WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

SUMMER INTERNSHIP PROJECT REPORT

ON

To conduct a market research on Penetration of AMUL Dairy Segment in

Central Mumbai

BY

KUNAL MAHESHWARI

PGDM (RURAL MGMT) EMERGING ECONOMICS 2017 – 19

TRIMESTER IV

SPECIALISATION: Marketing

ROLL NO – 27
 CERTIFICATE

TO WHOM SOEVER IT MAY CONCERN

1. This is to certify that Mr / Ms ……………………………………….., a student of

Welingkar Institute of Management Development & Research and pursuing
two years full time Post Graduate Diploma in Management (Rural Mgmt)
Emerging Economies
(PGDM-Rural Mgmt Emerging Economics), underwent two months of summer
internship with us from ……………….. to …………………..

2. During the summer internship, Mr / Ms ……………………………….. has

successfully completed the project titled ………………………… under the guidance
of (Name) …………………………….. (Designation) ………………………………

3. The Students performance during the summer internship and comments

on his project work are as under:-

……………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………
………………………………………………………………………………………………

………………………………………………………………………………………………

_______________________________________
(Signature of the Authorized Company Official)

Name: …………………………………………..

Designation: …………………………………....

Date: …………………………
 Acknowledgement

I would like to express my gratitude and appreciation to all those

who encouraged and motivate me to complete this report. A special
thanks to our Industry mentor Mr. Tejas Ramnathkar, Territory Sales in-
Charge AMUL, Mumbai, who helped me throughout to complete this
project and encouraged to focus on learning different methodologies at
every step.

I would also like to acknowledge my faculty mentor Prof. Aisha

Mohani with much appreciation for her crucial role in completion of this
report, who gave me thought provoking insights to think over multiple
ways and find the best possible ways out of them.

A special thanks goes to my team-mates, Kumar Sarthak and Abhilash

Chandel, who helped me at every step in gather all information and data
required for the project and actively participating with me for during
brain storming and market surveys.

Last but not the least, I would extend heartfelt gratitude to Prof. Swati
Sethi, Associate Dean, Rural Management for her expert guidance,
innovative suggestions and support me at every point during the course
of my internship.
 Executive Summary

AMUL, an Indian Dairy Co-operative based at Anand in Gujarat,

formed in 1948, managed by Gujarat Co-operative Milk Marketing
Federation (GCMMF).
Our objective was to study the market behaviour of various
stakeholders such as distributors, retailers and consumers towards the
acceptance of AMUL Fresh products like Curd, Fresh Paneer, Milk,
Buttermilk, Lassi and figure out with some opportunity spaces and
techniques to increase the demand and market share to enhance the
penetration of their products in Central Mumbai region.
After talking to distributors and retailers of that area, we come out
with some facts and figures which showed us the pain points and
strengths to focus upon. To fulfil our agenda, we conduct market surveys
through questionnaire and word of mouth in various areas and along with
that a Focused Group Discussion in area of Chunabhatti region, where we
target the audience of various housewives and distribute free samples of
AMUL Gold milk variant to understand the buying behavior of consumer.
Distribution and selling was the identical issue as most of the areas
were centric towards home delivery services. Also the awareness of
availability of different milk variants was very less which itself turn out to
be the major reason of less penetration and market share of AMUL fresh
products.
The ideas we come up with were:
● Collaboration of gymnasium integrated retailer, health conscious
people and AMUL.
● Select shops run by women as they are members of any co-
operatives or Groups and provide them AMUL products with some
extra benefits to promote our products.
So these were the marketing strategies suggested to increase the market
share and penetration from Central Mumbai team.
 Dairy Industry

1. Global Dairy Industry Scenario:

Dairy activities have been an integral part of our civilization since ancient
times. Dairy market has its web spread across the whole world as people rear
milch animals in almost every country. This sector also helps sustain the farm
and rural community worldwide. With an active consumption of dairy products
and their proactive function in the global food system, dairy plays a crucial role
in the growth of the economies worldwide.
Population growth, rising incomes, health consciousness and thriving food and
beverage industries are some of the many reasons due to which the multi-
billion-dollar global dairy market has been witnessing stable growth for the
past many decades. In recent years, however, the market has been impacted
due to an imbalance in the demand-supply ratio. Revenues have gone south
due to an excess milk production and a sluggish demand in the key import
markets such as China. Fortunately, a slow recovery has been forecasted from
2017 onwards. The long term result however remains positive. Increasing
population and changing in diet is demanding more protein diet. Global
Demand for dairy is expected to increase by 2.5% per annum to 2020.
Europe is leading producer of cow milk but India has highest number of cows
i.e. around 56.5 mn. As compared to cow milk, buffalo milk is produced in
fewer countries. It is estimated that Pakistan and India contributes around 80%
of global buffalo milk. Dairy Sector Market value worldwide in 2014 was
around 336 billion US dollar and that in 2019 is estimated to be around 442
billion US dollar. Global milk product is estimated to be 732 Million tons in
2019, out of total milk production around 80% is contributed by cow.
 2. Domestic Dairy Industry Scenario:

India is the world's largest producer and consumer of dairy. The dairy industry
in India was worth INR 5,000 billion in 2016. India is also globally the largest
milk producing country since 1997. In India, the co-operatives and private
dairies have access to only 20% of the milk produced. Approximately, 34% of
the milk is sold in the unorganized market while 46% is consumed locally. This
is in comparison to most of the developed nations where almost 90% of the
surplus milk is passes through the organized sector. Tthe dairy market in India
reached a value of INR 7,916 Billion in 2017. The market is expected to reach a
value of INR 18,599 Billion by 2023, exhibiting a CAGR of around 15% during
2018-2023.
Also it holds essential part in Rural Indian Economy. In spite of having highest
number of cows, milk production per animal is significantly low as compared to
other major dairy producer. Along with offering profitable business
opportunities, the dairy industry in India serves as a tool of socio-economic
development. Keeping this in view, the Government of India has introduced
various schemes and initiatives aimed at the development of the dairy sector
in the country.
Fig.1 – Market share in 2017 of top brands Fig.2 – Milk and Milk products share

Milk, The inspiration behind a revolution

Over seven decades ago the life of a farmer in Kaira was very much like that of
farmers anywhere else in India. His income was derived almost entirely from
seasonal crops. Many poor farmers faced starvation during off-seasons. Their
income from milch buffaloes was undependable. The milk marketing system
was controlled by contractors and middlemen. As milk is perishable, farmers
were compelled to sell their milk for whatever they were offered. Often they
had to sell cream and ghee at a throwaway price.
After preliminary trials, the Government of Bombay entered into an agreement
with Polsons Limited to supply milk from Anand to Bombay on a regular basis.
The arrangement was highly satisfactory to all concerned – except the farmers.
The Government found it profitable; Polsons kept a good margin. Milk
contractors took the biggest cut. No one had taken the trouble to fix the price
of milk to be paid to the producers. The discontent of the farmers grew. They
went in deputation to Sardar Patel, who had advocated farmers’ co-operatives
as early as 1942. Sardar Patel reiterated his advice that they should market
their milk through a co-operative society of their own. This co-operative should
have its own pasteurization plant. If their demand was rejected, they should
refuse to sell their milk to middlemen. The farmers’ deputation readily
accepted his proposal.
Sardar then sent his trusted deputy, Mr. Morarjibhai Desai, to Kaira District to
organize milk co-operative – and a milk strike if necessary. Mr. Desai held a
meeting in Samarkha village on January 4, 1946. It was resolved that milk
producers’ co-operative societies should be organized in each village of Kaira
District to collect milk from their member-farmers. The Government should
undertake to buy milk from the Union. If this wasn’t done, the farmers would
refuse to sell milk to any milk contractor in Kaira District. The Government
turned down the demand. The farmers called a ‘milk strike’. It lasted 15 days.
Not a drop of milk was sold to the milk merchants. No milk reached Bombay
from Anand, and the Bombay Milk Scheme almost collapsed. After 15 days the
milk commissioner of Bombay, an Englishman, and his deputy visited Anand,
assessed the situation and accepted the farmers’ demand.
This marked the beginning of the Kaira District Co-operative Milk Producers’
Union Limited, Anand. It was formally registered on December 14, 1946. Its
objective was to provide proper marketing facilities for the milk producers of
the district. The Union began pasteurizing milk in June 1948, for the Bombay
Milk Scheme – just a handful of farmers in two village co-operative societies
producing about 250 liters a day. This co-operative began with just two village
dairy cooperative societies and today is better known as AMUL Dairy.
 Fig.3 A – First building of Kaira District Co-operative Milk Producers’ Union
Limited, Anand
The then Prime Minister of India , Lal Bahadur Shastri decided to that this
approach should become the basis of National Dairy Development Policy. The
success of this Co- operative was majorly based on the fact that it was
sensitive to the needs of the farmers and responsive to their demands.

To carry out this , National Dairy Development Board was set up in 1965 with
the basic objective of replicating AMUL model country wide. Dr. Verghese
Kurien was chosen as the chairman to head the institution.

OPERATION FLOOD
Mission and Vision of White Revolution

The revolution was started to help farmers so that they can control , manage their resources
themselves.

The vision of this dairy development programme was to make India one of the largest milk
producer in the world.

Operation flood included the following objectives:-

1) Increase Milk Production

2) Augment Rural Incomes
3) Fair Prices for Consumers

White Revolution was one of the biggest dairy development movements, by

the Indian Government, in India in 1970. It was a step taken by the Indian
Government to develop and help the dairy industry sustain itself economically
by developing a co-operative, while providing employment to the poor
farmers.
The White Revolution helped increase milk productivity and milk was now sold
at competitive market prices. This program increased the demand for
development and production of healthy animals, use of modern technology in
milk production sector and networking between various small and large scale
dairy industries.

The White Revolution followed after the success of the Green Revolution and
the aim of White Revolution was to make India one of the largest milk
producers in the world.

White Revolution start?

The White Revolution, known as Operation Flood, was launched in 1970. It was
an initiative by India’s National Dairy Development Board (NDDB) and was the
world’s biggest dairy development programme. It transformed India from a
milk deficient nation into the world’s largest milk producers.
Operation Flood was based on the experimental pattern set up by Verghese
Kurien, chairman and founder of AMUL, who was named the Chairman of
NDDB and was also recognised as the architect of Operation Flood.

Under Verghese Kurien, the programme created national milk grid linking
producers throughout India with consumers in over 700 towns and cities,
reducing seasonal and regional price variations and ensuring that the milk
producers get a major share of the income generated from end consumers, by
forming co-operatives.

Father of the White Revolution

Verghese Kurien was the father of the White Revolution. He founded AMUL,
one of the largest milk producing companies in India. Kurien, along with his
friend H. M. Dalaya invented the process of making milk powder and
condensed milk from buffalo milk. Many companies were started under his
leadership and former Prime Miniter Lal Bahadur Shastri created the National
Dairy Development Board based on AMUL’s management, resource and
infrastructure arrangements.

4 Advantages of White Revolution

1. It ended the imports of milk solids in India and India started exporting
milk powder to many foreign nations.
2. Dairy industries and infrastructures modernised and expanded. Around
10 million farmers earn their income from dairy farming.
3. Dairy needs are met locally.
4. Genetic improvement of milking animals has increased due to cross
breeding.

3 Phases of White Revolution

Phase 1: This phase started in July 1970 with the objective of setting up dairy
cooperatives in 18 milk sheds in 10 states. They were to be linked with the four
best metropolitan markets. By the end of this phase in 1981 there were 13,000
village dairy cooperatives covering 15,000 farmers.

Phase 2: It aimed at building on the designs of phase 1 and on the assisted

Dairy development programmes in Karnataka, Rajasthan and Madhya Pradesh.
By the end of this phase in 1985 there were 136 milk sheds, 34,500 village
dairy cooperatives and over 36 lakh members.
Phase 3: This phase emphasised on consolidating the gains of the earlier two
phases by improving the productivity and efficiency of the dairy sectors for
long term sustainability. It ended in 1996 and by that time there were 73,300
dairy cooperatives and over 9.4 million farmer members.

AMUL: The Taste Of India

Anand Milk Union Limited or AMUL is an Indian dairy cooperative, based at
Anand in the state of Gujarat.
Founder: Verghese Kurien
Founded: 14 December 1946
CEO: R.S. Sodhi (30 Jun 2010– Present)
Headquarters: Anand, Gujarat
Number of employees: 750 employees of Marketing Arm & 3.6 million milk
producer members

AMUL is an Indian Dairy Cooperative brand, owned and marketed by GCMMF (

Gujarat Co - Operative Milk Marketing Federation Ltd .) . It was founded in 1946
to protest against exploitation of marginal milk producers done by middleman
and traders in Anand, a small town in the state of Gujarat in western India. The
co-operative was initially referred to as Anand Milk Union Limited, and now
popularly is known as AMUL.

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest

food product marketing organisation. It is the Apex organisation of the Dairy
Cooperatives of Gujarat, popularly known as 'AMUL',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. It is exclusive
marketing organisation of 'AMUL' and 'Sagar' branded products. It operates
through 56 Sales Offices and has a dealer network of 10000 dealers and 10 lakh
retailers, one of the largest such networks in India. GCMMF is India's largest
exporter of Dairy Products.

Year of Establishment 1973

Members 18 District Cooperative Milk Producers' Unions

No. of Producer Members 3.6 Million

No. of Village Societies 18,549
Total Milk handling capacity per day 30 Million litres per day
Milk Collection (Total - 2016-17) 6.44 billion litres
Milk collection (Daily Average 2016-17) 17.65 million litres
Milk collection (Daily Average 2016-17) 7800 Mts. per day
Sales Turnover -(2016-17) Rs. 27043 Crores (US $ 4.1 Billion)

AWARDS
 ● Dairy Excellence Award 2015-16 National Level
● GOLDEN PEACOCK ECO-INNOVATION AWARD 2016
● Bronze Trophy at the Indian Marketing Awards – 2014
● Finalist in World Beverage Innovation Awards - 2014
● CII NATIONAL AWARD FOR FOOD SAFETY 2013
● APEDA EXPORT AWARD 2011-12
● Srishti Good Green Governance award for the year 2013

SALES TURNOVER

AMUL Model: The Real Taste of Gujarat

The story that never loses its charm, the model that is the epitome of success:
The legend of AMUL and how it changed India’s landscape, going from a milk-
deficient country to becoming the world's largest exporter. Unlike the Gujarat
model, the AMUL model is the one we should celebrate.
AMUL Model has a three- tier cooperative structure. It consists of dairy co-
operative at the village level federated under milk union at the district level
and federation of milk union at the state level. In this milk collection is done at
the village level, milk procurement and processing is done the district level and
marketing of milk and milk products is done at state level.
 Fig. 3 B – Amul Model

The AMUL Model has helped India to emerge as the largest milk
producer in the world. More than 15 million milk producers pour their milk
in 1,44,500 dairy cooperative societies across the country. Their milk is
 processed in 184 District cooperative unions and marketed by 22 State
marketing Federations, ensuring a better life for millions.

Main Features of AMUL Model: -

a) Establishment of a direct linkage between milk producers and
consumers by eliminating Middlemen.
b) Milk Producers (farmers) control procurement, processing and
marketing.
c) Professional management.

Advertisement and Campaigns:

⮚ The White Revolution of India inspired the notable film- maker Shyam
Benegal to base his film Manthan (1976) on it.

⮚ AMUL girl used by AMUL in its advertising is referred to as the

advertising mascot. The AMUL girl advertising has often been described
as the best Indian advertising concepts because of their humour.

⮚ AMUL Girl and utterly butterly delicious campaign was highly successful
in Indian Market (in every segment).

⮚ The campaign was widely popular and was recorded in the Guinness book
of world records for the longest running successful campaign in the
world.

⮚ In the 1980s, cartoon artist Kumar Morey and script writer Bharat
Dabholkar had been involved with sketching the AMUL ads the latter
rejected the trend of using celebrities in advertisement campaigns.

⮚ AMUL hired Sylvester Dacunha in 1996. Since then they are designing
their marketing campaigns. Dacunha designed a campaign as series of
hoardings and topical ads, relating to day –to-day issues.
 AMUL FRESH
AMUL FRESH PRODUCT DIVISION
An AMUL segment which offers you a complete range of daily
consumable dairy products including Milk, Dahi, Buttermilk, Fresh Paneer and
Lassi. They come with a shelf life of 2 to 3 days max. Being a fast perishable
items and has to be delivered on time to consumers, it comes under VFMCG
category.

1. AMUL GOLD
The most FAT content milk by AMUL in Fresh division with FAT(%) 6.0 min and
SNF (%) 9.0 min. It has been processed with a technology called UHT,
hence also known as UHT milk. AMUL Gold Homogenized Standardized
Milk does not contain any preservatives and the Ultra High Temperature
technology ensures zero microbial activity.

Tip: AMUL Gold should be consumed by the people who have to work hard like
lifting heavy load, have to run here and there whole day, etc. so that
high fat content should be digested easily.

Available SKUs-
● 500ml Poly pack
● 1 litre Poly pack
● 5 litre Poly pack
 2. AMUL TAAZA

The most preferred AMUL milk variant with Fat (%) 3.0 min content and
SNF (%) *8.5 min. Shelf Life for this product is also 48 Hours from the date of
packing if kept under refrigeration below 8°C. It has also been processed with
UHT which ensures zero microbial activation, while preserving the maximum
flavour, taste, and nutritional value.

Available SKUs-
● 200ml Poly pack
● 500ml Poly pack
● 1 litre Poly pack
● 5 litre Poly pack

3. AMUL DAHI

● AMUL Masti Dahi made out of Pasteurised Toned Milk comes with a shelf life
of 7 days which could be extended to 15 days if kept in proper refrigeration
below 8°C. 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 for its nutritive values.

Available SKUs-
● 200gm Poly pack
● 400gm Poly pack
● 1 kg Poly pack
● 100gm Cup
● 200gm Cup
 ● 400gm Cup

4. AMUL BUTTERMILK
AMUL Buttermilk is produced with a scientific bacterial culture that improves
digestion. It is conventionally packed in pouches and easily available at
AMUL milk outlets spread over the major cities. Its shelf life has been
recorded as 48 Hours from the date of packing if kept under
Refrigeration below 8°C

Available SKUs-
● 200ml Poly pack
● 500ml Poly pack

5. AMUL FRESH PANEER

AMUL fresh paneer is pure, hygienic and rich in proteins. It contains high fat and
low moisture compared to loose paneer. It contains both the freshness of
loose dairy paneer and the quality and safety of packed product.

Available SKUs-
● 100gm block
● 200gm block
● 1kg block
 Problem Statement

Lower acceptance rate of AMUL fresh products among distinguished

stakeholder in Central Mumbai.

OUR OBJECTIVES

● To collect and analyse the data gathered for understand the potential of
market.
● To formalize various marketing strategies to attract new customers and
develop a large customer base by creating awareness about multiple
products.
● To implement feasible and sustainable solutions in order to increase the
market share and penetration.
 RESEARCH METHODOLOGY

Source of Data- Retailer Survey, Consumer Survey and Focus Group Discussion
Types of Research-
To understand their buying patterns of the consumers, Exploratory Research
was used and Quantitative Research was used to collect the sales data
from various retailers across the Central Mumbai region.

Sampling- The statistical method which is used to analyse a particular set of

observations taken from a universe/ population. During the duration of
the research, Stratified Sampling method was used for the consumer
survey and Convenience Sampling was used for the Retailers for the
analysis of the fetched data.

Target Audience-

Number of Retailers Covered 314

Number of Consumers surveyed 437

Number of members in Focus Group

8-9
Discussion

Tools Used for Data Analysis-

● Excel
 ● Pivot Table
● Pie Charts and Bar charts

Note: The purpose of carrying out the above mentioned research methods was to purely
understand the retailer and consumer perceptions, demands and behaviour towards
the products.

CURRENT POSITIONING

ANTOP HILL C JAIN SOCIETY

E
ANUSHAKTI N KING CIRCLE
T
NAGAR R KOLIVADA

A
CHEMBUR L MATUNGA

CHUNABHATTI M PRATIKSHYA

U
DHARAVI NAGAR
M
B
GTB NAGAR SION
A
I
VADALA
The research was conducted in the above mentioned areas in Central Mumbai
region. Retailer and Consumer survey was conduced in all the areas while the
Focus Group Discussion was carried out in Chunabhatti.

RETAILER SURVEY
Retailer surveys was the first step towards our objective. It was conducted in
all the 13 areas in Central Mumbai to understand the availability and retailer
perception towards the fresh products and AMUL fresh products as well.
This also included the data which included the market share and penetration of
AMUL fresh products as compared to its competitors.

Figure 4: - Market share of Milk

 Figure 5: -Market Share of Buttermilk

Figure 6: - Market Share of Dahi

The collected data about market shares of AMUL and its competitors in
different products helped us to do a competitive analysis amongst them.
It also enabled us to identify the areas that had major concerns with
respect to the product sales and availability.
Following were some of the major outcomes of the retail stores survey-
⮚ The retailer survey of 314 outlets helped us to conclude that AMUL
was the market leader in milk, buttermilk and dahi with a market
share of 35%, 63% and 37% respectively.
⮚ Although the figures looks good for AMUL overall in the Central
Mumbai, however it faced problems in certain areas. With a meagre
2.22% market share for AMUL milk in Matunga, the threats of
competitors taking away the market exists. Similar situations were
seen in areas like Chunabhatti and Anushakti Nagar which had a
market share of 11.42% and 8.71% for AMUL milk.
⮚ One of the major issues that was identified during the retailer survey
was lack of a proper distribution network. This resulted unavailability
of adequate amount of the products which forced consumers to
switch to a different brand.
⮚ While other brands provided a fair margin to the retailers for their
products, AMUL provided a quite stringent margin which created a
discomfort for the retailers to carry out their business.
⮚ Areas like Jain society, Matunga and Chunabhatti were home delivery
driven markets and were potential areas for AMUL products to be
marketed well.
⮚ Based on the retailer survey and calculated market share, 6 areas
were identified which had major problems and needed utmost
attention and action to be taken. The following table shows the
respective market shares of the identified areas.
 Figure 7: - 6 problematic areas

CONSUMER SURVEY

Total Consumers Surveyed: 437

Targeted Age Group: 20 Year to 70 Year

Consumer survey was carried out in all the 6 areas- Chunabhatti, Matunga,
Vadala, Jain Society and Chembur. King Circle was considered under Matunga
region. To carry out the consumer survey, a questionnaire was formed which
had questions targeting the buying behaviour of the consumers, purpose for
which they buy the products and frequency of purchase etc. The consumer
survey was carried out at random locations in the above mentioned areas. 117
responses were recorded in Chunabhatti which was the highest among all the
areas. A detailed area-wise analysis was carried out for the 437 surveys and
following were the results-

Figure 8: -Chunabhatti Analysis

Figure 9: -Vadala Analysis

Figure 10: -Matunga Analysis

Figure 11: -Chembur Analysis

 Figure 12: -Jain Society Analysis

After a segmented consumer survey in those 6 identified areas, there were

some major outcomes that were recorded. They are as follows-

⮚ The results of the consumer survey of 437 surveys cleared stated that
AMUL lagged behind in these areas and the brands like Mahanand,
Gokul were the way ahead of AMUL as far as market leader was
concerned. While Mahanand and Gokul steered Vadala and Matunga
respectively, Chembur was dominated by Mother Dairy with a whopping
52.91% consumers preferring it.
⮚ Despite of the low market share and consumer preference for AMUL, we
could identify places like Chunabhatti and Matunga which had great
potential for AMUL from the home delivery point of view.
⮚ The low market shares and consumer preference was the result of lack
of a proper distribution, awareness of products and perception of
people towards the products
 ⮚ There were cases of brand loyalty wherein people were using a
particular brand for a long duration viz 25 years and were unwilling to
change their brand.
⮚ The potential consumers who were willing to switch their brands fell
mostly under the age group of 21-30.
⮚ A lack of awareness was observed in most of the areas especially for
products like AMUL gold, cow milk and fresh paneer which was due to
lack of proper promotional activities.

FOCUS GROUP DISCUSSION

Number of Members: 9

Age group of the group: 31-50 years

The focus group discussion was conducted so as to understand the problems

and the buying behaviour at a root level. The FGD was conducted at a
Gurudwara in Chunabhatti. The focus group consisted of 9 female members
from the society. The FGD started with questions targeted towards the current
pattern of consuming milk and factors behind buying the existing milk brand.
The discussion was further directed towards the comparison of loose milk (80-
85 percent loose milk user) versus Packed milk.

The discussion was moderated towards comparing the quality and usage of
branded and packaged products with the loose products. The health benefits
and hygiene factors were explained to them as a result of which there was a
change in the mind-set of the group towards the packaged products.

Blind Test conducted by our team, proved to be a game changer of today’s

discussion in which we offered them to taste our milk variant AMUL Gold which
was not known to them. Surprisingly, they asked us about the brand of the milk
which was liked by all the 8 members. This in turn encouraged to pitch our
product to them.

Major Outcomes:

1. Availability of AMUL products and its Distribution channel remain one of

the major concerns.
2. That area is dominated by Loose milk mainly because of the role of
influencer in the family & brand stickiness.
3. It was a Punjabi dominated area so most of the focused group member
were Punjabi women in which they complaint about less cream
conversion from AMUL milk compared to loose milk.
 4. Our Blind test of AMUL Gold proved to be the game changer for thinking
them to convert from usage of existing brand especially due to thickness
& taste of the milk.

Few of mahanand users are willing to change for AMUL Gold if it is provided by
Home delivery boys.

EXPERT INTERVIEW

Interviewed: Mr. Sandeep Bharade

Designation: Branch Manager, AMUL (GCMMF) Mumbai
Aim: To understand Mumbai market with respect to AMUL & Business of the
dairy industry as a whole

We Started the interview with asking about the current scenario of the fresh
product division in Mumbai market. After that we shifted towards the current
marketing strategies that are being implemented AMUL. The interview was then
driven towards the competition AMUL faces with respect to Milk, Buttermilk and
Dahi in Mumbai Market. Then we focused on different variants of the products.
We also asked him about other companies as how they see them as a competitor
and what they think that who is the closest competitor to them. Eventually, the
interview moved towards the issues faced by the company in previous years and
how they tackled them. Reasons for the problems that came out from the survey
were then focused on. Then we asked him about the system, that how the system
works in AMUL for a new distributor or stakeholder. And lastly, we talked about
the perception regarding loose milk and pouch milk.

Major Outcomes:

✔ AMUL is very strong in Central Mumbai among all the areas of Mumbai. It
has a very strong hold in Mulund, Kurla, Sion whereas it is almost a
monopoly in the western Mumbai suburban areas of Borivali, Dahisar, etc.
✔ AMUL has almost 16 lakh litres of sales of milk in Mumbai. Out of which
major sales is of AMUL Taaza. Dahi has around 50 metric tonnes of sales
while buttermilk accounts to 3 lakh litres.
✔ Distribution Channel is little weak in Sion area in comparison to other
Central Mumbai areas.
✔ Fresh Paneer penetration is the worst among the fresh products division.
✔ Main issue with the retailers/vendors is the margin given to them. But
the issue is neutralized by volume they sell.
✔ Proper area demarcation strategy has worked in some areas in Mumbai
market.
✔ Tie up with a daily subscription service company for home delivery name
SUPR DAILY. It’s an application based delivery service which is providing
milk and milk products on subscription bases.
✔ Good supply chain results in no shortage of fresh products, even if
shortage is faced in the market.
✔ AMUL is also looking to come up with the online platform for milk
service.
✔ They are also looking forward for procuring cow milk with good FAT
from other states in Maharashtra.

INFERENCES

● After analysing the Questionnaire, it is concluded that AMUL has a

good reputation amongst its customers and created many satisfied
customers but lack proper distribution and marketing channels.
 ● Very few distributors are in a particular area which not only resulted
in improper distribution but also resulted in monopoly of these
distributors.
● The situation can be improved by sound marketing and proper
distribution channel which results in delivery on time.
● AMUL has a good reputation and name because of existence in the
market for so many years especially through the product “AMUL
Butter”.
● Within a short span of time AMUL has launched so many products
which lack awareness amongst consumers as well as availability.
● AMUL is a good example of firms that are able to develop control
process through better use of operational practices and supply chain
coordination are the one that are able to serve large volumes and
enjoy top line growth in revenue.
● AMUL is adopting defensive strategies, moving consumers to loose
milk to packaged milk and gradually move them up the value chain.
Being exposed to brand, it is natural for customer to use more
products.
● AMUL lacks the use of BTL activities to target the middle class and
lower middle class section of the society which in turn affects their
sales and awareness.
● Most of the areas were dominated by Home Delivery and it was a
perfect opportunity space for AMUL to brand their product.

On the basis of the above inferences and surveys, few marketing strategies
were formulated so as to better the situation of AMUL products in the
Central Mumbai region. These startegies were derived with an aim to
increase awareness and availability of the products.

Market Analysis done by using various

Market Research Strategies
After Inferences, we did the analysis for the company and their products. We
differentiated the strong part as well as the weak/ pain points of the company to
focus upon. We create a Business Canvas Model which structures the Key
features and activities of the business along with the values and customer
segments as well. We also focused on the opportunities part and suggested few
solution on the bases of our survey and secondary data.

Few Market Research Strategies we did :-

1. SWOT Analysis
2. BCM (Business Canvas Model)
3. STPD Analysis
 Canvas
STPD Busin
Analysis ess
Canvas

PROPOSED STRATEGIES
 1. GYMNASIUM COLLABORATIONS- Results of the consumer survey
showed us an opportunity in the age group of 21-30 who were willing to
switch to AMUL and they were also used to go to gymnasiums and were
fitness enthusiasts. Considering that, we made a sample diet chart that
will be provided to the members in the gymnasiums and identified the
products which matched with the product line of AMUL. For instance, a
morning breakfast would have a banana shake and milk is a primary
ingredient for preparing it. So AMUL Gold can be a potential product for
the customer. We also prepared the daily expense that a customer will
bear if he uses the products of AMUL according to the calories.
The whole idea was to create a push strategy wherein the influencer (here, it’s
the trainer) would suggest the members with AMUL products. In return,
AMUL would be responsible for the branding of that particular
gymnasium by creating posters/ banners/ pamphlets and to provide
some goodies to the trainers as a token of appreciation. As a part of this
strategy, we contacted the following gymnasiums and they were willing
to collaborate with AMUL for this venture-
● Fitness Ahead, Chunabhatti
● Amey Fitness Zone, Chunabhatti
● Your Fitness Club, Sion

A sample pamphlet was also designed keeping in mind the promotions

for both the gymnasium as well as AMUL. While the front side of the
pamphlet displayed the details of the gym and services offered, the back
side displayed the various products of AMUL that is there in the market.
It also had the discounts and offers which would be provided by both
AMUL and the gymnasium. The below mentioned picture shows the
pamphlet design.

Figure 12: -Pamphlet Design

Along with this, we also suggested a monthly subscription plan for the
members which will allow them to directly take away the kit from the
gym itself. Following was the list of products, price to the customer and
retailer margin-
 Table 1: -Margin Calculation

The retailer margin per kit was found to be Rs. 4.366. This was used to
find out the margin earned by the retailer in a month for a sample 40 gym
members who would opt for a monthly subscription.

Total Margin for 30 days = Rs.4.366 * 30= Rs.130.98

Total Margin earned by Retailer for a sample 40 gym members=

Rs.130.98 * 40 = Rs. 5239.20

Further, we used this margin to calculate the total earnings for AMUL in
a month with the mentioned subscription model.

Total Sales by Retailer= Rs. 76.90(per day) * 30 * 40(sample customers)

= Rs. 92,280

Total Retailer Margin= Rs. 5239.20

Total Earnings (if applied) to AMUL= Rs. 92,280- Rs. 5239.20

= Rs. 87040.80
 2. Home Delivery- During our consumer survey, it was found that major
milk consumption in households was through the home delivery section,
which opened up an opportunity space to gain a major market share
from this particular segment. Therefore, a market strategy to provide a
Welcome Kit to the consumers was formulated. This welcome kit was
for the consumers who would opt for a monthly subscription and to
families whose per day milk consumption was over a litre.
The kit would consist of AMUL Gold milk (1 litre), Fresh Paneer (100gm), Butter
milk (500ml). An analysis was carried out to calculate the monthly profit
margin for one subscribed customer.

Profit per kit= [(52-50.38) *30]- [29.44]- [9.45] = Rs.9.71

MRP of 1L AMUL Gold

Retailer price of Buttermilk
Retailer price

Retailer price of Paneer

This strategy also included added incentives for Home Delivery persons who
would be paid Rs.1-2 additionally by consumer and a small amount by
the company from the above profit.
 3. SHG MODEL- The SHG model was suggested keeping in mind the idea
of women empowerment. There were stores that were run by the
women which would be the best fir for this strategy. The central idea
was to create a model that would cater the need of both the company as
well as the retailer.
On one hand, she would act as a brand ambassador for AMUL to endorse the
products to the people who live around that particular store and
purchase items from there. On the other hand, she will also act as a
retailer for the same group of people. The company would provide her
incentives as a women empowerment initiative.

Figure 13: -SHG Model

 FUTURE SCOPE

The following were considered which had a future scope: -

● Milk vending machines: Vending machines can be installed at various

places, especially near housing societies where people can go and get
pouch milk from the machine. The initial investment in installation
can range from Rs.1-2 Lakhs. The Return on investment once the
machine has been installed has been calculated to be around Rs.1.53
Lakhs per year.

● On various festivals such as DahiHandi, Ganesh Chaturthi, Navratri,

new products can be launched or the existing ones can be promoted.
Also attracting customers with offers and discounts can be done
during this time.

● Various community events can be sponsored and organized in local

areas. This will help create more awareness of products and might
also strengthen the bond of the brand with the local community.

● Summer camp activities can be targeted in schools or various

organizations that conduct summer camps. Children influence the
buying choices in families to a lot of extent especially when they are
the consumers of milk.
 RECOMMENDATIONS

This industry is most competitive industry; there are large numbers of

competitors in this field. In such condition a small loop may create big
problems following things are Necessary to improve the sales in the city:

4. Advertisement
5. Distribution
6. Service
7. Credit policy
8. Replacement policy

1. Advertisement:
This is the most important factor that affects both the sales as well as the
consumer attention. AMUL has to take aggressive advertising centred
specially for newly launched products.

2. Distribution
The replenishment is average and often damaged material came on
account of improper handling by distributors due to this it is difficult to
retain the customer. The number of distributor operating in an area also
very low in number which also adds to improper distribution.

3. Service
It is the critical factor in the success of any brand. There is no doubt that
AMUL services are good but it needs little more improvement to
completely capture the market.

4. Credit policy
The company should give credit period policy to their distributors so that
it will lead to increase in their sales and gain more customers.
 5. Replacement policy
AMUL is already blamed for poor replacement policy; it has to give
certain kind of replacement policy to make its product more acceptable to
the outlets.

LIST OF TABLES AND FIGURES

Figure 1 Market share in 2017 of top brands

Figure 2 Milk and Milk products share
Figure 3 A First building of Kaira District Co-operative Milk Producers’
Union Limited, Anand
Figure 3 B Amul Model
Figure 4 Market share of Milk
Figure 5 Market Share of Buttermilk
Figure 6 Market Share of Dahi
Figure 7 6 problematic areas
Figure 8 Chunabhatti Analysis
Figure 9 Vadala Analysis
Figure 10 Matunga Analysis
Figure 11 Chembur Analysis
Figure 12 Jain Society Analysis
Figure 13 Pamphlet Design
Figure 14 SHG Model
Table 1 Margin Calculation
 REFERENCE

1. https://www.imarcgroup.com/dairy-industry-in-india- Dairy Industry

Secondary Data
2. https://www.google.co.in/search?q=dairy+industry+growth+graph&s
ource=lnms&tbm=isch&sa=X&ved=0ahUKEwjAy42drK7cAhXIpI8KHbIJ
C1sQ_AUICigB&biw=1366&bih=613#imgdii=3whTmsKsInltRM:&imgrc
=iwYt68YiQLwhcM:- Image growth
3. http://www.AMUL.com/- Company Information
4. http://www.nddb.org/information/stats/milkprodindia
5. Wikipedia