CERTIFICATE This is to certify that____, a student of MMS- IV from Institute of Management Studies and Research, , has done this project under my guidance. The project is titled “Study of the launch of chocolate ‘Nuts ‘bout U’ by Amul and a Post-launch Customer Satisfaction Survey”. It is the original work of the candidate and has not been submitted elsewhere for any degree or diploma. The sources of the literature have been duly quoted. The project was undertaken in partial fulfillment of the requirements of MMS program of Mumbai University for the year 2001-03.
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CERTIFICATE
This is to certify that____, a student of MMS- IV from Institute of Management
Studies and Research, , has done this project under my guidance. The project is titled
“Study of the launch of chocolate ‘Nuts ‘bout U’ by Amul and a Post-launch
Customer Satisfaction Survey”.
It is the original work of the candidate and has not been submitted elsewhere for any
degree or diploma. The sources of the literature have been duly quoted.
The project was undertaken in partial fulfillment of the requirements of MMS
program of Mumbai University for the year 2001-03.
ACKNOWLEDGEMENT
For achieving any goal, one always needs a source of inspiration. That is what I
received from our project guide ProfRajuu . It is his sincere help, which made me able
to complete my project successfully within time. So, I express my most sincere
gratitude for his worthy and inspiring guidance.
I am thankful to all the respondents for taking their valuable time & providing me the
essential data.
I am also grateful to Miss Ritu Bhandari – Accounts Planner for FCB Ulka
Advertising for the help and assistance provided – in form of knowledge, and other
facilities, which went a long way in making the project complete and holistic.
The project has been an excellent learning exercise for it and I hope it will help me to
a great extent in my future endeavors in the field of marketing.
Raja Hindustani
MMS-IV (Marketing)
EXECUTIVE SUMMARY
Gujarat Co-operative Milk Marketing Federation has been one of the major industries
in India. It has been the leader in the dairy industry and is the market leader with its
Amul cheese and Amul butter. Amul has also entered the ice cream segment as an
extension of its dairy products line. It faces major competition in this segment from
Kwality Walls, a brand of Hindustan Lever Ltd.
Amul is currently the market leader in the ice cream segment with the highest sales.
The perception that teenagers have towards the brand of Amul ice cream is not
known. Hence, primary and secondary research was conducted to evaluate whether
the target audience (teenagers) perceives the brand to be the No 1 in the market. The
research was conducted by means of a questionnaire that gave us the following
insights:
Perception of the target audience towards Amul ice cream.
To estimate and analyze the gaps between the consumers expectations and
services provided by the company.
To study the perception towards competitors brand vis – a – vis Amul.
To qualitatively analyze where Amul stands in the ice cream market in the
minds of the target audience.
Recommendations were made on basis of the findings to enhance the brand image and
perceptions in the mind of the target audience.
Hence, the purpose of this project was to estimate the market realities in terms of
customer preferences and their perceptions about the active players.
INTRODUCTION
“While we may justifiably take pride in having built the largest food product business
in the country, we do not pause to rest upon our laurels. In all that we do, and will do,
we never forget that we face an increasingly competitive environment. In this
environment, we have survived and grown on the basis of our greatest strength: co-
operative culture, co-operative networking, market acumen and respect for both
producer and the consumer.”
HISTORY OF AMUL
Amul: The origin
The mighty Ganges at its origin is but a tiny stream in the Gangotri ranges of the
Himalayas. Similar is the story of Amul, which inspired 'Operation Flood' and
heralded the 'White Revolution' in India. It began with two village cooperatives and
250 liters of milk per day, nothing but a trickle compared to the flood it has become
today. Today Amul collects, processes and distributes over a million liters of milk
and milk products per day, during the peak, on behalf of more than a thousand
village owned by half a million farmer members. Further, as Ganga-ma carries the
aspirations of generations for moksha, Amul too has become a symbol of the
aspirations of millions of farmers.Creating a pattern of liberation and self-reliance for
every farmer to follow.
How did the Amul brand become what it is? To answer that, we must journey back
in time, to the history books, to the time of India’s independence because Amul’s
birth is indelibly linked to the freedom movement in India. It was Sardar Vallabhbhai
Patel who said that if the farmers of India are to get economic freedom then they
must get out of the clutches of the ‘middlemen’.
The first Amul cooperative was the result of a farmers’ meeting in Samarkha (Kaira
district, Gujarat) on 4 January 1946, called by Morarji Desai under the advice from
Sardar Vallabhbhai Patel, to fight rapacious milk contractors. It was Sardar’s vision
to organize farmers, to have them gain control over production, procurement and
marketing by entrusting the task of managing these to qualified professionals,
thereby eliminating the middle men, the bane in farmers’ prosperity.
The decision was taken that day in January 1946: Milk producers’ cooperatives in
villages, federated into a district union, should alone handle the sale of milk from
Kaira to the government-run Bombay Milk Scheme. This was the origin of the
Anand pattern of cooperatives. The colonial government refused to deal with the
cooperative. The farmers called a milk strike. After fifteen days the government
capitulated. This was the beginning of Kaira District Cooperative Milk Producers’
Union Ltd., Anand, registered on 14 December 1946.
Originally the Anand pattern included dairy cooperative societies at the village level,
and a processing unit called a ‘union’ at the district level. Inspired by the Kaira
Union, similar milk unions came up in other districts too. In 1973, in order to market
their products more effectively and economically, they formed the Gujarat
Cooperative Milk Marketing Federation Limited (GCMMF Ltd.). GCMMF became
the sole marketer of the original range of Amul products including milk powder and
butter. That range has since grown to include ice cream, ghee, cheese, chocolates,
shrikhand, paneer, and so on. These products have made Amul a leading food brand
in India.
A quality control expert in Anand suggested the brand name AMUL, from the
Sanskrit Amoolya, meaning priceless. The first products with the Amul brand name
were launched in 1955. Since then, they have been in use in millions of homes in all
parts of India, and beyond. Today Amul is a symbol of many things: Of high quality
products sold at reasonable prices, of availability, of service.
There is something more, though, that makes the Amul brand special and that
something is the reason for our commitment to quality and value for money. Amul is
the brand name of 2 million farmers, members of 10,000 village dairy cooperative
societies throughout Gujarat. This is the heart of Amul, it is what gives strength to
Amul, and it is what is so special about the Amul saga.
In the early days of Kaira Union there was no dearth of cynics. Could ‘natives’
handle sophisticated dairy equipment? Could western-style milk products be
processed from buffalo milk? Could a humble farmers’ cooperative market butter
and cheese to sophisticated urban consumers? The Amul team – farmers and
professionals – confounded the cynics by processing a variety of high-grade dairy
products, several of them for the first time from buffalo milk, and marketing them
nationally against tough competition.
What began way back in 1946 was really an effort to carve out a truly Indian
company that would have the involvement of millions of Indians and place direct
control in the hands of the farmers. It was a mandate for producing, owning and
marketing and above all, building your own truly Indian Brand. And successfully at
that.
You will appreciate that when the lives of lakhs of farmers depend on a brand, and
when your history is grounded in the Independence movement, when not only
competitors but even your own government questions you, then your resolve to be
the best is like the finest steel.
Amul, therefore, is a brand with a difference. That difference manifests itself in a
larger than life purpose. The purpose – freedom to farmers by giving total control
over procurement, production and marketing. Amul and all other milk products
produced by cooperatives were born in struggle. It was the producers’ struggle for
command over the resources that they create, a struggle to obtain equitable returns
and a struggle for liberation from dependence on middlemen. It was a struggle
against exploitation. A refusal to be cowed down in the face of what others believed
to be the impossible.
Amul’s birth was thus a harbinger of the economic independence of our farmer
brethren. Amul’s mission was the development of farmers, nutrition to the nation,
and heart in heart, the real development of India.
Given India’s vast geographical spread, the country had very few dairy plants at the
time of independence. As the then Prime Minister Lal Bahadur Shastri had said, ‘One
Amul is not sufficient. Many Amuls are the need of the hour.’ This led to replication
of the Anand pattern through the Operation Flood programme which has, amongst
others, three major achievements to its credit, namely: making dairying India’s
largest self-sustainable rural employment programme, bringing India close to self-
sufficiency in milk production, and trebling the nation’s milk production within a
span of two and a half decades to make India the world’s largest milk producer.
Today, 173 milk producers cooperative unions and 22 federations play a major role
in meeting the demand for packed milk and milk products. Quality packed milk is
now available in more than 1,000 cities throughout the length and breadth of India.
And this is milk with a difference – pasteurized, packaged, branded, owned by
farmers – carrying the milk drop logo, like Amul, a symbol of quality.
Over the course of Operation Flood, milk has been transformed from a commodity
into a brand, from insufficient production to self-sufficient production, from
rationing to plentiful availability, from loose, unhygienic milk to milk that is pure
and sure, from subjugation to a symbol of farmer’s economic independence, to being
the consumer’s greatest insurance policy for good health.
What of the future? India’s population has risen from 350 million in 1950 to 1,000
million today. As cities draw people to new employment opportunities, the current
urban-rural ratio of 26:74 is likely to become 33:67 by the year 2010. As per
available projections, the population by the year 2010 would touch 1,190 million
people. This means that by the year 2010, rural India will be required to support
some 800 million people, an increase of 11% over 1999’s 720 million rural people.
Based on the current population demographics and projections, we estimate that
there will be 260 million women in the age-group of 15-59 years in India by the year
2010 and this would further increase to 302 million by the year 2020, of which only
100 million would be literate. This means that rural women will comprise 21% of
India’s total population. In our country, most rural women contribute to agricultural
and dairying activities – apart from the household work – and their activities are not
included in India’s GDP despite their significant contribution. Dairying is, therefore,
very important to our rural women. For many, it is their main source of employment
and income, incomes that they often manage themselves.
Population gives us one picture. The other is provided by the demand for household
commodities. By 2010, the national requirement for food grains will touch 266
million metric ton, rising to 343 mmt by 2020. For milk, estimated consumption will
be 153 mmt by 2010 and 271 mmt by 2020. For edible oils, demand will soar to 9
mmt by 2010 and 13 mmt by 2020.
It should be clear that agriculture would remain the most important engine of our
economy. Amul and its cooperative sister brands are aware of this challenge. The
future, they say, is at best a mystery. But, it should be clear that the needs of a nation
on the move must be met. The country is young. There are more working women.
The needs of an ever-growing population have to be met with sustainable economic
development. And the demand for milk and milk products, therefore, is only going to
grow further. Couple this with the nutritional needs of the new and the old
generations and it is equally clear that there will be a need for more value added milk
products. This calls for production to be enhanced at even faster rate than it is at
present.
There is also something very special about milk, something which requires that any
brand for milk and milk products to act not simply as a seller, but as a trustee. Milk is
not a white good or a brown good. It is not something people save their entire lives in
order to buy – like a car, or a house. Milk is not a status symbol; rather it is the
symbol of nutrition. Milk is a nearly complete food, providing protein, vitamins,
minerals and other nutrients so essential to maintaining good health.
We realise the value of milk on the day the milkman does not bring it to our
doorstep, when our children have to go to school without it, when we go without our
daily cup of coffee or tea. And what would our lives be like without ghee, butter,
cheese, curd, lassi, chaas and the like. Milk is not only an ingredient in our favourite
recipes; it is an essential ingredient of life itself. And, by its very indispensable
nature, it has one of the biggest markets – a whopping 82 mmt at a very conservative
consumption of just 214 grams per day per person in India alone.
Our commitment to the producer, and our contract with the consumer are the reasons
we are confident that cooperative brands, like Amul, will have an even bigger role to
play in the next fifty years. Resources need to be deployed with a purpose and a
commitment to deliver better results. There is no limit for a marketing exercise then.
It must build India and its culture a second time round. An India, that is the land of
our dreams.
Amul
Formed in 1946, Amul has initiated the Dairy Cooperative movement in India and
formed an Apex Cooperative Organization, Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF), jointly owned by some 2.1 million milk producers in
Gujarat, India. Its products, including milk powders, liquid milk, butter, ghee, cheese,
chocolate, ice cream and pizza are widely used throughout India and abroad and have
made Amul the largest food brand in India today with an annual turnover of some Rs.
23 Billion ($US 500 million) per annum.
The primary goal of Dr. V. Kurien, Chairman, GCMMF, has been to build a strong
Indian society economically through an innovative cooperative network, to provide
quality service and products to end-consumers and good returns to the farmer
members. Dr. Kurien states, "We have traversed a path that few have dared to. We are
continuing on a path that still fewer have the courage to follow. We must pursue a
path that even fewer can dream to pursue. Yet, we must. We hold in trust the aims and
aspirations of millions of our countrymen."
Information Technology has played a significant role in developing the Amul brand.
The logistics behind co-coordinating the collection of some 6 million liters of milk
per day from 10,755 separate Village Cooperative Societies throughout Gujarat and
then storing, processing and producing milk products at the respective 12 District
Dairy Unions, are awesome. The installation of 3000 Automatic Milk Collection
System Units (AMCUS) at Village Societies to capture member information, milk fat
content, volume collected and amount payable to each member has proved invaluable
in ensuring fairness and transparency throughout the whole Amul organisation.
In 1996 Amul was one of the first major organisations in India to have a website and
this has been used both to develop an intranet of Amul distributors as well as a cyber-
store for consumers, one of the first examples of e-commerce activity in India.
Amul and co-op
The CEO, Mr. B M Vyas, recently said that, "Amul is not a food company, it is an IT
company in the food business". In saying this he was recognizing that the most
efficient way of building links between milk producers and consumers so as to
provide the best returns for both is through IT innovation.
This is why Amul has embraced the ideas behind. Co-op with such enthusiasm. Not
only will the TLD enable consumers in India to recognize an established brand they
can trust online, it will enable Amul to begin trading competitively throughout the
world, reaching markets, which have hitherto been inaccessible.
The CIO, Mr. Subbarao Hegde said, "Information Technology is the most effective
tool we have in communicating with our members and the millions of consumers who
purchase Amul products throughout India every day. Co-op not only reflects the
cooperative values which shape our own organisation democratically dynamic, it will
also give us a vital business advantage as we seek to develop the Amul brand
throughout the world."
BRANDING AND ADVERTISING – AMUL
AMUL means "priceless" in Sanskrit. A quality control expert in Anand
suggested the brand name “Amul,” from the Sanskrit “Amoolya,”. Amul
products have been in use in millions of homes since 1946. Amul Butter, Amul
2. Which of the following best describe the message? Chocolate for Valentine day Chocolate that is Full of Nuts, full of love Apricot titbits chocolate Chocolate for youngsters who are in love
3. Did you like the ad? (Rate on a scale of 1-10 if 1 was least and 10 the highest) ________________________