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success stories with its Amul brand, is now aiming at a 17-per cent growth in sales to Rs
3,200 crores this fiscal against sales of Rs 2,746 crores in the previous year ended 31
March 2003.
The federation is expecting each of its products to contribute higher sales this year as new
The big hope is not surprisingly the Amul brand of ice creams, which is expected to
contribute Rs 250 crores to the turnover, up from Rs 150 crores last year. Last year there
was a good growth in ice cream, cheese, butter and ghee. The company is launching new
products in almost every line that are in, with specific stress on ice creams.
For its ice cream and milk business, GCMMF has begun investing in increasing its milk
capacity. It recently firmed up plans to invest Rs 100-120 crore to expand this from 1.1
million liters a day to 1.8 million litres a day at its Gandhinagar factory. The investment
1
COMPANY PROFILE
name “AMUL” from the Sanskrit “Amoolya,” was suggested by a quality control expert
in Anant. Amul products have been in use in millions of homes since 1946. Amul butter,
Amul milk powder, Amul ghee, Amul spray, Amul cheese, Amul chocolates, Amul
shrikhand, Amul ice cream, Nutramul, Amul milk and Amulya have made Amul a
leading food brand in India. Today Amul is a symbol of many things… of high quality
products sold at reasonable prices… of the genesis of a vast cooperative network… of the
50 years after it was first launched, Amul sales figures have jumped from 1000
tones a year in 1966 to over 25000 tones a year in 1997 and sales figure of rupees 11140
millions in 1994-95 to rupees 23365 millions in 2001-02 . No other brand comes even
close to it. It was all because a thumb sized girl climbed on to the hoardings and put a
For thirty odd years the utterly butterly girl has managed to keep her fan following
intact. So mush so that the ads are now ready to enter the Guinness book of world records
for being the longest running campaign ever. The ultimate compliment to the butter came
when a British company launch a butter and called it utterly butterly, few years back.
2
50 years after it was first launched, Amul sales figures have jumped from 1000
tones a year in 1966 to over 25000 tones a year in 1997. No other brand came even close
to it. All because thumb sized girl climbed on the hoardings and put a spell on the masses.
Mumbai : summer of 1967. A charni road flat. Mrs. Sheela mane, a 28 year old
house wife is out in the balcony drying clothes. From her second floor flat she can see her
neighbours on the road. There are other people too. The crowd seems to be growing
larger by the minute. Unable to curb her curiosity Sheela mane hurries down to see what
all the commotion is about. She expects the worst but can see no signs of an accident. It is
her four year old who draws her attention to the hoarding that has come up over night. “ it
was the first Amul hoarding that was put up in Mumbai,” Recalls Sheela mane. “ people
loved it. I remember it was our favourite topic of discussion for the next one week!
Everywhere we went some how or the other the campaign always seem to crop up in our
conversation.”
Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you,
strategically placed hoardings at many traffic lights. She is the Amul moppet everyone
loves to love ( including prickly votaries of the Shiv sena and BJP ). How often have we
stopped, looked chuckled at the Amul hoardings that casts her sometime as the coy, shy
Madhuri, a bold sensuous Urmilla or simply as her self, dressed in her little polka dotted
dress and a red and white bow, holding out her favourite packet of butter.
For 30 odd years the utterly Butterly girl has managed to keep her fan following
intact. So much so that the ads are now ready to enter the Guinness book of world records
3
for being the longest running campaign ever. The ultimate compliment to the butter came
It all began in 1966 when Sylvester dacunha, then the managing director of the
advertising agency, ASP, clinched the account for Amul butter. The butter which had
been launched in 1945, had a staid, boring image, primarily because the earlier
advertising agency which was in charge of the account preferred to stick to routine,
corporate ads.
In India, food was something one couldn’t afford to fool around with. It had been
taken too seriously, for too long. Sylvester dacunha decided it was time for change of
image.
The year Sylvester dacunha took over the account, the country saw the birth of a
campaign whose charms has endured fickle public opinion, gimmickry and all else.
The Amul girl who lends herself so completely to Amul butter, created as a rival
to the polson butter girl .This one was sexy, village belle, clothed in a tantalizing choli all
but covering her upper region. “ Eustace Fernandez ( the art director) and I decided that
we needed a girl who would warm her way in to a house wife’s heart. And who better
than a little girl ?” says Sylvester dacunha. And so it came about that the famous Amul
That October, lamp kiosks and the bus sites of the city were splashed with the
moppet on a horse. The base line Simply Said. Through bread, utterly butterly delicious
Amul it was matter of few hours before the duacunha office was ringing with calls. Not
just adults, even children were calling up to say how much they had liked the ad. “ The
4
response was phenomenal,” recalls Sylvester dacunha. “ we knew our campaign was
going to be successful.”
For the first one year the ads made statements of some kind or the other but they
had not yet acquired the topical tone. In 1967, Sylvester decided that giving the ad a solid
concept would give them extra mileage, more dum, so to say. It was a decision that would
In 1969, when the city first saw the begning of the hare Rama Hare Krishna
movement , Sylvester dacunha , mohammad khan and Usha Bandarkar, than the creative
team working on the Amul account came up with a clincher—‘ Hurry Amul, Hurry
Hurry’. Mumbai reacted to the ad with a fervour that was almost as devout as the iskon
fever.
From the sixties to the nineties, the Amul ads have come a long way. While most
people agree that the Amul ads were at their peak in the eighties they still maintain that
Where does Amul’s magic actually lie ? Many believe that the charm lies in the
catchy lines. That we laugh because the humour is what anybody would enjoy. They do
not pander to your nationality or certain sentiments. It is pure and simple, Every day fun.
5
Members: 12-district cooperative milk producers’ Union
AMUL means "priceless" in Sanskrit. A quality control expert in Anand suggested the
brand name “Amul,” from the Sanskrit “Amoolya,” Variants, all meaning "priceless", are
found in several Indian languages. Amul products have been in use in millions of homes
since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese,
Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya
have made Amul a leading food brand in India. (Turnover: Rs. 25 billion in 2002). Today
the marketing savvy of a farmers' organization. And of a proven model for dairy
development.
6
50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a
year in 1966 to over 25,000 tonnes a year in 1997. No other brand comes even close to it.
All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses.
Dairy giant Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) recorded 22
per cent growth in turnover during the first half of the current financial year with milk
GCMMF sold 10.5 crore litres of milk in pouches during April to September 1998 under
"GCMMF's financial performance during this period has been even more attractive with a
growth of 25 per cent. However, this won't be reflected in our balance sheet. The
multinationals would have shown it as glittering profit, but we are working on our
mandate of returning any surplus back to grass-root village co-operative milk society
With 12 processing units (unions), each located at the district-level, GCMMF today has a
societies.
7
GCMMF, the largest producer of dairy products in Asia, has over 26 products ranging
from `Amul Butter', `Amul Spray', `Amul Lite', `Amul Cheese' to `Amul Mithaimate',
The co-operative is launching wide range of cheese including the exotic Emmental from
the Swiss Alps, soft Mozzarella from Italy and slices of processed Cheddar cheese.
GCMMF has also come out with `Amul cheese powder' used in soups, salads, dressings
The federation has been able to capture 50 per cent of the ice-cream market in the state in
`Amul Ice creams' are also now available in 12 states and two union territories and enjoy
The `Amul Ice-cream' strategy bordered on its punch line, `real milk, real ice-cream'
`Amul Ice creams' were smoother and creamier than its competitors as fat used was pure
8
GCMMF, which has 45 sales offices, plans to make these products "available all over the
country".
The federation has a distribution network comprising more than 2,700 wholesale dealers
9
GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food
Gujarat which aims to provide remunerative returns to the farmers and also serve the
interest of consumers by providing quality products which are good value for money.
10
For further details, please contact:
India
Fax: +91-2692-240208
Email: gcmmf@amul.com
11
COMPNAY HISTORY
Way back in December, 1946 the seeds of what was later to become the Amul
juggernaut were sown. Following strategic advice from Sardar Vallabhbhai Palel and
nifty footwork by Shri Morarji Desai, a handful of farmers formed a milk co-operative in
Kaira district. About 250 liters of milk collected daily from the farmers of two village co-
operative societies was pasteurized and send to the Bombay milk scheme. The first lesson
in milk marketing was learnt when an assured outlet for milk in Bombay stimulated
increased milk in the villages of Kaira district. More and more farmers joined hands in
more villages to supply milk. The Amul milk co-operatives started growing rapidly.
The second lesson in marketing came some seven years later. Even by 1953, all
the milk collected by Kaira’s village co-operative societies in peak winter months was not
accepted by the Bombay milk scheme. It had to be sold as surplus milk at low prices to
middlemen. A need was felt for building a dairy plant with powder and butter
manufacturing capacity that would process and utilized all the milk supplied by the
Verghese Kurien made all these possible. Together they consolidated, scaled up and
developed the milk co-operatives. Many milestones were created one after another. New
products were added, the brand name AMUL was created and milk co-operatives on the
lines of Anand were from in other districts of Gujarat in quick succession. The Gujarat
12
Co-operative Milk Marketing Federation (GCMMF) was born in 1973 to market the
products being packed at several dairy plants in the states under the brand name ‘AMUL’.
The dairy business reached new heights year after year. The magic of milk co-
operative was working not only in Gujarat but also elsewhere across the country under
Operation Flood of NDDB where the Anand pattern of dairying was being replicated in
its entirely breeding, feeding, milk collection, cattle management, disease control,
nutrition, milk processing and product manufacture and marketing. The dairy industry of
India was coming into its own. There was no looking back.
It has often been said that the Chinese invented ice cream and that marco polo brought the
idea to Europe in the thirteenth century. This is more myth than historical fact backed by
evidence but it can be sated with some confidence that ice cream was invented in China in
the first milenium. The process of freezing liquids by immersing them in a mixture of ice
and salt, which react together to lower the temperature of the mixture below freezing
point, was also invented in the distant past – it was first documented in the thirteenth
century. This is how ice cream had to be made until the invention of the freezer in the
twentieth century. A vessel containing ice and salt surrounds a container containing the
ice cream mixture. The temperature in the ice and salt mix drops, freezing the container's
Since the method of producing ice cream depended on a supply of ice, it was of limited
use without that precious commodity. Ice could be gathered from ponds and lakes, in
winter, and the storage of ice in ice wells and ice houses goes back several centuries. By
packing ice into an insulated underground chamber with adequate drainage ice could be
13
stored for months, sometimes years. Ice remained a luxury and dependant on nature to
Ice cream made with a milk mixture was first recorded in Europe in Italy.. In England, the
first recorded serving of this rare luxury was in 1672, to King Charles II, whose table at a
banquet was served a delight denied to those sitting at more humble tables.
The first English cookery book to give a recipe was Mrs Mary Eales Receipts of 1718.
The recipe did not include a process for making the ice smooth and it must have been
coarse with ice crystals. Ice being rare, ice cream was a luxury for the well off in all
countries and had to be made and served immediately, there being no way to store it for
The second half of the nineteenth century was the period in which ice cream became a
treat for ordinary people. Italy continued to lead Europe in ice creamery and immigrants
to the UK from thee brought with them a tradition and expertise which led to the popular
name "Hokey Pokey" which is thought to derive from a corruption of the Italian for "try a
little". In other countries too, especially the United States, ice cream gained popularity.
The commercial harvesting of ice in cold climates and its transport to population centers
was a growth area from the earl nineteenth century. This ice trade made large volumes of
ice available at a realistic price and it became possible for ice cream sellers to offer a taste
of ice cream to the ordinary person. Ice was sold on glasses which were wiped clean and
re-used. These glass "licks" remained in use in London until they were made illegal in
1926 for reasons of public health. Ice cream edible cones were first documented by Mrs
14
The modern face of Amul
economy was being talked about. In the milk business the scene had changed from one of
shortages of self sufficiency. While everything seemed to be going well, there was a
growing realization of the need to manage effectively the ever expanding milk business in
tune with changing times. Would the dairy managers be able to handle the business
through the existing systems and processes? Two factors needed attention (1) How to
cater to ever changing aspirations of the customers and, (2) How to improve the quality of
products and services that GCMMF offered. The organization had to brace themselves to
effect the change fast and with as little pain as possible. Information technology had to be
incorporated in our systems and the organizations made learning organization through
concept of Total Quality Management (TQM) with its twin pillars of customers focus and
problem solving techniques and improvement of the processes, together with continuous
training. Shri B.M. Vyas who had then just taken over as the managing director of
GCMMF took up this gamble and decided to lead the organization from the front. He was
ably assisted by Shri James Joseph (now in U.S.). Six years down the line and
15
DISTRIBUTION NETWORK
Amul
Baroda Dairy
C&F
Agencies
Retailers
16
Amul manufactures its ice cream in Baroda dairy plant. Its supplies raw material like milk
from different places of Gujarat to Baroda dairy. When ice cream is fully prepared and
packed than it’s transferred to different states via air-conditioned trucks. The C&F agents
store it in big deep freezer rooms. From C&F the ice cream is delivered to different
distributors. And from distributes the ice cream is delivered to different retailers and sub
17
GUJARAT COOPERATIVE MILK MARKETING
FEDERATION
GCMMF: An Overview
Gujarat which aims to provide remunerative returns to the farmers and also serve the
interest of consumers by providing quality products which are good value for money.
18
Amul’s Values
• Customer orientation
• Commitment to producers
• Integrity
• Cooperation
• Excellence
• Leadership
• Quality
• Innovation
• Belongingness
• Pride in organization
• Employee satisfaction
19
Amul’s Mission
20
Journey 2005
marketing of food and dairy products, both fresh and long life, with customer focus and
The network would consist of over 100offices, 7500 (4000 urban, 3500 rural)
stockists covering at least every taluka headquarter town, serving nearly 10 lakh outlets
GCMMF shall also create a market for its products in neighboring countries.
21
AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit
"Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning
"priceless", are found in several Indian languages. Amul products have been in use in
millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray,
Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul
Milk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 29
billion in 2004). Today Amul is a symbol of many things. Of high-quality products sold
22
LIST OF PRODUCTS MARKETED
Breadspreads:
• Amul Butter
Cheese Range:
• Amul Amrakhand
23
• Amul Mithaee Gulabjamuns
• Avsar Ladoos
Pure Ghee:
24
Infant Milk Range:
Milk Powders:
Fresh Milk:
25
• Amul Gold Full Cream Milk 6% fat
Curd Products:
• Amul Lassee
Amul Icecreams:
• Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted
Almond)
• Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry,
Megabite, Cassatta)
26
• Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)
Brown Beverage:
Milk Drink:
Chocolate)
Health Beverage:
27
• United
• Katayani
• Himachal
• Eden tower
• Shri Krishna
• Anant
• Brindawan garden
28
Bread Spreads
Amul Butter
Utterly Butterly Delicious
Amul Lite
Low fat, low Cholesterol Bread Spread
29
Powder Milk
30
Sagar Tea Coffee Whitener
31
Fresh Milk
32
Amul Lite Slim and Trim Milk
33
Amul Kool Flavoured Bottled Milk
34
Amul Masti Spiced Buttermilk
Amul introduces the Best Thirst Quenching Drink
35
Cheese
36
Amul Pizza Mozzarella Cheese
Pizza cheese...makes great tasting pizzas!
Gouda Cheese
37
For Cooking
Cooking Butter
Amul Paneer
Ready to cook paneer to make your favourite recipes!
38
Utterly Delicious Pizza
Mithai Mate
Sweetened Condensed Milk - Free flowing and smooth texture. White to creamy color
with a pleasant taste.
Masti Dahi
39
Masti Soups
40
Desserts
Amul Shrikhand
A delicious treat, anytime.
41
Gulab Jamun Mix
Amul Chocolates
The perfect gift for someone you love.
Amul Lassee
42
Health Drink
Nutramul
Malted Milk Food made from malt extract has the highest protein content among all the
brown beverage powders sold in India.
43
Amul’s Strategic Thrust Areas
• Rationalizing taxes
• Integration through IT
44
FOUR P’S OF THE PRODUCT
PRODUCT: Amul ice cream has wide range of variety that consists of more than
hundred flavors available in the market including 20 new flavors, which is introduced in
this summer. As ice cream is an impulsive purchase item so, its sale depends mostly on
PRICE: The price of Amul ice cream is very less compared to its competitors. In novelty
item the price of the flavors varies from Rs.2 to Rs22. The pricing strategy of Amul is, to
target each income group of the society. The cheaper price of ice cream is meant for
targeting the people with low income. Along with the low income group Amul is also
different prices.
PLACE: The distribution of the ice cream in Delhi is done through exclusive Amul
outlets situated in various locations. In Delhi, Amul has eleven distributors who supplies
ice cream to more than 3000 outlets. These eleven distributors are responsible for their
respective areas.
45
PROMOTION: Amul is a well-established brand name of GCMMF. For promotion of
the ice cream the company gives advertisement in newspaper and magazines. It gives
glow sign board to every retailer and also makes wall paintings on their request. Amul
uses their punch line ---“Real milk real ice cream” for the promotion.
46
SWOT ANALYSIS
STRENGTHS:
• Amul is a reputed and well known company in India, its products are easily
• Its products range is spread over a wide spectrum, from milk and curd to ice
• Customers will at least think of using the product once and check its quality, as it
47
WEAKNESSES:
• Mother Dairy has the advantage of being the market leader of packaged milk in
the market.
dairy but margin to the distributor is less than that of other brands.
• Amul milk has been launched just one and half year back in Delhi, so awareness
48
OPPORTUNITIES:
• Mother Dairy is available since last so many years in the market, and it has
• If Amul provide a better taste and quality then it can swap most of the customers
• Milk is basic necessity for daily use; everyone needs it daily for one or other
reason.
• In Delhi about 72% of total milk market is packaged milk market and rest is of
49
THREATS:
• Mother Dairy is dominating milk in the market, quality wise and price wise.
• People are using Mother Dairy and other brands since so many years, so it is
difficult for them to suddenly change the brand and taste that has already been
50
MARKETING RESEARCH
“Marketing Research is the functional links to the customers, consumers & public to
opportunities and problems; generate, define and evaluate marketing actions; monitor
designing the method for collecting information, managing and implementing the data
collecting process, analyzing the result and communicating the findings and their
implementations.
51
OBJECTIVE OF RESEARCH
eliminating the retailers from the distributor channel with the aim to promote Amul milk
and to give better facilities and services to the consumers of Dwarka sub city.”
52
EXECUTIVE SUMMARY
Summer has started unusually early this year. And, as the mercury rises nobody is happier
than the Amul manufacturers who are already filling their iceboxes with dollops of new,
mouthwatering flavors.
Gujarat Co-operative Milk Marketing Federation that markets the Amul brand of ice
creams. Within two year Amul’s sale progressed three times. Amul target strategic thrust
areas with logical extension. The plus point for this co-operative society is its Amul brand
equity, large procurement base of raw material, having processing technical know-how,
180 milk co-op network and plans to convert ice-cream into a mass product.
Amul started to expand his market share in Delhi under its `Hamara Apna Deep Freezer
(HADF)' scheme. Under this, retailers are encouraged to buy their own deep freezers for
vending ice creams, with Amul negotiating a discounted price on their behalf with
refrigeration companies like Blue Star, Voltas and Carrier and western.
53
This is as against the practice of the ice cream company itself providing the freezer at the
retailer's end, subject to the latter depositing a refundable security amount. "In the HADF
scheme, the retailer not only saves on the security deposit, but also enjoys the flexibility
arising from owning the asset and availing a direct five-year guarantee from the
manufacturer. These, together with our negotiating a discounted price on their behalf,
entails cost savings of Rs 5,000-8,000 per freezer depending on capacity and make. In
HADF: Modelities
Step 2: retailer will sign an agreement for buying DF at subsidized rate and storing
Step 3: DIC/OIC to verify all orders and agreements and forward the same to local office
of the DF Company.
For booking of deep freezer the salesman or the PSM have to gone through with two
important stages:
54
1) Call up ii) Follow on
Call up:
In call up the salesman have to go to the potential retailers like medicos, departmental
stores, confectioneries, std booths and the shops which are mainly opened till 11 p.m. The
salesman gives the detailed information to the retailers about the HADF scheme of Amul.
If the retailers find, that the scheme is beneficial for him then he gives the next date to the
Follow on:
In follow on the salesman have to go to those retailers who give some positive sign for
HADF scheme. The salesmen may have to go more then two or three times on the same
retail store for follow on. In follow on the salesmen try to convince the retailer more and
In call option we targeted those stores, which are open till 10:30 to 11:00 o’clock night
and are in residential areas. The most of the sale comes after dinner. The demands for
Amul bricks are more than novelties items because bricks are cheaper and contain more
55
As a summer trainee I have to report at10:00 am in the morning to spectra agencies,
Karolbagh, which is one of the franchises of Amul. A spectra agency is the only one
franchises of Amul in central Delhi. It covers a very big area of Karolbagh, Patel Nagar,
Old and New Rajender Nagar, Purani Delhi, Paharganj, Cannaught Place e.t.c. The
agency is the sole supplier of Amul in this area. I have to visit all this areas for opening of
new outlets and more than one area in one day for calling. I have to maintain also the
DMR for daily basis. In DMR, we write the name, address and the reaction of the retailers
whom we visited in a day. Normally I visited more than eighteen to nineteen stores in a
day. Apart from calling, I also asked the retailers perception and customer reaction about
the Amul. I give information to the agency about the problem of existing retailers.
In call up, if we find that the retailer has already deep freezer and stocks some other
company ice cream than we perused them for keeping Amul too. Sometime the retailer
says yes and sometime no. But most of the time the retailers want to keep Amul.
56
RESEARCH METHODOLOGY
work. This includes the overall research design, the data collection process, the sampling
57
RESEARCH DESIGN
1. Exploratory Research
2. Descriptive Research
3. Causal Research
on secondary data. It is preliminary investigation that does not have a rigid design. This is
because a researcher engaged in an exploratory study that may have to change his focus
characteristics of certain group such as age, sex, educational level, income, and
occupation etc.
cause and effect relationship between two or more variables. Such studies are based on
58
DATA SOURCE
1. Primary data
2. Secondary data
Primary Data are those data specially collected for problem in hand. In this study
data were collected from primary sources in personal interview of retailers and interaction
These methods of data collection are quite popular. These are the major methods
Secondary Data are those data, which are collected for some purpose other than
• Old reports
• Company records
• Magazines
59
SAMPLING PROCEDURE:
How should the respondents be chosen? To get the most feasible and accurate
result, simple random probability sampling method was adopted for direct interview of
retailers and cluster sampling was used to communicate the consumers from different
unit for each unit in the population is equal. Each sample unit from the population is
chosen randomly. Probability of being chosen as a sample unit depends upon the
While in cluster (area) sampling the population is divided into mutually exclusive
groups (such as city blocks, sectors etc.), and the researcher draws a sample of the groups
using random sampling. Sometimes researcher again draws sample units of respondents
SAMPLE SIZE:
Distributors 1
Retailers 25
Consumers 1244
60
FIELD WORK:
The field work for research was conducted between May 27, 2005 to July 02,
2005 spread all over the Dwarka sub city. This exercise involved face to face interview
with distributor and retailers. During the survey sample packs of Amul milk pauch and
curd have been distributed among the selected consumers, and their feedbacks have been
Apartments covered:
• Harmony
• Shahzahanabaad
• Naveen
• National
• Green heavens
61
RESEARCH APPROACH
Primary data can be collected in various ways: through observation, focused group,
surveys, behavioral data, and experiments. During this research data have been collected
using survey method. Survey method is best suited for descriptive research. Companies
RESEARCH INSTRUMENT:
Questionnaire is most common research instrument in collecting primary data during
respondents. Because of its flexibility, the questionnaire is by far the most common
62
Analyzing & Interpretation
63
Total Milk Consumption
21%
6%
9% 64%
Mother Dairy has dominated milk industry in Delhi. Around 65% of total milk market in
Dwarka has been captured by Mother dairy. Other brands include Paras, Gopalji etc.
64
Total Packaged Milk
65
Total Packaged Milk
8%
92%
66
Packaged Milk Market in Terms of Volume
67
Total Packaged Milk (Volume)
8%
11%
81%
68
Packaged Milk Market in Terms of Money
69
Total Packaged Milk (Money)
81%
8%
11%
70
Demand of Different Variants of Packaged
Milk
Total milk consumption 22200 Ltrs.
71
Demand of Different Variants
5%
30%
65%
72
Demand of Different Variants of Amul Milk
73
Demand of Different Variants
5%
35%
59% 1%
74
Availability of Milk on Retail Shops
Only Amul 4%
75
Availability of Milk on Retail Shops
16%
4%
80%
76
Does Packing Play any Role in Promoting
Sales
Yes 24%
No 76%
77
Does Packing Play any Role in Promoting
Sales
24%
76%
Yes No
78
Selling Price of Milk
At M.R.P. 84%
79
Selling Price of Milk
4%
12%
84%
80
Improvement Possible with the Distributor
(Preference)
1. Credit Period
2. Replacement
3. Collection of Payment
4. Others
81
Customer Purchase Milk Because of
Price 30%
Quality 50%
Packing 2%
Srevices 10%
Scheme 5%
Others 3%
82
KEY PLAYERS
Key players in this industry are Mother Dairy, Amul, Paras, Gopalji. But Mother
Dairy dominates this industry. The reason for its success is that it is the first introducer of
packaged milk and ts quality and advertisement also play major role in its success.
advantage in the market. It has sustained this advantage through outstanding product
quality and a well-oiled distribution network. This has helped Mother Dairy to ensure that
its brand has the highest top-of-mind awareness among consumers. During the 1990s,
when the growth potential in the packaged milk market attracted new players, including a
couple of large industries, some observers thought Mother Dairy would take a hit. It
prosperity have boosted the demand for branded pasteurized milk. In this scenario,
Mother Dairy is the best-placed brand. And it retains more than 80% share of the branded
Mother Dairy always rides an emotional wave with its advertisement campaigns.
It also attempts to elevate the brand to the status of a health icon- “Piyo Pure”
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Also the reason for its success is its quality. Still consumers feel that Mother
Dairy is better than any other milk in the market. It has captured the maximum share of
this industry.
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AVAILABILITY & VISIBILITY OF KEY
PLAYERS
Most of the milks are available at every shop. Mother Dairy is present nearly on
every shop as it is the necessity of the retailers to keep it so as to retain the customers.
Other branded milks are also present in every shop but they are uneven in availability.
In this tough competition in the milk industry availability is one of the factors for
success. When Britannia was launched, its advertising campaign was very attractive
therefore it created a huge demand in the market, but proper supply or adequate supply
was not there in the market, and quality and taste was as good as Mother dairy, and hence
The customer are not as much brand loyal in this industry, they comes to the
retailer shop and ask for Mother Dairy milk but if it is not available then it is not that they
come out of the shop and search for Mother Dairy, in spite of this they take any other
milk which is advised by the retailer or supplied by the supplier (suppliers are those who
gives the home delivery of milk) because milk is not luxury but it is the necessity. So
keeping this point in view, Amul must be made available at every shop.
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Although Amul milk is available on most of the shops but there are some shops,
which are left uncovered by the sales agents, so the company needs to focus on covering
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DISTRIBUTION PROCESS
PRODUCT FLOW
Factory
Distributor
Retailers
Consumers
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DISTRIBUTION PROCESS
There is a distributor for every milk in the sub city, his job is to ensure the
distribution of milk to each and every area and outlet in the sub city.
This distributor works as a representative of the company for the retailers. Further
this distributor ensures the supply of milk to the customers with the help of retailers.
1. Distributor
2. Retailers
The company delivers the product to the distributor with the help of C&F agent,
and the distributor further distributes the product to the customers with the help of
retailers. For this distribution distributor forms a team of sales agents. These sales agents
go to every market in the sub city and check for the demand and supply of milk for the
retailers. These sales agents work as a link between the retailers and the distributor.
Supervisors are appointed to check the working of these sales agents. The supervisor is
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TRADE SCHEMES
The company gives schemes to the distributor when the quantity is large. The
sole purpose of scheme is to encourage the purchase. These schemes may be in the form
Other types of schemes are launched for the retailers to encourage the purchase of
milk. These schemes may be issued by the company or by the distributor also.
Retailers normally prefer the reduction in the net rate of the milk as a scheme.
They like scheme on which milk is free on the purchase of milk rather than anything else
is free on the purchase of milk. This creates problem for the retailers, e.g. suppose on the
purchase of one crate of milk company was giving two pouch of curd free. Now this will
create inventory problem for the retailers. First he has to store curds in the store. Secondly
sometime retailer demands the free gift by purchasing only half crate of milk and says
that he will purchase the rest half crate next day and then the scheme will be satisfied.
The biggest problem in such type of schemes is that customer demands for the
reduction in the net rate rather than anything else. So the retailer always prefer the
reduction in the net price rather than the scheme or they prefer the scheme in which milk
is free on milk. So that the net effect of the scheme is the reduction in price.
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RECOMMENDATIONS & SUGGESTIONS
This industry is most competitive industry. There are large numbers of competitors in
this field. In such condition a small loop may create a big problem. The condition is made
more though by Mother Dairy, which is dominating in this industry, so only a detained
study and full fledged effort can help in good sales to capture the market. Four things are
1. Service.
2. Advertisement.
3. Quality of milk.
I have found while talking to customers that they want a better service. If one is
providing better service than other, people go for it, they are agree to spend some money
also for a better service. So customers are giving more importance to service than to
money.
Advertisement is the most important step to improve sales. People are not loyal to
any brand; they purchase milk, which had an image in their minds. Before leaving their
home they already know for which milk they will ask the shopkeeper. And this image
comes from advertisement. In city distributing small pamphlets along with newspaper or
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Of course quality of milk is another issue, which can improve sales. In long run if
we want to succeed then we have to create a value for our milk in the mind of the
customers and that can be done by quality. The first priority must be to ensure that the
These two above mentioned factors are tough to implement. The easiest step to
improve the sales in the market is the margin provided to the retailers. The reason for this
is simple Mother Dairy is best milk in the market and retailers do not want to sale it. They
are forced to sale it because customer demand for it. The reason why retailers do not
prefer to sale Mother Dairy is its margin. Retailers always try to sale milk other than
Mother Dairy because they provide good margin to them. The milks, which are best in
margin, are Paras and Gopalji. Therefore retailers always try to sale Paras and Gopalji
instead of Mother Dairy and Amul. Now if Amul can provide good margin to the retailers
then they will try to sale Amul instead of Mother Dairy. And once the milk becomes
established then the rates can be increased and the margin to the retailers can be
decreased.
The most important competitive a continuous basis is the biggest challenge for
producer. This is so because milk is a basic necessity (not a luxury) with little relationship
to personal income that is the milk consumption per person is not likely to vary
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CRITICAL SUCCESS FACTORS
• Better replacements
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LIMITATIONS
which are caused by financial constraints, insufficient sample size, lack of personal
contact etc. marketing research only helps managers in decision making process. It
provides data and information’s to the managers but it can not be a substitute for
marketing.
Limitations of Survey:
• In this industry, it is very difficult to find the exact figures as the consumption is
very low.
• There is not a particular trend followed in this industry to promote sales. Actions
are taken according to the situations and the situation changes very fast in this
industry.
• Sales price vary from retailer to retailer, as the cost price is different for different
• The number of shops are very large in number and it is very difficult to cover all
of them.
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CONCLUSION
Milk industry is very competitive industry and dominance of Mother Dairy makes
it tougher for other brands to establish in this field. So in order to compete in this market
everything should be perfect with main focus on distribution. The distribution must be
proper and retailers must be the main center of focus. They are the people who can make
difference.
increase as more and more people come to know about Amul milk. Advertisement can
bring the customers to the shops but after that the retailer is the key person. If he wants he
can sell any milk. Therefore it should be the combined effort of company and retailers to
improve the sales. Also people always prefer change so if we provide them better
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RETAILER SURVEY FORM
Address ___________________________
Tel.No. ___________________________
Q1) What are the milks you usually keep in your shop?
a) Mother Dairy
b) Amul
c) Paras
d) Gopalji
e) Others _______________
a) Mother Dairy
b) Amul
c) Paras
d) Gopalji
e) Others
a) Yes
b) No
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Q4) How you sold the milk?
a) At M.R.P.
a) Through rickshaw
b) Through tampo
d) Others _______________
Q6) How would you compare the services of Amul and Mother Dairy on the following?
(Rank 1 to 5)
personnel
Q7) Is there any improvement possible with distributor on the following parameter?
(Please tick √)
Yes No
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d) Any other ____ ____
a) Price
b) Quality
c) Packing
d) Scheme
e) Others ______________
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CONSUMER SURVEY FORM
Address ___________________________
Tel.No. ___________________________
a) Mother Dairy
b) Amul
c) Paras
d) Gopalji
e) Other _____________
a) Full Cream
b) Standardized
c) Tonned
d) Double Tonned
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c) Tonned _____ Ltrs.
a) From retailers
b) From supplier
Q5) How much do you pay to the retailer/supplier for the milk?
a) FCM Rs._____
b) STD Rs._____
c) Tonned Rs._____
d) DTM Rs._____
Q6) If you are getting home delivery, is supplier charging extra cost for the delivery?
b) No
a) Yes
b) No
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Q8) If no, then do you want to taste it at least once?
a) Yes
b) No
Q9) If you find it better than your current brand, then will you continue using it?
a) Yes
b) No
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BIBLIOGRAPHY
BOOKS.
Published by Pearson Education Pvt. Ltd, Indian Branch, 482 F.I.E. Patpargang
INTERNET WEBSITES
www.Amul.com
www.google.com
www.indiatimes.com
www.infoline.com
MAGAZINES.
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