Amul the.docx

Project Report on Industrial Exposure

AMUL

THE TASTE OF INDIA

Submitted in Partial fulfillment of the requirements for the award of Degree

Bachelor of Business Administration

(BBA)

Submitted by:                                                                           Under Guidance of:

ASHISH GUPTA Ms. NEHA RALLI

Bharati Vidyapeeth University, School of Distance Education,

Academic Study Center: BVIMR, New Delhi

Batch: 2008-2011

DECLERATION

I Ashish Gupta have completed the industrial report on AMUL, under the guidance of Ms

NEHA RALLI in the partial fulfillment of the requirement for the award of

BACHELORS OF BUSINESS ADMINISTRATION, BVUSDE academic study centre

BVIMR New Delhi. This is original piece of work which has not been copied.

CERTIFICATE

This is to certify that the project report on Industrial Exposure tilled AMUL is an original

piece of work done by ASHISH GUPTA Submitted in the partial fulfillment of the

requirement for the award of the degree of BACHELORS OF BUSINESS

ADMINISTRATION, BVUSDE academic study centre BVIMR New Delhi.

ACKNOWLEDGEMENT

Success is an effort bounded actively, involving the co-operation of all.

To create and formulate this project report, I would be thankful to the

entire individual who Served me as a true guide and epitome of

knowledge. A Project usually falls short of its expectations unless guided by the

right person at the right time.

I would like to thank Ms NEHA RALLI, BBA Project guide f o r anytime

and every time guidance and continuous support. Her experience and

methodology of providing training helps m e not to perform the desired

activity but to accomplish creativity. I also like to thank my parents and

my family members who are always a support for me.

Above all, I would like to thank the Almighty God without whom this

work could never have been completed.

PREFACE

Project report is a very important part of a BBA curriculum. It provides an optimistic

iconography for ‘Future’ existence through which students are able to see the real

industrial environment which gives an opportunity to relate theory with practice.

The main objective of making project report is to develop skill in student by supplement

to the theoretical study of business management in general and gain real life knowledge

about the industrial environment and business practices. The BBA programme provides

student with a fundamental knowledge of business and organizational functions and

activities, as well as an exposure to strategic thinking of management.

In today’s globalize world, where cutthroat competition is prevailing in the market,

theoretical knowledge is not sufficient. Beside this one need to have practical knowledge,

which would help an individual in his/her carrier activities and it is true that

“Experience is best teacher”.

LIST OF CONTENTS

Chapter 1 Company Profile

1.1 Introduction and History. 1-6

1.2 Awards7

1.3 Contests7

1.4 Plants7-8

1.5 Board Members..................................................................................9

1.6 Amul Relief Trust10

1.7 Organization of Amul11

1.8 Amul parlous12

1.9 Mission & vision13

1.10 Amul in aboard............................................................................. 14

Chapter 2 Marketing Strategies

2.1 Products.......................................................................................15-18

2.2 Product Portfolio.19

2.3 Marketing segmentation20-21

2.2.1 Customer Based

2.2.2 Market Based

2.3 Taste of competition...................................................................22-35

2.4 Market analysis & type of industry..................................................36

2.5 Product analysis. 37

2.6 4 PS.............................................................................................38-39

2.7 3 C s......40

Chapter 3 Organizational Structure

3.1 Business strategy............41

3.2 Growth phase....................................................................................42

.....................................................................................................................

...................................

3.3 Future plans.......................................................................................43

.....................................................................................................................

.................................

3.4 Dairy problem . .44

3.5 Marketing strategy....45

3.6 Business model. .46

3.7 Advertisement...47

Chapter 4

SWOT ANALSIS49-50

Chapter 5

Learning’s 51

My Findings52

Suggestions53

Conclusion54

Bibliography55

CHAPTER 1

Company Profile

INTRODUCTION AND HISTORY

In the year 1946 the first milk union was established. This union was started with

250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the

union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’

UNION. This union selected the brand name AMUL in 1955.

The brand name Amul means “AMULYA”. This word derived form the

Sanskrit word “AMULYA” which means “PRICELESS”. A quality control expert in

Anand had suggested the brand name “AMUL”. Amul products have been in use in

millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray,

Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul

Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6

billion in 2005). Today Amul is a symbol of many things like of the high-quality products

sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of

indigenous technology, of the marketing savvy of a farmers' organization. And have a

proven model for dairy development (Generally known as “ANAND PATTERN”).

In the early 40’s, the main sources of earning for the farmers of Kaira district

were farming and selling of milk. That time there was high demand for milk in Bombay.

The main supplier of the milk was Polson dairy limited, which was a privately owned

company and held monopoly over the supply of milk at Bombay from the Kaira district.

This system leads to exploitation of poor and illiterates’ farmers by the private traders.

The traders used to beside the prices of milk and the farmers were forced to accept it

without uttering a single word.

However, when the exploitation became intolerable, the farmers were frustrated.

They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in

the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by

establishing a co-operative union, Instead of supplying milk to private traders. Sardar

Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help.

Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He

advised the farmers to form a society for collection of the milk.

These village societies would collect the milk themselves and would decide the prices at

which they can sell the milk. The district union was also form to collect the milk from

such village co-operative societies and to sell them. It was also resolved that the

Government should be asked to buy milk from the union.

2

However, the govt. did not seem to help farmers by any means. It gave the

negative response by turning down the demand for the milk. To respond to this action of

govt., the farmers of Kaira district went on a milk strike. For 15 whole days not a single

drop of milk was sold to the traders. As a result the Bombay milk scheme was severely

affected. The milk commissioner of Bombay then visited Anand to assess the situation.

Having seemed the condition, he decided to fulfill the farmers demand.

Thus their cooperative unions were forced at the village and district level to

collect and sell milk on a cooperative basis, without the intervention of Government. Mr.

Verghese Kurien showed main interest in establishing union who was supported by Shri

Tribhuvandas Patel who lead the farmers in forming the Co-operative unions at the

village level. The Kaira district milk producers union was thus established in ANAND

and was registered formally on 14th December 1946. Since farmers sold all the milk in

Anand through a co-operative union, it was commonly resolved to sell the milk under the

brand name AMUL.

3At the initial stage only 250 liters of milk was collected everyday. But with the

growing awareness of the benefits of the cooperativeness, the collection of milk

increased. Today Amul collect 11 lakhs liters of milk everyday. Since milk was a

perishable commodity it becomes difficult to preserve milk flora longer period. Besides

when the milk was to be collected from the far places, there was a fear of spoiling of

milk. To overcome this problem the union thought out to develop the chilling unit at

various junctions, which would collect the milk and could chill it, so as to preserve it for

a longer period. Thus, today Amul has more than 150 chilling centers in various villages.

Milk is collected from almost 1073 societies.

With the financial help from UNICEF, assistance from the govt. of New Zealand

under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and

butter was planned. Dr.Rajendra Prasad, the president of India laid the foundation on

November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India

declared it open at Amul dairy on November 20, 1955.

4

PEOPLE POWER: AMUL'S SECRET OF SUCCESS

The system succeeded mainly because it provides an assured market at remunerative

prices for producers' milk besides acting as a channel to market the production

enhancement package. What's more, it does not disturb the agro-system of the farmers. It

also enables the consumer an access to high quality milk and milk products. Contrary to

the traditional system, when the profit of the business was cornered by the middlemen,

the system ensured that the profit goes to the participants for their socio-economic

upliftment and common good.Looking back on the path traversed by Amul; the following

features make it a pattern and model for emulation elsewhere.

Amul has been able to:

Produce an appropriate blend of the policy makers farmers board of management

and the professionals: each group appreciating its rotes and limitations,

Bring at the command of the rural milk producers the best of the technology and

harness its fruit for betterment.

Provide a support system to the milk producers without disturbing their agro-

economic systems,

Plough back the profits, by prudent use of men, material and machines, in the

rural sector for the common good and betterment of the member producers

Even though, growing with time and on scale, it has remained with the smallest

producer members. In that sense. Amul is an example par excellence, of an

intervention for rural change.

5

Awards

• GCMMF has bagged award for excellent performance in

exports of dairy products for the year 2006-07 from

APEDA. GCMMF has won the award for 11th time.

• Amul Pro-Biotic Ice-cream Got No. 1 Award At World

Dairy Summit 2007.

• Ramkrishna Bajaj National Quality Award-2003.

• Amul - The Taste of India receives International CIO 100

Award for Resourcefulness.

• Rajiv Gandhi National Quality Award–1999

Contests

Amul Music ka Maha MuQQabala 2009-10 Contest

Amul Star Voice of India

Amul Chief Of the Year, 2009 Contest

Amul Maharani contest ,2008-09

Amul Food Festival Contest

Slogan Likho Disneyland Dehko Contest

Amul Fly To Bangkok Contest

6

Plants

First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk

powder, flavored milk and buttermilk.

Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul

Ganthia and Amul lite.

7

Third plant is at Kanjari, which produces cattelfeed

.

Fourth plant is at Khatraj, which engaged in producing cheese.

Today, twelve dairies are producing different products under the brand name Amul.

Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud

for Gujarat and whole India.

8

BOARD MEMBERS

Shri Ramsinh Prabhatsinh Parmar Chairman

Shri Rajendrasinh Dhirsinh

ParmarVice-Chairman

Shri Dhirubhai Amarsinh Zala Director

Smt. Mansinh Kohyabhai Chauhan Director

Shri Maganbhai Gokalbhai Zala Director

Shri Shivabhai Mahijibhai Parmar Director

Shri Pravinsinh Fulsinh Solanki Director

Shri Chandubhai Madhubhai

ParmarDirector

Shri Bhaijibhai Amarsinh Zala Director

Shri Bipinbhai Manishankar Joshi Director

Smt. Sarayuben Bharatbhai Patel Director

Shri Ranjitbhai Kantibhai Patel Director

Shri B. M. VyasManaging Director

G.C.M.M.F

Shri Deepak Dalal District Registrar

Shri Rahul Kumar Managing Director

9

AMUL RELIEF TRUST

A devastating earthquake (Richter scale – 7.9) hit Gujarat on 26th January 2001. The

epicenter of the quake was located in Kutch district. It caused death of thousands of

people, tens of thousands were injured, hundreds of thousands were rendered homeless

and damage of billions of Rupees was done.

GCMMF formed a specific organization named “Amul Relief Trust” (ART) under the

Chairmanship of Dr. V. Kurien in 2001 with a donation of Rs. 50 Millions for

reconstruction of the school buildings damaged in the 2001 earthquake in the Kutch area.

The Trust reconstructed 6 schools damaged by the above earthquake at a cost of Rs. 41.1

millions in Kutch area. Four of these schools started refunctioning from the last two

academic sessions and the other two schools from the current session.

A

school reconstructed by Amul Relief Trust in the earthquake affected Ratadia Village in

Mundra Taluka of Gujarat and a school reconstructed by Amul Relief Trust in the

earthquake affected Devpar Village in Mandvi Taluka of Gujarat.

10

Organization of Amul

Members: 13 district cooperative milk

producers' Union

No. of Producer Members: 2.79 million

No. of Village Societies: 13,328

Total Milk handling capacity: 11.22 million litres per day

Milk collection (Total - 2008-

09):

3.05 billion litres

Milk collection (Daily Average

2008-09):

8.4 million litres

Milk Drying Capacity: 626 Mts. per day

Cattlefeed manufacturing

Capacity:

3500 Mts per day

11

AMUL PARLOUR

Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlours

created in major cities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and

Surat. Amul has plans to create a large chain of such outlets to be managed by

franchisees throughout the country. We have created Amul Parlours at some prominent

locations in the country, which are run by the company or its wholesale dealers:

1. Delhi Metro Rail Corporation

2. The Somnath Temple

3. National Institute of Design

4. Infosys Technologies in Bangalore, Mysore & Pune

5. Wipro campus in Bangalore

6. L.J. College, Ahmedabad

7. Ahmedabad Airport

8. Surat Municipal Corporation

9. Gujarat State Road Transport Corporation

10. Jubilee Mission Medical College, Trichur, Kerala

11 Sanjay Gandhi Hospital Parlours, Amethi

12

Mission & vision

Vision: liberate our farmers from economic

oppression and lead them to prosperity.

Mission 2020: dairy cooperatives of Gujarat

turnover of Rs. 27000 crores by the year2020

Objective: is to ensure that the maximum

share of the consumer’s rupee goes back to

the milk producers

13

Amul in abroad:

Amul is going places. Literally. After having established its presence in China, Mauritius

and Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), India’s

largest milk cooperative, is waiting to flood the Japanese market. Then, GCMMF is also

looking at Sri Lanka as one of its next export destinations. Amul products are already

available on shelves across several countries, including the US, China, Australia, West

Asian countries and Africa.

GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include pouch

milk, ultra heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk. It 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 11 years.

Amul is available today in over 40 countries of the world. They are exporting a wide

variety of products. The major markets are the US, West Indies, countries in Africa, the

Gulf region, and our Saarc neighbours, Singapore, Philippines, Thailand, Japan and

China. They have demonstrated that if a level playing field is granted, Indian dairy

products are successful in the global market. Growth in consumer pack exports has been

creditable and they have consolidated their exports.

The major export products are:

1 Consumer Packs 7 Amul Malai Paneer

2 Amul Pure Ghee 8 Amul UHT Milk (Long Life)

3 Amul Butter 9 Amul Gold Milk

4 Amul Shrikhand 10 Amul Taaza Double Toned Milk

5 Amul Mithaee Gulabjamun 11 Amul Taaza Double Toned Milk

6 Nutramul Brown Beverage 12 Amul Taaza Double Toned Milk

14

CHAPTER 2

MARKETING STRATEGIES

Amul product

Bread Spreads : Amul butter,Amul lite ,Delicious Table Margarine,

Powder Milk: Amul spray infact milk,Amul instant full cream milk powder,Amul

dairy whitner,Sagar Tea coffee whitener,Sagar skimmed milk powder

Fresh Milk : Amul fresh milk,Amul gold milk ,Amul Taaza double toned milk,Amul

lite slim &trim milk,Amul shakti cream toned milk,Amul Calci+,Amul butter

15

Cheese: Amul Pasteurized, Amul Cheese, Amul Cheese Spreads, Amul Emmwntal

Cheese, Amul Pizza Mozzarella Cheese, Gouda Cheese.

For Coocking: Amul/Sagar Pure Ghee, Coocking butter, Amul Malai, Utterly

delicious pizza, Mithi Dahi, Pro-boitic dahi,

Desserts: Amul Ice Creams,Amul Shrikhand,Amul Mithee Gulab Jamuns,Amul

Chocalates,Amul Basundi.

16

Health Drink: Nutramul, Amul Shakti Health food drink

Milk Drinks: Amul Kool Millk Shaake, Amul Kool ,Amul Kool Cafe, Kool Koko,

Nutramul Energy Drink, Amul Kool Chocolate Milk, Amul Kool Flavoured Bottled

Milk, Amul Kool Flavored Tetra Pack, Amul Masti Spiced Buttermilk, Amul Lassee

Amul Kool Thandai

17

Ice creams

Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)

Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival,

BadshahiBadam Kulfi, Shista Pista Kulfi)

Utsav Range (Anjir, Roasted Almond)

Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate)

Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant)

Sundae Range (Mango, Black Currant, Chocolate, Strawberry)

Millennium Ice cream (Cheese with Almonds, Dates with

Honey)

Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi

Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green PistaKulfi)

Cool Candies (Orange, Mango)

Cassatta

Tricone Cones (Butterscotch, Chocolate)

Megabite Almond Cone

Frostik - 3 layer chocolate Bar

Fundoo Range - exclusively for kids

SlimScoop Fat Free Frozen Dessert (Vanilla,

Banana, Mango, Pineapple)

Health Isabcool

18

Amul – Product Portfolio

Category Market Share Market Position

Butter, Ghee 85% 1

Milk Powder 40% 1

Cheese 50% 1

Ice-cream 24.75% 2

Sweets 50% 1

Chocolate Drink 90% 1

Chocolate 10% 3

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Customer Based Market Segmentation

KidsKids

WomenWomen

YouthYouth

Amul Kool Chocolate MilkNutramul Energy DrinkAmul Kool Millk Shaake

Amul Calci +

Utterly Delicious PizzaAmul Emmental CheeseAmul Cheese Spreadsv

20

Industry Based Market Segmentation

Calorie ConsciousCalorie Conscious

Health ConsciousHealth Conscious

Amul LiteSagar Skimmed Milk PowderAmul Lite Slim and Trim Milk

NutramulAmul Shakti Health Food Drink

Milk

Ice-cream Manufacturers

Restaurant/Food Chains

Temples

Coffee Shop Chains

21

Butter/Cheese/GheeButter/Cheese/Ghee

Bakery & Confectionaries

Pizza Retailers

Snacks Retailers

22

• BNZFL is a joint venture between Britannia Industries Ltd. and the Fonterra

Cooperative Group, New Zealand, a dairy cooperative group.

• The company focuses entirely on the dairy business, with cheese being its

flagship product. The other products it sells are dairy whiteners, butter, ghee

(Indian clarified butter) and a malt drink- Anlene. All products are marketed

under the 'Britannia MilkMan' brand.

• Its turnover in 2005-2006 is US$ 24 million with about 50% coming from

processed cheese, 30% from the dairy whitener and the remaining 20% from

butter and ghee sales.

23

• BNZF only sells in the processed cheese segment and has five variations of

processed cheese in the market, besides a cheese dip product. Over half of the

company's revenues come form the processed cheese segment.

• BNZF cheese is priced at a premium in the market, one reason being that the cheese

is sourced from cow's milk (unlike Amul that sources its cheese from buffalo milk).

• Cheese products: Cheese cubes, Cheese singles (regular and Slim variants),

Britannia Milkman Malai Chaska- a soft, fresh and creamy ‘dairy spread,’ which

has a mild, tangy taste, Britannia cheese spread in different flavors like Masala

Herbs, Spicy Cilantro, Peppy Pepper etc., and Pizza cheese.

24

• Britannia Flavored Milk in tetrapaks are popular. Other products in the milk range

include products like Sweet Lassi (buttermilk) and Cold Coffee in 200 ml

tetrapaks. The Lasssi is priced at Rs. 10 while the Cold Coffee is priced at Rs. 12.

• The firm has also entered the fresh pasteurized milk market, dominated by

Government-owned milk marketers

• The firm has started supplying dresh paneer (cottage cheese) in and around Delhi,

the national capital.

• The firm also has in its portfolio Daily Fresh Dahi (curd) and has just launched

Low fat Dahi in 2008

25

• Besides focusing on competitive pricing, BNZF has adopted a three-pronged

strategy of freshness (lower pipeline stock), availability (improve distribution

network) and visibility (more shelf space at modern trade).

• It recently entered some fresh milk markets, such as Delhi and Kolkata, where

GCMMF does not have a presence. It is concentrating on just 30 cities, and that

too through select class A & B outlets, for butter and cheese. It is not playing the

national game with GCMMF.

• Being No 2in the butter and cheese market afterAmul which holds more than 86%

(combined butter & cheese market) it should be following Offense strategy by

attacking the strengths of Amul cheese market.

26

• Nestlé India is a subsidiary of Nestle S.A., world's biggest food company and a

leading Swiss giant.

• Nestle India's business can be broadly classified into four categories ---milk

products and nutrition (infant mixes, yoghurt, milk), prepared dishes and cooking

aids, beverages (coffee and malted drinks) and chocolate and confectionary.

• Company has a wide presence across India with its portfolio of strong brands

Nescafe,mggi,Milkybar,Milo,KitKat,Barone,Polo,Munch,Milkmade,Nestea,

Nestle Milk, Nestle Fresh 'n' Natural Dahi and NESTLE Jeera Raita

The company is focused on growing its market share through renovation and innovation

of its existing brands in India.

27

Nestle Dairy whitener

• The loose milk market is estimated to be around Rs470 billion, the processed milk

market is only Rs 10000 crores. Milk powder market is only 7% of the whole

milk market.

• There are two types of milk powders

a. Whole milk powder

b. Skimmed milk powder.

Everyday is a major player in the Dairy whitener category that is a part of the

skimmed milk category. The dairy whiteners are used for tea making.

28

Nestle Everyday

• Everyday was launched in 1986 now have a market share of around 22%. The

category is facing the major obstacle of consumer perception towards this

category. The consumers perceive that loose milk is fresh. And with abundant

milk supply, milk powders were able to penetrate only 4.7% of the entire market.

• While Everyday faces stiff competition from Amul's Amulya and Britannia's

Milkman, the major competition is from the ordinary milk.

• Adding more nutrients, variants and identifying multiple uses are the only option

in this nascent market.

• Expand the market or increase the usage situations

29

• Wants to give GCMMF competition across the entire dairy line. Will be busy

protecting the dominance of its Cerelac and Milkmaid brands, against the

impending price-led onslaught from GCMMF's Amul Infant Milk Substitute and

Mithai Mate, which will now be produced from a spanking new 8,000 tonne a

year facility at Mehsana.

• Nestle India has access to its Switzerland-based parent, Nestle SA's investments

(global expenditure was Rs 6,500 crore in 2007) in research and development and

advanced technology for foods and beverages

• Likewise, Nestle Fresh ‘N' Natural Slim Dahi (fat free), Nestle Milkmaid Fruit

Yoghurt (fat free with real fruits), Nestle Nesvita (fat free with probiotics, for

healthy digestion), Nestlé Cerelac Stage 4 and Nestlé Nan with DHA (both infant

foods) were also launched.

30

• Cadbury Schweppes is the No.1 confectionery and third largest soft drinks

company in the world. We manufacture, market and distribute branded chocolates,

confectionery and beverages that bring smiles to millions of consumers across

180 countries

• Cadbury India began its operations as a trading concern in 1947. The company

today employs nearly 2000 people across India.

• Currently Cadbury India operates in three sectors viz. Chocolate Confectionery,

Milk Food Drinks and in the Candy category.

• In the Chocolate Confectionery business, Cadbury has maintained its undisputed

leadership over the years and has market share of over 70% - the highest Cadbury

brand share in the world!

Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, Éclairs, Temptations and

Celebrations.

31

• In the Milk Food drinks segment our main product is Bournvita - the leading

Malted Food Drink (MFD) in the country.

• Similarly in the medicated candy category Halls is the undisputed leader.

• We recently entered the gums category with the launch of our worldwide

dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries

worldwide.

32

• Since 1965 Cadbury has pioneered the development of cocoa cultivation which

gives it a strong unbending foundation in chocolates segment in India.

• Being the market leader it follows the Defense strategy.

• It re-launched three brands: 5 Star, Gems, and Bournvita recently. It is looking at

its strategy afresh to gain a toehold in the sugar confectionery market, and to

reduce its traditional dependence on chocolates.

33

• Unilever, the major shareholder in HLL, is the world's largest ice-cream company

selling in more than 80 countries (could be more, by now), mainly under the

brand name Walls.

• The Rs 1,200-crore branded ice creams sector is dominated by HLL with 37%

market share followed by Amul with 27% market share.

• With a growth in sales of nearly 40 per cent in 2006 and with HLL making profits

in the category for the second year in succession, the company is bullish.

The market potential is huge, with ice cream consumption in the country very niche, at

around 500 ml per capita, compared with 2-4 litres in Singapore and an eye-popping 25

litre in the US.

34

• The strategy of promoting Kwality Walls as an umbrella brand for its ice creams,

rather than a product-driven promotion, has helped to build the brand well.

• The FMCG major's ice-cream business eliminated several stock-keeping units,

rationalised manufacturing infrastructure and brought its focus down to six

mainline cities only, where 60 per cent of the ice-cream market exists.

• It is also planning to extend Unilever’s retail brand ‘Kwality Walls Swirls’ parlors

in accordance with the growing number of shopping malls in India.

• Sailesh Venkatesan, category head, Ice Creams, HLL said: “Our growth will be

driven by increasing the availability and offering innovative products at

affordable price points.

35

Market analysis & type of industry

Market share of Amul butter is around 86%

Market presence – available in over 500,000 retail outlets across India.

Amul butter is made from- butter, common salt, permitted natural color (annatto)

Amul comes under FMCG sector.

Market presence

Demographics

Age- from 5 yrs – 80 yrs.

Sex- No bar

Income- low to high

Occupation-Any sector (not necessary)

Education- Lower to higher

Psychographics

Personality- No discrimination.

Life style- a basic normal life to high class living std

Buying Motives-It is generic with butter category, renowned butter available in market,

loved by all consumers.

36

Product Analysis

Product Specification- Meets AGMARK standards and BIS specifications.

No.IS:13690:1992.

Product personality- It is a unisex product.

USP- is its taste. Amul butter is made from fresh cream by modern continuous butter

making machines.(purely vegetarian)

Product life cycle stage

Amul butter is in its Maturity stage, as it is the most profitable stage and definitely

Amul butter is making huge profits as it dominates the market with an overall share

of 86%.

The sale is definitely increasing but at a slower pace, has a very strong Brand

awareness and advertising expenditure thus reduced.

37

Product

•Create awareness about its different brands thereby enabling the customer to

differentiate between its various brands.

•Copy-write the packaging design to preserve the distinguishing identity barring

competitors from imitating the same.

•Introduction of larger volume pouches in line with economy packs to provide large scale

buyers price benefits.

•Different shaped pouches for its products for easy identification, e.g. Square shaped

pouch for Amul Tazaa, rectangular shaped for Amul Gold, etc.

Place

Place refers to marketing activities that make products available to consumers at the right

time in a convenient location. It is the process of moving products from the producer to

the consumer, which may involve several steps and the participation of multiple.

AMUL has developed federation and AMUL parlors located in several part of country.

The GCMMFhandles the works relating to managing of stocks and distributors in

country. Thus GCMMF look after the disbursement of product to the various marketing

channels.

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Price

It is the value, usually in monetary terms that sellers ask for in exchange for the products

they are offering. Pricing and product image are closely related. Customers will pay a

higher price for well – known, well –regarded products, partly because of the image

created through advertising and other promotions. This includes list price, discount,

allowance, and credit terms. The prices of products of AMUL are also decided by the

GCMMF. The GCMMF conducts the market survey to check the validity and feasibility

of prices in the market and accordingly decides the prices of AMUL products.

However, the price is inclusive of several elements like,

•Cost of milk. •Processing cost.

•Packaging cost. •Advertising cost.

•Transportation cost. •Sales promotion costs

•Taxes etc.

The GCMMF considers all these cost aspects and set them up in pricing structure to

decide the selling price of milk and milk products.

Promotion

Place refers to marketing activities used to communicate positive, information about an

organization, its products and activities to directly or indirectly expedite exchanges in

target market. It includes a variety of techniques including advertisement, sale promotion,

public relation and personal selling that are used to communicate with customers and

potential customers. AMUL promotes its products through newspaper, T.V.; hoarding

etc. television is the best media for advertising. The GCMMF however uses hoarding for

advertising in local areas. Hoarding designed on the creative basis attract the customer

more.

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3 CS……

Customers extremely satisfiedMoved from loose milk to packaged milkReady to try more productsImproved socio-economic conditions

Largest milk brand in AsiaMore than 30 dairy brandsMarket leader in ghee & butterVery strong supply chainEnjoys Fine reputationQuality with Affordability

Defending against Mahananda,Vijay, Milma & other co-operative milk brands

Aggressive moves against Britannia, Nestle, Mother Dairy and Kwality

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CHAPTER 3

ORGANISATIONAL STRUCTURE

Amul Business Strategy

Developing demand

Limited purchasing power, modest consumption levels

A low-cost price strategy products

The distribution network

dry and cold warehouses

cash transactions throughout the supply chain

JIT improves dealers' return on investment (ROI)

Umbrella brand

common brand for most product categories

Alum's sub-brands , edible oil products - Dhara, mineral water - Jal Dhara brand

while fruit drinks - Safal

Third party service providers

core is milk processing , production of dairy products

logistics of milk collection, distribution of dairy products, sale of products

through dealers and retail stores

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The Growth Phase

Rs.5 million plants for milk powder and butter in 1955, expanded in

1958(sweetened condensed milk).

In 1960, Amul started producing 2500 tons of roller-dried baby food and 600 tons

of cheese per year.

Role of “Central Food Technological Research Institute” (CFTRI), Mysore.

For the 1st time in the world Cheese or baby food was made by buffalo milk on a

large scale.

A project for balanced cattle feed (OXCAM) Freedom from Hunger.

Milk powder for additional req. of defence(40-20)(1963-65).

The Mogar Complex Story

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An Excuse to Expand

Bombay Milk Scheme could not absorb the extra milk produced by the “KAIRA

UNION” in winter.

The production was 2.5 times more in winter than in summer.

No Assured Market, Sell to Mid-man again, Etc

Need for Change (Innovation required)

Butter and milk powder was the only way to save the day!!!

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FUTURE PLANS

Expansion of distribution network, creative marketing, consumer education and product

innovation, we will leverage effectively on rising income levels and growing affluence

among Indian consumers.

Tapping the rising demand for new value Value added products.

Milk shed area will increase to 231 lakh kg per day (23.1 million kg per day), at an

annual growth rate of 4%

Installing Bulk Milk Chillers and Automatic Milk Collection Systems in all our village

cooperative societies.

Collect as much as 195 lakh kg per day (19.5 million kg per day) of milk in the peak

flush season.

Satellite dairies with combined processing and liquid milk packaging capacity of 50

LKPD will be established in major metro market

We plan to double to processing capacity of our dairy plants to 20.7 million kg per day,

by 2020

Plan to expand our cattle feed manufacturing capacity, more than four times to 12,000

MT’s per day, by 2020.

Total investments envisaged for creating all the required infrastructure would be Rs.

2,600 crores (Rs. 26 billion) till the year 2020

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Amul dairy problem

1. Lack of customers care: Customer care not trained and not knowledge about how can

deal with customers.

2. Bad Quality Butter Milk: Quality of butter is not up to the mark.

3. Expiry dated milk supply to consumer: Amul dairy not a proper management.

4. Milk price: Amul dairy Employee charge higher price to milk. When M.R.P of milk

price is less but they charge the higher price of milk.

Problem Solution

1. To provide the proper training employee.

2. To increase Quality of stander

3. To increase efficiency of work

4. To create better customer value

5. To increase product line

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Marketing Strategies

• Over the years, Amul's advertising philosophy had been "to be simple, fresh and

innovative".

• The clean, emotion-based ads refrained from using hi-tech special effects, and aimed at

maintaining the perfect balance between the traditional and the modern.

• With its clever use of topical events, Amul’s utterly butterly campaign—it has the

distinction of entering the Guinness World Records as the longest running campaign has

won the brand several accolades.

• They have changed the packaging, their technology and their approach to marketing

based on the changing taste buds of our consumers.

• However, the only thing that has helped them sail smoothly is that they have not

changed their core values—give the best quality product to the consumer, and the best

possible price. It holds true in any era.

• Even the advertising agency hasn’t changed-Da Cunha and FCB Ulka, have played a

pivotal role in the growth.

• Their strategy of umbrella-branding has also helped establish their brand firmly in

people’s minds.

• This, despite the fact that they do not spend more than 1% of their turnover for

marketing, compared with 7-8% (spent) by most of the food and consumer product

companies.

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Amul - Business Model

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ADVERTISEMEMT

RAW MILK

DriedSkimmed

Milk Powder

Packaged Milk

Ice creamBeverages

Condensed

GheeButterCream

pasteurization

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CHAPTER 4

SWOT ANALYSIS

SWOT Analysis

Strengths

• Largest food brand in India

• High Quality, Low Price

• World's Largest Pouched Milk Brand

• Annual turnover of US $1504 million

• Highly Diverse Product Mix

• Robust Distribution Network

• Technical manpower

• Demand margins

• Risks of highly complex supply chain system

• Strong dependency on weak infrastructure

• Alliance with third parties who do not belong to the organized sector

• Problem in distribution

• Perishability

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Opportunities

• Penetrate international markets

• Diversify product portfolio to enter new product categories and expand existing

categories like processed foods, chocolates etc

• Flexibility in market

Threats

• Competitors - Hindustan Lever, Nestle and Britannia

• Still competition from MNCs in butter

• Growing price of milk and milk products

• Ban on export of milk powder

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CHAPTER 5

LEARINGS

It was a great opportunity to carry a research project on such a reputed organization

which gave me a good learning experience and knowledge about the products and

industry.

Another very crucial area that needs mention is the experience I gained while talking to

and interacting with people. This has been a truly enriching experience because

interacting with people with varied profile helped in enriching my communication skills

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MY FINDINGS

Lack of Awareness in consumers. Many people are not know about Amul

chocolates specially children and teenagers.

As I found that the main product of Amul is Milk and company firstly wants to

capture maximum market share in milk market which is approx. 66%, after it Amul

is concentrating upon butter & cheese which has market share of approx. 88%, so it

is not concentrating upon chocolates.

There is lack of Sales Promotional Activities i.e. free tattoo, extra weight, toys,

quiz contest etc.

Cadbury is main competitor and strategically better performer then Amul.

I find the main thing is that “Amul” brand name has very good image in

consumer’s mind and they consider it as Pure & Good Product.

People who have tasted Amul Chocolate are not ready to purchase the same again.

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SUGGESTIONS

First and foremost Amul should take proper action in order to improve service,

because although being on a top slot in Butter and milk supplies it does not get

the sales in chocolate, which it should get.

Company should use brand ambassador which attracts each age segment i.e.

Saniya Mirza, Shaktimaan, Amitabh Bacchan, Superman, Krrish, Jadoo etc.

Amul should give local advertisements apart from the advertisements given at the

national level. Local advertisement must mention the exclusive Amul shops of the

city.

Try and change the perception of the people through word of mouth about Amul

in advertisements, because they are the best source to reach Children and families.

Though Amul chocolate advertisements are rarely shown on television yet many

people could recall it as per the data of research. It shows that there is only need

to give advertisement only to rememorize customers. Because Amul is very

strong brand name.

Company should launch chocolate in new attractive packing to change image of

Amul chocolate in consumers mind.

Company should introduce sales promotion schemes like free weight, pranky,

tattoo, contest, free gifts etc.

Advertisement can be done with the help of animations that attracts children and

teenagers because chocolates are consumed largely in this segment.

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CONCLUSION

As we know that Amul is very big organization and market leader in dairy products. It

has maximum market share in Milk, Butter and Cheese, which are its main/core products.

As we know Amul is a co-operative organization but chocolate industry is a profitable

industry we can’t ignore it. With the help of research, company can find out its week

points in chocolate product and can increase its market share through rectify mistakes.

People have believed in Amul’s product and they will accept its chocolates also if

effective actions were taken.

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BIBLIOGRAPHY

1. www.amul.com

2. www.amuldairy.com

3. www.google.com

4. www.dairy.com

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