amul final

SUMMER TRAINING REPORT

On

AMUL LTD.

Submitted in partial fulfillment of the requirements for the award of the degree of Bachelor of Business

Administration (2008-2011)

Under The Guidance Of

Ms Shweta RastogiFaculty, MAIMS

Submitted By: Swati Taneja

Roll No : 1256111708 BBA III SEM 2ND SHIFT

Maharaja Agrasen Institute Of Management Studies

Affiliated To Guru Gobind Singh Indraprastha University, Delhi

PSP Area, Plot No. 1 Sector 22, Rohini Delhi 110086

STUDENT UNDERTAKING

This is to certify that I have completed the project titled “Amul Ltd.” under the guidance of

“Mrs. Shweta Rastogi” in partial fulfillment of the requirement for the award of the degree

of Bachelor of Business Administration at Maharaja Agrasen Institute of Management

Studies, Delhi. This is an original piece of work and I have not submitted it earlier elsewhere.

Swati Taneja

Maharaja Agrasen Institute Of Management StudiesPSP Area, Plot No.1, Sector 22, Rohini, Delhi-110086

i

CERTIFICATE

This is to certify that the project titled “AMUL Ltd” is an academic work done by “Swati

Taneja” submitted in the partial fulfillment of the requirement for the award of the degree of

Bachelor Of Business Administration from Maharaja Agrasen Institute Of Management

Studies, Delhi, under my guidance and direction. To the best of my knowledge and belief the

data and information presented by her in the project has not been submitted earlier.

Name of the Faculty Guide:

Ms. Shweta Rastogi

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ACKNOWLEDGEMENT

I express my heartfelt gratitude and privilege to acknowledge our esteemed Director Mr.

N.K.Kakkar and my guide Mrs. Shweta Rastogi without whom this project could have not

been completed . I also express my deepest gratitude towards the teaching staff and the

fellow member who helped me to finish the task successfully.

Swati Taneja

iii

EXECUTIVE SUMMARY

In India dairy is considered as one of the main instruments for social and economic

development. Small farmers, possessing about 70% of the milk cattle, dominate milk

production. Their income was undependable, and too small, so dairy was not considered a

viable business option. But the Operation Flood changed the scenario, to the extent of

Revolution. Amul has become a symbol of farmers’ liberation and self-reliance.The project

aims to study the evolution of Indian dairy industry and that of Amul. The primary focus will

be on the marketing strategy and competitor analysis, over the years, which has made Amul

the most recalled brand.As it moves into newer products, and, Amul is perusing a different

advertising strategy. The entry of MNCs, evolution in the customer profiles, and a changing

Market calls for a massive shift in the strategy. In the project we examine how the company

is geared up to meet the challenge.

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TABLE OF CONTENT

PARTICULARS PAGE NO Student undertaking i Certificate ii Acknowledgement iii Executive summary iv

Chapter-1 Introduction (1-3) 1.1 The birth of Amul 1 1.2 Objective of study 3

Chapter-2 Company profile (4-20) 2.1 About the company 4 2.2 Amul success story 7 2.3 Operation flood 8 2.4 Impact of “Amul model” 9 2.5 Achievement of Amul movement 11 2.6 list of Amul products 13 2.7 Product description 18 2.8 Amul- the logistic and distribution 19 2.9 GCMMF- mission statement 19 2.10 Achievement of GCMMF 20

Chapter-3 Research methodology (21-22) 3.1 Research methodology of the study 21

Chapter-4 Product and services (23-29) 4.1 Core marketing concepts 23 4.2 The 4 P’s of marketing 29

Chapter-5 Swot Analysis (40-42) 5.1 Swot Analysis of Dairy Industry 40 5.2 Conclusion 42

Bibliography vi

v

vi

1.1 The Birth of Amul and development of India’s Dairy

Cooperative Movement:

The birth of Amul at Anand provided the impetus to the cooperative dairy movement in the

country. The Kaira District Cooperative Milk Producers’ Union Limited was registered on

December 14, 1946 as a response to exploitation of marginal milk producers by traders or

agents of existing dairies in the small town named Anand (in Kaira District of Gujarat). Milk

Producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in

Anand. Often milk went sour as producers had to physically carry the milk in individual

containers, especially in the summer season. These agents arbitrarily decided the prices

depending on the production and the season. Milk is a commodity that has to be collected

twice a day from each cow/buffalo. In winter, the producer was either left with surplus /

unsold milk or had to sell it at very low prices. Moreover, the government at that time had

given monopoly rights to Polson Dairy (around that time Polson was the most well known

butter brand in the country) to collect milk from Anand and supply it to Bombay city in turn.

India ranked nowhere amongst milk producing countries in the world in 1946.

Angered by the unfair and manipulative trade practices, the farmers of Kaira District

approached Sardar Vallabhbhai Patel (who later became the first Deputy Prime Minister and

Home Minister of free India) under the leadership of the local farmer leader Tribhuvandas

Patel. Sardar Patel advised the farmers to form a Cooperative and supply milk directly to the

Bombay Milk Scheme instead of selling it to Polson (who did the same but gave low prices to

the producers). He sent Morarji Desai (who later became Prime Minister of India) to organize

the farmers. In 1946, the farmers of the area went on a milk strike refusing to be further

oppressed. Thus the Kaira District Cooperative was established to collect and process milk in

the District of Kaira in 1946. Milk collection was also decentralized, as most producers were

marginal farmers who were in a position to deliver 1-2 litres of milk per day. Village level

cooperatives were established to organize the marginal milk producers in each of these

villages.

The Cooperative was further developed & managed by Dr. V Kurien along-with Shri H M

Dalaya. The first modern dairy of the Kaira Union was established at Anand (which

popularly came to be known as AMUL dairy after its brand name). Indigenous R&D and

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technology development at the Cooperative had led to the successful production of skimmed

milk powder from buffalo milk – the first time on a commercial scale anywhere in the world.

The foundations of a modern dairy industry in India were thus laid since India had one of the

largest buffalo populations in the world. The birth of Amul at Anand provided the impetus to

the cooperative dairy movement in the country. The Cooperative was further developed &

managed by Dr. V Kurien along-with Shri H M Dalaya. The first modern dairy of the Kaira

Union was established at Anand (which popularly came to be known as AMUL dairy after its

brand name). Indigenous R&D and technology development at the Cooperative had led to the

successful production of skimmed milk powder from buffalo milk – the first time on a

commercial scale anywhere in the world. The foundations of a modern dairy industry in India

were thus laid since India had one of the largest buffalo populations in the world.

The success of the dairy co-operative movement spread rapidly in Gujarat. Within a short

span five other district unions – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were

organized. In order to combine forces and expand the market while saving on advertising and

avoid a situation where milk cooperatives would compete against each other it was decided to

set up an apex marketing body of dairy cooperative unions in Gujarat. Thus, in 1973, the

Gujarat Co-operative Milk Marketing Federation was established. The Kaira District Co-

operative Milk Producers’ Union Ltd. which had established the brand name AMUL in 1955

decided to hand over the brand name to GCMMF (AMUL). With the creation of GCMMF

(AMUL), we managed to eliminate competition between Gujarat’s cooperatives while

competing with the private sector as a combined stronger force. GCMMF (AMUL) has

ensured remunerative returns to the farmers while providing consumers with quality products

under the brand name AMUL.

This was possible due to the dedicated and committed leadership of the founder Chairman of

AMUL, Tribhuvandas Patel and the vision and professionalism of the father of the White

Revolution, Dr. Verghese Kurien who worked as a professional manager at AMUL.

Dr. Verghese Kurien, the World Food Prize and the Magsaysay Award winner, is the

architect of India’s White Revolution, which helped India emerge as the largest milk

producer in the world. His professional life has been dedicated to empowering Indian farmers

through co-operatives. Dr. Kurien’s vision has helped to lay the foundation of democratic

enterprises at the grass roots and shown the way to ensure economic justice is with people’s

2

participation. He believes that by placing technology and professional management in the

hands of the farmers, the standard of living of millions of our poor people can be improved.

Impressed with the development of dairy cooperatives in Kaira District & its success, Shri

Lal Bahadur Shastri, the then Prime Minister of India during his visit to Anand in 1964, asked

Dr. V Kurien to replicate the Anand type dairy cooperatives all over India. Thus, the National

Dairy Developed Board was formed and Operation Flood Programme was launched for

replication of the Amul Model all over India.

Operation Flood, the world’s largest dairy development programme, is based on the rich

experience gained from the ‘Amul Model’ dairy cooperatives. This innovative three-tier

organization structure combines the productive genius of farmers with professional

management and modern technology. The facilities at all levels are entirely farmer-owned.

The cooperatives are able to build markets, supply inputs and create value-added processing.

Prompt and remunerative payment for produce of good quality has ensured the best incentive

for the farmer to increase production and quality. Thus, Amul Model cooperatives seem to be

the most appropriate organizational force for promoting agricultural development using

modern technologies and professional management and thereby generating employment for

the rural masses and eradicating poverty in these undeveloped areas. India has already

demonstrated the superiority of this approach.

1.2 Objectives of the Study

To know the relationship of sales with the advertisement.

To know in which segments AMUL products are most likely preferred.

To know the preferences of AMUL products with comparison to other competitive

brands.

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2.1 ABOUT THE COMPANY

AMUL THE ORGANIZATION

GUJARAT COOPERATIVE MILK MARKETING FEDERATION

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India’s largest food products

marketing organization 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 consumer

by providing quality products which are good value for money.

The Gujarat Co-operative Milk Marketing Federation

The Gujarat Co-operative Milk Marketing Federation, Asia’s largest producer of dairy

products, which markets Amul brand dairy products is expected to show a growth in sales of

17 per cent to about Rs. 2,220 crores in 1998-99 from Rs. 1,884 crores in 1997-98 and 1,554

crores in 1996-97. the federation with 19.5 lakh producer members is taking up the

manufacture of Swiss cheese both for the domestic market as well as exports.

In 1997-98, its average sales of liquid milk were 39-65 lakh kg per day against 38.1 lakh kg

in 1996-97. the federation, marketing about 26 different dairy products, sold about 10.5 crore

litres of milk in pouches during April-September 1998. its sales of buffer have gone up form

10,000 tonnes in 1996 to 25,000 tonnes in 1997.

The federation has plans to increase its turnover 5-fold to Rs. 10,000 crores by 2005 by

increasingly milk products manufacturing capacity. Until recently, the federation has been

exporting its products to West Asia. In 1997-98, its exports touched rs. 26 crores. In 1998, the

federation for the firs time exported butter, cheese and gulabjamuns to the US. In 1998-99,

the federation exports to the US are pro

jected at Rs., 10 crores.

4

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

Cattle feed manufacturing Capacity: 1450 Mts per day

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 21185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

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AMUL

AMUL means “priceless” in Sanskrit. The brand name “Amul” form the Sanskrit

“Amoolya,” was suggested by a quality control expert in Anand. Variants, all meaning

“priceless”, are found in several Indian language. Amul products have been in use in million

of homes since e1946. Amul Butter, Amul milk Powder, Amul Ghee, Amuspray, 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. 18.8 billion in 1997-

98). Today Amul is a symbol of many things. Of high quality products sold at reasonable

prices. Of the genesis of vast co-operative network. Of the triumph of indigenous technology.

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 diary

development.

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2.2 AMUL’S SUCCESS STORY:

The decision to constitute Amul’s first co-operative was taken on 4 th January, 1946 at a

meeting called by Morarjee Desai under the advice of Sardar Vallabbhai Patel. Sadar Patel’s

vision was to empower the farmers by allowing them to control the production, procurement,

and marketing of the milk. The task was entrusted to qualified professionals, and thus the

middlemen were to be eliminated.

This decision marked a new era in Indian dairy industry. The milk producers’ co-operatives

in villages formed a federation at the district level, which will handle the milk sale from

Kaira to the Bombay Milk Scheme. Initially, the colonial Government refused to recognize

the milk society, but a fifteen-day strike by the milk producers made it relent. The Kaira

District Milk Producers’ Union Limited was formed and registered on the 14 th December

1946.

The original Anand model envisioned co-operatives at the village level and processing unit at

the district level, called an “union”. Similar models were replicated elsewhere, and in 1973,

the Gujarat Co-operative Milk Marketing Federation (GCMMF) was formed, to market the

products of the small unions more effectively. Since then, GCMMF is the sole marketer of

the Amul brand.

Amul’s success is due to its ability to convert the value it offers to customers to profits.

The expectations of the customer is met by a suitable combination of Relative Price, and

Quality, resulting in Customer Satisfaction. Hence the Loyalty increases and Repurchase

and Referral occur, then the company can extend the brand to other products, resulting in

profits.

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2.3 OPERATION FLOOD:

Operation Flood is responsible for the transformation from the

situation of net imports to a state of surplus.

Dr Verghese Kurien, a technologist, began working with the farmers in 1949, after returning

to India from Michigan State University, where he earned a Master of Science of Mechanical

Engineering (with distinction). He was posted at the KairaDistrict Milk Producers Union, a

newly formed cooperative organization established to help market milk directly to the

consumers. He formed a co-operative, which would buy milk from the producer. Thus it

served to organize them and enable a fair price.

The result was dramatic: milk production and consumption jumped from 132 gm per day to

220 gm per day, side by side empowering the farmers, by increasing their per capita income.

The model given by Dr Kurien was so successful that it caught the attention of a large

number of countries in Africa, Asia, and Latin America, who wanted to replicate the model in

the poor section their country. The work won Dr Kurien numerous awards like the Padma

Bhushan, the Ramon Magsaysay Prize for Community Leadership, the Carnegie-Wateler

World Peace Prize, and the World Food Prize.

8

2.4 IMPACT OF “AMUL MODEL”

The effects of Operation Flood Programme are more appraised by the World Bank in its

recent evaluation report. It has been proved that an investment of Rs. 20 billion over 20 years

under Operation Flood Programme in 70s & 80s has contributed in increase of India’s milk

production by 40 Million Metric Tonne (MMT) i.e. from about 20 MMT in pre- Operation

Flood period to more than 60 MMT at the end of Operation flood Programme. Thus, an

incremental return of Rs. 400 billion annually have been generated by an investment of Rs.

20 billion over a period of 20 years. This has been the most beneficial project funded by the

World Bank anywhere in the World. One can continue to see the effect of these efforts as

India’s milk production continues to increase and now stands at 90 MMT. Despite this four-

fold increase in milk production, there has not been drop in the prices of milk during the

period and has continued to grow.

Due to this movement, the country’s milk production tripled between the years 1971 to 1996.

Similarly, the per capita milk consumption doubled from 111 gms per day in 1973 to 222

gms per day in 2000. Thus, these cooperatives have not just been instrumental in economic

development of the rural society of India but it also has provided vital ingredient for

improving health & nutritional requirement of the Indian society. Very few industries of India

have such parallels of development encompassing such a large population.

These dairy cooperatives have been responsible in uplifting the social & economic status of

the women folk in particular as women are basically involved in dairying while the men are

busy with their agriculture. This has also provided a definite source of income to the women

leading to their economic emancipation.

The three-tier ‘Amul Model’ has been instrumental in bringing about the White Revolution in

the country.

9

“As per the assessment report of the World Bank on the Impact of Dairy Development in

India, the ‘Anand Pattern’ has demonstrated the following benefits:

• The role of dairying in poverty reduction

• The fact that rural development involves more than agricultural production

• The value of national ‘ownership’ in development

• The beneficial effects of higher incomes in relieving the worst aspects of poverty

• The capacity of dairying to create jobs

• The capacity of dairying to benefit the poor at low cost

• The importance of commercial approach to development

• The capacity of single-commodity projects to have multi-dimensional impacts

• The importance of getting government out of commercial enterprises

• The importance of market failure in agriculture

• The power & problems of participatory organisations

• The importance of policy

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2.5Achievements of ‘Amul Movement

1. The phenomenal growth of milk production in India – from 20 million MT to 100 million

MT in a span of just 40 years - has been made possible only because of the dairy cooperative

movement. This has propelled India to emerge as the largest milk producing country in the

World today.

2. The dairy cooperative movement has also encouraged Indian dairy farmers to keep more

animals, which has resulted in the 500 million cattle & buffalo population in the country - the

largest in the World.

3. The dairy cooperative movement has garnered a large base of milk producers, with their

membership today boasting of more than 13 million member families.

4. The dairy cooperative movement has spread across the length and breadth of the country,

covering more than 125,000 villages of 180 Districts in 22 States.

5. The dairy cooperatives have been able to maintain democratic structure at least at the

grass-root level with the management committee of the village level unit elected from among

the members in majority of the villages.

6. The dairy cooperatives have also been instrumental in bridging the social divide of caste,

creed, race, religion & language at the villages, by offering open and voluntary membership.

7. The dairy cooperatives have been successfully propagating the concepts of scientific

animal husbandry & efficiency of operations, which has resulted in low cost of production &

processing of milk.

8. The movement has been successful because of a well-developed procurement system &

supportive federal structures at District & State levels.

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9. Dairy Cooperatives have always been proactive in building large processing capacities,

which has further propelled growth of milk production.

10. The dairy cooperatives are among those few institutions in India, which still cherish a

strong Cooperative identity, values and purpose. They still boast of idealism & good will of

members and employees.

11. The dairy cooperatives have removed the poor farmers of India from the shackles of

agents & middlemen and provided an assured market for their produce. As these are the

institutions run by farmers themselves, it has also resulted in fair returns to the members for

their produce

12. Dairy cooperatives have been able to create a market perception of honesty &

transparency with their clean management 

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2.6LIST OF AMUL PRODUCTS

Amul Butter Utterly butterly delicious

Amul SPRAY Infact milk food. Still mothers milk is bet for your baby

AMUL INSTANT FULL CRAM MILK POWDER

A dairy at your home.

SKIMMED MILK POWDER

Especially useful diet preparation or for use by people on low calorie and high protein

diet.

AMULYA DAIRY WHITENER

The richest, purest dairy whitener.

CHEESE AMUL PASTEURIZE DPROCESSED CHEDDAR

100% vegetarian cheese made from microbial rennet.

AMUL CHEESE SPREAD

Tasty cheese spread in three great flavors.

AMUL PURE GHEE

Made from fresh cream has tupical rich aroma and granular. An ethnic product made

by

dairies with decades of experience.

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NUTRAMUL

Malted milk food made from malt extract has the highest protein content among all

the brown beverage powder sold in India.

AMUL MOZZARELLA CHEESE

Pizza cheese makes great testing pizzas.

AMUL EMMENTA CHEESE

The great Swiss cheese from Amul

AMUL FRESH MILK

The most hygiene milk available in the market pasteurized packet for convenience.

AMUL PANEER

Ready to cook paneer to make your favorite recipes.

DHARA EDIBLE OIL

Largest selling brand of edible oil in India.

JAL DHARA PURE DRINKING WATER

The purest drinking water.

AMUL CHEESE POWDER

The real cream on your soup.

AMUL UHT MILK

Longlife fresh milk with extra vitamins & no preservatives added.

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AMUL FLAVOURED CHEESE CUBES

Great for cheese sandwiches cheese Pakoras cheese Burgers and a host of delicious

cheesy snacks.

AMUL PIZZA

The hottest new addition

Breadspreads

Amul Butter ---

Amul Lite Low Fat Breadspread

Amul Cooking Butter

Delicious Margarine

Milk Powders

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Sweetened Condensed Milk

Amul Mithaimate

 Sweets

Amul Shrikhand & Amrakhand

Amul Mithaee Khoya Gulabjamaun

Amul Basundi

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Fresh Milk

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardised Milk 4.5% fat

Amul Slim & Trim Double Toned Milk 1.5% fat

Amul Saathi Skimmed Milk 0% fat

Amul Cow Milk

Curd Products

Yogi Sweetened Flavoured Dahi (Dessert)

Amul Masti Dahi (fresh curd)

Amul Lite Dahi

Amul Prolife probiotic Dahi

Amul Masti Spiced Butter Milk

Amul Lassee

Amul Icecreams

Vanilla Royale

Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted

Almond)

Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry,

Black Currant, Santra Mantra, Fresh Pineapple)

Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)

Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch,

Megabite, Cassatta)

Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)

Amul SUGAR FREE Frozen Foods (Milk Based Sweet)

Amul ProLife Probiotic Ice cream

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 Chocolate & Confectionery

Amul Fruit & Nut Chocolate

Amul Bindazz

Amul Rejoice

Amul kesar

Brown Beverage

Nutramul Malted Milk Food

Milk Drink

Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose,

Chocolate, Butterscotch)

Amul Kool Cafe

Amul Kool Koko

Health Beverage

Amul Shakti White Milk Food

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2.7 PRODUCT DESCRIPTION

Ultra High Temperature (U.H.T) Milk is a kind of milk which comes in tetra pack. It is

bacteria free milk. It is firstly boiled on 1310C. which kills bacterial and keep it fresh. After

cooling it is packed in tetra Pack. It is fresh and hygenic milk. There is no preservatives or

chemical are added only extra vitamins and minerals are added in this pure milk. It has 120

days shelf life. There is no need to keep it in freeze or boil it till 120 days. (in packed

condition). It has a very good market in abroad. In India it is relatively new. People are less

aware about this product. It is little more costlier than fresh poly pack milk. It has good sale

in A Class market. There is 3-4 branded U.H.T. milk available in market i.e. Amul, NESTLE,

VIJAYA and GAGAN. Gagan is not in same category. It is low price and it comes in poly

pack. Amul has three varieties of U.H.T. milk i.e. SLIMN TRIM with 05% fat, Taaza with

3% fat and Gold with 4.5% fat. NESTLE has two verities i.e. SLIM NTRIM with 0.5%

fat, Nestle Milk with 3% fat. Vijaya has also two varieties i.e. Low Fat with 1.5% fat and

standard with 4.5% fat.

FEATURES OF U.H.T MILK

Treated at Ultra High Temperature and aseptically packed.

Sterile bacteria free and can be consumed directly.

Need no refrigeration.

Stay fresh for 4 months.

Gives Excellent and Firm Cards/yoghurt

Hygienically packed

Natural taste with high nutritive value

Packaging materials absolutely impermeable and non-returnable.

Homogenized.

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2.8 AMUL- The Logistics and Distribution

The success of Amul can be contributed to the pricing to a large extent but none the less there

are other factors, which have contributed to its meteoric rise. Amul has over a period of time

built a massive distribution network, which has helped them penetrate the interiors of rural

India.

Amul, with its 40 product categories, 300 stock keeping units, 100000 retailers, 18000 strong

cold chain and 500000 non refrigerated retail outlets, has made it really difficult for a new

entrant to get a foothold in the market.

The cold retail chains offer a major competitive advantage. Amul outsold HLL in the ice

cream market solely on the basis that it controlled a huge number of milk and butter outlets

all over the country.

In order to further strengthen their distribution backbone, Amul has launched

“Hamara Apna” Deep Freezer scheme. In this scheme retailers would be provided with

cooling machines only for Rs. 20000. Amul has also persuaded Carrier Aircon and Blue Star

to provide warranty for three years instead of the usual two. This has gone a long way in

generating goodwill among Amul’s partners.

2.9 GCMMF: MISSION STATEMENT

We are Gujarat Co-operative Milk Marketing Federation Endeavor to satisfy the taste &

Nutritional Requirement of the Customers of the world through Excellence in Marketing by

our Committed team.

The Corporation networking we are committed to offering quality products that

provides best value for money.

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2.10ACHEIVEMANTS OF GCMMF

ü 2.8 million milk producer member families ü 13,759 village societies ü 13 District Unions ü

8.5 million litres of milk procured per day ü Rs. 150 million disbursed in cash daily ü

GCMMF is the largest cooperative business of small producers with an annual turnover of

Rs. 53 billion ü The Govt. of India has honoured us with the “Best of all categories Rajiv

Gandhi National Quality Award”. ü Largest milk handling capacity in Asia ü Largest Cold

Chain Network ü 48 Sales offices, 3000 Wholesale Distributors, 5 lakh retaikl outlets ü

Export to 37 countries worth Rs. 150 crores ü Winner of APEDA award for nine consecutive

years

Amul Brand Building:

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly

50 sales offices spread all over the country, more than 3,000 wholesale dealers and more than

5,00,000 retailers.

AMUL is also the largest exporter of dairy products in the country. AMUL is available today

in over 40 countries of the world. We are exporting a wide variety of products which include

Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter

(Ghee) and Indigenous Sweets. The major markets are USA, West Indies, and countries in

Africa, the Gulf Region, and our SAARC neighbours, Singapore, The Philippines, Thailand,

Japan and China.

In September 2007, Amul emerged as the leading Indian brand according to a survey by

Synovate to find out Asia's top 1000 Brands.

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3.1 Research methodology of the study

3.1.1 Research:-

Research is define as diligent and thorough inquiry and investigation into a subject. This

includes using ALL appropriate print and electronic sources, asking the reference librarians

for help, and making use of bibliographies given by other authors

3.1.2 Research methodology:-

Research methodology is define as the way in which the data are collected for the research

project. Since there are vast sources through which the data can be collected thus this

methodology means getting the best and appropriate data for the existing project.

3.1.3 Data Collection

Data can be collected through various sources available in two different forms, primary and

secondary data.

Primary data

It is define as information collected directly from the source through observation,

conversation, and/or participation. The degree of reliability, validity, and precision

required depends on how you intend to use the information. Visitor response to

surveys is one example of primary data.

Secondary data

It is define as information collected by others such as government agencies and/or

nonprofits that pertains to your area of interest. The degree of reliability, validity, and

precision in secondary data depends on how it was collected and interpreted. Census

data is one example of secondary data.

In this project we have used secondary data sources such as

Web sites

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Company annual reports

3.1.3 Limitation

The limitations of the research were as follows:-

Lack of proper experience on the part of the researcher in conducting such studies in

the past.

Time frame required was not enough to survey more number of outlets.

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4.1 CORE MARKETING CONCEPTS Marketing Definition as said by Philip Kotler: Marketing is a societal process by which

individuals and group obtain what they need and want through creating offering and freely

encharge products and services of value with others.

The cooperative Gujarat coopertive Milk Marketing federation better know as Amul gives

that former the best price for its milk and the consumer the lowest rice for the product he

buys.

Needs, wants & Demands

Needs describes basic human requirement the basic requirements that Amul is addressing is

the need for milk and milk products.

Wants: Need becomes want when they are directed to specific objects that might satisfy the

need.

In case of Amul the wants any be mentioned as the milk products like Mish Dahi, Cheese,

Butter, Ice-creams, Smeetened condeved milk and many more.

Demands: Demands and wants of specific products baced of ability to pray.

Where Amul products are concerned consumers have the ability willingness to pray because.

Product & Offering

A product is my offering that can satisfy the need or want major types of basic offerings and

goods, services, experiences, events, persons place, properties, orgnaisation information and

idea.

A brand is an offering from as know source and Amul offering market products like dairy

products & edible oils. They also provide services of institutions and schools and college

canteens.

23

Value and satisfaction

Value =

Amul as a product offers functional benefit as it has super value products and milk is used by

maximum numbers of house hold.

The marketer can increase the value of customer offering by reducing the cost.

Marketing Channel and Distribution

In August Nestle discovered to its disadvantage when it launched its eponymous brand of

butter in Delhi and Mumbai market the refrigerator for key retailers have not much of it in

storage. According go general manager (marketing) GCMMF Mr. R.S. Sodhi, they know

where Nestle will go and flooded the market with Amul butter and given GCMMF’s wide

range of products no retailers could say no.

It has 40 products categories

300 stock keeping units

100000 retailers with refrigerator

18,000 strong cold chain

50,000 non refrigerated retail outlets

it is now flexing its distribution muscle to make life tough for new entrant or to push its new

offerings. It is building more intensive distribution network as it is in maturity stage.

24

Competition

It has competitors in one products category or another. For example transnational marketing

gients like Pizza Huts, dominos, Cadburys, Nestle, Britannia and Hindustan Lever Ltd.

(HLL)

HLL is trying to put on over Amul by building one network of franchised ice-creams parlours

and kiosks.

Amul’s condence milk brand “Mithai Mate” has eroded market leader, milk maids

dominance. Today milk Mithai mate has 30% share of the market.

GCMMF milk based confectionary brand max is rupee one segment in this category of long

life milk targeting high and consumers . Amul competes with Nestle primarily on the plank

of price competitiveness.

Amul has launched milk Lairs to gun for a major share in chocolate’s and confectionary

markets.

Competitor Strategy Analysis

Currently only 15 % of GCMMF’s revenue come from value added offerings which include

long life milk, ice cream, pizza etc, Amul has plans to increase this to 35 % within the next 5

years. The ambitious growth has made it imperative to expand its product line, this has

brought Amul in direct competition with the marketing majors in

India.

The strategy of Amul has been highly aggressive. Contrary to popular perception that Amul

competed only on the basis of competitive price, it managed to sabotage the market launch of

Nestle’s Butter using its distribution network.

Some of the companies that Amul is directly competing against in various segments are

described in the following paragraphs.

25

HLL

Conflict Areas: Ice Creams, Confectionary

HLL has increased the number of offerings at lower prices, as a countering measure it has

launched kiosks and exclusive Ice Cream parlours across the length and breadth of the

country. HLL has a pronounced presence in Ice Creams and confectionary in which Amul has

shown a keen interest in recent time so as to sustain its planned growth.

The product profile of HLL in ice creams range from Max, Cornetto, and host of other

products which

cater to different segments of the Indian society. Let us take a look at the products in HLL’s

profile in some detail.

Kwality Wall’s Max

It has been advertised as the masti ice cream and has been targeted at young school going

children. Max was launched in the year 1999. Max ice cream has been positioned as an ice

cream that has been fortified with extra vitamins, so as to differentiate itself from other ice

cream brands.

Max has the tagline masti kar Befikar and encourages all kids to have a good time. Max has

recently extended its presence in confectionary (candies) with brands such as Max Masti,

Max Magik and Choco Max.

Kwality Walls Cornetto

Cornetto was launched in the year 1995-96, it has been positioned as an ice cream for

romance and special moments it has been targeted towards young adults. It is advertised with

the tagline bite bite mein pyar.

Feast

It was launched in 1995-96, the Feast range of ice creams have been positioned as a ice

cream of youth with attitude. Feast has expanded its chocolate only portfolio to include

refreshment products tune with the variety need of todays youth. Feast has managed to

continuously connect with today’s youth, and it remains the Ice cream with the ….. Big F.

26

Britannia

Conflict Areas: Milk, Butter, Cheese

Britannia has launched fresh milk in markets where GCMMF lacks presence. It has restricted

its focus to 30 cities for butter and cheese. It does not come into the league of so-called big

players because of its restricted focus, none the less it is coming across as an emerging player

in the same segment as that of Amul. Amul is not taking this lightlyand is all feared up for the

competition.

Nestle

Conflict Areas: Entire Dairy Spectrum

Nestle is directly in competition with GCMMF across the entire dairy line. Nestle recently

launched butter and curd in major markets across India. The competition is also brewing in

the infant milk and mithai segment as there are launches in these two segments by GCMMF,

against Nestlé’s Cerelac and Milkmaid. Nestle has a major presence in majority of the

products which are there in Amul’s product line. This has brought both the giants in direct

competition for larger pie of the market.

Nestle has a very strong presence in baby foods with its products such as Farex which is not

that well known now but 10-15 years ago it was a standard product in many middle and upper

middle class households. Nestle has introduced Cerelac recently in the baby food segment to

counter the threat from Amul.

Few of the products that have been launched by Nestle date back to more than a century, the

Milkmaid brand of sweetened condensed milk was one of the first products to be launched by

Nestle way back in 1967. With this kind of history and technical knowhow the going for

Amul was never going to be easy. Nestle has launched its version of powdered milk, Nespray

which it markets under full cream milk powder. Apart from the traditional dairy products

Nestle is also in direct competition with Amul in the chocolate and confectionary segment.

The history of chocolate dates back to the ancient civilization of Mayans and Aztecs. But the

modern day chocolate as we know of can be credited to Daniel Peter who in 1875, figured out

how to combine milk and cocoa powder in proportion to produce chocolate.

27

For three decades the company started by Daniel Peter relied on Nestle for its need of milk

and marketing its brand of chocolate. In 1929 Nestle acquired Peter, Cailler, Kohler With

nearly 100 years of experience in making chocolates Nestle has a very great presence in this

segment, which Amul is trying to get a share of, which brings them directly in contention for

the same market.

Cadbury’s

Conflict Areas: Confectionary

Cadbury has relaunched three brands, 5 Star, Gems and Bournvita. It is trying to move

beyond its dependence on chocolates and move into sugar confectionary as the next growth

opportunity.

28

4.2 THE FOUR P’S OF MARKETING

4.2.1 Product

The product Amul was rightly launched as it has monopoly in super value segment.

Product levels – Almost all the products of Amul for between either expected or augmented

product level.

Product classification – Amul comes under the category of Consumer Goods.

Convenience goods - These are goods that customer usually purchases frequently,

immediately and with the minimum of effort.

Some products of Amul like Milk, Butter, Oil come under the category of staples.

Amul also has impulse goods like chocolate and ice-creams which are purchased without any

planning or search.

4.2.2THE PRODUCT MIX

Product mix is defined as all of the products or product lines offered by a firm. Some

companies have a wide product mix geared toward a diverse consumer group. For example,

Procter & Gamble has a product mix that includes detergents, toothpaste, Procter bar soap,

deodorants, disposable diapers, coffee, household paper goods, and food products. Some

companies have a narrow product mix geared toward a particular market segment, such as the

Williams Sonoma catalog that sells gourmet cooking accessories. Offering a wide product

mix provides an opportunity to increase the amount of goods sold to each customer but has

costs associated with the variety of resources (distribution, storage, marketing, etc.) required

to support it. Similarly Amul is also dealing in vats variety of dairy products in the market.

Thus the decision taken to the relative amounts of each type of product or service that, given

demand and resource constraints, will maximize total profits. For example, if the firm can sell

as much as it can produce and has a single resource constraint, the decision rule is to

maximize the contribution margin per unit of the constrained resource. However, given

multiple constraints, the decision is more difficult and more sophisticated techniques must be

used, such as linear programming for example.

29

Dairy Products Edible oils Institution

Consumer Packs:

Amul Butter

Amul Spray Instant Milk Flood

Amul spray full cream milk powder

Amulya dairy whitener

Amul lite

Amul Pure Ghee

Sagar Pure Ghee

Amul Processed Cheese

Amul Enimenal Cheese (New)

Amul Mozzarella Chese

Amul Chocolates

Nutramul Mauted Milk Food

Amul Mithaee (Gulabjamun)

Amul Shrikhand

Amul Gold

Amul Shakti (Standarised Milk)

Amul Tazza

Amul Longlife Milk

Nutramul Brown Beverages

Amul Ice-Cream

(vanilla, strawberry, pineapple, orrang,e

rose mango, chocolate, honeydewmelon,

tutti frutti, lichi, kesanpista, Butter

scotch, Kaju, choco Chips, Raj bhog,

cashew break)

Bulk Packs

Amul skimmed milk powder

Amul full cream milk powder

Dhara Double Filtered

Mustard Oil.

Dhara Double filtered

groundnut oil

Dhara refined mustard

oil

Dhara health refined

sunpower oil

Dhara kalah ghani oil

Dhara Refined

Soyabean oil

Dhara Refined

vegetable oil

Dhara refined

sunflower oil

Dhara cottonseed oil

Lokdhara blended oil

Railways:

School & Colege

canteens

Airlines & various

others

30

Product width = 3

Product Length = 50

Amul ice-creams depth = 16

Amul bulk packs depth = 2

The product mix is justified because Amul is in the maturity stage so its needs the

diversify its brands and items.

4.2.3 Pricing objective

It faces major competition in ice cream category from

HLL with both eyeing the interactive 75 to 100 crore units a year.

Amul is in the maturity stage. It tries to seek profits and at the same time achieve low cost per

customer.

Pricing Strategy

All products of Amul have standard pricing strategy.

Price

Pro

du

ct Q

ual

ity

High Medium Low

High 1. Premium strategy 2. High-value

strategy

3. Super-value

strategy

Medium 4. Overcharging

strategy

5. Medium-value

strategy

6. Good-value

strategy

Low 7. Rig-off strategy 8. False economy

strategy

9. Economy

strategy

Amul follows the super value strategy, which aims at providing superior quality product at

low cost per customer.

31

PRICE LIST OF AMUL

Sr.No Products

Pack size

Max.

retail

prices

1 Amul butter 100g pack Rs.20.00

2 Amul butter 500g pack Rs.97.00

3 Delicious table margarine 100g pack Rs.13.00

4 Delicious table margarine 500g pack Rs.60.00

5 Amul light low fat bread spread 200g tub Rs.32.00

6 Amul cheese 400g tin Rs.105.00

7 Amul cheese slices 200g pack Rs.70.00

8 Amul cheese chiplets 200g pack Rs.60.00

9 Amul cheese 1 kg block Rs.203.00

10 Amul cheese spread 200g pack Rs.47.00

11 Amul pizza cheese 200g pack Rs.50.00

12 Amul emmental cheese 400g pack Rs.150.00

13 Amul gouda cheese 250 g Rs.110.00

14 Amul gouda cheese 1 kg Rs.420.00

15 Amul malai paneer 200g dice pack Rs.34.00

16 Amul/sagar pure ghee 1 ltr tin Rs.230..0

17 Amul/sagar pure ghee 500ml pouch Rs.110.00

18 Amul/sagar pure ghee 2ltr tin Rs.435.00

19 Amul/sagar pure ghee 5ltr tin Rs.1075.00

20 Amul pure ghee 1ltr reffil Rs.225.00

32

21 Amul/sagar pure ghee 1ltr pouch Rs.212.00

22 Amul shrikhand 500g cup

elaichi

Rs.50.00

23 Amul shrikhand 500g cup

mango

Rs.53.00

24 Amul shrikhand 500g cup kesar Rs.63.00

25 Amul shrikhand 500g badam

pista

Rs.58.00

26 Amul mithaee gulabjamun 1kg tin Rs.110.00

27 Amul mithaee gulabjamun 500g tin Rs.60.00

28 Nutramul 500g reffil Rs.105.00

29 Amul chocolate 35g milk Rs.15.00

30 Amul chocolate 35g fruit & nut Rs.16.00

31 Amul almondbar 35g Rs.12.00

32 Amul chocozoo 232g tin Rs.115.00

33 Amul chocozoo tub 500g Rs.148.00

34 Amul tazza double toned milk 1 ltr tetra Rs.35.00

35 Amul tazza double toned milk 200ml tetra Rs.9.00

36 Amul tazza toned milk- northern eastern

state

1 ltr tetra Rs.38.00

37 Amul gold milk 1 ltr tetra Rs.39.00

38 Amul light skimmed milk 1 ltr tetra Rs.40.00

39 Amul CALCI+ high calcium milk 1 ltr brick Rs.40.00

40 Amul mithaimate sweetened condensed 400g can Rs.54.00

33

milk

41 Amul spray IMF 500g pouch Rs.101.00

42 Amul spray IMF 500g reffil Rs.102.00

43 Amul spray IMF 500g tin Rs.107.00

44 Amul spray IMF 1kg pouch Rs.184.00

45 Sagar skimmed milk powder 500g pouch Rs.204.00

46 Amulya dairy whitener 500g pouch Rs.100.00

47 Amulya dairy whitener 500g reffil Rs.104.00

48 Amulya dairy whitener 1kg pouch Rs.105.00

49 Amul spray IMF 1kg tin Rs.209.00

50 Amul shakti health food drink (kesar

almonds)

500g reffil Rs.115.00

51 Amul kool (kesar, elaichi, rose) 200ml bottle Rs.12.00

52 Amul kool (kesar, elaichi, chocolate) 200ml tetra Rs.12.00

53 Amul kool kesar 250ml can Rs.22.00

.54 Amul kool café 200ml glass

bottle

Rs.15.00

55 Amul kool café 250ml can Rs.22.00

56 Amul kool café 200ml tetra

brick

Rs.15.00

57 Amul kool koko 250ml can Rs.22.00

58 Amul kool milk shake( mango,

strawberry & badam)

220ml can Rs.22.00

59 Amul kool milk shake (mango 180ml tetra Rs.15.00

34

&strawberry) pack

60 Amul fresh cream 200ml tetra

brick

Rs.29.00

61 Amul fresh cream 1 ltr tetra brick Rs.108.00

62 Amul masti spiced butter milk 200ml tetra

brick

Rs.8.00

63 Amul masti spiced butter milk 1 ltr tetra brick Rs.30.00

64 Amul lassee (rose) 200ml tetra

brick

Rs.10.00

65 Amul basundi 1 ltr tetra brick Rs.98.00

35

Amul Promotion

Books

The Amul India Story : Ruth Herediya

Management Kurien Style : MV Kamath

The Unfinished Dream : V Kurien

Sponsored Programs

Amul Surabhi : Doordarshan, India

Amul India Show : Star Plus Channel

Feature Films

Sardar: The Iron Man of India : A film by Ketan Mehta

Manthan: a film by Shyam Benegal

TV Films

(Coming Soon!)

Utterly Butterly Amul : New 30sec TV Film

Amul : The Taste of India TVC : 60 sec film

Amul Golden Jubilee : Manthan TV film : 60 sec film

Amul Cheese TV Film : 40 seconds

Amul Icecream TV Film : 40 seconds

Butter Topicals

Amul Cricket Rankings

36

PRINT ADVERTISEMENTS

37

Advertisement

Its advertising has also started using tongue-in-cheek sketches starring the Amul baby

commenting jovially on the latest news or current events. The pun in her words has been

popular. Amul outdoor advertising uses billboards, with a humorous take on current events

and is updated frequently. The Amul ads are one of the longest running ads based on a theme,

now vying for the Guinness records for being the longest running ad campaign ever with

Smokey Bear. Sylvester da Cunha was the managing director of the advertising agency, ASP,

that created, in 1967, the campaign.

Mascot

Since 1967 Amul products' mascot has been the very recognisable "Amul baby" (a chubby

butter girl usually dressed in polka dotted dress) showing up on hoardings and product

wrappers with the equally recognisable tagline Utterly Butterly Delicious Amul.The mascot

was first used for Amul butter. But in recent years in a second wave of ad campaign for Amul

products, she has also been used for other product like ghee and milk.

4.2.4 PLACE

AMUL TOP RETAILERS

Chennai

Calcutta

Nasik

Jalgaon

Aurangabad

Delhi

Raipur

Jodhpur

Udaipur

Pune

Siliguri / Durg

Kota

38

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading

House" status. GCMMF has received the APEDA Award from Government of India for

Excellence in Dairy Product Exports for the last 8 years.

The major export products are:

Consumer Packs

Amul Pure Ghee

Amul Butter

Amul Shrikhand

Amul Full Cream Milk Powder

Amul Mithaee Gulabjamun

Amul Skimmed Milk Powder

Nutramul Brown Beverage

Amulspray Infant Milk Food

Amul Cheese

Amul Malai Paneer

Bulk Packs

Amul Skimmed Milk Powder

Amul Full Cream Milk Powder

Many of our products are now available in the USA, Gulf Countries and Singapore.

39

5.2 SWOT ANALYSIS OF DAIRY INDUSTRY:

5.1.1 STRENGTHS:

Optimistic Demand Profile: The per capita consumption of milk and milk products is low,

at 132gm per day. The proliferation of urban population spurs the demand for processed

products like cheese and butter. This, when coupled with growth in population, gives rise to

an increasing market.

Profit Margins: Even in case of products like packed liquid milk, the profit margin is

reasonably high. More so, in case of processed products.

Product Mix: This is very flexible, the product line could be extended without the risk of

cannibalization, and also it offers greater cost advantages, and synergies.

Raw Materials: Milk is available abundantly for processing, albeit from the unorganized

sector. Operation Flood has successfully increased the production of milk. Only it needs to be

channelised properly.

5.1.2WEAKNESSES:

Perish ability: Although Pasteurization has reduced this problem to a large extent; it is still

an issue, especially when major part of the milk is produced in the rural areas.

Production Control: Improvement in milk production is possible through adoption of new,

scientific breeding, but it is a long-drawn process.

Transportation of Milk: This is the bane of India--- bad roads. However the condition is

showing improvement over the years, with the general economic development.

40

Competition: The entry of deep-pocketed MNCs has marked a paradigm shift towards global

standards in procurement of milk to distribution of finished products.

5.1.3 OPPORTUNITIES:

Value Addition: Product development, packaging and presentation will generate huge scope

of value addition for all the players. Forward integration like retailing, addition of new

products, and diversification into new product range will provide new area of growth.

Export: There is huge opportunities of growth through exports. Amul is already exporting to

Bangladesh, Sri Lanka, Nigeria, and the Middle East.

5.1.4 THREATS:

The biggest problem for the dairy industry comes from the milk vendors, who are the source

of the raw materials. This sector is largely unorganized, and here lies the problem.

Even after the successful Operation Flood, much remains to be done about organizing the

actual producers of milk.

41

5.2 Conclusion

According to the study made on Amul Company, this project provides a vast information

about this company, how it was originated, detail knowledge about its founder, their

competitors. It also tells that the company is playing a vital in increasing their market value

by attracting the customers towards their products. They got a good marketing concept. This

company was the first Indian based company which has launched U.H.T milk in India which

made the boom to the company. The company has launched many products in the market

which generally liked by the customers. They got very good strategic plans which are helping

them in moving ahead with the logo

THE TASTE OF INDIA, AMUL.

42

BIBILIOGRAPHY

BOOKS REFFERED :

Kotler Philip, Keller K.L., Koshy Abraham, Jha Mithileshwar, Marketing

Management, 13th Edition (South Asian Perspective), Prentice Hall

Kothari CR, Research Methodology , 3rd Edition 1997, Vikas Publishing House, Pvt

Ltd, New Delhi

WEBSITES :

www.amul.com

www.worldfoodprizes.org

OTHER SOURCES :

An Unfinished Dream by Dr Verghese Kurien

Company Annual Report

vi