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					1
                 PROJECT REPORT ON
  “Market Analysis & Sales Development of Amul Milk”
       This study was conducted from 8th June 09 to 8th August 09




                          At
Gujarat Co-operative Milk Marketing Federation Limited
                          BY:
               PRASANTA KUMAR MOHAPATRA
                         PGDM
                                  OF



                 ASIAN SCHOOL OF MANAGEMENT

 A report submitted in partial fulfillment of the requirements of
                       PGDM (2008-10)




Company Guide:                                    Faculty Guide:
Mr. PRANIL JADHAV                                 PROF. K K BHASIN
SENIOR EXECUTIVE (SALES)
GCMMF Ltd. PUNE




                                   2
                               PREFACE
The PGDM programme is well structured and integrated course of business studies.
The main objective of practical training at PGDM level is to develop skill in student
by supplement to the theoretical study of business management in general. Industrial
training helps to gain real life knowledge about the industrial environment and
business practices. The PGDM programme provides student with a fundamental
knowledge of business and organizational functions and activities, as well as an
exposure to strategic thinking of management.


In every professional course, training is an important factor. Professors give us
theoretical knowledge of various subjects in the college but we are practically exposed
of such subjects when we get the training in the organization. It is only the training
through which I come to know that what an industry is and how it works. I can learn
about various departmental operations being performed in the industry, which would,
in return, help me in the future when I will enter the practical field.


Training is an integral part of PGDM and each and every student has to undergo the
training for 2 months in a company and then prepare a project report on the same after
the completion of training.


During this whole training I got a lot of experience and came to know about the
management practices in real that how it differs from those of theoretical knowledge
and the practically in the real life.


In today’s globalize world, where cutthroat competition is prevailing in the market,
theoretical knowledge is not sufficient. Beside this one need to have practical
knowledge, which would help an individual in his/her carrier activities and it is true
that “Experience is best teacher”.




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                          CERTIFICATE
The following summer internship project report titled “MARKET ANALYSIS &

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

Marketing Federation Ltd., Pune from 8th June 2009 to 8th August 2009 is here by

approved as a certified study in management carried out and presented in a manner

satisfactory to warrant it’s acceptance as a prerequisite for the award of post-graduate

diploma in management (PGDM). For which it has been submitted. It is understood

that by this approval the undersigned do not necessarily endorse or approve any

statement made, opinion expressed on conclusion drawn therein but approve the

summer internship report only for the purpose it is submitted.




           Signature                                               Signature
       Prof. K.K BHASIN                                          Mrs. K Madhavi
         Faculty guide                                             Director




                                           4
                         CERTIFICATE

This is to certify that Mr. Prasanta Kumar Mohapatra, Roll No. A-7028 a student

of course PGDM from the institute Asian School of Management has done his

summer training at GUJARAT CO-OPERATIVE MILK MARKETING

FEDERATION LIMITED, PUNE.



The project work entitled “MARKET ANALYSIS & SALES DEVELOPMENT

OF AMUL MILK” has done under the supervision of Mr. K.K. BHASIN faculty

member of ASIAN SCHOOL OF MANAGEMENT.



The project work embodies the original work done by Mr. Prasanta Kumar Mohapatra

during his summer project training period.




                                                         Signature
                                                    Prof. K.K BHASIN
                                                       Faculty guide




                                             5
                    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
“Asian School of Management”, Pune I would like to express my sincere thanks too
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
complete this project. I would like to thank my college authorities and Director Mrs.
Madhavi Khare, for providing me the opportunity to work with the one prestigious
organization.


I would like to give my heartily gratitude to the Mr. Pranil Jadhav, Senior Executive
(SALES), GCMMF Ltd., Pune 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 Mr. K.K. Bhasin, Faculty Member of ASIAN
SCHOOL OF MANAGEMENT, PUNE for having spared his valuable time with
me and for all the guidance given in executing the project as per requirements.


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

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 such mistakes to
my notice.




                                            6
                          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., Pune 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:                                                     Signature
                                        Mr. PRASANTA KUMAR MOHAPATRA




                                        7
                     -:CONTENTS:-



Sr.                    Subject      Page No.
No.


1     EXECUTIVE SUMMARY                9

2     INTRODUCTION                    12

3     INDUSTRY & COMPANY PROFILE      16

4     OBJECTIVE & SCOPE OF STUDY      43

5     RESEARCH METHODOLOGY            45

6     DATA PROCESSING & ANALYSIS      51

7     OBSERVATION & FINDINGS          68

8     LIMITATIONS                     71

9     CONCLUSION                      73

10    SUGGESTION & RECOMMENDATION     75

11    BIBLIOGRAPHY & WEBLIOGRAPHY     78

12    ANNEXURE                        80




                           8
EXECUTIVE SUMMARY




        9
        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
Pune city. The project included as part of MBA Programme and the project is done from 8th June to
8th August.


1.1     Title:
        “MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN PUNE CITY”.
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 Taaza and Amul
Gold in specific areas of Pune 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 Pune region.
        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:
        Research type was descriptive. The research was done through retailers. I have collected the
primary data through questionnaire which was filled by retailers, customers. Questions were both
open and close ended. The secondary data was collected from website www.amul.com.


Sampling done is nonprobability sampling. The type of sampling method was Judgment sampling.



                                                  10
1.5     Findings:
        In Pune region there are around more players in of liquid milk exist. Those are like Chitale,
Katraj, Krishnai, Mahanand, Amul, Warna, and many other local brands.

As per the findings CHITALE is the Market leader and having more market share. Awareness of
Amul dairy milk among the retailers as well as consumers is average 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, most of the consumer continuously using other brand and they do not want to switch over
other brand.




                                                     11
INTRODUCTION




     12
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 because purchasing
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 Pune 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.

                                                    13
       Addition to this we carried out sales promotion activity through discount coupons. Sales
promotion consists of diverse collection of incentive tools, most short-term designed to stimulate
and/or greater purchase of a particular product by consumers or the trade. Whereas advertise offers a
reason to buy, sales promotion offers incentive to buy. Sales promotion includes tools for consumer
promotion (for example samples, coupons, prizes, cash refund, warranties, demonstrations, contest);
trade promotion (for example buying allowance, free goods, merchandise allowances, co-operative
advertising, advertising and display allowances, dealer sales contests); sales force promotion (for
example bonuses, contests, sales rallies).

       Sales promotion efforts are directed at final consumers and designed to motivate, persuade
and remind them of the goods and receives that are offered.


2.2    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.
                •   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 little permanent gain in market share.




                                                    14
2.3    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.



2.4    Statement of The Problem:
       “MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN PUNE CITY”

       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”.




                                                  15
   INDUSTRY
      &
COMPANY PROFILE




       16
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 2007-08 and is
estimated at 655 million tonnes, only 9 million tonnes more than the production of 2006 – 2007.
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 tonnes 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 2004 and 2005 and then declined in 2006-07. It is expected to decline again in
2007-08. 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 2006-07 and it continued in the first half of 2007-08. The recovery is due to
prosperity resulting from economic demand. However, the bullish price situation is not likely to
continue long and would level down.


       Export of butter and butter-oil recovered in 2006-07 and this recovery continued in early
2007-08. The total volume of the world trade in cheese has accelerated and this trend is likely to
continue in the year 2008.



                                                17
       The outlook for the trade in dairy commodities for 2007-08 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 2007-08 at the same momentum as in
previous years. Because of the price situation in 2007-08, 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 can release 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 veiw of
expanding potential for export to Europe and the West. Morever with WTO regulations expected to
come into force in coming years all the develope countries which are amoung 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 litre 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
yhe 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 2010. This growth is going to come from the
greater emphasis on the processed food sector and also by increase in the conversation of milk into
milk products. By 2010, the value of Indian dairy produce is expected to be Rs 10, 00,000 million.
Presently the market is valued at around Rs7, 00,000mn.




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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 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.


        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), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). Nandini
(Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned            customer
confidence.




                                                  19
                 -:Some of the major dairy cooperative federations include:-



•             Andhra Pradesh Dairy Development Co-operative Federation Ltd (APDDCF)

•             Bihar State Co-operative Milk Producers Federation Ltd (COMPFED)

•             Gujarat co-operative Milk Marketing Federation Ltd (GCMMF)

•             Haryana Dairy Development Cooperative Federation Ltd. (HDDCF)

•             Himachal Pradesh State Cooperative Milk Producers Federation Ltd (HPSCMPF)

•             Karnataka Cooperative Milk Producers Federation Ltd (KMF)

•             Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF)

•             Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF)

•             Maharashtra Rajya Sahkari Maryadit Dugdh Mahasangh (Mahasangh)

•             Orissa State Cooperative Milk Producers Federation Ltd (OMFED)

•             Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF)

•             Punjab State Cooperative Milk Producers Federation Ltd (MILKFED)

•             Rajasthan Cooperative Dairy Federation Ltd (RCDF)

•             Tamilnadu Cooperative Milk Producers Federation Ltd (TCMPF)




3.1.4 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.


                                                  20
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 vast co-operative network,
of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And
have a proven model for dairy development (Generally known as “ANAND PATTERN”).

       In the early 40’s, the main sources of earning for the farmers of Kaira district were farming
and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the
milk was Polson dairy limited, which was a privately owned company and held monopoly over the
supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and
illiterates’ farmers by the private traders. The traders used to beside the prices of milk and the
farmers were forced to accept it without uttering a single word.




                                                  21
       However, when the exploitation became intolerable, the farmers were frustrated. They
collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom
movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-
operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri
Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha
village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of
the milk.




       These village societies would collect the milk themselves and would decide the prices at
which they can sell the milk. The district union was also form to collect the milk from such village
co-operative societies and to sell them. It was also resolved that the Government should be asked to
buy milk from the union.




                                                22
       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.




                                                  23
       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 from the far places,
there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the
chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it
for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is
collected from almost 1073 societies.

       With the financial help from UNICEF, assistance from the govt. of New Zealand under the
Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned.
Dr.Rajendra Prasad, the president of India laid the foundation on November 15, 1954. Shri Pandit
Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20, 1955.




                                                   24
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.




                                                 25
       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.

       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.




                                                  26
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.




                                                27
3.2.6 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.




                                                 28
       •   Internal Organization Structure:

       The following is internal organisation chart of Amul:


                               Organization Structure Chart

                                       Chairman



                                   Managing Director



                                    General Manager


                                  Ass. General Manager




Finance           Production            Marketing          Sales & Purchase   Personnel
 Dept.            Dept.                 Dept.                     Dept.              Dept.



Senior            Senior                Senior                  Senior         Senior
Manager           Manager               Manager                 Manager       Manager



Finance           Production           Marketing                Sales         Personnel
Manager           Manager              Manager                  Manager       Manager



Accountant         Officer             Marketing                Officer          P.R.F.
                                       Executive



Officers          Supervisor             F.S.R.                 Salesmen      Executive




                                                  29
3.2.7 Production Function:


       Explosion of the production technology and changes in technical field is going to bring out
revolution in the industry sector which eventually gives stand to study and favors the come backing
subject i.e. production and management.

       Production and operation management is planning, organizing, staffing, directing and
controlling of all the production system those portion of organization that convert inputs into
products and services. In general production system takes raw material, personnel, machines,
buildings and other resources and produce products and services.


       The core of production system is its conversion subsystem where in workers; raw materials
are used to convert inputs into products and services. This production department is at heart of the
firm, as it is able to produce low cost products and superior quality in timely manners.


         Thus, there arises enormous need of giving due importance to this department as a whole
and a strong concrete base being foundation pillars of a manufacturing organization, if the intention
is to succeed domestically and globally.




                                                  30
       •    Operating Analysis-

        Amul’s only source of raw material is Village Milk societies. Milk is brought from such
village milk societies every morning and evening. This milk is then sent to the dairy plant. In the
dairy plant the milk is processed i.e. it is made free from germs.
                · Milk Processing
                   The entire process of milk can be divided into following steps:
       Steps:
       Milk Processing Chart:


                              Collection of Raw-Milk
                                                               Electronic Milk Test


                                                               Methyline Blue Reduction Test
                      Purchasing And Standardizing Process




                                     Separation Process




                                     Quality Check




                                     Packaging Process




                                     Cold Storage



                                                 31
3.2.8 Distribution Network:
        Most producers work with marketing intermediaries to bring their products to market. The
marketing intermediaries make up a marketing channel also called distribution cannel. Distribution
channels are sets of interdependent organizations involved in the process of making a product or
service available for use or consumption.

        The Head Office of GCMMF is located at Anand. The entire market is divided in 5 zones.
The zonal offices are located at Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai. Moreover
there are 49 Depots located across the country and GCMMF caters to 13 Export markets.

         A zero level of channel also called a direct marketing channel consists of a manufacturer
selling directly to the final customers. A one level channel; contains one selling intermediary such as
retailer to the final customers. A two level channel two intermediaries are typically wholesaler and
retailer. A three level channel are typically wholesaler, retailer and jobber in between.

       GCMMF has an excellent distribution. It is its distribution channel, which has made it so
popular. GCMMF’s products like milk and milk products are perishable. It becomes that much
important for them to have a good distribution.


                                        Distribution Chart

                                               Products


                                                Agents


                                              Wholesaler


                                                Retailer


                                               Consumer




       We can see from above figure that GCMMF distribution channel is simple and clear. The
products change hands for three times before it reaches to the final consumer. First of all the
products are stored at the Agents end who are mere facilitators in the network. Then the products are
sold to wholesale dealers who then sell to retailers and then the product finally reaches the
consumers.


                                                  32
3.2.9 Managing Competition:


         The Indian market is dominated by a large number of small local and regional players. There
are an estimated 150 manufacturers in the organized segment, which accounts for 30-35% of sales
and about 1000 units in the unorganized segments of the market. In the organized segment the
significant brands are Kwality Walls , Vadilal, Amul, Havmor, Mother dairy and Baskins &
Robbins. GCMMF is facing very tough competition from both in and outside India.

         Amul combats competition from its competitors by providing quality products at a price
which its customers value. Along with good quality products and reasonable price the packaging is
also very good. Most of its products are available in many flavors. Excellent advertising backs its
products and helps GCMMF (AMUL) to leave its competitors a tough time. Also Amul has come
out with Amul Parlours to cater to various segments of customers. Amul has a very strong Brand
Image in the Domestic market. Many products are exported by GCMMF.


3.2.10 Advertising by Amul:

         Amul has two agencies that look after its entire range of products namely FCB Ulka and Da
Cunha.

          FCB Ulka looks after a broad range of products namely, Amul Lite Breadspread, Amul
Shrikhand, Amul Chocolates, Amul Paneer, Amul SnowCap Softy Mix Ice cream, Amul/Sagar
Ghee, Amul Infant Milk Formula 1 & 2, Sagar Tea and Coffee whitener, Amul Spray Infant Milk
Food, Amul Mithaee, Amul Gulab Jamun, Amulya Dairy Whitener, Mithaimate Sweetened
Condensed Milk, Amul Ice cream, Sagar Skimmed Milk Powder and Amul Whole milk Powder.

         Da Cunha looks after the Amul butter. Da Cunha also prepares the very popular Amul butter
billboard campaigns, which we see at various locations. Over and above the Amul butter, Da Cunha
also looks after the Amul Cheese, Cheese spread, Gouda Cheese, Emmental Cheese, Masti Dahi and
Buttermilk, Amul Slim-n-Trim, Amul Taaza and Amul Gold (all different brands of milk), Amul
Fresh Cream, Amul Chocolate Milk, Amul Fresh Milk and Nutramul.

         FCB Ulka also looks after the corporate campaign.
                                                 33
3.2.11 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




3.2.12 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.




                                                 34
3.2.13 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 - 2008-09):           3.05 billion litres
Milk collection (Daily Average 2008-09): 8.4 million litres

Milk Drying Capacity:                        626 Mts. per day
Cattlefeed manufacturing Capacity:           3500 Mts per day



3.2.14 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.



                                                 35
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 1985-86 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 cooperative 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.

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 top scorer in
      the service category of the prestigious IMC Ramkrishna Bajaj National Quality Award.

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

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




                                                 36
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

                                             37
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




                                       38
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


                                         39
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

Recently launched

   •   Amul Ganthiya




                                     40
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, Amul Ganthia
and Amul lite.




                                                41
Third plant is at Kanjari, which produces cattelfeed.




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




                                                42
 OBJECTIVE
      &
    SCOPE
OF THE STUDY




     43
4.1 Objectives of Project:


    The main objective of the Study can be listed as follows


     A. Primary Objective
         1. To find size of retail network of Amul Taaza and Amul Gold in specific              areas of
            Pune city.

         1. To find the problems faced by retailers in selling and storing.
         2. To collect the information about the competitors.


     B. Secondary Objective
         1. To organize sales promotional activities to improve milk selling.

         2. To generate and secure consumer awareness.



4.2 Scope of Project:

    The study carried out in Pune city so its scope is mainly limited to Pune 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.
             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




                                                 44
 RESEARCH
METHODOLOGY




     45
5.1        Research Methodology:

           The research was conducted from 8th June, to 8th July, 2009. 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.


5.1.1      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 Chitale or Katraj in order to have an unbiased opinion of the concerned

persons and it worked to achieve our goal.


5.1.2      Research Instrument:
           The research instrument was the structured questionnaire formulated for the respondents. The

questionnaire was different for the retailers and dealers and for the consumers there was a different

set of questionnaire. There were also the area maps.

5.1.3      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-

      1.      Open-ended question

      2.      Dichotomous question

      3.      Multiple-choice Question

        Both the questionnaire consists of all three types of question. Mostly all questions are
multiple type questions. Dichotomous question are few in number. There is only one open-ended
type question.

                                                    46
5.1.4   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 finally related to reason and

satisfaction.

5.1.5   Sampling Plan:

Sample Size:

The sample size was as follows:

SR. NO.                      RESPONDENT                    TOTAL NUMBER

1.                           Retailers                     169

2.                           Consumers                     95

3.                           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.



                                                 47
5.2.1 Product for Which Survey Was Conducted:-




Composition:
Variety                                   Fat (%)                SNF(%)*
Amul Gold (Whole Milk)                    6                      9
Amul Taaza (Toned milk)                   3                      8.5


*Every 100 parts of SNF (Solids Not Fat) contains 56 parts of carbohydrates, 34 parts of protein and
9 parts of minerals.

Special Features:
       Amul Milk is the most hygienic liquid milk available in the market. It is pasteurized in state-
of-the-art processing plants and pouch-packed to make it conveniently available to consumers.

Product Specification:
       Amul milk meets the PFA standards for the respective type of milk.

Pricing of the Milk
Amul Gold:
Price to distributor         :       Rs. 25.37
Price to Retailer            :       Rs. 26.00
MRP                          :       Rs.27.00

Amul Taaza:
Price to distributor         :       Rs. 20.57
Price to Retailer            :       Rs. 21.00
MRP                          :       Rs. 22.00

                                                 48
5.3.1 Area of Operation:
The areas of operation were the research was done are as follows:

   •       Sahakar Nagar
   •       Upper
   •       Sukhsagar Nagar
   •       Bibewadi
   •       Balaji Nagar
   •       Dhankwadi

How the survey conducted
       To approach the outlets with the following requirements in mind


At Approach:
   •       What type of shop it is? (hotels, amrutulya, 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 ?
   •       Does the delivery of milk is on time ?
   •       What is the mode of payment credit or cash ?


                                                    49
Others:


   •      Types of schemes given to him.
   •      What are the uses of milk ?


Addendum:
   •      Outlets may include institutions, general stores, mithai shops, super market, canteens,
          juice bars, ice-cream corners etc.
   •      These sectors were chosen because the company believed that these segments could be
          the best potential buyers for this product.




                                                 50
DATA PROCESSINNG
       &
    ANALYSIS




       51
6.1     Data Analysis For Retailers:-

      1) Number of retailers stocking Amul milk.



                               Answer           No. of            Percentage
                                             respondents
                         Yes               55                  20%

                         No                114                 80%




                                                                               Yes
                                                                               33%




                                                                                             Yes
                                                                                             No




            No
           67%




       Interpretation:


       • The above graph indicates that only 1/3rd of the retailers are selling Amul milk.
       • It shows that Amul milk brand is not popular among the retailers.




                                                   52
   2) Sizes of Amul milk packets retailers preferred to store.
        (Out of 169 retailers only 55 were buying Amul milk.)



                                Answer                      No. of
                                                         respondents
                                250ml                0

                                500 ml               32

                                1 Ltr                23
                                5 Ltr                0




         5 Ltr       0


         1 Ltr                                                     23


       500 ml                                                                       32


       250ml         0


                 0       5         10          15           20          25    30         35

                                           No. of respondents



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 5 Ltr. Pouch there was no customers demand.
   •    250 ml pouches were not available to retailers.

                                                    53
   3) Reasons for Amul milk not stored by retailers.

        (Out of 169 retailers 114 were not buying Amul milk.)


                                                                      No.         of
                  Answer
                                                                      respondents
                     Absence of packaging date                        6

                      Low margin                                      75

                     No replacement for leakage                       20
                     No distribution                                  13




             No distribution                13


         No replacement for
                                                  20
              leakage


                Low margin                                                              75


       Absence of packaging
                                   6
              date


                               0       10        20      30      40   50    60     70    80

                                                 No. of respondents


Interpretation:
   •    From above graph it is clear that half of the retailers were not satisfied with Amul
        replacement and margin policy.
   •    Some retailers responded about absence of packaging date.
   •    Very less retailers complained about distribution network

                                                       54
      4) Preference of retailer’s to milk brand.


                             BRANDS                                RESPONDENTS
                             Amul
                                                                   15
                             Chitale
                                                                   77
                             Katraj
                                                                   45
                             Gokul
                                                                   6
                             Others
                                                                   26



          Others                            26


           Gokul        6


           Katraj                                        45


          Chitale                                                                   77


           Amul                  15


                    0       10         20    30    40         50        60   70     80   90

                                                  RESPODENT
  .                                               S

Interpretation:
      •   The above graph shows that the Chitale is most preferable brand in all.
      •   Some retailers also prefers Katraj and others brands.




                                                    55
   5) Sources from where retailers get Amul milk

       (Out of 169 retailers only 55 were buying Amul milk.)


                              Answer No.         of Percentage
                                     respondents
                      Distributors   52             95 %

                     Other suppliers    3                   5%




Interpretation:
   •    Almost all retailers said that they purchased milk from Amul distributors.




                                                56
   6) Retailer’s satisfaction with Amul distributor.

       (Out of 169 retailers only 55 were buying Amul milk)


                       Answer           No.         of Percentage
                                        respondents
                       Yes              34             62 %

                       No               21                 38 %




              No
             38%




                                                                                         Yes

                                                                              Yes        No
                                                                              62%




Interpretation:


   •   Graph shows that most of the retailers were satisfied with the service provided by the Amul
       distributors.




                                               57
   7) Awareness among retailers about different Sales Promotional activities for Amul milk.
        (Out of 169 retailers only 55 were buying Amul milk.)



       Activities                      Aware                             Not aware
       Price off                       37                                18
       Free samples                    13                                42
       Credit facility                 16                                39
       Advertisement                   49                                6
       P-O-P Displays                  41                                14
       Coupons                         50                                5




       60
       50                                                   6                          5
                   18                                                        14
       40
                               42            39
       30
                                                           49                          50
       20          37                                                        41
       10                                    16
                               13
       0
              Price off   Free samples Credit facility Advertisement    P-O-P        Coupons
                                                                       Displays


                                            Aware    Not aware



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 coupons scheme during festivals.
   •    Credit facility and free samples were not provided to single retailers.




                                                    58
   8) Interest of retailers in wholesale distribution of Amul milk.



                              Answer               No. of           Percentage
                                                respondents
                                Yes                  27               16 %

                                 No                  142              84 %




                                                              Yes
                                                              16%




                                                                                          Yes
                                                                                          No




                        No
                       84%




Interpretation:
   •   Graph represents the interest of the retailers to start Amul milk distribution .The questions
       asked to increase the retail coverage.
   •   Most of the retailers were not interested.
   •   Only 16% of the retailers were ready to start Amul distribution.



                                                    59
   9) Awareness among retailers for Amul Parlor (APO) and its benefits.
       (Out of 169 retailers only 118were questioned as they had large store.)



                          Answer              No. of           Percentage
                                           respondents
                            Yes                 70                 59 %

                             No                  48                41 %




              No
             41%



                                                                                               Yes
                                                                                               No


                                                                             Yes
                                                                             59%




Interpretation:
   •   APO is the outlet where you get Amul milk and milk products and it helps to increase the
       market share. This question asked to the retailers who were strong enough in capital.
   •   From graph it can be interpreted that the awareness about APO is very low.




                                                 60
    10) Interest of retailers in opening an Amul Parlor (APO).
         (Out of 169 retailers only 118 were questioned as they had large store.)



                            Answer              No. of            Percentage
                                             respondents
                             Yes                  15                13 %

.                             No                 103                87 %


                                                            Yes
                                                            13%




                                                                                               Yes
                                                                                               No




                       No
                      87%




Interpretation:


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




                                                  61
   11) Consumer’s expectation from Amul milk.
       (Out of 169 retailers only 55 were buying Amul milk.)

                  ATTRIBUTE                                   RESPONDENTS
                  Good quality                                          7

                  Clear packaging date                                  23

                  Availability                                          25




             Availability                                                          25




    Clear packaging date                                                     23




            Good quality                 7



                            0      5          10         15        20             25     30

                                             RESPODENT
                                             S


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.



                                                62
   12) Ratings from retailers for attributes of Amul milk.
        (Out of 169 retailers only 55 were questioned as they buying Amul milk.)
              Attribute
                                           Brand
            Rating          Quality                       Availability     Packaging   Margin
                                           image

            Very good         37            48                  34             5          0
            Good              13            7                   15             2          0
            Average            5            0                   0              48         0
            Bad                0            0                   6              0          0
            Very bad           0            0                   0              0         55
            Total             55            55                  55             55        55



       60
                     0             0                  0                    0
                     5             7                  6
       50                                             0
                     13                              15
       40

       30                                                                 48
                                                                                        55
                                   48
       20            37                              34
       10
                                                                           2
                                                                           5
       0                                                                                 0
                  Quality    Brand image         Availability         Packaging        Margin


                            Very good   Good       Average          Bad   Very bad

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 satisfied with the Amul milk distribution.
   •    PACKAGING DATE: Most of the retailers were not satisfied about not printing of
        packaging date and they were facing a problem regarding same.
   •    MARGIN: All retailers were not satisfied with the margin policy given by Amul.


                                                    63
6.2      Data Analysis for Customers:-

      1) Number of customers purchasing Amul milk.



                               Answer         No. of          Percentage
                                           respondents
                         Yes             30                 32%

                         No              65                 68%




                                                                         Yes
                                                                         32%




                                                                                         Yes
                                                                                         No




             No
            68%




       Interpretation:


       • The above graph indicates that only 32% of the customers are purchasing Amul milk.
       • It shows that Amul milk brand is not popular among the customers.




                                                64
   13) Ratings from customers for attributes of Amul milk.
        (Out of 95 customers only 30 were questioned as they buying Amul milk.)
              Attribute
                                           Brand
            Rating          Quality                       Availability        Packaging   Price
                                           image

            Very good         18            25                  16                5         6
            Good               9            5                   9                 2         13
            Average            3            0                   0                 15        11
            Bad                0            0                   5                 8         0
            Very bad           0            0                   0                 0         0
            Total             30            30                  30                30        30



       35

       30            0             0                  0                       0            0
                     3             5                  5
       25                                             0                       8
                                                                                           11
                     9
       20                                             9

       15                                                                    15
                                   25                                                      13
       10            18                              16
       5                                                                      2
                                                                              5            6
       0
                  Quality    Brand image         Availability             Packaging       Price


                            Very good   Good       Average          Bad     Very bad

Interpretation:
From the above graph it can be concluded that

   •    QUALITY: Most of the customers were satisfied with Amul milk quality.
   •    BRAND IMAGE: The graph shows that Amul is having good brand image.
   •    AVAILABILITY: Most of the customers were satisfied with the Amul milk distribution.
   •    PACKAGING DATE: Most of the customers were not satisfied about not printing of
        packaging date and they were facing a problem regarding same.
   •    PRICE: Some customers were not satisfied with the price given by Amul.

                                                   65
      14) Preference of retailer’s to milk brand.


                          BRANDS                                           RESPONDENTS
                          Amul
                                                                           15
                          Chitale
                                                                           44
                          Katraj
                                                                           11
                          Gokul
                                                                           8
                          Others
                                                                           17




                                                       17
          Others


                                   8
           Gokul


                                        11
           Katraj


                                                                                               44
          Chitale


                                                  15
           Amul


                    0    5         10        15             20        25        30   35   40   45


                                                  RESPODENTS
  .
Interpretation:
      •   The above graph shows that the Chitale is most preferable brand in all.
      •   Some customers also prefers Katraj and others brands.




                                                                 66
6.3     Data Analysis for Sales Promotion Activity:-
We carried sales promotion activity at two places of Pune city
                  1. Sahakar nagar
                  2. Sinhgad road

      Store name                                                    Sales(Ltr)
                       Initially    Day 1         Day 2           Day 3      Day 4            Day 5   Day 6       Day 7
         Sai              0             10         5               5              5            5       5           5
       Vaishali           0             15         15              15             15           15      15          15
  New hanuman             5             20         15              15             15           15      15          15
      Hanuman             15            30         25              25             25           25      25          25
        Durga             5             10         10              8              8            8       8           8




                                                 Sales (Ltr)
       35

       30                30

       25                          25        25         25         25        25          25
                                                                                                       sai
       20                20
                                                                                                       vaishali
       15         15     15        15        15         15         15        15          15            hanuman

       10                10                                                                            new
                                   8         8          8          8         8           8             hanuman
        5         5                5         5          5          5         5           5             Durga

        0         0
            initially Day 1    Day 2    Day 3     Day 4       Day 5       Day 6       Day 7


Interpretation:
       • Most of the retail outlets were not interested in Amul milk selling, but after launching
         coupons scheme, not only sales shoot up by considerable amount initially but also remain
         constant for next days.

       • In case of Sai and Vaishali retail outlet they were not interested in Amul milk selling but
         now they are selling 20 Ltr of milk daily. And they said if response will remain same they
         will increase milk order.
                                                             67
OBSERVATION
     &
  FINDINGS




     68
7.1 Observation Findings:-


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

     • Retailers are not interested because they don’t have storage facility but if company provides
       them such facility they will be sale Amul milk.

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

     • The 250 ml and 5 Ltr milk pouch are no available to the retailers for selling.

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

     • Retailers were selling different brands. Because they were able to receive more margin from
       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 are taking
       the advantage of such activities.

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

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

     • I found that customers were complaining about the packaging especially packaging date
       because Amul do not print packaging date on pouch.

     • When question came to retailers ratings towards Amul milk rating most of the most
       respondents complaining about profit margin and packaging date.



                                                 69
     • During campaign it is found that the mindset of consumers towards Chitale milk is very high
       and hence it has become a milk maket player. As from the sales chart it is clear that the sales
       of Chitale pouch milk is 50% more then Amul pouch milk.

     • 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.



7.1.2 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 only around 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 other milk
       brands are available in the market.


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

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

     • The preference of purchasing milk by the bulk users is mainly quality, price and timely
       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 against
       company’s norms and policies.



                                                  70
LIMITATIONS




     71
Limitations:-
This report had to work under several constraints and limitations. Some of the key limitation are.
   .
   1.      The survey is limited only for six wards.
   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.      Respondents may not have been true in answering various questions and may be biased to
           certain other questions.
   7.      Out of the whole research and analysis, only three major brands could be highlighted,
           leaving aside the other non-popular brands.
   8.      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.
   9.      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.




                                                  72
CONCLUSION




    73
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 Pune 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 Chitale, Katraj,Gokul & Krushnai
       provide a better availability and give competition to the hilt.


       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



                                                       74
.




      SUGGESTIONS
          &
    RECOMMENDATION




          75
Suggestions & Recommendation:-
       The Milk products market has reached Maturity stage in India large no. of Co-operatives
having 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, so that they
can take interest in selling of Amul milk products. This can be done as follows

     • Company should start printing packaging date on milk pouch.

     • Amul has a relatively good distribution network, but still company is not able to fulfill the
       demand of outlet in the peak season when demand is very high. Here company should
       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 roads and
       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 motivates them to
       promote company’s milk and milk products.

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

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

     • Provide consistent service to retailers as this will help gain company goodwill in the market.

     • Do not change distributor frequently, because he is the only person who act as a connecting
       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 invest more
       money in Brand promotion and marketing in Pune, it will be beneficial for the company in
       the long run as well as in the short run.

     • For Brand promotion and marketing of Amul milk in Pune it should introduce a mascot for
       the Amul milk as it already has for Amul Butter i.e. The Amul Butter Girl in order to gain a
       good position in the mind of customers. This will also help in easy Brand differentiation and
       Recognition.


                                                   76
• Also advertising on the television, Radio Mirchi and Sponsorship of the events, Trade Fairs
  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 local players in
  the Pune market like Chitale, Katraj and Gokul etc. It will help the company in increasing its
  Dealers network, Market share, Customer base etc. It will also save time of establishing a
  new manufacturing unit.

• Our Research revealed that there is no awareness among the consumers regarding the Amul
  milk in Pune. 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 members of the school and colleges.

• The pamphlets should be printed in such a way that it not only advertise about the milk but
  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 the other
  side of it.

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

• Special offers should be there for dealers, retailers and consumers at the time of diwali and
  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 should also
  add some preservatives in the milk as people not only see quality but also sees the time
  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 back by
  appointing separate company representatives.

• Timely visit should be given to the retail shops.




                                            77
BIBLIOGRAPHY
     AND
WEBLIOGRAPHY




     78
Books:


  i.   Marketing Management (12th Edition) – Philip Kotlar

 ii.   Research Methodology – C. R. Kothari




Websites:


  i.   www.google.co.in

 ii.   www.wikipedia.com

iii.   www.amul.com.

 iv.   www.marketresearch.com

 v.    www.dairy.com




                                           79
ANNEXURE




   80
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) 250 ml
         b) 500 ml
         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
             •   Chitale
             •   Katraj
             •   Gokul
             •   Others



                                                81
5) From where do you get Amul milk?


       a) Distributors
       b) Other suppliers


6) Are you satisfied with Amul distributor?

       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) Are you aware of Amul Parlor (APO) and its benefits?

       a) Yes
       b) No


10) Are you interested in opening an Amul Parlor (APO)

       a) Yes
       b) No



                                        82
11) What is consumer’s expectation from Amul milk?
       a) Good quality
       b) Packaging
       c) Availability


12) 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




                                         83
QUESTIONNAIRE:-

(Customer survey)



Name of the shop: __________________________________________________
Retailer Name: ____________________________________________________
Address: __________________________________________________________



      1)    Do you know about Amul?

            Yes           No

      2)    What are the products of Amul you use very frequently?

            Butter        Cheese        Shrikhand         Milk Powder

            Dahi          Milk          Ice-Cream         Butter Milk

      3)    Do you regularly get the Amul Milk?

            Yes           No

      4)    Which brand’s milk do you like most?

            Amul          Katraj        Chitale        Gokul

            Other (Specify)……………………..

      5)    Do you know about Amul God and Taaza?

            Yes           No

      6)    How is the taste of Amul Gold?

            Poor       Satisfactory     Excellent




                                             84
7)    How is the taste of Amul Tazza?

      Poor           Satisfactory       Excellent

8)    What about the price of Amul milk?

      Low           Average          High

9)    How is the packing of Amul milk?

      Poor           Good           Excellent

10.   Do you like the home delivery scheme of Amul Milk?

      Yes            No



11.   Give your ratings to following attributes of Amul milk.


                              Very good      Good       Average   Bad   Very bad


      f) Quality
      g) Brand image
      h) Availability
      i) Packaging
      j) Price




12.   Any suggestion about Amul milk:




                                        85

				
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