A

SUMMER TRAINING PROJECT REPORT

ON
“A STUDY ON MARKETING STRATEGY OF
AMUL WITH RESPECT TO MILK MARKET”

In the partial fulfillment for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION
Affiliated To: C.C.S. University, Meerut
ACADEMIC SESSION
(2016-2019)

SUBMITTED TO: SUBMITTED BY:

DR. SHILPI SARNA ADITYA VARSHNEY
(Asst. Professor) ROLL NO – 169359009
BBA VITH SEM.

INSTITUTE OF MANAGEMENT STUDIES

GHAZIABAD

1
 DECLARATION

I hereby declare that the Project Report titled “A STUDY ON MARKETING STRATEGY OF

AMUL WITH RESPECT TO MILK MARKET” is my own work and that, to the best of my

knowledge and belief, it reproduces no material previously published or written that has been

accepted for the award of any other degree of diploma, except where due acknowledgement has

been made in the text.

Aditya Varshney
Enrollment no: M16137943
Date:

2
 Certificate

This is to certify that Mr. / Ms. ……………………….. a student of BBA (2016-19 Batch), at
IMS Ghaziabad, University Courses Campus, has undertaken the project on
“-----------------------”. The survey, data collection, & analysis work for preparing the project has
been carried out by the student in partial fulfillment of the requirements for the Award of BBA
Degree in ________________, under my guidance and supervision.
I am satisfied with the work of Mr. /Ms. …………………………..

Date:
Mentor(s) Name: DR. Shilpi
Sarna

(Signature)

3
 Acknowledgement

It was a great honour to assign the project “A Study on marketing strategy of Amul in Milk
Market”. I express my sincere thanks to Mr. Sudhir Gupta,(Area Manager-East Delhi) for
giving me the opportunity to do training and to learn and upgrade my skills in this esteemed
company.

I would like to express my sincere gratitude to my project guide Mr. Alok Sharma (Sales &
Manager, Amul) providing constant guidance and encouragement. His constructive criticism &
suggestion benefited me a lot. I am also thankful to all those people who directly or indirectly
helped me in completion of this project successfully.

The making of any report calls for contribution and co-operation from many others besides the
individual alone. It is the result of meticulous effort put in by many minds that contribute to the
final report formation and this report is no exception. Several eminent people have valuable
contribution to this report through their inputs.

I thank him for being my mentor, educating me about the working and intricacies of the, the
distribution network and innumerable other details. I hope this project serves the purpose it was
intended for and benefits the organization in as many ways as possible.

ADITYA VARSHNEY

4
 TABLE OF CONTENTS

Chapter Index Page

No.
Chapter 1. Introduction 1-2
Chapter 2. Company Profile- Amul (GCMMF) 3-35
 Products Profile
 Competitors

Chapter 3. Research Methodology 36-43

Chapter 4. Objectives 44-45
Chapter 5. Data Analysis & Interpretation 46-57
Chapter 6. Marketing Strategies 58-70
Chapter 7. SWOT Analysis 71-75
Chapter 8. Suggestion & Recommendation 76-78
Chapter 9. Limitations 79-80
Chapter 10. Conclusion 81-82
Chapter 11. Bibliography 83-84
Chapter 12. Questionnaire 85-87

Chapter - 1
5
INTRODUCTION

6
 INTRODUCTION

Amul is basically operated from Anand and it’s on co-operative basis. Amul produces
large variety of product range starting from Milk, Misti Dahi, Mozzarella, Cheese and
Ready to eat pizza as well as Ice creams and chocolates. Amul has been the market leader
in butter for last 55 years. No such competitor stands before Amul butter.

Therefore Amul decided to enter into Ice cream field in 2002. After a long research in this
field, an output obtained was positive. Though of the tough competitors like Mother
Dairy, HLL, Britannia, Cadbury and many more. Amul was ready to face them. Amul was
very successful and got a positive response from the market in 2002. It was because of its
brand image, product range and test which were given to the retailers.

The main competitors in Sahibabad and Ghaziabad were Mother Dairy, Paras and Parag
milk . Mother Dairy was very strong due to its facilities as well as it has made a room in
customers mind. Whereas Amul had also provided a deep freezer on security on
preference of the retailer. Paras was the second major competitor due to its huge
investments of money on sales promotion as well as Paras provides a large variety of
product range and attractive packaging.

Amul had a very good advantage of its good brand image. It has captured a very good
market in Ghaziabad and Sahibabad area. Amul has a start to end range of every product.
Consumers are very much attracted towards Amul’s quality, which was highest among all
competitors .

The basic strength of the Indian economy is agriculture on which seventy percent of the
population depend for their livelihood. And a part of it is the Indian dairy industry.

7
 Chapter - 2

COMPANY PROFILE

8
 COMPANY PROFILE

Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which
aims to provide remunerative returns to the farmers and also serve the interest of consumers by
providing quality products which are good value for money.

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 hones since 1946. 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. (Rs. 29225 Million in 2004-05). Today
Amul is a symbol of many things. Of 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 farmer’s
organization. And of a proven model for dairy development.

Members: 12 district cooperative milk producers' Union

No. of Producer Members: 2.36 million

No. of Village Societies: 11,333

Total Milk handling capacity: 6.9 million litres per day

Milk collection (Total – 2004-05): 1.81 billion litres

Milk collection (Daily Average 2004-05): 4.97 million litres

Cattlefeed manufacturing Capacity: 2340 Mts per day

9
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food
products marketing organisation. It is a state level apex body of milk cooperatives in
Gujarat which aims to provide remunerative returns to the farmers and also serve the
interest of consumers by providing quality products which are good value for money.

MEMBERS:
12 district cooperative milk producers' Union
No. of Producer Members:
2.28 million
No. of Village Societies:
11,132
Total Milk handling capacity:
6.7 million litres per day
Milk collection (Total - 2002-03):
1.86 billion litres
Milk collection (Daily Average 2002-03):
5.08 million litres
Milk Drying Capacity:
510 metric Tons per day
Cattlefeed manufacturing Capacity:
1450 Mts per day

10
 SALES TURNOVER

Rs (million)
US $ (in million)
1994-95 11140
355

1995-96 13790
400

1996-97 15540
450

1997-98 18840
455

1998-99 22192
493
1999-00 22185
493

2000-01 22588
500

2001-02 23365
500

2002-03 27457
575

11
THE MOPPET WHO PUT AMUL ON INDIA'S BREAKFAST TABLE

50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a
year in 1966 to over 40,000 tonnes a year in 2003. 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.

Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old
housewife 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 overnight. "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 somehow or the other the campaign always seemed to crop up in
our conversation."

For 35 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 for
being the longest running campaign ever. The ultimate compliment to the butter came
when a British company launched a butter and called it Utterly Butterly, last year.

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.

12
One of the first Amul hoardings In 1969, when the city first saw the beginning of the
Hare Rama Hare Krishna movement, Sylvester daCunha, Mohammad Khan and Usha
Bandarkar, then the creative team working on the Amul account came up with a clincher
-- 'Hurry Amul, Hurry Hurry'. Bombay reacted to the ad with a fervour that was almost as
devout as the Iskon fever.

That was the first of the many topical ads that were in the offing. From then on Amul
began playing the role of a social observer. Over the years the campaign acquired that all
important Amul touch.

India looked forward to Amul's evocative humour. If the Naxalite movement was the
happening thing in Calcutta, Amul would be up there on the hoardings saying, "Bread
without Amul Butter, cholbe na cholbe na (won't do, won't do). If there was an Indian
Airlines strike Amul would be there again saying, Indian Airlines Won't Fly Without
Amul.

Amul's point of view on the MR coffee controversy 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 the Amul ads continue to tease a laughter out
of them. 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 don't
pander to your nationality or certain sentiments. It is pure and simple, everyday fun. [Our
Members Unions: Sumulonline:com | Village Societies]

13
 Sales Turnover Rs (million) US $ (in million)
1995-96 11140 355
1996-97 13790 400
1997-98 15540 450
1998-99 18840 455
1999-00 22192 493
2000-01 22185 493
2001-02 22588 500
2002-03 23365 500
2003-04 27457 575
2004-05 28941 616

AMUL KOOL :
‘Nature’s finest flavoured milk is here’

GCMMF launched Amul Kool in Delhi and NCR in 2004 to cater the demand of consumers and
to fill in the gap between demand and supply. It reaches consumers within hours of it being
packed at the right temperature to ensure that it retains all its natural goodness.

Treasure of Natural Goodness

Amul Kool is highly nutritious and contains proteins, minerals, carbohydrates and vitamins i.e.
SNF as it is commonly called. Amul Kool also contains natural fat and natural SNF as it is from
natural source and does not contain milk powder.

Quality Standards

Amul Kool strictly conforms to quality standards of Prevention of Foods & Adulteration Act
(PFA). This means when one buy Amul Kool he/she is sure to get:

 Nature’s perfect food for the health of your family

14
  Milk which has longer because of its superior bacteriological quality and the state of the
art processing technology.

 The right quantity as mentioned on the packs

 Consistent quality and ample quantity throughout the year even during festive and lean
session.

 The accurate taste which is mentioned on the bottle or pack.

http://www.amul.com/ramkrishna.html - topKOOL

FAT ENERGY QUANTITY MRP per

Amul Kool 9.7% 184 cal. 200ml. Rs. 10/-

Gagan 8.9% 180cal. 200ml. Rs. 10/-

NESTLE ----------- 200cal. 200ml. Rs.15/-

GCMMF – BUSINESS PHILOSOPHY

 To serve the interests of milk producers.

 To provide quality products to consumers – value for money.

INDUSTRY STANDING

 India’s largest food products marketing organisation with an annual turnover of over Rs.
2700 crores.

 Market’s popular brands Amul and Sagar.

 India’s largest exporter of dairy products.

 India’s largest “cold chain” network.

 No.1 market share holder in India for Butter, Cheese, Ice-cream, Dairy Whitener,
Condensed Milk, UHT Milk, and Baby Food.
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  Presently marketing pouch liquid milk in five states namely, Gujrat, Maharashtra,
Chattisgarh, Rajasthan, Delhi and Madhya Pradesh.

OUR VALUES

 Customer Orientation.
 Commitment to Producers.
 Belongingness.
 Co-operation.
 Pride in Organisation.
 Employee Satisfaction.
 Integrity.
 Excellence.
 Leadership.
 Quality..

MISSION STATEMENT
We, at GCMMF, endeavour to satisfy the taste and nutritional requirements of the world, through
excellence in marketing through our committed team.

Trough co-operative network, we are committed to offering quality products that provide best
value for money.

GCMMF – JOURNEY 2005

GCMMF will be an outstanding marketing organisation with specialization in marketing of food
and dairy products, both fresh and long life, with customer focus and information technology
integration. The network would consist of over 100 sales offices, 7500 stockists covering atleast
every taluka headquarter town, servicing nearly n1 million retail outlets with a sales turnover of
Rs.10,000 crores (100 Billion), and serving several cooperatives.

GCMMF shall also create markets for its products in the neighbouring countries.

Facts on 30th Annual General Body Meeting

16
Adopted at their meeting held on 8th June, 2004 for presentation at the 30th Annual General
Body Meeting.

As Amul was founded on a sound business model: providing quality products to consumers
at an affordable price. The Pundits have described our model as "value for money" and it has
been adopted by a number of companies. While imitation may be flattery, most other
organisations fail to understand that "value for money" is not just about low prices - it means
offering the best quality products at the most reasonable price. As a cooperative, our faith
requires that we safeguard the interest of both our major stakeholders the farmers - and the
consumers whose loyalty is essential to our continued success.

MILK PROCUREMENT

Total milk procurement by Member Unions averaged 51.13 lakh kilograms per day, a
marginal decline from 52.35 lakh kilograms per day, achieved in 2002-2003. However, the
good monsoons experienced during last year and the better procurement prices on offer are
expected to encourage higher milk production and procurement in the current year.

SALES
During the year, your Federation's sales registered a growth of 5 percent increase to reach Rs.
2,881.96 crores including consignment sales of Rs.62.95 crores. The dairy line grew by about
18% despite the loss of a sizable edible oil business. In 2004-05, the sale of Amul Milk in
pouches increased by 34 percent in value terms. A notable development in the area of liquid milk
in pouches has been the successful launch of Amul Milk in the Delhi market during November
2003. Within under 60 days of launch, achieved sales of 1 lakh liters per day. UHT Milk has
grown in both value and volume terms by 60 percent, which shows that it has really come upon
the high growth stage. Despite intense competition, sales value of Amul Butter grew by 19
percent and that of milk powders has firmed up further. The sales of the Amul Cheese range
increased by 13 percent. Products like Flavoured Milk, Amul Fresh Cream, Paneer, Mithaimate,
Softy Mix, and fresh curd demonstrated their potential to become dominant brands

17
DISTRIBUTION

During the year, the major development on the distribution front was the development and
alignment of four distribution highways-those of Fresh Products, Chilled Products, Frozen
Products and Ambient Products. This is a significant achievement because it allows us to
develop synergies among all our product lines and to leverage these highways to introduce
and distribute new products as per market demand. I take pleasure in declaring that no other
organization in India has been able to develop this kind of channel synergy so far.

Another major initiative undertaken during the year was the Time-based Military Technique
(TMT) of distribution. This has been deployed to effect a nationally synchronized mass
distribution of products with the objective of achieving total channel penetration on a single
day. Most of our products launched or re-launched through this technique have seen
significant gains in distribution and availability.

After Distributor Salesmen in the previous year and Distributors in the year before last, it
was the turn of the top Retailers across the country to participate in the Amul Yatra
Programme. It is conducted by your Federation to bring our channel partners face to face
with our cooperative institutions, activities, culture and achievements through a guided tour
in and around Anand. A total of 114 Distributor Salesmen and 482 top retailers from across
the country participated in the Amul Yatra this year. With the opening of several new milk
markets and 3 separate Milk Sales Offices at Mumbai, New Delhi and Boisar, the number of
Milk Area Delivery Agents has increased. 95 Milk Area Distribution Agents also visited
Anand for Amul Yatra. Distributors have further enhanced their infrastructures in terms of
installation of cold storage arrangements, enhanced bank guarantee limits with Federation
and introduced good quality delivery vehicles. An objective evaluation was done in the form
of distributor renewal and Performance appraisal.

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INFORMATION TECHNOLOGY INTEGRATION

The Federation has further advanced our technological leadership by implementing a Virtual
Private Network (VPN) with secured fiber optic connectivity which, with deployment of the
"Amul Online ERP" System, will facilitate electronic transactions between member unions
and the Federation offices, providing a seamless and smooth flow of information that
enhances operational efficiency. The Federation now enjoys a significant advantage in rapid
reaction to changing business demands.

Your Federation is bolstering our brand identity as a farmers' co-operative through the
Internet based "amul.coop" URL and e-mail addresses. This will continually remind the
world's consumers that we are a cooperative, and proud of it. This identity gives us a vital
business advantage and facilitates Amul brand penetration across the world. It also
strengthens our co-operatives by bringing our members together and closer to consumers.

COOPERATIVE DEVELOPMENT PROGRAMME

During the last four years, Member Unions have implemented an Internal Consultant
Development (ICD) intervention focused on developing leadership among member
producers, helping them to better manage their dairy business.

During the year, Member Unions continued to implement the module on Vision Mission
Strategy (VMS) for primary milk producer members and Village Dairy Cooperatives.
Facilitated by specially trained consultants, 1,073 Village Dairy Cooperative Societies
(VDCS) have conducted Vision Mission Strategy Workshops, and have prepared Mission
Statements and Business Plans for the next five years. The VMS module has prompted milk
producers to initiate activities at villages that have far-reaching effects on the milk business.

The success of the program has led to Member Unions focusing on implementing this VMS
module and developing Business Plans for all VDCS, thus strengthening them to face the
fierce competition ahead.

With the objective of encouraging professional management by Milk Producers and dairy
cooperative societies, Member Unions have initiated Members' Business Development
19
Programme (MBDP). During the last three years, 2,483 villages and 1,53,108 milk
producers participated in the programme. This has resulted in introduction of new scientific
animal husbandry management methods on a significant scale.

A Chairmen and Secretaries' Orientation Programme is being conducted at Mother Dairy,

Gandhinagar. Member Unions, supported by your Federation, carry out this program to
increase awareness regarding the dairy industry scenario and to develop leadership skills
among Chairmen and Secretaries. During the year, 5,797 chairmen and secretaries from
2,944 Village Dairy Cooperative Societies participated in the program.

An ongoing emphasis of Member Unions has been to encourage increased women milk
producers' participation in their Dairy Cooperative Societies. To develop and enhance
leadership skills and qualities, Member Unions organised three Self Managing Leadership
(SML) workshops at Prajapita Brahmakumaris, Mount Abu which attracted the participation
of 3,100 women resource persons along with the Chairmen and Secretaries of 750 VDCS.

WHAT THE FUTURE HOLDS

As there is a steady increase in consumer expectations. Product and service quality is rapidly
becoming the minimum threshold for consumer acceptance. To achieve and maintain
competitive advantage, innovation in product design and delivery are increasingly essential.
Innovation must now define us as an organization.There must innovate at each stage in our
value chain - production, procurement, processing, marketing and branding.

Innovation can not be mandated or forced out of people. It is everywhere a function of

the quality of people and environment. Need to have enough skilled people working in a
self-actuating environment to produce innovation. In these times of increasing market
opportunities, to devise more effective ways of attracting and retaining skilled human
resources. It is to be realized that just as the market is expanding for our products, so it is
opening up new opportunities for the skilled people that we need to tap the market.
Further, it does not suffice merely to retain skilled human resources. It is also necessary to
provide them an adequately self-motivating work environment that draws out the best out
of them on a sustained basis.

20
From the year 1994, our unions have been engaged in the practice of third party validation
of its practices. Since then, we have been awarded the ISO 9002:2000, the HACCP, the ISO
14001 and similar marks of our excellence in milk procurement and processing. The
importance of standardization of our village society election processes lies in their
instrumentality in throwing up genuine and visionary leaders. It determines the future of the
cooperative movement.

THE BIRTH OF AMUL

 Linked to the freedom movement of India.
 Founded in 1946 to stop the exploitation of milk producers at the hands of middlemen.
 A Co-operative movement – member control on milk production, processing and
marketing.
 A humble beginning with two village societies and 247 litres of milk.

THE GROWTH OF AMUL

 Co-operative movement spread like wild fire in the state.
 Rapid increase in milk procurement.
 Identification of Bombay liquid market.
 Investing in manufacturing plants that produce milk powder, butter, cheese and
condensed milk.
 Launch of “Amul” as a brand.
FORMATION OF GUJARAT COOPERATIVE MILK MARKETING
FEDERATION LTD [GCMMF]
Formed 1973
No. of Cooperative Unions 12
No. of Dairy plants 19
Capacity 6,595 Thousand Litres per Day
It is Apex Marketing Federation of 12 District Milk Unions in Gujrat to operate own marketing
and distribution networks pan India and abroad

Address:
Gujarat Cooperative Milk Marketing Federation Ltd., Amul Dairy Road
21
Anand, Gujarat, India 388 001, Tel: +91-2692-241621 & 23
Web : www.amul.com

AMUL KOOL BUSINESS DETAILS

WHAT IS AMUL KOOL ?

AMUL KOOL
SUGAR
TOND MILK
(15%)
SOLID NOT FAT
FAT
FAT
VITAMINS C

CARBOHYDERATE

CALCIUM

PROTEINS

IRON

LACTOSE

Amul Kool is a high value food. It supplies body building Proteins, bone forming Calcium, and
health giving Vitamins and furnishes energy giving Carbohyderate,Natural identical flavour
giving a natural taste and Milk Fat in an easily digestible and assimilable for Health.

22
23
DIFFERENCE BETWEEN AMUL KOOL AND GAGAN

Constituents AMUL KOOL GAGAN

ENERGY 184 Cal. 180 Cal.

COLOUR & FLAVOUR NATURAL IDENTICAL

FLAVOUR SYNTHETIC FOOD
COLOURS & ADDED
FLAVOURS
MILK USED TOND MILK DOUBLE TOND MILK

TYPES OF MILK USED:

Variation in different types of milk is due to the difference in their Fat and SNF content.

TYPE OF MILK FAT % SNF %

DOUBLE TOND MILK 1.5 9.0

TOND MILK 3.0 8.5

24
 AMUL IN DELHI:

Delhi National Capital Region (NCR), among the biggest milk markets in the country, is
dominated by Mother Dairy currently. Amul and NDDB's non-compete agreement has prevented
the former from launching its liquid milk in the Delhi market till 2003.

With the non-compete agreement having run out this year, Amul fresh milk was launched in
Delhi last month in two variants — full cream and toned — priced at par with that of Mother
Dairy at Rs 18 and Rs 14 per litre, respectively. Amul is bringing its milk into Delhi through one
of its district co-operative unions, the Gujarat-based Mehsana Union. The milk will be packed at
Kwality Dairy in Ballabgarh, leased out to Amul for this purpose. Amul will use the same
distribution network as butter and cheese to retail Amul Milk in Delhi. According to Mr R.S.
Sodhi, Amul’s marketing head; Amul will not use skimmed milk powder in its milk.

GCMMF officials say the company's milk capacity has already touched 80,000 litres per day
(LPD) and have plans to take it to 3 LPD. Amul is now selling through 2,500 retail outlets and
will increase this to 7,500 apart from covering outlets which are selling Amul butter.

http://www.domain-b.com/scripts/recommend/recommend.aspThe Delhi market comprises 40

lakh litres currently and is dominated by Mother Dairy, which sells 10 lakh LPD. The other
organised sector players are Paras Dairy, which sells 3 lakh LPD, state-owned Delhi Milk
Scheme (2.5 lakh LPD), Gopaljee (1-1.5 lakh LPD) and Britannia 30-40,000 LPD.

In just a fortnight, Amul milk has taken the Indian capital by storm, rapidly eating into the
market share of long time players like Mother Diary and Paras. Who cares if it was rivalry or
business strategy that made the Gujarat Cooperative Milk Marketing Federation (GCMMF) enter
the capital with Amul milk to take on state-owned Mother Dairy in its home turf? From the
response, Delhiites seem to be lapping up Amul’s pouches of full cream and toned milk in
unimagined quantities.

In just two weeks of entering the market, Amul is beginning threaten the virtual monopoly of
Mother Dairy and Paras. “We did not expect to reach 70,000 litres daily supply in little over two
weeks,” said R.S. Khanna, a GCMMF official here.

25
“We had expected to go up gradually and had made arrangements for pasteurisation and
packaging of just 60,000 litres per day at Kwality Dairy’s unit in Faridabad, which we have
leased,” Khanna said. But in less than one week, Amul notched the mark of 50,000 litres per day.
GCMMF is bringing milk to Delhi through one of its district co-operative unions, located at
Mehsana, around 700 km from the capital.

The fresh milk is transported through insulated containers of between 12,000 to 20,000 litres
capacity at two degree centigrade. After the 24 to 30 hours journey by road, the milk is processed
and packaged at Mehsana before being distributed in the Indian capital. “The packaged milk is
being sold through 2,500 retail outlets, which we hope to raise to 7,500 as we soon as we are able
increase the supplies to 100,000 litres.

“In two months our target is to raise supplies to 200,000 litres per day,” he added. The official
admitted that the idea of entering the Delhi market had originated in August when the state and
central governments approached the GCMMF to help tide over an acute milk shortage. “Having
helped to bridge the demand supply gap, we decided to come in with fresh milk supply, which
does not contain any milk powder and is creamier and of richer quality compared to most other
milk supplied in the city because it has more fat and solid non-fats like protein and minerals,”
said Khanna. At over five million litres a day, Delhi is one of the biggest markets for milk in the
country. Of the supplies from the organised sector, Mother Dairy has been the undisputed leader
with 1.8 million litres daily sales through package and vending machines. The other big names
are Paras, Param, Gopaljee and Umang. Now Amul milk has arrived to eat into the share of other
players in the market on the strength of its quality and brand equity.

26
 COMPETITORS OF AMUL :

PARAS(VED RAM & SONS)

MADHUSUDAN

MOTHER DAIRY

AMRIT FOOD

GOPALJEE(G.K.DAIRY)

UMANG(J.K.DAIRY)

PARAM

RAMLAL

MADHUBAN

MOTHER DAIRY

Mother Dairy - Delhi was set up in 1974 under the Operation Flood Programme.

t is now a subsidiary company of a wholly owned company of the National Dairy Development
Board (NDDB).

Mother Dairy sources its entire requirement of liquid milk from dairy cooperatives.

Mother Dairy sources fruits and vegetables from farmers/growers associations. Mother Dairy
also contributes to the cause of oilseeds grower cooperatives that manufacture/ pack the Dhara
range of edible oils by undertaking to nationally market all Dhara products.

27
Mother Dairy's constant endeavor to

ensure that milk producers and farmers regularly and continually receive market prices by
offering quality milk, milk products and other food products to consumers at competitive prices
and;
uphold institutional structures that empower milk producers and
farmers through processes that are equitable.

At Mother Dairy, processing of milk is controlled by process automation whereby state-of-the-art

microprocessor technology is adopted to integrate and completely automate all functions of the
milk processing areas to ensure high product quality/ reliability and safety.

Mother Dairy is an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS certified organization.
Moreover, its Quality Assurance Laboratory is certified by National Accreditation Board for
Testing and Calibration Laboratory (NABL)- Department of Science and Technology,
Government of India.

Mother Dairy markets & sells dairy products under the Mother Dairy brand (like Liquid Milk,
Dahi, Ice Creams, Dairy Whitener and Butter), Dhara range of edible oils and the Safal range of
fresh fruits & vegetables, frozen vegetables and fruit juices at a national level, through it's sales
and distribution networks, for marketing food items.

In times to come, Mother Dairy shall strive to become a leading

player in the food industry in India.

Type of Milk Milk Fat SNF

Double Tonned 1.0% 9.0%

Full Cream 0.5% 8.7%

Skimmed 6% 9%

28
29
 PRODUCT PROFILE

List of Products :

Cheese Range:

 Amul Pasteurized Processed Cheddar Cheese

 Amul Processed Cheese Spread

 Amul Pizza (Mozarella) Cheese

 Amul Shredded Pizza Cheese

 Amul Emmental Cheese

UHT Milk Range:

 Amul Taaza 3% fat Milk

 Amul Gold 4.5% fat Milk

 Amul Slim-n-Trim 0% fat milk

 Amul Chocolate Milk

 Amul Fresh Cream

 Amul Snowcap Softy Mix

 Amul Taaza Double Toned Milk

Infant Milk Range:

 Amul Infant Milk Formula 1 (0-6 months)

 Amul Infant Milk Formula 2 ( 6 months above)

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Milk Powders:

 Amul Full Cream Milk Powder

 Amulya Dairy Whitener

 Sagar Skimmed Milk Powder

 Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

 Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat

 Amul Gold Full Cream Milk 6% fat

 Amul Shakti Standardised Milk 3% fat

 Amul Smart Double Toned Milk 1.5% fat

31
  AMUL GOLD MILK
Amul Gold is Long Life standardised milk. It is fresh and only fresh milk, which has
been processed with a technology called UHT (Ultra High Temperature), hence also
known as UHT milk. Notwithstanding popular misconception, UHT technology does not
involve any use of preservatives. The UHT treatment ensures zero microbial activation,
while preserving the maximum flavour, taste, and nutritional value. The aseptic
packaging system protects the product from air and light and guarantees a long shelf life
of 180 days without refrigeration.

Amul Gold contains 4.5% fat and 8.5% SNF minimum and is ideal for making sweet
dishes (like kheer, payasam etc.) and for setting curds. It is also ideal for drinking straight
from the pack for kids and adolescents who simply love its creamy taste sans the
inconvenient cream layer! Amul Gold comes in convenient 1 liter and 500ml packs.

32
 AMUL LITE SLIM AND TRIM MILK

Amul Lite is Long Life skimmed milk. It is fresh and only fresh milk, which has been
processed with a technology called UHT (Ultra High Temperature), hence also known as
UHT milk. Notwithstanding popular misconception, UHT technology does not involve
any use of preservatives. The UHT treatment ensures zero microbial activation, while
preserving the maximum flavour, taste, and nutritional value. The aseptic packaging
system protects the product from air and light and guarantees a long shelf life of 180 days
without refrigeration

Amul Lite Milk is a unique offering to health conscious milk lovers. With virtually zero
fat content, nil cholesterol and 8.7% SNF minimum, it gives you all the proteins, vitamins
and minerals of natural milk without your having to imbibe unnecessary flab in the deal!
Amul Lite Milk comes in convenient 1 liter, 500ml and 200ml pack

33
 AMUL TAAZA DOUBLE TONED MILK

Amul Taaza is Long Life double toned milk. It is fresh and only fresh milk, which has
been processed with a technology called UHT (Ultra High Temperature), hence also
known as UHT milk. Notwithstanding popular misconception, UHT technology does not
involve any use of preservatives. The UHT treatment ensures zero microbial activation,
while preserving the maximum flavour, taste, and nutritional value. The aseptic
packaging system protects the product from air and light and guarantees a long shelf life
of 180 days without refrigeration.

Amul Taaza contains 1.5% fat and 9% SNF minimum and is ideal for tea and coffee
whitening and for setting curds. It is also just right for drinking straight from the pack for
those who would like to enjoy the taste the goodness of natural while avoiding the
hazards of too much fat! Amul Taaza comes in convenient 1 liter, 500ml and 200ml packs

34
 OTHER PRODUCTS OF AMUL

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 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' organisation. And of a
proven model for dairy development.

Check out this vast and ever growing range of Amul delectables:

35
 Amul Butter Amul Cheese Spreads
Utterly Butterly Delicious Tasty Cheese in 3 great

. Flavours.

36
Amul Emmental Cheese Amul Pasteurized Processed Cheese

The Great Swiss cheese from Amul 100% Vegetarian Cheese made from

With a sweet dry flavours microbial rennet.

37
Amul Lite Gouda Cheese.
The low at fat bread spread.

Amul Pizza Mozzarella Cheese Amul Saagar Ghee

Pizza cheese….makes great tasty pizzas! Has typical rich aroma.

38
Amul Paneer Amul Mithai mate

Ready to cook paneer top make your Sweetened condensed milk

Favourite recipes! Texture.

White color & pleasant Taste

39
Amul Mithaee Gulab Jamnus Amul Gulab Jamun Mix

Pure Khoya Gulab Jamuns

Amul Cooking Butter. Amul Masti Dahi.

40
Amul Gold Milk Amul Taaza Milk

41
 These two packets are new successful inventions by Amul.

Amul Shakti Drink. Amul Nutramul Drink.

These two drinks are very successful health drinks pf Amul.

Amul Utterly Delicious Pizza Amul Fresh and Tasty Cream

42
Amul Hot Tasty Soups. Amul Dairy Whitener.

43
 Amul Shrikhand Amul Masti Buttermilk, an Ultimate

A delicious treat anytime. drink for anytime.

Amul Kool Amul Milk

The Best Flavoured Milk in the Town. Richer, Tastier, Healthier.

44
 Amul Ice creams Amul Chocolates

Cheapest and the Best Ice cream. Dark Rich Chocolates with the Best Taste.

45
 Chapter - 3
RESEARCH
METHODOLOGY

46
 RESEARCH METHODOLOGY

According to Clifford Woody research comprises defining and redefining the problems ,
formulating hypothesis or suggested solutions, collecting , organizations and evaluating
data, making deductions making deductions and reaching conclusion and at last carefully
testing the conclusions whether they fit the formulating hypothesis.
Research methodology is a procedure designed to the extent to which it is planned and
evaluated before conducting the inquiry and the extent to which the method for making
decisions is evaluated before conducting the inquiry and the extent to which the method
for making decisions is evaluated. The research methodology if scientifically developed
enables the research to establish with high degree of confidence, cause and effect
relationship between the research between the research activities and observed outcomes.

METHOD
To achieve the objective we make by use of filed research method.
Field research methods:
 Mass observation through questionnaire.
 Personal interview

RESEARCH DESIGN

A research design is the overall plan on programming of research. It includes an outline

of what the investigator will do from writing the hypothesis and their operational
implications to the final analysis of data.

Various uses of having a research design are as follows:

 It provides answers to various questions.
 It acts as a standard guide post.
 It helps in carrying out research validity, objectively, accurately.

47
 Market research projects are designed as either (exploratory research or
conclusive research) depending upon the objective of study.

The objective of the exploratory research is to seek new ideas and to discover new
relationship between different set factors in a way that will permit of specific hypothesis.

To find out there hypothesis, study of secondary sources of information, survey of

knowledge persons on case studies are conducted.

Conclusive research provides information which helps in decision making; such research
requires identifying cause and effecting relationships. This can be done by case study and
experimentation. The present marketing research is more less an exploratory research as
its objectives are aimed to find new ideas also the information required was obtained
through methods of exploratory research. The information has been gathered from the
survey of milk consumers, retailers, confectionary shops, dairy shops, general stores.
Overall the research which was used as a prototype for his market research analysis is:-
i. Define research problem.
ii. Review concepts and theories.
iii. Formulate hypothesis.
iv. Design research.
v. Collect data.
vi. Analyses of data.
vii. Interpret and reports.

SAMPLE DESIGN

It is definite plan for obtaining a sample from a population dealing with any type of milk,
loose or branded pouched milk. The type of sampling used is random sampling used is
random sampling design (RSI). The respondent in the sample include milk consumers
and retailers.

48
 PREPARING THE RESEARCH DESIGN

Before-and-after without control, after only with control, before-and-after with the
research problem having been formulated in clear terms, the researcher will be required
to prepare a research design, i.e. he will have state the conceptual structure within which
research would be conducted .The preparation of such design facilities research to be as
efficient as possible yielding maximum information. In other words, the function of
research design is to provide for the collection of evidence with minimal expenditure of
effort, time and money. But how all these can be achieved depends mainly on the
research purpose. Research purposes may be grouped into four categories, viz.,

i. Exploration
ii. Description
iii. Diagnosis, and
iv. Experimentation.

A fixable research design, which provides opportunity for the purpose of the research
study, is that of exploration. But when the purpose happens to be an accurate description
of a situation or of an association between variables, the suitable design will be one that
minimizes bias and maximizes the reliability of the data collected and analyzed.

There are several research designs, such as, experimental and non-experimental
hypothesis testing. Experimental designs can be either informal designs (such as control)
or formal designs (such as completely randomized block design, Latin square design,
simple and factorial designs), one of which the researcher must select for his own
project.

The preparation of the research design, appropriate for a particular research problem,
involves usually the consideration of the following:

 The means of obtaining the information.

 The availability and skills of the researcher and his staff (if any).

49
 Explanation of the way in which selected means of obtaining information will
organize and the reasoning leading to the selection.
 The time available for the research, and
 The cost factor relating to research, i.e. the finance for the available for the purpose.

DETERMINING THE SAMPLE DESIGN

All the items under consideration in any field of inquiry constitute a ‘universe’ or
‘population’. A cockpit enumeration of all the items in ‘population’ is known as a census
inquiry when all the items are covered no element of chance is left and highest accuracy
is obtained. But in practice this both may be true. Even the slightest element of bias in
such an inquiry will get larger and larger as the no. of observation increases. Moreover,
there is no way of checking the element of bias or its extent except through a re-survey or
use of sample checks. Besides, this type of inquiry is not possible in practice in many
circumstances. For instance, blood testing is done only on sample basis. Hence, quite
often we select only few items from the universe for study purpose. The items so selected
constitute what is technically called a sample.

The researcher must decide the way of selecting a sample or what is popularly known as
the sample design. In other words, a sample design

is a definite plan determined before any data are actually for obtaining a sample from a
given population. Samples can either be probability samples or non-probability samples.
With probability samples each element has a known probability of being included in the
sample but in non-probability sampling the researcher is not allowed to determine this
probability. Probability samples are those based on simple random sampling, stratified,
cluster/area sampling whereas non-probability samples are those based on convenience
sampling, judgement sampling and quota sampling techniques. A brief description of the
sample designs is as follows:

50
SIMPLE RANDOM SAMPLING

This type of sampling is also known as chance sampling or probability sampling where
each and every item in the population has an equal chance of inclusion in the samples and
each and every item in the population has an equal chance of inclusion in the samples, in
case of finite universe, has the same probability of being selected. For example, if we
have to select a sample of 300 items from a universe of 15,000 items, then we can put the
name for numbers of all the 15,000 slips of paper and conduct a lottery. Using the random
numbers tables is another method of random sampling. To select the sample, each item is
assigned a number from 1 to 15,000. Then, 300 five digits random numbers are selected
from the table. To do this we select random measurements, or the days, with the help of
which they examine the truth contained in the hypothesis.

But in the case of a survey, data can be collected by any one or more of the following
ways:
a. By observation: - This method implies the collection of information by way of
investigator’s own observation, without interviewing the respondents. The information
obtained relates to what is currently happening and is not complicated by either the past
behaviour or future intentions or attitudes of respondents. This method is no doubt an
expensive method and the information provided by this method is also very limited. As
such this method is not suitable in inquiries where large samples are concerned.
b. By mailing or questionnaires: - The researcher and respondents do not come in
contact with each other if this method of survey is adopted. Questionnaires are mailed to
the respondents with a request to return after completing the same. It is most extensively
used in various economic and business surveys. Before applying this method, usually a
Pilot Study for testing the questionnaire is conducted which reveals the weaknesses? If
any, of the questionnaire.

Questionnaire to be used must be prepared very carefully so that may prove to be

effective in collecting information.

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DATA ANALYSIS

After the data have been collected, the researcher turns to the task of analyzing them. The
analysis of data requires a number of closely related operations such as establishment of
categories, the application of these categories to raw data through coding, tabulation and
then drawing statistical inferences. Coding operations usually done at this stage through
which these categories of data are transformed into symbols that may be tabulated and
counted. Editing is the procedure that improves the quality of the data for coding. With
coding the stage is ready for tabulation. Tabulation is a part of the technical procedure
that improves the quality of the data is put in the form tables.

Analysis work after tabulation is generally based of the computation of various

percentages, coefficients, etc., by applying various well defined statistical formulas. In
the process of analysis, relationships of differences supporting or conflicting with original
or new hypothesis should be subject to tests of significance to determine with validity
data can to include any conclusion(s).

Sample Size:
Sample Size - 100
Area - Ghaziabad & Delhi

52
 COLLECTION OF DATA THROUGH QUESTIONNAIRES

This method of data collection is quite popular, particularly incase of big inquiries. It is
being adopted private researchers, and workers, and private and public organizations and
even government. In this method a questionnaire is sent (usually by post) to the persons
concerned with a request to answer the question and return the questionnaire.

The method of collecting data wise mailing the questionnaires to respondents is the most
extensively employed in various economy and business surveys. The merits claimed on
behalf of this method are as follows:

There is low cost even when the universe is large and is widely spread geographically. It
is free from the bias of the interviewer; answers are in respondent’s own words
Respondents have adequate time to give well thought out answers. Respondents, who are
not easily approachable, can also be reached conveniently. Large samples can be made
use of and thus the results can be made more dependable and reliable.

THE MAIN DEMERITS OF THIS SYSTEM CAN BE LISTED HERE:

Low rate of return of the duly filled in questionnaires; bias due to no response is often
indeterminate.

 It can be used only when respondents are educated and cooperating.

 The control over questionnaire may be lost once it is sent.

 There is built in flexibility because of the difficulty of amending the approach

once questionnaires have been dispatched.

 There is also possibility of ambiguous replies or omissions are difficult.

 It is difficult to know whether willing respondents are truly representative.

 This method is likely to be slowest of all.

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54
 Chapter - 4
OBJECTIVES OF THE STUDY

55
 OBJECTIVE OF THE PROJECT

The topic of my project is “A STUDY ON MARKETING STRATEGY OF AMUL IN

MILK MARKET” in Sahibabad. This includes the following Objectives to find out:-

 Packaged milk market in GHAZIABAD against loose milk.

 Brands available in the market and their average daily sales.

 The most effective media of promotion.

 Highest and lowest sale of particular Amul product and area of sale.

 Factors influencing consumer buying behaviour.

 Expectations of retailers from Amul.

 Response of the retailers to Amul as well comparative brands.

 Complaints and suggestions of retailers for a winning brand.

 Ascertain the awareness level of Amul market and its distinct image.

 What do retailers look before keeping the brand in their shop?

 Ascertain the growth opportunity as well as threats for Amul and its market.

 Give recommendation to GCMMF Ltd. regarding strategic market positioning of

Amul milk.

56
 Chapter - 5
DATA ANALYSIS

57
1. Numbers of brands of Amul you have
 3
 6
 9
 10 or more

58
2. Which Amul milk is most popular among the customers?

 Gold
 Shakti
 Tonned
 Double Tonned

59
3. Why people prefer that particular milk?
Because of its---
 Components
 Rate
 Taste

60
4. Which type of Amul customers do you have?
 Permanent
 Temporary

61
5. Which other brands do you have?
Amul
Mother Dairy
Other

62
6. Numbers of brands of Amul you have
i. 3
ii. 6
iii. 9
iv. 10 or more

63
7. Which Amul milk is most popular among the customers?

 Gold
 Shakti
 Tonned
 Double Tonned

64
 PIE CHART

The above pie chart showing the market share of different milk brands in my area. In
which it is clear that the sale of Mother Dairy milk is highest among other milk brands.
Followed by Amul , Paras, Parag and so on.

65
1. Which types of Amul customers do you have?

A. Permanent : 25
B. Temporary : 20
C. Both : 25

There are three main types of Amul customers including Permanent, Temporary and
Both.

So result comes that 35% of the total populations is permanent.

29% is the temporary and 36% is the mixture of both types of the customers.

So it can be concluded that a mix variant of the Permanent and temporary is more
involved than a permanent or temporary types of customers.

66
2. Avg. Sales of Milk (per week)

Milk Brands : Sales (In %)

A. Amul : 30%
B. Mother Dairy : 33%
C. Parag : 7%
D. Paras : 19%
E. Ramlal : 7%
F. Others : 4%

As it is transparent from the above graph that Mother Dairy is the Mother in the milk
market but as far as Amul is concerned Amul is growing very hazardly leaving all other
brands like Parag, Ramlal and other local brands and giving Amul a very healthy
competition by boosting its sales 30% of the total sales and is far away from Mother
Dairy by only by 3% and expected to cover that distance very soon.

67
 INTERPRETATION

The following facts came to light while directly observing the retailer:

Competitors
In the area in which I was doing my project the main competitor of Amul milk are Mother
Dairy,Paras, Madhusudan, Parag. Some other brands like Gopal Jee, Saras, Maan dairy
are also existing in market and also sharing some part of the milk market.

What motivates the retailer to sell milk

If the retailer is interested in selling milk, he generally looks at profit margin, price range
of milk, the brand. Most other retailers are either not be able to or not willing to buy the
deep freezer and therefore the switchover to some other brand overlooking the profit
margin or the brand name. This was also highlighted in the survey conducted, 80 percent
of the retailers who were willing to sell milk get affected by the deep freezer schemes that
different companies run.

Why the retailers hesitate to buy the deep freezers:

First of all they hesitate to buy the deep freezer as already mentioned above. The other
problems because of which they are unwilling to open 10 outlets are lack of space for deep
freezer, electricity problem that is long power cuts, financial problems, etc.
In the case of deep freezer booking majority of the retailer does not want to pay or some of
them were not able to pay out huge sum of money at one go. Because of this some highly
potential retailers, who are very much eager to open amul milk outlet get switch over to
other brand.

68
Chapter - 6
MARKETING
STRATEGIES

69
70
 AMUL’S MARKETING STRATEGIES
A: PRODUCT------------------

A product is anything that can be offered to a market to satisfy a want or need. The product can

be classified according to the basis of characteristics; durability, tangibility and use. Amul ice

cream comes under the heading of non durable goods which are tangible, which can normally

consumed in one or few uses like Vegetables and Milk. As ice cream is also consumer goods, we

can further classify it under the sub heading of convenience, shopping, specialty & cons ought

goods. In this classification ice cream comes under the heading of convenience goods.

 Convenience goods are those the customer usually purchases frequently, immediately and

with a minimum effort. Convenience goods can be further divided. Staples are goods

consumers purchase on a regular basis. Like toothpaste, soaps etc. impulse goods are

purchased without any planning or search effort like ice cream, magazines etc.

Emergency goods are purchased when a need is urgent like umbrellas during rains.

Product Mix

A product mix is the set of all products and items that a particular seller offers for sale. As Amul

has its product mix like icre cream, milk, butter cheese, chocolate, dairy whiteners, pizzas, infant

milk.A company’s product mix has a certain width, length & depth.

 The width of a product mix refers to how many different product lines the company

carries.

 The length of a product mix refers to the total no. of items in the mix.

 The depth of a product mix refers to how many variants are offered of each product in the

line.

71
Product-Mix Width

Ice cream, cheese, milk, chocolate, butter, infant milk, dairy whiteners.

Product-Line Analysis

Product line managers need to know the sales and profits of each item in their line in order to

determine which items to build, maintain, harvest or divert they also need to understand each

product lines market profile.

B: PROMOTION:

Today there is a new view of communications as an interactive dialogue between the company

and its customers that takes place during the pre-selling, selling, consuming & post consuming

stages. Companies must ask not only “How can we reach our customers” but also “How can our

customers reach us” In reference with Amul, it always tries to communicate some current topic

in its hoardings (road side) and also on T.V. advertisements. Amul Promotional Mix Advertising

 TV campaign

 Posters & stickers

 Pamphlets

 Wall painting

Public Relations Sales Promotion

 Press campaign  Food festivals

 Posters/stickers/t-shirts/caps

72
The promotion mix consists of five major modes of communications:

1. Advertising: Any said form of non personal presentation and promotion of ideas, goods

or services by an identified sponsor.

2. Sales promotion: AA variety of short-term incentives to encourage trial or purchaser of

a product or service.

3. Public relations and publicity: A variety of programs designed to promote or protect a

company’s image or its individual products.

4. Personal selling: Face to face interaction with one or more prospective purchasers for

the purpose of making presentations answering questions and procuring orders.

5. Direct marketing: Use of mail, telephone, fax, email or Internet to communicate

directly with or; lkkk response or dialogue from specific customers and prospects.

The objectives of promotion are:

1. Awareness: If most of the target audience is unaware of the product, the

communicator’s task is to build awareness, perhaps just name recognition, with

2. simple messages repeating the product name. For e.g. Real Milk Readl Icre Cream for

Amul Ice Cream.

3. Knowledge: The target audience might have product awareness but not know much

more. For e.g. everybody knows Amul is manufacturing butter & milk products, but

many of us don’t know Amul also supplies Frozen Pizzas and Infant Milk, Health

drinks

4. Conviction: A target audience might prefer a particular product but not develop a

conviction about buying it. For e.g. Amul’s Tricone & k/w Cornetto are the

supplementary products.
73
 5. Purchase: Finally, some members of the target audience might have conviction but

may not quite get around to making the purchase. They wait for more information or

plan to act later. The communicate must lead these customers to take the final step,

perhaps by offering the product at a low price, offering a premium or letting

consumers try it out. In case of Amul icre cream, it is offering the discount on Tricone

Rs. 3/- off and on Brick One+One scheme. Factors in setting the promotional mix:

Companies must consider several factors in developing their promotion mix: types of product

market, consumer’s readiness to make a purchase and stage in the product life cycle. Also

important is the company’s market rank. Market leaders derive more benefits from advertising

than from sales promotion. Conversely, smaller competitors gain more by using sales promotion

in their promotional mix

Type of product market:

As Amul is more into the consumer market, it spends on sales promotion advertising personal

selling and public relations. For Business market it spends on personal selling, sales promotion,

advertising and public relations Buyer-readiness stage: Promotional tools vary in cost

effectiveness at different stages of buyer readiness. Advertising & publicity play the most

important roles in the awareness building stage. Customer comprehension is primarily affected

by advertising and personal selling. Customer conviction is influenced mostly by personal

selling. Closing the sale in influenced mostly by personal selling and sales promotion.

Reordering is also affected mostly by personal selling and sales promotion and some what by

reminder advertising.

PLC Stage:

74
Promotional tools also vary in cst-effectiveness at different stages of the product life cycles. In

the introduction stage, advertising & publicity have the highest cost effectiveness, followed by

personal selling to gain distribution coverage and sales promotion to induce trial. In the growth

stage, demand has its own momentum through the word of mouth. In the maturity stage, sales

promotion advertising and personal selling all grow more important. In the decline stage sales

promotion continues strong, advertising and publicity are reduced and sales people give the

product only minimal attention.

C: PRICE: A firm must set a price for the first time when it develops a new product, when it

introduces its regular product, when it introduces its regular product into a new distribution

channel or geographical area, the firm must decide where to position its product on quality &

price.

Setting pricing policy

1. Selecting the pricing objective

2. Determining demand

3. Estimating cost

4. Analyzing competitors cost, prices & offers

5. Selecting a pricing method

6. Selecting the final price

75
 Selecting the pricing objective

The company first decides where it wants to position its market offering. The clearer a firm’s

objective the easier it is to set price. A company can pursue and of five major objectives through

pricing: survival, maximum current profit, maximum market share, maximum market skimming

or product-quality leadership.

Amul’s objective is to maximize their market share in the ice cream industry. They

believe that a higher sales volume will lead to lower unit cost and higher long run profit. They

set the lowest price, assuming the market is price-sensitive. The following conditions favors

setting a lower price.

 The market is highly price-sensitive and a low price.

 Production & distribution costs fall with accumulated production experience and

 A low price discourages actual & potential competition.

Determining demand:

Each price will lead to a different level of demand and therefore have a different impact on a

company’s marketing objectives. In the normal case, demand and price are inversely related:

the higher the price, the lower the demand. Ice cream today has become the sweet dish earlier

it was considered as luxurious commodity.

76
 Estimating costs:

Demand sets a ceiling on the price the company can charge for its product. Costs set the floor.

The company wants to charge a price that covers its costs of producing, distributing and selling

the products, including a fair return for its effort and risk.

Amul is offering its retail chain differentiated marketing offers in which it is trying to adopt their

offers and terms to different buyers. Thus a manufacturer will negotiate different terms with

different retail chain. One retailer may want daily delivery to keep the stock lower while another

may accept twice a week delivery in order to get a lower price. The manufacturers cost will

differ with each chain and so will its profits. Recently Amul is offering its retail chain a scheme

called Bulk order purchase in which a retailer gets additional profit margin of 19% on the

purchase of Rs. 1900/- or more.

Analyzing competitors cost, prices & offers:

Within the range of possible prices determined by market demand and company costs, the firm

must take the competitors cost, prices and possible price reactions into account. For e.g. On

Amul Bricks 2 L schemes are offered 1) 25% extra & 2) 1+1 free.

Selecting a pricing method:

Given the three C’s – the customers demand schedule, the cost function and competitor’s prices,

the company is now ready to select a price. There is seven price setting methods: market up

pricing, target return pricing, perceived-value pricing, value pricing, going-rate pricing, auction-

type pricing and group pricing. Amul has adopted value pricing in which they with loyal

customers by charging a fairly low price for a quality offering. In case of Amul it is offering Real
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Milk Real Ice Cream and several other schemes like 1+1 on Bricks (on 750ml Brick) and 25%

extra on 1ltr Brick of Vanilla.

Selecting the final price:

Pricing methods narrow the range from which the company must select its final price. In

selecting that final price the company must consider additional factors, including psychological

pricing, gain & risk-sharing pricing, the influence of other marketing mix elements on price,

company pricing policies and the impact of price on other parties.

In case of Amul the influence of other marketing mix elements set the final price, the final

price must take into account the brand quality and advertising relative to competition.

PEOPLE:

As people provide most of the services, the selection, training and motivating employee can

make a huge difference in customer satisfaction. Ideally employees should exhibit competence, a

caring attitudes, responsiveness, initiative, problem solving ability and goodwill. These days

Amul also has started taking employees having these qualities in them to achieve their

objectives.

PHYISICAL EVIDENCE:
Companies also try to demonstrate their services quality through physical evidence and

presentation. In this training we were given dsds of opportunity to demonstrate & give

presentation of the HADF scheme offered by the Amul.

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 WHAT IS AMUL SEGMENTING & TARGETING

Segmenting:

The strategy point for discussing segmentation is mass-marketing. In mass marketing, the seller

engages in the mass production, mass distribution and mass promotion of one product

for all buyers. The agreement for mass marketing is that it creates the largest potential

market which leads to the lowest costs, which in turn can lead to lower prices or higher

margins. Consumers have more ways to shop: at malls, multiplex, specialty shops,

superstores, departmental stores & local shops also.

There are four levels: Segments, Niches, Local areas & Individuals.

In reference with Amul Ice Cream they are segmenting level segments. A market segment consist

of a group of customers who share a similar set o wants.

The marketer does not create the segments, the marketers task is to identifying the segments and

decide which one(s) to target.

For e.g.: There are people who like to have only candies or milk bars or cones or cups or bricks.

Amul Ice Cream is creating a more five-tuned product or service offering and pricing it

appropriately for the target segment.

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Patterns of Market Segmentation

Here we will consider segment-centered marketing. Marketing segments can be built up in

many ways. One way is to identify preference segments. Suppose ice cream buyers are asked

how much they value sweetness and creaminess as two product attributes. Three different

patterns can emerg

Homogeneous preference:

Shows a market where all the consumers have roughly the same preferences.

1. Diffused preference:

At the other entrance, consumer preferences may be scattered throughout the space,

indicating that consumers vary greatly in their preferences.

2. Clustered preference:

The market might reveal distinct preference clusters. In reference with Amul Ice Cream, the

pattern of market segmentation is Homogeneous preference as they are manufacturing Ice

Cream in best proportion of sweetness & creaminess.

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 Market Targeting

Once the firm has identified its market-segment opportunities, it has to decide how many and

which ones to target. In evaluating different market segments, the firm must look at two factors:

the segments overall attractiveness and the company’s objectives & resources. Does a potential

segment have characteristics that make it generally attractive such as size, growth, profitability,

scale economies and low risk? Does investing in the segment make sense given the firms

objectives, competencies and resources? Some attractive segments may not mesh with the

company’s long-run objectives, or the company may lack one or more necessary competencies to

offer superior value. Having evaluated different segments, the company considers five patterns

of target market selection.

1. Single-segment concentration

2. Selective specialization

3. Product specialization

4. Market specialization

5. Full market coverage

In reference with Amul Ice Cream, it has selected to go for product specialization. The firm is

making certain product that it can be sold to several segments.

Candies Cones Cups Bricks Kulfi

Ice Cream     

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 STRATEGIES

Amul products are doing as well and as not well in the Ghaziabad market though they
have a good marketing strategy followed by strong marketing peoples. In this period of 8
weeks, I scanned the market of Ghaziabad.

I found that the brand awareness of Amul is not to the point or as expected to be in
Ghaziabad.

 Therefore, awareness level of the consumers about Amul milk should be improved
by installing more canopies and hoarding and ensure that every colony has a hoarding
and a retailer selling Amul products. Big banners and billboards should be installed on
main roads.

 In the survey we found that Mother Dairy is leading Amul and the variant preferred
was full cream milk double toned was thought to be drinking purpose only and double
toned milk was generally perceived to be good for patients. So the company should
concentrate on more on full cream milk and increase its market share by aggressive
marketing and increasing no. of outlets.

 Amul must also come up with booths like that of Mother Dairy to reduce costs and
deliver quality and fresh milk to customers.

 Amul must launch promotion schemes for customers as well to increase sales as
well as to be in news. It should also provide good satisfaction to its retailers.

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 Chapter - 7

SWOT ANALYSIS

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 SWOT ANALYSIS

Strength
Amul has well built image of excellence and innovation supported of triumph of Indian
milk product industry.
 It has well logistic and channel network.
 Well trained and educated marketing staff.
 Quality of products is good.
 It ensures that only cow and buffalo milk is used by collecting milk from milk
cooperatives of Gujarat.
 Demand is absolutely optimistic.
 Abundant availability of raw material.

WEAKNESS

 Retailers say they are not satisfied by trade schemes.

 Distributors do not give equal importance to all retailers and confectionary
stores. They neglect some retailers.
 All is not well with distribution in Ghaziabad.
 With so many companies in this industry, competition is becoming tougher day
by day. But then competition has to be faced as a ground reality. The market is
large enough for many to carve out their niche.
 Distribution channel of Amul is as string as Mother dairy have.

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OPPORTUNITIES

“Failure is never final, and success never ending.” Dr. Kurien bears out this statement
perfectly. He entered the industry when there ere only threats. He met failure head-on,
and now he clearly is an example of ‘never ending success’! If dairy entrepreneurs are
looking for opportunities in India, the following areas must be tapped:

 Value Addition: There is a phenomenal scope for innovations in product

development, packaging and presentation. Steps can be taken to introduce milk
with addition of essential vitamins for health conscious people.
 By reducing the price of products Amul can reach new customers.
 Amul milk quality is better than other brands.

THREATS

 Entry of MNC’s is a serious threat to Amul and other Indian companies.

 Incoming of local brands, the unorganized are also a threat to Amul.

The Indian industry of milk and its products, following its deli censing, has been
attracting a large numbers of entrepreneurs. Their success depends on factors such as
efficient yet economical procurement network, hygienic and cost-effective processing
facilities and innovativeness in the market place. All the needs to be done are to innovate,
convert products into commercially exploitable ideas. All the time keep reminding
yourself: Benjamin Franklin discovered electricity, but it was the man who invented the
meter that really made the money!

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 LEARNING FROM TRAINING

As a part of my curriculum, I have to undergo a practical training for two months so that I

could get an exposure to the real market situations. Academics are important but what one

can learn during the work practically he finds it in books.

This training has imparted valuable knowledge and skills, which is an addition to the

balanced development of our personality. Now we can really appreciate the management

skills, which I was taught in classroom only by going out in the field.

 During the training program, I learnt the practical way of conducting a research and

how they are implemented practically i.e. preparation of questionnaire, testing it,

collecting the data and analysis techniques.

 I gained the experience of the set environment of corporate offices and how things

move in corporate offices.

 I acquired the knowledge regarding the features of products, brands, quality, prices,

and specifications and gained a good knowledge of liquid milk industry.

 During the market research I learnt a lot about the interpersonal relationships and

skills i.e. how to approach a respondent, how to talk to the respondents and extract the

right information for him.

 During the interaction with the dealers I learnt how the market is and how the

dealers manage to sell more and earn handsome profits and do the consider before

keeping any brand in there store.

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 I came to know about the expectations from products and the factors, which

influence there buying behaviour.

 It was an opportunity for me to work in the strong organizational structure of

AMUL where there is a system of cooperation among the staff members and prevails a

culture of strong values.

I wish to convey my profound thanks to the people of AMUL to have given me an

opportunity to learn and enhance my knowledge in conducting market research for the

esteemed organization.

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 Chapter - 8
SUGGESTIONS AND
RECOMMENDATIONS

88
 SUGGESTIONS AND RECOMMENDATIONS

Amul as a brand has very “Brand Equity” and is a common name in India’s every
household.Through its vast product range and variety , it has created a strong presence in dairy
segment. Although it is monopoly in butter segment but in chocolate field it needs a lot of
measures to take to ensure the high performance.

1:Separate Butter Division

There are strong competitor like Parag in the market so Amul should also have separate division
for butter.They should watch their competitors properly and adopt strategies accordingly.

2:Small Wholesale Division In Interior Region

A small wholesale division should be established in interior region where sales are low and
regular visit bears high transportation cost.In such area either retailers purchase from other area
or don’t keep butter to sell.

3:Market Survey At Regular Interval By Representatives

Company’s representatives must survey the market themselves at regular interval in order to
know the opportunities in the market and to solve the retailers problems.

4:Provision of Target Even To Salesman

In order to increase the sale,salesman should also be given target to achieve and paid them as
quick as possible in form of cash not cheque.

5:Provision of Fridge At Easy Installment

There are many outlets where sales are high but they don’t have fridge.

6:Develop New Market

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Amul should develop new market for butter like local general store,and confectionary.

7:Customer Care Division

A customer care division should be there to tackle the wholesalers as well as retailers problems.
8:Strong Delivery Service And Other Match
Supply service should be strong enough to meet the requirement of retailers.Whether the order is
in bulk or in less volume it should effort to fulfill the order at right time.

9:Attractive Packaging
In fashion era,packaging is extremely essential because it plays a crucial role to attract the
consumer.However quality is also essential.

10:Regular Visit
It does not matter whether any retailer is purchasing the products at every visit or not, but
company should visit them at regular interval.
11:Quick Damage Clearance And Replacement

12:Strong Product And Price Range

13:Attractive Margin To Retailers

14:Sales Personnel should be instructed to educate the customer about the service.

15:Customer should be out called from time to time and aware him/her about the services
and facilities.

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Chapter - 9
LIMITATIONS

91
 LIMITATION

 Due to unavailability of proper conveyance facility, it was really hard to cover the

market under a scorching sun.

 In many residential blocks shops located in corners of by lanes were difficult to locate.

 The time duration of two months was short for the completion of all activities.

 Being a perishable product no sample could be shown as demanded by many

prospecting clients.

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Chapter - 10
CONCLUSION

93
 CONCLUSION

 The above research it can be concluded that amul is a biggest brand in ice-cream

in 2012-13 due to its marketing strategies in urban sectors.

 It is a privilege to dealers to keep amul ice – cream in their outlets.

 The punch line- the taste of india has created a great impression to the

consumer in rural and urban sector as well.

 It has created a revolution in the production of milk in india.

 Although amul is a renowned name in urban areas yet it is not that much familier

among the rural customers.

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 Chapter - 11
BIBLIOGRAPHY

95
 BIBLIOGRAPHY

NEWSPAPER:

 Economic Times
 Business Standard
 The Financial Express

BOOKS:

 Majumdar,Ramanuj` :Marketing Research”:Sahitya Bhawan Publication, (2008)

 Gupta and Pal ; “Consumer Behaviour”.Pargati Prakashan,(2007)
 Philip Kotler ; “Marketing Management” :Prakash Prakashan,(2009)

WEBSITES:

 www.amul.com
 www.parasdairy.com
 www.motherdairy.com
 www.economictimes.com
 www.sify.com/finance
 www.business-standard.com
 www.rediff.com/money
 www.ask.com
 www.google.com

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 Chapter - 9
QUESTIONNAIRE

97
 QUESTIONNAIRE

Name________________________________

Address______________________________

Age_________________________________

1. Numbers of brands of Amul you have

 3
 6
 9
 10 or more

2.Which Amul milk is most popular among the customers?

 Gold
 Shakti
 Tonned
 Double Tonned

3.Why people prefer that particular milk?

Because of its---
 Components
 Rate
 Taste

4.Which type of Amul customers do you have?

 Permanent
 Temporary

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5.Which other brands do you have?
 Amul
 Mother Dairy
 Other

6. Which of the Amul products do you consume?

 Flavoured milk
 Sweet curd
 Matha
 Milk cake
 Ice cream
 Paneer
7. What is the off take of the product of Amul you use?
 Daily
 Weekly
 Monthly
8. Number of customers buying amul products due to :
 Price
 Brand name
 Taste
 Purity
 Quality
9. Are you satisfied with the price of amul products?
 Yes
 No

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