kailash(amul-project) submitted in college

7/31/2019 KAILASh(Amul-Project) Submitted in College

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ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for Gujarat Co-operative Milk Marketing Federation Ltd. It has been an enriching experience for me to

undergo my summer training at “GCMMF”, which would not have possible without the

goodwill and support of the people around. As a student of “Management Education and

Research Institute” New Delhi, I would like to express my sincere thanks to all those who

helped me during my training program.

I would like to express my gratitude to all those who gave me the encouragement to completethis project. I would like to thank my college authorities and Director Mr. Y.L. Grover, forproviding me the opportunity to work with the one prestigious organization.

I would like to give my heartily gratitude to the Mr. Narendra Singh, Senior Executive

(SALES), GCMMF Ltd., New Delhi for having given me the opportunity to do my project

work in the organization and lighted my way of progress with his guidance.

My sincere and deepest thanks to Mrs. Deep Shikha Kalra, Faculty Member of

MANAGEMENT EDUCATION AND RESEARCH INSTITUTE, NEW DELHI for having

spared his valuable time with me and for all the guidance given in executing the project as perrequirements.

I would like to give my special thanks to my parents, their love, support and blessing enabledme to complete this Project work.

However, I accept the sole responsibility for any possible error of omission and would beextremely grateful to the readers of this project report if they bring such mistakes to mynotice.



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DECLARATION

I hereby declare that the following project report titled “MARKET ANALYSIS &

SALES DEVELOPMENT OF AMUL MILK” at Gujarat Co-operative Milk

Marketing Federation Ltd., New Delhi is an authentic work done by me. It is to the

best of my knowledge and belief. This is to declare that all my work indulged in the

completion of this Project Report such as research, competitor analysis and sales

promotion is a profound and honest work of mine.

Date:

Mr. KAILASH KUMAR



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-:CONTENTS:-

Sr. No. Subject Page No.

1 EXECUTIVE SUMMARY 4-6

2 INTRODUCTION 7-9

3 INDUSTRY & COMPANY PROFILE 10-31

4 OBJECTIVE & SCOPE OF STUDY 32-33

5 RESEARCH METHODOLOGY 34-38

6 DATA PROCESSING & ANALYSIS 39-49

7 OBSERVATION & FINDINGS 50-52

8 LIMITATIONS 53-54

9 CONCLUSION 55-57

10 SUGGESTION & RECOMMENDATION 58-60

11 BIBLIOGRAPHY 61-62

12 ANNEXURE 63-65



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EXECUTIVE SUMMARY



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In today’s 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 competitor’s existing in the market so that we can plan our each activity according

to that. It is also necessary to retain the existing customers apart from attracting the new

customers.

The Project is concern with the market analysis & sales development of Amul dairy

milk in Sangam Vihar and nearby area. The project included as part of PGDM Programme

and the project is done from 7th

May to 30th

June.

1.1 Title:

“MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN SANGAMVIHAR AND NEARBY AREA”.

1.2 Organization:

“Gujarat Co-operative Milk Marketing Federation (GCMMF), Anand, Gujarat”.

1.3 Objective:

The Primary objective of study was to find size of retail network of Amul Milk in

specific areas of New Delhi city. In the study my intention was go through the retail network of

Amul dairy milk to know retailers view about supply chain of Amul dairy milk, to know the

complaints of Amul dairy milk and to find the suggestions from retailers for more penetration

of Amul dairy milk in Sangam Vihar and nearby area.

The secondary objective was to find customer response towards Amul milk. My aim

was to go through the customers to know the interest of purchasing & using Amul milk.

Basically the study was for the demand of Amul milk among the customers. And also to know

the complaints on Amul milk.

1.4 Research Methodology:

Descriptive research was done through retailers using Judgment sampling.. I have

collected primary data through questionnaire which was filled by retailers. Questions were

both open and close ended. The secondary data was collected from website www.amul.com.



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1.5 Findings:

In Sangam Vihar region there are around more players in of liquid milk exist. Those

are like DMS, Mother Dairy, Amul, Paras, and many other local brands.

As per the findings MOTHER DAIRY is the Market leader and having more market share.

Awareness of Amul dairy milk among the retailers as well as consumers is good but acceptance

is low. The sale is totally depends on the retailers.

1.6 Data Analysis:

The data analysis has done area wise. It gives idea about the competitors of Amul dairy

milk. It gives information regarding their market share.

1.7 Conclusion:

It was concluded that Amul dairy milk i.e. Full Cream milk and Cow milk has a high

potential in the market and it is the known to its customers but still its acceptance is

comparatively low as other competitors present in the market, because perception of

customers towards the product is wrong, some of the consumer continuously using other

brand and they do not want to switch over other brand and most of the customers are price

sensitive.



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INTRODUCTION



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2.1 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 becausepurchasing power is depend upon availability of that product, in case distributors and retailers

service matter a lot. Retailing includes all the activity in selling goods or service directly to the

customers or personal nonbusiness use. A retailer or retail store is any business enterprises

whose sales volume comes primarily from retailing.

Retailers are the part of milk marketing channels and perform the work of moving

goods from producers to the customers. It overcomes the time, place and possession gap that

separates goods and service from those who needs or wants them. Retailers as member of

marketing channel perform a number of key functions. Some functions (physical, title,

promotion) constitute a forward flow of activity from the company to the customers; other

functions (ordering and payment) constitute a backward flow from customers to the company.

Still others (information, negotiation, finance and risk taking) in both directions.

The project delves into the workings from the distribution aspect of an FMCG

organization, in detail. AMUL, being an FMCG company, attaches a lot of significance to the

distribution aspect of its business. The distribution channel of AMUL holds a lot of potential in

affecting the demand or sales of AMUL products through delivery on time, delivery of variety

of products, the retailer-friendliness of the policies being set by the distributors and equitable

distribution of products to all the retail outlets in a particular region, to name a few.

So, In order to plan retail coverage we map out the positions of Amul outlets, Amul

parlors, and competitor’s outlets. This project was carried out in Delhi city. For analyzing and

presenting information that is tied to geographical location, we divided the city in different

wards. By analyzing geographical representation and sales data with spatial distribution Amul

outlets, competitor’s outlets and the density of others in an area, we identify unexplored area

and plan location outlets to increase its market penetration. Using such research we can

ascertain the quality and depth of retail penetration in specific area.



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2.2 Need of Study:

Managers are always curious about the position of their company’s products in the

market which largely depend upon the company’s goodwill, and the position of their brand. In

order to maximize the sale and profit, company must deliver outstanding satisfaction to the

retailers, wholesaler & customers. So market survey of retailers, wholesalers & customers,

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.

2.3 Statement of The Problem:

“MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN SANGAM

VIHAR AND NEARBY AREA”

It helps to study all activities which can be used to influence large number of customers so

as to increase the sales of the Amul milk effectively”.



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INDUSTRY

&

COMPANY PROFILE



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3.1 Industry Profile:-

3.1.1 The World Dairy Situation:

According to a report published by International Dairy Federation (IDF) on the World

Dairy Situation 2007 the worldwide milk production is expected to grow at a slower pace in

20010-11 and is estimated at 655 million tones, only 9 million tones more than the production

of 2009 – 2010. The strongest growth would be in Asia, notably in China and India. Milk

production is projected at 36 million tonnes in China and 94.60 million tones in India. India

would continue to be the largest milk producer, followed by the US, with projected production

of 82.60 million tonnes.

Major changes are not expected in dairy products basket. World butter production

increased for two years, in 2006 and 2007 and then declined in 2008-09. It is expected to

decline again in 2009-10. Industrial cheese production is continuing to grow. The major cheese

producing regions are Europe and North America and both areas are expected to have a faster

growth rate.

The production of condensed and evaporated milks is subject to a declining trend for many

years in the developed market. It has been replaced by many other dairy products, especially

liquid milks of UHT type, coffee cream and coffee whitener including some of the non-dairy

origin.

World trade in dairy products after a period of relative stagnation, started recovery in

the second half of 2008-09 and it continued in the first half of 2009-10. The recovery is due to

prosperity resulting from economic demand. However, the bullish price situation is not likely



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to continue long and would level down.

Export of butter and butter-oil recovered in 2008-09 and this recovery continued in

early 2009-10. The total volume of the world trade in cheese has accelerated and this trend is

likely to continue in the year 2010.

The outlook for the trade in dairy commodities for 2009-10 appears bright. However,

since the new market equilibrium, in respect of prices has to be found, the question is whether

international trade in dairy products will continue its growth in 2009-10 at the same

momentum as in previous years. Because of the price situation in 2009-10, one may ask

whether demand can follow the expected trends, but it would be premature to expect

stagnation in the trade. In established markets, the potential for demand to reduce slightly canrelease the additional supplies, which are needed to maintain the growth of trade.

3.1.2 Indian Dairy Industry -- A Profile:

India’s dairy sector is expected to triple its production in the next 10 years in view of

expanding potential for export to Europe and the West. More ever with WTO regulations

expected to come into force in coming years all the developed countries which are among big

exporters today would have to withdraw the support and subsidy to their domestic milk

product sector. Also India today is the lowest cost producer of per liter of milk in the world, at

27 cents, compared with the US’ 63 cent. Also to take advantage of this lowest cost of milk

production and increasing production in country multinational companies are planning to

expand their activities here. Some of those 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.

The urban market for milk products is expected to grow at an accelerated pace of

around 33% per annum to around Rs.83, 500 crores by year 2015. This growth is going to

come from the greater emphasis on the processed food sector and also by increase in the



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conversation of milk into milk products. By 2015, the value of Indian dairy produce is expected

to be Rs 10, 00,000 million. Presently the market is valued at around Rs7,00,000



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3.1.3 Co – Operative Unions:

Backward integration of the process led the cooperatives to advances in animal

husbandry and veterinary practice. The system succeeded mainly because it provides anassured 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.

Recently the Indian cooperative movement got a much needed facelift. With

competition snapping at its heels, the sector which has been governed by arcane laws until the

recent past will see a special provision inserted in the companies Act, 1956. All the cooperative

unions will be re-christened cooperative companies; they will come under the purview of the

registrar of companies, instead of the registrar of cooperatives.

Dairy cooperatives account for the major share of processed liquid milk marketed in

the country. Milk is processed and marketed by 170 milk producer’s cooperative unions,

which federate into 15 state co-operative milk marketing federations.

The dairy board's programmes and activities seek to strengthen the functioning of

dairy co-operatives, as producer-owned and controlled organizations. NDDB supports the

development of dairy co-operatives by providing them financial assistance and technical

expertise, ensuring a better future for India's farmers.

Over the years, brands created by cooperatives have become synonymous with quality

and value. Brands like Amul (GCMMF), Mother Dairy, DMS, Paras, Nestle are among those

that have earned customer confidence.



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• The Dairy Cooperative Network

Includes 170 milk unions

Operates in over 338 districts

Covers nearly 1,08574 village level societies

Is owned by nearly 12 million farmer members.

Apart from making India self sufficient in milk, these dairy co-operatives have

established our country as the largest milk-producing nation in the world.

3.2 The Organization:

3.2.1 Introduction & 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 vastco-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”).



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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.



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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 toShri 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 shouldbe asked to buy milk from the union.



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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 Cooperative 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.



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At the initial stage only 250 liters of milk was collected every day. But with the growing

awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul

collect 11 lakhs liters of milk every day. Since milk was a perishable commodity it becomes

difficult to preserve milk for a longer period. Besides when the milk was to be collected fromthe 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.



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3.2.2 Amul 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.



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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 UNIONLIMITED), a name which suggest THE TASTE OF INDIA.

Amul (Anand milk union ltd.) is based on four hands, which are coordinated with each

other. The actual meaning of this symbol is co-ordination of four hands of different people by

whom this union is at the top position in Asia.

First hand is of farmers, without whom the organization would not have existed.

Second hand is of processors, who process the row material (milk) into finished goods.

Third hand is of marketer, without whom the product would have not reached the

customers.

Fourth hand is of customers, without whom the products would have not carried on.



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3.2.3 GCMMF Overview:

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

products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat

which aims to provide remunerative returns to the farmers and also serve the interest of

consumers by providing quality products which are good value for money.

Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the largest

Organisation in FMCG industry engaged in marketing of milk & milk products under the

brand names of AMUL and SAGAR with an annual turnover exceeding Rs 5000 crores.

GCMMF is a unique organisation. It's a body created by Farmers, managed by

competent professionals serving a very competitive and challenging consumer market. It is a

true testimony of synergistic national development through the practice of modern

management methods.

3.2.4 Vision:

GCMMF will be an outstanding marketing organization, with specialization in marketing

of food and dairy products both fresh and long life with customer focus and IT integrated. The

network would consist of over 100 offices, 7500 stockiest covering at least every Taluka. Head

quarter servicing nearly 10 lakh outlets with a turnover of Rs.10,000 Cr and serving several co-

operatives. GCMMF shall also create markets for its products in neighboring countries.

3.2.5 Mission:

We at GCMMF endeavor to satisfy the taste and nutritional requirements of the customer

of the world through excellence in the marketing by our committed team. Through co-operative

networking, we are committed to offering quality product that provides best value for money.



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3.2.6 Sales Turnover:

Sales turn over of GCMMF from 1994 to 2009:-

Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

2008-09 67113 1504

3.2.7 Areas of Operation:

Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA,

Bangladesh, Australia, China, Singapore, Hong Kong and a few South African nations. Other

potential markets being considered include Sri Lanka.



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3.2.8 Some Facts:

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 - 2011-12): 3.05 billion litres

Milk collection (Daily Average 2011-12): 8.4 million litres

Milk Drying Capacity: 626 Mts. per day

Cattlefeed manufacturing Capacity: 3500 Mts per day

3.2.9 Achievement & Awards:

Amul: Asia’s 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 to door steps to rural

farmers.

Amul created history in following areas:

First self motivated and autonomous farmers “organization comprising of more than

5000000 marginal milk producers of Kaira District”.

Created Dairy co-operatives at village level functioning with milk collection centers

owned by them.

Computerized milk collection system with electronic scale and computerized accounting

system.

The first and only organization in world to get ISO 9000 standard for its farmers co-

operatives.

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.



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AWARDS:-

Amul a co-operative society and its co-operation has led many different awards in its favour.

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 -86awarded to Amul dairy.

1988: “Best Productivity” awarded for the second successive year 1986-87 by thepresident of India, Mr. R. Venkatrao to kaira union.

1993: “ICA” Memenoto towards genuine and self sustaining cooperative worldwide ICAregional 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.

1999: Best of All" Rajiv Gandhi National Quality Award for the year,

2003: The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the topscorer in the service category of the prestigious IMC Ramkrishna Bajaj NationalQuality Award.

2006-07: GCMMF has bagged award for excellent performance in exports of dairyproducts from Agricultural and Processed Food Exports Development Authority(APEDA).

2007: Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit.



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3.3 List of Products Marketed:-

Bread spreads

Amul Butter

Amul Lite Low Fat Breadspread

Amul Cooking Butter

Cheese Range

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozarella) Cheese

Amul Shredded Pizza Cheese

Amul Emmental Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned

Utterly Delicious Pizza

Mithaee Range (Ethnic sweets)

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

Amul Amrakhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix

Avsar Ladoos

Pure Ghee

Amul Pure Ghee

Sagar Pure Ghee

Amul Cow Ghee



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UHT Milk Range

Amul Shakti 3% fat Milk

Amul Taaza 1.5% fat Milk

Amul Gold 4.5% fat Milk

Amul Lite Slim-n-Trim Milk 0% fat milk

Amul Shakti Toned Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

Infant Milk Range

Amul Infant Milk Formula 1 (0-6 months)

Amul Infant Milk Formula 2 (6 months above)

Amulspray Infant Milk Food

Milk Powders

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Fresh Milk

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardized Milk 4.5% fat

Amul Slim & Trim Double Toned Milk 1.5% fat

Amul Saathi Skimmed Milk 0% fat

Amul Cow Milk



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Sweetened Condensed Milk

Amul Mithaimate Sweetened Condensed Milk

Curd Products

Yogi Sweetened Flavored Dahi (Dessert)

Amul Masti Dahi (fresh curd)

Amul Butter Milk

Amul Lassee

Amul Ice creams

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

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

Badshahi Badam 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 Pista Kulfi)

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



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Chocolate & Confectionery

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Brown Beverage

Nutramul Malted Milk Food

Milk Drink

Amul Kool Flavoured Milk

Health Beverage

Amul Shakti White Milk Food

Ready to Serve Soups

Masti Tomato Soup

Masti Hot & Sour Soup



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PLANTS

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

butter etc.

Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, AmulGanthia and Amul lite.



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Third plant is at Kanjari, which produces cattelfeed.

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



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OBJECTIVE

&

SCOPE

OF THE STUDY



4.1 Objectives of Project:

The main objective of the Study can be listed as follows:

A. Primary Objective

The Primary objective of study was to find size of retail network of Amul Milk in

specific areas of New Delhi city. In the study my intention was go through the retai

network of Amul dairy milk to know retailers view about supply chain of Amul dairy

milk, to know the complaints of Amul dairy milk and to find the suggestions from

retailers for more penetration of Amul dairy milk in Sangam Vihar and nearby area.

B. Secondary Objective

The secondary objective was to find customer response towards Amul milk. My

aim was to go through the customers to know the interest of purchasing & using Amu

milk. Basically the study was for the demand of Amul milk among the customers. And

also to know the complaints on Amul milk.

4.2 Scope of Project:

The study carried out in Sangam Vihar region so its scope is mainly limited to Sangam

Vihar region.

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.

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.



RESEARCH

METHODOLOGY



35

5.1 Research Methodology:

The research was conducted from 7th

May, to 30th

June, 2012. The research include

meetings with the retailers, consumers and dealers. It included preparation of the questionnaire to

be answered by above people for knowing the competitive position of Amul in the milk market. The

views of the above parties were recorded in the research as per the questionnaire set by us.

• Research Approach:

The objective was to know the competitive position of Amul in the milk market thus in

order to successfully conduct the research the unbiased opinion of the above parties was

desirable. Thus we conducted the research as the representative of Amul company and

sometimes the representatives of the other company like Mother Dairy or Paras in order

to have an unbiased opinion of the concerned persons and it worked to achieve our goal.

• Research Instrument:

The research instrument was the structured questionnaire formulated for the

respondents.

• Types of Question:

The second important aspect in the designing a question is to decide which types of question

are to be used. Question can be classified in various ways.

Questionnaire contains following type information-

• Open-ended question

• Dichotomous question

• Multiple-choice Question

Phrasing of Question:

In questionnaire, I try to phrase the question in logical way. For example I arrange

question in sequence as personal information, awareness data, usage data, and finallyrelated to reason and satisfaction.



36

5.1.5 Sampling Plan:

Sample Size:

The sample size was as follows:

SR. NO. RESPONDENT TOTAL NUMBER

1. Retailers 110

2. Distributors 4

Sampling Technique:

A stratified sampling technique was used. A different Stratum for different type of respondent within every stratum the respondents was selected as per convenience basis.

5.1.6 Method of Survey:

Personal Interview:

It is direct form of investigation, involving face-to-face communication with free

feedback information. It offers a sense of participation. It is more flexible form of data

collection. Use of unstructured, open-end questions is possible. Rate of refusal is low. Depth

interview is possible. Complex questions can be asked. The interview can have questions to

secure more information. Observation approach can be combined to verify age, income, status,

standard information. Visual aids in the form of catalogues samples etc. can be used to get

views, opinions, and attitudes of responder.



37

5.3.1 Area of Operation:

The areas of operation were the research was done are as follows:

Sangam Vihar

Ratiya Marg Mangal Bazar

Vir Bazar

Sani Bazar

Band Road

Sanik Form

Asthal Mandir

Devli Road

Tigdi

Khanpur

Madangir

How the survey conducted

To approach the outlets with the following requirements in mind

At Approach:

What type of shop it is? (hotels, bakery, restaurant, general

stores, super market)

Does it stock Amul products?

What other brands available in the shop

Secondary Level:

Whether it sells milk ?

If yes, whether it sells Amul milk ?

Whether the company provides any promotional support ?

Territory Level:

Does he sell local milk or not ?

Which is the most selling milk in the market ?

Who supplies milk to your shop ?



38

Does the delivery of milk is on time ?

What is the mode of payment credit or cash ?



39

DATA PROCESSINNG

&

ANALYSIS



40

Data Analysis For Retailers:-

1) Number of retailers stocking Amul milk.

Answer No. of Percentage respondents

Yes 102 92.72%

No 8 7.28%

Interpretation:

The above graph indicates that more than 90% of the retailers are selling Amul

milk.

It shows that Amul milk brand is popular among the retailers.

92.72%

7.28%

No. of respondent

YES

NO



41

2) Sizes of Amul milk packets retailers preferred to store. (Out of 110 retailers only 102

were buying Amul milk.)

Interpretation:

The above graph shows that most of the retailers preferred to stored 500 ml and 1 Ltr

pouch of Amul milk as per the customer demand.

In case of 6 Ltr. Pouch there was no customers demand.

Answer No. of PercentageRespondents

500 ml 80 78.43 %

1 Ltr 22 21.57 %

6 Ltr 0 0 %

78.43%

21.53%

00.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

500 ml 1 Ltr 6Ltr

No. of respondent

No. of respondent



42

3) Reasons for Amul milk not stored by retailers.

(Out of 110 retailers 8 were not buying Amul milk.)

Answer No. of respondents

Low margin 4

No replacement for leakage 3

No distribution 1

Interpretation:

From above graph it is clear that most of the retailers were not satisfied with Amul

replacement and margin policy.

Very less retailers complained about distribution network

4

3

1

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Low margin No replacement

for leakage

No distribution

N0. of respondent

N0. of respondent



43

4) Preference of retailer’s to milk brand.

BRANDS RESPONDENTS

Amul 47

MotherDairy

52

DMS 8

Paras 3

Interpretation:

The above graph shows that the Mother Dairy is most preferable brand in all.

Few retailers also prefer DMS and Paras brands.

47

52

8

3

0

10

20

30

40

50

60

Amul Mother Dairy DMS Paras

No. of respondents



44

5) Sources from where retailers get Amul milk.

(Out of 110 retailers only 102 were buying Amul milk.)


Distributors 35 34.32 %

Other suppliers 67 65.68 %

Interpretation:

More than 65% retailers purchased milk from other suppliers.

34.32%

65.68%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Distributor Other suppliers

No. of respondents



45

6) Retailer’s satisfaction with Amul distributor.

(Out of 110 retailers only 102 were buying Amul milk)


Yes 42 41.18 %

No 60 58.82 %

Interpretation:

Graph shows that less than 50% of the retailers were satisfied with the service provided

by the Amul distributors.

41.18%

58.82%

No. of respondents

YES

NO



46

7) Awareness among retailers about different Sales Promotional activities for Amul milk.

(Out of 110 retailers only 102 were buying Amul milk.)

Activities Aware Not aware

Price off 62 40

Credit facility 29 73

Advertisement 93 9

P-O-P Displays 78 24

Interpretation:

The graph shows that retailers were aware about the sales promotion activity that

Amul carried out, but some respondents were unaware about various activities.

Most of the retailers were aware about advertisement and P-O-P Display scheme during

festivals.

Only 29% retailers aware about credit facility.

62

29

93

78

40

73

9

24

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Price off Credit facility Advertisement P-O-P Display

Not aware

Aware



47

8) Awareness among retailers for Amul Parlor (APO) and its benefits.

(Out of 102 retailers only 48 were questioned as they had large store.)


Yes 36 75 %

No 12 25 %

Interpretation:

From graph it can be interpreted that the awareness about APO is very low.

75%

25%

No. of respondent

YES

NO



48

9) Interest of retailers in opening an Amul Parlor (APO).

(Out of 102 retailers only 48 were questioned as they had large store.)


Yes 9 18.75 %

. No 39 81.25 %

Interpretation:

The graph represent that very less number of retailers were interested to start APO.

18.75%

81.25%

No. of respondent

YES

NO



49

10) Consumer’s expectation from Amul milk.

ATTRIBUTE RESPONDENTS PERCENTAGE

Good quality 14 13.73 %

Clear packaging date 32 31.37 %

Availability 56 54.90 %

Interpretation:

The question asked to the retailers where the Amul milk is being sale, and tried to

collect feedback of customers about Amul milk.

More customers were having complaints about the clear date of packaging and availability.

Some customers were not happy with quality of milk.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Good Quality Clear Packaging

Date

Availability

13.73%

31.37%

54.90%

No. of respondents

No. of respondents



50

OBSERVATION

&

FINDINGS



51

7.1 Observation Findings:-

7.1.1 Retailers: (super market, grocery shops, ets)

Because of low profit margin almost all retailers are not interested in Amul milk selling.

The 250 ml milk pouch are not available to the retailers for selling.

On question, why retailers are not interested in selling of Amul milk, it is found theywere not happy with margin, availability and replacement of leak pouches.

Retailers were selling different brands. Because they were able to receive more marginfrom non popularized brand that they could not from well known brands.

All retailers get Amul milk from company selected distributors.

Measurable amount of retailers were not happy with the distributors, because of frequent change in distributors and late delivery of milk.

All retailers were familiar with sales promotion activities undertaken by Amul. But more of the activities were not communicated by distributors. So it shows that distributors aretaking the advantage of such activities.

Some questions were asked with view to convert retailers into distributors, but due tolow margin they denied that.

Retailers were not interested to start APO because to start APO one required largeamount investment i.e. near about 2 Lakhs and with this it is mandatory to sale onlyAmul products, so most of the retailers did not show interest in APO.

Retailers also demand for the replacements for the damage due to the spoilage of milk

that they have to bear when the Amul milk gets spoiled after the purchase.



52

7..2 End Users: (House holds)

Consumer’s preference for purchasing of liquid milk is mainly based on quality,taste, availability, home delivery and freshness respectively.

Awareness level among the consumers is around 75% to 80% but still onlyaround 15% consumers are consuming Amul milk.

Consumers have a perception that Amul milk is unfresh and is having lots of cuddling problem.

The packaging of Amul milk is not popular among the customers as compared to othermilk brands are available in the market.

7.1.3Bulk Users: (sweet shops, restaurants, hotels, canteens etc).

The awareness level of Amul milk in bulk users is around 90% but only 10% are usingAmul milk.

The preference of purchasing milk by the bulk users is mainly quality, price andtimely availability.

The reasons for not using milk by the bulk users are :

1. Higher price that is not meeting the competitors rate as bulk user are very price sensitive.

2. In sweet marts mawa generation is less and there is a complaint about cuddling of milk.

3. In case of canteens contract some of them prefer credit purchasing which is againstcompany’s norms and policies.



53

LIMITATIONS



54

Limitations:-

This report had to work under several constraints and limitations. Some of the key limitation are.

1 The survey is limited only for Sangam Vihar and Nearby area.

2 Time period of the project was 8 weeks, which may not be enough to understand the

whole market.

3 Convenient sampling was used as the mode of conducting the research.

4 The sample size of the taken was small, therefore it can be said that the chosen sample is

not the representative of the whole population and this hindered quantitative research.

5 The psychology and temperament of a respondent play a significant role. Some

respondents are more sensitive as against others who are more tolerant. A change in

the composition of the respondents can affect the answers adversely or favorably.

6 Out of the whole research and analysis, only three major brands could be

highlighted, leaving aside the other non-popular brands.

7 The questionnaire mostly contained multiple choice questions, therefore many

respondents did not give a proper thought before up the questions, and some even

ticked things, which were not applicable. Therefore, all this increased the bias.

8 The sample size of Retailers / Wholesalers was very small and therefore response

from them dose not reflect the exact view because they may to biased.



55

CONCLUSION



56

Conclusion:-

Amul means different things to different people.

To a milk producer – A life enriching experience

To a consumer – Assurance of having wholesome milk

To a mother – A reliable source of nourishment for her child

To the country – Rural development and self reliance

As we know that Amul is very big organization and market leader in

dairy products. It has maximum market share in Milk, Butter, Cheese & Ice-

Cream which are its main/core products. But in case of local market like New

delhi the Amul milk is not a popular product as compared to other Amul

Products. With the help of research, company can find out its week points in

Milk product and can increase its market share through rectify mistakes.

People have believed in Amul’s product and they will accept it also if effective

actions were taken.

The survey resulted into following conclusions :

Amul must come up with new promotional activities such that people

become aware about Amul Milk like Amul Tazza & Gold.

Quality is the dominating aspect which influences consumer to

purchase Amul product, but prompt availability of other Milk brands

and aggressive promotional activities by others influences the

consumer towards them and also leads to increase sales.

In comparison to Amul Milk, the other players such as Mother Dairy,

DMS & Paras provide a better availability and give competition to the

hilt.



57

People are mostly satisfied with the overall quality of Amul Milk, but

for the existence in the local market Amul must use aggressive selling

techniques

.



58

SUGGESTIONS

&

RECOMMENDATION



59

Suggestions & Recommendation:-

The Milk products market has reached Maturity stage in India large no. of Co-operativeshaving a variety of product range has entered the market, thus there is one way for Amul to

sustain their milk business in the market by delivering outstanding satisfaction to their retailers, sothat they can take interest in selling of Amul milk products. This can be done as follows

Amul has a relatively good distribution network, but still company is not able to fulfillthe demand of outlet in the peak season when demand is very high. Here companyshould consider on the supply of product in the peak season.

Supply should be regular to all the outlets including those that lie in the pocket roadsand not just in the outlets which lie on the easily accessible routes.

250 ml milk pouch should make available to retailers for selling, because lower income

family has intention to buy small pouch milk.

Provide reasonable Margin to retailers as compared to competitors, this motivatesthem to promote company’s milk and milk products.

Improve delivery schedule to provide products on time for the retailers about whoclaimed that Amul milk is not available to them on time.

Incentives & schemes should be given to the retailers and some scrutiny should be follow tocheck the scheme get being communicated properly by distributors or sales person.

Provide consistent service to retailers as this will help gain company goodwill in themarket.

Do not change distributor frequently, because he is the only person who act as aconnecting link between company and retailers.

Do not place more than one distributor in same market area.

Try to minimize bank deposits for APO, which help to retailer think to start.

Though the customers are asking for Branded milk is very few but Amul should investmore money in Brand promotion and marketing in New Delhi, it will be beneficial forthe company in the long run as well as in the short run.

For Brand promotion and marketing of Amul milk in New Delhi it should introduce amascot for the Amul milk as it already has for Amul Butter i.e. The Amul Butter Girlin order to gain a good position in the mind of customers. This will also help in easyBrand differentiation and Recognition.



60

Also advertising on the television, Radio Mirchi and Sponsorship of the events, TradeFairs will be a better choice.

The study of milk market reveled that there is no Mergers and Acquisition in the milk

industry. Amul should go for Mergers and Acquisition and try to acquire the localplayers in the New Delhi market like Mother Dairy, DMS and Paras etc. It will help thecompany in increasing its Dealers network, Market share, Customer base etc. It willalso save time of establishing a new manufacturing unit.

Our Research revealed that there is no awareness among the consumers regarding the

Amul milk in New Delhi. So it is advisable to the company to conduct various

consumer awareness programs like distributing of pamphlets outside the big shopping

malls, giving presentations in schools and colleges about the Amul Milk by telling them

about the qualities of milk. By this we can able to reach to a large number of people at

one time only as there will students along with their teachers and other staff membersof the school and colleges.

The pamphlets should be printed in such a way that it not only advertise about the milkbut also provides information about how to preserve the milk in different conditions.

In order to attract the ladies segment the pamphlets should have some recepies on theother side of it.

Some brand ambassador like M S Dhoni, Hrithik Roshan or Vriendra Sehwag may beused. That will help customers to accept the product more quickly.

Special offers should be there for dealers, retailers and consumers at the time of diwaliand holi.

Discount coupons should be given to the consumers in order to buy more milk.

If adding preservatives in the milk keeps the milk for longer times then Amul shouldalso add some preservatives in the milk as people not only see quality but also sees thetime duration i.e. how much times we can store the milk.

In order to push the milk to the customers the profit margin should be increased.

Company should improve its distribution channel and should increase the number of distributors.

Company should take care of retailers by solving their problems and should call backby appointing separate company representatives.

Timely visit should be given to the retail shops.



61

BIBLIOGRAPHY



62

Books:

• Marketing Management (12th

Edition) – Philip Kotlar

• Research Methodology – C. R. Kothari

Websites:

• www.google.co.in

• www.wikipedia.com

• www.amul.com.

• www.marketresearch.com

• www.dairy.com



63

ANNEXURE



64

Good morning/evening. We would be grateful if you could spare a few minutes to complete this

Retailer preference Questionnaire to help us ensure that our standard of Retailer care exceedsexpectations wherever possible.

Name Contact

Address Date

1. Do you sell Amul products (Milk, Curd, Buttermilk) ?Yes No

2. Which product do you sell?

Milk Curd Buttermilk All

3. Which other brand of milk products do you sell?

Product Mother Dairy DMS Paras

Milk

Curd

Buttermilk

4. Which variance of milk do you sell?Full cream Toned Double Toned All

5. At which time do you receive the supply of milk?

TIME Amul Mother Dairy DMS ParasBefore 6:00 a.m

6:00 – 7:00 a.m

7:00 – 8:00 a.m

8:00 – 9:00 a.m

After 9:00 a.m

6. How much quantity of milk products do you sell everyday?

PRODUCT Amul Mother Dairy DMS Paras

Full Cream

Toned

Double Toned

CurdButtermilk

7. How do you think the sale of Amul pouched milk can be increased?Advertisement banner Promotional Schemes

Early Delivery

Others (please specify)…………………………………………………………………………….



8. Rate the overall performance of distributors (out of 10).

1-Very Bad 10- Extremely Good

COMPANY NAME 1 2 3 4 5 6 7 8 9 10

Amul

Mother Dairy

DMS

Paras

9. What kind of problem/complain do you have from the distribution channels?Late delivery Behaviour Irregular supply

Leaked packets Demand not met No complain

10. Does the distributor take necessary action regarding your problem?Yes No

If no (specify),………………………………………………………………………………

11. Does Amul as an organization taking enough steps to market its milk products (milk, curd,

buttermilk)?Yes No

12. Which factor in milk the customer has major concerns?Price Quality Early delivery

Brand name Easy availability

13. Which factor do you consider that affect the sale(retailer point of view)?Price Quality Timely delivery

Brand Margin

14. What can be various marketing schemes to promote the sales & encourage more retailers to

sell Amul milk products.Schemes Advertisement

Refrigeration facility Evening milk supply

15. Any special issues or suggestions for Amul.

……………………………………………………………………………………………………………………………………………………...………………………………………………………

………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………..

kailash(amul-project) submitted in college

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