Market Analysis and

Sales Development of
Amul
Done by
M. Prabhakaran
13BCO024
Under the guidance of
Mrs. Aardhra Vasudevan,. M.Com(CA)
Assistant Professor
Department of Commerce
 Introduction

The World Dairy Situation

◊ Total milk production was estimated at around 802 million tonnes, a

significant increase of +3.3% compared to 2013.
◊ In 2014, global per capita dairy consumption was estimated at 110.7 kg and is
expected to reach 13.7% by 2023.
◊ The strongest growth would be in Asia, especially India. India has the highest
livestock population in the world with 50% of buffaloes and 20% of world’s
cattle population.
◊ Open Government Data (India) expects the production to be 144.2078 by the
end of 2020.
Cooperative Unions

◊ The system succeeded mainly because it provides an assured market at

remunerative prices for producers' milk besides acting as a channel to market
the production enhancement package.
◊ It also enables the consumer an access to high quality milk and milk products.
◊ Dairy cooperatives account for the major share of processed liquid milk
marketed in the country. Milk is processed and marketed by 170 milk
producer’s cooperative unions, which federate into 15 state co-operative milk
marketing federations.
◊ NDDB supports the development of dairy co-operatives by providing them
financial assistance and technical expertise, ensuring a better future for
India's farmers.
◊ Over the years, brands created by cooperatives have become synonymous
with quality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka
(Punjab), Saras (Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul
(Kolhapur) are among those that have earned customer confidence.
Type : Cooperative
Industry : Dairy/FMCG
Founded : 1946
Founder : Dr. Verghese Kurian
Headquarters : Anand, Gujarat, India
Key People : Jethabhai Patel
Revenue : US$3.4 billion (2014- 15)
Number of employees : 750 of Marketing Arm & 3.6 million milk
producer members
Slogan : The Taste of India
Website : www.amul.com
Amul’s History

 The story of AMUL inspired “Operation Flood” and heralded the “White
Revolution” in India.
 It began with two village cooperatives and 250 liters of milk per day.
 In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK
PRODUCERS’ UNION.
 In the year 1955 the union was established under brand name “AMUL”
 Dr. Rajendra Prasad, the president of India laid the foundation on November
15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared
it open at Amul dairy on November 20, 1955.
Statement
of
the
Problem
Objectives of the Study:

 To find size of retail network of Amul products in Coimbatore city.

 To know the consumer perception regarding Amul products.
 The problems faced by retailers in storing and selling of the products.
 To collect the information about the competitors in the city.
Scope of the Study:

 It gives information about the size of the retail network in the city.
 It gives information about the services given by distributor to their retailer.
 It gives information about the competitors’ products.
 It will serve consumer in better manner.
 It provides suggestions to the company to improve their products sales.
 It gives information about the sales promotion activities to improve the sales
of its product.
Limitation of the Study:

 The result and finding are confined to a limited area.

 The sample size of the taken was small, therefore it can be said that the
chosen sample is not the representative of the whole population.
 Respondents may not have been true in answering various questions and may
be biased to certain other questions.
 The sample size of Retailers was very small and therefore response from them
does not reflect the exact view because they may to bias.
 Out of the whole research and analysis, only three major brands could be
highlighted.
Data Collection:

 PRIMARY DATA : 1. Questionnaire (through Google Forms)

2. Personal Interview of Retailers
 SECONDARY DATA : 1. Websites
2. Blogs
Data Processing:

The following application softwares were used to process the data obtained:

 Microsoft Office Word was used for text processing.

 Microsoft Office Excel was used for the collection of responses which was in
the form of questionnaire.

 IBM SPSS Statistics was used to process the data obtained from questionnaire.
Tools and Techniques used for Analysis

 Simple percentage analysis

 Chi-square test

 Correlation
Additional Findings:

 Because of low profit margin almost all retailers are not interested in Amul
products.

 Retailers were selling different brands. Because they were able to receive
more margin from non-popularized brand that they could not from well-
known brands.

 It is found that the pricing of Amul is lesser than of branded competitors.

 Many consumers are not aware about the products available in Amul.

 Amul ATM(Any Time Milk)

 Amul is well known for its innovative topical hoardings.

Suggestions:

 The company is not able to fulfill the demand of outlet in the peak season
when demand is very high. Hence it should consider on the supply of product
in the peak season.

 Provide reasonable Margin to retailers as compared to competitors, this

motivates them to promote company’s milk and milk products.

 Try to minimize bank deposits for APO, which help to retailer think to start.

 Also advertising on the television, Radio Mirchi and Sponsorship of the events,
Trade Fairs will be a better choice.

 The Research revealed that there is no awareness among the consumers

regarding the Amul milk in Coimbatore.
 The pamphlets should be printed in such a way that it not only advertise
about the products but also provides information about how to preserve the
milk in different conditions.

 In order to attract the ladies segment the pamphlets should have some
recipes on the other side of it.

 Special offers should be there for dealers, retailers and consumers at the time
of festivals.

 Company should improve its distribution channel and should increase the
number of distributors.

 More retails shops should be set up to cover a large base of customers.

 Company should use brand ambassador which attracts each Age segment.

 Incentives & schemes should be given to the retailers.

Conclusion:

 Amul must come up with new promotional activities such that people become
aware about its product variants.

 In comparison to Amul, the other players such as Hutson, Cavins, Britania,

Aavin and Aroma provide a better availability and give competition to the
hilt.

 People are mostly satisfied with the overall quality of Amul products, but for
the existence in the local market Amul must use aggressive selling
techniques.

 Quality is the dominating aspect which influences consumer to purchase Amul

product, but prompt availability of other Milk brands and aggressive
promotional activities by others influences the consumer towards them and
also leads to increase sales.