Market penetration of amul beverage range products by dhruvil shah

Acknowledgements
Every work accomplished is a result of efforts of several hands which contribute to its successful
fulfillment and this work is no different. I got this rare opportunity to express gratitude only
because I came across some wonderful people who helped me in accomplishing this project.
I would like to take this opportunity to acknowledge Gujarat Cooperative Milk Marketing Federation
(GCMMF) Limited for giving me this opportunity to be a part of India’s leading brand Amul. I am
extremely grateful to the federation for conferring me with a golden chance to contribute my
skills for the growth of such an esteemed organization. I would always remain indebted to the
thirty six lakh families of farmers who are the real contributors towards satisfaction of the need
of the consumers for milk and milk products.
I would like to thank GCMMF Ltd. Ahmedabad Branch for providing me the useful resources
for completing the work. I am thankful to the Branch Manager Mr. Nimit Doshi for helping me
all throughout my journey of eight weeks by resolving my most petite queries without which I
could not have gained enough learning. I am also thankful to Mr. Himanshu Bhardwaj,
Assistance Manager – Sales and Mr. Arun Karkera, Area Sales Incharge for helping me in
resolving specific issues arising in the market without which sales could not have been
accomplished.
I Would like to acknowledge distributor of amul, Mr. Rushabh Shah of Shree Parshwanath
Traders, Motera, Ahmedabad and another distributor of amul Mr. Jayeshbhai of Ashok
Marketing, Gandhinagar for support and resources I could utilize in order to promote amul
products. I am also thankful to Sales person of Shree Parshwanath traders, Mr. Sanjay Parmar
and Sales personal of Ashok Marketing Mr. Sanjay Singh. for providing me with enough
resources for sales and marketing and presenting before me the true picture of market of Amul in
our working area.
I am thankful to Mr. Mahanand Yadav, Working in production department of Amul for their
constant support and coordinating with us for the process of summer internship with GCMMF
Ltd.

PREFACE
Amul is the pride not only of Gujarat but also of entire country. I have great
pleasure in preparing this project of such organization. A person aspiring to enter in management
profession must have practical knowledge of the subject. The objective of industrial training is to
develop practical knowledge in student as a supplement of the theoretical study of management
in general as well as industrial. It provides foundation to students intending to pursue a career in
this field.
Today the business environment is rapidly changing in this competitive
environment the popular trend is also striving for maintaining its positions therefore it become
essential for the companies to concentrate on each products and increase retail penetration of
every products through sales and distribution and find improvements areas and working on it to
stand in competition. For this purpose this project “increasing retail penetration of amul beverage
range products and find improvement areas” taken place.
As I am student of management and the future manager the training play vital
role in my education. Because of the industrial training I have knowledge of industrial
environment and I felt hat this would be the part of my life. I become conscious that I am the
manager of future and I should also learn how to solve managerial problem and fulfill others
requirement at the time.
I have tried my best to represent all relevant data and information relating to my
project work. I hope this report will serve the purpose of the readers.
Dhruvil Shah
PGDM
SLIMS

Executive Summary
The report aims at presenting the results of projects accomplished at Gujarat Cooperative Milk
Marketing Federation Limited, Ahmedabad Branch. This Project aimed at increasing the Market
penetration of Amul beverage range products Which include Amul Kool Flavour Milk, Amul
Masti Buttermilk, Amul Lassi, Amul Koko, Café and Badam Can.
We Worked with two area of Distributors. The First one is Shree Pashwanath Traders Which
located at Motera, Sabarmati. This Distributor Supply Amul Products in around 350 outlets in
Sabarmati, Motera, New CG Road, Chandkheda, IOC Road, D-Cabin and Jantanagar Area. The
Second Distributor is Ashok Marketing Which Located in Gandhinagar. This Distributor Supply
Amul Products in around 250 outlets in Sector 2 to 8, Adalaj, Infocity and Some Villages like
Chiloda, Vavol and Sargasan.
The Objective behind this project is to increasing market penetration of amul beverage range
products in all the beats of these two distributors and identify factors affecting selling of
beverage range products and also identify improvements areas. During summer season beverage
products demand peak so during this days working on this projects is extremely worthwhile.
The summer internship involved lots of experiential learning from understanding the structure of
the Fast Moving Consumer Goods industry to managing sales in the same. It involved
considerable amount of negotiation and convincing skills.

Declaration
I hereby declare that summer internship project entitled Market Penetration of Amul Beverage
Range Products submitted by me is based on actual work carried out by me under the guidance
and supervision of director Dr. Neha Patel from Som-Lalit Institute of Management and Mr.
Himanshu Bhardwaj(Assistant Manager – Sales) and Mr. Arun Karkera (Area Sales Incharge)
from Amul – GCMMF (Gujarat Co-operative Milk Marketing Federation) Limited, Ahmedabad.
Any reference to this work done by any other person or institution or reference or any material
obtained from other sources have been duly cited and referenced.
_____________________
Dhruvil Vinodkumar Shah
Roll No. 40, PGDM(2016-18)
Som-Lalit Institute of Management
Ahmedabad.
Mentor
______________________
Mr. Himanshu Bhardwaj
Gujarat Co-operative Milk Marketing Federation
Ahmedabad

Contents Page No.
► Acknowledgemrnts
► Preface
► Executive Summary
► Declaration
A INDUSTRY ORIENTATION 1-6
Industry Overview 1
Industry Structure 3
Production and Consumption 4
Year wise milk Production in india 5
2015-16 State Wise Milk Production of India 6
B ORGANIZATION PROFILE 7-14
History of Organization 7
Entry of Dr. Kurien 10
Creation of Amul 11
Creation of Amul Girl - Utterly Butterly Delicious 12
Creation of GCMMF and Operation Flood 12
Amul The Test of India 14
C GCMMF LIMITED - OVERVIEW 15-21
Size of the Organization 15
Co-operative under GCMMF 16
Annual Sales turnover of GCMMF 17
Top Position of GCMMF 18
Organization Structure of GCMMF 18
Strategy 19
System 19
Staff 19
Skills 19
Style 19
Shared Values 19
Competitive Position of GCMMF Limited 20
Future Strategy and plan of the Company 20
Portal five forced model for competitive position 21
D OVERVIEW OF AMUL PRODUCTS 22-28
Vision of Amul 22
Mission of Amul 22
Overview of the Products 22
Overview of Beverage Range Products 24
CONTENTS

E SUPPLY CHAIN MANAGEMENT 29-32
Logistic and Supply chain Management of Amul 29
Step Wise Supply Chain Management 30
Conflicts among channel members 32
F PROJECT WORK 33-55
Context of the Organization 33
Project Introduction 33
Motivation behind the project 33
Objective of the Project 33
Approach of the work 33
Market Visit 34
Our Promotion against various point kept by retailers 34
Achievements 36
Retail Penetration of Beverage Products in Gandhinagar 40
New Stock Keeping Unit in Current Outlets 42
Analysis 47
Displays at retail stores 50
Key Learnings 51
Competitive Study 55
G BIBLIOGRAPHY AND REFERENCES 56

Industry Overview
India is world’s largest producer of dairy products by volume, accounting for more than
13% of world’s total milk production, and it also had world’s largest dairy herd. As the country
consumes almost all of its own milk production, India was neither an active importer nor an
exporter of dairy products prior to year 2000. However since the implementation of Operation
Flood Program, the situation changed significantly and imports of dairy products reduced to very
small quantities. From 2001, India has become a net exporter of dairy products and after 2003
India’s dairy import has dipped while exports have increased at a fast rate. Yet the country’s
share in global dairy trade still remains at minor levels of 0.3 and 0.4 percent for exporters and
importers respectively. This is due to direct consumption of liquid milk by the producer
households as well as the demand for processed dairy products that has increased with the
growth of income levels, which we have left little dairy surpluses for export. Nevertheless, India
consistently exports specialty products such as casein for food processing or pharmaceuticals.
The Indian dairy sector is also different from other dairy producing countries as India place its
emphasis on both cattle and buffalo milk. In 2010, the government and National Dairy
Development have drawn up a National Dairy Plan (NDP) that proposes to nearly double India’s
milk production by 2020. This plan will endeavor to increase the country’s milk productivity,
improve access to quality feeds and improve farmer access to the organized market. These goals
will be achieved through activities that focus on increasing cooperative membership and
growing the network of milk collection facilities throughout India.
Despite its huge production volume, India nevertheless faces a milk supply gap due to
increasing demand from a growing middle class population. Estimation suggests that Indian
dairy production is growing at a rate of 4 % per year, yet consumer demand is growing at
approximately double the rate. Apart from rapidly increasing demand for milk and dairy
products, other reasons such as the increased cattle feed cost and low availability of dairy farm
labor in the rural areas have also resulted in increase in the cost of production. On the other
hand, the strong pressure from European Markets to open up its market as well as proposed free
trade agreement with Australia and New Zealand may also put India’s dairy sector in the risk of
being jeopardies. In order to maintain the development of dairy industry, focus needs to be
Dhruvil Shah | 1

placed on several areas. First cost of production has to be reduced through increasing
productivity of animals, improve animal health care and breeding facilities and management of
dairy animals. Second, Indian dairy industry needs to further develop proper dairy production,
processing and marketing infrastructure, which is capable of meeting international quality
requirements. Third, India can focus on buffalo milk based specialty products, such as
Mozzarella cheese, in order to meet the needs of the targeted consumers.
India is the world’s largest producer of dairy producer of dairy products by volume and
has the world’s largest dairy herd. The industry accounts for around 17% of world’s total milk
production with an anticipated milk production of 128 million ton, and is also world’s largest
consumer of dairy products, almost all of its own milk production. Dairying has been regardless
as one of the activities that could contribute to alleviating the poverty and unemployment
especially in the drought prone and rain fed areas.
Milk production in India has developed significantly in the past few decades from a low
volume of 17 million ton in 1951 to 128 million ton in 2012. Currently, the Indian dairy market
is growing at an annual rate of 7%. Demand supply gap has become imminent in this due to
changing in consumption habits, dynamic demographic patterns and rapid urbanization of rural
India. This means that there is an urgent need for the growth rate of the dairy sector to match the
rapidly growing Indian economy.
Dhruvil Shah | 2

Industry Structure
While it is estimated that around 40 to 50 % of Indian dairy farmers are employed by the
organized sectors, approximately 65 % of milk in India is consumed on farm or by the
unorganized sectors including local milk vendors, wholesalers, retailers and the producer
themselves. Around 46 % of the milk is consumed by the consumers in fluid form and the rest is
processed in to various milk products such as butter, yogurt and milk powder.
In the year 2006-07 the total milk production in the country was over 94.6 million tones
with a per capita availability of 229 grams per day. The industry had been recording an annual
growth of 4 percent during the period 1993-2005, which is almost 3 times the average growth
rate of the dairy industry in the world. Milk processing in India is around 35 % of which the
organized dairy industry account for 13 % of the milk produced, while the rest of the milk is
either consumed at farm level, or sold as fresh, non-pasteurized milk through unorganized
channels. Dairy cooperatives account for the major share of processed liquid milk marketed in
the India. Milk is processed and marketed by 170 Milk Producers’ Cooperative Unions, which
federate into 15 state cooperative milk marketing federations. Over the years, several brands
have been created by cooperative like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras
(Rajasthan), Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur).
UP, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, AP, Karnataka and Tamil Nadu
are the milk surplus states in India. The manufacturing of milk products in India is obviously
high in these milk surplus states. Exports of dairy products have been growing at the rate of 25
% per annum in the terms of quality term and 28 % in the terms of value since 2001. Significant
investment opportunities exist for the manufacturing of value added milk products like milk
powders, packaged milk, butter, ghee, cheese and ready to drink milk products. Total of 15 to 16
% of the total milk produced in India is processed by the organized market, including dairy
cooperatives and private sectors. There were around 770 dairy processing units in organized
sectors. Vendors and milk dealers dominate the informal market where the farmers generally
procures milk from producers and sells them to urban households, while the latter supplies to
private processing units.
Dhruvil Shah | 3

Production and Consumption
The Indian dairy sector is different from other dairy producing countries as India places
its emphasis on both cattle and buffalo milk. Out of all bovine population in India, 40 percent are
indigenous cows, 46 percent are buffaloes and 14 percent are imported European or North
American cattle crossbreeds. Out of the nation’s total milk production, about 55 percent comes
from buffaloes and the remains from dairy cows. Traditionally, buffalo milk has been preferred
for its high milk fat content. However as the organized sector procures more milk, dairy cattle
becoming more popular due to their increased yields and shorter dry periods. Milk production
India show upward trend, it increased from 55.6 million tones in 1991-1992 to 128 million tones
in 2011-2012 with per capita availability of 291 grams per day in 2011-2012 which increased
from 178 grams per day in year 1991-1992.
Despite of huge production volume, India nevertheless faces a milk supply gap due to
increasing demand from a growing middle class population. Estimation suggest that Indian dairy
production is growing at a rate of about four percent per year, yet consumer demand is growing
at approximately double that rate. In response to increasing strong demand for milk products, the
Indian dairy industry is growing its milk production in several years. For example, dairy farmers
have responded to increasing dairy product prices by increasing herd sizes. In addition, those
farmers working directly with buyers from the organized sectors generally have access to
modern extension services, which provides support for the dairy farmers to improve
management, feeding, fertility and veterinary care. Many of these extension services provides
offer artificially insemination services that aims to further improving yields with new dairy cattle
genetics. Artificial insemination services are expected to grow in the future, as the government
of India continues to develop protocols for imported genetics products. Finally, commercial
dairies are also continuing with strengthening their presence in India.
Dhruvil shah | 4

Year Wise milk Production in India
Milk production in India
Year
Production
(Million Tonnes)
Per Capita Availibilty
(gms/day)
1991-92 55.6 178
1992-93 58 182
1993-94 60.6 187
1994-95 63.8 194
1995-96 66.2 197
1996-97 69.1 202
1997-98 72.1 207
1998-99 75.4 213
1999-2000 78.3 217
2000-01 80.6 220
2001-02 84.4 225
2002-03 86.2 230
2003-04 88.1 231
2004-05 92.5 233
2005-06 97.1 241
2006-07 102.6 251
2007-08 107.9 260
2008-09 112.2 266
2009-10 116.4 273
2010-11 121.8 281
2011-12 127.9 290
2012-13 132.4 299
2013-14 137.7 307
2014-15 146.3 322
2015-16 155.5 337
Saurce : www.nddb.org
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
020406080100120140160180
Production (Million
Tonnes)
Dhruvil Shah | 5

2015-16 State Wise milk production of India
State 15-16
All India 155491(000 Tones)
Andhra Pradesh 10817
Arunachal Pradesh 50
Assam 843
Bihar 8288
Goa 54
Gujarat 12262
Haryana 8381
Himachal Pradesh 1283
J & K 2273
Karnataka 6344
Kerala 2650
Madhya Pradesh 12148
Maharashtra 10153
Manipur 79
Meghalaya 84
Mizoram 22
Nagaland 77
Orissa 1903
Punjab 10774
Rajasthan 18500
Sikkim 67
Tamil Nadu 7244
Tripura 152
Uttar Pradesh 26387
West Bengal 5038
A&N Islands 15
Chandigarh 43
D&N Haveli 9
Daman & Diu 1
Delhi 281
Lakshadweep 3
Pondicherry 48
Chhattisgarh 1277
Uttarakhand 1656
Jharkhand 1812
Telangana 4442
Dhruvil Shah | 6

ORGANIZATION PROFILE
History of Organization
History of KDCMPUL
In 1942-43, Britishers settled in Bombay fell sick. After a
report, it was found that the quality of milk was not good.
The government of Bombay was forced to intervene. They
were looking for good quality of milk and milk products
supply from nearby areas. In 1926, Pestonjee Edulji had set
up a large factory nearby Anand district where butter was
being manufactured. Farmers collecting milk at Anand
The butter manufactured at Pestonjee’s plant was sold under a Western sounding brand name
“Polson” which had already become a household name in butter. The farmers of Kaira district of
Anand started producing milk in larger quantities for Polson Limited. Around the year 1945, Polson
Limited was contacted by the British Government of Bombay if Pestonjee could supply milk 427 km
from Anand to Bombay. Pestonjee pasteurized milk at his cream manufacturing facility and supplied
milk by packing them in gunny bags with chilled water inside. The milk after reaching Bombay was
in fairly good condition. This was the start of Bombay Milk Scheme (BMS). Hence, Bombay became
a market for milk producers in Kaira district of Anand in Gujarat.
Polson asked for an agreement with the British Government that no one
else in the area should be allowed to obtain milk from the farmers of
Anand. Farmers of all the villages of Anand should sell the milk only to
Polson. In other words, Polson got a direct license to monopolize the
supply of milk. The prices of milk was never fixed. Polson obtained milk
at very low prices from the farmers. They were being exploited for selling
milk.
Farmers at Anand
Dhruvil Shah | 7

Farmers united themselves and met Sardar Vallabhbhai Patel.
Sardar Patel suggested them to form milk cooperatives. Sardar Patel
assigned the task of formation of cooperatives to Mr. Morarji Desai.
Morarjibhai appointed Tribhuvandas Patel, a farmer of the area as the head of
the union of farmers. Tribhuvandas had a very good reputation among the
farmers as he was a freedom fighter and had come out of jail then.
Although, Tribhuvandas was reluctant in adopting this role, but seeing his
previous work Morarjibhai considered him as perfectly fit for taking up the role
to unite the farmers. Under his leadership, cooperatives started forming in the
Shri Tribhuvandas K Patel
villages of Anand. These cooperatives together collected the milk and
collectively sold to Polson.
Polson tried all the filthy tricks - like discovering flies in the milk- to break the cooperative
structure. The farmers were exploited even more. At this stage, they again met Sardar Patel.
Sardar Patel asked them to remove Polson. Sardar Patel asked them if they were ready to fight
the government. Such an action would directly result in some losses to farmers as they would not
be able to sell milk. But if they were ready to bear the losses, Sardar Patel could lead them. The
farmers agreed.
In January 1946, Morarjibhai met the farmers under a banyan tree in Chaklashi village, ten
kilometers from Anand. Thereby, two points were proposed. One, no milk will be sold to Polson.
Two, cooperatives will be formed at village level which will be together responsible for milk
procurement, processing and marketing. The union of cooperatives will have its own
pasteurizing plant.
Dhruvil Shah |8

These demands were rejected by Government of
Bombay. The farmers went on fifteen day strike.
Milk was poured on the streets and not a drop
was given to Polson. Villagers were adamant on
their demands. As a result, BMS collapsed and
Polson’s milk collection came to a halt. In 1946,
the farmers under the leadership of Tribhuvandas
Patel registered Kaira District Cooperative Milk
Producers Union Limited (KDCMPUL).
Symbol of KDCMPUL
There was an old plant of research creamery in Anand which belonged to National Dairy
Research Insititute (NDRI). This was not operational after First World War. The Union
demanded if they could be given the plant. The demand was not approved. However, they were
given the permission to use the plant for a yearly rental charges of Rs.9000.
The first office of the KDCMPUL
Dhruvil Shah |9

Entry of Dr. Kurien
Dr. Verghese Kurien, a person who had then completed dairy engineering from Michigan State
University as a part of some government scholarship programme was sent to Anand as part of the
contract to work. He was assigned the task of manufacturing milk
powder out of buffalo milk from a government creamery. The work
was not at all exciting. This was the first time that Dr. Kurien got to
know about village cooperative from Tribuvandas Patel working at
the government research creamery just their next door. Dr. Kurien
would go and help these farmers in repairing the old machines on
which they were working in the creamery located just nearby to
where he was working. Dr. Kurien had been helping Tribhuvandas
in repairing the machines and somehow get their work done.
One day, Dr. Kurien said that repairing these machines would not help their union in the long
run. He suggested that they should purchase a plate pasteurizer. Tribhuvandas took some money
on loan from his brother-in-law and asked Dr. Kurien to order a plate pasteurizer next time he
visits Mumbai. Soon, the cooperative got a new plate pasteurizer. Dr. Kurien who had already
sent his resignation from his job finally got a reply of the acceptance of his resignation. When he
was about to leave Anand, he was approached by Tribhuvandas if he could stay back and further
help the cooperative with the operations of new machines. Dr. Kurien agreed to stay for two
months for a salary of Rs.600 per month. Later Dr. Kurien found himself so involved with the
farmers that he decided to stay there forever and help them. He formally joined KDCMPUL as
General Manager in 1950.
Soon, the milk production increased from 200 litres in 1948 to 20000 litres in 1952. Pasteurized
milk was being supplied from Anand to Bombay Milk Scheme through trains. Later, they faced
an unprecedented problem. The buffaloes give more milk in winter than summer. As a result,
they would get surplus milk in winter. Dr. Kurien thought of manufacturing milk powder out of
it. He was sent to New Zealand for a research fellow during 1952-53. When he returned, he
started thinking upon purchasing a new dairy plant for manufacturing milk powder out of buffalo
milk. Milk powder had never been prepared from buffalo milk and hence there were lots of
people in politics who were criticizing the idea. Also, it required huge set up cost.
Dhruvil Shah |10

In 1956, UNICEF representative Mr. Davis was in India. He suggested that UNICEF could assist
them in setting up the new plant if they could distribute milk to children and expectant mothers
completely free valued at one-and-half times the plant cost, to be repaid over a period of five
years. Dr. Kurien agreed. Also, he, along with his friend Mr. Dalaya demonstrated milk powder
production from buffalo milk in Bombay. As a result, he won trust of everyone and got the
assistance of UNICEF in setting up the plant. After some serious negotiation, the plant they got
was the Niro Plant manufactured by Larson and Toubro.
Creation of Amul
During this time, Dr. Kurien’s wife’s brother-in-law, Mr. K.M. Philip, an entrepreneur himself,
suggested Dr. Kurien that he should start focusing upon nitty-gritties of marketing. Dr. Kurien
realized that they were able to sell milk and milk products only because there existed a market in
Bombay. Hence, he realized the importance of marketing. He studied marketing and started
discussing with people in the field. He then decided that they should have a brand name for their
products. During a brainstorming session, a chemist in their lab suggested a name, ‘Amul’. It had
come from the Sanskrit word, ‘Amulya’, meaning priceless. Dr. Kurien liked it as it was short,
easy to spell, pronounce and remember. Also, it could be thought of as an acronym for Anand
Milk Union Limted. Also, it was easier on tongue than Kaira District Cooperative Milk
Producers Union Limtied. All agreed to the brand name Amul. In 1957, the cooperative
registered the brand name Amul.
Later, Polson dairy which had started facing losses approached a few ministers for solution. Dr.
Kurien came out with a solution to divide Anand district into two regions, one from where Amul
dairy could obtain the milk and other from where Polson could purchase. Dr. Kurien carefully
planned the division in a manner that the villages which produced more milk came under the
ambit of Amul. Gradually, Polson lost its share and Amul started becoming a household name
for milk and butter. Amul also started baby food after some time.
Dhruvil Shah | 11

Creation of Amul Girl – Utterly Butterly Delicious
In 1966, Amul account was given to Advertising and Sales Promotion (ASP)
Company, Bombay. ASP was asked to dislodge Polson from their premier
brand position from Bombay. Eustace Fernandes then, created the famous
character of endearing and mischievous Amul girl. The team of Usha
Kartak, K. Kurien and Sylvester DaCunha gave the tagline of ‘Utterly,
Butterly Delicious’ - which broke all records of longest running ad
campaigns in the Indian advertising history.
The Amul Girl
Creation of GCMMF and Operation Flood
Shree Lal Bahadur Shastri at Anand Dairy in 1964
In 1964, the then Prime Minister of India, Shri Lal Bahadur Shastri was invited to Anand for
inaugurating a plant at Kanjari, few kilometres from Anand. Shastriji visited Anand. He carefully
observed everything and appreciated the work of cooperatives and Dr. Kurien. He asked Dr.
Dhruvil Shah | 12

Kurien to start working for the entire nation. Shastriji wanted Dr. Kurien to set up Anand model
in the entire nation.
Dr. Kurien accepted the idea and on his suggestion, National Dairy Development Board (NDDB)
was set up in 1965 at Anand to take up the project of creating several Amuls in entire nation. A
board member argued that creating more Amuls would mean creating competition for
themselves. But Shastriji was correct on his point that just one Amul would not be able to meet
the demand of milk and milk products of the entire nation. Moreover, several Amuls would be a
structure as strong as clenched fist which would be difficult to break.
Dr. Kurien began drafting the document for operation flood with his old friend at dairy H.M.
Dalaya and a professor Michael Halse. The proposal was finalized on 31
st
October, 1968 and
approved by the government. They called it ‘Operation Flood’ which was later called as the
‘Billion Litre Idea’. They received funds from World Bank to carry out Operation Flood.
Operation flood was to be carried out in three phases. In the first phase,
they received skimmed powder milk and butter oil from European
Economic Community (EEC) as gifts through the World Food
Programme. They could, thereby, finance the First Phase by selling
these products. Also, they linked the eighteen of India’s premier milk
sheds with the markets of Delhi, Bombay, Calcutta and Madras. The
phase spanned through 1970s and took around ten years.
Symbol of the Operation Flood
The second phase lasted from 1981 to 1985. It was implemented from the seed capital raised
from the sale of EEC gifts and World Bank loan of Rs.200 crore. During this time, the number of
milk sheds increased from 18 to 136. In total, 43,000 village cooperatives were formed covering
4.25 million milk producers and more than 290 urban markets were established.
The third phase of Operation Flood lasted from 1985 to 1996. It increased the number of
cooperatives from 42,000 to 72,000. During this phase, the veterinary facilities were extended.
More emphasis was laid on research in dairy and animals.
Dhruvil Shah | 13

During the period of Operation Flood, more and more village cooperatives were developing. These
cooperatives gradually entered into competition with one another. This could mean that the
cooperative structure could do more harm than good to the farmers by not generating sufficient price
for their milk production. A large cooperative was formed at Mehsana, which directly competed with
the Anand cooperative. As a result, in 1969, Dr. Kurien signed an agreement with the Mehsana Dairy
under which the Mehsana Dairy would produce butter and milk powder and
the products would be distributed under the brand name of
Amul. The same structure could be applied at state level to
avoid competition among the cooperatives. Hence, in 1973,
Gujarat Cooperative Milk Marketing Federation (GCMMF)
Limited was formed. Dr. Kurien became the Chairman and
Managing Director of the Federation and resigned as General
Manager of Amul. Since then, GCMMF is the apex body
which purchases milk and milk products from the 17 district
level cooperatives in Gujarat and involves into their marketing
and distribution.
Amul-The Taste of India
In 1994, as Amul was making more and more products, there appeared a strong need for creating
a brand new logo which could depict the taste and diverse nature of the country. The Amul girl
covered only Amul butter. It took several sittings with Dr.Kurien for advertising agencies to
before reaching down to any conclusion. Finally, Shri Kanon Krishna of Advertising and Sales
Promotion Company, Mumbai suggested the tagline“The Taste of India”. Dr. Kurien readily
approved it and it became the new tagline of the leading brand.
Dhruvil Shah |14

Size of the Organization
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food product
marketing organisation with annual turnover (2016-17) US$ 4.1 billion. Its daily milk procurement is
approx 18 million lit per day from 18,700 village milk cooperative societies, 18 member unions
covering 33 districts, and 3.6 million milk producer members.
GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House"status.
Many of our products are available in USA, Gulf Countries,Singapore, The Philippines, Japan, China
and Australia. GCMMF has received the APEDA Award from Government of India for Excellence in
Dairy Product Exports for the last 16 years. For the year 2009-10, GCMMF has been awarded "Golden
Trophy" for its outstanding export performance and contribution in dairy products sector by APEDA. In
2013-14, GCMMF took giant strides in expanding its presence in International markets. Amul’s
presence on Global Dairy Trade (GDT) platform in which only the top six dairy players of the world sell
their products, has earned respect and recognition across the world. By selling milk powders on GDT,
GCMMF could not only realize better prices as per market demand but it also firmly established Amul
in the league of top dairy players in world trade.
Members 18 District Cooperative Milk Producers' Unions
No. of Producer Members 3.6 Million
No. of Village Societies 18,700
Total Milk handling capacity per day 30 Million litres per day
Milk Collection (Total - 2016-17) 6.57 billion litres
Milk collection (Daily Average 2016-17) 18 million litres
Cattlefeed manufacturing Capacity 7800 Mts. per day
Sales Turnover -(2016-17) Rs. 270085 Crores (US $ 4.1 Billion)
Geographical Spread
India, USA, Gulf nations, Singapore, China, Japan,
Australia, Philippines.
Amul Organisational Size
Dhruvil Shah | 15

Cooperatives under GCMMF
1. Kaira District Cooperative Milk Producers' Union Ltd., Anand
2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana
3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar
4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur
5. Surat District Cooperative Milk Producers' Union Ltd., Surat
6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara
7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra
8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad
9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch
10.Ahmedabad District Cooperative Milk Producers' Union Ltd.,Ahmedabad
11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot
12. Gandhinagar District Cooperative Milk Producers'Union Ltd., Gandhinagar
13. Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranagar
14. Amreli District Cooperative Milk Producers Union Ltd., Amreli
15. Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar
16. Kutch District Cooperative Milk Producers' Union Ltd., Anjar
17. Junagadh District Cooperative Milk Producers' Union Limited,Junagadh
18. Porbandar District Cooperative Milk Producers’ Union Ltd, Porbandar
Dhruvil Shah | 16

Annually Sales Turnover of GCMMF
Sales Turnover
Year
Rs
(million)
US$ (in
million)
1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504
2009-10 80053 1700
2010-11 97742 2172
2011-12 116680 2500
2012-13 137350 2540
2013-14 181434 3024
2014-15 207330 3410
2015-16 229720 3500
2016-17 270850 4100
According to this table we can say that GCMMF turnover increases year by year, in 1999-00 and
2001-03 it was stable to previous year but it never saw decrease in their turnover. In the year
2016-17 the turnover of GCMMF turnover Increase 17.24% and Reach at 270850 Crores which
is equal to 4100 Million US $.The Amul brand is not only a product, but also a movement. It is
in one way, the representation of the economic freedom of farmers. It has given farmers the
courage to dream. To hope. To live.
Dhruvil Shah | 17

Top position of GCMMF
The Chairman of GCMMF is elected by voting in which the chairman of 18 district co-operative
take part. Currently Mr. Jethabhai Patel of Sabarkantha Dairy is the Chairman of GCMMF. The
Managing Director of GCMMF is Mr. R.S. Sodhi. Mr. Sodhi was re-elected as Managing
Director in September 2015. He told an experience of more than 34 years in amul and has done a
tremendous job in the marketing area for GCMMF. He did MBA from Institute of Rural
Management, Anand and thereafter he worked as Senior Sales Manager at Amul. He had also
worked with Dr. Kurien.
Organization Structure of GCMMF
Dhruvil Shah | 18

Strategy
Gujarat Co-operative Milk Marketing Federation Limited works procuring milk
collectively from all the co-operatives of Gujarat, thus avoiding any internal competition among
the co-operative and help farmers to get the best price for milk supply
It has state-of-the art processing and packaging plants for producing and packing the final
milk product. Economies of scale have been achieved which help in reducing the costs and thus
providing the consumers best prices.
It works with the concept of umbrella branding. All the products are marketed under the
single brand name. This helps in earning brand perception in consumer’s mind whenever it
wishes to launch any new product. Also, it focuses more on advertising of the brand “Amul”.
This helps in marketing all the products under the name of Amul. It enters into alliances with
large retail chains, hotel brand etc. for better sales.
Systems
Amul Implements effective Distribution Management System Which helps it in
effectively managing all the operation like finance, Sales and Marketing.
Staff
Gujarat Co-operative Milk Marketing Federation Limited employs a dedicated sales force
which is committed to the end results. They believe in better care for the employee and provide
awards into several categories for good work.
Skills
Amul’s brand building skills is unmatched. GCMMF’s core skill is its underlying sales
and distribution team. They manage their sales effectively. To Complement to the same, they
have very well established network of milk suppliers from whom they obtain milk at appropriate
time and manage their inventory very well.
Style
The leadership style of managers at Amul has always been transformational in nature
right from the time of Dr. kurien. Smaller takes are given. Strong communication is focused.
Managers motivate the employees continuously for achieving goals.
Shared Values
Amul has always believed in the power of farmers. Dr. Kurien believed that if the
farmers are given the power to take decisions they will contribute to the nation’s growth. Amul
has always believed in the power of people of India. Dr. Kurien said that there is huge untapped
potential in the people of India. This potential can be Utilized. Still Believing in this value, Amul
deliver the major power of decision making in the hands of farmers in Gujarat. They Share the
value of delivering maximum benefits in the hands of the farmers. They focus more on the co-
operative culture than the corporate culture.
Dhruvil Shah | 19

Competitive Position of GCMMF Limited
The become one of top ten organization in terms of annual turnover in the FMCG industry. The
chief competitor of Amul in the industry include Nestle at the national level besides several local
players in different states and cities like Madhur dairy & Jain dairy in Gandhinagar, Saras in
Rajasthan, Nandini in Karnataka etc. Nestle is a leading multinational company which deals into
several products categories in the food and beverage segment of the FMCG beside milk and milk
products. Mother Dairy is yet another dairy following a pattern similar to Amul and has market
penetration in ice-creams.
Amul has seen tremendous growth of 187% in last six years. In the fiscal year 2016-17, it
registered growth of 11% over the previous year and touched Rs. 27085 Crore of turnover
annually. Britannia, Nestle, ITC(food Business) and HUL(Food Business) Posted an annual
turnover of Rs. 8176.82 crore, Rs. 9556.24 Crore, Rs. 6411 Crore, and Rs. 5522 Crore
respectively.
Future Strategy and Plan of the Company
Amul has plan to invest Rs. 600-800 crore every year to make a total of Rs. 3000 Crore
investment to increase its milk processing capacity by 2020. This is being done in order to
increase the milk processing capacity. At present, the company has a capacity of 2.8 crore of
milk processing every day. This will expand to 3.2 crore litres per day by March 2018. The also
set plan to start around 10,000 franchise amul parlour in all over india by 2020. The Organization
wishes to enter in bihar, Jharkhand, kerala, odisha and certain parts of North-East India including
Guwahati. Amul is the official sponsor of Indian team for Rio Olympics.
Dhruvil Shah | 20

Portal five forces model for understand competitive position
Dhruvil Shah | 21
Bargaining power of customers
The consumers have a very good brand
perception of Amul. They are ready to buy
Amul products at whatever prices. However,
aligning with its vision of providing high
quality products to consumers at best prices,
Amul keep the prices of the products low.
Consumers get more option in ice-cream,
however, Amul is the only brand providing
pure milk ice-cream and it advertises it
effectively
Bargaining power of Suppliers
GCMMF hold a very good relationship with
the suppliers of milk, that is, the farmers of
Gujarat. It procures all the milk from them.
No one else is allowed to procure milk from
them. Also, the suppliers are given very good
price for their produce. GCMMF also
provide others facility to farmer like cattel
feed, health services for cow, health facility
for farmers and their family.
Threat of Substitution
There are speculations that Patanjali
Ayurved Limited might enter into Dairy
segment as it has already rolled out ghee. The
new entrants would face difficulty to enter as
Amul has a good brand perception among
consumers, economies of scale, efficient
network of established distributors and good
relation with suppliers. In Beverage segment
also threat from vadilal industries because
they also started to introduce beverage range
products.
Threat of Substitution
The dairy industry is seeing a continuous
growth and any substitution is unlikely for
milk and milk products. The unorganized
milk distribution has also started providing
milk based products. They provide more
personalized services to the consumers. Also,
milk based beverages face threat from cold
drinks and juices.
Industrial Rivalry
Amul is the market leader in butter, cheese and
organized milk distribution. The competitors have
far less market share. Amul has economy of scale
in production which helps it in winning over its
competitor by lowering the prices.

Vision of Amul
When Dr. Kurien had set up Aml dairy, its vision was, “To provide the best prices to the farmers
for their produce and provide high quality products at best prices to end consumer.” Since then,
Amul has worked keeping the same vision in mind.
Mission of Amul
We at GCMMF endeavor to satisfy the taste and nutritional requirements of the consumers of the
world through excellence in marketing by our committed team. Through co-operative
networking, we are committed to offer quality for products that provide best value for money.
Overview of Amul Products
1. Amul Milk : Amul Diamond
Amul Gold
Amul Shakti
Amul Tazza
Amul Cow Milk
2. Bread Spreads : Amul Butter
Amul Choco buttery Spread
Amul Garlic Butter
Amul Lite
Amul Unsalted Butter
3. Cheese : Amul Processed Cheese
Amul Emmental Cheese
Amul Gouda Cheese
Amul Cheese Spread
Pizza Mozzarella Cheese
4. Beverage Range : Amul Kool Flavoured Milk
Amul Kool Can (Koko & Café)
Amul Pro Drink
Amul Masti Butter Milk
Amul Lassi
Dhruvil Shah | 22

5. Paneer : Amul Malai Paneer
Amul Fresh Paneer
Amul Tin Paneer
6. Dahi : Amul Masti Dahi
Amul Probiatic Dahi
Amul Flaavyo
Amul Masti Dahi
7. Ghee : Amul Ghee
Sagar Ghee
Amul Cow Ghee
Amul Brown
8. Milk Powder : Amul T-Special
Amul Spray
Amulya
Sagar Skimmed Milk Powder
Sagar Tea Coffee whitener
9. Mithai Range : Amul Shrikhand
Amul Gulab Jamoon
Amul Basundi
Amul Avsar Ladoo
Amul Mithai Mate
10. Chocolate : Amul Chocolate
Amul Chocozoo
Chocolate Syrup
Amul Wafer Chocolates
Amul Rejoice Assorted Chocolate
11. Fresh Cream : Amul Fresh Cream
Amul Whipping
Amul Sour Cream
12. Ice Cream : Amul EPIC
Amul Ice Creams
Amul Flaavyo Frozen
Amul Cream Rich
Dhruvil Shah | 23

Overview of Amul Beverage Range Products
1. Amul Kool Flavour Milk
Amul Kool is refreshing milk with taste of different flavours. It is an easy to use delicious
drink that refreshes you immediately with goodness of milk
Available Flavours : Amul Kool Rose
Amul Kool Keshar
Amul Kool Elaichi
Amul Kool Badam
Shelf Life : 180 Days when stored in cool and dry place.
Storage Condition : Ambient
Packing Available : 200 ML Pet Bottle
200 ML Glass Bottle
MRP(200 ML Bottle) : Rs. 20
Retailers Margin(%) : 11 % On MRP.
Distributor Margin(%) : 3.5% - 4% on MRP.
Dhruvil Shah | 24

2. Amul Pro Drink
Amul Pro Drink is a delicious chocolate based nutritious drink. It is a healthy, natural
milk based drink which provides an alternative to carbonated soft drink.
Available Flavour : Chocolate
Shelf Life : 180 days from the date of manufacturing
Storage Condition : Cool and dry condition with ambient temperature
Packing Available : 200 ML Pet Bottle
200 ML Glass Bottle
Target Audience : It is lifestyle drink which targets kids as well as
Working class who look for ready to drink healthy
Breakfast milk on the move / do not have time to
Prepare at home.
MRP(200 ML Bottle) : Rs. 22
Retailers Margin(%) : 11% on MRP.
Distributor Margin(%) : 3.5% - 4% on MRP.
Dhruvil Shah | 25

3. Amul Can
It is an easy to use delicious drink that refreshes you immediately with goodness of milk.
It is healthy, natural milk based drink which provides an alternative to carbonated soft
drink.
Can Flavour : KOKO Can – Nourishing drink with chocolate
CAFÉ Can - Refreshing milk with Coffee.
Badam Can – Drink with fruit/nuts mix with milk.
Shelf Life : 180 days when stored in cool and dry place
Storage condition : Ambient
Packing Available : 200 ML Can
Target Audience : It is lifestyle drink which targets kids as well as
Working class who look for ready to drink healthy
Breakfast milk on the move / do not have time to
Prepare at home.
MRP (200 ML) : Rs. 30
Retailers Margin(%) : 11% On MRP
Distributor Margin (%) : 3.5% - 4% on MRP.
Dhruvil Shah | 26

4. Amul Masti Butter Milk
Amul Masti Buttermilk is refreshing milk based natural drink. It is an easy to use low
calorie drink that refreshes you immediately with goodness of nature.
Packing Available : 200 ML TetraPak
1 Litre Tetrapak
Storage Condition : Cool and dry condition with ambient temperature
Product Positioning : Amul Masti Buttermilk – Asli Masti, Asli Taazgi
Refreshing thirst quenching drink with goodness
Of nature.
Target Audience : Adults who like calorie natural product to beat the
heat. Senior citizen who are looking for natural
drink that is good for digestion. Young generation
who want to avoid aerated drink but need something
tasty to drink kids who enjoy spicy and salty taste.
MRP : 200 ML Tetrapak - Rs. 12
1 Litre Tetrapak - Rs. 55
Retailers Margin (%) : 10% On MRP.
Distributor Margin(%) : 3% - 4% on MRP.
Dhruvil Shah | 27

5. Amul Lassi
Amul Kool Lassi is refreshing milk based natural drink. It is an easy to use delicious
drink that refreshes you immediately with goodness of nature.
Flavours Available : Rose Flavour
Mango Flavour
Packing Available : 200 ML Tetrapak and Pet Bottle
250 ML Tetrapak and Pet Bottle
1 Litre Tetrapak and Pet Bottle
Storage condition : Cool and dry condition with ambient temperature
Product Positioning : Amul Lassi – Chill kar Lassi Pi !
Refreshing delicious cool drink.
Target Audience : For all the age groups who want convenient tasty
natural drink on move or at home.
MRP : 200 ML Packing - Rs. 15
250 ML Packing - Rs. 20
1 Litre Packing - Rs. 65
Retailers Margin(%) : 10% On MRP
Distributor Margin(%) : 3% - 4% on MRP.
Dhruvil Shah | 28

Logistics and Supply chain Management of Amul
The Amul Model of dairy development is a three-tiered structured with the dairy co-operative
societies at the village level federated under a milk union at the district level and a federation of
member unions at the state level.
Establishment of direct linkage between milk producers and consumers by eliminating
middlemen.
Milk producers (farmers) control procurement, processing and marketing.
Step 1 : Milk Producers (Farmers)
Amul Logistic Chain Start with Milk Producers or Farmers Who Suppliers the milk as the raw
material. 15 Million milk Producers members available in India. In Gujarat 3.2 Million milk
producers available who supply the milk daily basis.
Step 2 : Village Dairy Co-operative Societies
Village Dairy Co-operative Societies Collect milk from the milk Producers or farmers of their
respective village and near by villages. Village dairy co-operative societies made immediate
payment to the milk producers or farmers according to milk fat and calories. There are total
1,44,500 village dairy co-operative societies available in india. In Gujarat total 16,914 village
dairy co-operative societies available.
Step 3 : District Milk Co-operative Union
District Milk co-operative union collect milk from village co-operative societies which covered
in their districts. There are total 184 district milk co-operative union available in india. In Gujarat
18 district milk co-operative union available. District milk co-operative union provide different
facilities to village dairy co-operative societies like rural health schemes, cattle feed, dividend on
share, extra bonus also provided.
Step 4 : State Co-operative Milk Marketing Federation
State co-operative milk marketing federation handle all the management at the state level. State
co-operative milk marketing federation collect milk from the district co-operative union
according to the district covered in the state. There are total 22 state co-operative milk marketing
federation in india. In Gujarat, Gujarat Co-operative Milk Marketing Federation handle the
management at state level. State Co-operative milk marketing federation also handle sales and
marketing of ready products in the state. These state co-operative federations having big hand
Dhruvil Shah | 30

behind increasing the increasing turnover of amul year by year. State co-operative milk
marketing federation also made distribution channel very effective so that availability of amul
products at everywhere including rural area also.
Step 5 : Production House
Production house got milk supply from state co-operative federation. In production house do
milk processing and make various products from the milk. There are various kind of products
amul made from these milk like Amul Milk, Ghee, Panner, Cheese, Butter, Ghee, Lassi,
Buttermilk, Ice Cream and many others products.
Step 6 : Depot
Depot is a place where produced stock of products stored. For Storing Ice Cream and Others
Frozen Products Cold storage depot also available. In the depot huge quantity of the stock stored.
Generally depot is near by production house so that storing for produced stock become easy.
 Manufacturing units to company depots using 9 and 18 MT trucks
 depots across major cities of India
 Frozen food-below 18C
 Dairy wet-0-4C
Step 7 : Wholesale Distributor
Wholesale distributor is middleman between retail outlets and company. Wholesale distributor is
purchase products from the company and supply to the retail outlets of their area. Generally one
wholesale distributor supply stock in 250 to 300 outlets. Amul Provide digital platform to
Wholesale distributor to manage their stock. Amul provide computer software login to their
wholesale distributor through which distributor can place order online and make payment
through RTGS. Amul also provide mobile application login to sales person of the distributor
because of that sales person not need to write order on pages he taken order through online
application and according to order bill automatically generated. So digital platform reduce the
workload of distributor.
 Network of over 5000 distributors
 The margins offered to the distributors range between 3-5%
 Wholesaler incentives – yearly set group targets, on achieving which they get some
amount on every additional kg sold
 Transport through insulated 3 and 5 MT TATA 407’s Truck.
Dhruvil Shah | 31

Step 8 : Retail Outlets
Retail Outlets is a place through which consumer purchase products. Retail outlets purchase
product to the wholesale distributor and sale to the consumer. Sales person of the Wholesale
Distributor come to the retail outlets for taking orders and after taking orders in same day or next
day stock delivered to the outlets. Retails have to made payment through cash or running date
cheque at the time of stock delivery. No credit provided to retail outlets. There some types of
retails outlets like amul parlour oulets, others parlours, provisio stores, grocery stores, restaurant,
fast foods, canteens and malls.
 Transport through rickshaws tempo according to the beat plan
Step 9 : Consumer
Consumer purchase products from the retail outlets on cash basis. In amul products some times
chain amount problem happen so that amul started smart payment card through consumer can
make payment but recharge it through amul parlours but this facility now stated in few cities and
limited to make payment only on amul franchise parlour. Amul also provide replacement facility
to their consumer if the purchased product not eatable. Amul also provide replacement facility to
their retail outlets if product expired.
Conflicts Among channel members
• Ownership of assets
• Stocking issues
• Replacement of products
• Credit policy
• Packaging
• Replenishment
• Margins
Dhruvil Shah | 32

Project Work
Context of the Organization
I was supposed to work with the distributors of Amul in North Ahmedabad and Gandhinagar,
Find out issues coming up in sales of Amul Beverange range products and increase sales of
Amul.
Project Introduction
In Summer, the demand of cold beverages increases. Hence, I was supposed the push the sales of
Amul Beverage Range Products which include Amul kool Flavored milk, Amul Masti
Buttermilk, Amul Lassi, Amul Koko & Café Can and Amul Pro Drink by increasing the retail
penetration. I was supposed to work with two distributors of Amul dairy product in North
Ahmedabad and Gandhinagar. The first one is ‘Shree Pashwanath Traders’ which is located in
Sabarmati, Ahmedabad and another one is ‘Ashok Marketing’ which is located in Sargasan,
Gandhinagar.
Motivation Behind the Project
Gujarat Co-operative milk marketing federation limited wishes to capture the market of
beverages through its high quality and low priced Amul beverage range products. In summer, the
demand of these products rises. As a result, there is good chance of capuring the retail market for
the same, Hence, the project was undertaken.
Objectives of the Project
 The main objective of the project is to increase retail penetration of Amul beverage range
products.
 To find the problems in selling of Amul beverage range product and find out
improvement areas.
 Other objective of the project is to competitive analysis and to know how company
beverage products perform in competitive market.
Approach of Work
I was supposed to make market visit and understand the structure of FMCG Sales. I was required
to convince those retail outlets who purchase Amul Products but Beverages not included. I was
required to find potential retail outlets where Amul product not supplying and convince those
potential outlets to keep Amul beverage and others products of Amul. I was also required to find
the problems in selling of Amul beverage products and find improvements area. I was also
required to replacement issues in beverages.
Dhruvil Shah | 33

Market Visit
I have visited large number of retailers on my market visits with salesmen of ‘Shree Pashwanath
Traders’ and ‘Ashok Marketing’. The Salespersons would take orders from retailer for Amul
Products while I would discuss with them about sale of Various Amul Products with Special
Focus on Beverages.
Our Promotion against various points kept by retailers
1. Improper display of Amul items at the retail outlet :
I visited various outlets and found that except a few retail outlets and Amul preferred
Outlets, most of the outlets do not display the Amul products properly on their retail
outlets. All retail shops keep Amul products in refrigerators provided by Pepsi or Coca-
Cola or their own personal refrigerator. There are just few retailers who complain that
they are threatened by Pepsi Or coke for keeping products of other companies. As a
result, they keep Amul products behind other products of Pepsi or Coke. Hence, Amul
products are not visible and face problem of slow sales. Many retailers say that they do
not have much space in their refrigerator. But still, this is an issue which can be solved.
We suggest them to keep a few pieces outside as Amul products with Tetra-Pack do not
require refrigerator and have longer shelf life. They can keep their remaining products
elsewhere in the refrigerator brhind other products. We suggest them the best display for
all the Amul products such that they are clearly visible the customers.
2. Location of Shop
Amul Beverages are chiefly consumed by students and youth. There are certain shops
which are located in residential areas. These retailers are not interested in keeping 200ML
packs of Amul beverages. But this is misconception. We promote 1 litre packets of Amul
beverages along with small packs under the brand name of Amul and its very fast sales in
summer season. This way we try to convince them.
3. Low Margin
Retailers feel that Amul doesn’t have much margin on any of its product. Also, given the
fact that Amul works on Best-cost-strategy producing best Quality at low prices, the
margin in the entire value chain is very low. Hence, new retailers feel afraid in keeping
Amul products. For such retailers, we promote the quality of Amul products and its brand
name. We ask them to start by keeping 5-6 pieces of each of the Amul beverages which
make a total bill of around 200 rs. at the retail shop. This small amount of investment risk
is taken by retail shop only to later realize that Amul products do not stand for many days
in their shelf and are sold faster than other FMCG products. Once they start keeping, they
continue.
Dhruvil Shah | 34

4. Competition from locally prepared lassi and Buttermilk
Many retailers say that consumers demand the lassi and buttermilk prepared locally
which is thicker in texture and tastes better. In order to solve this issue, we promote the
flavour in Amul Lassi which is Rose and commonly loved by consumers as they use
similar rose flavour of ‘Roohafza’ at their homes for flavoured milk. The local lassi
doesn’t have any specific flavour. Also the shelf life of tetra-Pack of amul buttermilk and
lassi are 4 months as compared to 2 days of locally prepared beverages. One point which
forces us into serious discussion with the retailers is that margin of locally produced
beverage is more than 5 Rs. On a 200 ML pack. But again, it is the brand name of Amul
which we strongly project which can help in higher sale in terms of volume to overcome
the low value.
5. Space within the refrigerator
A retailer make a simple excuse of lesser space within his refrigerator. But then, we
educate him that Amul products can be kept outside the fridge for display. He requires to
keep only a few inside the refrigerator for few consumers. Rest can be kept outside. Most
retailers do not arrange items within their refrigerator and hence face space shortage
issue, which is not an issue at all.
Dhruvil Shah | 35

Achievements
 GANDHINAGAR (ASHOK MARKETING)
Following is list of retail outlets which never kept Amul product before and
newly started by us for selling Amul beverages and other products.
1. Devshree Parlour
Shop no. 6, Swagat City Complex, Adalaj
Outlet type : Parlour
Order Details(beverages) : Amul kool Flavored Milk : 30 Qty
Butter Milk : 27 Qty
Lassi : 32 Qty
Can : 30 Qty
2. Akshar Dairy Parlour
Near adalaj Vav, Adalaj
Outlet Type : Parlour
3. Jay Ambe Provision store
Adalaj Road, Adalaj
Outlet Type : Provision Store
Lassi : 10 Qty
4. Bajarang Parlour
Adalaj Road, Adalaj
Lassi : 5 Qty
5. Chamunda Pan Parlour
Adalaj Road, Adalaj
6. Kalpsar Pan Parlour
Adalaj Road, Adalaj
Dhruvil Shah | 36

7. Jay Mataji Parlour
Opposite Adalaj Wav Water Tank, Adalaj
Butter Milk : 6 Qty
Lassi : 6 Qty
Can : 12 Qty
8. Bajarangi Restaurant
Adalaj Road, Adalaj
Outlet type : Restaurant
Lassi : 14 Qty
9. Jay Ambe Provision & Coldrink
Adalaj Road, Adalaj
Outlet type : Provision Store
10. Ambika Pan Parlour
Adalaj Road, Adalaj
Order Details(beverages) : Butter Milk : 27 Qty
Lassi : 27 Qty
11. Ambika Dalvada Centre & Parlour
Near Maharaja Hotel, Adalaj 4 Roads, Adalaj
12. Umiya Pan Parlour
Near Maharaja Hotel, Adalaj 4 Roads, Adalaj
Lassi : 27 Qty
Can : 18 Qty
13. Yogi Provision Store
Adalaj Road, Adalaj
Dhruvil Shah | 37

14. Khushi Pan Parlour
Chiloda Circle, Chiloda
Order Details(beverages) : Lassi : 27 Qty
Can : 30 Qty
15. Anand Pan Parlour
Chiloda Circle, Chiloda
Lassi : 27 Qty
16. Ria Parlour
Chiloda circle, Chiloda
Lassi : 27 Qty
17. Jay Bhagwati Sweet & Namkeen
Chiloda cir cle, Chiloda
Outlet Type : Sweet & Namkeen Shop
18. Patel Parlour
Lassi : 27 Qty
19. Khodiyar Pan Parlour
Lassi : 27 Qty
20. Bhagwati Pan Parlour
Dhruvil Shah | 38

21. Gayatri Parlour
22. Surya Parlour
Vavol Village
23. Jay Khodiyar Provision Store
Near Bhoominath Society, Vavol Village
Lassi : 14 Qty
24. Maa Parlour
Madhavan Apartment, Opp. Salin 2, Vavol Village
Lassi : 13 Qty
25. Gajanand Parlour
Satya Circle, Opp. Main Railway Fatak, Vavol Village
26. Jay Somnath Parlour
Sargasan circle, Sargasan Village
27. L. B. Kirana & Provison Store
Mahavir Hill Society, Near Rajdhani Petrol Pump, Koba Highway, Koba
Dhruvil Shah | 39

28. Ashapura Provision Store
Mahavir Hill Society, Near Rajdhani Petrol Pump, Koba Highway, Koba
29. Deepika Super Market
Koba 4 Roads, Koba
Lassi : 15 Qty
30. New Lalsot Pan Parlour
Koba Highway, Koba
Retail Penetration Amul Beverage Range Products in Gandhinagar
Above Given 30 new Outlets added by me in Gandhinagar area on the beat of ashok
Marketing Distributor
Total No. of outlets which purchase Beverages & Other Products (Now)
277 Outlets
Total No. of Outlets which purchase Beverage & Other Products (Before)
247 Outlets
Total Selling of Beverage by Products in New Outlets (Gandhinagar)
Amul kool Flavored Milk : 675 Qty
Lassi : 298 Qty
Can : 90 Qty
Dhruvil Shah | 40
12%Increase

 Sabarmati (Shree Parshwanath Traders)
Following is list of retail outlets which never kept Amul product before and
newly started by us for selling Amul beverages and other products.
1. Dharmesh Pan Parlour
Near Sabarmati Bus stop, Sabarmati
2. Anupam Pan Parlour
D’Cabin
3. Maharaj Pan Parlour
IOC Road
Order Details(Beverages) : Amul kool Flavoured Milk : 30 Qty
Buttermilk : 27 Qty
Lassi : 32 Qty
4. Pramukh Pan Parlour
IOC Road
5. Patel Pan Parlour
IOC Road
6. Royal Pan Parlour
New CG Road
Buttermilk : 27 Qty
Dhruvil Shah | 41

7. Vaishali Pan Parlour
New CG Road
8. Jay Shree Jogmaya Kirana Store
Bhagwati Nagar, Tragad, Chandkheda
Outlet Type : Grocery Store
Lassi : 16 Qty
Following is list of Current retail outlets which never Amul product before
But New Stock Keeping unit of Beverages started by us.
1. Gulmahor Enterprise
Motera Road
Outlet Type : Grocery Store
Order Details(Beverages) : Can : 06 Qty
2. Brhmani Dairy
Motera Road
Outlet Type : Dairy
3. Shiv Trading Company
Motera Road
4. Om Dairy Parlor
Motera Road
5. Cakes & Backs
Motera Road
Order Details(Beverages) : Lassi : 16 Qty
Can : 18 Qty
Dhruvil Shah | 42

6. Umiya Dairy Parlour
Motera Road
Order Details(Beverages) : Amul Kool Flavoured Milk : 15 Qty
7. Krishna Dairy Parlour
Motera Road
8. Keshar Dairy Parlour
Motera Road
9. Lalit Parlour
Motera Road
Order Details(Beverages) : Amul Kool Flavored Milk : 30 Qty
10. Ramdev Kirana Store
Motera Road
Outlet Type : Kirana Store
Order Details(Beverages) : Amul Kool Flavored Milk : 15 Qty
11. Ganesh Sweet
Motera Road
Outlet Type : Sweet Shop
12. Om Parlour
Motera Road
13. Shri Hari Dairy
Chandkheda
Outlet Type : Dairy
Order Details(Beverages) : Amul Kool Flavour Milk : 30 Qty
Dhruvil Shah | 43

14. Sai Nath Provision Store
Chandkheda
Order Details(Beverages) : Amul Kool Flavour Milk : 30 Qty
15. Brahmnai General Store
Chandkheda
16. Jainam Gruh Udhyog
Chandkheda
Order Details(Beverages) : Amul Kool Flavoured milk : 30 Qty
17. Shri Chamunda Dairy
Chandkheda
Outlet Type : Dairy
Order Details(Beverages) : Buttermilk : 27 Qty
18. Khim Jamata Provision Store
Chandkheda
19. Shiv Shakti General Store
Chandkheda
20. Jay Chaher Provision Store
Chandkheda
21. Sudha Provision Store
Chandkheda
Dhruvil Shah | 44

22. Shree Charbhuja Provision Store
IOC Road
23. Shree Shakti Parlour
IOC Road
24. Royal Pan Parlour
IOC Road
25. Brahmani Kirana Store
IOC Road
26. Krishna Dairy Parlour
D’Cabin
27. Radhe General Store
D’Cabin
Outlet Type : Provision store
28. Sundar General Store
D’Cabin
Outlet Type : Provision store
29. Vishwa Parlour
D’Cabin
Dhruvil Shah | 45

30. New Gayatri Parlour
D’Cabin
31. Raj Kirana Store
New CG Road
32. Shivshakti Provision Store
New CG Road
33. Shri Saji Krupa Dairy
New CG Road
Outlet Type : Dairy
34. Bhagyalakshmi Dairy
Ramnagar
Outlet Type : Dairy
Lassi : 08
Dhruvil Shah | 46

Analysis
Total 38 New Outlets started by us.
Parlour,28
Provision Store,8
Sweet shop,1Restaurant,1
Total Selling of Beverage Products in New Outlets. (Quantity Wise)
Kool Flavoured Milk BM Lassi Can
0
200
400
600
800
1000
1200
1400
1178
534
467
221
Total Sales
Dhruvil shah | 47

Amul Kool Flavoured Milk
Total Sales of Amul Kool Flavoured Milk is 1178 Quantity.
63%
25%
5%
4%3%
Amul Kool Flavoured Milk
Parlour Provision Store Grocery store Dairy Restaurant
Amul Masti Buttermilk
Total Sales of Amul Masti Buttermilk is 534 Quantity.
76%
13%
5%5%
Amul Masti Buttermilk
Parlour Provision Store Grocery store Dairy
Dhruvil Shah | 48

Amul Lassi
72%
18%
6%
3%2%
Amul Lassi
Parlour Provision Store Grocery store Restaurant Dairy
Amul Can
71%
12%
14%
3%
Amul Can
Parlour Provision Store Sweet Shop Dairy
Dhruvil Shah | 49

Displays at retail stores:
I visited several stores and talked about display of Amul products. Some of the products had a
very good display which can be seen below:
1. This is an example of a beautiful display. It shows
that Amul beverages can be displayed right on the
corner of the main counter where the shopkeeper
deals. It helps in informing the consumer that Amul
beverages are available at the shop. The display
doesn’t even hide the main dry products which are
placed within the cabinet. Hence, it clearly shows
almost all the products which the retailer has for
selling including Amul.
2. This is yet another beautiful way of
informing the consumer that Amul products
are available at the shop. The shopkeeper
has stuck a piece of paper on which it is
written that Amul milk and curd are
available at the shop. Amul doesn’t provide
refrigerator so these refrigerators which are
owned personally by the shopkeeper are
used for storing Amul products. On such
refrigerators, paper can be stuck.
3. Decorating one or two pieces in the
Cadbury refrigerator is an example of good
display which the retailers can use. In this
way, while the consumer wishes to buy
chocolates, he comes across Amul
beverages. This also helps in attracting
children towards the favourite brand Amul.
Dhruvil Shah | 50

Key Learning:
I learned the following things through my market visits:
 Structure of FMCG sales: In the industry of Fast Moving Consumer Goods (FMCG),
the products are transported from the plant of manufacturing to the district level depot
from where they are sent to the various distributors and then to the retail outlets.
 Assessing Market potential: The correct potential of the market is required to be
assessed for your product. Earlier I did the mistake of underestimating the potential of the
market. The supply of Amul Buttermilk and Amul Lassi at almost all the shops, created a
misconception as if my target products have already reached their target customers. But
then, there were certain shops which were still left to be covered. These were shops
which were less motivated in keeping Amul because it doesn’t provide refrigerator. Then
there were others who were selling Frooti from their juice shops but not Amul. Hence,
these shops were required to be targeted and convinced for keeping Amul buttermilk. I
assessed the market based on several other beverages which shopkeeper were selling like
Frooti.
 Understanding Retail Penetration: By asking more and more retailers to keep Amul
products and convincing them to sell Amul Buttermilk and Amul Lassi, I could
understand how retail penetration is done in the FMCG industry.
 New market creation: FMCG industry is highly competitive. Every company competes
to enter a new market. But the one entering first in any new market sets the standard and
enjoys the benefit of capturing market share. While selling the Amul products, I
suggested a totally new market area inside Madri Industrial Area where my competitors
were either quite dormant or had not entered.
 Market Segmentation: At the bottom level sales, you require to segment your market
correctly especially on geographical grounds. I learned how the areas were divided which
could save the cost on transportation and labour while not leaving any retailer untouched
on the route. The routes have to be optimized keeping profit maximization as the goal.
Dhruvil Shah | 51

 Right promotion as per the customer: Promotion and sales pitch cannot be generalized
across different segments of customers. The pitch has to be modified based on the type of
customers. For example, if it is an area where end consumers are villagers, the retailer or
customer has to be convinced keeping the needs of villagers and demand of the small
retail shop owner in mind. On the other hand, if the shopkeeper is a big retail store right
in the heart of the city, the pitch has to be modified accordingly.
 Understanding the competition: Amul Buttermilk and Amul Lassi faces stiff
competition from locally prepared lassi and chach at retail stores and sweets shop. The
profit margin for these locally prepared beverages are as high as 60-70% as compared to
Amul’s 10% margin. But Amul products have a greater shelf life, better quality and brand
perception.
 Targeting the right customer: The customer to be targeted must be properly
understood. There were instances when we targeted customers who were not even having
refrigerators simply because they were having a very good perception of Amul brand. But
we failed to realize that even if the retailer was having a good brand perception of Amul,
he could not keep a majority of Amul products which require refrigeration.
 Understanding the needs of the customers: There were some retailers who had been
selling Amul for long incurring good sales while there were others who we had newly
started. Both of these kinds of retailers required support of Amul for advertisement.
Hence, it was our duty to present danglers and posters to them which they could hand on
their shops and inform the audience about the availability of Amul products with them.
 Understanding the genuine demands of the customers: There were a few retail shops
which were asking for demands which could not be fulfilled under any condition. Some
were asking for replacement of expired products while there were others who wanted
more margin than any other beverage in the industry. Amidst all these demands, I learned
that an organization must not forget its vision for which it is working. When Amul was
established by Dr. Kurien, it aimed at providing the right value to the farmers for their
Dhruvil Shah | 52

milk supply and provide high quality products at affordable prices to the end consumers.
Increasing margin further would mean making products expensive for the end consumer
which could not be done.
 Customer retention: This is one of the very important point which needs to be taken
care of especially when the industry and market in which you are working is highly
competitive. For this, it is extremely essential to earn the trust of the customer. Honesty is
the biggest strength of the marketer which he can use as the Ace of Spades to win the
customer loyalty and retention. For example, the Menaria Store was giving order of so
many Amul products which I knew he won’t be able to sell given the target audience for
the products and the consumers living in his surrounding. Therefore, we reduced his
order of 4 Amul Kool case to 2 so that he could sell easily. Otherwise, later he won’t
have given order for any more Amul products as he wouldn’t have been able to sell those
extra 2 cases. We compromised our short-term sales for a long time customer retention
and sales for long time in future.
 Display in a Retail outlet: In Retail Marketing, the display of products in the retail store
matters a lot to the way a customer observes and perceives the product. Every company
fights for the front row display of its products at the retail store. Every company wants
that his products appear before other products to the customer. For this purpose, it is the
job of the marketer that he ensures that the products are very well displayed at the shop
such that the customer can easily see them. While working on this project, I asked
retailers to keep a few pieces of Amul Buttermilk and Amul Lassi right in front on the
counter so that customers can know about the availability of the products. Moreover, it
helps in spreading awareness about the product.
 Display advertising in a retail store: During my work with Harekrishna Marketing
distributors, I also took up the task of displaying danglers in a retail outlet. This helped
me learning about the consumer perception and best location suitable for display ads.
Dhruvil Shah | 53

 Negotiation skill: I negotiated with the retailers to start selling Amul products even
though it had lesser margin than its competitors and Amul doesn’t provide refrigerator
like other companies.
 Convincing skill: This is one skill I learned during the course of four weeks of the
project. I understood how to convince the customers and sell the product.
Dhruvil Shah | 54

Competitive Study
Amul Kool Flavoured Milk Vadilal Power Ship
Flavoures : Rose Badam
Keshar Elaichi
Elaichi Rose
Badam
Chocolate
Packing : 200 ML Pet Bottle 180 ML Glass Bottle
200 ML Glass Bottle
Shelf Life : 180 Days 20 Days
MRP : Rs. 20 Rs. 20
Retail Margin: 11% on MRP 20% on MRP.
Others Local Competitors in Our Working Area
 Madhur Dairy
 Jain Dairy Products
 Mahi
 Others local dairy who sale own made Lassi & Buttermilk
Dhruvil Shah | 55

Bibliography and References
 Amul.com. "GCMMF :: Amul - The Taste of India | Bread Spread Producers in India | Milk
Chocolate Milk Health Drinks Manufacturers of India | Powder Pasturized Milk in India | Pure Ghee
Manufacturers | Pasturized Butter Producer in India." GCMMF :: Amul - The Taste of India | Bread
Spread Producers in India | Milk Chocolate Milk Health Drinks Manufacturers of India | Powder
Pasturized Milk in India | Pure Ghee Manufacturers | Pasturized Butter Producer in India. N.p., n.d.
Web. 23 June 2017. < http://www.amul.com >
 Welcome to nddb.coop. (n.d.). Retrieved June 23, 2017, from http://www.nddb.org/
 Read books, audiobooks, and more. (n.d.). Retrieved June 23, 2017, from https://www.scribd.com/
 OUR BUSINESS. (n.d.). Retrieved June 23, 2017, from http://vadilalgroup.com/
 Reference (n.d.). Retrieved June 23, 2017, from Mr. Himanshu Bhardwaj – Assistant Sales Manager
– Gujarat Co-operative Milk Marketing Federation, Ahmedabad.
 Reference (n.d.). Retrieved June 23, 2017, from Mr. Arun Karkera – Area Sales Incharge – Gujarat
Co-operative Milk Marketing Federation, Ahmedabad.
 Reference (n.d.). Retrieved June 23, 2017, from Mr. Rushabh Shah – AMUL Wholesale Distributor
Sabarmati, Ahmedabad.
 Reference (n.d.). Retrieved June 23, 2017, from Mr. Jayesh Patel – AMUL Wholesale Distributor
Sargasan, Gandhinagar.
 Reference (n.d.). Retrieved June 23, 2017, from Retailers – Sabarmati and Gandhinagar area.
Dhruvil Shah | 56

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