Retailers and Consumer Behaviour towards Amul

Introduction
In this research Researcher have surveyed the product performance
and buying behavior of two famous brands of dairy Amul and Saras,
which are consumed by people of all ages. During this research
Researcher have interacted with people of Jaipur.

After this research Researcher came to know how people perceives

these products on the variables like price, quality, advertisement,
satisfaction, taste, packaging, brand loyalty etc. Researcher also came to
know which particular brand of milk is most preferred by people of
different age groups.

In this research Researcher have surveyed that how frequently and

how much dairy products they consume, whether they buy small, or big
packs. Trend of ongoing changes in their likings has been shown in the
report. In this report Researcher have tried to explain the entire research
and facts product wise.

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Retailers and Consumer Behaviour towards Amul

Objectives of Research
1.

To know the market share of Amul products

2.

To know the perception of customers regarding Amul products.

3.

To determine the customers satisfaction regarding Amul products.

4.

To determine the factors influencing the choice of customers

regarding Amul products.

5.

To know effectiveness of the marketing strategy and sales

promotion in market.

6.

Evaluating the competitors strength and weakness in rural market

7.

Retailers expectation from company.

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Retailers and Consumer Behaviour towards Amul

Overview of Dairy Co-Operatives

Dairy cooperatives account for the major share of processed liquid
milk marketed in the country. Milk is processed and marketed by 170
milk producers cooperative unions, which federate into 15 state
cooperative milk marketing federations.
The dairy boards programmes and activities seek to strengthen the
functioning of dairy cooperatives, as producer-owned and controlled
organisations. NDDB supports the development of dairy cooperative by
providing them financial assistance and technical expertise, ensuring a
better future for Indias farmers.
Some of the major dairy cooperatives federations include:
Andhra Pradesh Dairy Develeopment Cooperative Federation Ltd.
(APDDCF)
Bihar State Cooperative Milk Producers Federation Ltd.
(COMPFED)
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF)
Haryana

Dairy

Development

Cooperative

Federation

Ltd.

(HDDCF)
Himachal Pradesh State Cooperative Milk Producers Federation
Ltd. (HPSCMPF)
Karnataka Cooperative Milk Producers Federation Ltd. (KMF)
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Retailers and Consumer Behaviour towards Amul

Kerala State Cooperative Milk Marketing Federation Ltd.

(KCMMF)
Madhya Pradesh State Cooperative Dairy Federation Ltd.
(MPCDF)
Maharashtra

Rajya

Sahakari

Maryadit

Dugdh

Mahasangh

(MAHASANGH)
Orissa State Cooperative Milk Producersfederation Ltd. (OMFED)
Pradeshik Cooperative Dairy Federation Ltd. (UP) (PCDF)
Punjab State Cooperative Milk Producers Federation Ltd.
(MILKFED)
Rajasthan Cooperative Dairy Federation Ltd. (RCDF)
Tamilnadu Cooperative Milk Producers Federation Ltd. (TCMPF)
West Bengal Cooperative Milk Producers Federation Ltd.
(WBCMPF)

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Retailers and Consumer Behaviour towards Amul

Gujarat Co-Operative Milk Marketing Federation

An Overview

Gujarat Co-Operative Milk Marketing Federation (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.

CRISIL, India's leading ratings, research, risk and policy advisory

company, has assigned its highest ratings of "AAA/stable/p1+" to the
various bank facilities of GCMMF.

Members

13 district cooperative
milk producers' union

No. Of producer members

2.79 million

No. Of village societies

13,328

Total milk handling capacity

11.22 million liters

per day

Milk collection (total - 2008-09)

3.05 billion liters

Milk collection (daily average 2008-09)

8.4 million liters

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Retailers and Consumer Behaviour towards Amul

Milk drying capacity

626 mts. Per day

Cattlefeed manufacturing capacity

3500 mts per day

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Retailers and Consumer Behaviour towards Amul

Company Profile Literature Review

Type

Co-Operative

Industry

Dairy

Founded

1946

Headquarters

Anand

Key people

Chairman, Kaira District

Cooperative Milk Producers
Union Limited (KDCMPUL)

Revenue

INR 67.11 Billion; $1.33 (in 200809)

Employees

735 employees of marketing arm.

However, real pool Consist of 2.8
million milk producers

Website

www.amul.com

Amul is the largest food brand in India and worlds largest

Pouched milk brand with an annual turnover of us $1050 million
(2006-07).
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Retailers and Consumer Behaviour towards Amul

Introduction and History of Amul

In the year 1946 the first milk union was established. This union
was started with 250 liters of milk per day. In the year 1955 Amul was
established. In the year 1946 the union was known as Kaira District CoOperative Milk Producers Union. This union selected the brand name
Amul in 1955.
The brand name Amul means Amulya. This word derived from
the sanskrit word Amulya which means priceless. A quality control
expert in anand had suggested the brand name Amul. Amul products
have been in use in millions of homes since 1946. Amul butter, Amul
milk powder, Amul ghee, Amulspray, Amul cheese, Amul chocolates,
Amul shrikhand, Amul ice cream, nutrAmul, Amul milk and Amulya
have made Amul a leading food brand in India. (the total sale is INR 6
billion in 2005). Today Amul is a symbol of many things like of the highquality products sold at reasonable prices, of the genesis of a vast cooperative network, of the triumph of indigenous technology, of the
marketing savvy of a farmers' organization. And have a proven model for
dairy development (generally known as anand pattern).
In the early 40s, the main sources of earning for the farmers of
Kaira District were farming and selling of milk. That time there was high
demand for milk in Bombay. The main supplier of the milk was Polson
Dairy Limited, which was a privately owned company and held
monopoly over the supply of milk at Bombay from the Kaira District.
This system leads to exploitation of poor and illiterates farmers by the
private traders. The traders used to beside the prices of milk and the
farmers were forced to accept it without uttering a single word.
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Retailers and Consumer Behaviour towards Amul

However, when the exploitation became intolerable, the farmers

were frustrated. They collectively appealed to Sardar Vallabhbhai Patel,
who was a leading activist in the freedom movement. Sardar Patel
advised the farmers to sell the milk on their own by establishing a cooperative union, instead of supplying milk to private traders. Sardar patel
sent the farmers to Shri Morarji Desai in order to gain his co-operation
and help. Shri Desai held a meeting at Samarkha village near Anand, on
4th January 1946. He advised the farmers to form a society for collection
of the milk.

These village societies would collect the milk themselves and

would decide the prices at which they can sell the milk. The district union
was also form to collect the milk from such village co-operative societies
and to sell them. It was also resolved that the government should be asked
to buy milk from the union.

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Retailers and Consumer Behaviour towards Amul

However, the govt. Did not seem to help farmers by any means. It
gave the negative response by turning down the demand for the milk. To
respond to this action of Govt., the farmers of Kaira District went on a
milk strike. For 15 whole days not a single drop of milk was sold to the
traders. As a result the Bombay milk scheme was severely affected. The
milk commissioner of Bombay then visited Anand to assess the situation.
Having seemed the condition, he decided to fulfill the farmers demand.

Thus their cooperative unions were forced at the village and district
level to collect and sell milk on a cooperative basis, without the
intervention of government. Mr. Verghese Kurien showed main interest
in establishing union who was supported by Shri Tribhuvandas Patel who
lead the farmers in forming the co-operative unions at the village level.
The Kaira District Milk Producers Union was thus established in Anand
and was registered formally on 14th December 1946. Since farmers sold
all the milk in anand through a co-operative union, it was commonly
resolved to sell the milk under the brand name Amul.

At the initial stage only 250 liters of milk was collected everyday.
But with the growing awareness of the benefits of the cooperativeness,
the collection of milk increased. Today Amul collect 11 lakhs liters of
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Retailers and Consumer Behaviour towards Amul

milk everyday. Since milk was a perishable commodity it becomes

difficult to preserve milk flora longer period.

Besides when the milk was to be collected from the far places,
there was a fear of spoiling of milk. To overcome this problem the union
thought out to develop the chilling unit at various junctions, which would
collect the milk and could chill it, so as to preserve it for a longer period.
Thus, today Amul has more than 150 chilling centers in various villages.
Milk is collected from almost 1073 societies.

With the financial help from UNICEF, assistance from the Govt. of
New Zealand under the Colombo plan, of INR 50 millions for factory to
manufacture milk powder and butter was planned. Dr. Rajendra Prasad,
the president of India laid the foundation on November 15, 1954. Shri
Pandit Jawaharlal Nehru, the prime minister of India declared it open at
Amul dairy on November 20, 1955.

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Retailers and Consumer Behaviour towards Amul

People Power: Amul's Secret of Success

The system succeeded mainly because it provides an assured

market at remunerative prices for producers' milk besides acting as a
channel to market the production enhancement package. What's more, it
does not disturb the agro-system of the farmers. It also enables the
consumer an access to high quality milk and milk products. Contrary to
the traditional system, when the profit of the business was cornered by
the middlemen, the system ensured that the profit goes to the participants
for their socio-economic upliftment and common good.

Looking back on the path traversed by Amul, the following

features make it a pattern and model for emulation elsewhere.

Amul has been able to:

Produce an appropriate blend of the policy makers farmers board
of management and the professionals: each group appreciating its
rotes and limitations,
Bring at the command of the rural milk producers the best of the
technology and harness its fruit for betterment.
Provide a support system to the milk producers without disturbing
their agro-economic systems,
Plough back the profits, by prudent use of men, material and
machines, in the rural sector for the common good and betterment
of the member producers and
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Retailers and Consumer Behaviour towards Amul

Even though, growing with time and on scale, it has remained with
the smallest producer members. In that sense Amul is an example
par excellence, of an intervention for rural change.

The union looks after policy formulation, processing and marketing

of milk, provision of technical inputs to enhance milk yield of animals,
the artificial insemination service, veterinary care, better feeds and the
like - all through the village societies. Basically the union and
cooperation of people brought Amul into fame i.e. Amul (Anand Milk
Union Limited), a name which suggest the taste of India.

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Retailers and Consumer Behaviour towards Amul

Plants

First plant is at Anand, which engaged in the manufacturing of

milk, butter, ghee, milk powder, flavored milk and buttermilk.

Second plant is at Mogar, which engaged in manufacturing

chocolate, NutrAmul, Amul ganthia and Amul lite.

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Retailers and Consumer Behaviour towards Amul

Third plant is at kanjari, which produces cattelfeed.

Fourth plant is at khatraj, which engaged in producing cheese.

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Retailers and Consumer Behaviour towards Amul

Today, twelve dairies are producing different products under the

brand name Amul. Today Amul Dairy is No. 1 dairy in Asia and no. 2 in
the world, which is matter of proud for Gujarat and whole India.

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Retailers and Consumer Behaviour towards Amul

Products

1.

Bread Spreads:

a. Amul Butter - Utterly butterly delicious

b. Delicious Table Margarine - The delicious way to eat
healthy
c. Amul Lite - Low fat, low cholestrol bread spread

2.

Milk Drinks:

a. Amul Kool Milk Shaake

b. Amul Kool
c. Amul Kool Koko - A delight to chocolate lovers delicious
chocolate taste
d. Amul Kool Chocolate Milk
e. Amul Kool Caf

3.

Nutramal Energy Drink:

a. A Drink For Kids - Provides energy to suit the needs of

growing kids
b. Amul Kool Flavoured Bottled Milk
c. Amul Masti Spiced Buttermilk
d. Amul Introduces The Best Thirst Quenching Drink
e. Amul Kool Thandai
f. Amul Lassee
g. Amul Kool Flavoured Tetra Pack

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Retailers and Consumer Behaviour towards Amul

4.

Powder Milk:

a. Amul Spray Infant Milk Food - Still, mother's milk is best

for your baby
b. Amul Instant Full Cream Milk Powder - A dairy in your
home
c. Sagar Skimmed Milk Powder - Which is especially useful
for diet preparations or for use by people on low calorie and
high protein diet.
d. Amulya Dairy Whitener - The richest, purest dairy whitener
e. Sagar Tea Coffee Whitener

5.

Fresh Milk:

a. Amul Fresh Milk - This is the most hygienic milk available

in the market. Pasteurised in the state of the art processing
plants and pouch packed for convenience.
b. Amul Gold Milk
c. Amul Taaza Double Toned Milk
d. Amul Lite Slim And Trim
e. Amul Fresh Cream
f. Amul Shakti Toned Milk
g. Amul Calci+
h. Amul Buttermilk

6.

Cheese:

a. Amul Pasteeurised Processed Cheese - 100% vegetarian

cheese made from microbial rennet
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Retailers and Consumer Behaviour towards Amul

b. Amul Cheese Spreads - Tasty cheese spreads in 3 great

flavours.
c. Amul Pizza Mozzarella Cheese - Pizza cheese...makes great
tasting pizzas!
d. Amul Emmental Cheese - The great swiss cheese from
Amul, has a sweet-dry flavour and hazelnut aroma
e. Gouda Cheese

7.

For Cooking:

a. Amul/Sagar Pure Ghee - Made from fresh cream. Has

typical rich aroma and granular texture. An ethnic product
made by dairies with decades of experience.
b. Cooking Butter
c. Utterly Delicious Pizza
d. Mast Dahi
e. Amul Malai Paneer - Ready to cook paneer to make your
favourite recipes!
f. Mithai Mate
g. Weetened Condensed Milk free flowing and smooth
texture. White to creamy color with a pleasant taste.
h. Pro-biotic Dahi

8.

Desserts:

a. Amul Ice Creams - Premium ice cream made in various

varieties and flavours with dry fruits and nuts.
b. Amul

Mithaee

Gulab

Jamun

Pure

khoya

gulab

jamums...best served piping hot.

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Retailers and Consumer Behaviour towards Amul

c. Amul Basundi
d. Amul Shrikhand - A delicious treat, anytime.
e. Amul Chocolates - The perfect gift for someone you love.

9.

Health drink:

a. NutrAmul - Malted milk food made from malt extract has

the highest protein content among all the brown beverage
powders sold in india.
b. Amul Shakti Health Food Drink - Available in kesar-almond
and chocolate flavours.

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Retailers and Consumer Behaviour towards Amul

Research design
Research Problem
Increase the awareness level of Amul milk.
Seek the general perception of consumer towards Amul milk.
To find the performance of Amul milk vis--vis other brands.
To know the consumer psyche and their behaviour towards
Amul milk.

Research Objectives & Related Sub Objectives

To know the relationship of sales with the advertisement.
To know awareness of people towards Amul milk and other
products.
To know which advertisement tool is mostly preferred by
people.
To know the preference of Amul milk with comparison to Other
competitive brands.
To know the factors which affects consumers buying behaviour
To purchase chocolates.
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Retailers and Consumer Behaviour towards Amul

Information Requirement
First, Researcher had to know about all the competitors present in
the milk segment (reputed and well established brands as well as
local brands).
Before going for the survey Researcher had to know the
comparative packs and prices of all the competitors existing in the
market.
As milk is different product, the main information needed is the
various types of milk available in the market, their calorific value,
fat percentage and fat percentage and various other facts.
As Amul milk advertisements are mainly done through audio
visual media and on television the advertisement is being telecasted
timely and on the proper time or not.

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Retailers and Consumer Behaviour towards Amul

Choice of Research Design Alternatives & Choice

Despite the difficulty of establishing an entirely satisfactory
classification system, it is helpful to classify marketing research on the
basis of the fundamental objectives of the research. Consideration of the
different types, their applicability, their strengths, and their weakness will
help the student to select the type best suited to a specific problem.

The two general types of research are:

1.

Exploratory Research

Exploratory research seeks to discover new relationship,

emphasis on discovery of ideas. Marketing researches devote a
significant portion of their work on exploratory studies when very
little is known about the problem being examined.

2.

Conclusive Research

Conclusive studies attempts to determine the frequency with

which something occurs or the relationship between two
phenomenons. Usually conclusive studies assume certain under
underlying characteristics of the market or have some precise
statement of research questions/hypothesis.

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Retailers and Consumer Behaviour towards Amul

Research instrument used - details & why?

If one wants to know what type of dentifrice people use, what they
think of, television commercials, or why they buy particular brands of
cars, the natural procedure is to ask them. Thus, the questionnaire method
has come to be the more widely used of the two data collection method.
Many consumers are now familiar with the telephone caller who greets
them with we are making a survey, and then proceeds to ask a series of
questions. Some interviews are conducted in person, others by telephone,
and others by mail. Each of these has its special advantages and
disadvantages and limitations. The questionnaire method in general,
however, has a number of pervasive advantages and disadvantages.
Discussion of particular variations will be more meaningful if these
characteristics of the general methods are brought out first.

A questionnaire consists of list of questions to be asked from the

respondents and the space provided to record the answer / responses.
Questionnaire can be used for the personal interviews, focus groups,
mails and telephonic interviews. The choice among these alternatives is
largely determined by the type of information to be obtained and by the
type of respondents from whom it is to be obtained.

The common factor in all varieties of the questionnaire method is

this reliance on verbal responses to question, written or oral.

Questionnaire in the research consists of: Multiple Choice Questions

Open End Questions
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Retailers and Consumer Behaviour towards Amul

Dicthomus

1.

Multiple Choice Questions:

Questions of this type offer the respondents an

alternative to choose the right answer among others. It is
faster, time saving and less biased. It also simplifies the
tabulating process.

2.

Open end Questions:

In this type respondents are free to answer in their

own words and express the ideas they think are relevant,
such questions are good as first questions or opening
questions. They introduce the subject and obtain general
reaction.

3.

Dicthomus:

These are the questions which are boolean in nature.

These answers are straightforward and respondents have to
answer them in a straight way. That means the answer can
only be either yes or no.

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Retailers and Consumer Behaviour towards Amul

Sampling Technique Used & Sample Size - Why?

Sample design is a definite plan of obtaining some items from the
whole population. The sample design used in this research is two state
sampling i.e. cluster and convenience. In the probability sampling
methods, each items in the sample is chosen one at a time from a
complete list of universe elements. In marketing research practice, it will
sometimes be more expedient to select clusters or groups of universe
elements, rather than to choose sample items individually.

Sampling methods in which universe elements are chosen in

groups rather than individually are called cluster-sampling methods. They
are widely used in the sampling of human populations. When no
complete universe listing exists, a type of sampling is called area
sampling may be the only practically feasible form of probability
sampling.

Nondisguised, Structured Techniques

The non structured techniques for attitude measurement are

primarily of value in exploratory studies, where the researcher is looking
for the salient attributes of given products and the important factors
surrounding purchase decisions as seen by the consumer. Structured
techniques can provide a more objective measurement system, one which
is more comparable to a scale or a yardstick. The term scaling has been
applied to the efforts to measure attitudes objectively, and a number of
useful scales have been developed.

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Retailers and Consumer Behaviour towards Amul

Sampling Methods

Sample design is a definite plan of obtaining some items from the

whole population. The sample design used in this research is two state
sampling i.e. cluster sampling and convenience sampling. The whole city
was divided into some geographical areas and Research have chosen
sanganer and jagatpura the total sample size was 50.

1.

Cluster Sampling

Here the whole area is divided into some geographical

area and a definite number of consumers and retailers were
to be surveyed.

2.

Convinience Sampling

This type of sampling is chosen purely on the basis of

convenience and according to convenience. Researcher
visited bus stands, milk parlours, gardens, etc.

Sampling

Sampling technique

non probability sampling (a non

probability sampling technique is
that in which each element in the
population does not have an equal
chance of getting selected)

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Retailers and Consumer Behaviour towards Amul

Sample unit

people who buy milk available in

retail outlets, superstores, etc

Sample size

50

respondents

(age

ranging

between 15 yrs to 65 yrs)

Method

direct

interview

through

questionnaire.

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Retailers and Consumer Behaviour towards Amul

Field Work- Method Used For Data Collection

a.

Questionnaire was prepared keeping the objective of research in

mind.

b.

Questions were asked to respondents as regards to their willingness

to purchase milk.

c.

The help of questionnaires conducted direct interviews, in order to

get accurate information.

d.

In order to get correct information Researcher had to approach

consumers ranging From 15 yrs to 65 yrs.

e.

Researcher visited as many respondents as Researcher can and

asked them their real likings of customer.

f.

It is really a herculean task to understand consumer behaviour, as

the definition suggest, consumer behaviour is a physical activity
as well as decision process individual engaged in when evaluating,
acquiring, using and disposing goods and services.

g.

In order to collect accurate information Researcher visited to

garden, parks, milk parlors, superstores, retailers and each and
every question was filled personally by the respondents and
checked properly.

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Retailers and Consumer Behaviour towards Amul

h.

People were not willing to answer, when they were contacted

between 1.00 Pm to 5.00 pm, the time when most of the people
take rest during the scorching heat.

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