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`
PROJECT REPORT ON
A Study on Potential of Amul Milk in Raipur City
This study was conducted from 16th June 11 to 15th August 11
AtGujarat Co-operative Milk Marketing Federation
Ltd.
BY:BALLABH CHANDAK
BBM
OF
A report submitted in partial fulfillment of therequirements of Bachelor Of Business Management (BBM)
(2011-12)
Company Guide: Faculty Guide:Mr. Venkat Ram Prof. SonaliMalewar
MANAGER FACULTY OFMARKETINGOF GCMMF LTD MATSUNIVERSITYRaipur (Depot)
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INDEX
S.NO
.
CONTENTS PAGE
NO.
1 ACKNOWLEDGEMENT 4
2 DECLARATION 5
3 CERTIFICATE BY GUIDE 6
4 INTRODUCTION TO THE PROJECT 8
5 EXECUTIVE SUMMARY 10
6 INDUSTRY PROFILE 11
7 CHAPTER 1- INTRODUCTION AND 15
HISTORY OF THE COMPANY
8 CHAPTER-2 OBJECTIVE AND SCOPE 33
9 CHAPTER-3 RESEARCH METHODOLOGY 34
10 CHAPTER-4 DATA ANALYSIS AND 36INTERPRETATION
11 CHAPTER-5 LIMITATIONS 47
12 CHAPTER-6 FINDINGS 48
13 CHAPTER-7 SUGGESTIONS AND 49
RECOMMENDATIONS
14 CHAPTER-8 CONCLUSION 50
15 ANNEXURE 51
16 PRODUCT PROFILE 5417 BIBILOGRAPHY 67
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ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for AMULGUJRAT CO-OPERATIVE MILK MARKETING FEDERFATION. It has beenan enriching experience for me to undergo my summer training at AMUL, whichwould not have possible without the goodwill and support of the people around. As astudent of MATS SCHOOL OF MANAGEMENT STUDIES & RESEARCH,RAIPUR I would like to express my sincere thanks too all those who helped meduring my practical training programme.
Words are insufficient to express my gratitude toward Mr. Venkat Ram, the Depot
In-charge of AMUL Raipur. I would like to give my heartily thanks to Mr. B.Rohit who helped me at every step whenever needed.
At last but not least my grateful thanks is also extended to Mr. B. JOHN (DirectorMATS SCHOOL OF MANAGEMENT STUDIES & RESEARCH, Raipur) andmy thanks to all my faculty members for the proper guidance and assistance extended
by them. I am also grateful to my parents, friends, to encourage & giving me moralsupport.
However, I accept the sole responsibility for any possible error of omission and
would be extremely grateful to the readers of this project report if they bring suchmistakes to my notice.
Date: 4st September 2011
Place: Raipur
Duration: 16th June to 15th August, 2011
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DECLARATION
This is to certify that the project report entitled A Study on thePotential of Amul Milk in Raipur city is done by me is an authenticwork carried out for the partial fulfillment of the requirements for theaward of the degree of Bachelor of Business Management under theguidance ofMrs. Sonali Malewar . The matter embodied in this project
work has not been submitted earlier for award of any degree or diplomato the best of my knowledge and belief.
Signature :Name : BALLABH CHANDAKRoll No. : MU09BBM011
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CERTIFICATE BY THE GUIDE
This is to certify that the project work entitled To study on thePotential of Amul Milk in Raipur City, atGUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD. forRaipur Depot submitted in the partial fulfillment of the degree ofBachelor of Business Management to the MATS, Raipur , is done byMr. BALLABH CHANDAK, Roll No. MU09BBM011 , is and is anauthentic work carried out by him at MATS School of Management
Studies & Research Raipur under my guidance.The matter embodied in this project work has not been submitted earlier
for award of any degree or diploma to the best of my knowledge andbelief.
Signature of the Student: Signature of the Guide
Name of the faculty guide:Prof. Sonali Malewar
Designation:Department of Marketing
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INTRODUCTION TO THE PROJECT
1.1 CONTEXT OF THE TOPIC
The dairy industries companies run mainly on the factors such as availability, service
frequency, affordability, taste and marketing. Availability is plays a vital role
because purchasing power is depend upon availability of that product, in case
distributors and retailers service matter a lot.
A retailer or retail store is any business enterprises whose sales volume comes
primarily from retailing.
Market Potential is basically the maximum number of consumers available is
usually determined by market research, but it may sometimes be calculated from
demographic data or government statistics. Ultimately there are, of course, limitations
on the number of consumers. For guidance one can look to the numbers who use
similar products.
Finally the whole study of the research work, is the grip of the product in the market
is very strong . Amul has developed its name as a huge brand in the market and thecompany had successfully gained the trust of the consumers by providing the best
quality product and services.
Promotion Tool Used
The consumer promotion tools mean the promotion activities, which are beneficial
for consumers as well as company. Such as price discounts, samples, cash refund,
premiums, prizes, cross promotion and coupons etc. We decided to use discount
coupons. We distributed it among customers and validity kept seven days from
issued.
The consumers are seduced to buy the product.
It helped to increase sales volume.
Consumer can get good quality of good in cheaper price.
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It can attract the new consumers and customers buying other milk
brands.
Attract brand switchers, who are primarily looking for low price,
good value or premiums.
Turn switcher to loyal users,
It induced to make some subsequent purchases.
Give vital permanent gain in market share.
1.2 Need of Study
Managers are always curious about the position of their companys products in the
market which largely depend upon the companys goodwill, and the position of their
brand. In order to maximize the sale and profit, company must deliver outstanding
satisfaction to the retailers. So market survey of retailers, chart out the position of the
company as compared to the competitors. It helps the organization to find out the
brand being sold most by the retailers along with their stocking and also consumer
buying preferences.
1.3 Statement of The Problem
A STUDY ON POTENTIAL OF AMUL MILK IN RAIPUR CITY
It helps to determine Potential level which can be used to influence large number of
retailers so as to increase the sales of the Amul milk effectively.
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EXECUTIVE SUMMARY
I BALLABH CHANDAK felt privileged to be a part of MATSSchool of Management Studies & Research , RAIPUR. I did mysummer internship training in Gujarat Cooperative Milk MarketingFederation Ltd a FMCG sector company under the brand nameAMUL. My project title is the A Study on Potential of AmulMilkin Raipur city. The project basic objectives are to estimate demand of
Amul Milk and promoting Amul milk in Raipur at the same time.
In todays competitive world while entering in the market it is very
necessary to have good knowledge of the potential of a particular market.
The information regarding the activities of competitors existing in the
market so that we can plan our each activity according to that. Also it is
necessary to retain the existing customers apart from attracting the new
customers.
The Project is concern with to determine the Potential level of Amul
dairy milk in Raipur city. The project included as part of BBM
Programme and the project is done from June to August.
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INDUSTRY PROFILE
Dairy is a place where handling of milk and milk products is done and technology
refers to the application of scientific knowledge for practical purposes. Dairy
technology has been defined as that branch of dairy science, which deals with the
processing of milk and the manufacture of milk products on an industrial scale.
The dairy sector in the India has shown remarkable development in the past decade
and India has now become one of the largest producers of milk and value-added milk
products in the world.
The dairy sector has developed through co-operatives in many parts of the State.
During 1997-98, the State had 60 milk processing plants with an aggregate processing
capacity of 5.8 million litres per day. In addition to these processing plants, 123
Government and 33 co-operatives milk chilling centers operate in the State.
Also India today is the lowest cost producer of per litre of milk in the world, at 27
cents, compared with the U.S' 63 cents, and Japans $2.8 dollars. Also to take
advantage of this lowest cost of milk production and increasing production in the
country multinational companies are planning to expand their activities here. Some of
these milk producers have already obtained quality standard certificates from the
authorities. This will help them in marketing their products in foreign countries in
processed form.
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Milk Production from 1950 to 2020
1950 17 million tonnes
1996 70.8 million tonnes
1997 74.3 million tonnes
(Projected) 2020 240 million tonnes
Expected to reach- 220 to 250 mt 2020
India contributes to world milk production rise from 12-15 % & it will increase up to30-35% (year 2020)
World's MajorMilkProducers (Million MTs)
Country2008-09 2009-10 (Approx.)
India 110 110.6
Brazil 75 77
Russia 34 33
Germany 27 27
France 24 24
Pakistan 21 22
USA 71 71
UK 14 14
Ukraine 15 14
Poland 12 12
New Zealand 11 12
Netherlands 11 11
Italy 10 10
Australia 9 10
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Research and Development in Dairy Industry :
The research and development need to the dairy industry to develop and
survives for long time with better status. The various institute and milk dairy
companies R&D results provide base for todays industry growth and development.
The research and development of products of dairy, like yogurt and cheese market
research and company reports provides insights into product and market trends,
analysis opportunities, sales and marketing strategies will help local milk
unions to develop and spread world wide through obtaining this knowledge. Specific
on market share, segmentation, size and growth in the US and global markets are also
helps industry to expand its market worldwide even small union also.
Development ofFood Processing Industry :
The food processing industry sector in India is one of the largest in terms of
production, consumption, export and growth prospects. The government of accorded
it is a high priority, with a number of fiscal relieves and incentives, to encourage
commercialization and value addition to agriculture produce, for minimizing harvest
wastage, generating employment and export growth.
Food processing industry is providing backbone support to the milk industry.
The development food products by using milk can give good market opportunities to
produces milk.
Products and Industry Status:
Among the products manufactured by organized sector are Ghee, Butter,
Cheese, Ice-Creames, Milk powders, Melted milk food, Infant food, condensed milk
etc.. some milk products like Casein and Lactose are also being manufactured lately.
Therefore, there is good scope for manufacturing these products locally.
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Liberalization of the economy has led to a flood of new entrants, including MNCs
due to good prospects and abundant supply.
Production of Milk in India:
The facts and figures here shown are calculated on the basis of percentage increasespear year.
Year Production in million MT
1993-94 61.2
1994-95 63.5
1995-96 65.0
1996-97 68.0
1997-98 71.0
1998-99 74.5
1999-00 78.0
2000-01 81.512001-02 85.17
2002-03 89.0
2003-04 93.0
2004-05 97.65
2005-06 102.45
2006-07 103.0
2007-08 104.8
2008-09 110.0
2009-10 110.6
Major Indian and Overseas Players in the Food industry are:
Hindustan Uni LeverLimited
Perfetti India Ltd.
MTR foods limited Cadbury India Ltd.
Godrej industries Limited PepsiCo India Holdings
Amul Nestle India Pvt. Ltd.
Dabur India Ltd. Britannia Industries Ltd. ITC Limited Parle Products Pvt. Ltd.
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Agro Tech Foods
Chapter 1
INTRODUCTION AND HISTORY OF COMPANY
INTRODUCTION
In the year1946 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.
Today Amul is a symbol of many things like of the high-quality products sold at
reasonable prices, of the genesis of a vast co-operative network, of the triumph of
indigenous technology, of the marketing savvy of a farmers' organization. And have a
proven model for dairy development (Generally known as ANAND PATTERN).
In the early 40s, the main sources of earning for the farmers of Kaira district
were farming and selling of milk. That time there was high demand for milk in
Bombay. The main supplier of the milk was Polson dairy limited, which was a
privately owned company and held monopoly over the supply of milk at Bombay
from the Kaira district. This system leads to exploitation of poor and illiterates
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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.
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These village societies would collect the milk themselves and would decide the prices
at which they can sell the milk. The district union was also form to collect the milk
from such village co-operative societies and to sell them. It was also resolved that the
Government should be asked to buy milk from the union.
However, the govt. did not seem to help farmers by any means. It gave the
negative response by turning down the demand for the milk. To respond to this action
of govt., the farmers ofKaira 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-operativeunions 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.
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At the initial stage only 250 litres of milk was collected everyday. But with
the growing awareness of the benefits of the cooperativeness, the collection of milk
increased. Today Amul collect 9.10 million litres 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 centres in various
villages. Milk is collected from almost 11962 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.RajendraPrasad, 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.
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ACHIEVEMENTS:
Amul : Asias largest dairy co-operative was created way back in1946 to
make the milk producer self-reliant and conduct milk- business with pride. Amul has
always been the trend setter in bringing and adapting the most modern technology todoor steps to rural farmers.
Amul created history in following areas:
a) First self motivated and autonomous farmers organization comprising of
more than 5000000 marginal milk producers of Kaira District.
b) Created Dairy co-operatives at village level functioning with milk
collection centres owned by them.
c) Computerized milk collection system with electronic scale and
computerized accounting system.
d) The first and only organization in world to get ISO 9000 standard for its
farmers co-operatives.
e) First to produce milk from powder from surplus milk.
Amul is the live example of how co-operation amongst the poor marginal
farmers can provide means for the socio-economic development of the under
privileged marginal farmers.
f)AMUL is the world`s largest pouched milk brand.
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g) AMUL is the world`s largest vegetarian cheese brand
h) CRISIL has assigned its highest ratings of AAA to the various bank
facilities of GCMMF
AWARDS:
Amul a co-operative society and its co-operation has led many
different awards in its favor.
Magsaysay award for community leadership presented in manila,
Philippines to Shri Tribhuvandas Patel, Shri D N Khurody and Shri V. Kurien
1964: Padmabhusan award given to Shri T.K. Patel
1965: Padmshri awarded was given to V. Kurien, general manager,
by the president of India
1987: Best Productivity awarded by national productivity council
for the year 1985-86 awarded to Amul dairy.
1988: Best Productivity awarded for the second successive year 1986-87
by the president of India, Mr. R. Venkatrao to kaira union.
1993: ICA Memenoto towards genuine and self sustaining co-
operative worldwide ICA regional office for Asia and pacific, New Delhi,
1996.
1999: G.B.Birla award.
Moreover the Amul union has achieved the prestigious ISO 9001-
2000 and HACCP Certificate and effects are got to obtain ISO 14000.
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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), Indias 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 9,774 crore last fiscal. Its products include
pouch milk, ultra heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk.
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.
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Amul has been able to:
Produce an appropriate blend of the policy makers farmers
board of management and the professionals: each group appreciating
its rotes and limitations,
Bring at the command of the rural milk producers the best of
the technology and harness its fruit for betterment.
Provide a support system to the milk producers without
disturbing their agro-economic systems,
Plough back the profits, by prudent use of men, material and
machines, in the rural sector for the common good and betterment of
the member producers and
The Union looks after policy formulation, processing and marketing of
milk, provision of technical inputs to enhance milk yield of animals, the artificial
insemination service, veterinary care, better feeds and the like - all through the village
societies. Basically the union and cooperation of people brought Amul into fame i.e.
AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE
OF INDIA.
GCMMF Overview:
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GCMMF is the Indias largest food products marketing organization. It is a state level
apex body of milk co-operatives in Gujarat, which aims to provide remunerative
returns to the farmers and also serves the interest of consumers by providing quality
products, which are good value for money.
VISION
The vision of AMUL is as follows:
To serve the interests of the milk producers
To provide quality products that offer the best value to
consumers for money spent.
SALES TURNOVER
Sales turnover of GCMMF
Year Rs. (in millions)
1995-96 13790
1996-97 15540
1997-98 18840
1998-99 22192
1999-00 22185
2000-01 22588
2001-02 23365
2002-03 27457
2003-04 28941
2004-05 29225
2005-06 37740
2006-07 42770
2007-08 54201
2008-09 67110
2009-10 80050
AREAS OF OPERATIONS
Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA,
Bangladesh, Australia, China, Singapore, Hong Kong and a few South
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African nations. Other potential markets being considered include Sri
Lanka.
SOME FACTS:Annual Revenues : $1.33 billion USD
Members : 13 district cooperative milk producers` union
No of Employees :2.7 million
No of village societies :11962
Total Milk handling capacity : 10.21 million liters per day
Annual Milk Collection : 2.69 billion liters
Daily Milk Collection : 7.4 million liters
Milk Drying Capacity : 626 Mts. Per day
Cattle feed Manufacturing Capacity : 3090 Mts. Per day
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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.
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Thirdplant 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.
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LOGISTICS
GCMMFS SUPPLY CHAIN
AMUL has the largest cold chain network in India (i.e. 18000 refrigerators) ascompared to any other company. The chemical components of milk are water, SNFand solids. Milk is very perishable product so it has to be consumed within 24 hours.In order to avoid wastage AMUL converts the milk in to SNF and milk solids byevaporating the water, which comprises up to 60-70% of milk contents. This is
possible only if the distribution channel right from the producer to the consumer is
well organized. It will be surprising to know that AMUL makes even the Sarpanchto eat pizza i.e. it supplies pizzas even to rural market.
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Last year, they are divided the retail market into 14 specific segments to achievefurther distribution efficiency. This year our focus was on inducting distributorshaving expertise in servicing such
specific market segments. This initiative is yielding results by way of ensuring wideravailability of our product range.
The role of distributors in our business process has never been more diverse or moreimportant, as it is today. As a matter of fact, we consider our Distributor to be the realMarketing Manager of our organization. To enhance business performance of ourDistributors, a workshop on Marketing and Sales Management was designed incollaboration with a premier business school. The objective of the entire initiativewas to upgrade the knowledge of our Distributors in terms of contemporary BusinessManagement Practices, so that they can perform well not only as our business partner
but also as Marketing Managers. During the year, 659 Distributors have undergonethis programme in 39 locations. Cold Storage is an extremely essential component inthe Federations distribution process.
Unfortunately, availability of efficient cold storage facilities is grossly inadequatein our country. To cope up with the increasing need of suitable cold stores closer toour markets, we have continued our endeavor of creating the Federations own coldstores this year in various locations across the country. We now own 24 state of theart cold rooms of different sizes.
PRODUCT PROFILE:-
S.No. NAME TYPE FAT SOLID NATURAL
FATS
1. Tazaa Toned Milk 3.0% min. 8.5% min.
2. Slim &
Trim
Double Toned Milk 1.5% min. 9% min.
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3. Gold Full Cream Milk 6% min. 9% min.
COMPETITORS PROFILE
Sanchi :-
The brand Sanchi is owned by the Raipur Dugdh Sangh and the brand sells 18-20thousand liters of milk everyday and provides good margin to the retailers . Recentlythe Brand Sanchi is being acquired by the C.G. State Co-operative milk marketingfederation limited and the name Deobhog Dugdh will replace Sanchi.
Dinshaws :-
Dinshaws is the third highest pouch milk selling brand in Chhattisgarh and sells 10-11 thousand liters of milk everyday. Dinshaws is becoming one of the most
preferred brand after amul and will soon capture more market share than sanchi.
Apna :-
Apna is a local brand pouch milk of Chhattisgarh . Apna is a small player of themarket which is growing but with very slow speed the brand sells 3-4 thousand litersof milk everyday.
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ORGANIZATION STRUCTURE
Organization Structure is divided into two parts:
External Organization Structure
Internal Organization Structure
External Organization Structure
External Organization Structure is the organization structure that affects the
organization from the out side.
State Level Marketing Federation
District Milk Product Union Ltd.
Village Milk Product Union Ltd.
Villagers
As we know, GCMMF is unit of Gujarat Milk Marketing Federation, which is
a co-operative organization. The villagers of more than 10000 villages of
Gujarat are the bases of this structure. They all make village milk producers
union, district level milk producers union and then a state level marketing
federation is established. The structure is line relationship, which provides
easy way to operation. It also provides better communication between two
stages.
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Internal Organization Structure:
The following is internal organization chart of Amul:
Organization Structure Chart
Chairman
Managing Director
General Manager
Asst. General Manager
Finance Production Marketing Sales & Purchase PersonnelDept. Dept. Dept. Dept. Dept.
A systematic & well-defined organizational structure plays a vital role &
provides accurate information to the top-level management. An organization
structure defines a clear-cut line of authorities & responsibilities among the
employees of GCMMF. The Organization structure of Amul is well-arranged
structure. At a glance a person can completely come to know about the
organization structure.
Amul is leaded by the director under him five branches viz. Factory,
Marketing, Accounts, Purchase, Human Resources Department.
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Factory department has a separate general manager under him there are six
braches viz. Production, Stores, Distribution, Cold Storage, Quality, and
Deep-freezing. This department takes care of the factory work.
Marketing department has regional senior marketing manager and under him
there is a regional manager. This department takes care of the marketing
aspects of Amul.
Accounts department takes care regarding accounts i.e. day-to-day work.
Under the accountant there is one clerk.
Purchase department takes care regarding the purchase of raw materials and
many other things.
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Chapter 2OBJECTIVE AND SCOPE
1. OBJECTIVES OF THE REPORT
The main objective of the Study can be listed as follows
A.PRIMARY OBJECTIVE
1. To find size of retail network of Amul Taaza , Amul Gold and Amul Slim
n Trim in specific areas of Raipur city or Potential level of Amul Milk in
Raipur city.2. To find the problems faced by retailers in selling and storing.
3. To collect the information about the competitors
B.SECONDARY OBJECTIVE
1. To organize sale promotional activities to improve milk sales.
2. To generate and secure consumer awareness.
2. SCOPE OF PROJECT
The study carried out in Raipur city so its scope is mainly limited to Raipur city.
It gives information about the size of the retail network.
It gives information about the services given by distributor to their
retailer. It gives information about the competitors products.
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It will serve consumer in better manner.
It provides suggestions to the company to improve their products sales.
It gives information about the sales promotion activities to improve the
milk sale.
Chapter 3
RESEARCH METHODOLOGY
RESEARCH DESIGN FOLLOWED
Descriptive Research is the research method used because descriptive studies
embrace a large proportion of market research. The purpose is to provide an accurate
snapshot of some aspect of the market environment. Descriptive research is more
rigid than exploratory research and seeks to describe users of a product, determine the
proportion of the population that uses a product, or predict future demand for a
product. As opposed to exploratory research, descriptive research should define
questions, people surveyed, and the method of analysis prior to beginning data
collection. In other words, who, what, where, when, why, and how aspects of the
research should be defined.
SAMPLING:-
SAMPLING TECHNIQUE USED
In this project the technique of sampling used was Judgment sampling. Judgment
sampling involves the choice of subjects who are most advantageously placed or in
the best position to provide the information required.
SAMPLE UNIT
In this project case sample were the retailers in Raipur region & the aim was to
know the Potential level of Amul milk and the competitors present in the market.
SAMPLE SIZE: 269 Retailers.
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DATA COLLECTION TECHNIQUES
SOURCES OF DATA
PRIMARY DATA
To collect primary data from Retailers Questionnaires were used. Questionnaire was
prepared very carefully so that it may prove to be effective in collecting the right
information.
SECONDARY DATA
Secondary data collected from different website. This secondary data formed the
conceptual background for the project. This secondary data was compared with the
primary data collected in area.
RESEARCH INSTRUMENT
The research instrument used in the project was Questionnaire to collect primary
information, it provided flexibility by using more close ended and few open ended
questions.
METHOD OF DATA COLLECTION
Information was collected by personally contacting retailers through interviews.
ANALYSIS AND STATISTICAL TECHNIQUE USED
Types of data analysis techniques used in the project:
- Tabular analysis.
- Graphical analysis.
- Percentage analysis.
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Chapter 4
DATA ANALYSIS AND INTERPRETATION
1) Number of retailers stocking Amul milk.
Yes
80%
No
20%
Yes
No
INTERPRETATION:
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Answer No. of
respondents
Percentage
Yes 214 80%
No 55 20%
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The above graph indicates that 4/5th of the retailers are selling Amul milk or
there is 20% Potential level of Amul Milk in Retail stores of Raipur city.
It shows that Amul milk brand is popular among the retailers.
2) Sizes of Amul milk packets retailers preferred to store.
(Out of 269 retailers only 214 were buying Amul milk.).)
107
214
5
0
0 50 100 150 200 250
200ml
500 ml
1 Ltr
5 Ltr
Amul Milk Packets Available
No. of respondents
INTERPRETATION:
MATS SCHOOL OF MANAGEMENT STUDIES & RESEARCH
Amul milk
packets
No. of
respondents
200ml 107
500 ml 214
1 Ltr 5
5 Ltr 0
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The above graph shows that most of the retailers preferred to stored 500 ml
and 200 ml pouch of Amul milk as per the customer demand.
In case of 5 Ltr. Pouch there was no customers demand.
1 Ltr. pouches were available in 5 outlets as per the customer demand.
3) Reasons for Amul milk not stored by retailers.
(Out of 269 retailers 55 were not buying Amul milk.)
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AnswerNo. of
respondents
Absence of packaging date 6
Low margin 30
No replacement for leakage 9
No distribution 10
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6
30
9
10
0 5 10 15 20 25 30 35
Absence of packaging
date
Low margin
No replacement forleakage
No distribution
No. of respondents
INTERPRETATION:
From above graph it is clear that half of the retailers were not satisfied with
margin policy.
Some retailers responded about absence of packaging date.
Very less retailers complained about distribution network.
Some retailers also responded about the no replacement policy of amul.
4) Preference of retailers to milk brand.
MATS SCHOOL OF MANAGEMENT STUDIES & RESEARCH
BRANDS RESPONDENTS
Amul214
Sanchi27
Dinshaws15
Apna5
Others8
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.
214
27
15
5
8
0 50 100 150 200 250
Amul
Sanchi
Dinshaw'
s
Apna
Others
RESPODENTS
INTERPRETATION:
The above graph shows that the Amul is most preferable brand in all.
Some retailers also prefers Sanchi and others brands.
5) Sources from where retailers get Amul milk
(Out of 269 retailers 214 were buying Amul milk.)
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Answer No. of
respondents
Percentage
Distributors 20395 %
Other suppliers 11 5 %
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INTERPRETATION:
Almost all retailers said that they purchased milk from Amul distributors.
6) Retailers satisfaction with Amul distributor.
(Out of 269 retailers 214 were buying Amul milk.).)
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Answer No. of
respondents
Percentage
Yes 154 72 %
No 60 28 %
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Yes
72%
No28%
Yes
No
INTERPRETATION:
Graph shows that most of the retailers were satisfied with the service
provided by the Amul distributors.
7) Awareness among retailers about different Sales Promotional activities for
Amul Milk.
(Out of 269 retailers only 214 were buying Amul milk.)
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44 25 0
201 203
125
170 189 214
13 1189
050
100
150
200
250
Aware Not aware
INTERPRETATION:
The graph shows that retailers were un-aware about the sales promotion
activity that Amul carried out, but some respondents were aware about various
activities.
Most of the retailers were aware about advertisement and coupons scheme
during festivals.
Credit facility and free samples were not provided to single retailers.
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Activities Aware Not aware
Price off 44 170
Free samples 25 189
Credit facility 0 214
Advertisement 201 13
P-O-P Displays 203 11
Coupons 125 89
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8) Consumers remarks for Amul milk.
(Out of 269 retailers 214 were buying Amul milk.)
214
125
196
0 50 100 150 200 250
Good quality
Clear packaging date
Availability
RESPODENTS
INTERPRETATION:
The question asked to the retailers where the Amul milk is being sale, and
tried to collect feedback of customers about Amul milk.
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ATTRIBUTE RESPONDENTS
Good quality 214
Clear packaging date 125
Availability 196
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Few of the customers were having complaints about the clear date of
packaging and availability.
Customers were happy with quality of milk.
9) Ratings from retailers for attributes of Amul milk.
(Out of 269 retailers only 214 were questioned as they buying Amul milk.)
Attribute
Rating QualityBrand
imageAvailability Packaging Margin
Very good 147 169 112 74 0
Good 41 31 49 86 0
Average 21 14 13 21 0
Bad 5 0 40 33 0
Very bad 0 0 0 0 214
Total 214 214 214 214 214
147169
112
74
0
41
31
49
86
0
2114
13 21
0
5 0
40 33
0
0 0 0 0
214
0
50
100
150
200
250
Quality Brand image Availability Packaging Margin
Very bad
Bad
Average
Good
Very good
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INTERPRETATION:From the above graph it can be concluded that
QUALITY: Most of the retailers were satisfied with Amul milk quality.
BRAND IMAGE: The graph shows that Amul is having good brand image.
AVAILABILITY: Most of the retailers were not satisfied with the Amulmilk distribution.
PACKAGING DATE: Most of the retailers were not satisfied about notprinting of packaging date and they were facing a problem regarding same.
MARGIN: All retailers were not satisfied with the margin policy given byAmul.
DATA ANALYSIS FOR SALES PROMOTION ACTIVITY
We carried sales promotion activity at places of Raipur city
1. Tagore Nagar
2. Rajendra Nagar
3. Mahavir Nagar
4. Shyam Nagar
5. Budha Para
6. Sunder Nagar
Store name Sales(Packets)
Taaza Gold Slim N Trim Curd
Om Provision 100 10 0 15
Jai Mata Di 60 0 10 20
Shri Sai Provision 80 0 0 20
Kalavati Provision 60 5 10 10
Novelty Fancy 80 20 20
Rajendra Provision 240 50 40 35
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INTERPRETATION:The researcher got same (trend) data and same response from the consumers for the
areas. So I come out with following observation and results
In case of jai mata di and kalavati provision retail outlet they were not
interested in Amul milk selling but now they are selling 60 packets of milk
daily. And they said if response will remain same they will increase milk
order.
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Chapter 5
LIMITATIONS OF THE RESEARCH
The survey is limited only for 25 wards.
Time period of the project was 8 weeks, which may not be enough tounderstand the whole market.
Sample size (269) of project was too small as compare to total area covered.
Respondent hesitate to give true response to question.
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Chapter 6
FINDINGS OF THE RESEARCH
The main findings are as follows:
Amul has the highest share in liquid milk market of Raipur.
Keeping the population of Raipur in mind brand awareness for amul milk is
very high, and the minimum per capita consumption of milk is 250 ml.
The potential of the pouch milk in Raipur city is 2,50,000 litres per day.
Amul sales 70,000 liters of pouch milk and all the other brands sale 30,000
liters of milk per day so the remaining 1,50,000 litres is the potential of amul.
The USP of the Amul Milk is Quality and Brand image.
Word of Mouth is found to be the most effective tools of the marketing.
The percentage of customers reliability is very high in the product.
Due to goodwill the distributors are interested to work with the company.
It was found that the retailers stock more than the demand of the product in
the morning hours, so that the product can be available for the consumer the
whole day.
All retailers get Amul milk from company selected distributors.
Inspite of delays in the supply of the product some or the either day the
consumers were consuming amul milk only, because it provides the best
quality product.
All retailers were familiar with sales promotion activities undertaken by
Amul.
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Retailers are interested in selling amul milk but at the same time are not that
much happy with the margin provided by amul . but they selling amul milk
because there is consumer pool for amul milk.
Company avails the product at the retail point according to the demand of
retailers for the evening hours in the peak seasons too.
Retailers are in doubt that they will get amul milk on time or not because the
amul milk comes from Nagpur so there can be any happening on the transit.
Chapter 7
SUGGESTIONS AND RECOMMENDATIONS
The main Suggestions and Recommendations are as follows:
The remaining potential level which is 150,000 litres can be covered by the
company by expansion of the market so that the new developing colonies and
the upcoming new Raipur area. can be covered.
Milk purchasing decisions are more decided by women rather than male,
because she act as a invigilator, execute her decision and influence the same to
the purchase while ascertaining the quality, freshness and price. Hence, I
suggest GCMMF to concentrate more on the women and men suggestions for
designing the marketing strategy, because womens role in the house is
dominant, even in the various decisions.
Occupation of the user influences the purchase decisions. The particular
occupation plays a vital role in deciding the product or services. Women
segment are influencing more on milk. Therefore, an occupation is the factor
influencing the product.
Income of the people decides the purchasing power. The high income prefers
to purchase product with the quality, freshness, thickness, etc. and vice versa.
So I suggest Amul to concentrate also on low income segment to capture
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market and position themselves in the minds of the customer with required
quantity and quality milk.
Since Amul is having loyal customers and therefore should concentrate more
on this factor through various potential programmes such as campaign,
premium packs, offers etc., this helps to increase the loyalty towards the Amul
products.
Customer is influential, hence I suggest Amul to look after the dealers issue
with due care.
The retailers are the main linkage between the company and the consumers so
the company must also keep in mind the requirements of the retailers as well
as the consumers too.
Chapter 8
CONCLUSION
From the survey conducted it is observed that Amul milk has a good market
share.From the study conducted the following conclusions can be drawn. In order
the dreams comes into reality and for turning liabilities into assets one must
have to meet the needs of the customers.
The factors considered by the customer before purchasing milk are freshness,
taste, thickness and availability.
Finally I conclude that, majority of the customers are satisfied with the Amul
milk and Milk products because of its good quality, reputation, easyavailabilities , if slight modification in the marketing programme such as
dealers and outlets, promotion programmers, product lines etc., definitely
company can be as a monopoly.
Amul has also to take care of its competitors into consideration and more importantlyits customers before making any move.
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ANNEXURE
QUESTIONNAIRE
(Retailer Survey)
Name of the shop: __________________________________________________
Retailer Name: ____________________________________________________
Address: __________________________________________________________
1) Do you stock Amul milk?
a) Yes
b) No
2) If yes, what is the size of Amul milk packets do you preferred to store?
a) 200 ml
b) 500 ml
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c) 1 Ltr
d) 5 Ltr.
3) If No, Why?
a. Absence of packaging date
b. Low margin
c. No replacement for leakage
d. Low distribution
4) Which is the most preferable brand of packaged milk that you stock?
Amul
Sanchi
Dinshaws
Apna
Others
5) From where do you get Amul milk?
a) Distributors
b) Other suppliers
6) Are you satisfied with Amul distributor?
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a) Yes
b) No
7) Do you know which Sales promotional activities does the company
undertake for Amul milk?
a) Price off d) Free samples
b) Credit facility e) Coupons
c) Advertisement f) P-O-P Displays
8) Are you interested in distribution of Amul milk?
a) Yes
b) No
9) What is consumers expectation from Amul milk?
a) Good quality
b) Packaging
c) Availability
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10) Give your ratings to following attributes of Amul milk.
Very good Good Average Bad
Very bad
a) Quality
b) Brand image
c) Availability
d) Packaging
e) Margin
AREA COVERED:
Tagore Nagar Rajendra Nagar
Mahavir Nagar Shyam Nagar
Budha Para Sunder Nagar
Pachpedi Naka Vallabh Nagar
Priyadarshni Colony ---
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PRODUCT PROFILE
Milk is the natures perfect food for all ages. It has almost all the vital nutrients
need for the growth and well being of human body. Milk is the richest
natural source of calcium and essential amino acids, which is good for
bone formation. It is particularly beneficial for people recovering from
sickness, for sportsmen, for old people, for pregnant women and for
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growing girls and boys. The doctor recommends a minimum daily
intake of 250 ml or more for every person.
Normal cow milk has 4% Fat and buffalo has 7% Fat. There is another important
constituent of milk is Solids Non Fat (SNF). This (or SNF as it is commonly called)
comprises of proteins, minerals, carbohydrates and vitamins. For mil to be
nutritionally balanced, it has to contain both Fat and Solids Not Fat in proportion.
The PFA act lays down standards of Fat and SNF for various types of milk, as
follows:
FAT SNF
1. Toned milk (Amul Taaza) 3.0% Min 8.5% Min
2. Full Cream Milk (Amul Gold) 6.0% Min 9.0% Min
3. Cow Milk (Amul Cow Milk) 3.5% Min 9.0% Min
Amul Milk is available in Raipur and surrounding areas in Toned, Full cream and
cow milk varieties. Amul Milk strictly confirms to PFA standards . In facts we keep
our standards higher so as to abundantly comply with the legal requirements and to
provide wholesome nutritive food to our consumers.
This means when you are buying Amul Milk you are sure to get the natures perfect
food for your family. You are sure to get your full 500 ml. in every pack. You are
sure of getting milk, which has longer life because of superior bacteriological quality
and state of art processing technology
The loose milk available from local vendors often does not confirm to PFA standards.
It often has less Fat and less Solid Non Fat then required. Remember that if your milk
contains 0.5% less Fat or SNF, you are paying up to one rupee per pouch extra.
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Besides, it is not uncommon to find artificial preservatives, which are not permitted
by law being added to loss milk.
If you are buying cheap loose milk or even pouch milk, think again! By
compromising on the quality of milk, you may be depriving your children of essential
life-building proteins and nutrients that only pure and high quality Amul Milk will
give.
AMUL PRODUCTS
AMUL TAAZA
Product DetailsProduct Name : Amul TaazaDescription Pasteurized Milk Amul milk meets the PFA standards forthe respective type of milk.Packing Poly Pack - 500ml, 1000ml, 200ml, 5 Ltr ** In selected markets onlyProduct SpecificationsComposition Fat (%) 3.0 min
SNF (%) *8.5 min
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Nutritional Information*
Serving Size : 200 mlAmount per : 100 ml
Energy : 58 kcalEnergy from FAT : 27 kcalTotal FAT : 3 gSaturated FAT : 1.9 gCholesterol : 8 mgTotal Carbohydrate : 4.7 gAdded Sugar : 0 gProtein : 3.1 gCalcium : 150 mgPhosphorus : 130 mgSodium : 50 mg Thiamine : 42.5 mcgRiboflavin : 120 mcgNiacin : 100 mcgFolic Acid : 7.5 mcgVit. A(Retinol) : 32 mcg*Approx. valuesShelf Life : 48 Hours from the date of packing if kept underrefrigeration below 8CStorage condition : Under Refrigeration (Below 8C)Product Features :
Amul Milk is the most hygenic liquid milk available in the market. Itis pasteurised in state-of-the-art processing plants and pouch-packed to make it conveniently available to consumers.Product ApplicationDirect consumption, Making of : Tea or Coffee, Sweets, Khoa, Curd,Buttermilk, Ghee
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AMUL GOLD
Product DetailsProduct Name : Amul GoldDescription : pasteurized milk Amul milk meets the PFAstandards for the respective type of milk.Packing : Poly Pack - 500ml, 1000ml, 5 Ltr ** In Selected markets onlyProduct SpecificationsComposition FAT(%) 6.0 min
SNF (%)* 9.0 min
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Nutritional Information*
Serving Size : 200 mlAmount per : 100 ml
Energy : 87 kcalEnergy from FAT : 54 kcal Total FAT : 6 gSaturated FAT : 3.7 gCholesterol : 16 mgTotal Carbohydrate : 5.0 gAdded Sugar : 0 gProtein : 3.3 gCalcium : 150 mgPhosphorus : 130 mgSodium : 50 mgThiamine : 42 mcgRiboflavin : 120 mcgNiacin : 100 mcgFolic Acid : 7.5 mcgVit. A(Retinol) : 65 mcg
*Approx. valuesShelf Life 48 Hours from the date of packing if kept underrefrigeration below 8CStorage condition Under Refrigeration (Below 8C)
Product FeaturesAmul Milk is the most hygenic liquid milk available in the market. Itis pasteurised in state-of-the-art processing plants and pouch-packed to make it conveniently available to consumers.Product ApplicationDirect consumption, Making of : Tea or Coffee, Sweets, Khoa, Curd,Buttermilk, Ghee
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AMUL SLIM N TRIM
Product Details
Product Name : Amul Slim and Trim Milk
Description : Skimmed Long Life Milk
Packing : 1000 ml
Product Specifications
Composition : Skimmed Milk, Vitamin A&D
Nutritional Information
Serving Size : 200ml
Serving per pack : 5
Energy : 70 Calories
Energy from fat : 1.5 calories
% Daily Value*
Total Fat, 0.2 g : 0.3
Saturated Fat, 0.1g : 0.6
Sodium 100 mg : 4.6
Total Carbohydrate 10 g : 3.3
Protein, 7g : 14
Calcium 300 mg : 61
Added Vitamin A : 500 IU
Added Vitamin D : 40 IU
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Not a significant source of Dietary fiber, Vitamin C & Iron.
*Percent daily Values (DV) are based on a 2000 calorie diet.
Shelf Life 180 days when stored in cool and dry place
Storage condition : Ambient
Product Features
Zero Cholestrol
Virtually zero bacteria
No need to boil
Cut open and drink
No need to refrigerate till open
Stays fresh for 2 days after opening if kept in refrigerator
No powder or water added
No preservative / chemical
Easy to carry and use while traveling
Tamper evident packing
Best quality milk from Gujarat
Product Application
Excellent for : People with Heart & Blood Pressure related
problems
Health & weight conscious People
People undergoing Fitness sessions.
Available in (Segments/Markets)
Amul Taaza is available in India as well as other country like UAE / Bahrain
/ Kuwait/ Oman / Hong Kong / Sri Lanka / USA / Malaysia / Singapore /
Qatar/ New Zealand
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Milk Drinks
Amul Kool Millk
Shaake
Amul Kool
Amul Kool Cafe Kool KokoA delight to Chocolate
Lovers. Delicious
Chocolate taste
Nutramul EnergyDrinkA drink for Kids - provides
energy to suit the needs ofgrowing Kids
Amul KoolChocolate Milk
Amul KoolFlavoured Bottled
Milk
Amul KoolFlavoured Tetra
Pack
Amul Masti Spiced
ButtermilkAmul introduces the Best
Thirst Quenching Drink
Amul Kool Thandai
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Powder Milk
Amul Spray InfantMilk FoodStill, Mother's Milk is Best
for your baby
Amul Instant FullCream Milk
Powder
A dairy in your home
Sagar Skimmed
Milk PowderWhich is especially useful
for diet preparations or
for use by people on low
calorie and high proteindiet.
Sagar Tea Coffee
Whitener
Amulya DairyWhitenerThe Richest, Purest Dairy
Whitener
Fresh Milk
Amul Fresh MilkThis is the most hygienic
milk available in the
market. Pasteurised in
state-of-the-art processing
plants and pouch-packed
for convenience.
Amul Gold Milk
Amul Taaza Double
Toned Milk
Amul Lite Slim
and Trim Milk
Amul Fresh Cream Amul ShaktiToned Milk
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The Taste of India
Cheese
Amul Pasteurised
Processed Cheese100% Vegetarian Cheesemade from microbial rennet
Amul Cheese Spreads
Tasty Cheese Spreads in 3great flavours..
Amul Emmental
CheeseThe Great Swiss Cheese from
Amul, has a sweet-dry flavour
and hazelnut aroma
Amul Pizza Mozzarella
CheesePizza cheese...makes great
tasting pizzas!
Gouda Cheese
For Cooking
Amul / Sagar PureGheeMade from fresh cream. Hastypical rich aroma and
granular texture. An ethnic
product made by dairies with
decades of experience.
Cooking Butter
Amul Malai Paneer
Ready to cook paneer to makeyour favourite recipes!
Utterly Delicious Pizza
Mithai MateSweetened Condensed Milk -
Free flowing and smooth
texture. White to creamy color
with a pleasant taste.
Masti Dahi
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The Taste of India
Desserts
Amul Ice CreamsPremium Ice Cream made invarious varieties and flavours
with dry fruits and nuts.
Amul ShrikhandA delicious treat, anytime.
Amul Mithaee GulabJamunsPure Khoya Gulab
Jamums...best served piping
hot.
Amul ChocolatesThe perfect gift for someone
you love.
Amul Lassee Amul Basundi
Health Drink
NutramulMalted Milk Food made
from malt extract has thehighest protein content
among all the brownbeverage powders sold in
India.
Amul ShaktiHealth Food DrinkAvailable in Kesar-Almond
and Chocolate flavours.
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BIBILOGRAPHY
Product Brochure
Personal interview of retailers
Marketing Management Philip Kotler
Periodical: Business World
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Websites:-
www.google.com
www.wikipedia.com
www.amul.com
http://www.google.com/http://www.wikipedia.com/http://www.amul.com/http://www.google.com/http://www.wikipedia.com/http://www.amul.com/