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PROJECT REPORT

ON

AUDIT OF AMUL PRODUCTS IN RETAIL


FORMAT
Submitted in accomplishment of requirement
Of the Award of the Degree
MASTER OF BUSINESS ADMINNITSTRATION
PROGRAM

Submitted By:
Praveen Kumar Jangra
Roll No. 510911042

DIRECTORATE OF DISTANCE LEARNING


SIKKIM MANIPAL UNIVERSITY
MANIPAL
STUDY CENTRE CODE:02734
ANNEXURE-A (cover page)
PLANET IT
41, Opp Police Station, Nr Aggarwal Dharamshala,
Najafgarh, Delhi – 110043
(Authorized Study Centre of)
SIKKIM MANIPAL UNIVERSITY
Directorate of Distance Education
Centre Code No. 02734

RETAIL AUDIT OF AMUL PRODUCTS IN RETAIL


FORMAT

Submitted by: PRAVEEN KUMAR


JANGRA
A project report submitted in accomplishment of
requirement of the Award of the Degree
Master of Business Administration Program
Of Sikkim Manipal University, INDIA.
Sikkim-Manipal University of Health, Medical and
Technological Sciences Distance
Education Wing Syndicate House
Manipal-576104
ANNEXURE-B (Student Declaration)

I hereby declare that the project report entitled Audit


Of Amul Products In Retail Format Submitted in
accomplishment of requirement of the Award of the
Degree Master of Business Administration Program to
Sikkim - Manipal University, India, is my original work
and not submitted for the award or any other degree,
diploma, fellowship, or any other similar title of prizes.

Place: New Delhi (Praveen Kumar Jangra)


Date: REG. NO. 510911042
ANNEXURE-C (Examiner’s certification)

The project report of Praveen Kumar Jangra, Title


Audit
Of Amul Products In Retail Format is approved and is
acceptable in quality and form.

Internal Examiner External Examiner


(Name, qualification and designation) (Name, qualification)

ANNEXURE-D (University study centre certificate)


This is certify that the project report entitled Audit Of
Amul Products In Retail Format Submitted in
accomplishment of the requirements for the degree of
Master of Business Administration of Sikkim Manipal
University of Health, Medical and technological
sciences, Praveen Kumar Jangra worked under my
supervision and guidance and that award of any other
degree, diploma, fellowship or other similar titles or
prizes and that work has not been published in any
journal or magazine.

Reg. No. 510911042 Certified


___________________________
(Guide’s Name and Qualification)
AMULINDIA LIMITED
DELHI and GURGAON

RETAIL AUDIT OF AMUL PRODUCTS IN


RETAIL FORMAT
SECTION-A

PROJECT PROFILE
• Industry background

• Dairy industry in India

• Executive Summery

• Project Brief

• Problem environment

• Competitive Situation

• Facts About Amul


• Present Position Of Amul In Delhi

SECTION B
The Project – Background &
Methodology

• Research Objective
• Information requirements – in detail and
source of information
• Research design –Alternatives and
choice
• Research instrument used
• Sampling Technique used &sample size
• Field work- method used for data
collection
• Analytical tools used
• Limitations
SECTION C
Analysis
• Sample profile
• Primary data tabulation & Interpretation
• Interpretation and findings
• Conclusions
• Suggestions
SECTION A

PROJECT PROFILE

• Industry background

• Executive Summery

• Project Brief

• Problem environment

• Competitive Situation

• Facts About Amul

• Present Position Of Amul In Delhi


INDUSTRY BACKGROUND

India with a population of 103 crores is potentially is


one of the largest consumer market in the world, with
urbanization and development of economy tastes and
interests of the people changes according as advance
nation. The milk and milk products are the basic
source of nutrition for the Indian population. The milk
products in urban areas are in good demand.

India has become the world's No. 1 milk producing


country, with output in 1999-200 (marketing year
ending March 2000) forecasted at 78 million tonnes.
United States, where the milk production is
anticipated to grow only marginally at 71 million
tonnes, occupied the top slot till 1997. In the year
1997, India's milk production was on par with the U.S.
at 71 million tonnes. The world milk production in
1998 at 557 million tonnes would continue the steady
progress in recent years (see Table 1). Furthermore,
the annual rate of growth in milk production in India is
between 5-6 per cent, against the world's at 1 per
cent. The steep rise in the growth pattern has been
attributed to a sustained expansion in domestic
demand, although per capita consumption is modest

at 70 kg of milk equivalent.

Milk market in India


The dairy sector in the India has shown remarkable
development in the past decade and India has now
become one of the largest producers of milk and
value-added milk products in the world. The dairy
sector has developed through co-operatives in many
parts of the State. During 1997-98, the State had 60
milk processing plants with an aggregate processing
capacity of 5.8 million litres per day. In addition to
these processing plants, 123 Government and 33 co-
operatives milk chilling centres operate in the State.
With the increase in milk production. Maharashtra
now regularly exports milk to neighbouring states. It
has also intiated a free school feeding scheme,
benefiting more than three million school children
from over 19,000 schools all over the State.

Dairy Industry in India

More than 2,445 million people economically active in


agriculture in the world, probably 2/3 or even more ¾
of them are wholly or partly dependent on livestock
farming. India is endowed with rich flora & Fauna &
continues to be vital avenue for employment and
income generation, especially in rural areas. India,
which has 66% of economically active population,
engaged in agriculture, derives 31% of Gross
Domestic Product GDP from agriculture. The share of
livestock product is estimated at 21% of total
agricultural sector.
Contribution of live stock sector to gross domestic
product
(Percentage contribution)

1950-51 1990-91
63.5 67.0
12.0 16.0
4.1 3.1
1.3 0.3
16.5 10.0

Live stock populations:


Number of animals (in thousand)
(Source: production yearbook 1995 /FAO statistics
division)

Sheeps Goats Pigs Chickens Cattle


45000 119242 11780 435 194655
Buffaloes Horses Mules Camels
79500 990 1742 1520

(Source Indian Dairy man, 50:1998)

Cattle Buffalo Total (1996)


(millions)
196 80 276
0.68% / year 0.75% / year

World (1996)
1320 151 1471
0.64% / year 0.87% / year

In India In World
28 breeds of cattle 1997 520.6 mt 5.5-0.75%
.2020.620 to 650 mt.
7 breeds of buffalo

Milk Production
1950 – 17 million tonnes
1996 – 70.8 million tonnes
1997 – 74.3 mT
(Projected) 2020 – 240 mT
Expected to reach- 220 to 250 mT – 2020
India contributes to world milk production rise from
12-15 % & it will increase upto 30-35% (year 2020)
Average milk production / year

America 6874 Kg/ year


Denmark 6223 Kg/year
Holland 5751 Kg/year
India 552 Kg/year
• Average Productivity
• 2.4 kg/day or 732 kg/lactation/cow

China: 1600 kg/lactation


America 7200 kg/lactation

Percapita availability:
Recommanded – 210 gm
India

1950 132 gm
1997 214 gm
2020 290 gm

India contributes 35% of total Asian milk


Dairy Industry profile 1997

Human Population 953 million (70 million


dairy farmers)
Milk production 74.3 million tonnes (203.5
million 1 pd)
Average annual growth rate 5.6%
(1996-2000)
Per capita milk availability 214 gm/day or 78 kg/year
Milch animals 57 million cows;
39 million buffaloes
Milk yield per breedable bovine in milk 1,250kg
Cattle feed production (organized sector)1.5 million
tonnes
Turnover of veterinary pharmaceuticals Rs 550
crores
Dairy plants throughout 20 mlpd
Throughout as percentage of total milk 10
output
Value of output of milk group (1994-95) Rs 50,051
(Based on producers price) crores
Value of output of dairy industry (Based Rs 105,000
on retail price) crores

Projected milk production at different rates of annual


growth 1995 to 2000

year @5% @5.5% @6%


1995 66.3 66.3 66.3
1996 69.3 70.0 70.2
1997 73.1 74.0 74.4
1998 76.7 78.0 78.8
1999 80.6 82.3 83.5
2000 84.6 86.8 88.5

Milk Composition
Sr. Constituents Buffalo Cow Goat Liquid
no skimmed
milk
1 Moisture (gm) 81.00 87.50 86.80 92.10
2 Protein (gm) 4.30 3.20 3.30 2.50
3 Fat (gm) 6.50 4.10 4.50 0.10
4 Minerals (gm) 0.80 0.80 0.80 0.70
5 Carbohydrates 5.00 4.40 4.60 4.60
(gm)
6 Energy calories 117.00 67.00 72.00 29.00
(kcal)
7 Calcium (mg) 210.00 120.00 170.00 120.00
8 Phosphorus 130.00 90.00 120.00 90.00
(mg)
9 Iron (mg) 0.20 0.20 0.30 0.20

Indian Buffaloes: (Dairy business Directory 1996)


Buffaloes are classified into two categories;
1) reverine (depending upon variation in their habitat
& genome)
2) swamp
Swamp buffaloes: - 48 chromosomes
South east asian countries
Stocky animals, marshy land habitat
River Buffaloes: - 50 chromosomes
- massive in size and curled horns
- Prefer to enter clear water

World’s Buffalo population:


147 million
about 142 millions in Asia & Pacific

India:
leading most buffalo populated country
78 millions most of reverie

Milk production: About 95% of world buffalo milk (45.3


million tones) is produced in Asia &Pacific, while
64.4% is produced in India (FAO.1992)
From 1950 to 1992 milk production in the world
increased by 4.26%
The % of total bovines slaughtered;
Total bovine slaughtered (%)
World 17.1 to 17.4% or - 1.6% per annum
India 15% per annum
Asia 6.6%
Increasing trend of buffalo population in most of the
Asian countries in Brazil and Italy
BREEDS
Classified on phenotypic & geographic locations;
Cockril (1982) = Buffalo river type; two sub groups;
1. Horns are closed and set close to head & are down
swept ;eg. Murrah, Ravi, Mehasana, Jaffarabadi,
Sambalpur
2. Horns are sickle shaped and unswept: e.g.
Bhadawari, Kalahandi, Kanara, Manda, Nagpuri,
Pandharpuri, Surti, Tarai & Toda

Breeds of Buffaloes of Indian Origin and Breeding


Tracts:

Group Breed Breeding tract


Murrah Murrah Rohtak, Jind,Hisar, Bhiwari,
type Nili Ravi Sonepat
(Hariyam)
Ferozepur (Punjab)
Gujarat Surti Kaira and Baroda
Jaffarabadi Kutch, Jungarh & Jamnagar
Mehsana dist
Mehsana, sabarkantha,
Banaskantha Dist.
Uttar Bhadawari Bhadawari estate, Beh Tehsil in
pradesh Tarai Agra, Gwalior & Etawah dist.
Tarai region of U.P.
Central Nagpuri Nagpur, Akola, Amravati dist.
India Pandharpuri South maharashtra, west A.P.,
Kalahandi north Karnataka Hilly region of
Sambalpur Andra Pradesh and Orissa
Bilaspur dist.
South Toda Nilgiri Hills
India South KanaraWest coast in Kerela

Buffaloes found in the north –eastern states and the


eastern coastal region of India & in China South east
Asian countries e.g. Philippines, Thailand, Malaysia,
Vietnam, Srilanka, Burma, Laos, Kampuchea,
Bangladesh etc. have been classified as swamp
buffaloes on the basis of their genetic constitution
(2n=48) & natural habitat.The breeds includes in
these groups are Manda & Palakhemundi.

Production performance
Growth:
The average birth wt.(Indian buffaloes) low 21 kg
High 41 kg
Higher in male calves than in females
Average daily gain of 548 gm between 3-6 months
404 gm between birth to 36
months
Body weight at first calving- ranges from
367 kg (Dharwati) to
531 kg (Nili Ravi)
Higher growth rate in reverine breeds than swamp

MILK PRODUCTION

Production performance of different breeds of


Buffaloes:

Age at 1st Lactation. Lactation


calving Yield (kg) Length (days)
(months)
Buffalo Avg. Range Avg. Range Avg (Range)
Murrah 43.0 39.9- 1850 1476- 315(267-365)
54.5 2515
Nili Ravi 42.0 41.4- 1765 1596- 2808 (09)
47.3 2808
Surti 39.0 26.5- 1364 1304- 313(300-373)
45.0 1693
Bhadawari 46.0 44.3- 1181 - 276 (-)
54.2
Nagpuri 48.0 44.3- 1103 926- 270 (-)
55.6 1175

Reproduction Performance: -
Most of the buffaloes are considered to be seasonal
breeds with maximum calving taking place from July
to November in almost all breeds
Buffaloes come in oestrus in cold month and are sub-
fertile during hot month
Sub-fertility-> due to poor thermoregulaion in
buffaloes and
Poor nutrition -> poor heat symptom-low heat
detection (only ligno-cellulosic material straw /dry
roughages)

Calving interval Dry period Service period


(days) (days) (days)
Murrah 454 148 133
Nili Ravi 530 198 211
Surti 410 165 103
Bhadawari 460 156 -
Nagpuri - - 98
Milk Marketing in India

Marketing is about wining in the new environment .It


is about understanding what consumer wants and
supplying it more attractive than competitors and the
maximum satisfaction to the consumer.

Marketing is the social process by which individuals


and groups obtain what they need and want through
creating and exchanging products and value with
others.
Kolter
Marketing is the management process that identifies,
anticipates and satisfies customer requirements
profitably.
The Chartered Institute of Marketing (CIM).

The consumer market can be identified as the market


of products and services that are purchased by
individuals as house –hold for their personal
consumption and at times for institutional use.
Consumer is a broad label for any individuals or
households that use goods and services generated
within the economy. The concept of a consumer
occurs in different contexts India ranks first in the
Nielsen Global Consumer Confidence survey
released in May 2010. “India is one of the fastest
growing markets in the world and the current
consumer belief that recession would soon be a thing
of the past has filled Indians with confidence,”

The BMI India Retail Report for the third-quarter of


2010 released in May 2010 forecasts that the total
retail sales will grow from US$ 353 billion in 2010 to
US$ 543.2 billion by 2014.
Butter in India and World

Butter was probably first created accidentally when


whole milk carried in skin bags was carried by
horseback and naturally "churned" while traveling
over rough terrain. The first documented mention of
butter making was in the sacred songs of the dwellers
of Asiatic India, dating back to 1,500-2,000 B.C.E.
There is historical mention of ancient tribes creating
primitive churns by horizontally agitating cow, yak and
horse milk. Butter back then was not only eaten, but
used as an illumination oil, for medicinal purposes
and also as skin coating to insulate the tribe members
from the harsh winter cold.

Statues of Vishnu and Krishna are ritually anointed


with two intensely sacred mixtures of five substances,
one called pançamrita: milk, curds, ghee, honey, and
sugar, and the other "the five products of the cow":
milk, curds, ghee, urine, and dung. Both of these can
be used to purify people who have committed
temporarily polluting offenses, or as antidotes to
poison and disease. The lamps that light the holiest
places in Hindu temples are wicks burning in ghee --
as are the lamps swung in circular motions before the
images of various deities, or lit at the great Festival of
Lights in honor of Lakshmi and Rama.
Butter is a typical consumer product purchased by
individual and institution for culinary use. The Butter
market is facing a cutthroat competition and many
companies are floating the market with their products
in different brand names .In such a situation different
factors that influence the customer choice for butter
are taste, quality, image, easily availability and the
product cost of advertisement.

Ah, butter! Who can possibly not like that tastiest of all
treats? And yet, popular as that dish is today, it took
almost 3000 years of food evolution for pizza to reach
its current fancy state.

Butter Industry has a history as long as milk


production itself with records of its
Manufacture and uses dating back thousands of
years. Apart from its food uses, ancient references
point to a role for butter in medicine, cosmetics and
even sacrificial worship.

The famous German dairy scientist of the nineteenth


and early twentieth centuries, Benno Martini (1836-
1923) studied the ancient dairy industries and wrote
of the making and uses of butter as far back as 2000
BC. His works refer to the making and use of butter
by early Indians of Asia, Hebrews, Arabs, Egyptians,
Persians, Greeks and Romans.

This is the secret name of Butter:


"Tongue of the gods," "navel of immortality."
We will proclaim the name of Butter;
We will sustain it in this sacrifice by bowing low.
These waves of Butter flow like gazelles before the
hunter...
Streams of Butter caress the burning wood.
Agni, the fire, loves them and is satisfied.
The ancient dwellers of India chronicled the earliest
traditions relating to butter-making, dating back to
1500-2000 BC when Hindus of that time gave young
married couples 'a bridal feast' consisting of milk,
honey and butter.

In later centuries, butter became a tradable


commodity, with butter sourced from India being
brought to ports in the Red Sea. In the 12th century,
Scandinavian countries were regularly exporting
butter.

Records also indicate a 17th century practice of


storing butter underground, often for years. Later
writings suggest this practice was not always
successful and it was discontinued.

Today, butter is available in many forms - unsalted,


reduced and low salt, cultured butter, ghee, dairy
blends, reduced fat dairy spreads and low fat dairy
spreads. The different types of butter accommodate
all consumer needs.
So, marketing is both philosophy and technology .It is
philosophy because it provides concepts of various
marketing activities .It is technology because it
suggests ways and means for effective production
and distribution of goods and services in the market to
the maximum satisfaction to the consumer.

In this regard the marketing management will have to


apply the marketing technology in the conceptual
philosophy of a system in the process of system
analysis in the marketing management for effective
research can be defined. Systematic objective and
exhaustive study of task relevant to any problem in
the field of marketing.
EXECUTIVE SUMMERY

Amul, formed in 1946 , is a dairy cooperative movement in


India . It is a brand name managed by an apex cooperative
organization, Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF), which today is jointly
owned by some 2.41 million milk producers in Gujarat ,
India. It is based in Anand town of Gujarat and has been a
sterling example of a co-operative organization's
success in the long term. The Amul Pattern has
established itself as a uniquely appropriate model for
rural development. Amul has spurred the White Revolution

of India, which has made India one of the largest milk


producers in the world. It is also the world's biggest
vegetarian cheese brand.
Amul's product range includes milk powders, milk,
butter , ghee , cheese , chocolate , ice cream , cream , shrikhand , paneer ,
gulab jamuns , Nutramul brand and others. In January
2006 , Amul plans to launch India's first sports drink

Stamina, which will be competing with Coca Cola 's


Powerade and PepsiCo's Gatorade.

Amul is the largest food brands in India with an


annual turnover of 672 million US $ (in 2004-05).
Currently Amul has 2.41 million producer members
with milk collection average of 5.08 million litres/day.
Besides India, Amul has entered overseas markets
such as Mauritius , UAE, USA , Bangladesh , Australia , China ,
Singapore , Hong Kong and a few South African countries. Its
bid to enter Japanese market in 1994 had not succeeded,
but now it has fresh plans of flooding the Japanese
markets. Other potential markets being considered
include Sri Lanka.

Dr Verghese Kurien, the chairman of the GCMMF, is


recognised as the man behind the success of Amul.
Verghese Kurien
Dr. Verghese Kurien is the Chairman of India's
National Dairy Development Board, the National
Cooperative Dairy Federation of India and the Gujarat
Cooperative Milk Marketing Federation. His
professional life has been dedicated to empowering
the Indian farmer through cooperatives. The architect
of India's White Revolution, "Operation Flood", his
work has been recognised by the award of a Padma
Bhushan, the Ramon Magsaysay Prize for
Community Leadership, the Carnegie-Wateler World
Peace Prize, and the World Food Prize.
"We must build on the resources represented by our
young professionals and by our nation's farmers.
Without their involvement, we cannot succeed. With
their involvement, we cannot fail...
Those of us who are of our country's urban elite often
fail to recognise the tremendous resource that our
nation's farmers represent. It is that resource, linked
with the professional manager, that can return India to
its position as a surplus producer...
True development involves building the institutional
capacity to respond to new and diverse challenges; to
adapt, to innovate and to create newer institutional
forms ..."

Vergese Kurein sawa dream in which regardless of


origin, place of birth, occupation, or of language, each
Indian has an equal opportunity to share in the
nation's blessings, and to contribute to the nation's
progress.
Spanning nearly 40 years from 1955 to 1994, An
Unfinished Dream contains speeches of Dr Verghese
Kurien, Chairman of National Dairy Development
Board. The speeches are rich in their arguments,
incisive in their views and contain anecdotes that
illuminate, inspire and sometimes amuse. They rise
above the din of ideology and partisan rhetoric to
provide clear and refreshing insights on varied
subjects - Development, Technology, Operation
Flood, Marketing, and Empowerment of India's Rural
Producers.
I consider Verghese Kurien to be one of the world's
great agricultural leaders of this century. This
collection of his speeches, so aptly entitled An
Unfinished Dream, can help to light the way for those
who must carry on the battle to ensure greater food
security, prosperity, and peace to the world. I am
honoured to commend this book to those future
hunger fighters..."
Norman E Borlaug
1970 Nobel Peace Prize Laureate

GCMMF Today
GCMMF is India's largest food products marketing
organisation. It is a state level apex body of milk
cooperatives in Gujarat, which aims to provide
remunerative returns to the farmers and also serve
the interest of consumers by providing quality
products, which are good value for money. GCMMF
markets and manages the Amul brand. From mid-
1990's Amul has entered areas not related directly to
its core business. Its entry into ice cream was regarded
as successful due to the large market share it was
able to capture within a short period of time - primarily
due to the price differential and the brand name. It
also entered the Pizza business, where the base and
the recipes were made available to restaurant owners
who could price it as low as 30 rupees per pizza when
the other players were charging upwards of 100
rupees
Amul Butter Girl

The moppet who put Amul on India's breakfast


table
50 years after it was first launched, Amul's sale
figures have jumped from 1000 tonnes a year in 1966
to over 25,000 tonnes a year in 1997. No other brand
comes even close to it. All because a thumb-sized girl
climbed on to the hoardings and put a spell on the
masses.
Bombay: Summer of 1967. A Charni Road flat. Mrs.
Sheela Mane, a 28-year-old housewife is out in the
balcony drying clothes. From her second floor flat she
can see her neighbours on the road. There are other
people too. The crowd seems to be growing larger by
the minute. Unable to curb her curiosity Sheela Mane
hurries down to see what all the commotion is about.
She expects the worst but can see no signs of an
accident. It is her four-year-old who draws her
attention to the hoarding that has come up overnight.
"It was the first Amul hoarding that was put up in
Mumbai," recalls Sheela Mane. "People loved it. I
remember it was our favourite topic of discussion for
the next one week! Everywhere we went somehow or
the other the campaign always seemed to crop up in
our conversation."
Call her the Friday to Friday star. Round eyed,
chubby cheeked, winking at you, from strategically
placed hoardings at many traffic lights. She is the
Amul moppet everyone loves to love (including prickly
votaries of the Shiv Sena and BJP). How often have
we stopped, looked, chuckled at the Amul hoarding
that casts her sometime as the coy, shy Madhuri, a
bold sensuous Urmila or simply as herself, dressed in
her little polka dotted dress and a red and white bow,
holding out her favourite packet of butter.
For 30 odd years the Utterly Butterly girl has
managed to keep her fan following intact. So much so
that the ads are now ready to enter the Guinness
Book of World Records for being the longest running
campaign ever. The ultimate compliment to the butter
came when a British company launched a butter and
called it Utterly Butterly, last year.
It all began in 1966 when Sylvester daCunha, then
the managing director of the advertising agency, ASP,
clinched the account for Amul butter. The butter,
which had been launched in 1945, had a staid, boring
image, primarily because the earlier advertising
agency which was in charge of the account preferred
to stick to routine, corporate ads.
One of the first Amul hoardings
In India, food was something one couldn't afford to
fool around with. It had been taken too seriously, for
too long. Sylvester daCunha decided it was time for a
change of image.
The year Sylvester daCunha took over the account,
the country saw the birth of a campaign whose charm
has endured fickle public opinion, gimmickry and all
else.
The Amul girl who lends herself so completely to
Amul butter, created as a rival to the Polson butter
girl. This one was sexy, village belle, clothed in a
tantalising choli all but covering her upper regions.
"Eustace Fernandez (the art director) and I decided
that we needed a girl who would worm her way into a
housewife's heart. And who better than a little girl?"
says Sylvester daCunha. And so it came about that
the famous Amul Moppet was born.
That October, lamp kiosks and the bus sites of the
city were splashed with the moppet on a horse. The
baseline simply said, Thoroughbread, Utterly Butterly
Delicious Amul,. It was a matter of just a few hours
before the daCunha office was ringing with calls. Not
just adults, even children were calling up to say how
much they had liked the ads. "The response was
phenomenal," recalls Sylvester daCunha. "We knew
our campaign was going to be successful."

The Rebecca Mark favourite


For the first one year the ads made statements of
some kind or the other but they had not yet acquired
the topical tone. In 1967, Sylvester decided that giving
the ads a solid concept would give them extra
mileage, more dum, so to say. It was a decision that
would stand the daCunhas in good stead in the years
to come.
In 1969, when the city first saw the beginning of the
Hare Rama Hare Krishna movement, Sylvester
daCunha, Mohammad Khan and Usha Bandarkar,
then the creative team working on the Amul account
came up with a clincher -- 'Hurry Amul, Hurry Hurry'.
Bombay reacted to the ad with a fervour that was
almost as devout as the Iskon fever.
That was the first of the many topical ads that were in
the offing. From then on Amul began playing the role
of a social observer. Over the years the campaign
acquired that all important Amul touch.
India looked forward to Amul's evocative humour. If
the Naxalite movement was the happening thing in
Calcutta, Amul would be up there on the hoardings
saying, "Bread without Amul Butter, cholbe na cholbe
na (won't do, won't do). If there was an Indian Airlines
strike Amul would be there again saying, Indian
Airlines Won't Fly Without Amul.
There are stories about the butter that people like to
relate over cups of tea. "For over 10 years I have
been collecting Amul ads. I especially like the ads on
the backs of the butter packets, "says Mrs. Sumona
Varma. What does she do with these ads? "I have
made an album of them to amuse my grandchildren,"
she laughs. "They are almost part of our culture,
aren't they? My grandchildren are already beginning
to realise that these ads are not just a source of
amusement. They make them aware of what is
happening around them."
Despite some of the negative reactions that the ads
have got, DaCunhas have made it a policy not to play
it safe. There are numerous ads that are risque in
tone.
"We had the option of being sweet and playing it safe,
or making an impact. A fine balance had to be struck.
We have a campaign that is strong enough to make a
statement. I didn't want the hoardings to be pleasant
or tame. They have to say something," says Rahul
daCunha.
"We ran a couple of ads that created quite a furore,"
says Sylvester daCunha. "The Indian Airlines one
really angered the authorities. They said if they didn't
take down the ads they would stop supplying Amul
butter on the plane. So ultimately we discontinued the
ad," he says laughing. Then there was the time when
the Amul girl was shown wearing the Gandhi cap. The
high command came down heavy on that one. The
Gandhi cap was a symbol of independence, they
couldn't have anyone not taking that seriously. So
despite their reluctance the hoardings were wiped
clean. "Then there was an ad during the Ganpati
festival which said, Ganpati Bappa More Ghya
(Ganpati Bappa take more). The Shiv Sena people
said that if we didn't do something about removing the
ad they would come and destroy our office. It is
surprising how vigilant the political forces are in this
country. Even when the Enron ads (Enr On Or Off)
were running, Rebecca Mark wrote to us saying how
much she liked them."

Amul's point of view on the MR coffee controversy


There were other instances too. Heroine Addiction,
Amul's little joke on Hussain had the artist ringing the
daCunhas up to request them for a blow up of the ad.
"He said that he had seen the hoarding while passing
through a small district in UP. He said he had asked
his assistant to take a photograph of himself with the
ad because he had found it so funny," says Rahul
daCunha in amused tones. Indians do have a sense
of humour, afterall.
From the Sixties to the Nineties, the Amul ads have
come a long way. While most people agree that the
Amul ads were at their peak in the Eighties they still
maintain that the Amul ads continue to tease a
laughter out of them.
Where does Amul's magic actually lie? Many believe
that the charm lies in the catchy lines. That we laugh
because the humour is what anybody would enjoy.
They don't pander to your nationality or certain
sentiments. It is pure and simple, everyday fun.
.

Members: 12 district
cooperative milk
producers' Union
No. of Producer 2.41 million
Members:
No. of Village 11,615
Societies:
Total Milk handling 7.4 million litres per
capacity: day
Milk collection (Total 2.08 billion litres
- 2004-05):
Milk collection (Daily 5.71 million litres
Average 2004-05):
Milk Drying Capacity: 511 metric Tons per
day
Cattle feed 2340 Mts per day
manufacturing
Capacity:

An Overview on Amul

Every day Amul collects 8.4 million litres of milk from


2.79 million farmers (many illiterate), converts the milk
into branded, packaged products, and delivers goods
thus achieving record annual sales turnover of $ 1504
million in 2008-09 making Amul as the largest food
products marketing organization in India with more
than 60 products.

Its supply chain is easily one of the most complicated


in the world. How do managers at Amul prevent the
milk from souring?

Walk in to any Amul or Gujarat Cooperative Milk


Marketing Federation (GCMMF) office, and you may
or may not see a photograph of Mahatma Gandhi, but
you will certainly see one particular photograph. It
shows a long line of Gujarati women waiting patiently
for a union truck to come and collect the milk they
have brought in shining brass matkas.

The picture is always prominently displayed. The


message is clear: never forget your primary customer.
If you don't, success is certain. The proof? A unique,
Rs 2,200 crore (Rs 22 billion) enterprise.

Organization structure

It all started in December 1946 with a group of


farmers keen to free themselves from intermediaries,
gain access to markets and thereby ensure maximum
returns for their efforts.

Based in the village of Anand, the Kaira District Milk


Cooperative Union (better known as Amul) expanded
exponentially. It joined hands with other milk
cooperatives, and the Gujarat network now covers
2.79 million farmers, 13,328 village societies and
thirteen district level plants (unions) under the overall
supervision of GCMMF.

There are similar federations in other states. Right


from the beginning, there was recognition that this
initiative would directly benefit and transform small
farmers and contribute to the development of society.

Markets, then and even today are primitive and poor


in infrastructure. Amul and GCMMF acknowledged
that development and growth could not be left to
market forces and that proactive intervention was
required. Two key requirements were identified.

The first, that sustained growth for the long term


would depend on matching supply and demand. It
would need heavy investment in the simultaneous
development of suppliers and consumers.

Second, that effective management of the network


and commercial viability would require professional
managers and technocrats.

To implement their vision while retaining their focus


on farmers, a hierarchical network of cooperatives
was developed, which today forms the robust supply
chain behind GCMMF's endeavors. The vast and
complex supply chain stretches from small suppliers
to large fragmented markets.

Management of this network is made more complex


by the fact that GCMMF is directly responsible only
for a small part of the chain, with a number of third
party players (distributors, retailers and logistics
support providers) playing large roles.

Managing this supply chain efficiently is critical as


GCMMF's competitive position is driven by low
consumer prices supported by a low cost system.
Developing demand

At the time Amul was formed, consumers had limited


purchasing power, and modest consumption levels of
milk and other dairy products. Thus Amul adopted a
low-cost price strategy to make its products affordable
and attractive to consumers by guaranteeing them
value for money.

Introducing higher value products

Beginning with liquid milk, GCMMF enhanced the


product mix through the progressive addition of higher
value products while maintaining the desired growth
in existing products.

Despite competition in the high value dairy product


segments from firms such as Hindustan Lever, Nestle
and Britannia, GCMMF ensures that the product mix
and the sequence in which Amul introduces its
products is consistent with the core philosophy of
providing milk at a basic, affordable price.

The distribution network

Amul products are available in over 800,000 retail


outlets across India through its network of over 5,000
distributors. There are 65 depots with dry and cold
warehouses to buffer inventory of the entire range of
products.

GCMMF transacts on an advance demand draft basis


from its wholesale dealers instead of the cheque
system adopted by other major FMCG companies.
This practice is consistent with GCMMF's philosophy
of maintaining cash transactions throughout the
supply chain and it also minimizes dumping.

Wholesale dealers carry inventory that is just


adequate to take care of the transit time from the
branch warehouse to their premises. This just-in-time
inventory strategy improves dealers' return on
investment (ROI). All GCMMF branches engage in
route scheduling and have dedicated vehicle
operations.

Umbrella brand

The network follows an umbrella branding strategy.


Amul is the common brand for most product
categories produced by various unions: liquid milk,
milk powders, butter, ghee, cheese, cocoa products,
sweets, ice-cream and condensed milk.

Amul's sub-brands include variants such as


Amulspray, Amulspree, Amulya and Nutramul. The
edible oil products are grouped around Dhara and
Lokdhara, mineral water is sold under the Jal Dhara
brand while fruit drinks bear the Safal name.
By insisting on an umbrella brand, GCMMF not only
skillfully avoided inter-union conflicts but also created
an opportunity for the union members to cooperate in
developing products.

Managing the supply chain

Even though the cooperative was formed to bring


together farmers, it was recognized that professional
managers and technocrats would be required to
manage the network effectively and make it
commercially viable.

Coordination

Given the large number of organizations and entities


in the supply chain and decentralized responsibility for
various activities, effective coordination is critical for
efficiency and cost control. GCMMF and the unions
play a major role in this process and jointly achieve
the desired degree of control.

Buy-in from the unions is assured as the plans are


approved by GCMMF's board. The board is drawn
from the heads of all the unions, and the boards of the
unions comprise of farmers elected through village
societies, thereby creating a situation of interlocking
control.

The federation handles the distribution of end


products and coordination with retailers and the
dealers. The unions coordinate the supply side
activities.

These include monitoring milk collection contractors,


the supply of animal feed and other supplies,
provision of veterinary services, and educational
activities.

Managing third party service providers

From the beginning, it was recognized that the unions'


core activity lay in milk processing and the production
of dairy products. Accordingly, marketing efforts
(including brand development) were assumed by
GCMMF. All other activities were entrusted to third
parties. These include logistics of milk collection,
distribution of dairy products, sale of products through
dealers and retail stores, provision of animal feed,
and veterinary services.

It is worth noting that a number of these third parties


are not in the organized sector, and many are not
professionally managed with little regard for quality
and service.

This is a particularly critical issue in the logistics and


transport of a perishable commodity where there are
already weaknesses in the basic infrastructure.
Establishing best practices

A key source of competitive advantage has been the


enterprise's ability to continuously implement best
practices across all elements of the network: the
federation, the unions, the village societies and the
distribution channel.

In developing these practices, the federation and the


unions have adapted successful models from around
the world. It could be the implementation of small
group activities or quality circles at the federation. Or
a TQM program at the unions. Or housekeeping and
good accounting practices at the village society level.

More important, the network has been able to


regularly roll out improvement programs across to a
large number of members and the implementation
rate is consistently high.

For example, every Friday, without fail, between


10.00 a.m. and 11.00 a.m., all employees of GCMMF
meet at the closest office, be it a department or a
branch or a depot to discuss their various quality
concerns.

Each meeting has its pre-set format in terms of


Purpose, Agenda and Limit (PAL) with a process
check at the end to record how the meeting was
conducted. Similar processes are in place at the
village societies, the unions and even at the
wholesaler and C&F agent levels as well.

Examples of benefits from recent initiatives include


reduction in transportation time from the depots to the
wholesale dealers, improvement in ROI of wholesale
dealers, implementation of Zero Stock Out through
improved availability of products at depots and also
the implementation of Just-in-Time in finance to
reduce the float.

Kaizens at the unions have helped improve the quality


of milk in terms of acidity and sour milk. (Undertaken
by multi-disciplined teams, Kaizens are highly
focussed projects, reliant on a structured approach
based on data gathering and analysis.) For example,
Sabar Union's records show a reduction from 2.0% to
0.5% in the amount of sour milk/curd received at the
union.

The most impressive aspect of this large-scale roll out


is that improvement processes are turning the village
societies into individual improvement centers.

Technology and e-initiatives

GCMMF's technology strategy is characterized by


four distinct components: new products, process
technology, and complementary assets to enhance
milk production and e-commerce.

Few dairies of the world have the wide variety of


products produced by the GCMMF network. Village
societies are encouraged through subsidies to install
chilling units. Automation in processing and
packaging areas is common, as is HACCP
certification. Amul actively pursues developments in
embryo transfer and cattle breeding in order to
improve cattle quality and increases in milk yields.

GCMMF was one of the first FMCG (fast-moving


consumer goods) firms in India to employ Internet
technologies to implement B2C commerce.

Today customers can order a variety of products


through the Internet and be assured of timely delivery
with cash payment upon receipt.

Another e-initiative underway is to provide farmers


access to information relating to markets, technology
and best practices in the dairy industry through net
enabled kiosks in the villages.

GCMMF has also implemented a Geographical


Information System (GIS) at both ends of the supply
chain, i.e. milk collection as well as the marketing
process.

Farmers now have better access to information on the


output as well as support services while providing a
better planning tool to marketing personnel.
PROJECT BRIEF

To make a case study and research, I selected the


Delhi and Gurgaon`s urban, semi urban and rural
areas to analysis the demand and the distribution
system, increasing the width and depth of amul
products, and to measure the satisfaction of the
retailers. I decided to go the urban, semi urban and
rural milk booths to collect the data and to interpret
the retailing system, satisfaction of retailer and
consumer. I also decided to study the behaviors of
peoples of different place toward the amul products
specially butter.

• Sadar Bazar

• Netajee Nagar

• Bikhajee Kama

• Sarojini Nagar

• Malcha Marg
• Moti Baagh

• R.K. Puram

• Munirka

• Najafgarh

• Udhyog Vihar

• Lajpat Nagar

• Sector-7,9,14 Gurgaon
All this has helped me to identify the problems that
are faced by the retailers in the market and the
possibility and challenges of retail the amul products
in the different area. As it was an independent audit
so the chances of bias in the answers given by
retailers was also less

Although amul is a big brand but it also faces some


problems. The problems have been highlighted ahead
in the project. Although faced with problems Amul is
good going in Delhi and the demand and prestige of
Amul product in the semi urban and rural ares are
also very good. In delhi, amul has the largest market
share as regards to its products like butter, buttermilk
and cool in spite of presence of local brands like
mother dairy, paras, parag etc. So the name, which
has been ruling and guiding our preference in all
these years, is all set to guide our preferences in the
future
PROBLEM ENVIRONMENT

• Sample size was too small to analyze accurately


the retailers preference in South Delhi region
• Money was another limitation. Company should
have provided at least transport allowance, which
could have acted as an incentive to encourage
and boost us.
• Even weather condition was not supportive. The
weather was too hot to do survey whole day.
• The respondent might have shown biases or
behave artificially so that exact picture of Amul
could not be derived.
• Due to time constraint, we had worked under
stress. The time duration of two months is too
short to take big sample size which if taken could
help me in reaching in much core accurate
results.
• The behavior of the retailer and consumer was
comfortable in semi urban and rural areas but not
helpful in urban areas.
COMPETITIVE SITUATION

Introducing higher value products

Beginning with liquid milk, GCMMF enhanced


the product mix through the progressive addition
of higher value products like Amul Lite Delicious
Table Margarine Amul Kool Millk Shaake Amul Kool
Flavoured Bottled Milk etc.while maintaining the
desired growth in existing products.
Amul progressive high valve products

Bread Spreads
Amul Butter Amul Lite
Utterly Low fat, low
Butterly Cholesterol
Delicious Bread
Spread

Delicious
Table
Margarine
The Delicious
way to eat
healthy

Milk Drinks

Amul Kool Amul Kool


Millk Shaake

Amul Kool Kool Koko


Cafe A delight to
Chocolate
Lovers.
Delicious
Chocolate
taste

Nutramul Amul Kool


Energy Drink Chocolate
A drink for Milk
Kids - provides
energy to suit
the needs of
growing Kids

Amul Kool Amul Kool


Flavoured Flavoured
Bottled Milk Tetra Pack

Amul Masti Amul Lassee


Spiced
Buttermilk
Amul
introduces the
Best Thirst
Quenching
Drink

Amul Kool
Thandai
Powder Milk

Amul Spray Amul Instant


Infant Milk Full Cream
Food Milk Powder
Still, Mother's A dairy in
Milk is Best for your home
your baby

Sagar Sagar Tea


Skimmed Milk Coffee
Powder Whitener
Which is
especially
useful for diet
preparations or
for use by
people on low
calorie and
high protein
diet.
Amulya Dairy
Whitener
The Richest,
Purest Dairy
Whitener

Fresh Milk

Amul Fresh Amul Gold


Milk Milk
This is the
most hygienic
milk available
in the market.
Pasteurised in
state-of-the-art
processing
plants and
pouch-packed
for
convenience.

Amul Taaza Amul Lite


Double Toned Slim and
Milk Trim Milk
Amul Fresh Amul Shakti
Cream Toned Milk

Amul Calci+

Cheese

Amul Pasteurised Amul Cheese


Processed Spreads
Cheese Tasty Cheese
100% Vegetarian Spreads in 3
Cheese made great flavours..
from microbial
rennet

Amul Emmental Amul Pizza


Cheese Mozzarella
The Great Swiss Cheese
Cheese from Pizza
Amul, has a cheese...makes
sweet-dry flavour great tasting
and hazelnut pizzas!
aroma
Gouda Cheese

For Cooking

Amul / Sagar Cooking


Pure Ghee Butter
Made from
fresh cream.
Has typical
rich aroma
and granular
texture. An
ethnic
product
made by
dairies with
decades of
experience.

Amul Malai Utterly


Paneer Delicious
Ready to Pizza
cook paneer
to make your
favourite
recipes!
Mithai Mate Masti Dahi
Sweetened
Condensed
Milk - Free
flowing and
smooth
texture.
White to
creamy color
with a
pleasant
taste.

Desserts

Amul Ice Amul


Creams Shrikhand
Premium Ice A delicious
Cream made treat,
in various anytime.
varieties and
flavours with
dry fruits and
nuts.
Amul Mithaee Amul
Gulab Jamuns Chocolates
Pure Khoya The perfect
Gulab gift for
Jamums...best someone
served piping you love.
hot.

Amul Basundi Amul Yogi


Yoghurt

Health Drink

Nutramul Amul Shakti


Malted Milk Health Food
Food made Drink
from malt Available in
extract has the Kesar-
highest protein Almond and
content among Chocolate
all the brown flavours.
beverage
powders sold
in India.

Despite competition in the high value dairy


product segments from firms such as Hindustan
Lever, Nestle and Britannia, GCMMF ensures
that the product mix and the sequence in which
Amul introduces its products is consistent with
the core philosophy of providing milk at a basic,
affordable price as Amul products are available in
over 800,000 retail outlets across India through its
network of over 5,000 distributors. There are 65
depots with dry and cold warehouses to buffer
inventory of the entire range of products.

In fact, Amul products are now available in


shelves across several countries including the
US, China Australia, West Asian countries and
those in Africa. Spurred by the recent reduction in
dairy subsidies by the European Commission and
stagnant milk output in the US and Europe, and aided
by low-cost production in India, the Gujarat
Cooperative Milk Marketing Federation (GCMMF) has
set itself its single biggest export target ever.
"Amul plan to invest around Rs 150 crore over the
next three years to expand our current capacity and
also set up facility in Europe to meet our objective of
growing our current turnover of Rs 110 crore by three
times,'

Gujarat Cooperative Milk Marketing


Federation
Gujarat Cooperative Milk Marketing Federation
(GCMMF) is the largest food product marketing
organization of India. It aims to provide good
returns to the farmers and also to fulfill the
requirements of consumers by giving them
quality products.

Amul was formed in 1946 by an apex co-


operative organization, Gujarat Cooperative Milk
Marketing Federation. AMUL means "priceless"
in Sanskrit. Amul products are used by millions
of people. Amul Butter, Amul Milk Powder, Amul
Ghee, Amulspray, Amul Cheese, Amul
Chocolates, Amul Shrikhand, Amul Ice cream,
Nutramul, Amul Milk, and Amulya has made
Amul one of the leading

food brands in India. Amul products are sold at


reasonable prices. Amul has a turnover of Rs. 37.74
billion in 2005-06.

No. of Cooperative 12
Unions
No. of Producer 2.5 million
Members:
No. of Village 11,962
Societies:
Total Milk Handling 9.91 million liters
Capacity: per day
Milk Collection (Total - 2.28 billion liters
2005-06):
Capacity 6,595 thousand
liters per Day
No. of Dairy Plants 19
Sales Turnover

Sales Rs US $ (in
Turnover (million) million)
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850

At the time Amul was formed, consumers had


limited purchasing power, and modest
consumption levels of milk and other dairy
products. Thus Amul adopted a low-cost price
strategy to make its products affordable and
attractive to consumers by guaranteeing them
value for money. On the exports front, GCMMF
has tied up with dairies in other countries. Most
of the exports of skim milk and butter oil are to
neighboring countries, West Asia, Africa,
Afghanistan, China and Singapore. Interestingly,
China is emerging as a lucrative market for milk
products exports. However, exporting to the
European countries is still a tough task due to
the number of non-tariff barriers in place. India is
the world's largest producer of milk with
production growing at 4.5 per cent annually.
Sales Rs US $ (in
Turnover (million) 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
Facts about amul
• Getting what you paid for: Winning customers
through an acquisition
• 9.2 million Indians to seek jobs online in 2006-07
• E-commerce goes places with word-of-mouth
• Godrej launches refrigerators with 10-year
warranty against rusting
• Managing channel partnerships
• A corollary: Online satisfaction equals frequent
purchases
• From complaints to compliments
• "Our business is all about people"
• FMCGS, retailers announce launch of global data
PRESENT POSITION OF AMUL IN DELHI

Amul milk tastes huge success in Delhi

In just a fortnight, Amul milk has taken the Indian


capital by storm, rapidly eating into the market share
of long time players like Mother Diary and Paras. It
was rivalry or business strategy that made the Gujarat
Cooperative Milk Marketing Federation (GCMMF)
enter the capital with Amul milk to take on state-
owned Mother Dairy in its home turf. From the
response, Delhiites seem to be lapping up Amul's
pouches of full cream and toned milk in unimagined
quantities. In just two weeks of entering the market,
Amul is beginning threaten the virtual monopoly of
Mother Dairy and Paras. They did not want to expect
to reach 70,000 liters daily supply in little over two
weeks," said R.S. Khanna, a GCMMF official here.
Company had expected to go up gradually and had
made arrangements for pasteurization and packaging
of just 60,000 liters per day at Kwality Dairy's unit in
Faridabad, which we have leased. But in less than
one week, Amul notched the mark of 50,000 liters per
day. GCMMF is bringing milk to Delhi through one of
its district co-operative unions, located at Mehsana,
around 700 km from the capital. The fresh milk is
transported through insulated containers of between
12,000 to 20,000 liters capacity at two degree
centigrade. After the 24 to 30 hours journey by road,
the milk is processed and packaged at Mehsana
before being distributed in the Indian capital.
The packaged milk is being sold through 2,500 retail
outlets, which we hope to raise to 7,500 as we soon
as we are able increase the supplies to 100,000 liters.
Currently we are working at more than full capacity at
Kwality Dairy to meet demands. The official admitted
that the idea of entering the Delhi market had
originated in August when the state and central
governments approached the GCMMF to help tide
over an acute milk shortage. At over five million liters
a day, Delhi is one of the biggest markets for milk in
the country. Of the supplies from the organized
sector, Mother Dairy has been the undisputed leader
with 1.8 million liters daily sales through package and
vending machines. The other big names are Paras,
Param, Gopaljee and Umang.
Now Amul milk, which is currently being supplied to
10 towns and cities in India through eight GCMMF
units, has arrived to eat into the share of other players
in the market on the strength of its quality and brand
equity and not price. Having arrived in the capital with
its milk products besides products like ice cream,
cheese, butter and pizzas, GCMMF, with a milk
handling capacity of 6.7 million liters a day, is eyeing
expanding market in and around the capital. For
realising this, plans are on to set up a milk-processing
unit at Manesar in Haryana. The state government
has agreed to allot nine acres of land. One of the
largest food products marketing venture, GCMMF is
planning to invest around Rs.500 million in phases at
the 500,000 liters capacity plant at Manesar, which is
about 50 km from here.

ORGANISATION CHART

(MARKETING DIVISION)

MANAGING
DIRECTOR

GENERAL
MANAGER

ASSISTANT GENERAL
MANAGER

ASSISTANT GENERAL
MANAGER
(ZONAL HEAD)

DEPOT IN CHARGE
Amul cooperative devolpment programme

During the last four years, our Member Unions have


implemented an Internal Consultant Development
(ICD) intervention focused on developing leadership
among member producers, helping them to better
manage their dairy business.
During the year, Member Unions continued to
implement the module on Vision Mission Strategy
(VMS) for primary milk producer members and Village
Dairy Cooperatives. Facilitated by specially trained
consultants, 1,073 Village Dairy Cooperative
Societies (VDCS) have conducted Vision Mission
Strategy Workshops, and have prepared Mission
Statements and Business Plans for the next five
years. The VMS module has prompted milk producers
to initiate activities at villages that have far-reaching
effects on the milk business.
The success of the program has led to Member
Unions focusing on implementing this VMS module
and developing Business Plans for all VDCS, thus
strengthening them to face the fierce competition
ahead.
Continuing the Cleanliness Drive at village level,
Member Unions have trained 8,455 core groups of
milk producers and VDCS management. On October
2nd, 2,970 VDCS celebrated Red Tag Day, an effort
to raise Cleanliness awareness. The Unions also
presented awards to the VDCS that raised cleanliness
standards to the highest levels.
As a part of the Breeding Services Improvement
Programme, Member Unions have continued
implementation of the second module of Improvement
in Artificial Insemination Services. In the villages,
3,374 core groups have been trained and a decision
has been taken to extend the program to include all
the VDCS that offer breeding services. A mass de-
worming campaign has been undertaken to fortify the
breeding services. During the year, Member Unions
implemented an Artificial Insemination Audit
Competition that identified the best performing VDCS
and Artificial Insemination Workers who received
awards as a motivation for continued improvement.
With the objective of encouraging professional
management by Milk Producers and dairy cooperative
societies, Member Unions have initiated Members'
Business Development Programme (MBDP). During
the last three years, 2,483 villages and 1,53,108 milk
producers participated in the programme. This has
resulted in introduction of new scientific animal
husbandry management methods on a significant
scale.
A Chairmen and Secretaries' Orientation Programme
is being conducted at Mother Dairy, Gandhinagar.
Member Unions, supported by your Federation, carry
out this program to increase awareness regarding the
dairy industry scenario and to develop leadership
skills among Chairmen and Secretaries. During the
year, 5,797 chairmen and secretaries from 2,944
Village Dairy Cooperative Societies participated in the
program.
An ongoing emphasis of our Member Unions has
been to encourage increased women milk producers'
participation in their Dairy Cooperative Societies. To
develop and enhance leadership skills and qualities,
Member Unions organised three Self Managing
Leadership (SML) workshops at Prajapita
Brahmakumaris, Mount Abu which attracted the
participation of 3,100 women resource persons along
with the Chairmen and Secretaries of 750 VDCS.

Amul Preferred Outlets


Amul has justified its undisputed leadership in foods
business by creating 5000 Amul preferred outlets in a
record time which exclusively sell wide range of Amul
products. This has been possible due to strong brand
equity and immense consumer support. We now have
now ambitious plans of creating 10,000 Amul parlours
by 2012.
Amul Parlours are successfully operating in more than
1400 towns at high streets, residential areas, Railway
Stations, Bus Stations, Educational Institutions and a
whole lot of Centres of Excellence.
Here is a list of the few of the Amul parlours operating
across the various parts of the country
1. Indian Institute of Management, Ahmedabad
2. New Delhi Railway Station PF6/7 & PF10/11
3. National Institute of Design
4. Infosys Technologies in Bangalore, Mysore &
Pune
5. Wipro, Bangalore
6. Indian Institute of Management, Kolkata
7. Ahmedabad Airport
8. Koyambedu Bus Station, Tamilnadu
9. Savitha Dental College, Chennai
10. IIT, Guwahati
"Amul Preferred Outlets (APOs)” are an excellent
business opportunity for budding entrepreneurs. To
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SECTION B
• Research Objective

• Information requirements – in detail and

source of information

• Research design –Alternatives and choice

• Research instrument used

• Sampling Technique used &sample size

• Field work- method used for data collection

• Limitations
OBJECTIVE: -

• To find out the retail penetration of all Amul


Products

• To study the presence of all competitors of Amul

• To capture the new outlets in Southern Delhi and


Gurgaon

• To know the satisfaction level of Retailers and


solving related problems

• To know the satisfaction level of consumer.


INFORMATION REQUIREMENTS

• Personal details
• Demand for Amul Beverages
• Distribution system
• Costumer satisfaction
• Demand of Milk and butter.
SOURCE OF INFORMATION

Field Survey: In order to collect the information I


had directly approached the retailers and
consumer during the morning and evening time.so
as to obtain the details as required by the
questionnaire and the consumer which were
available. It is important that I go through Many
urban semi urban and Rural areas as well as the
labors living places in Delhi and Gurgaon to find
the attitude of the peoples toward the amul
products other than milk and butter.
RESEARCH DESIGN

Research design pertains to the general research


approach or strategy adopted for a particular project.
A research project has to be conducted scientifically
making sure that the data is collected adequately and
economically. People from different age group and
from different income, Labor to white color.
RESEARCH INSTRUMENT:

• The primary data was collected by


circulating questionnaire to the retailers in
Delhi and gurgaon

• Data collection method was none other than


survey, which is usually incorporated for
collecting new information.
• The methods used were appropriate as they
gave a fair idea about the objective
quantitatively.

• Question was simple and appropriate as the


retailer and consumer feel comfortable to
answer them.
SAMPLING TECHNIQUES USED AND
SAMPLE SIZE

Sample design is a definite plan of obtaining some


items from the whole population. The sample design
used in this project is two state sampling i.e. cluster
and convenience .The whole city was divided into four
geographical areas and we are given to cover all over
the southern Delhi from the retailers. So the total
sample size was 261.
FIELD WORK:

• Questionnaire was prepared keeping the


objective of research in mind.
• Questions were asked to retailers according
to their own experience.
LIMITATIONS:

• The retailers are not comfortable while giving


information about their products. They have
some kind of fear in their mind.
• Non-cooperative approach and the rude
behaviors of the retailers.
• It cannot be used for a means of collecting
information in areas where the literacy levels are
low as the retailers may not be able to
understand the purpose of the questionnaire.

• Peoples were not happy to disclose their eating


habits before others.

SECTION C
Analysis
• Analysis & Interpretation
• Complaint
• Suggestions
• Bibliography

ANALYSIS & INTERPRETATION

Q.1 Do you keep Amul beverages?


a. Yes b. No
200
180
160
140
120
YES
100
NO
80
60
40
20
0

Interpretation: According to the graph it can be


interpreted that most of the retailers prefer to keep
Amul beverages in their shop.

Q2. Which beverages do you have?


a. Amul Kool b. Amul Kool Kafe
c. Amul Lassee d. Amul Butter Milk
140

120
Amul Kool
100
Amul Kool
80
Kafe
60 Amul Lassee

40 Amul Butter
Milk
20

Interpretation: According to the graph it can be


interpreted that retailers prefer Amul Butter Milk in
their shop.

Q3. Which beverages have the greater demand in the


market?
a. Amul Kool b. Amul Kool Kafe
c. Amul Lassee d. Amul Butter Milk
180
160
140
Amul Butter
120 Milk
Amul Kool
100
80 Amul Kool
Kafe
60 Amul Lassee
40
20
0

Interpretation: According to the graph it can be


interpreted that buttermilk has the greater demand in
the market followed by kool, kool kafe & lassee.

Q4. Delivery is made to you in


a. Daily Basis b. Once in a week
c.Twice in a week d. Forthnightly
e. No delivery
120

100
Daily

80 Once in a week

Twice in a
60
week
Forthnightly
40
No delivery
20

Interpretation: According to the graph it can be


interpreted that delivery is made once in a week in
most of the retail outlet.

Q5. Do you face the problem of stock out?


a. Yes b. No
200

180

160

140

120

100 Yes
No
80

60

40

20

0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Interpretation: According to the graph it can be


interpreted that maximum retailers face the problem
of stock out.

Q6. Do you face any distribution problem?


a. Yes b. No

180

160

140

120

100
Yes
80 No

60

40

20

Interpretation: According to the graph it can be


interpreted that retailer is not facing distribution
problem in this region.
Q7. Do you want to keep Amul beverages in your
shop?
a. Yes b. No
180

160

140

120

100
Yes
80 No

60

40

20

Interpretation: According to the graph it can be


interpreted that lot of retailers wants to keep
beverages

Q.8 Do you like to buy or know Amul high value


products ?
a. yes b. no
80

70

60

50
yes
40 no

30

20

10

0
1

90

80

70

Interpretation: According the graph it can be easily


60
interpreted that consumer does not buy or don’t
50 have knowledge about the products. yes
no
40

Q.9 Do you think that Amul milk is better than other


30

brands?
20
a. yes b. no
10

0
1
70

60

Interpretation:
50 It is found that consumer prefer Amul
milk than other competitor.
40
yes
no
30

Q.1020Do you think that prices of amul products is


comfortable?
a. Yes b. no
10

0
1
60

50

40

Interpretation: It is found that due to the good


yes
quality
of30products, consumer feel that prices areno
comfortable.
20
Q.11 As milk products are ultimate necessity for the
children, do you think that Amul milk and butter are
necessary
10
for your children, in spite of other brands?
a. Yes b. no

0
1
35

30

25

Interpretation: It is clear from the graph that most of


the consumer
20 thinks that Amul milk products are
ultimate necessity for the children. yes
no
Q.12 Do15 children and young age boys and girls like
the Amul high value products?
a.10yes b. no

0
1
Interpretation: It is clear that there is a huge craze in
children and young age boys and girls toward
the amul bervages.
GRAPH SHOWING NEW OUTLETS

200
180
160
140
120
Total Sample
100
New outlets
80
60
40
20
0
COMPLAINTS

As far as retailers complains of Amul products are


concerned, they had distinctive problems and they
differ from company to company. The consumer in the
urban area has good knowledge about the high value
amul products. But in the semi urban and rural areas
consume knows only about Amul milk and butter. It is
also found that in many areas Amul high value
products are not available.
Retailer’s complaints for Amul:
• Old dated products
• Bad replacement policy
• No credit
• New schemes are not provided to the retailer
• No cash discount

Consumer complaints for Amul:

• Costly high value products


• Old dated products
• Non- availability
Some of the consumer view
1.I had a bad experience with Amul butter. I
purchased an Amul butter from Total mall and ate
some of it. Immediately after few minutes, I vomited
and symptom was food poison. When I checked the
butter

2. Amul butter is loaded with Fat and Salt. First of all


its a pasteurized butter and second since the
nutritional information is printed in India it cannot be
fully trusted. Amul butter is filled with salt...

3. Amul butter and paneer are the important essence


of the daily meal of my family.

4. Amul cold milk is the my part-time breakfast and I


use cheese and butter only.
SUGGESTIONS

• There have been a lot of complaints about the


replacement policy of Amul. Amul should try to
improve its replacement policy and make it
somewhat liberal, it should look for the reason and
try to counter them.

• Amul should try to cash on its good brand image.


There should be more promotional schemes.

• One important thing is that Amul is always on the


back seat as far as shelf space is concerned. Amul
should try to overcome this.

• Amul had also faced at another form i.e. it is not


providing fresh stock to its retailers which is very
important in daily products. So Amul should try to
improve in its logistics and inventory management.

• Amul should try to provide various trades and


cash discounts. They should try to influence its
distributors to provide credits to its retailer.

• Amul should go for advertisement so that they


will get some lucrative things from it.

• Amul should concentrate on semi urban and rural


areas because with the industrialization, milk
production is diminishing in these areas.

• Amul should also take care of supply and their


brand advertisement in semi urban and rural ares.
BIBLIOGRAPHY

• MARKETING MANAGEMENT—Philip Kotlar

• Research methodology—C.R. Kothari

• www.amul.com

• www.indiatimes.com

• www.scribd.com

• The Asian Age

• News Papers: Times of India

Economic Times

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