the current situation of COVID 19 Pandemic, It has been
analysed by the survey that the distribution and supply of Amul products including
milk, fresh products etc has not been effected as most of the people are getting
products at the store, however due to high demand sometimes, There is a shortage of
stock which is almost negligible.

AMUL 56
CHAPTER -6 RECOMMENDATIONS

 Company should focus more in promoting the market. Marketing techniques

should be implemented to increase brand awareness and visibility of the
product.
 Profits from this particular segment (fresh products) can only be derived when
bulk orders are taken. Hence company should focus on increasing its supply and
distribution segment through channel distribution.
 Provide reasonable margin to retailers as compared to competitors. It motivates
retailers to promote Amul products otherwise retailers prefer to push
competitor’s product from which he is getting better margin.
 More focused distribution management and timely supply with regular
conversations with retailers and handling their grievances.
 Amul is already blamed for poor replacement policy; it has to give certain kind of
replacement policy to make its product more acceptable to the parlors and outlets.
 More AMUL KENDRAS are required to satisfy the demand on time.
 Incentives & Schemes should be given to the retailers and some scrutiny should
be follow to check the scheme get being communicated properly by distributors
or sales.
 The priority should be given to Amul parlors and outlets as compared to other
retailers who also keep products of Amul. Many a times it happens that outlets
are not having the product but other retailers are having the product.

AMUL 57
CHAPTER -7 LEARNINGS AND CHALLENGES FACED

 To learn and grasp all the knowledge required to work in a FMCG company
was my motive when I joined the internship programmed.
 The very first day a Team from Amul gave us a presentation, where I got to
learned many aspects of Dairy industry
 To apply all the theoretical concepts in practical was a completely different
experience.
 Working in a corperate culture was complexly different as I learnt that lot of
efforts goes in managing such a huge product portfolio.
 I have learnt the way of behavior one needs to follow in the corporate Sector as
there are certain ways in which you have to approach the customers and
retailers and you have to be fresh, positive and polite all the time.
 I also learned how Amul manage its supplies and satisfy all the customers on
time, how their distribution management works.
 The Internship helped me in understanding Time management and Discipline
in the work.
 I have also improved my communication skills. Now, I can observe that there
is a fluency in my speaking and interacting with people.

CHALLENGES FACED
 Many people are in a hurry and therefore unwilling responses sometimes leads to unfair
results.
 Most of the customer are not ready to interact with the field workers.
 It was a challenge to sell new product in the market where competitor was leading in
the market with trust.
 Many a times it was quite difficult to make coordination between retailers and
distributor due to large Market Areas. Sometime it is difficult for Distributors to locate
shops and retail outlets.

AMUL 58
CHAPTER -8 CONCLUSION

 Amul being one of the most famous brands in the FMCG industry is present
worldwide. The products are used by consumers at an increasing rate due to
never compromise quality on the quality Market players and top brands like
mother dairy and others are entering into dairy product categories. So, in the
coming years Amul is going to face a stiff competition from these players apart
from the existing local brands like Gowardhan, gokul and Prabahat
 A market like Mumbai where mostly people belongs to service class and they
want convenience more than anything so better and fast distribution
management is required.
 Also I had to work from home during Covid19 pandemic where I used to
contact retailers through phone calls and used to get their feedbacks and issues
regarding Amul products and Distribution. Also doing questionnaire survey
was a whole new experience for me and to do analysis of it.
 The Distribution of products are proved to be a faster process, earlier I was just
aware about the theoretical part of that, But experiencing it practically on the
field was the great experience, which describes the importance of Time
management in the Industry.

AMUL 59
CHAPTER -9 REFERENCES

WEBSITES:
About Amul Products, Amul Business model:
WWW.AMUL.COM/
https://en.wikipedia.org/wiki/Amul

Amul Sales Turnover:

https://www.statista.com/statistics/1188743/india-sales-turnover-of-
amul/#:~:text=In%20the%20financial%20year%202020,increasing%20growt
h%20rate%20since%202011.

https://www.marketing91.com/marketing-strategy-amul/

PESTLE Analysis:

PESTEL/PEST of Dairy Industry | Free PESTEL Analysis

AMUL 60
CHAPTER 10- ANNEXURE

DEMOGRAPHICS

In which age group do you fall?

1. 0-16

2. 16-20

3. 21-30

4. Above 30 years.

Buying Habits

Which Amul product you use the most on daily basis?

 Probiotic Buttermilk
 Amul Fresh Paneer
 Amul Dahi ( all types)
 Fruit Dahi ( Mango and strawberry)
 All of these

How often do you use Amul fresh products?

o Daily
o Weekly
o Monthly

What time do you prefer to buy dairy products in a day?

o Morning

AMUL 61
 o Afternoon
o Evening

Are you willing to buy other brands?

o Yes

o No

If yes then, which brand would you use?

o No other Brand
o OMFED
o Patanajali
o Nestle
o Mother Dairy

From where do you prefer buying Amul fresh products?

o Super Market
o Online Purchases
o Retail outlet
o Convenience Store

Awareness

Have you tried Amul masti Dahi? If yes, how much would you rate the taste of the
product?

o Low (1)
o High (5)

Have you tasted Amul Lassi (Rose and Mango Flavour)? If yes, how much would you
rate the taste of it?

o Low (1)
o High (5)

AMUL 62
Have you tasted Amul Masti buttermilk? If yes, how much would you rate the taste of
it?

o Low (1)
o High (5)

Feedback and Usage:

Do you get any offers/ off on Amul fresh products from the Retailers?

o Yes
o No

Are you willing to buy other brands?

o No
o Yes

If Yes, which brand would you use. Please specify the reason

Which Flavoured Lassi you prefer and recommend to others? *

o Rose
o Mango
What type of impact of lockdown is there on the distribution of milk in your area?

o Not able to get the milk in the lockdown

o Not able to get the milk for few days’
o I got milk little late then usual
o Availability of milk get decreased
o Availability of Milk gets increased
o Availability of old stock

AMUL 63
 o Proper supply

Do you see any impact of COVID 19 on the Distribution of Milk in your Area?

o Yes No

Have you encountered a situation where you couldn’t buy amul products due to shortage
of supply at stores?

o Yes
o No

In your perception are amul products worth their price?

o Yes
o No

AMUL 64