2012-13

RESEARCH ON AMUL CURD

Summer Training Project

Submitted to

AIAIMS
Summer Training Project

RESEARCH ON AMUL CURD

Required For Partial Fulfillment of M.M.S. Program By Sayyed Saad DIV C Roll No 49 Under The Guidance Of Harshal Yewale Designation (TOS)

Amul
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& Under The Project Guide Of Prof Reshma Singh For The Academic Year 2012-2013

CERTIFICATE

This is to certify that the study presented by Sayyed Saad Abdul Aziz to the Anjuman-I-Islams Allana Institute of Management Studies, in part completion of the MMS under the title RESEARCH ON AMUL CURD has been done under the guidance of Prof. MS Reshma Singh and (TOS) Mr. Harshal Yewale, Amul India, Mumbai.

The project is in the nature of original work that has not so far been submitted for any program of Anjuman-I-Islams Allana Institute of Management Studies or any other University / Institute. References of work and related sources of information have been given at the end of the project.

(Project Guide)
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Prof. Reshma Singh

AKNOWLEDGEMENT

It has been great pleasure for me to work as a summer trainee in an esteemed organization like Amul India, which made me aware of the culture followed in the organization and gave me a great exposure.

The project work has been made possible through direct and indirect co-operation of various persons for whom I wish to express my appreciation and gratitude.

I shall remain grateful to Prof Ms. Rabiya for her incisive support and objective guidance during the project. I am also grateful for the kind co-operation and guidance provided by our Director Prof. Mr. Lukman Patel and Project Guide Prof Ms Reshma Singh, without which the project could not have been completed successfully.

Once again I express my gratitude to Mr. Harshal Yewale, Amul India, Mumbai for their kind co-operation.

Last but not the least I thank my parents and friends who gave me moral support throughout. Thank to you all.

Sayyed Saad Abdul Aziz

M.M.S. 1st, AIAIMS

OBJECTIVES
The objective is this project is to evaluate the pattern of Research On Amul Curd

This topic has been selected by me to know the whole process involved in the distribution and placement in particular area at Mumbai. This also involved meeting with different retail outlets individuals. This has given me exposure in the real market and to analyse the real market situation. Another reason is to find out the opportunities that exist in this segment. To accomplish these objectives as whole it involves meeting with different wholesalers, retailers and customers and collecting feedback from them

EXICUTIVE SUMMARY

INDEX
Sr no, 1
1.2

Title

Page no,

AMUL INTRODUCTION The Birth of Amul

1.3 1.4 1.5

CGMMF An Overview The Amul Model The Product Range Of Amul INTRODUCING Amul Curd

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2.1 2.2 2.3

Why AMUL MASTI Dahi??? Superiority of Amul Masti Dahi SWOT Analysis TASK REPORT

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3.1 3.2

Questionnaire Visited area information

a) Kalachawki b) Ghorapdev c) Parel d) Parel Village

e) Chinchpokli
3.3

All Five areas Report

a) Profit on single sale b) Amul curd sales in season and off season c) Persantage of damages and loose paking d) Customers loyalty for Amul curd and Amul brand

4 5 6
6.1 6.2

FINDINGS SUGGESTIONS RETAILER FEEDBACK Pricing Product Quality RECOMMENDATION CONCLUSON REFERENCE

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AMUL INTRODUCTION Introduction

AMUL means "priceless" in Sanskrit. The brand name Amul," from the Sanskrit "Amoolya was suggested by a quality control expert in Anand. Variants, all meaning priceless", are found in several Indian languages. Amul (Anand Milk Union Limited), formed in1946, is a dairy cooperative movement in India. It is brand name managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.03 million milk producers in Gujarat, India.

The Birth of Amul

It all began when milk became a symbol of protest Founded in 1946 to stop the exploitation by middlemen Inspired by the freedom movement

The seeds of this unusual saga were sown more than 65 years back in Anand, a small town in the state of Gujarat in western India. The exploitative trade practices followed by the local trade cartel triggered off the cooperative movement. Angered by unfair and manipulative practices followed by the trade, the farmers of the district approached the great Indian patriot Sardar Vallabhbhai Patel for a solution. He advised them to get rid of middlemen and form their own co-operative, which would have procurement, processing and marketing under their control. In 1946, the farmers of this area went on a milk strike refusing to be cowed down

by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in 1946. This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just two village dairy co-operative societies and 247 litres of milk and is today better known as Amul Dairy. Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas Patel, the founder Chairman and the committed professionalism of Dr Verghese Kurien,who was entrusted the task of running the dairy from 1950. The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach should become the basis of a National Dairy Development policy. He understood that the success of Amul could be attributed to four important factors. The farmers owned the dairy, their elected representatives managed the village societies and the district union, a they employed professionals to operate the dairy and manage its business. Most importantly, the co-operatives were sensitive to the needs of farmers and responsive to their demands. AMUL is based in Anand town of Gujarat and has been a sterling example of a cooperative organization's success in the long term. It is one of the best examples of co-operative achievement in the developing world. "Any one who has seen ... the dairy cooperatives in the state of Gujarat, especially the highly successful one known as AMUL, will naturally wonder what combination of influences and incentives is needed to multiply such a model a thousand times over in developing regions everywhere. 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 the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand.

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Amul is the largest food brand in India and world's Largest Pouched Milk Brand 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, former chairman of the GCMMF, is recognised as the man behind the success of Amul.

Type Industry Founded Headquarters Key People Products Revenue Employee

Cooperative Dairy 1946 Anand, Gujrat, India Chairman, Kheda District Cooperative Milk Producers Union Limited. (KDCMPUL) Listing product is given below $ 2.5 billion 2011-12 735 employees of Marketing Arm. However, real pool consists of 3.03 million milk producer members. www.amul.com

Web site

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APEDA 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 13 years. For its consistent adherence to quality, customer focus and dependability, GCMMF has received numerous awards and accolades over the years. It received the Rajiv Gandhi National Quality Award in 1999 in Best of All Category. In 2002 GCMMF bagged India's Most Respected Company Award instituted by Business World. In 2003, it was awarded the IMC Ramkrishna Bajaj National Quality Award - 2003 for adopting noteworthy quality management practices for logistics and procurement. GCMMF is the first and only Indian organization to win topmost International Dairy Federation Marketing Award for probiotic ice cream launch in 2007.

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.

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GCMMF - An Overview Year of Establishment

Members No. of Producer Members No. of Village Societies Total Milk handling capacity per day Milk Collection (Total 2011-12) Milk collection (Daily Average 2011-12) Milk Drying Capacity Cattlefeed manufacturing Capacity Sales Turnover -(2011-12)

1973
17 District Cooperative Milk Producers' Unions (16 Members & 1 Nominal Members) 3.18 Million 16,117 13.67 Million litres per day 3.88 billion litres 10.6 million litres (peak 13 million) 647 Mts. per day 3690 Mts. per day Rs. 11668 Crores (US $2.5 Billion)

The Amul Model

The Amul Model of dairy development is a three-tiered structure with the dairy cooperative 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 a direct linkage between milk producers and consumers by eliminating middlemen Milk Producers (farmers) control procurement, processing and marketing Professional management

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The Product Range of AMUL

Breadspreads Cheese Range Amul Butter, AmulLite, Delicious Table Margarine Amul Pasteurized Processed Cheddar Cheese, Amul Processed Cheese Spread, Amul Pizza (Mozarella) Cheese, AmulEmmental Cheese, Amul Gouda Cheese, AmulMalaiPaneer (cottage cheese), Utterly Delicious Pizza Amul Gold Full Cream Milk 6% fat, Amul Shakti Fresh Milk Standardised Milk 4.5% Fat, AmulTaaza Toned Milk 3% fat,Amul Slim & Trim, Amul Cow Milk UHT Milk Range Amul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk, AmulTaaza 1.5% fat Milk, AmulLite Slim-n-Trim Milk, Amul Fresh Cream Amul Full Cream Milk Powder, Amulya Dairy Whitener, Milk Powders Sagar Skimmed Milk Powder, Amulspray Infant Milk Food, Sagar Tea and Coffee Whitener AmulKool Flavoured Milk, AmulKool Cafe, Milk Drink AmulKoolKoko,AmulKoolMillkShaake, AmulKool Chocolate Milk, Amul PRO Energy Drink Stamina Instant Energy Drink Health Drink Brown Beverage Amul Pro Malted Milk Food Amul Masti Dahi (fresh curd), AmulMasti Spiced Butter Curd Products Milk,AmulLassee, AmulFlaavyo Yoghurt Amul Pure Ghee, Sagar Pure Ghee Pure Ghee AmulMithaimate Sweetened Condensed Milk Mithaee Range AmulShrikhand,AmulMithaeeGulabjamuns, AmulBasundi,AvsarLadoos (Ethnic Sweets) Sundae Range, probiotic,sugar free and probiotic Ice-cream Chocolate & Con Amul Milk Chocolate, Amul Fruit & Nut Chocolate, AmulChocozoo,

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INTRODUSING AMUL CURD

Why Dahi?

for its nutritive values. The answer to making great tasting dishes is fresh, creamy and good quality dahi Amul Masti DahiDahi or Curd plays a key role in the Indian diet and in preparation of delicious dishes like Dahi Wada, DahiBatataPuri, Dahi Rice, DahiIdli, DahiRaita, Kadhi and Muglai Food.

It is ideal meal accompaniment and is delicious as well as nutritious by itself too. It is also used to marinate veg. and non veg. dishes. Dahi is well known.

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Why AMUL MASTI Dahi???

Making fresh Dahi is cumbersome, time consuming chore and can cause great embarrassment to the house wife when it is not prepared properly.

Dahi prepared by local shop owners or at home varies in terms of quality & culture used.

Amul Curd is prepared in controlled conditions i.e. maintaining proper temperatures to grow beneficial bacteria and to avoid growth of harmful bacteria.

It is difficult to maintain controlled conditions at Home or at local shop level.

Many times the quality of Dahi available from the local market is far from satisfactory and often found to be contaminated as the culture used do not contain 100% beneficial bacteria.

AMUL MASTI DAHI is a pasteurized product i.e. free from unwanted bacteria.

AMUL MASTI DAHI is prepared with selected culture having pro health bacteria. The culture is developed after in depth research.

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Superiority of Amul Masti Dahi

Amul Masti Dahi is prepared from purest, freshest pasteurized milk and it is free from added sugar. Whats more, Amul Masti Dahi doesnt contain any preservatives. Amul Masti Dahi is prepared from certified and selected bacterial culture which gives excellent curd.

Amul Masti Dahi is hygienically processed and packed in a reusable plastic tub as well as convenient pouch and thus free from possible adulteration.

Amul Masti Dahi is high on nutrition and taste. Thick, creamy Amul Masti Dahi has a rich, glossy texture. Food tastes even more delicious at the snap of your fingers.

The live microflora in Amul Masti Dahi helps the digestive system and enhances the immune systems ability to fight harmful organisms. It improves the bodys natural defenses and helps keep the body functioning at its best.

Amul Masti Dahi having a probiotic nature contains live bacterial culture which increases milk digestibility, quickens recovery from certain types of diarrhea, skin infections, enhances immune function of the body and encourages the body to function in the best possible and most natural way.

Amul Masti Dahi contains all goodness of milk such as proteins, carbohydrates, fats, calcium, phosphorous, magnesium, zinc, iodine and vitamins.

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SWOT ANALYSIS

Strength
Strong brand name of AMUL. Low price than other products. Good in taste Attractive Packaging

Weakness
Improper supply No replacement Low Shelf life
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Opportunities
Huge market potential Well-known brand in India Good scope in overseas market

Threats
Strong competition from Mother Dairy, Danone, Mahanand. Competition from other local Dairies.

Competitors
Danone Mother Dairy Mahanand Goverdhan

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TASK REPORT
As an trainee in Amul I was visited near about 200 shops and 100s of peoples, Amul was allotted us a area and distributor for do the research on Amul curd, my area is Mazgaon and there distributer is R.B Enterprises. Under the R.B Enterprises near about 200 outlets and R.B Enterprises should be distributing Amul products. I was visited near about 200 outlets and meet people for collecting information about Amul curd. R.B Enterprises is distributing in 5 Areas. I was selected Britannia as competitor.

Shops Under R.B Enterprises

Chinchpokli 19% Kalachawki 31%

Parel 21% Ghorapdev 15%

Parel Villege 14%

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QUESTIONNAIRE
I was designed a questioner for retailers, they are give me answers about curd.

Shop Name: Type of shop: Fridge

Q. Selling curd: (If not selling)

YES WHY:

NO

Q. Which brand are you selling? a) Amul b) Mother Dairy c) Chitale d) Nestle e) Dannon f) Mahananda g) Gowerdhan h) Gowind i) Local

Q. Companies are giving any kind of scheme? Ans:

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Q. How is curd (DAHI) sale? Good Average Q. Sales can change in season? Ans.

Bad

Q. Profit on single sales? a) c)

b) d)

Q. What about distribution network? Good Average Bad

Q. Sale persons are visiting? Yes No

Q. After how many days you are giving order for new stock? Ans.

Q. How many days take distributer to complete the order? Ans.

Q. Any damages or loose packing problems in delivery? Ans.

Q. Why you are not selling other brands curd? a) b) c) d)

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VISITED AREA INFORMATION

1. KALACHAWKI
I was visited 40 retailers shops in Kalachawki area.

Percentage of shops in Kalachawki area those are dealing with Amul curd.

Shops In Kalachawki Area

Not Dealing 13%

Dealing Amul Curd 87%

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 Amul curd sales is good in Kalachawki area.

Sales

Britannia 28%

Amul 72%

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2. GHORAPDEV
I was visited 27 retailers shop in this area.

Percentage of shops in Ghorapdev area those are dealing with Amul curd.

Shops In Ghorapdev Area

Not Dealing 26%

Dealing with Amul curd 74%

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 Amul curd sales is good in Ghorapdev area.

Sales

Britannia 47%

Amul 53%

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3. Parel
I was visited 23 retailer shops in this area.

Percentage of shops in Parel area those are dealing with Amul curd.

Shops In Parel Area

Not Dealing 45%

Dealing with Amul curd 55%

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 Amul curd sales is average in Parel area

Sales

Amul 47% Britannia 53%

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4. Parel Village
I was visited 25 retailer shops in this area. Percentage of shops in Parel Village area those are dealing with Amul curd.

Shops In Parel Village Area

Not dealing 48%

Dealing with Amul curd 52%

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 Amul curd sales is Good in Parel Village area.

Sales

Britannia 49%

Amul 51%

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5. Chinchpokli
I was visited 32 retailers shop in this area. Percentage of shops in Chinchpokli area those are dealing with Amul curd.

Sales

Not Dealing 53%

Dealing with Amul curd 47%

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 Amul curd sales is not Average in Chinchpokli area.

Sales

Britannia 52%

Amul 48%

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ALL FIVE AREAS

Profit on single sale of curd.

4 3.5 3 2.5 2 1.5 1 0.5 0

400 gm 200 gm

Amul Curd Britannia Curd

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 Amul curd sales On season and Off Season.

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12

10

200 gm
6

400 gm

On Season

Off Season

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Percentage of Damages and Loose packing.

In 3 Orders

Britania Curd 47% Amul Curd 53%

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 Customers loyalty for Amul Curd and Amul Brand.

In 10 customers

Other Brands 40% Amul 60%

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FINDINGS

Britannia is main competitor and strategically on some point they has better performer then Amul. Amul India has very good reputation in Indian market and customer has trust on this brand. Maximum retailers are dealing with Amul curd but the quantity is low as compare to other brands. Amul curd sale in this area (Mazgaon) is good Amul should have to use some promotional activity to increase its sales. Amul curd profit is also low as compare to other brands 400gm pack is more likely as compare to 200gm pack. Amul curd sales in on season are double as compare to off season sales. Main problem which can affecting on Amul curd sales in distribution network, distribution network is really week in this area particularly. Retailers are complaining for damages and loose packing. Amul curd expiry problem is also there retailers are be careful about it. Replacements issues are there. Amul brand loyalty is excellent in this area; many customers are buying curd on Amul brand name only.

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SUGGESTIONS
Should increase the awareness of Amul fresh products through advertising in various media.

The Retail margin for the products should be increased so that more number of retailers will have Amul products. Timely visit should be given to the retail shops. Daily distribution service will provide to retailers like Britannia and Mother dairy. Motivate salesman to introduce this product to retailers. Deliver the Products with ready stock. Amul have to maintain relation with main retailers how are giving maximum curd sales. R.B. Enterprises (distributer) has increase their vehicles for distribution.

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RETAILERS FEEDBACK

Delay in delivery time after the order has placed. Want More Scheme and margin. They want guaranteed replacement. Lack of Advertising. Many retailers said the quality of Amul curd is good.

Pricing:
Many retailers want more margins on Amul Curd. (After discount scheme close) Price is low to compare other malt beverage products.

Product Quality:
Many of the people said that the quality & taste of Amul Curd is very good. They dont have any problem regarding this. Many said that Amul should maintain its quality in coming years.

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RECOMMENDATIONS
Amul has a relatively good distribution network, but still company is not able to full fill the demand of outlet in the peak season when demand is very high. Here company should consider on the supply of product in the peak season. Supply should be regular to all the outlets including those that lie in the pocket roads and not just in the outlets which lie on the easily accessible routes. Since the penetration of Amul products in eateries is the worst among all the channels, the company ought to adopt strategy like supplying free menu cards, which has the company logo printed on them; this will not only increase the penetration of the product in the outlets, but also improve the market sales. The company should also ask its distributors to supply its products on a bill to bill based credit system with at least all the reliable retailers, so that the product penetration in the outlets increases in terms of percentage of units stocked at a time in the outlet, this would also look appealing to the customer who would instead like to pick up the product at first glance. Credit is the 2nd biggest factor that influences the penetration of the product intothe retail outlet. So company should give the credit to all outlets. Given the fact that margin offered to the retailer is not similar in the case of the o competitors product.

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CONCLUSON
Thus this brings us to the end of our project report. I hope that we have been able to bring forth the point for which we had undertaken the project. They had put much effort on their creativity. Amul is one of the successful business houses and other companies should learn from Amul that how to do business in a corporately socially responsible manner. Amul has proved point; Amul uses only 1 percent of its turnover for promotions, this shows that it is not always necessary to spend millions on promotion when you have.

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REFERENCE

Books referred:

Marketing management --------Research Methodology -----------

Philip Kotler C. R Kothari

Websites:
www.amul.com, www.google.com

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