GTUs Enrollment No: 107690592049

A SUMMER INTERNSHIP REPORT ON CONSUMERS PERCEPTION TOWARDS AMUL SWEETS AT

KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERSUNION LIMITED ANAND Submitted By: DEEPAK D. MANDOWARA (ROLL NO.-A-32) MBA PROGRAMME 2010-2012 (SEM-2) In partial fulfillment of the requirements for Summer Internship Programme for the award of the degree of MASTER OF BUSINESS ADMINISTRATION SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT AND COMPUTER APPLICATIONS (NICM-MBA)

Submitted to

GUJARAT TECHNOLOGICAL UNIVERSITY, AHMEDABAD

DECLARATION
This project report entitled CUSTOMERS PERCEPTION TOWARDS AMUL SWEETS has been submitted to Gujarat Technological University, Ahmedabad in partial fulfillment for the award of degree of Master of Business Administration. I, the undersigned hereby declare that this report has been completed by me under the guidance of Mr. Hiren Bhatt(CEO OF OIL BUSINESS) and Prof. Fahmida Shaikh (Faculty Member, Shri Jairambhai Patel Institute of Business Management & Computer Applications, Gandhinagar.) The report is entirely the result of my own efforts and has not been submitted either in part or whole to any other institute or university for any degree.

Deepak D. Mandowara GTUs Enrollment No: 107690592049 Date: Place: Gandhinagar

PREFACE

The MBA programmed is well structured and integrated course of business studies. The main objective of practical training at MBA level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The MBA programmed provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management. In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry, which would, in return, help me in the future when I will enter the practical field. During this whole training I got a lot of experience and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life. In todays globalized world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that Experience is best teacher.

ACKNOWLEDGEMENT With immense pleasure, I would like to present this project report for Kaira District Cooperative Milk Producers' Union Ltd., Anand. It has been an enriching experience for me to undergo my project report at AMUL, which would not have possible without the goodwill and support of the people around. As a student of M.B.A of GUJARAT TECHNOLOGICAL UNIVERSITY, I would like to express my sincere thanks to all those who helped me during my practical training programme. It is not always easy to make the task successful. It requires tremendous efforts. In preparation of this report, I have received encouragement and support from various persons. I take the opportunity to express my gratitude to all these persons. Words are insufficient to express my gratitude toward Mr. Hiren Bhatt, the CEO of oil business of AMUL. I would like to give my heartily thanks to Mr. Jignesh, who permitted me to get training at AMUL. I am very thankful to M r. Ganesh Thakore, who is handling library work. I am very thankful to Prof. Famida Shaikh, who is my project guide during training at AMUL DAIRY. They have given guidance and great help for completing project work. I am very thankful to my family and friends also for their help and support at every time.

EXECUTIVE SUMMARY
AMUL is a co-operative sector. It is the institution of the farmers, for the farmers and from the farmers. The AMUL gives pleasure to the farmer to charge the own price, which was not possible in earlier years. This union was born on 14th December 1946. The union provides facilities to its members like more return, satisfactory price, insemination, first aid, group Insurance, cattle food at confessional price etc. AMUL dairy has five main departments like finance, personnel, commercial, milk procurement and production. The finance department does the clerical work and takes care of inflow and outflows of the cash. The other work of finance Department is to audit of annual work. The personnel department handles the work regarding personnel like appointment, recruitment, promotion, transfer, dismissal, demotion, performance appraisal etc, The commercial department conducts all promotional activities of local area. The pricing decision of milk and buttermilk is taken at commercial department. The marketing work is handling by GCMMF. The production department produces the product with the help of latest technologies. The production is done according to ISO marks requirement. The milk procurement department gets the milk every day two times from 92 routes and 1073 societies. For the maintenance of quality of milk there are 150 chilling units

TABLE OF CONTENTS
Particulars Declaration Certificate from the organization Certificate from the institute Preface Acknowledge Executive summary CHAPTER-1INTRODUCTION AND HISTORY 2.1 2.2 2.3 2.4 2.5 2.6 CHAPTER 2 ORGANIZATION PROFILE Motto, Vision And Quality Policy Logo Of Amul The Brand Name Of Amul Amul And Sister Concern Organization Structure SWOT Analysis CHAPTER 3 PRODUCT PROFILE CHAPTER 4 ABOUT THE FUNCTIONAL DEPARTMENT PRODUCTION DEPARTMENT 4.1.1 Introduction 4.1.2 Organization Structure 4.1.3 Manufacturing Process Of Products Milk Pouch Packing Butter Milk Page no I. II. III. IV. V. VI. 1

4.1

4.2

4.3

4.2.1 4.2.2 4.2.3 4.2.4 4.3.1 4.3.2 4.3.3 4.3.4 4.4.1 4.4.2 4.4.3 4.4.4 4.4.5 4.4.6 4.4.7 4.4.8

Ghee HUMAN RESOURCE DEPARTMENT

4.4

FINANCE DEPARTMENT Introduction Importance Of Financial Management Source Of Capital Organization Structure MARKETING DEPARTMENT Introduction Organization Structure Marketing Mix Amul Dairys Distribution Channel Market Segmentation Amuls Sales Export Competitor

CHAPTER 5 RESEARCH METHODOLOGY 5.1 5.2 5.3 5.4 5.5 5.6 Research Objective Scope Of Study Research Design Sampling Design Sources Of Data Collection Limitation Of The Survey

CHAPTER 6 DATA ANALYSIS & INTERPRETATION CHAPTER -7 FINDINGS AND SUGGESTION

CHAPTER-8 CONCLUSION BIBLIOGRAPHY ANNEXURE

Chapter-1 INTRODUCTION AND HISTORY OF

AMUL

INTRODUCTION AND HISTORY

In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LIMITED. This union selected the brand name AMUL in 1955. The brand name Amul means AMULYA. This word derived form the Sanskrit word AMULYA which means PRICELESS. A quality control expert in Anand had suggested the brand name AMUL. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for dairy development (Generally known as ANAND PATTERN). In the early 40s, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterates farmers by the private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word. However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a cooperative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to

Shri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk.

These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union. \ However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand.

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

At the initial stage only 250 liters of milk was collected everyday. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs liters of milk everyday. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1073 societies. With the financial help from UNICEF, assistance from the govt. of New Zealand under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Dr.Rajendra Prasad, the president of India laid the foundation on November 15,

1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20, 1955.

PEOPLE POWER: AMUL'S SECRET OF SUCCESS

The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good. Looking back on the path traversed by Amul, the following features make it a pattern and model for emulation elsewhere.

Amul has been able to: Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its rotes and limitations, Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. Provide a support system to the milk producers without disturbing their agro-economic systems,

Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers and Even though, growing with time and on scale, it has remained with the smallest producer members. In that sense. Amul is an example par excellence, of an intervention for rural change. The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like - all through the village societies. Basically the union and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF INDIA.

CHAPTER-2 ORGANIZATION PROFILE

Organization profile

NAME: Kaira district co-operative milk producers union limited, anand. FORM: co-operative sector registered under the co-operative society act. LOCATIN: kaira district co-operative milk producers Ltd, Milk producers Ltd, Amul dairy road, Anand-388001 Gujrat. PREMISES OF AMUL: 49.55 acres REGISTRATION: 14th December 1946, REGISTERED OFFICE: Kaira district co-operative milk producers union Ltd Anand 388001, INITIAL PROMOTERS: (1) Shri tribhovan das patel (2) Shri morarji desai (3) Shri vallabh bahi patel (4) Dr.varghese kurien

OFFICE TIME: 10:00A.M TO 6:00P.M TOTAL NO OF SHIFT:

1st shift time: 08:30 A.M TO 04:30 P.M 2nd shift time: 10:00 A.M TO 10:00A.M TO 06:00 P.M
3rd shift time: 04:30 P.M TO 12:30 A.M VILLAGE CO-OPERATIVE SOCITY: 1137 TOTAL NO, OF SOCITY MEMBERS: 543278 BANKARS: kaira district co-operative bank. Axis bank. State bank of India Bank of Baroda Corporation bank H.D.F.C bank

AUDITORS: Special auditor (milk) milk audit office anand.

2.1 MOTTO

MOTTO, VISION, AND QUALITY POLICY

The main motto of AMUL is to help farmers. Farmers were the foundation stone of AMUL. The system works only for farmers and for consumers, not for profit. The main aim of AMUL is to provide quality products to the consumers at minimum cost. The goal of AMUL is to provide maximum profit in terms of money to the farmers. VISION Vision of AMUL is to provide vanish the problems of farmers (milk producers). The AMUL apparition was to run the organization with the co-operation of four main parties, the farmers, the representatives, the marketers, and the consumers. QUALITY POLICY We the motivated and devoted work force of AMUL are committed to produce whole some and safe foods of excellent quality to remain market leader through deployment of quality management system, state-of- art technology innovation and eco- friendly operation delightment of customer and betterment of milk producers.

2.2

LOGO OF THE AMUL

Logo of AMUL is a ring of four hands, which are co-coordinated each other. The actual meaning of this symbol is co-ordination of hand of different people by whom this union is now at top.

FIRST HAND: Is for farmers (producers), without whom the organization would not be existed. Farmers are the inspiration of the AMUL-taste of India. SECOND HAND: Is for the representatives of processors by whom the raw milk processed in to different finished products. THIRD HAND: Is for marketers without whom the products would not been able to reach to the customers. FOURTH HAND: Is for customers without whom the organization could not carry on because they are the people who consume the products.
2.3 THE BRAND NAME OF AMUL The Kaira district co- operative milk producers union ltd selected the brand name AMUL for its products range, in 1955. AMUL word is derived from Sanskrit word AMULYA. And it means that o PRICELESS o INVALUABLE o PRECIOUS It means that one cannot measure the value.

One finds similar sounding word with the same meaning in several Indian languages also. The very concept of Kaira unions system of co-operative dairying was destined to become priceless for millions of farmers.

2.4 AMUL AND SISTER CONCERN

Anand Plant First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavored milk and buttermilk. It is establish in 1973.

Mogar Plant Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia and Amul lite. It is situated on Anand -Vadodara Highway No. 8. This Plant establish in 1973.

Kaniari Plant Third plant is at Kanjari, which produces cattelfeed. Old plant establish in 1964 & new plant in 1980.

Khatra j Plant Fourth plant is at Khatraj, which engaged in producing cheese It is situated between NadiadMahemdabad.

Chilling Center Kapadvanj, Undel and Balasinor Satellite Dairy Balasinor, Undel
PUNE: Calcutta: Milk and Dahi. Milk, Flavoured Milk, Ice-cream.

2.5 ORGANIZATION STRUCTURE

B.O.D Chairman Managing Director General1 Manager Assistant General Manager Manager Deputy Manager Assistant Manager Superintendent Deputy Superintendent Senior Officer Officers Assistants Junior Assistant Workers (A to G Grade Workers)

BOARD OF DIRECTORS
1. Shri Ramsingh P. Parmar 2. Shri Rajendrasinh D. Parmar 3. Shri Shivabhai M. Parmar 4. Shri Maganbhai G. Zala 5. Shri Chandubhai M. Parmar 6. Shri Pravinbhai F. Solanki 7. Shri Dhirubhai A.Chavda 8. Shri Bhaijibhia A. Zala 9. Shri Mansinh K.Chauhan 10. Shri Bipinbhai M.Joshi 11. Smt. Madhuben D. Parmar 12. Smt. Sarayuben B. Patel 13. Shri Ranjitbhai K. Patel Shri B. M. Vyas (M.D. of GCMMF, Anand) Shri Rahulkumar Shrivastav (M.D. of KDCMPUL, Anand) Chairman Vice Chairman Director Director Director Director Director Director Director Director Director Director Director

Shri Deepak Dalai (District Registrar)

Kaira District Central Co-operative Bank U.T.I. Bank State Bank of India Bank Of Baroda Bank Of Maharastra Corporation Bank

Auditor:-

Special Auditor (Milk), Milk Audit Office, Anand.

CHAPTER-3 PRODUCT PROFILE

PRODUCT PROFILE

Products: Milk. Butter. Cheese. Milk Powder. Condensed Milk. Baby Food. Ghee. Nutramul. Chocolate. AMUL Butter Milk. AMUL ice cream. Dan (Cattle Food). Peda kajukatri

Industrial products: Coco Butter. Coco Powder.

 Coco Mass. Cream.

AMUL PRODUCTS

CHAPTER-4 ABOUT THE FUNCTIONAL DEPARTMENT

4.1 PRODUCTION DEPARTMENT:4.1.1 INTRODUCTION Production management it refers to the process of correction of past mistakes catching up with the new techniques, taking up steps with developing techniques and taking measures for the production of goods at comparative cost. The basic philosophy of production management is to launch a formal attack on direct cost and effective utilization of available resources, and developing production management is the process of Planning, Organizing, Directing and Controlling. The AMUL is started with only 250 liters of milk per day but now AMUL collects average 10 lakhs liters milk per day. At the initial stage AMUL has no problem regarding milk, but in winter season there was excess supply of milk, so AMUL has to sell out that excess milk at the low price or AMUL has to face loss. To remove this problem AMUL took decision to set up a plant to process the surplus milk into butter and milk powder. Today, AMUL has 3 plants known as AMUL 1, 2 and 3 and another plant in Mogar and Khatraj and another two dairy at PUNE and CALCUTTA. The two plant of AMUL except AMUL 1 is fully automated plant.

4.1.2 ORGANIZATION STRUCTURE OF PRODUCTION DEPARTMENT

Managing Director General Manager (Dairy Plant & Technology) Assistant General Manager Manager Deputy Manager Assistant Manager Superintendent Deputy Superintendent Senior Officer Assistant Junior Assistant Worker

4.1.3 MANUFACTURING PROCESS OF PRODUCTS

Milking the Cow Manually. Milk producers co-operative ltd. collects the milk from villages. There are 1113 village societies and 172 chilling centres allotted to societies. The collected milk is tested against the set standards that ensure quality of milk being received from the root level. Milk dispatched at AMUL dairy plant for further processing. Milk is pasteurized, clearified and standardized using latest technological machines and equipments. The various products have been made from milk. Generally about 85% of milk is the buffalos milk and rest is cows. Currently AMUL receives 11lakhs litres of milk. However it has the capacity of handling of 15lakhs litres of milk. Milk is received first at the raw milk SILO. The cans of milk are smelt, washed and sample of milk is taken. Than the cans are washed with chemicals, steam and hot air. The 25% of milk is received by cans. And other is by tankers. While milk is brought to Amul, its temperature is generally 8 to 9 degree C. so milk is pasteurized that means it is first heated 70 to 80 degree C. this process kills the germs and bacteria from milk. Then milk is chilled at 3 to 4 degree C to protect from getting spoiled. Then the pasteurized milk is stored in pasteurized milk SILO. Amul has also 8 such SILOS having capacity of maintaining 35,000 litres each. From this silo milk is distributed for production of various products as per their requirements. Each product required different standardization of milk, which is as per their requirement.

The manufacturing process for several products in AMUL plant is as under: MILK POUCH PACKING:The pasteurized milk is stored in pasteurized milk silo. From their it is used for manufacturing of different products. One of its uses is for milk pouch. The packed milk sent to villages and big cities for sale. There are 3 pouch machines for full filling this purpose, which packs 1litre, 500ml, and 200ml. After, packaging it is sent to cold storage, from cold storage milk is distributed among different routes according to demand. AMUL milk meets the PFA standards for the respective type of milk. The acceptable weight difference is +10ml to -10ml. Production Capacity of this plant is 2200-2500carates. VARIETY Amul Gold (Whole Milk) AMUL SHAKTI (STANDARDIZED MILK) Amul Taaza (Toned Milk) Amul Lite (Double Toned Milk) FAT(%) 6 4.5 3 1.5 SNF(%) 9 8.5 8.5 8.5

BUTTER MILK :Cream separated during pasteurization process is further pasteurized and stored in cream silos. From cream silos cream is taken in the churner. Here, butter and butter milk are separated than the butter milk is sent in chiller for making it chill. Than it is taken from chiller to butter milk storage silo. Than after it is packed in 500ml and 200ml pouch. GHEE :Sour milk is used for production of ghee. This milk is sent to the cream machine for collecting cream. Cream is converted in butter and butter is heated to make ghee. For making ghee they are using white butter. Then it is packed in tins and pouch. In the package of 500ml and 1, 2, 5, 15 kgs. Production Capacity of this plant is 3.5 to 4 tonnes a day. There are different tins available for export. It is mainly exported in U.S.A, Australia and Gulf Countries.

FLOWCHART OF PRODUCTION OF GHEE Pasteurized Butter Curdled milk Butter Churning Washing _Butter milk Butter Melting Pre Stratification Heating Filetration Clarification Storage Tank Packing Cream

4.2 HUMAN RESOURCE DEPARTMENT

4.2.1 INTRODUCTION

"Management is getting things done by people." There is one popular theme in management MAN IS MASTER and AMUL follows this theme. Generally organization is run with the help of five Ms viz. MAN, MONEY, MATERIAL, MACHINE and MARKET. However it is impossible to seem the organization without human resource. Thus human resource comprises the value of the organization by effective and efficient work. HRM is concerned with integration getting all the members of the organization involved and working together with a sense of common purpose. Human resource takes active role in the modern economic scenario of any company. The management of men is not only fundamental but also dynamic and challenging task. The human resource management has thus become important to manage the human resources properly in the organization. Therefore, the organizations involves human resource department to take care of human aspect in the organization. The structure of the human resources management department is as under:

4.2.2 ORGANIZATION CHART Chairman Managing Director Assistant General Manager Administration and Purchase Senior Officer Personnel Senior Officer Administration Assistant Telephone Operator Assistant

4.2.4 RECRUITMENT AND SELECTION

RECRUITMENT There are two types of Recruitment sources followed by Amul: INTERNAL SOURCES: Internal sources include personnel already on the payroll of the organization. Filling a vacancy from internal sources by promoting people has the advantages of increasing the general level of moral of existing employees. Following are included in this source: Present Permanent Employees. Employee Referrals Former Employee EXTERNAL SOURCE: These sources lie outside the organization In Amul they consider following sources for recruitment: Campus Interview Unsolicited Application Application Blank Placement Agencies SELECTION Selection procedure is concerned with securing relevant information about the applicant. The main objective of selection process is to determine whether an applicant meets the qualification for a specific job and choose the application that is most likely to perform well in the job.

The Selection process in AMUL is as under Vacancy in any department Approval from M.D. Advertisement Collection of Application Securitize the application Interview Medical checkup Selection After selection, the employees generally have a probation period. In AMUL probation period is different for different type of employees. The probation period for officers is 12 months, 6 months for clerical employee, and 3 months for workers. 4.2.5 TRAINING AND DEVELOPMENT Training is the process where the work related knowledge, skills and attitude are given to new employees. By which they aware the policies rules and increase technical and manual efficiency and create of responsibility. AMUL has accepted three methods for the training On the job method Off the job Out house training

In AMUL various methods conducted for Development purpose are Seminar Conferences Development Program

4.3 FINANCE DEPARTMENT 4.3.1 INTRODUCTION Financial Management is an activity, which is concerned with the acquisition and conservation of capital funds in meeting financial needs and overall objectives of a business enterprise. In Financial Management process following points are considered: Financial Analysis Financial Decision-Making Financial Planning Financial Control

Finance department is that managerial activity concerned with the planning and controlling of the firm's financial resources. Among all the 5 Ms, i.e. man, money, machine, material and market. Money plays a vital role ion the organization. Finance is the lifeblood for the success of an organization. For the organization to grow and develop an even basis, availability or finance on adequate basis is the prime requirement. The financial management involves critical decisions on which the very survival of the organization depends. The main financial decisions are as follows: Investment Decision. Financing Decision. Dividend Decision. Financial decisions are thus very crucial and important, decisions for the firm. The main function of finance department is to tackle The day to day financial requirement and other short term and long term expenses, which an organization incur quite often. All the other department of the organization strongly depends upon the finance department to carry on their departmental activity efficiently. Hence it is the responsibility of the finance manager to manage the finance function with proper care. Adequate financial availability in time in the organization would lead to organizational success and the failure to manage finance will thus lead to inefficiency. 4.3.2 IMPORTANCE OF FINANCIAL MANAGEMENT Proper finance is the real key to the success of any business enterprise. Without proper finance a business neither survives nor expands and modernizes. It is the finance, which works

like a lubricant, which keeps the organization dynamic. Keeps men and machine at work. The following are the points highlight the importance of finance. Finance for business promotion. Finance management for optimum use of firm. Use for co-operation in business activities. Useful in decision-making. Determinant of business success. Measurement of performance. Basis of planning, co-operation and control. Useful to shareholders and investors. .

4.3.3 SOURCE OF CAPITAL Source of Capital of AMUL are: All the products are sold and distributed by Gujarat Co-operative milk marketing federation (GCMMF). So federation gives them daily amount decided by union if selling of Amul products will be happened or not. Fix deposit of society is the major source of finance. Interest of fix deposit of bank like UTI, BOB, GEB Bond and Sardar Sarovar Bond etc. are one of the sources of finance. Share capital of Amul, which is not listed in market because it is not for public. It is only for the members of societies.

4.3.4 ORGANIZATION STRUCTURE Finance management is vital as well as crucial part of management as whole and involves planning, allocation of resources and their control. The ultimate responsibility of finance decisions lies with the top management. The nature of finance organization differs however from firm to firm. Top management takes the complex and important financial decisions and middle level personnel take other decisions. The account department is divided in to various other sections like. 1. Account Division The Function Of this Division is prepare voucher, bills. It also issue Check for the payment. 2. ESTA Division

The Function of this Division is to prepare payroll of employee. 3. Purchase Bill Division The Function of this division is issue Check or Draft to party from whom they purchase raw material. 4. MIS Division The Function of this division is handle Data related Account. They have a data base system for that. They have Accounting software system Tally 6.3. In which they input all information related Accounting.

FINANCE STRUCTURE MD General Manager Asst. General Manager A/C Manager Dpyt. Sup. Officers Sr. Asst. Jr. Asst. Comm. Manager Dpyt. Sup. Officers Sr. Asst. jr.Asst. Pur. Superintendent Dpyt. Sup. Officers Sr.Asst. jr.Asst

4.4 MARKETING DEPARTMENT

4.4.1 INTRODUCTION Every organization that produces one or more products requires marketing of the products sell them in the market. It is only through marketing that people know about a company's products. Hence marketing is considered as a key activity of organization. The organization requires sound marketing structure to carry on its marketing activities. However the concept of marketing is not confined only to selling of goods and services to customers. Instead the company tries to create and maintain the customer base through marketing. The marketing thus focus on the customer needs and wants in the market and emphasis on producing and selling only those goods, which have higher demand in market. The company mainly markets its products through advertising. Marketing uses various sales promotional tools to boost the sales of the company. The marketing department thus should have sound distribution channel and promotional system to make the marketing activities sound. 4.4.2 Organization Structure of Marketing Department: Managing Director Deputy Manager Product-dispatch Manager Deputy Superintendent Senior Officer Assistant Superintendent

4.4.3 Marketing Mix The marketing mix is a set of four elements: Product, Price, Place and Promotion and this is decided by GCMMF. 1. Product At AMUL, "GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LIMITED (GCMMF)" does the product planning at national level. It is the duty of GCMMF to plan the new product by conducting the market survey at the state and national level. However, issues of product lunch at the local level are taken care of by Amul itself. The Amul has set up the commercial department, which conducts the survey in the local areas through business. The new product decisions are also taken by the GCMMF. 2. Price The prices of products of Amul are also decided by the GCMMF. The GCMMF conducts the market survey to check the validity and feasibility of prices in the market and accordingly decides the prices of Amul products. However, the price is inclusive of several elements like, Cost of Milk Labour Cost Processing Cost Packaging Cost Advertising Cost Transportation Cost Sales Promotion Cost Taxes etc.

The GCMMF considers all these cost aspects and set them up in pricing structure to decide the jelling price of milk and milk products. 3. Promotion: AMUL, promotes its products through newspaper, Television, hoardings etc. Television is the best media for advertising. The GCMMF however uses hoarding for advertising in local areas. Hoarding designed on the creative basis attract the customer more.

4. Place: AMUL has developed federation and AMUL parlors located in several parts of country. The GCMMF handles the works relating to managing of stocks and distributors in country. Thus GCMMF looks after the disbursement of products to the various marketing channel.

4.4.4 Amul Dairys distribution channels Amul Dairy

GCMMF Area Depot Distributors Retailers Consumers 4.4.5 Market Segmentation: At Amul, since the marketing activities are handled by the GCMMF, market segmentation is also decided by GCMMF. The GCMMF determines the market size and market its product accordingly in the market so that the product can be easily sold in the market. Generally milk and milk products like butter and cheese arc popular in the all age groups. Hence they arc segmented at the national level. Milk products like chocolate and milk powder are segmented on the basis of age, that is for children but they arc also marketed at national level. The GCMMF conduct the market survey to know the demand for the products of Amul in the market and then accordingly determines the market segment, defines the target market and emphasis on the demand of population in that particular segment. The GCMMF has developed the marketing information system, which takes care of such issues. 4.4.6 Amuls sales:

Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 80053

US $ (in million) 355 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504 1773

4.4.7 EXPORT
The products like Butter, Ghee, Nutramul, chocolates made by AMUL are also exported into various countries like USA, Nepal, South Africa, Kenya, Bhutan, Bangladesh, Thailand, Srilanka, Tanzania, Australia and Gulf Countries. New market like Russia and Saudi Arabia etc are the prospect market in international market. In international market federation has gone at the rate of 34% in reflecting consumers faith in the AMUL brand. The federation has opened a warehouse in Dubai to serve better customers.

4.4.8 COMPETITORS

Competitors are the person who produce and sales the same product as produced by the unit. Competitors affect the business with several causes. The main rivals of AMUL are as following: Rich milk Sardar milk Nestle Britannia Cheese of Le-Boen Gowardhan The main competitors of amul relating to nadiad district are as under: Sukhdia Garbaddas Adarsh Shreeji Ji bapuji Vrudavan Dairy Local sweet maker

CHAPTER-5 RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY
Marketing research plays an important role in the process of marketing. Starting with market component of the total marketing talks. It helps the firm to acquire a better understanding of the consumers, the competition and the marketing environment. RESEARCH ON The research is conducted to know customers perception towards AMUL SWEETS. JUSTIFICATION FOR THE RESEARCH This study will helpful to the company for knowing consumers expectation. It is also helpful to the company in deciding how much price should be charged for its sweets, how to promote its sweets in the market and how to launch sweets in the market. RESEARCH OBJECTIVE:Amul is going to launch new product of sweets so amul wants to study consumer behaviour and initial consumer response before launching of sweets in nadiad district. The main objective of the research is to know the customers perception towards towards AMUL SWEETS. Other objectives of the research are as under: To aware the customers about the AMUL sweets. To understand the sweet consumption Pattern in Nadiad district. To decide the tools used to promote the AMUL sweets. To understand sweet segment in the Nadiad district. To know the expectation of people from AMUL company.

Scope of Study The scope of this study is for having following areas to be covered: It will help for increase the awareness of the new product launch. It can be useful to understand the initial Market segment of the product. It gives information about Competitive analysis with the existing brands already available in the market. It will be helpful to company in deciding the price of sweets.

Research Design Descriptive Studies: The descriptive research design has been used because it described the phenomena under the study and recommendations were specific under this study. Descriptive studies are undertaken in many circumstances. When the researcher is interested in knowing the characteristics of certain groups such as age, sex, educational level, occupation or income, a descriptive study may be necessary.

Sampling Design: Population: People of Nadiad District Sample Unit: Individual Sampling Procedure: Non Probability, Convenience based sampling Contact Method: Personal meeting with people

Data Source: Primary data Sample Size: 300 sample of customer

SOURCES OF DATA Primary Data: Data was collected through direct interviews from the customers and questionnaire method.

AMUL SWEETS

KAJUKATRI

MALAI PEDA

Data Analysis & Interpretation

Q.1 Do you eat sweets? Particular Yes No Total

Frequency 282 12 300

% of respondent 94 6 100

INTERPRETATION:

94% of respondents are eating sweets. 6% of respondents are not eating sweets.

Q.1.1 If No, than reason Particular Health problem Conscious about health Other Total

Frequency 8 4 0 12

% of respondent 66.67 33.33 0 100

INTERPRETATION: Of non user of sweets, 66.67% respondents have health problem 33.33% respondents are conscious about health. Q.2 What kind of sweets do you eat? Particular Frequency Local branded 165 Branded 108 Non branded 12 Total 282 % of respondent 58.51 38.30 4.26 100

INTERPRETATION: Of total usage of sweets, 58.51% respondents are eating local branded sweets 38.30% respondents are eating branded sweets 4.26% respondents are eating non branded sweets Q.3 How often do you eat sweets? Particular Frequency Every day 10

% of respondent 3.55

Every 2 day Every week Every 2 week During Festivals only Total

13 79 56 124 282

4.61 28 19.86 43.98 100

INTERPRETATION: Of total usage of sweets, 3.55% respondents are purchasing sweets every day 4.61% respondents are purchasing sweets every 2 day 28% respondents are purchasing sweets every week 19.86% respondents are purchasing sweets every 2 week 43.98% respondents are purchasing sweets during festival days Q.4 For What purpose do you eat sweets? Particular Celebration To Gift Someone For Child For self consumption Total Frequency 115 14 19 134 282 % of respondent 40.78 4.96 6.74 47.52 100

INTERPRETATION: Of total usage of sweets, 41% respondents are purchasing sweets for celebration 5% respondents are purchasing sweets to gift someone 7% respondents are purchasing sweets for chid 47% respondents are purchasing sweets for self consumption Q.5 What is the frequency of purchasing sweet? Particular Daily Frequency 8 % of respondent 2.84

Weekly Monthly Only Festival days Total

99 45 130 282

35.11 15.96 46.09 100

INTERPRETATION: Out of 282 respondents, 2.84% respondents are purchasing sweets on daily basis 35.11% respondents are purchasing sweets on weekly basis 15.96% respondents are purchasing sweets on monthly basis 46.09% respondents are purchasing sweets on festival Q.6 From where do you purchase sweets? Place Frequency Local Store 207 Shopping Malls 7 Super Store 60 Exclusive store 4 Other 4 Total 282 % of respondent 73.40 2.48 21.28 1.42 1.42 100

INTERPRETATION: Out of 282 respondents, 73.40% respondents are purchasing sweets from local store 2.48% respondents are purchasing sweets from shopping malls 2.28% respondents are purchasing sweets from super store 1.42% respondents are purchasing sweets from exclusive store 1.42% respondents are purchasing sweets from other places Q.7 What, First thing attract you to buy sweets? Particular Frequency Price 65 Quality 172 Packaging 12 Quantity 20 Brand Name 13 % of respondent 23.05 60.99 4.26 7.09 4.61

Other Total

0 282

0 100

INTERPRETATION: Out of 282 respondents, 23% respondents are purchasing sweets due to price 61% respondents are purchasing sweets due to quality 4% respondents are purchasing sweets due to packaging 7% respondents are purchasing sweets due to quantity 5% respondents are purchasing sweets due to brand name Q.8 What form of Sweets do you like most? Sweets Frequency Peda 93 Kesar 70 Malai 23 Barfi 49 Mava 36 Choco 12 Other 1 Kajukatri 118 Kesar 100 Choco 18 Other 22 Total 282 INTERPRETATION: Out of 282 respondents, 32.98% respondents are eating peda 17.38% respondents are eating barfi 41.84% respondents are eating kajukatri 7.80% respondents are eating other sweets like halwa, ghari, rasmalai etc. Out of 93 respondents eating peda, 70 respondents are eating kesar peda and 23 respondents are eating malai peda Out of 49 respondents eating barfi, 36 respondents are eating mava barfi, 12 respondents are eating choco barfi and 1 person is eating other type of barfi Out of 118 respondents, 100 respondents are eating kesar kajukatri and18 respondents are eating choco kajukatri Q.9 If Amul, launching new sweets like, Peda, Barfi, kajukatri, etc., would you be interested to Buy it?

% of respondent 32.98 17.38

41.84 7.80 100

Particular Yes No Total

Frequency 279 3 282

% of respondent 98.94 1.06 100

INTERPRETATION: Out of 282 respondents, 98.94% respondents are interested to buy Amul sweets 1.06% respondents are not interested to buy Amul sweets

Q.10 If Amul launching Sweet than, which is your best assurance for sweets from amul? Particular Frequency % of respondent Best Quality 130 46.59 Good Test 62 22.22 Best Promotion 4 1.43 Affordable Price 77 27.6 Attractive design and 4 1.43 Packaging All 2 0.73 Total 279 100

INTERPRETATION: Out of 279 respondents, 47% respondents assures that Amul will provide best quality sweets 22% respondents assures that Amul will provide sweets with good test 1% respondents assures that Amul will do best promotion for sweets 28% respondents assures that Amul will charge affordable price for its sweets 1% respondents assures that Amul will provide sweets with attractive design and packaging 1% respondents assures that Amul will provide all of above Q.11 What form of advertising draws your attention most? Particular Frequency TV 158 Newspaper 27 Poster 20 Free Samples 45 % of respondent 56.63 9.68 7.17 16.13

Radio Boucher Large Banner/Hoarding Other Total INTERPRETATION:

6 12 6 5 279

2.15 4.30 2.15 1.79 100

Out of 279 respondents, 58% respondents prefer advertisement through TV 10% respondents prefer advertisement in newspaper 7% respondents prefer advertisement through poster 17% respondents prefer advertisement through free samples 2% respondents prefer advertisement through radio 4% respondents prefer advertisement through brochure 2% respondents prefer advertisement through large banner/hoarding 2% respondents prefer advertisement through other sources or no advertisement Q.12 What special offers do you prefer? Particular Frequency % of respondent Buy one get one free 80 28.67 50 % Extra 55 19.71 Combo offer 25 8.96 Assured Gift (Lucky draw) 20 7.17 Special Discount 74 26.52 Other 25 8.97 Total 279 100

INTERPRETATION: Out of 279 respondents, 29% respondents prefer buy one get one free offer 20% respondents prefer 50% extra offer 9% respondents prefer combo offer 7% respondents prefer assured gift (lucky draw) offer 26% respondents prefer special discount offer 9% respondents prefer other offer as well as no offer Q.13 What is it that attract you to trying a new amul sweet? Particular Price Quality Frequency 62 171 % of respondent 21.22 61.29

Others Perception Packaging Advertisement Free Sample Other Total

1 4 30 1 10 279

0.36 1.43 10.75 0.36 3.59 100

INTERPRETATION: Out of 279 respondents, 21.22% respondents will attract to try amul sweets due to price 61.29% respondents will attract to try amul sweets due to quality 0.36respondents will attract to try amul sweets due to others perception 1.43% respondents will attract to try amul sweets due to packaging 10.75% respondents will attract to try amul sweets due to advertisement 0.36% respondents will attract to try amul sweets due to free sample 3.59% respondents will attract to try amul sweets due to other thing like brand name Q.14 According to your preference, please give Rating. 14.1 Amul Logo Particular Excellent Very Good Good Fair Poor Total Frequency 120 96 58 6 2 282 % of respondent 42.55 34.04 20.57 2.13 0.71 100

INTERPRETATION: Out of 282 respondents, 42.55% respondents has rated Amul Company as excellent

34.04% respondents has rated Amul Company as very good 20.57% respondents has rated Amul Company as good 2.13% respondents has rated Amul Company as fair 0.71% respondents has rated Amul Company as poor

14.2 Amul Brand Particular Excellent Very Good Good Fair Poor Total Frequency 180 85 17 0 0 282 % of respondent 63.83 30.14 6.03 0 0 100

INTERPRETATION: Out of 282 respondents, 63.83% respondents has rated Amul Company as excellent 30.14% respondents has rated Amul Company as very good 6.03% respondents has rated Amul Company as good

14.3 Test/ Quality of Amuls Product Particular Excellent Very Good Good Fair Poor Total Frequency 165 85 32 0 0 282 % of respondent 58.51 30.14 11.35 0 0 100

INTERPRETATION: Out of 282 respondents, 58.51% respondents has rated Amul Company as excellent 30.14% respondents has rated Amul Company as very good 11.35% respondents has rated Amul Company as good

14.4 Advertisement Particular Excellent Very Good Good Fair Poor Total Frequency 127 80 60 10 05 282 % of respondent 45.04 20.37 21.28 3.55 1.76 100

INTERPRETATION: Out of 282 respondents, 45.04% respondents has rated Amul Company as excellent 20.37% respondents has rated Amul Company as very good 21.28% respondents has rated Amul Company as good 3.55% respondents has rated Amul Company as fair 1.76% respondents has rated Amul Company as poor

14.5 Overall Rating Particular Excellent Very Good Good Fair Poor Total Frequency 158 90 28 5 1 282 % of respondent 56.03 31.91 9.93 1.77 0.36 100

INTERPRETATION: Out of 282 respondents, 56.03% respondents has rated Amul Company as excellent 31.91% respondents has rated Amul Company as very good 9.93% respondents has rated Amul Company as good 1.77% respondents has rated Amul Company as fair 0.36% respondents has rated Amul Company as poor

Q.15 Annual Income Income Bellow 50000 50000-1Lacks 1-2 lacks More than 2L Total Frequency 186 75 18 21 300 % of respondent 62 25 6 7 100

INTERPRETATION: Out of 300 respondents, 62% respondents have bellow 50000 income per annum 25% respondents have 50000-1 lack income per annum 6% respondents have 1-2 lack income per annum 7% respondents have more than 2 lack income per annum

Q.16 Number of Family Members Family member 1 2 3 4 More than 4 Total Frequency 3 9 50 21 217 300 % of respondent 1 3 16.67 7 72.33 100

INTERPRETATION: Out of 300 respondents, only 1% respondents has 1 family member 3% respondents has 2 family member 16.67% respondents has 3 family member 7% respondents has 4 family member 72.33% respondents has more than 4 family member

SWOT ANALYSIS STRENGTH

 CO-OPERATIVE CULTURE All the co operative work together to accomplish a particular task. REASONABLE MARGIN The system works only for farmers and for consumers, not for profit. QUALITY AMUL aims at providing quality to the customers at minimum cost. BRAND STRENGTH The strong brand equity of AMUL, which made it possible to become a market leader in milk and milk products. PRODUCT INNOVATION Under its umbrella brand AMUL has added a wide range of milk products like- cheese, butter, Srikhand, flavored milk, Ice-Cream, Chocolate, Sugar-free Chocolate, Probiotic Ice-Cream etc. Recently AMUL launched Pizza and milkshakes. EXCELLENT PROMOTIONAL TOOLS AMUL is promoting with the help of advertisement, personal selling, sale promotion etc. AMUL generally use hoarding for its promotion. Recently, AMUL is also sponsoring Star Channel for its program star Voice of India. WEAKNESS Co-operative culture if not dealt properly can affect the organization. Animals are now taken as side business. This can affect the industry as the main raw material is milk which is provided by animals. Illiteracy of the farmers obstructs the successful functioning of the organization. It makes it impossible for the industry to convince them and change the peoples mindset. Sometimes government policies also stand as an obstacle in front of the organization for its functioning.

OPPORTUNITIES

 AMUL is exporting its products in different countries like UAE, Singapore, Australia, U.S.A. and Gulf Countries. Being, Asias largest milk brand AMUL has acquired significant position in the global market. Day by day increase in the collection of the milk, AMUL has wide opportunity to produce variety of products THREATS With the advent of multinational companies in India the competition has intensified. Amul is facing a tough competition with the companies like Cadbury, Nestle, and Britannia etc. In the health drink segment for its Stamina Amul is facing competition with PepsiCo India, Parle Agro etc. Similarly in beverage section also it is having a lot of competitors. Animals are now taken as side business by the farmers. Their illiteracy poses a threat to change their mindset thereby affecting the organization.

FINDINGS AND SUGGESTIONS

There is a scope of business as there is a demand for dairy products. AMUL Dairy should open more outlets to get the maximum advantage of the demand.

 he

Need to put more stress in the face-to-face direct marketing to reach to the customers.

The increasing demand for these products presents a great opportunity for t Production.

The major problem faced by Retailers and AMUL Retailers is the SUPPLY problem i.e. problem with the distribution. The company should aim at improving its SUPPY CHAIN MANAGEMENT. The company should increase incentives that can increase Retailers Nominal Income. This can be done through certain Schemes that increase the overall sales. The company should lay emphasis on proper PROMOTION of the brand at the Retail Outlet.

CONCLUSION Amul is a highly successful co-operative sector in world. Which truly work for farmers who are the members of union. All departments are working well and help the union to reach towards top position. I have list out some recommendations. They are as follows.

Special Seminar should be arranged in village for guiding the village people in proper take care of Animal. Amul should do research actively in village for guiding the village people in proper take care of Animal. Amul should do research activity in animal husbandry practice to increase the milk production. Amul has competitive established system. The four hands of Amul are working successfully with corporation. The people of Amul are very co-operative and enthusiastic. Amul is famous as Anand pattern for its co-operative organization in world. So its a matter of proud for the people of Anand as well as India. Amul is really The Taste of India. According to my point, success factors of Amul are hard work, discipline, co-operative structure, production technology development.

BIBLIOGRAPHY BOOKS: The Amul India Story: Ruth Heredia

: Kotler (11th Edition)

Marketing

Management

By

Philip

WEBSITE: www.amul.com www.google.com