Amul

Amul butter v/s Britannia (Product Strategy)
0Title :
FOOD INDUSTRY
The food industry is the complex, global collective of diverse businesses
that together supply much of the food energy consumed by the world
population. Only subsistence farmers, those who survive on what they
grow, can be considered outside of the scope of the modern food industry.
The food industry includes:
Regulation: local, regional, national and international rules and

regulations for food production and sale, including food quality and food
safety, and industry lobbying activities
Education: academic, vocational, consultancy
Research and development: food technology
Financial services: insurance, credit
Manufacturing: agrichemicals, seed, farm machinery and supplies,

agricultural construction, etc.
Agriculture: raising of crops and livestock, seafood
Food processing: preparation of fresh products for market, manufacture

of prepared food products
Marketing: promotion of generic products (e.g. milk board), new

products, public opinion, through advertising, packaging, public relations,
etc
Wholesale and distribution: warehousing, transportation, logistics
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Retail: supermarket chains and independent food stores, direct-to-

consumer, restaurant, food services
ADVANTAGE OF INDIA UNDER FOOD INDUSTRY:
India is one of the largest food producers in the world
India has diverse agro-climatic conditions and has a large and diverse raw
material base suitable for food processing companies 7
Investment requirement of around US$ 15 billion exists in the food

processing sector
India is looking for investment in infrastructure, packaging and marketing
India has huge scientific and research talent pool
A largely untapped domestic market of 1000 million consumers
300 million upper and middle class consume processed food
200 million more consumers expected to shift to processed food by 2010
Well developed infrastructure and distribution network
Rapid urbanization, increased literacy, changing life style, increased

number of women in workforce, rising per capita income- leading to rapid
growth and new opportunities in food and beverages sector
50 per cent of household expenditure by Indians is on food items
Strategic geographic location (proximity of India to markets in Europe and

Far East, South East and West Asia)
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Under the food industry, Dairy product is very important part of food
processing. Dairy processing is acting good role in India.
Dairy Processing
India ranks first in the world in terms of milk production. Indian production
stands at 91 million tones growing at a CAGR of 4 per cent. This is
primarily due to the initiatives taken by the Operation flood programmes
in organizing milk producers into cooperatives; building infrastructure for
milk procurement, processing and marketing and providing financial,
technical and management inputs by the Ministry of Agriculture and
Ministry of Food Processing Industries to turn the dairy sector into viable
self-sustaining organized sector. About 35% of milk produced in India is
processed. The organized sector (large scale dairy plants) processes
about 13 million tones annually, while the unorganized sector processes
about 22 million tones per annum. In the organized sector, there are 676
dairy plants in the Cooperative, Private and Government sectors
registered with the Government of India and the state Governments. 8
Major Indian and Overseas Players in the Food industry
ITC Limited
Parle Products Pvt. Ltd.
Agro Tech Foods
Amul
Perfetti India Ltd.
Cadbury India Ltd.
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PepsiCo India Holdings
Nestle India Pvt. Ltd.
Britannia Industries Ltd.
Hindustan Unilever Limited
MTR foods limited
Godrej industries Limited Dabur India Ltd.
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India has a unique pattern of production, processing and

marketing/consumption of milk, which is not comparable with any large
milk producing country. Approximately 70 million rural households
(primarily, small and marginal farmers and landless labourers ) in the
country are engaged in milk production. Over 11 million farmer are
organized into about 0.1 million village Dairy Cooperative Societies (DCS)
(about 110 farmers per DCS). The cumulative milk handled by DCS across
the country is about 18 million kg of milk per day. These cooperatives
form part of a national milk grid which links the milk producers throughout
India with consumers in more than 700 towns and cities bridging the gaps
on account of seasonal and regional variations in the availability of milk.
The Ministry of food Processing Industries is promoting organized Dairy
processing sector to accomplish upcoming demands of processed dairy
products and helping to identify various areas of research for future
product development and quality improvement to revamp the Indian dairy
export by way of providing financial assistance to the dairy processing
units. 32 Units have been sanctioned financial assistance (Rs.591 lakhs)
under the plan scheme of the Ministry during the year 2006-07.
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History
Amul (AMUL means "priceless" in Sanskrit. The brand name

"Amul," from the Sanskrit "Amoolya," was suggested by a quality
control expert in Anand. Formed in 1946, is a dairy cooperative in
India. It is a brand name managed by an apex cooperative organisation,
Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which
today is jointly owned by some 2.8 million milk producer in Gujarat India.
AMUL is based in Anand, Gujarat and has been an example of a co-

operative organization's success in the long term. It is one of the best
examples of co-operative achievement in the developing economy
“Anyone 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 world’s biggest vegetarian cheese brand.
Amul is the largest food brand in India and world's Largest Pouched
Milk Brand with an annual turnover of US $1050 million (2006-07.
Currently Unions making up GCMMF have 2.8 million producer members
with milk collection average of 10.16 million litres per day. Besides India,
Amul has entered overseas markets such as Mauritius, UAE, USA,
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Bangladesh, Australia, China, Singapore, Hong Kong and a few South

African countries. Its bid to enter Japanese market in 1994 did not
succeed, but now it has fresh plans entering the Japanese markets.
Company information
The Gujarat Cooperative Milk Marketing Federation Ltd, Anand

(GCMMF) is the largest food products marketing organisation of India. It is
the apex organization of the Dairy Cooperatives of Gujarat. This State has
been a pioneer in organizing dairy cooperatives and our success has not
only been emulated in India but serves as a model for rest of the World.
Over the last five and a half decades, Dairy Cooperatives in Gujarat have
created an economic network that links more than 2.8 million village milk
producers with millions of consumers in India and abroad through a
cooperative system that includes 13,141 Village Dairy Cooperative
Societies (VDCS) at the village level, affiliated to 13 District Cooperative
Milk Producers’ Unions at the District level and GCMMF at the State level.
These cooperatives collect on an average 7.5 million litres of milk per day
from their producer members, more than 70% of whom are small,
marginal farmers and landless labourers and include a sizeable population
of tribal folk and people belonging to the scheduled casts.
The turnover of GCMMF (AMUL) during 2008-09 was Rs. 67.11

billion. It markets the products, produced by the district milk unions in 30
dairy plants, under the renowned AMUL brand name. The combined
processing capacity of these plants is 11.6 million litres per day, with four
dairy plants having processing capacity in excess of 1 million Litres per
day. The farmers of Gujarat own the largest state of the art dairy plant in
Asia – Mother Dairy, Gandhinagar, Gujarat - which can handle 2.5 million
litres of milk per day and process 100 MTs of milk powder daily. During
the last year, 3.1 billion litres of milk was collected by Member Unions of
GCMMF. Huge capacities for milk drying, product manufacture and cattle
feed manufacture have been installed. All its products are manufactured
under the most hygienic conditions. All dairy plants of the unions are ISO
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9001-2000, ISO 22000 and HACCP certified. GCMMF (AMUL)’s Total Quality
Management ensures the quality of products right from the starting point
(milk producer) through value chain until it reaches the consumer.
Ever since the movement was launched fifty-five years ago,

Gujarat’s Dairy Cooperatives have brought about a significant social and
economic change to our rural people. The Dairy Cooperatives have helped
in ending the exploitation of farmers and demonstrated that when our
rural producers benefit, the community and nation benefits as well. The
Gujarat Cooperative Milk Marketing Federation Ltd. cannot be viewed
simply as a business enterprise. It is an institution created by the milk
producers themselves to primarily safeguard their interest economically,
socially as well as democratically. Business houses create profit in order to
distribute it to the shareholders. In the case of GCMMF the surplus is
ploughed back to farmers through the District Unions as well as the village
societies. This circulation of capital with value addition within the
structure not only benefits the final beneficiary – the farmer – but
eventually contributes to the development of the village community. This
is the most significant contribution the Amul model co-operatives has
made in building Nation.
Methodology ::
TITLE OF THE STUDY

A study of the of AMUL BUTTER ‟ beverages products in the market to
compete with Britannia.
OBJECTIVE OF THE RESEARCH
To find out the “AMUL BUTTER‟ can only a product to dominate the dairy
product market
To find out the factors which Amul can stay in market since last so many
year.
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PROBLEM STATEMENT
where Amul had penetration for its products, this study is intended to find
out the percentage of Amul products exists now and find out the factors
that influence the buying decision of retailers of beverage products.
SCOPE OF THE STUDY

The scope of the study is limited solely to the markets visited by the
researcher for the purpose of research; this may hence not be a total
reflection of the penetration of AMUL products for all the retail outlets in
Cochin.
SOURCES OF DATA
Primary sources
The primary data was collected through questionnaires. They were filled
using the scheduled method of data collection by the researcher.
Secondary sources
The secondary sources were used only for collecting information
regarding the sample, they were however not used for analysis.
RESEARCH DESIGN
A Research design specifies the methods and procedures for conducting a
particular study. It is a map (or) blue print to which the research is to be
conducted. Descriptive research design has been considered as a suitable
methodology for present study and for data analysis.
SAMPLING DESIGN
The sampling design used was Convenience sampling, which is a
non-probability sampling method. The convenience factors were the
availability and approachability of the respondents.
LIMITATIONS OF THE RESEARCH

The limitations of the research were as follows
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1. Lack of proper experience on the part of the researcher in conducting

such studies in the past.
2. Time frame required was not enough to survey more number of outlets.
ANALYSIS TECHNIQUES
Quantitative analysis is performed using the data collected at each
outlet to estimate the presence of Amul products.
Tools Utilized
➢ Percentage Analysis
➢ Graph Chart
Amul Brand Building
GCMMF (AMUL) has the largest distribution network for any FMCG
company. It has nearly 50 sales offices spread all over the country, more
than 3,000 wholesale dealers and more than 5,00,000 retailers. AMUL is
also the largest exporter of dairy products in the country. AMUL is
available today in over 40 countries of the world. AMUL is exporting a
wide variety of products which include Whole and Skimmed Milk Powder,
Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee) and Indigenous
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Sweets. The major markets are USA, West Indies, and countries in Africa,
the Gulf Region, and (SAARC) neighbours.
In September 2007, Amul emerged as the leading Indian brand

according to a survey by synovate to Asia’s top 1000 Brands.
Products
Amul Butter Amul Lite

Delicious Table Margarine
Amul's product range includes milk powders, milk, butter, ghee,

cheese, curd, chocolate, ice cream, cream, shrikhand, paneer, gulab
jamuns, flavoured milk, basundi, 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.
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In August 2007, Amul introduced Kool Koko, a chocolate milk brand

extending its product offering in the milk products segment. Other Amul
brands are Amul Kool, a low calorie thirst quenching drink; Masti Butter
Milk; Kool Cafe, ready to drink coffee and India’s first sports drink stamina.
Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy

Federation Marketing Award for 2007.
Mascot
Since 1967 Amul products' mascot has been the very recognisable
"Amul baby" (a chubby butter girl usually dressed in polka dotted dress)
showing up on hoardings and product wrappers with the equally
recognisable tagline Utterly Butterly Delicious Amul.The mascot was first
used for Amul butter. But in recent years in a second wave of ad
campaign for Amul products, she has also been used for other product
like ghee and milk.
Advertise
An Amul butter ad on Pakistan's Kargil War fiasco. The image shows

the "Amul baby" in between George Fernandes and Atal Behari Vajpayee.
Its advertising has also started using tongue-in-cheek sketches

starring the Amul baby commenting jovially on the latest news or current
events. The pun in her words has been popular. Amul outdoor advertising
uses billboards, with a humorous take on current events and is updated
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frequently. The Amul ads are one of the longest running ads based on a
theme, now vying for the Guinness records for being the longest running
ad campaign ever with Smokey Bear. Sylvester da Cunha was the
managing director of the advertising agency, ASP, that created, in 1967,
the campaign.
Rivals
The success of Amul resulted in similar organizations being setup by

state governments throughout India, most of which had reasonable
success. Examples are Milma in Kerala, Vijaya in Andhra Pradesh, Aavin in
Tamil Nadu, K.M.F (Nandini) in Karnataka, Sudha in Bihar, Omfed in Orissa,
saras in Rajasthan, Parag in Uttar Pradesh, Verka in Punjab, Aanchal in
uttaranchal, Vita in Haryana and others.
Britannia
Eat healthy Think better
Britannia Industries Limited is an Indian company based in Kolkata

that is famous for its Britannia and Tiger brands of biscuit, which are
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highly recognised throughout the country. Britannia is one of India’s

leading biscuit firms, with an estimated 38% market share.
The Company's principal activity is the manufacture and sale of

biscuits, bread, rusk, cakes and dairy products.
The Britannia's fame is largely acknowledged through the colourful

Britannia logos that Indian cricketers such as Virender Sehwag and Rahul
Dravid wear on their bats.
Britannia, one of the premier food product companies in India.

Britannia started as a small biscuit company in 1892 and has grown to a
household name. Britannia started its business in Calcutta (now Kolkata)
with an initial investment of Rs. 295. From thereon, Britannia's business
flourished acquiring a reputation for quality and value.Britannia Industries
Ltd. has a number of awards and accolades in its name like. Forbes Global
rated Britannia 'One amongst the Top 200 Small Companies of the World'.
The Economic Times pegged Britannia India's 2nd Most Trusted Brand.
Activities
Britannia product line includes biscuits, snacks, packed milk, cheese,

butter, buttermilk and yogurt. Britannia owns popular brands like :
• NutriChoice SugarOut.
• NutriChoice Digestive Biscuit.
• Treat Fruit Rollz.
• New Britannia Milk Bikis.
• Britannia Marie Gold Doubles.
• Britannia 50-50.
• Tiger.
History
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Britannia Industries Limited is an Indian company based in Kolkata

that is famous for its Britannia and Tiger brands of biscuit, which are
highly recognised throughout the country. Britannia is one of India’s
leading biscuit firms, with an estimated 38% market share.
The Company's principal activity is the manufacture and sale of biscuits,

bread, rusk, cakes and dairy products.
The Britannia's fame is largely acknowledged through the colourful

Britannia logos that Indian cricketers such as Virender Sehwag and Rahul
Dravid wear on their bats.
It was started way back in 1892 with an investment of Rs. 295.

Initially, biscuits were manufactured in a small house in central Kolkata.
Later, the business was acquired by the Gupta brothers and operated
under the name of V.S. Brothers. In 1918, C H Holmes, an English
businessman in Kolkata was taken as a partner and The Britannia Biscuit
Company Limited (BBCo) was launched. The Mumbai factory was setup in
1924 and Peek Freans, UK acquired a controlling interest in BBCo. Biscuits
were in big demand during World War II, which gave a fillip to the
company’s sales. The company name was changed to the current
Britannia Industries Limited in 1979. In 1982 Nabisco Brands Inc., USA
became a major foreign shareholder
Kerala businessman K. Rajan Pillai secured control of the group in

the late 1980s, becoming known in India as the 'Biscuit King'. In 1993, the
Wadia Group acquired a stake in ABIL, UK and became an equal partner
with Groupe Danone in Britannia Industries Limited. In what The Economic
Times referred to as one of [India's] most dramatic corporate sagas, Pillai
ceded control to Wadia and Danone after a bitter boardroom struggle,[4]
then fled his Singapore base to India in 1995 after accusations of
defrauding Britannia, and died the same year in Tihar Jail.
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Dairy products
Dairy products contribute close to 10 per cent to Britannia's revenue.

Britannia trades and markets dairy products, and its dairy portfolio grew
at 47% in 2000-01 and by 30% in 2001-02. Britannia holds an equity stake
in Dynamix Dairy and had outsourced the bulk of its dairy products from
its associate. Its main competitors are Nestle India, and the National Dairy
Development Board (NDDB),and amul (GCMMF). The story of one of
India's favourite brands reads almost like a fairy tale. Once upon a time, in
1892 to be precise, a biscuit company was started in a nondescript house
in Calcutta (now Kolkata) with an initial investment of Rs. 295.
The company we all know as a britannia today.
The beginnings might have been humble-the dreams were anything but.
By 1910, with the advent of electricity, Britannia mechanised its
operations, and in 1921, it became the first company east of the Suez
Canal to use imported gas ovens. Britannia's business was flourishing.
But, more importantly, Britannia was acquiring a reputation for quality
and value. As a result, during the tragic World War II, the Government
reposed its trust in Britannia by contracting it to supply large quantities of
"service biscuits" to the armed forces.
As time moved on, the biscuit market continued to grow… and Britannia
grew along with it. In 1975, the Britannia Biscuit Company took over the
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distribution of biscuits from Parry's who till now distributed Britannia

biscuits in India. In the subsequent public issue of 1978, Indian
shareholding crossed 60%, firmly establishing the Indianness of the firm.
The following year, Britannia Biscuit Company was re-christened Britannia
Industries Limited (BIL). Four years later in 1983, it crossed the Rs.100
crores revenue mark.
On the operations front, the company was making eqally dynamic strides.
In 1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled
its new corporate identity - "Eat Healthy, Think Better" - and made its first
foray into the dairy products market. In 1999, the "Britannia Khao, World
Cup Jao" promotion further fortified the affinity consumers had with ‘Brand
Britannia’.
Britannia strode into the 21st Century as one of India's biggest

brands and the pre-eminent food brand of the country. It was equally
recognised for its innovative approach to products and marketing: the
Lagaan Match was voted India's most successful promotional activity of
the year 2001 while the delicious Britannia 50-50 Maska-Chaska became
India's most successful product launch. In 2002, Britannia's New Business
Division formed a joint venture with Fonterra, the world's second largest
Dairy Company, and Britannia New Zealand Foods Pvt. Ltd. was born. In
recognition of its vision and accelerating graph, Forbes Global rated
Britannia 'One amongst the Top 200 Small Companies of the World', and
The Economic Times pegged Britannia India's 2nd Most Trusted Brand.
Today, more than a century after those tentative first steps,

Britannia's fairy tale is not only going strong but blazing new standards,
and that miniscule initial investment has grown by leaps and bounds to
crores of rupees in wealth for Britannia's shareholders. The company's
offerings are spread across the spectrum with products ranging from the
healthy and economical Tiger biscuits to the more lifestyle-oriented
Milkman Cheese. Having succeeded in garnering the trust of almost one-
third of India's one billion population and a strong management at the
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helm means Britannia will continue to dream big on its path of innovation
and quality. And millions of consumers will savour the results, happily
ever after
Joint venture with New Zealand Dairy
On 27 October 2001, Britannia announced a joint venture with

Fonterra Co-operative Group of New Zealand, an integrated dairy
company from procurement of milk to making value-added products such
as cheese and buttermilk. Britannia planned to source most of the
products from New Zealand, which they would market in India. The joint
venture will allow technology transfer to Britannia. Britannia and New
Zealand Dairy each holding 49% of the JV, and the remaining 2 per cent
held by a strategic investor. Britannia has also tentatively announced that
its dairy business would be transferred and run by the joint venture. The
authorities' approval to the joint venture obliged the company to start
manufacturing facilities of its own. It would not be allowed to trade,
except at the wholesale level, thus pitching it in competition with Danone,
which had recently established its own dairy business. [edit] Biscuits
The company's factories have an annual capacity of 433,000

tonnes.[1] The brand names of biscuits include VitaMarieGold, Tiger,
Nutrichoice Junior,Good Day, 50 50, Treat, Pure Magic, Milk Bikis, Good
Morning, Bourbon, Thin Arrowroot, Nice and many more.
Tiger, the mass market brand, realised $150.75 million in sales

including exports to countries including the U.S. and Australia, or 20% of
Britannia revenues in 2006.
The company alleged that Danone has violated its intellectual

property rights in the Tiger brand by registering and using Tiger in several
countries in 2006 without the consent of the Britannia Board. Managing
Director Vinita Bali claims the company found out in 2004 Danone
launched the Tiger brand in Indonesia in 1998 and later in Malaysia,
Singapore, Pakistan and Egypt when it attempted to register the Tiger
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trademark in some of these countries.[8] Whilst it was initially reported in

December 2006 that agreement had been reached,[9] it was reported in
September 2007 that a solution remained elusive.[8] In the meantime
since Danone's biscuit business has been taken over by Kraft, the Tiger
brand of biscuits in Malaysia has been renamed Kraft TiGER Biscuits
beginning September 2008.
Britannia initiated legal action against Danone in Singapore in

September 2007. The dispute has been resolved with Denone paying Rs
220 Million for utilizing the brand, and Britannia securing legitimate right
to use the Tiger brand worldwide.
The Wadia Group (parent company of Britannia) along with Groupe

Danone of France has turned up to be an International FMCG Major
specializing in Fresh Dairy Products, Bottled Water and Biscuits/Cereals.
One of the World leaders in the food industry, some of its achievements
are:
• No # 1 worldwide in Fresh Dairy Products.
• No # 1 worldwide equally placed in Bottled Water (by volume).
• No # 2 worldwide in Biscuits and Cereal Products.
GROUPE DANONE three core business areas are Fresh Dairy Products,
Beverages and Biscuits and Cereal Products strives to improve the lives of
people around the world by providing them with better and value added
food products. Its dominant position worldwide is based on major
international brands and on its rock solid presence in local markets (about
70% of global sales come from brands that are local market leaders).
Performance
Britannia has registered a turnover of Rs 21,993 million for the year ended
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31st March 2006-07. Britannia has posted Net Profit to the tune of Rs
1076 million for the year ended 31st March 2006-07.
Ownership and relationship between major shareholders
The Wadias' Kalabakan Investments and Groupe Danone have two

equal joint venture companies, Wadia BSN and UK registered Associated
Biscuits International Holdings Ltd., which together hold 51 per cent stake
in Britannia. The ABIH tranche was acquired in 1992, while the controlling
stake held by Wadia BSN was acquired in 1995. It was agreed that, in case
of a deadlock between the partners, Danone is obliged to buy the Wadia
BSN stake at a "fair market value". ABIH which has a separate agreement
signed in 1992 and is subject to the British law.
Wadia was to be Danone's partner in the food and dairy business,

and product launches from Groupe Danone’s were expected but never
materialised despite the JV being in existence for over 11 years in India.
Under the 1995 joint venture agreement, Danone is prohibited from
launching food brands within India without the consent of the Wadias.[14]
In addition, the partners agreed there would be the right of first refusal to
buy out the remaining partner in the event of the other wishing to sell its
holding. In May 2007, Nusli Wadia told the Ministry of Commerce and
Industry that Danone invested in a Bangalore-based bio nutrition
company, Avesthagen, in October 2006 in violation of the government's
Press Note 1, 2005, which requires a foreign company to obtain the
consent of its Indian joint venture partner before pursuing an independent
business in a similar area, including joint ventures based purely on
technical collaboration. Danone argued that Press Note 1 did not apply to
it as it did not have a formal technology transfer or trademark agreement
with Avesthagen, and that its 25 pct holding in Britannia was indirect.
Wadia also filed a case in the Bombay High Court for a breach of a non-
compete clause in that connection. The court ordered Danone not to
alienate, encumber or sell shares of Avestagen. In September 2007, the
Foreign Investment Promotion Board of India rejected Danone's claims
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that it does not need a non-compete waiver from the Wadias to enter into
business in India alone. In June 2006, Wadia claimed Danone had used the
Tiger brand to launch biscuits in Bangalore. After a prolonged legal battle,
Danone has finally agreed to sell its stake in Britannia and get out of this
line of business. Danone will sell its 25.48% stake to Leila Lands, which is
a Wadia group entity based in Mauritius. The deal is valued to be at $175–
200 m. With this buy-out, Wadia's will hold a majority stake of 50.96%.
For more than a decade, biscuit manufacturer Britannia Industries

has called on consumers to "Eat Healthy, Think Better." Now, emerging
from a period of internal crisis and preparing to address a larger slice of
India's growing food space, the 90-year-old Bangalore-based company is
taking on a new slogan: Zindagi mein Life.Translated literally from Hindi,
the new slogan means "adding life to life" -- or, as managing director
Vinita Bali puts it, "adding enjoyable vitality to life."According to Bali, who
has been at Britannia's helm since 2005, "Over the past few years, as we
looked at what we stand for and what we could stand for, we felt that if
our promise to consumers [is to] make products that are not just
enjoyable but also good for them, then we need to make that promise
come alive through our products."
This is perhaps best exemplified by Britannia's decision to remove

8,500 tons of Trans fat from its biscuits in the last year, making them
completely trans fat-free. The company was under no regulatory
compulsion to do so; in fact, it is the only biscuit manufacturer in India to
have taken such a step. Over the last few years, Britannia has also
fortified many of its products with vitamins and micronutrients such as
iron. Currently, 50% of its products are fortified.
Positioning the Britannia brand as both enjoyable and healthy is

core to Bali's growth strategy. She stresses that Britannia is not in the
"health food" business, but rather "in the business of delight and
enjoyment," competing not only with other biscuits but also with savories,
chocolates and other snacks.
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By marketing itself as a healthier alternative, however, Britannia

seeks to sharply differentiate itself from other brands -- and that move
has paid off. Last September, Microsoft founder and philanthropist Bill
Gates included Britannia's fortified snacks in a list of eight examples of
'creative capitalism' published in Time magazine. The company was also
recently recruited to participate in former U.S. President Bill Clinton's
campaign against childhood malnutrition through the high-profile Clinton
Global Initiative.
Hungry for More
The new positioning is also intended to strengthen the mother brand

itself. With the introduction of the "Eat Healthy, Think Better" campaign in
1997, Britannia focused on building its individual brands, such as Tiger
glucose biscuits, Good Day cookies and Treat cream biscuits. That was
fine, as biscuits accounted for the bulk of the company's revenues. (For
the year ended March 2008, biscuits brought in about 90% of Britannia's
net sales of $650 million.)
But now Britannia wants to broaden its menu. In addition to growing

its core biscuit business, it wants to significantly expand its small
businesses including dairy, bread, cake and rusk (known as zwieback in
the U.S.). The dairy business, which Britannia entered in 1997 and spun
off as a joint venture with New Zealand's Fonterra Group in 2002, has
revenues of barely $36 million and has yet to become profitable. Britannia
has dabbled with bread and cake for more than two decades and entered
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the rusk market a few years ago. These three businesses together take in
just $68 million.
More important, Britannia looks to explore other opportunities within

the growing food space. According to a November 2008 report by the
Federation of Indian Chambers of Commerce and Industry and
management consulting firm Technopak Advisors, the Indian food industry
is estimated to have been at $200 billion in 2006-07 and is expected to
grow to $300 billion by 2015. The report considers the food industry to
include fruits and vegetables, dairy products, marine and fish, meat and
poultry, breads and bakery, confectionary and packaged foods, and
alcoholic and non-alcoholic beverages.
"Our vision is to become a larger player in the food space, and as

we get into newer products and newer categories, their strength will be
derived from the Britannia mother brand," says Durgesh Mehta, who was
Britannia's chief financial officer when he was interviewed for this article.
He has since moved on to become CFO of Bombay Dyeing, which, like
Britannia, is a Wadia Group company.
What new areas might Britannia enter? Company officials aren't

saying, though speculation includes breakfast items and ready-to-cook
and ready-to-eat products. Bali says that Britannia will not look at staples
such as rice, wheat flour and sugar. "We will pursue profitable growth
opportunities where we can create propositions that are relevant and
differentiated from a consumer point of view," she notes.
Adds Neeraj Chandra, Britannia's vice president and chief operating

officer: "We are looking at categories that gel with our principles of
enjoyable and healthy food. We want to participate in as many
consumption moments as possible in the food space through both
leveraging our current products better and through different kinds of
products."
23
Industry players and analysts see Britannia's move as both smart

and inevitable. "Britannia certainly has the capability to be a larger player
in food," says Harish Bijoor, chief executive officer of Harish Bijoor
Consults and a visiting professor at the Hyderabad-based Indian School of
Business. "The brand equity of Britannia can be as elastic or as inelastic
as its vision is for the Indian market."Nikhil Sen, who was with Britannia
for more than 25 years, including a brief stint as chief operating officer,
adds: "Redefining its boundaries to become a larger player in food is a
great strategy for Britannia, and it certainly has the capability to do so."
Sen is currently managing director of Unibic Biscuits India, the Indian arm
of the Australian biscuit company.Both Sen and Bijoor add a note of
caution. "Britannia has been very good at developing its current business,
but it has not come out with any innovations in recent years," Sen says.
"There has not been a single new product in the past few years which has
been pioneering for the category. There has been no new energy, no
'wow' factor. Britannia needs to innovate."Adds Bijoor: "Dairy and biscuits
is still a wide-open arena, and there is [a lot of growth] in this space itself.
Britannia is in an enviable position to leverage [these] opportunities, but it
needs to be far more aggressive." Bijoor is also not convinced about
Britannia's positioning as health-cum-enjoyment: According to his
research, taste and health are mutually exclusive in the Indian context.B.
P. Agarwal, managing director of Surya Food & Agro, which makes the
Priya Gold regional brand of biscuits, says that while Britannia
undoubtedly remains a market leader, much of its strength is derived
from past glory and its strong consumer equity. "The new products that
Britannia has been introducing in recent times have been more by way of
tweaking the existing portfolio. It has been launching variants with new
packaging, but there is nothing dramatically new," Agarwal says. Recent
launches including Chutkule, a snack product, and Fruit Rollz -- both of
which Britannia has discontinued -- failed to excite consumers, he says.
Ingredients for Growth
24
So what are Bali's main ingredients for growth? Investments in

people, brands and infrastructure, improved efficiencies and cost
reduction, and new choices for consumers.
For instance, the company has been investing significantly in higher

and better quality of human resources both at the front end and at the
back end. It has sharply segmented its go-to-market strategy and, unlike
an earlier focus on simply increasing the number of outlets it covered,
Britannia now has separate teams for general sales, modern trade,
institutions, and semi-urban and rural markets. It is building strong
capabilities in each of these segments.
Britannia has also been working with an international consulting

agency for building capabilities in shopper understanding as opposed to
consumer understanding. Says Chandra: "These are some finer
distinctions we would not even have thought of three years ago."
In 2008, Britannia divided its product portfolio into two distinct

categories: "health and wellness" and "delight and lifestyle." Products
such as Tiger glucose and NutriChoice biscuits fall under the former
category, while Good Day and Treat fall under the latter. Each category is
headed by a senior executive responsible for outlining distinct growth
strategies.
Other initiatives include introducing personal consumption packs to

attract youth and people on the move, adding transit points such as bus
stops and small roadside shops to its distribution network, and addressing
workers in the business process outsourcing industry as a potential new
market.
Meanwhile, Britannia has doubled its ad spending in the last three

years. It is also working to increase trade marketing visibility and, for the
first time ever, has signed on with a trade marketing agency. According to
Mehta, Britannia plans to increase advertising and marketing spending to
10% to 12% of sales over the next few years from a current 7%.
25
On the infrastructure front, Britannia has added 200,000 tons of

annual capacity, an increase of about 60%. It has also devised a long-term
distributed manufacturing strategy, put in place a continuous
replenishment supply efficiency system, and strengthened its supply
chain management significantly. According to Rajesh Lal, vice president
and chief technology officer: "The stocks at our distributors are now
replenished within 24 hours, and in the past three years we have
increased the availability of our [stock-keeping units] from 60% to 90%
across the country." Lal adds that cost reductions over the last three
years have saved the company $30 million.Bali is looking to leverage all
these new pieces for maximum competitive advantage. Sources inside
Britannia say revenue targets are $1.25 billion by 2010 and $3 billion by
2015. While Bali won't commit to any numbers, her hunger clearly is to be
the best. "There is a huge opportunity out there in the market and it is up
for grabs," she says. "What we make of it depends on our ability to
commercialize the opportunity. We want to be among the three fastest-
growing FMCG companies in the country and to grow profitably."
Amul product range
Bread Spreads
Amul Butter Amul Lite
Utterly Butterly Low fat, low
Delicious Cholesterol Bread
Spread
Delicious Table
Margarine
The Delicious way
to eat healthy
26
Milk Drinks
Amul Kool Millk Amul Kool
Shaake
Amul Kool Cafe Kool Koko

A delight to
Chocolate Lovers.
Delicious
Chocolate taste
Nutramul Energy Amul Kool

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

Flavoured Bottled Flavoured Tetra
Milk Pack
Amul Masti Spiced Amul Lassee

Buttermilk
Amul introduces the
Best Thirst
Quenching Drink
27
Amul Kool Thandai
Powder Milk
Amul Spray Infant Amul Instant Full
Milk Food Cream Milk
Still, Mother's Milk is Powder
Best for your baby A dairy in your
home
Sagar Skimmed Sagar Tea Coffee

Milk 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 Milk Amul Gold Milk
This is the most
hygienic milk
available in the
market. Pasteurised
in state-of-the-art
processing plants
and pouch-packed
for convenience.
28
Amul Taaza Amul Lite Slim

Double Toned Milk and Trim Milk
Amul Fresh Cream Amul Shakti

Toned Milk
Amul Calci+ Amul Buttermilk
Cheese
Amul Pasteurised Amul Cheese
Processed Cheese Spreads
100% Vegetarian Tasty Cheese Spreads
Cheese made from in 3 great flavours..
microbial rennet
Amul Emmental Amul Pizza

Cheese Mozzarella Cheese
The Great Swiss Pizza cheese...makes
Cheese from Amul, has great tasting pizzas!
a sweet-dry flavour
and hazelnut aroma
29
Gouda Cheese
For Cooking
Amul / Sagar Pure Cooking Butter
Ghee
Made from fresh
cream. Has typical rich
aroma and granular
texture. An ethnic
product made by
dairies with decades of
experience.
Amul Malai Paneer Utterly Delicious

Ready to cook paneer Pizza
to make your favourite
recipes!
Britannia product
30
Britannia product line includes biscuits, snacks, packed milk, cheese,
butter, buttermilk and yogurt. Britannia owns popular brands like :

• NutriChoice SugarOut.
• NutriChoice Digestive Biscuit.
• Treat Fruit Rollz.
• New Britannia Milk Bikis.
• Britannia Marie Gold Doubles.
• Britannia 50-50.
• Tiger.
PRODUCT DEVELOPMENT
➢ Cooperative system
➢ Profitability
➢ Committed to the farmers
DISTRIBUTION NETWORK
➢ 300 stock keeping units,
➢ 46 sales offices,
➢ 3,000 distributors,
➢ 1,00,000 retailers with refrigerators and
➢ 5,00,000 non-refrigerated retail outlets...
FUTURE PLANS
 Expansion of distribution network, creative marketing,

consumer education and product innovation, we will
31
leverage effectively on rising income levels and growing

affluence among Indian consumers.
 Tapping the rising demand for new value-added products.
 Milk shed area will increase to 231 lakh kg per day (23.1
million kg per day), at an annual growth rate of 4%
 Installing Bulk Milk Chillers and Automatic Milk Collection

Systems in all our village cooperative societies.
 Collect as much as 195 lakh kg per day (19.5 million kg per

day) of milk in the peak flush season.
 Satellite dairies with combined processing and liquid milk

packaging capacity of 50 LKPD will be established in major
metro market
 We plan to double to processing capacity of our dairy plants

to 20.7 million kg per day, by 2020
 Milk drying capacity will also be enhanced by 200 MT’s per

day
 Plan to expand our cattle feed manufacturing capacity, more

than four times to 12,000 MT’s per day, by 2020.
 Total investments envisaged for creating all the required

infrastructure would be Rs. 2,600 crores (Rs. 26 billion) till
the year 2020
32
Findings from surveys ::
The reason people prefer AMUL product
Product Peopl Taste Price varie Taste Taste All

e ty & & 3
Price variety
Amul 48 38 6 3 - 1 -
Britannia - - - - - -
Nutrilite 1 - - - 1 - -
Home-made 1 1 - - - - -
Amul & 6 2 1 - 1 2 -
home made
Amul & 3 2 - 1 - - -
nutrilite
All 4 1 - 1
total 60 43 7 4 2 3 1
Product Peop advert Newspa sam Ad & Ad, All

le ise per ple news new,& 3
mag
Amul 48 43 1 - 2 2 -
Britannia - - - - - -
Nutrilite 1 - - - 1 - -
Home-made 1 - 1 - - -
Amul & 6 5 - - 1 - -
home made
Amul & 3 2 1 - - - -
nutrilite
All 4 1 1 - - - - -
33
total 60 51 2 1 4 2 0
Product Peop Local Super Both

le Mkt mkt
Amul 48 34 14 -
Britannia - - - -
Nutrilite 1 1 - -
Home-made 1 1 - -
Amul & home 6 4 2 -

made
Amul & 3 3 - -
nutrilite
All 4 1 1
total 60 44 16 -
Q .1) What kind of butter you buy ?
Product Amul Britannia Nutrilite Home-made
• 38 15 4 3
Total 60
34
Q.2) Why do you prefer particular brand ?
People Taste Price variety Taste & Taste & All 3

Price variety
60 43 7 4 2 3 1
Q.3) How you come to know about this product ?
People Advertiseme Newspape sample Ad. & Ad, News,&

nt r News Mag
60 51 2 1 4 2
Q.4) Where do you normally buy Amul product from ?
People Local Mkt Super mkt
60 44 16
Q .6) Which quantity do you normally buy ?
35
Q .7) How many times do you buy Amul Butter ?
Q .8) For what purpose do you butter mostly ?
Q .10) At what time you see more no. of ads. On Amul & Britannia ?
Q .12) What difference you see in both the product ?
Q .13) Can you recall latest Amul Or Britannia advertisement ?
Q .14) Who will be the better competitor to Amul ?
Q .16) If Amul come with low cholesterol did you accept it ?
36
Q . 17) Do you think that the present cost of product which you prefer is
costly? If yes what will be your ideal price range for 100gm butter pack ?
Q . 18) Would you prefer to switch to butter of anther brand if it is

cheaper than your preferred brand without any change in quality & taste ?
Q .20) Dou you fell that company should change their brand name ?
Q .21) Amul product with the Red colure packing its work in the market or
not ?
Q .22) Why do you fell Britannia brand is not as well, dairy product in
market as compare to Amul ?
Q .23) If company gives 20%off to customer it’s help to growth of selling

of company product ?
37
CONCLUSION
 Most of the people always prefer Amul for any dairy product.
 Low cost than any other brand was the one of the reason to
chose Amul as a best product.
 AMUL’S Philosophy
 Trustworthy of 1,000 million Indians
 Also known for food brand
 On the concern of distribution channel , most of the retailers

agree that Amul has good distribution channel.
 Amul gives the better replacement offer to the expired

product than the other company products.
 Replacement offer to the expired product is one of the most

important factor for influencing the stocking decision of the product.
38
 Ranking of some other factors that influence the retailers stocking

decision:
Following is the order in which the retailers ranked the other factors
that influence their stocking decision.
i. Consumer preference given by the company to the retailers of the

product was raked 1st
ii. Promotional strategies of the company for promoting its products
was ranked 2nd
iii. Offers for the product was ranked 3rd
iv. Packaging of the product was ranked only 4th
39
Overall ranking of the factors that influence the retailers stocking

decision.
Following is the sequential order in which the retailers ranked the factors
that influence their stocking decision.
i. Trust of the company is the most important point for its products.
ii. Credit offered by the distributor
iii. Distribution in supplying the products regularly
iv. Discounts provided by the company for its products.
40
RECOMMENDATIONS
1. Amul has a relatively good distribution network, but still company is

not able to fulfill 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.
2. Amul should take care of their goodwill of company market any
damage product sell in the open market it may be effect company
reputation.
3. Given the fact that margin offered to the retailer is not similar in the
case of the competitors product. For this fact, the company should
give good margin to the retailers than the competitors.
4. Company should also give the replacement offer to those outlet

which is running with small business.
5. Only fresh product should be supply in the outlet. The main cause of
the supply of fresh product is that customer always wants fresh
product. They don‟t want to take 3 or 4 days old product.
41
Appendix ::
Market survey on
Amul butter v/s Britannia
Personal detail :
Name :
Address :
Age :
Gender :
Occupation :
Income p.a. :
Total family member :
Questions :
Q .1) What kind of butter you buy ?
-- Amul Britannia
Nutrilite Home - made
Q.2) Why do you prefer particular brand ?
-- Price Taste
Variety
Q.3) How you come to know about this product ?
-- Advertisement Newspaper
Sample Magazines
42
Q.4) Where do you normally buy Amul product from ?
-- Local market Super market (big bazaar)
Q .5) Did you ever use any other Brand ?
-- Yes No
Q .6) Which quantity do you normally buy ?
-- 100 gm 500
1 kg 5 kg
Q .7) How many times do you buy Amul Butter ?
-- 2 times in week Once in week
On special occasion Others
Q .8) For what purpose do you butter mostly ?
-- On roti On Bhaji
On bread On dosa
Q .9) Do you recall advertisement of Amul butter ?
-- Yes No
Q .10) At what time you see more no. of ads. On Amul ?
-- Morning Afternoon
Evening Night
Q .11) At what time you see more no. of ads. On Britannia ?
-- Morning Afternoon
Evening Night
43
Q .12) What difference you see in both the product ?
-- Quality Quantity
Promotion
Size Price
Q .13) Can you recall latest Amul advertisement ?
-- Yes No
Q .14) Who will be the better competitor to Amul ?
-- Britannia Nutrilite Local Brand
Q .15) Do you find that Amul butter having high cholesterol ?
-- Yes No
Q .16) If Amul come with low cholesterol did you accept it ?
-- Yes No
Q . 17) Do you think that the present cost of product which you prefer is
costly? If yes
what will be your ideal price range for 100gm butter pack ?
-- Rs. 11 to 15 Rs. 16 to 20
Rs. 21 to 25
Q . 18) Would you prefer to switch to butter of anther brand if it is

cheaper than your preferred brand without any change in quality & taste ?
-- Yes No
Q .19) Is there anything that you feel lacking in your preferred brand ?
44
--
Q .20) Dou you fell that company should change their brand name ?
-- Yes No
Q .21) Amul product with the Red colure packing its work in the market or
not ?
-- Yes No
Q .22) Why do you fell Britannia brand is not as well, dairy product in
market as compare to Amul ?
-- Low quality Small size High

price
Less promotion Problem in packing
Q .23) If company gives 20%off to customer it’s help to growth of selling

of company product ?
-- Yes No
Q .24) Can you suggest a change which will improve the product further ?
--
45
BIBLIOGRAPHY
➢ Marketing research
WEBLIOGRAPHY
➢ www.wikipedia.org
➢ www.amul.com
➢ www.google.com
46

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Amul butter v/s Britannia (Product Strategy)

Regulation: local, regional, national and international rules and

Education: academic, vocational, consultancy

Research and development: food technology

Financial services: insurance, credit

Manufacturing: agrichemicals, seed, farm machinery and supplies,

Agriculture: raising of crops and livestock, seafood

Food processing: preparation of fresh products for market, manufacture

Marketing: promotion of generic products (e.g. milk board), new

Wholesale and distribution: warehousing, transportation, logistics

Retail: supermarket chains and independent food stores, direct-to-

ADVANTAGE OF INDIA UNDER FOOD INDUSTRY:

India is one of the largest food producers in the world

Investment requirement of around US$ 15 billion exists in the food

India is looking for investment in infrastructure, packaging and marketing

India has huge scientific and research talent pool

A largely untapped domestic market of 1000 million consumers

300 million upper and middle class consume processed food

200 million more consumers expected to shift to processed food by 2010

Well developed infrastructure and distribution network

Rapid urbanization, increased literacy, changing life style, increased

50 per cent of household expenditure by Indians is on food items

Strategic geographic location (proximity of India to markets in Europe and

Major Indian and Overseas Players in the Food industry

Parle Products Pvt. Ltd.

Agro Tech Foods

Perfetti India Ltd.

Cadbury India Ltd.

PepsiCo India Holdings

Nestle India Pvt. Ltd.

Britannia Industries Ltd.

Hindustan Unilever Limited

MTR foods limited

Godrej industries Limited Dabur India Ltd.

India has a unique pattern of production, processing and

Amul (AMUL means "priceless" in Sanskrit. The brand name

AMUL is based in Anand, Gujarat and has been an example of a co-

Bangladesh, Australia, China, Singapore, Hong Kong and a few South

The Gujarat Cooperative Milk Marketing Federation Ltd, Anand

The turnover of GCMMF (AMUL) during 2008-09 was Rs. 67.11

Ever since the movement was launched fifty-five years ago,

TITLE OF THE STUDY

OBJECTIVE OF THE RESEARCH

SCOPE OF THE STUDY

LIMITATIONS OF THE RESEARCH

1. Lack of proper experience on the part of the researcher in conducting

Amul Brand Building

In September 2007, Amul emerged as the leading Indian brand

Amul Butter Amul Lite

Amul's product range includes milk powders, milk, butter, ghee,

In August 2007, Amul introduced Kool Koko, a chocolate milk brand

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy

An Amul butter ad on Pakistan's Kargil War fiasco. The image shows

Its advertising has also started using tongue-in-cheek sketches

The success of Amul resulted in similar organizations being setup by

Eat healthy Think better

Britannia Industries Limited is an Indian company based in Kolkata

highly recognised throughout the country. Britannia is one of India’s

The Company's principal activity is the manufacture and sale of

The Britannia's fame is largely acknowledged through the colourful

Britannia, one of the premier food product companies in India.

Britannia product line includes biscuits, snacks, packed milk, cheese,