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Company Analysis Report 2018 - 20
Title of the Project: Comparative Study of Amul Milk
with other brands
Submitted by:
Name of Faculty Guide: Yogita Rawat Name of the Student: Kiran Sinha
Designation: Asst Professor Roll No.: PGDM-182011634
Program: PGDM(Marketing)
Batch :2018-2020
Institute for Technology and Management
Plot No. 25 / 26, Institutional Area,
Sector – 4, Kharghar, Navi Mumbai
2
CERTIFICATE FROM THE FACULTY GUIDE
This is to certify that the Project Work titled
________________________________________
________________________________________________ (title) is a bonafide work carried out
by Mr. / Ms. ________________________________________________ (name of the student)
Roll No. ______________________, a student of PGDM program 2018 – 2020 of the Institute
for Technology & Management, Kharghar, Navi Mumbai under my guidance and direction.
Signature of Guide : __________________________
Name of Guide : ____________________________________________________
Designation : __________________________
Date: _____________ Place:
________________
3
Contents
Chapter 1. ABSTRACT.................................................................................................................. 5
Chapter 2. ACKNOWLEDGEMENT .......................................................................................... 6
Chapter 3. CONTENT.................................................................................................................... 7
3.1 Introduction to the company” AMUL”............................................................................... 7
The BCG matrix for Amul is given below: ............................................................................. 13
SWOT ANALYSIS Matrix of Amul: ...................................................................................... 15
3.2 Literature Review: .............................................................................................................. 18
3.3 Research Methodology........................................................................................................ 35
3.3.1Research Design.......................................................................................................... 36
3.3.2Data Collection ........................................................................................................... 36
3.3.3 DATA ANALYSIS AND INTERPRETATION ..................................................... 37
3.4 RECOMMENDATIONS & CONCLUSION ................................................................... 48
3.4.1 Brief description of recommendation...................................................................... 48
3.4.2 Details of each recommendation, discussion of its technical suitability, Economic
justification and feasibility of implementation................................................................ 48
3.4.3 Suggested Scheme of Implementation, precautions and monitoring systems, if
any........................................................................................................................................ 49
3.4.4 Overall Benefits of the Project................................................................................. 50
3.4.5 Learning from the Project........................................................................................ 50
3.4.6 Limitations................................................................................................................. 50
3.4.7 Scope for future study............................................................................................... 51
Chapter 4. Conclusion .................................................................................................................. 52
Chapter 5 REFERENCES ........................................................................................................... 53
List of Figures
Figure 1Amul................................................................................................................................... 7
Figure 2 Meeting in Samarkha village.......................................................................................... 8
Figure 3 Milk Producers Union was Established in ANAND..................................................... 9
Figure 4 Dr Rajendra Prasad visited ANAND............................................................................. 9
Figure 5 AMUL Logo .................................................................................................................. 11
Figure 6 1st plant .......................................................................................................................... 11
Figure 7 2nd plant......................................................................................................................... 12
4
Figure 8 3rd plant ......................................................................................................................... 12
Figure 9 4th plant.......................................................................................................................... 13
Figure 10 Amul girl transforms herself into different personalities ........................................ 19
Figure 11 Mimic of Amul Poster ................................................................................................. 19
Figure 12 Slogan of Amul............................................................................................................ 20
List of Tables
Table 1 Product profile................................................................................................................. 13
Table 2 Product Range................................................................................................................ 29
Table 3 Question 1 response......................................................................................................... 37
Table 4 Question 2 response......................................................................................................... 38
Table 5 Question 3 response......................................................................................................... 40
Table 6 Question 4 response......................................................................................................... 41
Table 7 Question 5 response......................................................................................................... 42
Table 8 Question 6 response......................................................................................................... 43
Table 9 Question 7 response......................................................................................................... 44
Table 10 Question 8 response ...................................................................................................... 45
Table 11 Question 9 response ...................................................................................................... 46
Table 12 Question 10 response..................................................................................................... 47
5
Chapter 1. ABSTRACT
This paper describes success story of a cooperative institution (AMUL) which has touched the level
of excellence as top corporate players. Cooperative has farmers as members, and they used to sell
their milk collectively under cooperative framework to maximize profits and increase bargaining
power. Profitability of a cooperative is heavily depending upon maintaining balance between
farmer's ownership in cooperative and professional management. Objective of this paper is to
review the AMUL story, derive core practices responsible behind the success of Amul and find how
branding has played a role in AMUL's phenomenal growth. In AMUL's case Marketing strategy
and Branding have been the mantras of success as AMUL Brand is one of the super brands of Indian
market and it has established its contract with customers showcasing its higher quality standards,
justified and correct pricing strategy & product availability in every part of India. This paper is
based on secondary data collected through different websites, magazines and newspapers.
Importance of a strong brand has been focused and Amul branding strategy has been discussed with
brief description of market share of different Amul products. This paper has been divided in
Introduction, Evolution of Cooperative, Brand Building, Range of Products and Conclusion. It has
been emphasized that Cooperative always stands strong if democratic, participatory, and efficient
management have been developed to run it. At the end, it has been concluded that Amul stands
profitable at same time competitive due to three strong practices namely Branding, matching supply
and demand and professional management.
6
Chapter 2. ACKNOWLEDGEMENT
A successful completion of job is based upon the chain of factors combining to make an integral
outcome. The cooperation of the factors mixed with sincere effort can lead to best performance. My
project is also no exception to this. Therefore, I take this opportunity to express deep sense of
gratitude to all those who have contributed significantly by sharing their knowledge and experience
in the completion of this project work.
I express my sincere thanks to my Capstone guide Professor Yogita Rawat for her constant support
and guidance throughout the capstone project, for her timely response via e-mail & personal
meeting, which immensely helped in giving the project the initial direction it needed. I also would
like to thank our director, Dr Lakshmi Mohan, Professors and the Marketing department for giving
me a wonderful opportunity to work in corporate world.
Last but not the least, my wholehearted thanks go to all the consumers with whom we interacted
and all those people who indirectly or directly helped me with the project.
I have made an honest and dedicated attempt to make the research material as authentic as it could.
And I earnestly hope that it provides useful and workable information and knowledge to any person
reading it.
Signature:
Kiran Sinha
7
Chapter 3. CONTENT
3.1 Introduction to the company” AMUL”
Figure 1Amul
In the year 1946 the first milk union was established. This union was started with 250 liters of milk
per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA
DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the brand name
AMUL in 1955.
The brand name Amul means “AMULYA”. This word derived from the Sanskrit word “AMULYA”
which means “PRICELESS”. A quality control expert in Anand had suggested the brand name
“AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul
Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul
Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The
total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality
products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of
indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model
for dairy development (Generally known as “ANAND PATTERN”).
8
In the early 40’s, the main sources of earning for the farmers of Kaira district was farming and
selling of milk. That time there was high demand for milk in Bombay. The main supplier of the
milk was Polson dairy limited, which was a privately-owned company and held monopoly over the
supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and
illiterates’ farmers by the private traders. The traders used to beside the prices of milk and the
farmers were forced to accept it without uttering a single word.
However, when the exploitation became intolerable, the farmers were frustrated. They collectively
appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar
Patel advised the farmers to sell the milk on their own by establishing a co-operative union, Instead
of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to
gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th
January 1946. He advised the farmers to form a society for collection of the milk.
Figure 2 Meeting in Samarkha village
These village societies would collect the milk themselves and would decide the prices at which they
can sell the milk. The district union was also formed to collect the milk from such village co-
operative societies and to sell them. It was also resolved that the Government should be asked to
buy milk from the union.
However, the govt. did not seem to help farmers by any means. It gave the negative response by
turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira
district went on a milk strike. For 15 whole days not, a single drop of milk was sold to the traders.
As a result, the Bombay milk scheme was severely affected. The milk commissioner of Bombay
then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the
farmers demand.
Thus, their cooperative unions were forced at the village and district level to collect and sell milk
on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main
interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers
in forming the Co-operative unions at the village level. The Kaira district milk producer’s union
was thus established in ANAND and was registered formally on 14th December 1946. Since farmers
sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk
under the brand name AMUL.
9
Figure 3 Milk Producers Union was Established in ANAND
At the initial stage only 250 liters of milk was collected every day. But with the growing awareness
of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs
liters of milk every day. Since milk was a perishable commodity it becomes difficult to preserve
milk flora longer period.
Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk.
To overcome this problem the union thought out to develop the chilling unit at various junctions,
which would collect the milk and could chill it, to preserve it for a longer period. Thus, today Amul
has more than 150 chilling centers in various villages. Milk is collected from almost 1073 societies.
With the financial help from UNICEF, assistance from the govt. of New Zealand under the Colombo
plan, of Rs. 50 million for factory to manufacture milk powder and butter was planned. 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.
Figure 4 Dr Rajendra Prasad visited ANAND
10
ACHIEVEMENTS:
Amul: 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 doorsteps to rural farmers.
Amul created history in following areas:
a) First self-motivated and autonomous farmers‟ organization comprising of more than 5000000
marginal milk producers of Kaira District.
b) Created Dairy co-operatives at village level functioning with milk collection centers owned by
them.
c) Computerized milk collection system with electronic scale and computerized accounting system.
d) The first and only organization in world to get ISO 9000 standard for its farmer’s co-operatives.
e) First to produce milk from powder from surplus milk.
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
AWARDS:
Amul a co-operative society and its co-operation has led many different awards in its favor.
Magsaysay award for community leadership presented in manila, Philippines to Shri Tribhuvandas
Patel, Shri D N Khurody and Shri V. Kurien 1964: “Padmabhusan” award given to Shri T.K. Patel
1965: “Padmshri awarded was given to V. Kurien, general manager, by the president of India
1987: “Best Productivity” awarded by national productivity council for the year 1985-86 awarded
to Amul dairy.
1988: “Best Productivity” awarded for the second successive year 1986-87 by the president of India,
Mr. R. Venkatrao to kaira union.
1993: “ICA” Memenoto towards genuine and self-sustaining cooperative worldwide ICA regional
office for Asia and pacific, New Delhi, 1996.
1999: G.B. Birla award.
Moreover, the Amul union has achieved the prestigious ISO 9001-2000 and HACCP Certificate
and effects are got to obtain ISO 14000.
PEOPLE POWER: AMUL'S SECRET OF SUCCESS
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. What's
more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to
high quality milk and milk products. Contrary to the traditional system, when the profit of the
business was cornered by the middlemen, the system ensured that the profit goes to the participants
for their socio-economic upliftment and common good.
Looking back on the path traversed by Amul, the following features make it a pattern and model for
emulation elsewhere.
Amul has been able to:
11
Produce an appropriate blend of the policy makers farmers board of management and the
professionals: each group appreciating its routes and limitations.
Bring at the command of the rural milk producers the best of the technology and harness its fruit
for betterment.
Provide a support system to the milk producers without disturbing their agro-economic systems,
Plough back the profits, by prudent use of men, material and machines, in the rural sector for
the common good and betterment of the member producers and The Union looks after policy
formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield
of animals, the artificial insemination service, veterinary care, better feeds and the like - all through
the village societies. Basically, the union and cooperation of people brought Amul into
fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF
INDIA.
Figure 5 AMUL Logo
Plants:
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder,
flavored milk and buttermilk.
Figure 6 1st plant
12
Second plant is at MOGAR, which engaged in manufacturing chocolate, Nutramul, Amul Ganthia
and Amul lite.
Figure 7 2nd plant
Third plant is at Kanjari, which produces Cattel feed.
Figure 8 3rd plant
Fourth plant is at Khatraj, which engaged in producing cheese.
13
Figure 9 4th plant
Today, twelve dairies are producing different products under the brand name Amul. Today Amul
dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole
India.
PRODUCT PROFILE: -
Sl no. Name Type Solid Natural Fat
1 Tazaa Toned Milk 8.5% min
2 Slim & Trim Doubled Toned 9% min
3 Gold Full Cream 9% min
Table 1 Product profile
The BCG matrix for Amul is given below:
14
Stars:
Leader in the market, Consumes a lot of Cash and Generated lot of revenue. There are some products
which have high market share and have the potential to grow more in the future. The industry
dynamics are also supportive of the growth as the industry is in the phase of development as well.
These products have the potential of being positioned as cash cows owing to the growth prospects.
As far as star is concerned, ice creams manufactured by the company and ghee are the two key
products which have the potential to grow taking benefit from the growth opportunities presented
by the industry. The health-conscious consumers have been targeted by the ice cream providing
them with the option of ice creams that do not contain sugar. The ice cream with probiotics is
another indication of the way the sweet milk-based dessert has helped the company to achieve a
high market share. The brand of Amul ghee has also been a star for the company.
Cash Cows:
Generate a lot of cash for the company, When the market share of a product is high and it is being
sold in an industry that had developed to such an extent that no significant growth is expected in
future, then the product can be deemed as a Cash cow. Organizations use the cash cows to bring in
revenues, while taking the benefit of the low investment needed to sustain the profitability of those
products. The market share of these products is not likely to experience massive gains either, but
the current position makes them a high revenue generator. There are two main products of Amul
which can be placed in the category of cash cow, fresh milk and butter.
Dogs:
Low Growth and low market share. Dogs are those products that have low market share and at the
same time have limited likelihood of growing into a profitable business unit for an organization.
The low chances of success suggest that the management needs to be careful with the decision of
investing resources in such a product since it offers no significant benefit to the organization. These
products can be regarded as cash traps due to the low chances of becoming a significant source of
profitability for the company. Investment in these businesses is not likely to yield much profits,
15
therefore they are not seen as a useful source of earning. Amul has few products which have not
been able to generate the expected sales and revenues. One of the notable examples in this regard is
Amul chocolate, which has experienced a demand of 3500 tons of chocolate. This situation indicates
some development in the business position of the chocolate brand, but the competitors make it
difficult to increase the market share to a significant degree that could make this product become a
source of sustainable revenues. The modified strategy of managing the chocolate brand is expected
to bring an increase in the market share of the product in the coming years, which suggests that the
chocolate brand can become a star if profitability targets are achieved. Another product that is
underperforming for the company is Amul pizza.
Question Mark:
Business usually at start-up and can consume lot of cash. With proper focus they can became Star
or Cow. The products that have some likelihood of overcoming the challenges and grow the market
share in future have been termed as question marks in the BCG matrix. One of the reasons why this
category is labelled as question mark is that these products can either become a success in the form
of taking the position of a star or become a source of continued loss for the company. The industry
has growth potential, thus making it possible for the products to have room for growth if the
pertinent issues are effectively managed. However, ineffective management of these issues can
make it difficult to expand the market share of the product. There are some products being managed
by Amul that can be identified as a question mark as their potential as a source of profitability
remains uncertain. Amul lassi has been marketed with the aim to increase the market share and
compete with the other beverages available to the market.
SWOT ANALYSIS Matrix of Amul:
16
Strengths in the SWOT analysis of Amul
Very high market share in ice cream – Amul has the top market share in ice cream segment which
further helps it push other products into the market.
Excellent brand equity – Amul is a beloved brand over the years and the contribution of Amul girl
and her outdoor ads should specifically be mentioned here.
Excellent quality management – even though Amul has such a wide and large distribution network,
hardly any quality complaints come for Amul.
Strong distribution network – This is one company which is strong in urban as well as rural
distribution. You will find Amul present even in small towns and villages.
Good product portfolio – Amul had a deep product portfolio when compared to any Fmcg company.
It has many different varieties of milk-based food items like cheese, butter, milk, buttermilk, lassi
and many others. In ice creams too, Amul has a large variety of flavours
Strong Supply chain – Vendors love Amul and Amul is known for the white revolution in India.
Rural presence – Strong rural presence of Amul is its plus point. It is mentioned here separately
because this rural presence gives Amul a strong competitive advantage.
17
Weaknesses in the SWOT analysis of Amul
Cost of Operations – Amul’s operation is huge. And so is the cost. Plus, the sector is such that
maintaining margins becomes difficult day by day. Thus, to face international players,
Amul needs to maintain the operations in the same manner it is carrying out today. It is not a
weakness but rather a constant challenge for Amul. In fact, during summers, the brand faces severe
shortage of supply.
Chocolates – Amul’s expansion to chocolate has failed and hardly any product of Amul chocolates
is selling in the market. Amul needs further products to expand its product line and increase bottom-
line.
Opportunities in the SWOT analysis of Amul
Export – Amul can export its product to other countries thereby increasing its turnover and margins
exponentially.
Concentrate more on chocolate market – Amul has a no advertisement policy which creates a
problem for its foray into additional products. Amul should in fact have separate SBU’s and
concentrate more on increasing its product line through chocolates or other such products.
Threats in the SWOT analysis of Amul
Increasing competition in Ice cream segment – Many players, local and international, are entering
the ice cream market thereby taking away share of wallet from Amul. Kwality walls, Naturals,
London dairy, Havmor, Arun ice cream, Vadilal, Ramani, are some of the few brands who are
directly in competition with Amul.
PESTEL Analysis of Amul
Political
Reliance on state & district cooperative to provide milk producer with
• Facility and support services.
• Training programs
• Conflict resolution
Export of milk powder was banned in 2012.
Economical:
18
• India high GDP growth rate implies increase in per capita income of people and thus more
increase in demand for food product.
Expansion plan
• Cost of implementation of system.
• Is system adding any significant value to the company.
• Breakeven for the investment
Social:
• Lifestyle-Fast food culture caters more demand for ice creame, cheese, etc.
• Demographic-growing youth population, more health consciousness and huge children
population.
• Culture- Custom of moving tea, more accustomed to milk and milk products.
Technological:
• Innovation in cold chain technology
• Extending the reach of the network to more and more villages and towns
• Amul Dairy has adopted low carbon technology at the Amul chocolate plant at Mogar Anand
district.
Legal:
Organizations such as the FDA in the united states & their counterparts in other countries heavily
regulated food items. In India Dairy manufacturers will also have to comply with all laws related to
advertising & product labelling in their own country.
3.2 Literature Review:
Research Paper 1.
Title:” A Study on factors influencing consumer buying behavior towards dairy”.
Author: Radhika Mamidi.
Introduction:
According to Radhika Mamidi in Research Proposal they explain why & how Amul advertisement
makes a different image in consumer mind.
19
Amul advertisements1
, hereby Amul ads, are unique and are a treat for a common man as well as a
lin- guist. These Indian ads, appearing in billboard format, have been around for over 45 years.
These adver- tisements are for the product butter. Amul Company has many other products ranging
from milk to ice- creams, cheese to chocolates, and milk powder to beverages. By 2005, Amul
entered the global market2
as well. They also have many other commercials in different modes
including videos. But the one for butter is the most popular and most consistent one. (Mamidi,
2018)
Important elements in Amul ads
The picture-Amul girl, the iconic figure with round eyes and blue hair [Fig. 16], transforms herself
into different per- sonalities or accompanies different personalities. The personalities are easy to
recognize as they are often the one in the news in that week.
Figure 10 Amul girl transforms herself into different personalities
The main text
Not always the text is understood so easily. For example, the next ad (Fig.10) is based on the movie
poster of ‘Kaminey’ (Fig. 8), but the text is understood only after watching the movie or knowing
about the story in the movie. The main protagonists are twins and one of them has lisping problem
and pro- nounces /s/ as /f/. So FUPER MAFKA! means ‘super maska’ (‘maska’ is butter in Hindi.
Mimic of Kaminey poster
Kaminey poster
Figure 11 Mimic of Amul Poster
20
The slogan/byline
Slogans have an important role to play. By repetition, they become part of our memory and also
every- day language [25]. The slogan for Amul ads is ‘Utterly Butterly Delicious’. But it is not used
always as seen in the ads above. Sometimes a parody of it is used as seen in the ad about ‘Bunty aur
Babli’ (Fig. 2: Bun, tea aur Butterly), Facebook (Fig. 10: utterly twitterly delicious), other times it
is substituted alto- gether with a different slogan as seen in the ad about Bt Brinjals9
(Fig. 11 Fully
natural). It is used in such a way that it also refers to the product butter.
Figure 12 Slogan of Amul
The language used in the ads.
Research Paper 2
Title: A Study on consumer preferences towards ‘Amul Product ’in Madurai city.
Author: DR.S.P. Savitha
Introduction: Amul (Anand milk produced union limited) formed in 1946, is a dairy cooperative
movement in India. The brand name Amul sourced from the Sanskrit word Amoolya means
priceless. Amul product has different type such as Milk, Chocolate, Milk powder, Curd, Ice cream
etc.., Amul has strong network of over 3 million milk producers. Britannia industry and nestle Ltd.
are competitive product for Amul. Amul is a world’s largest manufacturer of pouched milk. India
largest food brand trusted Amul product for its quality and product available at affordable price.
Number of popular milk product like Ice cream, Butter and Curd prefer to use Amul rather than
other product. This research is pertaining to find out the present consumer satisfaction of Amul
product (Dr.S.P.Savitha, 2017).
Profile of the Respondents:
The respondents are Amul product user of different Age group, Education, Gender, Marital
status, Number of members, Monthly income level, Sales promotional activities.
Age Wise Classification of the Respondents: The respondents were classified based on their age.
Age wise classification of the sample respondents is given in the Table.
Age Wise Classification of the Respondents
Age No. of
Respondents
% of Respondents
21
20-30years 68 68
31-40years 20 20
Above41years 12 12
Total 100 100
It is inferred from the above table shows that,68% of the respondents are belong to the age of 20-
30years,20% of the respondents are belong to the age of 31-40years and 12% of the respondents
are above41years.
Gender Wise Classification of the Respondents: The respondents were classified based on their
gender. They were grouped under two categories. Gender wise classification of the sample
respondents is given in the Table.
Gender Wise Classification of the Respondents
Gender No of
Respondent
% of
Respondents
Male 39 39
Female 61 61
Total 100 100
From the above table shows that, 61%of the respondents are female and remaining 39% of the
respondents are male.
Type of Family: The respondents were classified based on their family members. They were
grouped under two categories family wise classification of the sample respondents is given in
the table
Type of Family
Type of
Family
No. of
Respondent
%of
Respondents
Joint Family 44 44
Nuclear
Family
56 56
Total 100 100
It is inferred from the above table, showing that 56% of the respondents live as in nuclear family
and 44% of the respondents live as in joint family.
Family Members: The respondents were classified based on their Number of members in a
family. They were grouped under four categories. Family member wise of the sample
respondents is given in the Table.
Family Members
Members in a
Family
No. of
Respondent
% of
Respondents
Below 2 6 6
3 to 5 50 50
Above 5 44 44
Total 100 100
It is inferred from the above table, showing that 50% of the respondents having members of 3 to
5, 44% of the respondents having members of above 5 and 6% of respondents having member
of below 2.
Income Wise Classification: The respondents were classified based on their Monthly Income.
They were grouped under three categories. Income wise classification of the sample respondents
is the given in the table.
Income Wise Classification
Monthly
Income
No. of
Respondent
% of
Respondents
22
Up to Rs 5000 11 11
Rs5001-
Rs10000
26 26
Above
Rs.10001
63 63
Total 100 100
It is observed from the Table, out of 100 respondents 63% of the respondents are earn monthly
income Above Rs.10001,26% of the respondents earn an monthly income Between Rs.5001 to
Rs.10000 and 11% of the respondents earn an monthly income below Rs.5000.
Aware of the Product: The respondents were classified based on their Awareness of the product.
Classification of the respondents based on awareness of the product is given in the Table.
Awareness of the Product
Awareness No. of Respondent % of Respondents
Yes 92 92
No 8 8
Total 100 100
It is observed from the above table, shows that, 92% of the respondents were aware of the product
and 8% of the respondents were not aware of the products.
Types of Amul Product: The respondents were classified based on their Amul product. They
were grouped under six categories Amul product wise classification of the sample respondents
is given in the table.
Types of Amul Product
Types of Amul
Product
No of
Respondents
% of
Respondents
Chocolate 20 20
Milk 29 29
Ice-cream 25 25
Butter 9 9
Milk Powder 9 9
Curd 8 8
Total 100 100
It is observed from the table, out of 100 respondents, 29% of respondents using milk, 25% of
respondents using ice-cream, 20% of respondents using chocolate, 9% of respondents using
Butter and milk powder and 8% of respondents using curd.
Duration of Usage: The respondents were classified based on their usage. Year wise classification
of the sample respondents is given in the table.
Duration of
Usage
No of Years No. of
Respondent
% of
Respondents
Below 1 year 52 52
More than 1
year
34 34
More than
5years
14 14
Total 100 100
It is observed from the above table, out of 100 respondents.52% of the respondents are using
Amul product below 1year,34% of the respondents are using Amul product more than 1 years
23
and 14% of the respondents are using Amul product more than 5 years.
Sources of Information: The respondents were classified based on their mode of sources; the
classification of the respondents is given in the table.
Sources of
Information
Sources of
Information
No of
Respondents
% of Respondents
Television 58 58
Newspaper 19 19
Broucher 12 12
Display 11 11
Total 100 100
It is inferred from the above table, showing that 58% of the respondents knowing information
through television,19% of the respondents knowing through newspaper 12% of the respondents
knowing through broucher and 11% of the respondents through display.
Place of Purchase: The respondents were classified based on their place of purchase. Place of
purchase wise classification of the respondents is given in the Table.
Place of
Purchase
Places No of
Respondents
% of
Respondents
Departmental
Store
48 48
Retail Shop 33 33
Petty Shop 12 12
Super Market 7 7
Total 100 100
It is observed that 48% of the respondents are buying Amul product from Departmental
store,33% of the respondents are buying Amul product from Retail shop,12% of the respondents
are buying Amul product from Petty shop and 7% of the respondents are buying Amul product
from Supermarket.
Duration of Purchase: The respondents were classified based on their purchase duration. They
were grouped under four categorized. The classification of the respondents is given in the table.
Duration of Purchase
Duration No. of Respondent % of Respondents
Daily 44 44
Weekly 25 25
Monthly 26 26
Quarterly 5 5
Total 100 100
It is inferred from the above table, showing that 44% of the respondents are purchasing Amul
product daily,26% of the respondents are purchasing Amul product on monthly basis,25% of the
respondents are purchasing Amul product weekly and 5% of the respondents are purchasing
quarterly.
Preference to Buy Amul Product: The respondents were classified based on their preference.
They were grouped under three categories. Classification of the respondents is given in the table.
Preference to Buy Amul Product
24
Preference of
Product
No. of
Respondent
% of
Respondents
Price Off 39 39
Free Sample 32 32
Discount 29 29
Total 100 100
It is inferred from the above table showing that 39% of the respondents are prefer Amul product
due to price off,32% of the respondents are prefer Amul product due to free sample and 29% of
the respondents are prefer Amul product due to discount.
Research Paper 3.
Title: A Study on AN “ADVERTISING METAMORPHOSIS‟: AMUL „BUTTER GIRL‟
Author: Dr Rashmi Mahajan
Introduction: Advertising is a form of communication used to persuade an audience (viewers,
readers or listeners) to take some action with respect to products, ideas, or services (Get on Social,
2018). Most commonly, the desired result is to drive consumer behavior with respect to a
commercial offering, although political and ideological advertising is also common (Kalotra A.,
2015).
AMUL BUTTER GIRL: HISTORY & THE ADVERTISING CAMPAIGN
Amul Butter Girl popularly called as “The Amul Moppet” (A small endearingly sweet child.) was
conceptualized to counter the competition of its rival, (Polson Butter Girl). Amul butter was
launched in 1945 but was facing a stiff competition from the Polson Butter Girl. ASP (Advertising,
Sales & Promotion) clinched Amul’s account in 1967 & the owner of the agency Mr. Sylvester
daChuna & his art director Mr. Eustace Fernandez conceptualized and gave life to the Amul
moppet. (Amul Girl, 2018) (Amul Moppet: Utterly Buttery Delicious Amul Girl, 2012)
The Polson Butter Girl Amul Butter Girl (Amul Moppet)
Figure 13 Amul Moppet
ASP decided that they needed a girl who would worm her way into a housewife's heart. “And who
better than a little girl?" Thus, the birth of the „Amul Moppet‟ said Sylvester da Cunha founder of
ASP. Talents like Bharat Dabholkar were hired, who created the satire filled „tag lines‟ for 15 years.
(Mahajan, 2018)
25
Currently, Mr. Manish Jhaveri is the creative inspirations behind these ads, while, Mr. Jayant Rane
is the artist. (Know About the People Behind Amul’s Creative Trending Ads,2018.
REASONS FOR THE SUCCESS OF THE ADS Amul Butter advertisements have a topical
flavor. The topical ads receive extra coverage that they would not ordinarily receive, as it is
something that the people are already talking about. (Amul Topical Story,2011) (Indian Dairy uses
satire to stick it to politicians in Butter Ads in 2012)
Figure 14 Amul Ads
The use of innovative „Hinglish‟ taglines which are very evocative and generate tongue–in- cheek
humor. (Full credit goes to Bharat Dabholkar who introduced such style). (Packing a punch, 2011).
“ADVERTISING METAMORPHOSIS”
The Butter Girl was primarily designed to counter the competition from “The Polson Butter Girl”.
But she became so popular that Amul decided to change their packaging to incorporate her. The
butter girl was such a rage that she was not only on the packaging of the butter, but she also started
endorsing Amul’s milk & ice creams.
The Butter Girl changed her role from being a „mascot‟ of just the butter and offered her services
to the other products under the Amul umbrella. She did not stop there. Her popularity was so much
that she started playing the role like R K Lakshman’s common man and „The Grandma‟ in the
Giles cartoons of the UK.
Research Paper 4.
Title: “A Study which describes success story of a cooperative institution (AMUL)”.
Author: Dr. Ritesh Dwivedi.
Introduction:
According to the Author the paper describes success story of a cooperative institution (AMUL)
which has touched the level of excellence as top corporate players. Cooperative has farmers as
members, and they used to sell their milk collectively under cooperative framework to maximize
profits and increase bargaining power. In AMUL’s case Marketing strategy and Branding have been
the mantras of success as AMUL Brand is one of the super brands of Indian market and it has
established its contract with customers showcasing its higher quality standards, justified and correct
pricing strategy & product availability in every part of India.
26
Brand building of Amul:
Advertising of AMUL has been excellent till today as they know the pulse of a common Indian as
well as modern youth. Certainly, it has helped that those responsible for keeping the AMUL name
in the public eye have used considerable imagination. (Dwivedi, 2010)
‘The taste of India’ campaign has proved to be a trend setter.
AMUL has constantly reviewed its marketing and branding strategy that it’s contract with
consumers never dishonored. Quality is a vital ingredient of this brand and must always represent
the highest hygienic & bacteriological standards.
Amul range of Products
AMUL defending its turf has changed retail environment, strikes out on its own, with AMUL
Outlets or parlours to deliver consumers total brand experience. Launched in 2002, there are now
400 AMUL parlours across the country, which contributed 3% to the brand’s total turnover last
year. AMUL parlours are today present on campuses of Infosys, Wipro, IIM-A, IIT-B, Temples,
Metro rail and railway stations in Gujarat.
AMUL has introduced several diverse ranges of varied products like cooking butter, low fat Butter
etc. along its main product. Hence covering all the segments in which a competitor can enter, thus
creating strong barriers and in turn playing offence to defend its market position.
Research Paper 5.
Title:” Managing complex networks in emerging markets: The story of Amul”.
AUTHOR: Pankaj Chandra, Devanath Tirupati
Introduction:
The central message of the paper is that large fragmented markets need a long-term perspective on
profitability. It requires simultaneous development of customers and suppliers. The requirements of
this new business model are capabilities to develop a large network of suppliers, nurturing the
market for long-term growth, focusing on efficiency & quality, developing a commitment to small
stakeholders, strong implementation skills and breakthrough leadership. This article would also
provide insights into management of very large supply chains by adapting and integrating a variety
of strategies and techniques. (Pankaj Chandra, 2002) This includes building networks, developing
trust & values in the network, developing fair mechanisms for sharing benefits across the supply
chain, coordination for operational effectiveness, innovation and new technology for gaining
competitiveness.
The AMUL network and its extension that cover the whole country now have the following
unique characteristics:
• Its combined market and social development in a highly competitive environment. It
recognized the inter-linkages between various environments that governed the lives of
marginal milk farmers and the unmet needs of the consumers. It also changed the supply
chain paradigm in order to reduce the cost to the consumer while increasing the return to the
supplier.
27
• it realized that for the movement to succeed it had to benefit many people – both suppliers
and consumers. While large scale had the danger of failure due poor control and management
and required more resources, it also had the advantage of creating a momentum that would
be necessary to bring more people into the fold and thereby help more suppliers and
consumers.
• it also realized that until the intermediaries understood the value of service to the marginal
farmers on one hand and the consumers on the other, the task of carrying a large population
of potential suppliers along with them would not be possible. More importantly, the goal
could only be achieved in the long run and this required developing values in people and
processes that were robust, replicable and transparent.
• it also realized that the cooperative would not be independent and viable in the face of
competition if it was not financially sound. This implied that the movement had to develop
distinct capabilities that would deliver competitive advantage to its operations. This would
include long term cost containment, world class deployment of technological resources and
R&D, and better leveraging of scarce resources.
The Business Model
The objective of the network was to deliver profitable and equitable returns to many farmers for a
long period of time. The business model had to include both the costs and benefits of services that
would be needed to deliver milk with high productivity as well as to assist farmers in improving
their social environment.
The cooperative had decided as part of its value:
• to charge for each service provided to the supplier
• to purchase all milk that member farmers produced
• to sell liquid milk at affordable prices to serve many consumers
• to develop and deliver services that will improve lives of people in the network
• to hire professional managers, to run the federation and unions, whose
values included upliftment of rural poor.
Research Paper 6.
Title: “A Study of Rural Dairy consumers in Gujarat State”.
Author: A. K. Makwana, M.D Gurjar.
Introduction:
The Indian Dairy cooperatives structure has a huge contribution in raising the milk production in
the country up to approximately 146 million tons in the year 2014-15 from a meagre milk production
17 million tons in the year 1951. The per capita availability of milk in the country has increased to
340 g /day (GCMMF Annual Report 2015-16). Further, milk is the largest agricultural crop in India
with market value exceeding Rs 4 lakh crore per annum and the milk group contributes the highest
to the total output of our agricultural sector.
28
The Product Range of GCMMF:
Product category Product Variants /
flavors
Bread spreads Amul Butter, Amul
Lite, Delicious
Table Margarine
Cheese Range
Amul Pasteurized
Processed Cheddar
Cheese, Amul
Processed Cheese
Spread, Amul
Pizza (Mozarella)
Cheese,
AmulEmmental
Cheese, Amul
Gouda Cheese,
AmulMalaiPaneer
(cottage cheese),
Utterly Delicious
Pizza
Fresh Milk Amul Gold Full
Cream Milk 6%
fat, Amul Shakti
Standardised Milk
4.5% Fat,
AmulTaaza Toned
Milk 3% fat, Amul
Slim & Trim,
Amul Cow Milk
UHT Milk Range Amul Gold 4.5%
fat Milk, Amul
Shakti 3% fat Milk,
AmulTaaza 1.5%
fat Milk, Amul Lite
Slim-n-Trim Milk,
Amul Fresh Cream
Milk Powders Amul Full Cream
Milk Powder,
Amulya Dairy
Whitener, Sagar
Skimmed Milk
29
Powder,
Amulspray Infant
Milk Food, Sagar
Tea and Coffee
Whitener
Milk Drink AmulKool
Flavored Milk,
AmulKool Cafe,
AmulKoolKoko,
AmulKoolMillkSh
aake, AmulKool
Chocolate Milk,
Nutramul Energy
Drink
Health Drink Stamina Instant
Energy Drink
Brown Beverage Nutramul Malted
Milk Food
Curd Products AmulMastiDahi
(fresh curd),
AmulMasti Spiced
Butter Milk, Amul
Lasse,
AmulFlaavyo
Yoghurt
Ghee Amul Pure Ghee, Sagar Pure Ghee
Sweetened Condensed
Milk
AmulMithaimate
Mathai Range (Ethnic
Sweets)
AmulShrikhand, AmulMithaeeGulabjamuns, AmulBasundi,
AvsarLadoos
Ice-cream Sundae Range, sugar free and probiotic
Chocolate &
Confectionery
Amul Milk Chocolate, Amul Fruit & Nut Chocolate, AmulChocozoo,
AmulBindass, AmulFundoo
Table 2 Product Range
Methodology
The study was be spread over the entire state and primary data was collected by way of a
Questionnaire. The study covered all 26 Districts of Gujarat state, 227 talukas and further, three
villages were selected from each taluka (A.K.Makwana, 2016). In total 681 villages from the
30
state were selected and data was collected from rural consumers.
Results and Findings
a) Profile of Selected Respondents
Sr. No Age (Year) N Percentage
1 < 20 1 0.4%
2 20 – 30 53 21%
3 31 – 40 77 31%
4 41 – 50 55 22%
5 51 - 60 50 20%
6 > 60 13 5%
Total 249 100%
Around 75% of the consumers (rural) were in the category of young to middle-aged.
a. Gender Wise Profile of Selected Respondents
Sr. No Gender N Percentage
1 Male 213 86%
2 Female 36 14%
Total 249 100%
Around 86 % of the consumers (rural) were in the Male category.
b. Family Size Wise profile of Selected Respondents
Sr. No. Family Member N Percentage
1 Adult 789 60%
2 Children 516 40%
Total 1305 100%
Out of 249 families, around 60% of the family members of consumers (rural) were in the Adult
category and remaining 40% in the Children category.
c. Monthly Income profile of Selected Respondents
Sr. No. Monthly Income N Percentage
1 < 4999 36 14%
2 5000 -10000 72 29%
3 10001 -15000 33 13%
4 15001 -20000 26 10%
5 20001 - 40000 62 25%
6 40.001-80,000 16 6%
7 >80.000 4 2%
Total 249 100%
Around 67% of the consumers (rural) had their monthly income below Rs. 20,000/-.
b)Purchase Behaviors of Selected Respondents
Sr.
No.
Milk (Lit.) N Percenta
ge
1 < 1 2 1%
2 1 77 31%
3 1.5 15 6%
31
4 2 105 42%
5 2.5 7 3%
6 2.51 -3.50 32 13%
7 >3.50 11 4%
Total 249 100%
The daily purchase of around 32 % of the selected consumers (rural) was in the range of ‘1 litre
or less’ and 80% were in the range of “2 litre or less”.
c) Type of Milk purchased by Selected Respondents
Sr. No. Type of Milk consumed N Percentage
1 Packed 68 27%
2 Loose 181 73%
Total 249 100%
Around 27% of the consumers (rural) bought packed milk and 73% consumed ‘loose milk’.
d)Packed Milk Customers (Reason for Buying) (N=68)
Points for each rank 3 2 1
Stateme
nt.
No
Stateme
nt
1st
Rank
2nd
Rank
3rd
Rank
Points
scored
To
p
3
1 Assured quality according to
standards.
17 7 12 77 1
2 Convenient packaging (easy to
carry)
9 14 7 62 3
3 Price 8 10 4 48
4 Easy availability 4 16 8 52
5 Higher shelf life 4 9 9 39
6 Assurance of no adulteration 14 6 16 70 2
7 It is pasteurized 8 3 10 40
8 Taste and odour. 4 3 2 20
9 Other 0 0 0 0
Total 68 68 68
The top three reasons for buying packed milk were - Assured quality according to standards,
Assurance of no adulteration, Convenient packaging (easy to carry).
e) Loose Milk Customers (Reason for Buying)
Points for each rank 3 2 1
Statement.
No
Stateme
nt
1st
Rank
2nd
Rank
3rd
Rank
Points
score
d
To
p
3
1 Home delivery 5 5 6 31
2 Own milk animal 29 29 24 169
3 Formation of cream on boiling 12 13 22 84
4 Perceived better quality 52 45 39 285 1
5 Purchase of milk on credit 30 29 25 173 3
6 Lower price 48 40 36 260 2
7 Long term and old
relationship/acquaintance with loose milk
suppliers.
5 20 29 84
8 Other 0
32
Total 181 181 18
1
The top three reasons for buying Loose milk were - Perceived better quality, Lower price and
Purchase of milk on credit.
f) Loose Milk Customers (Reason for Not Buying Packed Milk)
Points for each rank 3 2 1
Statemen
t.
No
Statement 1st
Rank
2nd
Rank
3rd
Rank
Points
scored
Top
3
1 Non-Availability of pouch milk in area 25 13 13 114
2 Irregular supply of pouch milk due to
closing of Centre.
2 1 1 9
3 Higher price 45 61 50 307 2
4
Perceived lower quality of pouch milk as
compared to loose milk (for e.g.
Formation of
cream).
57 52 58 333 1
5 No flexibility in payment (i.e. cash
purchases
only)
42 41 45 253 3
6 Absence of home delivery 5 10 12 47
7 Frequent out of stock of desired milk
pouch.
2 1 1 9
Total 181 181 181
The top three reasons for Not buying packed milk (by loose milk consumers) were - Perceived
lower quality of pouch milk as compared to lose milk (for e.g. Formation of cream), Higher price
and No flexibility in payment (i.e. cash purchases only).
g) Frequency of Purchasing Packed Milk
Sr.
No.
Purchasing
Time
N Percenta
ge
1 Morning 36 53%
2 Evening 24 35%
3 Both Time 8 12%
Total 68 100%
Around 12 % purchased packed milk at both times.
h)Frequency of Purchasing Loose Milk
Sr. No. Purchasing Time N Percentage
1 Morning 48 27%
2 Evening 39 22%
3 Both Time 94 52%
Total 181 100%
Around 52 % purchased loose milk at both times.
i) Type of Packed Milk (Variant wise)
33
Sr. No. Milk Variants N Percentage
1 Gold (6%) FAT 26 38%
2 Shakti (4.5%) FAT 28 41%
3 Tazaa (3%) FAT 14 21%
4 Amul Slim &Trim (1.5%) FAT 0 0%
5 Other 0 0%
Total 68 100%
The leading milk variant purchased by consumer (Rural) were Gold (38%) and Shakti (41%) and
Tazaa (21%).
j) Perception about Amul Milk and Milk Products
Sr. No. Perception N Percentage
1 Very good 26 38%
2 Good 34 50%
3 Medium 8 12%
4 Bad 0 0%
5 Very Bad 0 0%
Total 68 100%
Around 88% of the consumers (rural) indicated that their perception about quality of Amul Milk
and Milk Products was in
the range of “Good to Very Good”.
Conclusion
From the above analysis it can be concluded that the strengths of dairy consumers in rural areas
were Young and literate consumers and Favorable perception about AMUL products.
Research Paper 7.
Title: “A case study of Amul co-operative in India in relation to organizational efficiency”.
Author: Dr. Ruchira Prasad, Dr. Rupali Satsangi.
Introduction:
An organization is a social unit, or a group of people structured in such a way that they work for
achievement of specific goal. Structure can improve the working condition of an organization and
a poor structure can ruin all the possibilities of openness, dynamism and decision making.
(Dr.Ruchira Prasad, 2013)
In the present research paper, a relationship between the designs of an organization with its
operational efficiency indicators has been examined. It was found that these indicators play a very
important role in the success of the organization
Objective in research:
1) To study the significance of Amul co-operative in India.
2) To identify the relationship between organizational design and operational efficiency
34
of Amul co-operative in India.
3) To suggest an action plan for smooth functioning of Amul co-operative in India.
RESEARCH METHODOLOGY
To evaluate the success of Organizational Design the two types of data sources are considered.
Primary Source as well as Secondary Source. Primary data was collected through a structured closed
/ open-ended questionnaire and interviews with senior officials of AMUL, its employees and
customers.
Research Paper 8.
Title: “The systematic study of Amul marketing strategy”.
Author: V. H. BHOIR, JYOTI MOKASHI
Introduction:
Amul is the one of the respected and best brands in India. objective of this research is only for
accumulating the marketing strategies used by Amul.
Objectives of the Study:
The study would analyze the product positioning Strategies of AMUL.
The study aims to find out reasons behind running successful cooperativebusiness. Significance of
the Study
The study would helpful for the student to know the efficiency of the various business strategies.
(V.H.Bhoir, 2017)
Research Methodology:
This research paper is made by reviewing the secondary data from newspaper article and various
online journals.
Research Paper 9.
Title:” Study on Product awareness and brand image of Amul ice-creame in and around Siliguri subdivision
of west Bengal”.
Author: Shomnath Dutta
Introduction:
In this research paper consumer satisfaction towards Amul ice-creame is discussed. Ice-cream
notably being a seasonal product, with demand peaking during the summer months April to June
and leaning during November to January for a sharp decline in consumption and resultant dip in
sales and profits. The study was undertaken in and around Siliguri region of Northern West Bengal
with site visits for three summer months to measure the demand and satisfaction of ice-cream lovers.
35
(Dutta, 2015) In the questionnaire some attributes like customers’ requirement in terms of flavor,
colour, taste, variety and availability offered by company were identified as motivational factors for
increased sales & satisfaction to consumers. Since, in Siliguri region Amul ice-cream encounters a
stiff competition from HUL’s Kwality it was essential to know the feedback of customers to plan
effective marketing and sales strategies in future and improve the quality of service to achieve better
consumer satisfaction.
Objective of study:
To understand ice-cream market better at Siliguri & it’s surrounding.
To understand the marketing and promotion strategies adopted by Amul for its ice-creams.
To understand the perception of the customers regarding brand Amul and evaluating its image.
Research methodology:
Research approach-Survey Method conducted for four months (March –June’14) at Siliguri and its
adjoining areas and the respondents were general people and specially the Gen-Y youngsters
visiting multiplexes & the shopoholic customers visiting Malls or Big Retail outlets.
Data Collection Method: Use of questionnaires for retailers and customers.
Types of Data Collected:
Primary Data through questionnaires for consumer.
Secondary Data through Internet and company’s report.
Source of Data: 1. Observation, 2. Direct communication with the people, 3. Personal interviews,
4. Cold calling and 5. Tele calling
Data Collection Instrument:
Questionnaire: A structured questionnaire of 12 questions of mix type with open ended, closed
ended and multiple-choice questions, having of a 5-point Likert Scale ranging from ‘strongly
disagree’ to ‘strongly agree’ through ‘can’t say options.
Sampling Procedure: 1. Type: Descriptive 2. Type of Method: Random 3. Sample Unit: Young
generation, Consumer visited Retail shop and Multiplexes 4. Sample Size: 100 Respondents 5.
Sampling Method: Random Sampling Method.
Tool Used: Charts, Bar-Diagram, Tables, Percentage, t-distribution.
Area: Siliguri & Outskirts
Respondent profile: General People, Youngsters, Teenagers and Mall based Retailers.
3.3 Research Methodology
Research is a careful investigation or enquiry specifically through search for new facts in any field
of study. Research methodology is a way to systematically solve a research problem. It is a
36
procedure by which the researchers go about their work of describing, evaluating and predicting
phenomenon.
Thus, it aims to give “work plan” of research.
3.3.1Research Design
A research design is a logical and systematic plan prepared for directing a research study. It
constitutes the blueprint for the collection, measurement and analysis of data.
3.3.2Data Collection
The search for answers to research questions is called collection of data. Data are facts and other
relevant materials, past and present, serving as bases for study and analysis.
Sources of Data:
Primary sources
The primary data was collected through questionnaires. They were filled using the scheduled
method of data collection by the researcher.
Secondary sources
The secondary sources were used only for collecting information regarding the sample; they were
however not used for analysis
ANALYSIS TECHNIQUES
Quantitative analysis is performed using the data collected at each outlet to estimate the presence
of Amul milk. Tools Utilized
• Percentage Analysis
• Graph Chart
• Tables
SAMPLING
1. Sampling Technique:
Random sampling - A random sampling technique is that in which we select a group of
subjects for study from a longer group. Each individual is chosen entirely by chance and
each member of the population has an equal chance of being included in the sample
2. Sample Unit:
37
People who buy milk available in retail outlets, superstores, etc.
3. Sample Size:
52
4. Method:
Direct interview through questionnaire.
5. Sample area:
ITM Business School
6. Scale:
Ordinal scale and Likert scale.
3.3.3 DATA ANALYSIS AND INTERPRETATION
The collected data were not easily understandable, so I like to analyze the collected data in a
systematic manner and interpreted with simple method.
The analysis and interpretation of the data involves the analyzing of the collected data and
interpretation it with pictorial representation such as bar charts, pie charts and others.
1) Which milk do you consume?
a) Pouch milk
b) Loose milk
c) Both
Options No of Responded % of Responded
Pouch milk 28 53.8
Loose milk 5 9.6
Both 18 36.5
Table 3 Question 1 response
38
2) Are you satisfied with the milk you are consuming?
a) Yes
b) No
Response No of Responded % of Responded
Yes 44 84.6
No 8 15.4
Table 4 Question 2 response
39
40
3) What do you like?
a) Quality
b) Taste
c) Price
d) Availability
Factors No of Respondent % of Respondent
Quality 24 46.2
Taste 12 23.1
Price 4 7.7
Availability 12 23.1
Table 5 Question 3 response
4) Do you get milk pouch at………….?
a) Doorstep
b) From retailer
41
Responded No. of Responded % of Responded
Doorstep 23 44.2
Retailer 29 55.8
Table 6 Question 4 response
42
5) What is total consumption of milk in a day?
a) Pouch milk in 500ml……
b) Pouch milk in 1litre……
Responded No. of Responded % of Responded
Pouch milk in 500ml 30 57.7
Pouch milk in1 litre 22 42.3
Table 7 Question 5 response
6) What is your monthly expenditure in milk (in Rs.)?
a) 500-1000
b) 1000-1500
c) 1500 and above
43
Response No of Responded % of Consumer
500-1000 17 32.7
1000-1500 19 36.5
1500 and above 16 30.8
Table 8 Question 6 response
7) In pouch milk which brand do you prefer?
a) AMUL
b) MOTHER DAIRY
c) GOKUL
d) MAHANANDA
e) WARANA
f) OTHERS
44
Response No. of Responded % of Consumer
AMUL 36 69.2
MOTHER DAIRY 5 9.6
MAHANANDA 3 5.8
GOKUL 3 5.8
WARANA 2 3.8
OTHERS 3 5.8
Table 9 Question 7 response
8) Do you think the price of the product is high compared to competitor’s product?
45
a) Strongly agree
b) Strongly disagree
c) Agree
d) Neither
Response No. of Responded % of Consumers
Strongly agree 6 11.5
Strongly disagree 10 19.2
Agree 20 38.5
Neither 16 30.8
Table 10 Question 8 response
9) If you buy AMUL milk pouch which pack, you purchase?
a) AMUL Gold
b) AMUL Taaza
46
c) AMUL Slim & Trim
Response No. of Responded % of Consumer
AMUL Gold 18 34.6
AMUL Taaza 25 48.1
AMUL Slim & Trim 9 17.3
Table 11 Question 9 response
10) What is the frequency of Amul dairy you take from retailer?
a) Daily
b) Once a week
c) Twice a week
d) Thrice a week
e) Never
47
Response No. of Respondent % of Respondent
Daily 34 65.4
Once a week 7 13.5
Twice a week 4 7.7
Thrice a week 5 9.6
Never 2 3.8
Table 12 Question 10 response
48
• From all the responses I can easily say Amul milk is first preference as
69.2% are agree.
• From interpretation I can say that 500 ml pouch milk is prefer than 1 litre.
• Milk is mostly available at retail outlet not at doorstep.
• Amul is prefer by consumer due to Quality of Amul Milk as 46.2 % are
agree.
• In Amul brand Amul Tazaa is most preferred 48.1 % agree
• 65.4 % are daily consumer of the Amul milk are there.
3.4 RECOMMENDATIONS & CONCLUSION
3.4.1 Brief description of recommendation
I. Tie up with local suppliers and farmers to increase the production and local
procurement of milk
II. Set up own self-funded dairy in NCR and other states
III. Invest in high yielding cows/buffalos for existing farmers using a Micro finance
model
IV. Improve Logistics in Transportation by continuing integration with the Railway
System
V. Increase Distribution network through forward integration by Twin Model
approach
3.4.2 Details of each recommendation, discussion of its technical suitability,
Economic justification and feasibility of implementation.
I.
Reduce travel time and transportation cost- increasing lead time.
Reduce wastage due to souring of milk
No high investment capital involved
Assurance of supply
II.
Reduces travel time and transportation cost-
49
Reduce wastage due to souring of milk
High investment capital involved
III.
Increase milk yield per cow from 10-15 liters per day to 25 liters per day
Farmers will earn more
Micro finance enables the farmers to invest and upgrade their cattle
IV.
50% savings on transport costs
Lessen the price hikes by due to transportation cost
Prevent the risk of accidents on the road
Avoid delay in transportation due to traffic on roads
V.
Increase reach
Increases awareness to customer
Increase possibility of market share dominance
3.4.3 Suggested Scheme of Implementation, precautions and monitoring systems,
if any
• Research and development efforts must be increased for development of dairy
industry in India.
• Marginal farmers and landless laborers should be encouraged to practice
dairying by providing financial assistance. In fact, dairy should be developed as
a full-time occupation for them.
• The practice of dairy farming which is not very popular in India should be
encouraged. In rural areas, dairy as a business can be developed by creating
various facilities at farm level. The farm should be devoted for the management
of dairy activities.
• Dairy is practiced as a supplementary source of income by most of the farmers.
They should be encouraged to increase the scale of dairy operations.
• The subject of dairy science needs to be popularized. Commercialization of
dairy activities as part of the curriculum should be designed to encourage the
students to take up dairy as their profession.
• There is huge discrepancy in the performance of dairy co-operatives across
India. The lack of standard system and common guiding force has resulted into
50
this imbalanced co-operative development. Attention is required in the areas
which have remained behind to improve overall performance of Indian
cooperative dairy sector.
• To survive and grow in this competitive environment, professional management
should be practiced by co-operatives which essentially include delegating
authority, encouraging initiative and inviting suggestions by managers from
subordinates.
3.4.4 Overall Benefits of the Project
Most important benefit of this project I found it teaches me 7 important Marketing Rules which
Amul follows:
• Never underestimate the customer.
• Shatter the demand curve.
• Create a ladder of genuine benefits (technical, functional & emotional).
• Escale innovate, elevate quality, deliver a flowless experience.
• Extend the price range and positioning of the brand.
• Customize your value chain to deliver the benefits ladder.
• Use influence marketing seed your success through brand positioning.
3.4.5 Learning from the Project
• Marketing strategy for high brand equity.
• Technology for effectiveness- Technology that was embodied in products, process and
practices became an important factor in delivering effectiveness to the network of
cooperatives which Amul uses effectively.
• Good Operations & Supply chain Management.
• Coordination with Agency.
• Strong Distribution Network.
• Advertisement strategies.
3.4.6 Limitations
• The research will be conducted in a limited area.
• The internet information can be irrelevant.
• The respondents were limited so cannot be treated as a whole population.
51
• Due to language problem it is possible that the respondents are not be able to understand
the questionnaire and can cause misleading results.
• Most respondents did not have proper knowledge of various services provided by their
company, so they were unable to provided exact information.
• The time period for the study was not enough for such a vast topic.
• Many consumers don’t express their original perception and views because of biasness.
• Certain open-ended questions were not answered with justice.
3.4.7 Scope for future study
The study opens door to further inquiries into following factors:
• Personal characteristics: demography, lifestyle, personal traits
• Culture, values, sub-culture/cross-cultural factors
• Influence groups: family, opinion leaders, reference groups
• Situational variables: purchase occasion, market communication, shopping behavior,
price, sales influence, product position
Time frame required was not enough to survey a greater number of outlets.
Income of the people decides the purchasing power. The high income prefers to purchase
product with the quality, freshness, thickness etc. and vice-versa. More focus can be given on
low income segment and rural consumption levels to capture the market. In Media
Communications, campaign, premium packs, offers etc. help to raise loyalty.
It is believed that customers make purchase decision based on receipt of a small no. of
selectively chosen pieces of information. Thus, it will be very important to understand and how
to push them to evaluate service and offerings.
52
Chapter 4. Conclusion
Majority of the customer are satisfied with the Amul milk because of its good quality,
reputation, easy availabilities.
The factors considered by the consumer before purchasing milk are freshness, taste, thickness
and availability.
Finally, I conclude that, majority of the consumers are satisfied with the Amul milk for its good
quality, taste and availability. some customers ae not satisfied with Amul milk because of high
price, lack of dealer services, spoilage and low shelf life etc. therefore, slight modification in
the marketing programmed such as dealers and outlets, promotion programmers, product lines
etc., company can be as a monopoly and strong market leader
Amul has also to take care of its competitors into considerations and more importantly its
customers before making any move.
53
Chapter 5 REFERENCES
sanasecurities .com
https://www.marketing91.com/swot-analysis-amul/
https://rctom.hbs.org/submission/amul-the-taste-of-india
https://www.researchgate.net/publication/290959987_Branding_and_brand_ma
nagement_Case_of_Amul
http://www.academia.edu/3706812/PROJECT_ON_AMUL.
Ref: ibef.org
https://www.ijser.org/researchpaper/A-CASE-STUDY-OF-AMUL-
COOPERATIVE-IN-INDIA-IN-RELATION-TO-ORGANIZATIONAL-
DESIGN-AND-OPERATIONAL-EFFICIENCY.pdf
http://ijcrme.rdmodernresearch.com/wp-content/uploads/2017/02/150.pdf
http://www.iaeme.com/MasterAdmin/UploadFolder/JOM_05_04_022/JOM_05
_04_022.pdf
https://www.researchgate.net/publication/279923559_Amul_A_Cooperative_wi
th_a_Brand
https://web.iima.ac.in/assets/snippets/workingpaperpdf/2002-05-
06PankajChandra.pdf
http://www.ijmdrr.com/admin/downloads/0712201620.pdf
https://www.ijser.org/researchpaper/A-CASE-STUDY-OF-AMUL-
COOPERATIVE-IN-INDIA-IN-RELATION-TO-ORGANIZATIONAL-
DESIGN-AND-OPERATIONAL-EFFICIENCY.pdf
http://www.ijarcsms.com/docs/paper/volume3/issue5/V3I5-0003.pdf
https://www.researchgate.net/publication/324558638_Context_and_Humor_Un
derstanding_Amul_advertisements_of_India

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Final project on Amul Dairy

  • 1. 1 Company Analysis Report 2018 - 20 Title of the Project: Comparative Study of Amul Milk with other brands Submitted by: Name of Faculty Guide: Yogita Rawat Name of the Student: Kiran Sinha Designation: Asst Professor Roll No.: PGDM-182011634 Program: PGDM(Marketing) Batch :2018-2020 Institute for Technology and Management Plot No. 25 / 26, Institutional Area, Sector – 4, Kharghar, Navi Mumbai
  • 2. 2 CERTIFICATE FROM THE FACULTY GUIDE This is to certify that the Project Work titled ________________________________________ ________________________________________________ (title) is a bonafide work carried out by Mr. / Ms. ________________________________________________ (name of the student) Roll No. ______________________, a student of PGDM program 2018 – 2020 of the Institute for Technology & Management, Kharghar, Navi Mumbai under my guidance and direction. Signature of Guide : __________________________ Name of Guide : ____________________________________________________ Designation : __________________________ Date: _____________ Place: ________________
  • 3. 3 Contents Chapter 1. ABSTRACT.................................................................................................................. 5 Chapter 2. ACKNOWLEDGEMENT .......................................................................................... 6 Chapter 3. CONTENT.................................................................................................................... 7 3.1 Introduction to the company” AMUL”............................................................................... 7 The BCG matrix for Amul is given below: ............................................................................. 13 SWOT ANALYSIS Matrix of Amul: ...................................................................................... 15 3.2 Literature Review: .............................................................................................................. 18 3.3 Research Methodology........................................................................................................ 35 3.3.1Research Design.......................................................................................................... 36 3.3.2Data Collection ........................................................................................................... 36 3.3.3 DATA ANALYSIS AND INTERPRETATION ..................................................... 37 3.4 RECOMMENDATIONS & CONCLUSION ................................................................... 48 3.4.1 Brief description of recommendation...................................................................... 48 3.4.2 Details of each recommendation, discussion of its technical suitability, Economic justification and feasibility of implementation................................................................ 48 3.4.3 Suggested Scheme of Implementation, precautions and monitoring systems, if any........................................................................................................................................ 49 3.4.4 Overall Benefits of the Project................................................................................. 50 3.4.5 Learning from the Project........................................................................................ 50 3.4.6 Limitations................................................................................................................. 50 3.4.7 Scope for future study............................................................................................... 51 Chapter 4. Conclusion .................................................................................................................. 52 Chapter 5 REFERENCES ........................................................................................................... 53 List of Figures Figure 1Amul................................................................................................................................... 7 Figure 2 Meeting in Samarkha village.......................................................................................... 8 Figure 3 Milk Producers Union was Established in ANAND..................................................... 9 Figure 4 Dr Rajendra Prasad visited ANAND............................................................................. 9 Figure 5 AMUL Logo .................................................................................................................. 11 Figure 6 1st plant .......................................................................................................................... 11 Figure 7 2nd plant......................................................................................................................... 12
  • 4. 4 Figure 8 3rd plant ......................................................................................................................... 12 Figure 9 4th plant.......................................................................................................................... 13 Figure 10 Amul girl transforms herself into different personalities ........................................ 19 Figure 11 Mimic of Amul Poster ................................................................................................. 19 Figure 12 Slogan of Amul............................................................................................................ 20 List of Tables Table 1 Product profile................................................................................................................. 13 Table 2 Product Range................................................................................................................ 29 Table 3 Question 1 response......................................................................................................... 37 Table 4 Question 2 response......................................................................................................... 38 Table 5 Question 3 response......................................................................................................... 40 Table 6 Question 4 response......................................................................................................... 41 Table 7 Question 5 response......................................................................................................... 42 Table 8 Question 6 response......................................................................................................... 43 Table 9 Question 7 response......................................................................................................... 44 Table 10 Question 8 response ...................................................................................................... 45 Table 11 Question 9 response ...................................................................................................... 46 Table 12 Question 10 response..................................................................................................... 47
  • 5. 5 Chapter 1. ABSTRACT This paper describes success story of a cooperative institution (AMUL) which has touched the level of excellence as top corporate players. Cooperative has farmers as members, and they used to sell their milk collectively under cooperative framework to maximize profits and increase bargaining power. Profitability of a cooperative is heavily depending upon maintaining balance between farmer's ownership in cooperative and professional management. Objective of this paper is to review the AMUL story, derive core practices responsible behind the success of Amul and find how branding has played a role in AMUL's phenomenal growth. In AMUL's case Marketing strategy and Branding have been the mantras of success as AMUL Brand is one of the super brands of Indian market and it has established its contract with customers showcasing its higher quality standards, justified and correct pricing strategy & product availability in every part of India. This paper is based on secondary data collected through different websites, magazines and newspapers. Importance of a strong brand has been focused and Amul branding strategy has been discussed with brief description of market share of different Amul products. This paper has been divided in Introduction, Evolution of Cooperative, Brand Building, Range of Products and Conclusion. It has been emphasized that Cooperative always stands strong if democratic, participatory, and efficient management have been developed to run it. At the end, it has been concluded that Amul stands profitable at same time competitive due to three strong practices namely Branding, matching supply and demand and professional management.
  • 6. 6 Chapter 2. ACKNOWLEDGEMENT A successful completion of job is based upon the chain of factors combining to make an integral outcome. The cooperation of the factors mixed with sincere effort can lead to best performance. My project is also no exception to this. Therefore, I take this opportunity to express deep sense of gratitude to all those who have contributed significantly by sharing their knowledge and experience in the completion of this project work. I express my sincere thanks to my Capstone guide Professor Yogita Rawat for her constant support and guidance throughout the capstone project, for her timely response via e-mail & personal meeting, which immensely helped in giving the project the initial direction it needed. I also would like to thank our director, Dr Lakshmi Mohan, Professors and the Marketing department for giving me a wonderful opportunity to work in corporate world. Last but not the least, my wholehearted thanks go to all the consumers with whom we interacted and all those people who indirectly or directly helped me with the project. I have made an honest and dedicated attempt to make the research material as authentic as it could. And I earnestly hope that it provides useful and workable information and knowledge to any person reading it. Signature: Kiran Sinha
  • 7. 7 Chapter 3. CONTENT 3.1 Introduction to the company” AMUL” Figure 1Amul In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the brand name AMUL in 1955. The brand name Amul means “AMULYA”. This word derived from the Sanskrit word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for dairy development (Generally known as “ANAND PATTERN”).
  • 8. 8 In the early 40’s, the main sources of earning for the farmers of Kaira district was farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately-owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterates’ farmers by the private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word. However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk. Figure 2 Meeting in Samarkha village These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also formed to collect the milk from such village co- operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union. However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira district went on a milk strike. For 15 whole days not, a single drop of milk was sold to the traders. As a result, the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand. Thus, their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in forming the Co-operative unions at the village level. The Kaira district milk producer’s union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL.
  • 9. 9 Figure 3 Milk Producers Union was Established in ANAND At the initial stage only 250 liters of milk was collected every day. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs liters of milk every day. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, to preserve it for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1073 societies. With the financial help from UNICEF, assistance from the govt. of New Zealand under the Colombo plan, of Rs. 50 million for factory to manufacture milk powder and butter was planned. 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. Figure 4 Dr Rajendra Prasad visited ANAND
  • 10. 10 ACHIEVEMENTS: Amul: 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 doorsteps to rural farmers. Amul created history in following areas: a) First self-motivated and autonomous farmers‟ organization comprising of more than 5000000 marginal milk producers of Kaira District. b) Created Dairy co-operatives at village level functioning with milk collection centers owned by them. c) Computerized milk collection system with electronic scale and computerized accounting system. d) The first and only organization in world to get ISO 9000 standard for its farmer’s co-operatives. e) First to produce milk from powder from surplus milk. 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 AWARDS: Amul a co-operative society and its co-operation has led many different awards in its favor. Magsaysay award for community leadership presented in manila, Philippines to Shri Tribhuvandas Patel, Shri D N Khurody and Shri V. Kurien 1964: “Padmabhusan” award given to Shri T.K. Patel 1965: “Padmshri awarded was given to V. Kurien, general manager, by the president of India 1987: “Best Productivity” awarded by national productivity council for the year 1985-86 awarded to Amul dairy. 1988: “Best Productivity” awarded for the second successive year 1986-87 by the president of India, Mr. R. Venkatrao to kaira union. 1993: “ICA” Memenoto towards genuine and self-sustaining cooperative worldwide ICA regional office for Asia and pacific, New Delhi, 1996. 1999: G.B. Birla award. Moreover, the Amul union has achieved the prestigious ISO 9001-2000 and HACCP Certificate and effects are got to obtain ISO 14000. PEOPLE POWER: AMUL'S SECRET OF SUCCESS 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. What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good. Looking back on the path traversed by Amul, the following features make it a pattern and model for emulation elsewhere. Amul has been able to:
  • 11. 11 Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its routes and limitations. Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. Provide a support system to the milk producers without disturbing their agro-economic systems, Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers and The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like - all through the village societies. Basically, the union and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF INDIA. Figure 5 AMUL Logo Plants: First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavored milk and buttermilk. Figure 6 1st plant
  • 12. 12 Second plant is at MOGAR, which engaged in manufacturing chocolate, Nutramul, Amul Ganthia and Amul lite. Figure 7 2nd plant Third plant is at Kanjari, which produces Cattel feed. Figure 8 3rd plant Fourth plant is at Khatraj, which engaged in producing cheese.
  • 13. 13 Figure 9 4th plant Today, twelve dairies are producing different products under the brand name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole India. PRODUCT PROFILE: - Sl no. Name Type Solid Natural Fat 1 Tazaa Toned Milk 8.5% min 2 Slim & Trim Doubled Toned 9% min 3 Gold Full Cream 9% min Table 1 Product profile The BCG matrix for Amul is given below:
  • 14. 14 Stars: Leader in the market, Consumes a lot of Cash and Generated lot of revenue. There are some products which have high market share and have the potential to grow more in the future. The industry dynamics are also supportive of the growth as the industry is in the phase of development as well. These products have the potential of being positioned as cash cows owing to the growth prospects. As far as star is concerned, ice creams manufactured by the company and ghee are the two key products which have the potential to grow taking benefit from the growth opportunities presented by the industry. The health-conscious consumers have been targeted by the ice cream providing them with the option of ice creams that do not contain sugar. The ice cream with probiotics is another indication of the way the sweet milk-based dessert has helped the company to achieve a high market share. The brand of Amul ghee has also been a star for the company. Cash Cows: Generate a lot of cash for the company, When the market share of a product is high and it is being sold in an industry that had developed to such an extent that no significant growth is expected in future, then the product can be deemed as a Cash cow. Organizations use the cash cows to bring in revenues, while taking the benefit of the low investment needed to sustain the profitability of those products. The market share of these products is not likely to experience massive gains either, but the current position makes them a high revenue generator. There are two main products of Amul which can be placed in the category of cash cow, fresh milk and butter. Dogs: Low Growth and low market share. Dogs are those products that have low market share and at the same time have limited likelihood of growing into a profitable business unit for an organization. The low chances of success suggest that the management needs to be careful with the decision of investing resources in such a product since it offers no significant benefit to the organization. These products can be regarded as cash traps due to the low chances of becoming a significant source of profitability for the company. Investment in these businesses is not likely to yield much profits,
  • 15. 15 therefore they are not seen as a useful source of earning. Amul has few products which have not been able to generate the expected sales and revenues. One of the notable examples in this regard is Amul chocolate, which has experienced a demand of 3500 tons of chocolate. This situation indicates some development in the business position of the chocolate brand, but the competitors make it difficult to increase the market share to a significant degree that could make this product become a source of sustainable revenues. The modified strategy of managing the chocolate brand is expected to bring an increase in the market share of the product in the coming years, which suggests that the chocolate brand can become a star if profitability targets are achieved. Another product that is underperforming for the company is Amul pizza. Question Mark: Business usually at start-up and can consume lot of cash. With proper focus they can became Star or Cow. The products that have some likelihood of overcoming the challenges and grow the market share in future have been termed as question marks in the BCG matrix. One of the reasons why this category is labelled as question mark is that these products can either become a success in the form of taking the position of a star or become a source of continued loss for the company. The industry has growth potential, thus making it possible for the products to have room for growth if the pertinent issues are effectively managed. However, ineffective management of these issues can make it difficult to expand the market share of the product. There are some products being managed by Amul that can be identified as a question mark as their potential as a source of profitability remains uncertain. Amul lassi has been marketed with the aim to increase the market share and compete with the other beverages available to the market. SWOT ANALYSIS Matrix of Amul:
  • 16. 16 Strengths in the SWOT analysis of Amul Very high market share in ice cream – Amul has the top market share in ice cream segment which further helps it push other products into the market. Excellent brand equity – Amul is a beloved brand over the years and the contribution of Amul girl and her outdoor ads should specifically be mentioned here. Excellent quality management – even though Amul has such a wide and large distribution network, hardly any quality complaints come for Amul. Strong distribution network – This is one company which is strong in urban as well as rural distribution. You will find Amul present even in small towns and villages. Good product portfolio – Amul had a deep product portfolio when compared to any Fmcg company. It has many different varieties of milk-based food items like cheese, butter, milk, buttermilk, lassi and many others. In ice creams too, Amul has a large variety of flavours Strong Supply chain – Vendors love Amul and Amul is known for the white revolution in India. Rural presence – Strong rural presence of Amul is its plus point. It is mentioned here separately because this rural presence gives Amul a strong competitive advantage.
  • 17. 17 Weaknesses in the SWOT analysis of Amul Cost of Operations – Amul’s operation is huge. And so is the cost. Plus, the sector is such that maintaining margins becomes difficult day by day. Thus, to face international players, Amul needs to maintain the operations in the same manner it is carrying out today. It is not a weakness but rather a constant challenge for Amul. In fact, during summers, the brand faces severe shortage of supply. Chocolates – Amul’s expansion to chocolate has failed and hardly any product of Amul chocolates is selling in the market. Amul needs further products to expand its product line and increase bottom- line. Opportunities in the SWOT analysis of Amul Export – Amul can export its product to other countries thereby increasing its turnover and margins exponentially. Concentrate more on chocolate market – Amul has a no advertisement policy which creates a problem for its foray into additional products. Amul should in fact have separate SBU’s and concentrate more on increasing its product line through chocolates or other such products. Threats in the SWOT analysis of Amul Increasing competition in Ice cream segment – Many players, local and international, are entering the ice cream market thereby taking away share of wallet from Amul. Kwality walls, Naturals, London dairy, Havmor, Arun ice cream, Vadilal, Ramani, are some of the few brands who are directly in competition with Amul. PESTEL Analysis of Amul Political Reliance on state & district cooperative to provide milk producer with • Facility and support services. • Training programs • Conflict resolution Export of milk powder was banned in 2012. Economical:
  • 18. 18 • India high GDP growth rate implies increase in per capita income of people and thus more increase in demand for food product. Expansion plan • Cost of implementation of system. • Is system adding any significant value to the company. • Breakeven for the investment Social: • Lifestyle-Fast food culture caters more demand for ice creame, cheese, etc. • Demographic-growing youth population, more health consciousness and huge children population. • Culture- Custom of moving tea, more accustomed to milk and milk products. Technological: • Innovation in cold chain technology • Extending the reach of the network to more and more villages and towns • Amul Dairy has adopted low carbon technology at the Amul chocolate plant at Mogar Anand district. Legal: Organizations such as the FDA in the united states & their counterparts in other countries heavily regulated food items. In India Dairy manufacturers will also have to comply with all laws related to advertising & product labelling in their own country. 3.2 Literature Review: Research Paper 1. Title:” A Study on factors influencing consumer buying behavior towards dairy”. Author: Radhika Mamidi. Introduction: According to Radhika Mamidi in Research Proposal they explain why & how Amul advertisement makes a different image in consumer mind.
  • 19. 19 Amul advertisements1 , hereby Amul ads, are unique and are a treat for a common man as well as a lin- guist. These Indian ads, appearing in billboard format, have been around for over 45 years. These adver- tisements are for the product butter. Amul Company has many other products ranging from milk to ice- creams, cheese to chocolates, and milk powder to beverages. By 2005, Amul entered the global market2 as well. They also have many other commercials in different modes including videos. But the one for butter is the most popular and most consistent one. (Mamidi, 2018) Important elements in Amul ads The picture-Amul girl, the iconic figure with round eyes and blue hair [Fig. 16], transforms herself into different per- sonalities or accompanies different personalities. The personalities are easy to recognize as they are often the one in the news in that week. Figure 10 Amul girl transforms herself into different personalities The main text Not always the text is understood so easily. For example, the next ad (Fig.10) is based on the movie poster of ‘Kaminey’ (Fig. 8), but the text is understood only after watching the movie or knowing about the story in the movie. The main protagonists are twins and one of them has lisping problem and pro- nounces /s/ as /f/. So FUPER MAFKA! means ‘super maska’ (‘maska’ is butter in Hindi. Mimic of Kaminey poster Kaminey poster Figure 11 Mimic of Amul Poster
  • 20. 20 The slogan/byline Slogans have an important role to play. By repetition, they become part of our memory and also every- day language [25]. The slogan for Amul ads is ‘Utterly Butterly Delicious’. But it is not used always as seen in the ads above. Sometimes a parody of it is used as seen in the ad about ‘Bunty aur Babli’ (Fig. 2: Bun, tea aur Butterly), Facebook (Fig. 10: utterly twitterly delicious), other times it is substituted alto- gether with a different slogan as seen in the ad about Bt Brinjals9 (Fig. 11 Fully natural). It is used in such a way that it also refers to the product butter. Figure 12 Slogan of Amul The language used in the ads. Research Paper 2 Title: A Study on consumer preferences towards ‘Amul Product ’in Madurai city. Author: DR.S.P. Savitha Introduction: Amul (Anand milk produced union limited) formed in 1946, is a dairy cooperative movement in India. The brand name Amul sourced from the Sanskrit word Amoolya means priceless. Amul product has different type such as Milk, Chocolate, Milk powder, Curd, Ice cream etc.., Amul has strong network of over 3 million milk producers. Britannia industry and nestle Ltd. are competitive product for Amul. Amul is a world’s largest manufacturer of pouched milk. India largest food brand trusted Amul product for its quality and product available at affordable price. Number of popular milk product like Ice cream, Butter and Curd prefer to use Amul rather than other product. This research is pertaining to find out the present consumer satisfaction of Amul product (Dr.S.P.Savitha, 2017). Profile of the Respondents: The respondents are Amul product user of different Age group, Education, Gender, Marital status, Number of members, Monthly income level, Sales promotional activities. Age Wise Classification of the Respondents: The respondents were classified based on their age. Age wise classification of the sample respondents is given in the Table. Age Wise Classification of the Respondents Age No. of Respondents % of Respondents
  • 21. 21 20-30years 68 68 31-40years 20 20 Above41years 12 12 Total 100 100 It is inferred from the above table shows that,68% of the respondents are belong to the age of 20- 30years,20% of the respondents are belong to the age of 31-40years and 12% of the respondents are above41years. Gender Wise Classification of the Respondents: The respondents were classified based on their gender. They were grouped under two categories. Gender wise classification of the sample respondents is given in the Table. Gender Wise Classification of the Respondents Gender No of Respondent % of Respondents Male 39 39 Female 61 61 Total 100 100 From the above table shows that, 61%of the respondents are female and remaining 39% of the respondents are male. Type of Family: The respondents were classified based on their family members. They were grouped under two categories family wise classification of the sample respondents is given in the table Type of Family Type of Family No. of Respondent %of Respondents Joint Family 44 44 Nuclear Family 56 56 Total 100 100 It is inferred from the above table, showing that 56% of the respondents live as in nuclear family and 44% of the respondents live as in joint family. Family Members: The respondents were classified based on their Number of members in a family. They were grouped under four categories. Family member wise of the sample respondents is given in the Table. Family Members Members in a Family No. of Respondent % of Respondents Below 2 6 6 3 to 5 50 50 Above 5 44 44 Total 100 100 It is inferred from the above table, showing that 50% of the respondents having members of 3 to 5, 44% of the respondents having members of above 5 and 6% of respondents having member of below 2. Income Wise Classification: The respondents were classified based on their Monthly Income. They were grouped under three categories. Income wise classification of the sample respondents is the given in the table. Income Wise Classification Monthly Income No. of Respondent % of Respondents
  • 22. 22 Up to Rs 5000 11 11 Rs5001- Rs10000 26 26 Above Rs.10001 63 63 Total 100 100 It is observed from the Table, out of 100 respondents 63% of the respondents are earn monthly income Above Rs.10001,26% of the respondents earn an monthly income Between Rs.5001 to Rs.10000 and 11% of the respondents earn an monthly income below Rs.5000. Aware of the Product: The respondents were classified based on their Awareness of the product. Classification of the respondents based on awareness of the product is given in the Table. Awareness of the Product Awareness No. of Respondent % of Respondents Yes 92 92 No 8 8 Total 100 100 It is observed from the above table, shows that, 92% of the respondents were aware of the product and 8% of the respondents were not aware of the products. Types of Amul Product: The respondents were classified based on their Amul product. They were grouped under six categories Amul product wise classification of the sample respondents is given in the table. Types of Amul Product Types of Amul Product No of Respondents % of Respondents Chocolate 20 20 Milk 29 29 Ice-cream 25 25 Butter 9 9 Milk Powder 9 9 Curd 8 8 Total 100 100 It is observed from the table, out of 100 respondents, 29% of respondents using milk, 25% of respondents using ice-cream, 20% of respondents using chocolate, 9% of respondents using Butter and milk powder and 8% of respondents using curd. Duration of Usage: The respondents were classified based on their usage. Year wise classification of the sample respondents is given in the table. Duration of Usage No of Years No. of Respondent % of Respondents Below 1 year 52 52 More than 1 year 34 34 More than 5years 14 14 Total 100 100 It is observed from the above table, out of 100 respondents.52% of the respondents are using Amul product below 1year,34% of the respondents are using Amul product more than 1 years
  • 23. 23 and 14% of the respondents are using Amul product more than 5 years. Sources of Information: The respondents were classified based on their mode of sources; the classification of the respondents is given in the table. Sources of Information Sources of Information No of Respondents % of Respondents Television 58 58 Newspaper 19 19 Broucher 12 12 Display 11 11 Total 100 100 It is inferred from the above table, showing that 58% of the respondents knowing information through television,19% of the respondents knowing through newspaper 12% of the respondents knowing through broucher and 11% of the respondents through display. Place of Purchase: The respondents were classified based on their place of purchase. Place of purchase wise classification of the respondents is given in the Table. Place of Purchase Places No of Respondents % of Respondents Departmental Store 48 48 Retail Shop 33 33 Petty Shop 12 12 Super Market 7 7 Total 100 100 It is observed that 48% of the respondents are buying Amul product from Departmental store,33% of the respondents are buying Amul product from Retail shop,12% of the respondents are buying Amul product from Petty shop and 7% of the respondents are buying Amul product from Supermarket. Duration of Purchase: The respondents were classified based on their purchase duration. They were grouped under four categorized. The classification of the respondents is given in the table. Duration of Purchase Duration No. of Respondent % of Respondents Daily 44 44 Weekly 25 25 Monthly 26 26 Quarterly 5 5 Total 100 100 It is inferred from the above table, showing that 44% of the respondents are purchasing Amul product daily,26% of the respondents are purchasing Amul product on monthly basis,25% of the respondents are purchasing Amul product weekly and 5% of the respondents are purchasing quarterly. Preference to Buy Amul Product: The respondents were classified based on their preference. They were grouped under three categories. Classification of the respondents is given in the table. Preference to Buy Amul Product
  • 24. 24 Preference of Product No. of Respondent % of Respondents Price Off 39 39 Free Sample 32 32 Discount 29 29 Total 100 100 It is inferred from the above table showing that 39% of the respondents are prefer Amul product due to price off,32% of the respondents are prefer Amul product due to free sample and 29% of the respondents are prefer Amul product due to discount. Research Paper 3. Title: A Study on AN “ADVERTISING METAMORPHOSIS‟: AMUL „BUTTER GIRL‟ Author: Dr Rashmi Mahajan Introduction: Advertising is a form of communication used to persuade an audience (viewers, readers or listeners) to take some action with respect to products, ideas, or services (Get on Social, 2018). Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common (Kalotra A., 2015). AMUL BUTTER GIRL: HISTORY & THE ADVERTISING CAMPAIGN Amul Butter Girl popularly called as “The Amul Moppet” (A small endearingly sweet child.) was conceptualized to counter the competition of its rival, (Polson Butter Girl). Amul butter was launched in 1945 but was facing a stiff competition from the Polson Butter Girl. ASP (Advertising, Sales & Promotion) clinched Amul’s account in 1967 & the owner of the agency Mr. Sylvester daChuna & his art director Mr. Eustace Fernandez conceptualized and gave life to the Amul moppet. (Amul Girl, 2018) (Amul Moppet: Utterly Buttery Delicious Amul Girl, 2012) The Polson Butter Girl Amul Butter Girl (Amul Moppet) Figure 13 Amul Moppet ASP decided that they needed a girl who would worm her way into a housewife's heart. “And who better than a little girl?" Thus, the birth of the „Amul Moppet‟ said Sylvester da Cunha founder of ASP. Talents like Bharat Dabholkar were hired, who created the satire filled „tag lines‟ for 15 years. (Mahajan, 2018)
  • 25. 25 Currently, Mr. Manish Jhaveri is the creative inspirations behind these ads, while, Mr. Jayant Rane is the artist. (Know About the People Behind Amul’s Creative Trending Ads,2018. REASONS FOR THE SUCCESS OF THE ADS Amul Butter advertisements have a topical flavor. The topical ads receive extra coverage that they would not ordinarily receive, as it is something that the people are already talking about. (Amul Topical Story,2011) (Indian Dairy uses satire to stick it to politicians in Butter Ads in 2012) Figure 14 Amul Ads The use of innovative „Hinglish‟ taglines which are very evocative and generate tongue–in- cheek humor. (Full credit goes to Bharat Dabholkar who introduced such style). (Packing a punch, 2011). “ADVERTISING METAMORPHOSIS” The Butter Girl was primarily designed to counter the competition from “The Polson Butter Girl”. But she became so popular that Amul decided to change their packaging to incorporate her. The butter girl was such a rage that she was not only on the packaging of the butter, but she also started endorsing Amul’s milk & ice creams. The Butter Girl changed her role from being a „mascot‟ of just the butter and offered her services to the other products under the Amul umbrella. She did not stop there. Her popularity was so much that she started playing the role like R K Lakshman’s common man and „The Grandma‟ in the Giles cartoons of the UK. Research Paper 4. Title: “A Study which describes success story of a cooperative institution (AMUL)”. Author: Dr. Ritesh Dwivedi. Introduction: According to the Author the paper describes success story of a cooperative institution (AMUL) which has touched the level of excellence as top corporate players. Cooperative has farmers as members, and they used to sell their milk collectively under cooperative framework to maximize profits and increase bargaining power. In AMUL’s case Marketing strategy and Branding have been the mantras of success as AMUL Brand is one of the super brands of Indian market and it has established its contract with customers showcasing its higher quality standards, justified and correct pricing strategy & product availability in every part of India.
  • 26. 26 Brand building of Amul: Advertising of AMUL has been excellent till today as they know the pulse of a common Indian as well as modern youth. Certainly, it has helped that those responsible for keeping the AMUL name in the public eye have used considerable imagination. (Dwivedi, 2010) ‘The taste of India’ campaign has proved to be a trend setter. AMUL has constantly reviewed its marketing and branding strategy that it’s contract with consumers never dishonored. Quality is a vital ingredient of this brand and must always represent the highest hygienic & bacteriological standards. Amul range of Products AMUL defending its turf has changed retail environment, strikes out on its own, with AMUL Outlets or parlours to deliver consumers total brand experience. Launched in 2002, there are now 400 AMUL parlours across the country, which contributed 3% to the brand’s total turnover last year. AMUL parlours are today present on campuses of Infosys, Wipro, IIM-A, IIT-B, Temples, Metro rail and railway stations in Gujarat. AMUL has introduced several diverse ranges of varied products like cooking butter, low fat Butter etc. along its main product. Hence covering all the segments in which a competitor can enter, thus creating strong barriers and in turn playing offence to defend its market position. Research Paper 5. Title:” Managing complex networks in emerging markets: The story of Amul”. AUTHOR: Pankaj Chandra, Devanath Tirupati Introduction: The central message of the paper is that large fragmented markets need a long-term perspective on profitability. It requires simultaneous development of customers and suppliers. The requirements of this new business model are capabilities to develop a large network of suppliers, nurturing the market for long-term growth, focusing on efficiency & quality, developing a commitment to small stakeholders, strong implementation skills and breakthrough leadership. This article would also provide insights into management of very large supply chains by adapting and integrating a variety of strategies and techniques. (Pankaj Chandra, 2002) This includes building networks, developing trust & values in the network, developing fair mechanisms for sharing benefits across the supply chain, coordination for operational effectiveness, innovation and new technology for gaining competitiveness. The AMUL network and its extension that cover the whole country now have the following unique characteristics: • Its combined market and social development in a highly competitive environment. It recognized the inter-linkages between various environments that governed the lives of marginal milk farmers and the unmet needs of the consumers. It also changed the supply chain paradigm in order to reduce the cost to the consumer while increasing the return to the supplier.
  • 27. 27 • it realized that for the movement to succeed it had to benefit many people – both suppliers and consumers. While large scale had the danger of failure due poor control and management and required more resources, it also had the advantage of creating a momentum that would be necessary to bring more people into the fold and thereby help more suppliers and consumers. • it also realized that until the intermediaries understood the value of service to the marginal farmers on one hand and the consumers on the other, the task of carrying a large population of potential suppliers along with them would not be possible. More importantly, the goal could only be achieved in the long run and this required developing values in people and processes that were robust, replicable and transparent. • it also realized that the cooperative would not be independent and viable in the face of competition if it was not financially sound. This implied that the movement had to develop distinct capabilities that would deliver competitive advantage to its operations. This would include long term cost containment, world class deployment of technological resources and R&D, and better leveraging of scarce resources. The Business Model The objective of the network was to deliver profitable and equitable returns to many farmers for a long period of time. The business model had to include both the costs and benefits of services that would be needed to deliver milk with high productivity as well as to assist farmers in improving their social environment. The cooperative had decided as part of its value: • to charge for each service provided to the supplier • to purchase all milk that member farmers produced • to sell liquid milk at affordable prices to serve many consumers • to develop and deliver services that will improve lives of people in the network • to hire professional managers, to run the federation and unions, whose values included upliftment of rural poor. Research Paper 6. Title: “A Study of Rural Dairy consumers in Gujarat State”. Author: A. K. Makwana, M.D Gurjar. Introduction: The Indian Dairy cooperatives structure has a huge contribution in raising the milk production in the country up to approximately 146 million tons in the year 2014-15 from a meagre milk production 17 million tons in the year 1951. The per capita availability of milk in the country has increased to 340 g /day (GCMMF Annual Report 2015-16). Further, milk is the largest agricultural crop in India with market value exceeding Rs 4 lakh crore per annum and the milk group contributes the highest to the total output of our agricultural sector.
  • 28. 28 The Product Range of GCMMF: Product category Product Variants / flavors Bread spreads Amul Butter, Amul Lite, Delicious Table Margarine Cheese Range Amul Pasteurized Processed Cheddar Cheese, Amul Processed Cheese Spread, Amul Pizza (Mozarella) Cheese, AmulEmmental Cheese, Amul Gouda Cheese, AmulMalaiPaneer (cottage cheese), Utterly Delicious Pizza Fresh Milk Amul Gold Full Cream Milk 6% fat, Amul Shakti Standardised Milk 4.5% Fat, AmulTaaza Toned Milk 3% fat, Amul Slim & Trim, Amul Cow Milk UHT Milk Range Amul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk, AmulTaaza 1.5% fat Milk, Amul Lite Slim-n-Trim Milk, Amul Fresh Cream Milk Powders Amul Full Cream Milk Powder, Amulya Dairy Whitener, Sagar Skimmed Milk
  • 29. 29 Powder, Amulspray Infant Milk Food, Sagar Tea and Coffee Whitener Milk Drink AmulKool Flavored Milk, AmulKool Cafe, AmulKoolKoko, AmulKoolMillkSh aake, AmulKool Chocolate Milk, Nutramul Energy Drink Health Drink Stamina Instant Energy Drink Brown Beverage Nutramul Malted Milk Food Curd Products AmulMastiDahi (fresh curd), AmulMasti Spiced Butter Milk, Amul Lasse, AmulFlaavyo Yoghurt Ghee Amul Pure Ghee, Sagar Pure Ghee Sweetened Condensed Milk AmulMithaimate Mathai Range (Ethnic Sweets) AmulShrikhand, AmulMithaeeGulabjamuns, AmulBasundi, AvsarLadoos Ice-cream Sundae Range, sugar free and probiotic Chocolate & Confectionery Amul Milk Chocolate, Amul Fruit & Nut Chocolate, AmulChocozoo, AmulBindass, AmulFundoo Table 2 Product Range Methodology The study was be spread over the entire state and primary data was collected by way of a Questionnaire. The study covered all 26 Districts of Gujarat state, 227 talukas and further, three villages were selected from each taluka (A.K.Makwana, 2016). In total 681 villages from the
  • 30. 30 state were selected and data was collected from rural consumers. Results and Findings a) Profile of Selected Respondents Sr. No Age (Year) N Percentage 1 < 20 1 0.4% 2 20 – 30 53 21% 3 31 – 40 77 31% 4 41 – 50 55 22% 5 51 - 60 50 20% 6 > 60 13 5% Total 249 100% Around 75% of the consumers (rural) were in the category of young to middle-aged. a. Gender Wise Profile of Selected Respondents Sr. No Gender N Percentage 1 Male 213 86% 2 Female 36 14% Total 249 100% Around 86 % of the consumers (rural) were in the Male category. b. Family Size Wise profile of Selected Respondents Sr. No. Family Member N Percentage 1 Adult 789 60% 2 Children 516 40% Total 1305 100% Out of 249 families, around 60% of the family members of consumers (rural) were in the Adult category and remaining 40% in the Children category. c. Monthly Income profile of Selected Respondents Sr. No. Monthly Income N Percentage 1 < 4999 36 14% 2 5000 -10000 72 29% 3 10001 -15000 33 13% 4 15001 -20000 26 10% 5 20001 - 40000 62 25% 6 40.001-80,000 16 6% 7 >80.000 4 2% Total 249 100% Around 67% of the consumers (rural) had their monthly income below Rs. 20,000/-. b)Purchase Behaviors of Selected Respondents Sr. No. Milk (Lit.) N Percenta ge 1 < 1 2 1% 2 1 77 31% 3 1.5 15 6%
  • 31. 31 4 2 105 42% 5 2.5 7 3% 6 2.51 -3.50 32 13% 7 >3.50 11 4% Total 249 100% The daily purchase of around 32 % of the selected consumers (rural) was in the range of ‘1 litre or less’ and 80% were in the range of “2 litre or less”. c) Type of Milk purchased by Selected Respondents Sr. No. Type of Milk consumed N Percentage 1 Packed 68 27% 2 Loose 181 73% Total 249 100% Around 27% of the consumers (rural) bought packed milk and 73% consumed ‘loose milk’. d)Packed Milk Customers (Reason for Buying) (N=68) Points for each rank 3 2 1 Stateme nt. No Stateme nt 1st Rank 2nd Rank 3rd Rank Points scored To p 3 1 Assured quality according to standards. 17 7 12 77 1 2 Convenient packaging (easy to carry) 9 14 7 62 3 3 Price 8 10 4 48 4 Easy availability 4 16 8 52 5 Higher shelf life 4 9 9 39 6 Assurance of no adulteration 14 6 16 70 2 7 It is pasteurized 8 3 10 40 8 Taste and odour. 4 3 2 20 9 Other 0 0 0 0 Total 68 68 68 The top three reasons for buying packed milk were - Assured quality according to standards, Assurance of no adulteration, Convenient packaging (easy to carry). e) Loose Milk Customers (Reason for Buying) Points for each rank 3 2 1 Statement. No Stateme nt 1st Rank 2nd Rank 3rd Rank Points score d To p 3 1 Home delivery 5 5 6 31 2 Own milk animal 29 29 24 169 3 Formation of cream on boiling 12 13 22 84 4 Perceived better quality 52 45 39 285 1 5 Purchase of milk on credit 30 29 25 173 3 6 Lower price 48 40 36 260 2 7 Long term and old relationship/acquaintance with loose milk suppliers. 5 20 29 84 8 Other 0
  • 32. 32 Total 181 181 18 1 The top three reasons for buying Loose milk were - Perceived better quality, Lower price and Purchase of milk on credit. f) Loose Milk Customers (Reason for Not Buying Packed Milk) Points for each rank 3 2 1 Statemen t. No Statement 1st Rank 2nd Rank 3rd Rank Points scored Top 3 1 Non-Availability of pouch milk in area 25 13 13 114 2 Irregular supply of pouch milk due to closing of Centre. 2 1 1 9 3 Higher price 45 61 50 307 2 4 Perceived lower quality of pouch milk as compared to loose milk (for e.g. Formation of cream). 57 52 58 333 1 5 No flexibility in payment (i.e. cash purchases only) 42 41 45 253 3 6 Absence of home delivery 5 10 12 47 7 Frequent out of stock of desired milk pouch. 2 1 1 9 Total 181 181 181 The top three reasons for Not buying packed milk (by loose milk consumers) were - Perceived lower quality of pouch milk as compared to lose milk (for e.g. Formation of cream), Higher price and No flexibility in payment (i.e. cash purchases only). g) Frequency of Purchasing Packed Milk Sr. No. Purchasing Time N Percenta ge 1 Morning 36 53% 2 Evening 24 35% 3 Both Time 8 12% Total 68 100% Around 12 % purchased packed milk at both times. h)Frequency of Purchasing Loose Milk Sr. No. Purchasing Time N Percentage 1 Morning 48 27% 2 Evening 39 22% 3 Both Time 94 52% Total 181 100% Around 52 % purchased loose milk at both times. i) Type of Packed Milk (Variant wise)
  • 33. 33 Sr. No. Milk Variants N Percentage 1 Gold (6%) FAT 26 38% 2 Shakti (4.5%) FAT 28 41% 3 Tazaa (3%) FAT 14 21% 4 Amul Slim &Trim (1.5%) FAT 0 0% 5 Other 0 0% Total 68 100% The leading milk variant purchased by consumer (Rural) were Gold (38%) and Shakti (41%) and Tazaa (21%). j) Perception about Amul Milk and Milk Products Sr. No. Perception N Percentage 1 Very good 26 38% 2 Good 34 50% 3 Medium 8 12% 4 Bad 0 0% 5 Very Bad 0 0% Total 68 100% Around 88% of the consumers (rural) indicated that their perception about quality of Amul Milk and Milk Products was in the range of “Good to Very Good”. Conclusion From the above analysis it can be concluded that the strengths of dairy consumers in rural areas were Young and literate consumers and Favorable perception about AMUL products. Research Paper 7. Title: “A case study of Amul co-operative in India in relation to organizational efficiency”. Author: Dr. Ruchira Prasad, Dr. Rupali Satsangi. Introduction: An organization is a social unit, or a group of people structured in such a way that they work for achievement of specific goal. Structure can improve the working condition of an organization and a poor structure can ruin all the possibilities of openness, dynamism and decision making. (Dr.Ruchira Prasad, 2013) In the present research paper, a relationship between the designs of an organization with its operational efficiency indicators has been examined. It was found that these indicators play a very important role in the success of the organization Objective in research: 1) To study the significance of Amul co-operative in India. 2) To identify the relationship between organizational design and operational efficiency
  • 34. 34 of Amul co-operative in India. 3) To suggest an action plan for smooth functioning of Amul co-operative in India. RESEARCH METHODOLOGY To evaluate the success of Organizational Design the two types of data sources are considered. Primary Source as well as Secondary Source. Primary data was collected through a structured closed / open-ended questionnaire and interviews with senior officials of AMUL, its employees and customers. Research Paper 8. Title: “The systematic study of Amul marketing strategy”. Author: V. H. BHOIR, JYOTI MOKASHI Introduction: Amul is the one of the respected and best brands in India. objective of this research is only for accumulating the marketing strategies used by Amul. Objectives of the Study: The study would analyze the product positioning Strategies of AMUL. The study aims to find out reasons behind running successful cooperativebusiness. Significance of the Study The study would helpful for the student to know the efficiency of the various business strategies. (V.H.Bhoir, 2017) Research Methodology: This research paper is made by reviewing the secondary data from newspaper article and various online journals. Research Paper 9. Title:” Study on Product awareness and brand image of Amul ice-creame in and around Siliguri subdivision of west Bengal”. Author: Shomnath Dutta Introduction: In this research paper consumer satisfaction towards Amul ice-creame is discussed. Ice-cream notably being a seasonal product, with demand peaking during the summer months April to June and leaning during November to January for a sharp decline in consumption and resultant dip in sales and profits. The study was undertaken in and around Siliguri region of Northern West Bengal with site visits for three summer months to measure the demand and satisfaction of ice-cream lovers.
  • 35. 35 (Dutta, 2015) In the questionnaire some attributes like customers’ requirement in terms of flavor, colour, taste, variety and availability offered by company were identified as motivational factors for increased sales & satisfaction to consumers. Since, in Siliguri region Amul ice-cream encounters a stiff competition from HUL’s Kwality it was essential to know the feedback of customers to plan effective marketing and sales strategies in future and improve the quality of service to achieve better consumer satisfaction. Objective of study: To understand ice-cream market better at Siliguri & it’s surrounding. To understand the marketing and promotion strategies adopted by Amul for its ice-creams. To understand the perception of the customers regarding brand Amul and evaluating its image. Research methodology: Research approach-Survey Method conducted for four months (March –June’14) at Siliguri and its adjoining areas and the respondents were general people and specially the Gen-Y youngsters visiting multiplexes & the shopoholic customers visiting Malls or Big Retail outlets. Data Collection Method: Use of questionnaires for retailers and customers. Types of Data Collected: Primary Data through questionnaires for consumer. Secondary Data through Internet and company’s report. Source of Data: 1. Observation, 2. Direct communication with the people, 3. Personal interviews, 4. Cold calling and 5. Tele calling Data Collection Instrument: Questionnaire: A structured questionnaire of 12 questions of mix type with open ended, closed ended and multiple-choice questions, having of a 5-point Likert Scale ranging from ‘strongly disagree’ to ‘strongly agree’ through ‘can’t say options. Sampling Procedure: 1. Type: Descriptive 2. Type of Method: Random 3. Sample Unit: Young generation, Consumer visited Retail shop and Multiplexes 4. Sample Size: 100 Respondents 5. Sampling Method: Random Sampling Method. Tool Used: Charts, Bar-Diagram, Tables, Percentage, t-distribution. Area: Siliguri & Outskirts Respondent profile: General People, Youngsters, Teenagers and Mall based Retailers. 3.3 Research Methodology Research is a careful investigation or enquiry specifically through search for new facts in any field of study. Research methodology is a way to systematically solve a research problem. It is a
  • 36. 36 procedure by which the researchers go about their work of describing, evaluating and predicting phenomenon. Thus, it aims to give “work plan” of research. 3.3.1Research Design A research design is a logical and systematic plan prepared for directing a research study. It constitutes the blueprint for the collection, measurement and analysis of data. 3.3.2Data Collection The search for answers to research questions is called collection of data. Data are facts and other relevant materials, past and present, serving as bases for study and analysis. Sources of Data: Primary sources The primary data was collected through questionnaires. They were filled using the scheduled method of data collection by the researcher. Secondary sources The secondary sources were used only for collecting information regarding the sample; they were however not used for analysis ANALYSIS TECHNIQUES Quantitative analysis is performed using the data collected at each outlet to estimate the presence of Amul milk. Tools Utilized • Percentage Analysis • Graph Chart • Tables SAMPLING 1. Sampling Technique: Random sampling - A random sampling technique is that in which we select a group of subjects for study from a longer group. Each individual is chosen entirely by chance and each member of the population has an equal chance of being included in the sample 2. Sample Unit:
  • 37. 37 People who buy milk available in retail outlets, superstores, etc. 3. Sample Size: 52 4. Method: Direct interview through questionnaire. 5. Sample area: ITM Business School 6. Scale: Ordinal scale and Likert scale. 3.3.3 DATA ANALYSIS AND INTERPRETATION The collected data were not easily understandable, so I like to analyze the collected data in a systematic manner and interpreted with simple method. The analysis and interpretation of the data involves the analyzing of the collected data and interpretation it with pictorial representation such as bar charts, pie charts and others. 1) Which milk do you consume? a) Pouch milk b) Loose milk c) Both Options No of Responded % of Responded Pouch milk 28 53.8 Loose milk 5 9.6 Both 18 36.5 Table 3 Question 1 response
  • 38. 38 2) Are you satisfied with the milk you are consuming? a) Yes b) No Response No of Responded % of Responded Yes 44 84.6 No 8 15.4 Table 4 Question 2 response
  • 39. 39
  • 40. 40 3) What do you like? a) Quality b) Taste c) Price d) Availability Factors No of Respondent % of Respondent Quality 24 46.2 Taste 12 23.1 Price 4 7.7 Availability 12 23.1 Table 5 Question 3 response 4) Do you get milk pouch at………….? a) Doorstep b) From retailer
  • 41. 41 Responded No. of Responded % of Responded Doorstep 23 44.2 Retailer 29 55.8 Table 6 Question 4 response
  • 42. 42 5) What is total consumption of milk in a day? a) Pouch milk in 500ml…… b) Pouch milk in 1litre…… Responded No. of Responded % of Responded Pouch milk in 500ml 30 57.7 Pouch milk in1 litre 22 42.3 Table 7 Question 5 response 6) What is your monthly expenditure in milk (in Rs.)? a) 500-1000 b) 1000-1500 c) 1500 and above
  • 43. 43 Response No of Responded % of Consumer 500-1000 17 32.7 1000-1500 19 36.5 1500 and above 16 30.8 Table 8 Question 6 response 7) In pouch milk which brand do you prefer? a) AMUL b) MOTHER DAIRY c) GOKUL d) MAHANANDA e) WARANA f) OTHERS
  • 44. 44 Response No. of Responded % of Consumer AMUL 36 69.2 MOTHER DAIRY 5 9.6 MAHANANDA 3 5.8 GOKUL 3 5.8 WARANA 2 3.8 OTHERS 3 5.8 Table 9 Question 7 response 8) Do you think the price of the product is high compared to competitor’s product?
  • 45. 45 a) Strongly agree b) Strongly disagree c) Agree d) Neither Response No. of Responded % of Consumers Strongly agree 6 11.5 Strongly disagree 10 19.2 Agree 20 38.5 Neither 16 30.8 Table 10 Question 8 response 9) If you buy AMUL milk pouch which pack, you purchase? a) AMUL Gold b) AMUL Taaza
  • 46. 46 c) AMUL Slim & Trim Response No. of Responded % of Consumer AMUL Gold 18 34.6 AMUL Taaza 25 48.1 AMUL Slim & Trim 9 17.3 Table 11 Question 9 response 10) What is the frequency of Amul dairy you take from retailer? a) Daily b) Once a week c) Twice a week d) Thrice a week e) Never
  • 47. 47 Response No. of Respondent % of Respondent Daily 34 65.4 Once a week 7 13.5 Twice a week 4 7.7 Thrice a week 5 9.6 Never 2 3.8 Table 12 Question 10 response
  • 48. 48 • From all the responses I can easily say Amul milk is first preference as 69.2% are agree. • From interpretation I can say that 500 ml pouch milk is prefer than 1 litre. • Milk is mostly available at retail outlet not at doorstep. • Amul is prefer by consumer due to Quality of Amul Milk as 46.2 % are agree. • In Amul brand Amul Tazaa is most preferred 48.1 % agree • 65.4 % are daily consumer of the Amul milk are there. 3.4 RECOMMENDATIONS & CONCLUSION 3.4.1 Brief description of recommendation I. Tie up with local suppliers and farmers to increase the production and local procurement of milk II. Set up own self-funded dairy in NCR and other states III. Invest in high yielding cows/buffalos for existing farmers using a Micro finance model IV. Improve Logistics in Transportation by continuing integration with the Railway System V. Increase Distribution network through forward integration by Twin Model approach 3.4.2 Details of each recommendation, discussion of its technical suitability, Economic justification and feasibility of implementation. I. Reduce travel time and transportation cost- increasing lead time. Reduce wastage due to souring of milk No high investment capital involved Assurance of supply II. Reduces travel time and transportation cost-
  • 49. 49 Reduce wastage due to souring of milk High investment capital involved III. Increase milk yield per cow from 10-15 liters per day to 25 liters per day Farmers will earn more Micro finance enables the farmers to invest and upgrade their cattle IV. 50% savings on transport costs Lessen the price hikes by due to transportation cost Prevent the risk of accidents on the road Avoid delay in transportation due to traffic on roads V. Increase reach Increases awareness to customer Increase possibility of market share dominance 3.4.3 Suggested Scheme of Implementation, precautions and monitoring systems, if any • Research and development efforts must be increased for development of dairy industry in India. • Marginal farmers and landless laborers should be encouraged to practice dairying by providing financial assistance. In fact, dairy should be developed as a full-time occupation for them. • The practice of dairy farming which is not very popular in India should be encouraged. In rural areas, dairy as a business can be developed by creating various facilities at farm level. The farm should be devoted for the management of dairy activities. • Dairy is practiced as a supplementary source of income by most of the farmers. They should be encouraged to increase the scale of dairy operations. • The subject of dairy science needs to be popularized. Commercialization of dairy activities as part of the curriculum should be designed to encourage the students to take up dairy as their profession. • There is huge discrepancy in the performance of dairy co-operatives across India. The lack of standard system and common guiding force has resulted into
  • 50. 50 this imbalanced co-operative development. Attention is required in the areas which have remained behind to improve overall performance of Indian cooperative dairy sector. • To survive and grow in this competitive environment, professional management should be practiced by co-operatives which essentially include delegating authority, encouraging initiative and inviting suggestions by managers from subordinates. 3.4.4 Overall Benefits of the Project Most important benefit of this project I found it teaches me 7 important Marketing Rules which Amul follows: • Never underestimate the customer. • Shatter the demand curve. • Create a ladder of genuine benefits (technical, functional & emotional). • Escale innovate, elevate quality, deliver a flowless experience. • Extend the price range and positioning of the brand. • Customize your value chain to deliver the benefits ladder. • Use influence marketing seed your success through brand positioning. 3.4.5 Learning from the Project • Marketing strategy for high brand equity. • Technology for effectiveness- Technology that was embodied in products, process and practices became an important factor in delivering effectiveness to the network of cooperatives which Amul uses effectively. • Good Operations & Supply chain Management. • Coordination with Agency. • Strong Distribution Network. • Advertisement strategies. 3.4.6 Limitations • The research will be conducted in a limited area. • The internet information can be irrelevant. • The respondents were limited so cannot be treated as a whole population.
  • 51. 51 • Due to language problem it is possible that the respondents are not be able to understand the questionnaire and can cause misleading results. • Most respondents did not have proper knowledge of various services provided by their company, so they were unable to provided exact information. • The time period for the study was not enough for such a vast topic. • Many consumers don’t express their original perception and views because of biasness. • Certain open-ended questions were not answered with justice. 3.4.7 Scope for future study The study opens door to further inquiries into following factors: • Personal characteristics: demography, lifestyle, personal traits • Culture, values, sub-culture/cross-cultural factors • Influence groups: family, opinion leaders, reference groups • Situational variables: purchase occasion, market communication, shopping behavior, price, sales influence, product position Time frame required was not enough to survey a greater number of outlets. Income of the people decides the purchasing power. The high income prefers to purchase product with the quality, freshness, thickness etc. and vice-versa. More focus can be given on low income segment and rural consumption levels to capture the market. In Media Communications, campaign, premium packs, offers etc. help to raise loyalty. It is believed that customers make purchase decision based on receipt of a small no. of selectively chosen pieces of information. Thus, it will be very important to understand and how to push them to evaluate service and offerings.
  • 52. 52 Chapter 4. Conclusion Majority of the customer are satisfied with the Amul milk because of its good quality, reputation, easy availabilities. The factors considered by the consumer before purchasing milk are freshness, taste, thickness and availability. Finally, I conclude that, majority of the consumers are satisfied with the Amul milk for its good quality, taste and availability. some customers ae not satisfied with Amul milk because of high price, lack of dealer services, spoilage and low shelf life etc. therefore, slight modification in the marketing programmed such as dealers and outlets, promotion programmers, product lines etc., company can be as a monopoly and strong market leader Amul has also to take care of its competitors into considerations and more importantly its customers before making any move.
  • 53. 53 Chapter 5 REFERENCES sanasecurities .com https://www.marketing91.com/swot-analysis-amul/ https://rctom.hbs.org/submission/amul-the-taste-of-india https://www.researchgate.net/publication/290959987_Branding_and_brand_ma nagement_Case_of_Amul http://www.academia.edu/3706812/PROJECT_ON_AMUL. Ref: ibef.org https://www.ijser.org/researchpaper/A-CASE-STUDY-OF-AMUL- COOPERATIVE-IN-INDIA-IN-RELATION-TO-ORGANIZATIONAL- DESIGN-AND-OPERATIONAL-EFFICIENCY.pdf http://ijcrme.rdmodernresearch.com/wp-content/uploads/2017/02/150.pdf http://www.iaeme.com/MasterAdmin/UploadFolder/JOM_05_04_022/JOM_05 _04_022.pdf https://www.researchgate.net/publication/279923559_Amul_A_Cooperative_wi th_a_Brand https://web.iima.ac.in/assets/snippets/workingpaperpdf/2002-05- 06PankajChandra.pdf http://www.ijmdrr.com/admin/downloads/0712201620.pdf https://www.ijser.org/researchpaper/A-CASE-STUDY-OF-AMUL- COOPERATIVE-IN-INDIA-IN-RELATION-TO-ORGANIZATIONAL- DESIGN-AND-OPERATIONAL-EFFICIENCY.pdf http://www.ijarcsms.com/docs/paper/volume3/issue5/V3I5-0003.pdf https://www.researchgate.net/publication/324558638_Context_and_Humor_Un derstanding_Amul_advertisements_of_India