“Customer satisfaction and Market analysis of Amul Milk and

Amul Milk Products”

Summer Training Project Report

Submitted to

Dr. A P J Abdul Kalam Technical University, Lucknow

In partial fulfillment of the requirements of the degree of

Master of Business Administration

Prepared by: Training Supervisor:

Asad Ayaz Mr. Awadhesh Singh

MBA 3rd Semester Territory Sales Manager

Roll Number: 1704070003 Amul India, Lucknow

Enrollment No.170407034700

2018-19
 Department of Business Administration

Technical Education & Research Institute

Post-Graduate College, Ghazipur – 233001 (U.P.)

 Preface
The first real insight of an organization for management student comes only during his preparation

of project work because student first interacts with real practical work. This is first introduction to

industry and its working. This project work synthesize the theoretical concept learn in the class room

and its practical orientation in organization.

In my project I have studied the “Customer satisfaction and market analysis of Amul milk and

Amul milk Product.”

FIRST CHAPTER:-

The First chapter deals with the introduction of the topic, It also describes the profile and history of

Impact of Globalization

SECOND CHAPTER:-

Second chapter deals with the objectives and scope

THIRD CHAPTER:-

Deals with Research Methodology. The process of carrying out the whole research is defined in it.

It constrains information about the methods of data collection, sampling, sample design.

Data analysis & interpretation, Table, Graph and chart also included in this chapter

FOURTH CHAPTERS:-

Data analysis & interpretation, Table, Graph and chart also included in this chapter.

FIFTH CHAPTERS:-
Contains the findings and recommendation of the study. This based on the data analyzed and

interrelated in previous chapters. This is the most important section of the report, for repot is

evaluated on the validity and correctness of its findings.

SIXTH CHAPTERS:-

It shows annexure which contains a format of the questionnaire used for the purpose of data

collection and title conclusion contains the list of sources from where the matter and information is

collected this chapter is Bibliography. It contains the list of books, author, volume number, issue

year, publisher etc.

Asad Ayaz
 Acknowledgement

It is my pleasure to be indebted to various people, who directly or indirectly contributed in the

development of this work and who influenced my thinking, behavior, and acts during the course

of study.

I express my sincere gratitude to Mr. Awdhesh Singh (Territory Sales Manager), worthy

Principal for providing me an opportunity to undergo summer training.

I am thankful to Mr. Piyush Sharma for his support, cooperation, and motivation provided to me

during the training for constant inspiration, presence and blessings

Lastly, I would like to thank the almighty and my parents for their moral support and my friends

with whom I shared my day-to-day experience and received lots of suggestions that improved

my quality of work.

31st October 2018 Asad Ayaz

MBA 3nd semester

Department of Business Administration
Technical Education & Research Institute
P.G. College, Ghazipur
 INDEX
SR.NO PARTICULARS

CHAPTER -1 Introduction and history

 History

 Introduction to Indian dairy industry

Literature review & problem statement:-

 Literature review and problem statement

 Market size and growth

 Major players

 Packaging technology

 Regulatory framework

 Company profile

 Amul in abroad

 GCMMF

 Birth of Amul

CHAPTER-2 Objective & Scope

CHAPTER-3 Research & Methodology

CHAPTER-4 Data analysis & interpretation

 Data analysis for retailers

 Data analysis for customers

  Process description

 Product mix of Amul

 Amul plant

 The channel network

 Procurement channel

 Anand Patten

 SMC and market logistic

 Amul parlor's

 Selection, motivation and evaluation of channel members

 Conflict and cooperation among channel members

Process description:

 Product information

 Sales and profit

 Distribution channel of Amul

 Transportation method

 Competitors analysis

CHAPTER-5 findings and suggestions

CHAPTER-6 Conclusion, bibliography & Questionnaire

 CHAPTER- 1
INTRODUCTION &
HISTORY
 EXECUTIVE SUMMARY

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 growth of a company is invariably
determined not just by its strategy, but on how it responds to the challenges it encounters. Over
the decades AMUL has successfully countered several challenges that have come its way with
innovative responses and continuous improvement, which have enabled it to remain stable and
even convert some of these challenges into opportunities. It is the culture of endurance that has
accorded AMUL the insight and focus to deal with the current economic environment. Drawing
from its inner strength and beliefs, AMUL responded by launching several initiatives across all
its operations in various geographies that are helping the group achieve growth even in current
times. It is also this very strategic culture that will propel AMUL to continue on its growth
trajectory in years to come.

The report provides a comprehensive insight into the company and also about the company’s
SWOT analysis. This report mainly studies in detail the various product mix strategies of the
company and also focuses on the segmentation of both company based and industry based and
helps in analysing the company’s competitive advantage and the reason behind its success.
 HISTORY

In early 1940’s a farmer in Kaira district, as elsewhere in India, derived his income almost
entirely from seasonal crops. The income from milk was paltry and could not be depended upon.
The main buyers were milk traders of Polson Ltd.-a privately owned company that enjoyed

monopoly for supply of milk from Kaira to the Government Milk Scheme Bombay. The system
leads to exploitation of poor and illiterate farmers by the private traders.

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

cooperative union, instated of supplying milk to private traders. Sardar Patel sent the farmer to

Shri MorarjiDasai in order to gain his Co-operation and help. Shri Dasai held a meeting at

‘Samrkha’ village near Anand, on January 4, 1946. He advised the farmers to from a society for

collection of the milk.These village societies would collect the milk themselves and also decided

prices for that which would be profitable for them. The district union was also from to collect the

milk from such village cooperative societies and to sell them. It was also resolved that the

government should asked to buy milk from the union

However, the government did not seem to help farmer by any means. It gave the negative

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

farmer of Kaira district went on a milk strike. For 15 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. Finely he decided to fulfill the farmers

demand.

Thus their cooperative unions were forced at village and district level to collect and sell milk on

a cooperative basis, without the intervention of government. Mr. VergheseKurien had main

interest in establishing union who was supported by Shri Tribhuvandas Patel who convinced

farmers in forming the cooperative unions at thevillage level. ‘The Kaira District Co-operative

Milk Producers’ Union’ was thus established in Anand and was registered formally under

section 10 of Bombay Act VII of 1925 on December 14, 1946. Since then farmers are selling all

the milk in Anand through cooperative union. In 1955 it was commonly decided the sell milk

under the brand name ‘Amul’

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

awareness of the benefits of the co-operative-ness the collection of milk increased. Today Amul

collect 50, 00,000 liters of milk everyday. As the milk is perishable commodity it became

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 over come this problem the union thought to

develop the chilling unit at various junctions, which would collect the milk and could chill so as

preserve it a for a longer period. Thus, today Amul has more than 168 chilling centers in various

villages. Milk is collected from almost 1097 societies.

With the financial help from UNICEF, assistance from the government of New Zealand under
the Colombo plan, of Rs. 50 million for factory to manufactory milk powder and butter. Dr.
Rajendara Prasad, the president of India laid the foundation on November 50, 1954. Shri Pandit
Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20,
1955.
 A plant to manufacture balanced cattle feed was formally commissioned on October 31,

1964 by Shri LalbahadurShastri, the Prime Minister of India. At the request of the government of

India, a new dairy with a capacity to manufacture 40 tons of milk powder and 20 tons of butter a

day was completed in 1963. This was meant to meet the requirement of India’s defense forces.

The dairy was declared open by ShriMorarji Desai in April, 1965. in 1974, the Kaira Union

setup a plant to manufacture high-protein weaning food, chocolate and malted food at Mogar,

about 8 km south of Anand.

In September, 1981, the second cattle feed plant at ‘Kanjari’ were started. The succesion

of the co-generation project on September 11, 1985, marked a milestone on the energy front

when two gas turbine generators of 1.5 MW each based on natural gas, were commissioned. On

October 31, 1992, Dr. V. Kurien chairman, National Dairy Development Board, laid the

foundation of Kaira Union’s third dairy with a processing capacity of 6.5 lakh liters of milk a

day. Work on the third dairy and cheese plant at ‘Khatraj’ with capacity for 20 Metric Ton of

cheese per day, began in February, 1994. Also in 1994, Kaira Union put up bread spread plant at

‘Mogar’ with the assistance from National Dairy Development Board.

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

marketing organization. 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.

Members: 13 district cooperative milk producers' Union
No. of Producer Members: 2.6 million
No. of Village Societies: 12,792
Total Milk handling capacity: 10.16 million litres per day
Milk collection 2.38 billion litres
Milk collection 6.5 million litres
Milk Drying Capacity: 594 Mts. per day
Cattle feed manufacturing Capacity: 2640 Mts per day

About Machinery

In AMUL – 3 production of powder, Butter and Milk are being done continuously.

These productions are done by latest machineries equipped with computer system and it

is handled by one technicians.

- The Milk pasteurizer machines belong to Alfa level company of Pune

- Powder plant machineries belong to L & T Larson and Turbo company of India

- Butter production machineries belong to S.G.company of switrzland and other

- Butter manufacturing production machineries belong to Simon Ferescom.of

France
LITERATURE REVIEW & PROBLEM STATEMENT:-

ORGANISATION STRUCTURE OF AMUL

BOARD OF DIRECTOR

CHAIRMAN

MANAGING CHAIRMAN

GENERAL MANAGER

ASSISTANT GENERAL MANAGER

MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER
 SENIOR EXECUTIVE

SENIOR OFFICER

SENIOR ASSITANT

WORKERS

GRADE ( A to E)

.
INTRODUCTION TO THE INDIAN DAIRY INDUSTRY

The world's biggest dairy producing country is growing fast and looking to become an export

powerhouse despite major quality problems...

A Note to our Readers: the following information on India's dairy sector is reproduced from

India Infoline.com. India is the world's largest milk producing country and is growing fast, with

an eye toward becoming a major dairy exporter. This article is helpful reading for anyone

interested better understanding.

CONSUMER HABITS AND PRACTICES

Milk has been an integral part of Indian food for centuries. The per capita availability of milk in

India has grown from 172 gm per person per day in 1972 to 182gm in 1992 and 203 gm in 1998-

99.This is expected to increase to 212gms for 2008. However a large part of the population

cannot afford milk. At this per capita consumption it is below the world average of 285 gm and

even less than 220 gm recommended by the Nutritional Advisory Committee of the Indian

Council of Medical Research.

There are regional disparities in production and consumption also. The per capita availability in

the north is 278 gm, west 174 gm, south 148 gm and in the east only 93 gm per person per day.

This disparity is due to concentration of milk production in some pockets and high cost of

transportation. Also the output of milk in cereal growing areas is much higher than elsewhere

which can be attributed to abundant availability of fodder, crop residues, etc which have a high

food value for milky animals.

In India about 46 per cent of the total milk produced is consumed in liquid form and 47 per cent

is converted into traditional products like cottage butter, ghee, paneer, khoya, curd, malai, etc.

Only 7 per cent of the milk goes into the production of western products like milk powders,

processed butter and processed cheese. The remaining 54% is utilized for conversion to milk
products. Among the milk products manufactured by the organized sector some of the prominent

ones are ghee, butter, cheese, ice creams, milk powders, malted milk food, condensed milk

infants foods etc. Of these ghee alone accounts for 85%.

It is estimated that around 20% of the total milk produced in the country is consumed at
producer-household level and remaining is marketed through various cooperatives, private
dairies and vendors. Also of the total produce more than 50% is procured by cooperatives and
other private dairies.

While for cooperatives of the total milk procured 60% is consumed in fluid form and rest is used
for manufacturing processed value added dairy products; for private dairies only 45% is
marketed in fluid form and rest is processed into value added dairy products like ghee, makhan
etc.

Still, several consumers in urban areas prefer to buy loose milk from vendors due to the strong

perception that loose milk is fresh. Also, the current level of processing and packaging capacity

limits the availability of packaged milk.

The preferred dairy animal in India is buffalo unlike the majority of the world market, which is

dominated by cow milk. As high as 98% of milk is produced in rural India, which caters to 72%

of the total population, whereas the urban sector with 28% population consumes 56% of total

milk produced. Even in urban India, as high as 83% of the consumed milk comes from the

unorganized traditional sector.

Presently only 12% of the milk market is represented by packaged and branded pasteurized milk,

valued at about Rs.8, 000 crores. Quality of milk sold by unorganized sector however is

inconsistent and so is the price across the season in local areas. Also these vendors add water and

caustic soda, which makes the milk unhygienic.

Market Size and Growth

Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued at

Rs470bn. The market is currently growing at round 4% pa in volume terms. The milk surplus

states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra

Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in

these milk surplus States. The top 6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh,

Rajasthan, Tamil Nadu and Gujarat together account for 58% of national production.

Milk production grew by a mere 1% pa between 1947 and 1970. Since the early 70's, under

Operation Flood, production growth increased significantly averaging over 5% pa.

About 75% of milk is consumed at the household level which is not a part of commercial dairy

industry. Loose milk has a larger market in India as it is perceived to be fresh by most

consumers. In reality however, it poses a higher risk of adulteration and contamination.

The production of milk products, i.e. milk products including infant milk food, malted food,

condensed milk & cheese stood at 3.07 lakh MT in 2008. Production of milk powder including

infant milk-food has risen to 2.25 lakh MT in 2008, whereas that of malted food is at 65000 MT.

Cheese and condensed milk production stands at 5000 and 11000 MT respectively in the same

year.

Major Players(competitors)

The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative Milk

Marketing Federation (GCMMF) is the largest player. All other local dairy cooperatives have

their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in Rajasthan, Verka in Punjab,

Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, etc). Other private players include J K Dairy,

Heritage Foods, Indiana Dairy, Dairy Specialties, etc. Amrut Industries, once a leading player in

the sector has turned bankrupt and is facing liquidation.

Packaging Technology

Milk was initially sold door-to-door by the local milkman. When the dairy co-operatives initially

started marketing branded milk, it was sold in glass bottles sealed with foil. Over the years,

several developments in packaging media have taken place. In the early 80's, plastic pouches

replaced the bottles. Plastic pouches made transportation and storage very convenient, besides

reducing costs. Milk packed in plastic pouches/bottles have a shelf life of just 1-2 days, that too

only if refrigerated. In 1996, Tetra Packs were introduced in India. Tetra Packs are aseptic

laminate packs made of aluminum, paper, board and plastic. Milk stored in tetra packs and

treated under Ultra High Temperature (UHT) technique can be stored for four months without

refrigeration. Most of the dairy co-operatives in Andhra Pradesh, Tamil Nadu, Punjab and

Rajasthan sell milk in tetra packs. However tetra packed milk is costlier by Rs5-7 compared to

plastic pouches. In 2008-00 Nestle launched its UHT milk. Amul too relaunched its AmulTaaza

brand of UHT milk. The UHT milk market is expected to grow at a rate of more than 10-12% in

coming years.
Regulatory Framework

The dairy industry was de-licensed in 1991 with a view to encourage private investment

and flow of capital and new technology in the segment. Although de-licensing attracted a large

number of players, concerns on issues like excess capacity, sale of contaminated/ substandard

quality of milk etc induced the Government to promulgate the MMPO (Milk and Milk Products

Order) in 2008. Milk and Milk Products Order (MMPO) regulates milk and milk products

production in the country. The order requires no permission for units handling less than 10,000

litres of liquid milk per day or milk solids up to 500 TPA. MMPO prescribes State registration to

plants producing between 10,000 to 75,000 litres of milk per day or manufacturing milk products

containing between 500 to 3,750 tones of milk solids per year. Plants producing over 75,000

litres per day or more than 3,750 tones per year of milk solids have to be registered with the

Central Government. The stringent regulations, government controls and licensing requirements

for new capacities have restricted large Indian and MNC players from making significant

investments in this product category. Most of the private sector players have restricted

themselves to manufacture of value added milk products like baby food, dairy whiteners,

condensed milk etc.

All the milk products except malted foods are covered in the category of industries for

which foreign equity participation up to 51% is automatically allowed. Ice cream, which was

earlier reserved for manufacturing in the small-scale sector, has now been de-reserved. As such,

no license is required for setting up of large-scale production facilities for manufacture of ice

cream.

Subsequent to de-canalization, exports of some milk based products are freely allowed provided

these units comply with the compulsory inspection requirements of concerned agencies like:

National Dairy Development Board, Export Inspection Council etc. Bureau of Indian standards

has prescribed the necessary standards for almost all milk-based products, which are to be

adhered to by the industry.

Proposal to Amend the MMPO

A proposal to raise the exemption limit for compulsory registration of dairy plants, from

the present 10,000 litres a day to 20,000 litres, is being considered by the Animal Husbandry

Department. The 75,000-litre limit is likely to be raised either to 100,000 litres or 125,000 litres

in the amended order. The new order would also do away with the provision for re-registration.

Penetration of milk products

Western table spreads such as butter, margarine and jams are not very popular in India.

All India penetration of butter/ margarine is only 4%. This is also largely represented by urban

areas, where penetration is higher at 9%. In rural areas, butter/ margarine have penetrated in

2.1% of households only. The use of these products in the large metros is higher, with

penetration at 15%.

Penetration of cheese is almost nil in rural areas and negligible in the urban areas. Per capita

consumption even among the cheese-consuming households is a poor 2.4kg pa as compared to

over 20kg in USA. The lower penetration is due to peculiar food habits, relatively expensive

products and also non-availability in many parts of the country. Butter, margarine and cheese

products are mainly manufactured by organized sector.

Similarly, penetration of ghee is highest in medium sized towns at 37.2% compared to

31.7% in all urban areas and 21.3% in all rural areas. The all India penetration of ghee is 24.1%.

In relative terms, penetration of ghee is significantly higher in North and West, which are milk

surplus regions. North accounts for 57% of ghee consumption and West for 23%, South & East

together account for the balance 20%. A large part of ghee is made at home and by small/

cottage industry from milk. The relative share of branded products in this category is very low at

around 1-2%.
 Milk powder and condensed milk have not been able to garner any significant consumer

acceptance in India as indicated by a very low 4.7% penetration. The penetration is higher at

8.1% in urban areas and lower at 3.5% in rural areas. Within urban areas, it is relatively higher in

medium sized towns at 8.5% compared to 7.7% in large metros.

Export Potential

India has the potential to become one of the leading players in milk and milk product exports.

Location advantage: India is located amidst major milk deficit countries in Asia and Africa.

Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore,

Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located close to

India.

The major export products: - The products of Amul is being exported in the 40 countries of

the world . Many of the products are now available in the U.S.A , Gulf countries and Singapore.

Amul products are being exported to the Singapore since last three decades . undoubtedly , Amul

is the preferred taste of Indians in the Gulf countries.

Low Cost of Production:

Milk production is scale insensitive and labour intensive. Due to low labour cost, cost of

production of milk is significantly lower in India.

Concerns in export competitiveness are.

Quality: Significant investment has to be made in milk procurement, equipments, chilling and

refrigeration facilities. Also, training has to be imparted to improve the quality to bring it up to

international standards.

Productivity: To have an exportable surplus in the long-term and also to maintain cost

competitiveness, it is imperative to improve productivity of Indian cattle.

There is a vast market for the export of traditional milk products such as ghee, paneer,

shrikhand, rasagulas and other ethnic sweets to the large number of Indians scattered all over the

world.
Indian (traditional) Milk Products

There are a large variety of traditional Indian milk products such as

Makkhan - unsalted butter. Ghee - butter oil prepared by heat clarification, for longer shelf life.

Kheer - a sweet mix of boiled milk, sugar and rice. Basundi - milk and sugar boiled down till it

thickens. Rabri - sweetened cream. Dahi - a type of curd. Lassi - curd mixed with water and

sugar/ salt. Channa/Paneer - milk mixed with lactic acid to coagulate. Khoa - evaporated milk,

used as a base to produce sweet meats. The market for indigenous based milk food products is

difficult to estimate as most of these products are manufactured at home or in small cottage

industries catering to local areas.

Consumers while purchasing dairy products look for freshness, quality, taste and texture, variety

and convenience. Products like Dahi and sweets like Kheer, Basundi, Rabri are perishable

products with a shelf life of less than a day. These products are therefore manufactured and sold

by local milk and sweet shops. There are several such small shops within the vicinity of

residential areas. Consumer loyalty is built by consistent quality, taste and freshness. There are

several sweetmeat shops, which have built a strong brand franchise, and have several branches

located in various parts of a city.

Branding Of Traditional Milk Products

Among the traditional milk products, ghee is the only product, which is currently marketed, in

branded form. main ghee brands are Sagar, Milkman (Britannia), Amul (GCMMF), Aarey

(Mafco Ltd), Vijaya (AP Dairy Development Cooperative Federation), Verka ( Punjab Dairy

Cooperative), Everyday (Nestle) and Farm Fresh (Wockhardt).

 With increasing urbanization and changing consumer preferences, there is possibility of

large scale manufacture of indigenous milk products also. The equipments in milk

manufacturing have versatility and can be adapted for several products. For instance, equipments

used to manufacture yogurt also can be adapted for large scale production of Indian curd

products (dahi and lassi). Significant research work has been done on dairy equipments under the

aegis of NDDB.

Mafco Limited sells Lassi under the Aarey brand and flavored milk under the Energee

franchise (in the Western region, mainly in Mumbai). Britannia has launched flavored milk in

various flavors in tetra packs.

GCMMF has also made a beginning in branding of other traditional milk products with

the launch of packaged Paneer under the Amul brand. It has also created a new umbrella brand

"AmulMithaee", for a range of ethnic Indian sweets that are proposed to be launched the first

new product AmulMithaeeGulabjamun has already been launched in major Indian markets.

Western Milk Products

Western milk products such as butter, cheese, yogurt have gained popularity in the Indian market

only during the last few years. However consumption has been expanding with increasing

urbanization.

Butter

Most Indians prefer to use home made white butter (makkhan) for reasons of taste and

affordability. Most of the branded butter is sold in the towns and cities. The major brands are

Amul, Vijaya, Sagar, Nandini and Aarey. Amul is the leading national brand while the other
players have greater shares in their local markets. The latest entrant in the butter market has been

Britannia. Britannia has the advantages of a wide distribution reach and a strong brand recall.

Priced at par with the Amul brand, it is expected to give stiff competition to the existing players.

In 2008-00 the butter production is estimated at 4 lakh MT of this only 45K MT is in the white

form used for table purposes rest all is in the yellow form.

PRODUCT INFORMATION

PRODUCT-AMUL GOLD PASTEURISED FULL CREAM MILK

WEIGHT-500 ml Nett

PRICE- Rs. 16

FAT-6.0 AND SNF-9.0

NUTRITIONAL INFORMATION

Serving size 200 ml

Amount per 100 ml

Energy 87 kcal

Energy from fat 54 kcal

Total fat :6g Phosphorus :130 mg

Saturated fat : 3.7g Sodium :50 mg

Cholesterol :16 mg Thiamine :42 mcg

Total carbohydrate :5.0g Rivoflavin :120mcg

Added sugar :0g Niacin :100mcg

Protein :3.3g Folic acid :7.5 mcg

Calcium :150mg Vita(retinol) :85mcg

 VOLUME PURCHASED

Total volume distributed by distributer to dealers in Badarpur Bodor-800-1000 liter

Total volume purchased by each dealers- 160-180 liters (i.e. total no of packets of amul gold
milk purchased by each dealer)- 320-360

Total volume purchased by each retailers-10-12 liter (20-25 packets)

 SALES AND PROFIT

Sales and profit for Distributer

Total volume of milk distributed by distributer -800-1000 liters(i.e. total no of packets

distributed 400-450 approx)

Profit margin for distributer per liter-60 paise

Total profit for each distributer- 480-600 Rs

Sales and profit for dealers

Total sale done by each dealer- 160-180 liters

Profit margin for each dealer per liter-40paise

Total profit generated by each dealer-64-72 Rs

Sales and profit for retailers

Total sales done by each retailers-10-12 liters

Profit margin for retailers per litre-50paise

Profit generated by each retailers- 5-6 Rs

DISTRIBUTION CHANNEL OF AMUL MILK

MANUFACTURED UNIT

PACKING AND LABELLING

DISTRIBUTORS

DEALERS

RETAILERS

CUSTOMERS
STOCK REPLENISHMENT CYCLE

Since milk is a fast moving consumer goods daily used by each household in India. So Amul
gold pasteurised full cream milk is supplied by distributer everyday to dealers and retailers.
Stock is purchased within 24 hours (early in the morning).

TRANSPORATION METHODS

They manage the procurement of milk that comes via trucks & tankers from the VS’s to
manufacturing unit and then to distributers and dealers .They negotiate annual contracts with
truckers, ensure availability of trucks for procurement,establish truck routes, monitor truck
movement and prevent stealing of milk while it is beingtransported.

COMPETITOR ANALYSIS

The main competitor of Amul is Mother dairy in Delhi. Most of the market share is captured by
mother dairy products (55% (approx) market of pasteurized full cream milk is covered by Mother
dairy

Product % of market share

Amul 30
Mother dairy 55
Others 15
 market share

15

mother dairy
amul
55 others
30

AMUL PESTEURIZED FULL CREAM VS MOTHER DAIRY

PASTEURISED FULL CREAM MILK

VS
 AMUL MOTHER DAIRY
Price 16Rs 17Rs
Weight 500 ml 500 ml
Margin for distributors’ 60paise/liter 60paise/liter
Margin for dealers 40paise/liter 40paise/liter
Margin for retailers 50paise/liter 50paise/liter

Sales and profit of Mother dairy pasteurized milk

Mother diary full cream milk is purchased in more quantity as compared to Amul full cream
pasteurized milk.

For distributor

Total quantity of mother dairy full cream pasteurized milk is distributed by distributor at -2300-
2500 liters

Profit margin for distributer-60paise/liter

Total profit generated by distributer- 1380Rs-1500

For dealers

Total quantity purchased by each dealer at 400-500 liters

Profit margin for dealers-40paise/liter

Total profit generated by dealers-160-200Rs

For retailers

Total quantity purchased by each retailer at Badarpur Boder-25-30 liters

Profit margin for retailers- 50paise/liter

Total profit generated by retailer-12.5-15Rs

Table of total Sales done each channel member

Channel member Amul (in liters) Mother dairy(in liters)

By distributer 800-1000 2300-2500
By dealers 160-180 400-500
By retailers 12-15 25-30

Table of profit generated by each member per day

Channel member Amul(in Rs) Mother dairy(in Rs)

For distributor 480-500 1380-1500
For dealers 64-72 160-200
For retailers 10-12 12-15

As compared to amul, mother dairy has more market share and more quantity of mother dairy
full cream pasteurized milk is distributed and supplied by channel members. Hence more profit is
generated by each channel member inspite of having equal margin on each product.

Learning

It was a great opportunity to carry a research project on such a reputed organization which gave
me a good learning experience and knowledge about the products and industry.

Another very crucial area that needs mention is the experience I gained while talking to and
interacting with people. This has been a truly enriching experience because interacting with
people with varied profile helped in enriching my communication skills
 INTRODUCTION

AMUL means "priceless" in Sanskrit. A quality control expert in Anand suggested the brand

name “Amul,” from the Sanskrit “Amoolya,” Variants, all meaning "priceless", are found in

several Indian languages. Amul products have been in use in millions of homes since 1946.

Amul Butter, Amul Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates,

AmulShrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading

food brand in India. (Turnover: Rs. 25 billion in 2002). Today Amul is a symbol of many things.

Of 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.

AMUL IN ABROAD

. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh,

Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter

Japanese market in 1994 did not succeed, but now it has fresh plans entering the Japanese

markets [6]. Other potential markets being considered include Sri Lanka.
 GCMMF

The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest food

products marketing organization of India. It is the apex organization of the Dairy Cooperatives

of Gujarat. This State has been a pioneer in organizing dairy cooperatives and our success has

not only been emulated in India but serves as a model for rest of the World. Over the last five

and a half decades, Dairy Cooperatives in Gujarat have created an economic network that links

more than 2.8 million village milk producers with millions of consumers in India and abroad

through a cooperative system that includes 13,141 Village Dairy Cooperative Societies (VDCS)

at the village level, affiliated to 13 District Cooperative Milk Producers’ Unions at the District

level and GCMMF at the State level. These cooperatives collect on an average 7.5 million litres

of milk per day from their producer members, more than 70% of whom are small, marginal

farmers and landless labourers and include a sizeable population of tribal folk and people

belonging to the scheduled castes. The turnover of GCMMF (AMUL) during 2008-09 was Rs.

67.11 billion. It markets the products, produced by the district milk unions in 30 dairy plants,

under the renowned AMUL brand name. The combined processing capacity of these plants is

11.6 million litres per day, with four dairy plants having processing capacity in excess of

1 million Litres per day. The farmers of Gujarat own the largest state of the art dairy plant in

Asia – Mother Dairy, Gandhinagar, Gujarat – which can handle 2.5 million litres of milk per day

and process 100 MTs of milk powder daily. During the last year, 3.1 billion litres of milk was

collected by Member Unions of GCMMF. Huge capacities for milk drying, product manufacture

and cattle feed. Ever since the movement was launched fifty-five years ago, Gujarat’s Dairy

Cooperatives have brought about a significant social and economic change to our rural people.

The Dairy Cooperatives have helped in ending the exploitation of farmers and demonstrated that

when our rural producers benefit, the community and nation benefits as well.
GCMMF: An overview

Members: 13 district cooperative milk producers'

Union

No. of Producer Members: 2.9 million

No. of Village Societies: 15,322

Total Milk handling capacity: 13.07 million litres per day

Milk collection (Total - 2009-10): 3.32 billion litres

Milk collection (Daily Average 9.10 million litres

2009-10):

Milk Drying Capacity: 647 Mts. per day

Cattlefeed manufacturing 3740 Mts per day

Capacity:
 BIRTH OF AMUL

The birth of Amul at Anand provided the impetus to the cooperative dairy movement in the

country. The Kaira District Cooperative Milk Producers’ Union Limited was registered on

December 14, 1946 as a response to exploitation of marginal milk producers by traders or agents

of existing dairies in the small town named Anand (in Kaira District of Gujarat). Milk Producers

had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand .

Angered by the unfair and manipulative trade practices, the farmers of Kaira District approached

SardarVallabhbhai Patel (who later became the first Deputy Prime Minister and Home Minister

of free India) under the leadership of the local farmer leader Tribhuvandas Patel. Sardar Patel

advised the farmers to form a Cooperative and supply milk directly to the Bombay Milk Scheme

instead of selling it to Polson (who did the same but gave low prices to the producers). He sent

Morarji Desai (who later became Prime Minister of India) to organize the farmers. In 1946, the

farmers of the area went on a milk strike refusing to be further oppressed. Thus the Kaira District

Cooperative was established to collect and process milk in the District of Kaira in 1946. Milk

collection was also decentralized, as most producers . were marginal farmers who were in a

position to deliver 1-2 litres of milk per day. Village level cooperatives were established to

organize the marginal milk producers in each of these villages. The Cooperative was further

developed & managed by Dr. V Kurien along with Shri H M Dalaya . in 1973, the Gujarat Co-

operative Milk Marketing Federation was established. The Kaira District Co-operative Milk

Producers’ Union Ltd. which had established the brand name AMUL in 1955 decided to hand

over the brand name to GCMMF (AMUL). With the creation of GCMMF (AMUL), we[who?]

managed to eliminate competition between Gujarat’s cooperatives while competing with the

private sector as a combined stronger force. GCMMF (AMUL) has ensured remunerative returns

to the farmers while providing consumers with products under the brand name AMUL.
Customer satisfaction

Customer satisfaction (often abbreviated as CSAT, more correctly CSAT) is a term frequently

used in marketing. It is a measure of how products and services supplied by a company meet or

surpass customer expectation. Customer satisfaction is defined as "the number of customers, or

percentage of total customers, whose reported experience with a firm, its products, or its services

(ratings) exceeds specified satisfaction goals.

The Marketing Accountability Standards Board (MASB) endorses the definitions, purposes, and

constructs of classes of measures that appear in Marketing Metrics as part of its ongoing

Common Language in Marketing Project. In a survey of nearly 200 senior marketing managers,

71 percent responded that they found a customer satisfaction metric very useful in managing and

monitoring their businesses.

It is seen as a key performance indicator within business and is often part of a Balanced

Scorecard. In a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element of business

strategy.

Purpose

A business ideally is continually seeking feedback to improve customer satisfaction.

"Customer satisfaction provides a leading indicator of consumer purchase

intentions and loyalty. "Customer satisfaction data are among the most frequently collected

indicators of market perceptions. Their principal use is twofold:"

1. "Within organizations, the collection, analysis and dissemination of these data send a

message about the importance of tending to customers and ensuring that they have a

positive experience with the company's goods and services."

2. "Although sales or market share can indicate how well a firm is performing currently,

satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will

make further purchases in the future. Much research has focused on the relationship

between customer satisfaction and retention. Studies indicate that the ramifications of

satisfaction are most strongly realized at the extremes."

On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to become

return customers and might even evangelize for the firm. (A second important metric related to

satisfaction is willingness to recommend. This metric is defined as "The percentage of surveyed

customers who indicate that they would recommend a brand to friends." When a customer is

satisfied with a product, he or she might recommend it to friends, relatives and colleagues. This

can be a powerful marketing advantage.) "Individuals who rate their satisfaction level as '1,' by

contrast, are unlikely to return. Further, they can hurt the firm by making negative comments

about it to prospective customers. Willingness to recommend is a key metric relating to customer

satisfaction."
Theoretical Ground

In literature antecedents of satisfaction are studied from different aspects. The considerations

extend from psychological to physical and from normative to positive aspects. However, in most

of the cases the consideration is focused on two basic constructs as customers expectations prior

to purchase or use of a product and his relative perception of the performance of that product

after using it.

Expectations of a customer on a product tell us his anticipated performance for that product. As

it is suggested in the literature, consumers may have various "types" of expectations when

forming opinions about a product's anticipated performance. For example, four types of

expectations are identified by Miller (1977): ideal, expected, minimum tolerable, and desirable.

While, Day (1977) indicated among expectations, the ones that are about the costs, the product

nature, the efforts in obtaining benefits and lastly expectations of social values. Perceived

product performance is considered as an important construct due to its ability to allow making

comparisons with the expectations.

It is considered that customers judge products on a limited set of norms and attributes.

Olshavsky and Miller (1972) and Olson and Dover (1976) designed their researches as to

manipulate actual product performance, and their aim was to find out how perceived

performance ratings were influenced by expectations. These studies took out the discussions

about explaining the differences between expectations and perceived performance." [4]

In some research studies, scholars have been able to establish that customer satisfaction has a

strong emotional, i.e., affective, component. Still others show that the cognitive and affective

components of customer satisfaction reciprocally influence each other over time to determine

overall satisfaction.

Especially for durable goods that are consumed over time, there is value to taking a dynamic

perspective on customer satisfaction. Within a dynamic perspective, customer satisfaction can

evolve over time as customers repeatedly use a product or interact with a service. The
satisfaction experienced with each interaction (transactional satisfaction) can influence the

overall, cumulative satisfaction. Scholars showed that it is not just overall customer satisfaction,

but also customer loyalty that evolves over time.

The Disconfirmation Model

"The Disconfirmation Model is based on the comparison of customers’ [expectations] and their

[perceived performance] ratings. Specifically, an individual’s expectations are confirmed when a

product performs as expected. It is negatively confirmed when a product performs more poorly

than expected. The disconfirmation is positive when a product performs over the expectations

(Churchill &Suprenant 1982). There are four constructs to describe the traditional

disconfirmation paradigm mentioned as expectations, performance, disconfirmation and

satisfaction." "Satisfaction is considered as an outcome of purchase and use, resulting from the

buyers’ comparison of expected rewards and incurred costs of the purchase in relation to the

anticipated consequences. In operation, satisfaction is somehow similar to attitude as it can be

evaluated as the sum of satisfactions with some features of a product." "In the literature,

cognitive and affective models of satisfaction are also developed and considered as alternatives

(Pfaff, 1977). Churchill and Suprenant in 1982, evaluated various studies in the literature and

formed an overview of Disconfirmation process in the following figure:"

Market analysis

A market analysis studies the attractiveness and the dynamics of a special market within a

special industry. It is part of the industry analysis and thus in turn of the global environmental

analysis. Through all of these analyses, the strengths, weaknesses, opportunities and threats

(SWOT) of a company can be identified. Finally, with the help of a SWOT analysis, adequate

business strategies of a company will be defined. The market analysis is also known as a

documented investigation of a market that is used to inform a firm's planning activities,

particularly around decisions of inventory, purchase, work forceexpansion/contraction, facility

expansion, purchases of capital equipment, promotional activities, and many other aspects of a

company.

Market segmentation

Market segmentation is the basis for a differentiated market analysis. Differentiation is

important. One main reason is the saturation of consumption, which exists due to the increasing

competition in offered products. Consumers ask for more individual products and services and

are better informed about the range of products than before. As a consequence, market

segmentation is necessary. Segmentation includes a lot of market research, since a lot of market

knowledge is required to segment the market. Market research about market structures and

processes must be done to define the “relevant market”. The relevant market is an integral part of

the whole market, on which the company focuses its activities. To identify and classify the

relevant market, a market classification or segmentation has to be done.

Market segmentation is an important way to find competitive advantage with its differentiation

in market analysis. Market segmentation concentrates on market energy and power to gain

competitive advantage. In other words, market segmentation is the concept tool to get the force

(Thomas, 2007). In market analysis, market knowledge is required to analyze market structure

and process. Since segmentation requires a lot of market research, various information can be

extracted from it. Market segmentation can identify customer needs and wants and develop

products to their satisfaction. Market segmentation can identify different products for different

groups, better match customer wants and product benefits, maximize the use of available

resources and focus marketing expenditures and competitive advantages (Karlsson,2012).

There is no specific way to segment market. However, businesses can follow generalized rules

like geographic, demographic, psychographic, and behavioral. A good market segmentation

should be sustainable, accessible, actionable, measurable, and differentiable (Karlsson,2012).

Dimensions of market analysis

 Market size (current and future)

 Market trends

 Market growth rate

 Market profitability

 Industry cost structure

 Distribution channels

 Key success factors

 Key success details

Market analysis strives to determine the attractiveness of a market, currently and in the future.

Organizations evaluate future attractiveness of a market by understanding evolving

opportunities, and threats as they relate to that organization's own strengths and weaknesses.

Organizations use these findings to guide the investment decisions they make to advance their

success. The findings of a market analysis may motivate an organization to change various

aspects of its investment strategy. Affected areas may include inventory levels, a work

force expansion/contraction, facility expansion, purchases of capital equipment, and promotional

activities.

Market size

The market size is defined through the market volume and the market potential. The market

volume exhibits the totality of all realized sales volume of a special market. The volume is

therefore dependent on the quantity of consumers and their ordinary demand. Furthermore, the

market volume is either measured in quantities or qualities. The quantities can be given in

technical terms, like GW for power capacities, or in numbers of items. Qualitative measuring

mostly uses the sales turnover as an indicator. That means that the market price and the quantity

are taken into account. Besides the market volume, the market potential is of equal importance.
It defines the upper limit of the total demand and takes potential clients into consideration.

Although the market potential is rather fictitious, it offers good values of orientation. The

relation of market volume to market potential provides information about the chances of market

growth.[5][6]The following are examples of information sources for determining market size:

 Government data

 Trade association data

 Financial data from major players

 Customer surveys

Market trends

Market trends are the upward or downward movement of a market, during a period of time. The

market size is more difficult to estimate if one is starting with something completely new. In this

case, you will have to derive the figures from the number of potential customers, or customer

segments.

Besides information about the target market, one also needs information about one's competitors,

customers, products, etc. Lastly, you need to measure marketing effectiveness. A few techniques

are:

 Customer analysis

 Choice modelling

 Competitor analysis

 Risk analysis

 Product research

 Advertising the research

 Marketing mix modeling

 Simulated Test Marketing

Changes in the market are important because they often are the source of new opportunities and

threats. Moreover, they have the potential to dramatically affect the market size.

Examples include changes in economic, social, regulatory, legal, and political conditions and in

available technology, price sensitivity, demand for variety, and level of emphasis on service and

support.

Market growth rate

A simple means of forecasting the market growth rate is to extrapolate historical data into the

future. While this method may provide a first-order estimate, it does not predict

important turning points. A better method is to study market trends and sales growth in

complementary products. Such drivers serve as leading indicators that are more accurate than

simply extrapolating historical data.

Important inflection points in the market growth rate sometimes can be predicted by constructing

a product diffusion curve. The shape of the curve can be estimated by studying the

characteristics of the adoption rate of a similar product in the past.

Ultimately, many markets mature and decline. Some leading indicators of a market's decline

include market saturation, the emergence of substitute products, and/or the absence of growth

drivers.

Market opportunity

A market opportunity product or a service, based on either one technology or several, fulfills

the need(s) of a (preferably increasing) market better than the competition and better than

substitution-technologies within the given environmental frame (e.g. society, politics, legislation,

etc.).

Market profitability

While different organizations in a market will have different levels of profitability, they are all

similar to different market conditions. Michael Porter devised a useful framework for evaluating
the attractiveness of an industry or market. This framework, known as Porter five forces

analysis, identifies five factors that influence the market profitability:

 Buyer power

 Supplier power

 Barriers to entry

 Threat of substitute products

 Rivalry among firms in the industry

Industry cost structure

The cost structure is important for identifying key factors for success. To this end, Porter's value

chain model is useful for determining where value is added and for isolating the costs.

The cost structure also is helpful for formulating strategies to develop a competitive advantage.

For example, in some environments the experience curve effect can be used to develop a cost

advantage over competitors.

Distribution channels

Examining the following aspects of the distribution system may help with a market analysis:

 Existing distribution channels - can be described by how direct they are to the customer.

 Trends and emerging channels - new channels can offer the opportunity to develop a

competitive advantage.

 Channel power structure - for example, in the case of a product having little brand equity,

retailers have negotiating power over manufacturers and can capture more margin.
Success factors

The key success factors are those elements that are necessary in order for the firm to achieve its

marketing objectives. A few examples of such factors include:

 Access to essential unique resources

 Ability to achieve economies of scale

 Access to distribution channels

 Technological progress

It is important to consider that key success factors may change over time, especially as the

product progresses through its life cycle

Environmental analysis

The environmental analysis can be divided into two parts which are external and internal factors.

External factors. Political issues, social potential force, and local economy called external

environmental factors. Internal environmental factors belongs to company's internal position

such as employees, department structure, budget and so forth (Christina,). How environmental

effect markets. According to the Parry, the government limit pollution emission, they mention

environmental taxes to prevent company which produce pollution substance. In other words, the

government drives the organization. On the contrary, the cost of products increase due to the

environmental taxes. It means that company may take measure of reducing production which

may grow unemployment rate by emission tax. Therefore, the environmental taxes leads a

income equality. It is not an excuse ignore our serious environmental problem. Even though the

higher income group also can benefit from windfall gains(Parry, 2002).

Competitive analysis

According to the Christina, competitive analysis is that company must know their competitors

which have the same common services and products. The business can use like product cost,

operational efficiency, brand recognition and market Dimensions of market analysis

Except for David A. Aaker's 7 main dimension of a market analysis including market size,

market growth rate, market profitability, industry cost structure, distribution channel, market

trends, and key success factor, there is another analysis of dimension market analysis. Based on

Christina Callaway, dimension of market analysis can be divided into four parts which is

environmental analysis, competitive analysis, target audience analysis, and SWOT analysis. The

market analysis is to help company to illustrate current trend in the market and may affect the

profitability ( Christina). At the same time, market analysis is also to determine the attractiveness

in the market. A good marketing analysis can improve organization investment decision

accurately, they can based on the attractiveness to change investment tactical.

The market analysis is to help company to illustrate current trend in the market and may affect

the profitability for the business (Thomas,2007). It can be seen as a part of industry analysis with

using global environmental analysis. Company can identify strengths, weakness, opportunities

and threats so that the business can define the business strategy. The market analysis is also

reference for company's activity , like decisions of inventory, purchase, work force, facility

expansion and many aspects of company.

penetration to find the difference or competitive advantages between two similarly

companies(Christina). How can we find the competitive advantage? Kevin (2016) says that

"Anticipating and reading market needs can help business leaders take significant steps towards

changing the game and obtaining competitive advantage. How can we sustain competitive

advantages? In terms of Richard research, The company should focus on sustaining competitive

advantage due to the swift growth global competition. Therefore, Business practice management

is the follow principle to maintain competitive advantage(Richard,2006).

Target audience analysis

In the Christina contribution, target audience is for company to target their customer group who

most likely to buy their products(Christina). The group can be classified with location, age,

gender, income, ethnicity, and behaviors. And people who make a decision of purchase can also
be divided in the target audience. How identify market in accordance with Women's enterprise

centre the market can be classified in three types which are consumer market, industrial market,

and reseller market. The company segment their market, research market, and identify why

customer would like to buy their products (women's enterprise centre, (2011 ).

SWOT analysis

SWOT is strengths, weakness, opportunities, and threats. It matches internal strengths and

weaknesses up against opportunities and threats (Christina). Strengths and weakness are internal

factors which we can control. And opportunities and threats are external factors that businesses

can't control, but can however impact on. When using strengths and weakness, businesses need

to collect raw data to get information. Businesses can get information by customer feedback,

employee surveys. Furthermore, businesses also can identify the capability if it is weakness or

strengths, resources and process. Opportunities and threats are the external factors. Business can

get information from secondary data like environmental information, industry information and

competitive data. The purpose of the business use the SWOT analysis is to get the information

from it and match each other to develop the ideas and get into goal statement to form strategic

development (Olsen, 2008).

Market communication has significant impact on building and maintaining the relationship of

stakeholders. Market analysis elements is to form a strategic planning and the information is

responsiveness, intelligence generation, and dissemination(Mike, Sandra& Felix, 2005). Besides,

market communication provide the information focus on the customer needs and competitive

advantage. At the same time, these information spread to customers means the company spread

its brand value so that customer can make awareness of the company's products. It is the

communication channel between business and customers(Mike, Sandra& Felix, 2005).

Market Segmentation

Market segmentation is one of the important ways to find competitive advantage with its

differentiation in market analysis. Market segmentation concentrates on market energy and

power to gain competitive advantage. In other words, market segmentation is the concept tool to

get the force(Thomas,2007). In the market analysis, we need a lot of market knowledge to

analyse market structure and process. Since segmentation needs to do a lot of market research so

that we can get the information from it. Market segmentation recommends the market strategy.

Market segmentation can identify customer needs and wants and develop products to satisfy

them. Market segmentation can identify different products for different groups, better match

between customer wants and product benefits, maximize the use of available resources, focuse

marketing expenditures and competitive advantages (karlsson,2012).

There is no perfect way to segment market but business can follow some rules like geographic,

demographic, psychographic, and behavioral. A good market segmentation should be

sustainable, accessible, actionable, measurable, and differentiable (karlsson,2012).

Global market segmentation

Since the globalization more and more developed, the global market become indispensability

part of the business thinking. In order to explore global market, how market segmentation can be

used in the global market. There are some aspects of defining the global market so which is more

efficient to segment global market. Some researchers mention about Cross-National and Cross-

Cultural Approach to segment global market. To differentiate country and culture, the company

have to identify two areas which is vertical market segment existing internal area. Another area

is external market segments which a group of countries has relationship of each other and share

their characteristics. Compared with cross- cultural approach and cross-national approach, cross-

cultural approach has its cultural stability of traditional values. cultural stability has a wide range

of shared national-cultural values features, due to group solidarity, interpersonal harmony and so

forth(Agarwal, Malhotra &Bolto, 2010). However, cross-cultural approach has challenge of

environmental changes, cultural change and some other unstable factors(Agarwal, Malhotra

&Bolto, 2010). Therefore, the main principle of looking at cross-cultural approach and cross-

national approach base on perceive service quality. In the global service marketing, the
marketing manager face a challenge of international services on account of the intangibility of

services, unification standardizing services across national borders and difference of preference

for customized services in different countries and culture. Therefore, it is significance for

business to have a deep understanding service quality in facing across different countries,

regions and cultures( Agarwal, Malhotra &Bolto, 2010).

In the software market, the trend of software is the price is high and coverage is low. In order to

improve the trend, there is some problems of software market. Zhang (2014) mention that“ (1)

What possibly discourages product differentiation in such a competitive market? (2) Why is

versioning absent here? (3) How does the presence of free alternatives in this market impact its

structure?”(p. 589). In order to improve these problems, Zhang mention that quality competition

and market segmentation apply to the software market. In Zhang's research, the software

company lack of developed the method of quality competition, market segmentation, and

versioning. In terms of market segmentation, software company think segmentation consumer

market is not useful. Therefore, even though versioning is the least costless way of spread

product information, the company still ignore it(Zhang, 2014).

The relationship between market segmentation and communication in marketing is interaction.

For example, market segmentation is important in the social media. There is three perspectives

supplier perspectives, interaction perspectives, and buyer perspectives. In order to balance these

three relationships, business must do segment well.

CHAPTER-2

OBJECTIVE

&

SCOPE
 OBJECTIVE

1. To Study about the Customer Satisfaction and market analysis of amul products.

2. To study about the current position of amul in market.

3. To know awareness of people towards amul products

4. To create a brand awareness among the consumers in order to increase the sales volume

of amul.

5. To know the consumer preference of amul products with comparison to other

competitive brand

6. To make an strategy for competing the rivalry brands

 SCOPE OF THE STUDY

1. The scope of this is very limited as it deals with milk related product and market of

lucknow city.

2. The study helps out in having retailer’s and consumer’s view

3. The project work done will definetly prove to be helping hand for the firm

4. This provide suggestion to grow for the business as there is always a room for

improvement in every business

5. This study will aid the company to analyse the competitors activity and profit margin

through retailers.
 CHAPTER-3
RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

Research is a common language refers to a search of knowledge. Research is scientific &

systematic search for pertinent information on a specific topic, infect research is an art of

scientific investigation. Research Methodology is a scientific way to solve research problem. It

may be understood as a science of studying how research is don’t scientifically. In it we study

various steps that are generally adopted by researchers in studying their research problem. It is

necessary for researchers to know not only know research method techniques but also

technology. The scope of Research Methodology is wider than that of research methods.

The research problem consists of series of closely related activities. At times, the first step

determines the native of the last step to be undertaken. Why a research has been defined, what

data has been collected and what a particular methods have been adopted and a host of similar

other questions are usually answered when we talk of research methodology concerning a

research problem or study. The project is a study where focus is on the following points:

Research Design:-

A research design is defined, as the specification of methods and procedures for acquiring the

Information needed. It is a plant or organizing framework for doing the study and collecting the

data. Designing a research plan requires decisions all the data sources, research approaches,

Research instruments, sampling plan and contact methods. The study was descriptive kind of

research.

Research design is mainly of following types:

1. Exploratory research.

2. Descriptive studies

3. Causal studies/Experimental studies

1. Exploratory research:-

The major purposes of exploratory studies are the identification of problems, the more precise

Formulation of problems and the formulations of new alternative courses of action. The design

of exploratory studies is characterized by a great amount of flexibility and ad-hoc veracity.

2. Descriptive research:-

Descriptive research in contrast to exploratory research is marked by the prior formulation of

specific research Questions. The investigator already knows a substantial amount about the

research problem. Perhaps as a Result of an exploratory study, before the project is initiated.

Descriptive research is also characterized by a Preplanned and structured design.

3. Causal studies/Experimental studies

A casual design investigates the cause and effect relationships between two or more variables.

The hypothesis is tested and the experiment is done. There are following types of casual designs

a. After only with control design

b. Before after with control design

c. Before after without control design

d. Consumer panel design

e. Ex-post facto design

Research Design has been classified into four subsections they are:

1. Sample selection and size;

2. Sampling procedure;

3. Data collection; and

4. Analytical tools
Sample Selection and size

The first step of research is sample selection, for which the respondents were consumers in

Lucknow. The total consumers covered were 100. The same questionnaires were distributed, but

only 100 fully completed questionnaires were received. Results are based on the response of

these 100 respondents, and in this 80 respondent chosen Eveready.

Sampling Procedure

There are basically two methods of sampling:-

Probability sampling

It is also known as random sampling. Under this sampling design every item of the universe has

an equal chance of inclusion in the sample. It is, so to say, a lottery method in which individual

units are picked from the whole group not deliberately but by some mechanical process. Here it

blind chance alone that determines whether one item or the other is selected. The results

obtained from probability sampling can be assured in terms of probability.

Non-Probability sampling

Non-Probability sampling is that sampling procedure which does not afford any basis for

estimating the probability that each item in the population has been included in the sample. In

this type of sampling, items for the sample selected deliberately by the researcher, his choice

concerning the items remains supreme.

For the study, the consumers are selected by the convenience sampling method. The

selection of units from the population based on their easy availability and accessibility to the

researcher is known as convenience sampling.

 CHAPTER-4

DATA ANALYSIS
AND
INTERPRETATION
 DATA ANALYSIS AND INTERPRETATION-

Data Analysis :-

1) Number of retailers stocking Amul milk.

Answer No. of Percentage

respondents
Yes 55 20%

No 114 80%

Yes 33%
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.
 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.

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
 4) Preference of retailer’s to milk brand.

BRANDS RESPONDENTS

Amul
15

Mothe
rdairy
77

manal
i
45

Tabal
a milk
6

Others
26

Others 26

tabala 6

manali 45

motherdr
y 77

15
Amul

0 10 20 30 40 50 60 70 80 90

Respondent
.
Interpretation:
• The above graph shows that the motherdairy is most preferable brand in all.
• Some retailers also prefers tabala and others brands.
 5) Sources from where retailers get Amul milk

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

Answer No. of Percentage

respondents
95 %
Distributors 52

Other suppliers 3 5%

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

Yes 62%

No
38
%

Interpretation:

• Graph shows that most of the retailers were satisfied with the service provided by the Amul
distributors.
7) Awareness among retailers about different Sales Promotional activities for Amul milk.
(Out of 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
14
18

40
39
42
30
49 50
20 37 41

10
16
13

0 Free samples Credit

Price off 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.
 8) Interest of retailers in wholesale distribution of Amul milk.

Answer No. of Percentage

respondents
Yes 16 16 %

No 84 84 %

Yes 16%
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.
 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 %

Yes
59%
No
41%

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.
 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%
No
87%

Interpretation:

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

RESPONDENT

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.
11) 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

48
30
55
48
20
37
34
10
2
5
0 0
Availabili
Quality Brand image ty Packaging Margin
Averag
Very good Good e 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.
 Findings

 Lack of Awareness in consumers. Many people are not know about Amul chocolates
specially children and teenagers.

 As I found that the main product of Amul is Milk and company firstly wants to capture
maximum market share in milk market which is approx. 66%, after it Amul is
concentrating upon butter & cheese which has market share of approx. 88%, so it is not
concentrating upon chocolates.

 There is lack of Sales PromotionalActivities i.e. free tattoo, extra weight, toys, quiz
contest etc.

 Cadbury is main competitor and strategically better performer then Amul.

 I find the main thing is that “Amul” brand name has very good image in consumer’s
mind and they consider it as Pure & Good Product.

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

 First and foremost Amul should take proper action in order to improve service,
because although being on a top slot in Butter and milk supplies it does not get the
sales in chocolate, which it should get.

 Company should use brand ambassador which attracts each age segment i.e. Saniya
Mirza, Shaktimaan, Amitabh Bacchan, Superman, Krrish, Jadoo etc.

 Amul should give local advertisements apart from the advertisements given at the
national level. Local advertisement must mention the exclusive Amul shops of the
city.

 Try and change the perception of the people through word of mouth about Amul in
advertisements, because they are the best source to reach Children and families.

 Though Amul chocolate advertisements are rarely shown on television yet many
people could recall it as per the data of research. It shows that there is only need to
give advertisement only to rememorize customers. Because Amul is very strong
brand name.

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

Amul chocolate in consumers mind.

 Company should introduce sales promotion schemes like free weight, pranky, tattoo,
contest, free gifts etc.

 Advertisement can be done with the help of animations that attracts children and
teenagers because chocolates are consumed largely in this segment.
 CONCLUSION

1. As Amul is a very huge organization' it has maximum market share in milk

2. The company must make policy for replacment of product's
3. The company must call a meeting of retailers time to time
4. Amul should look Oberlin towards the increment in profit margin of distributors and
retailers
5. Amul should provide credit facilities for retailers and distributors
6. The overall management of Amul is so superior that they manage the overall system
in 750 employees
7. Amul must come up with new promotional activities such that the people become
aware of Amul milk like Tazza n Gold
 BIBLIOGRAPHY

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
 ANNEXURE

QUESTIONNAIRE:-

(Retailer Survey)

Name of the shop: __________________________________________________

Retailer Name: ____________________________________________________
Address: __________________________________________________________

1) Do you stock Amul milk?

a) Yes
b) No

2) If yes, what is the size of Amul milk packets do you preferred to store?

a) 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
Motherdairy
Manali
Tabala
Other
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
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