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PROJECT REPORT

On

MARKET ANALYSIS AND STUDY ON AMUL MILK INDUSTRY

Submitted By

Name – PREETY SINGH

Roll No. - 25

Supervised By

Name of the supervisor –

Name of the college – Shri Shikshayatan College, Kolkata

Month and Year of Submission - May 2019


Student Declaration

I hereby declare that the project Market Analysis and Study on Amul milk industry
submitted by me for the partial fulfilment of degree of BBA (honours) at Shri Shikshayatan
College, Kolkata is my original work and has not being submitted earlier in any other
institution for fulfilment required for any course of study.

I also declare that no chapter of this manuscript in whole or part has been incorporated in this
report in any earlier work done by other or me. However abstract of any literature has used
for this report has been duly acknowledged providing detail of such literature in references.

Place: Kolkata Signature:

Date: Name: Preety Singh


ACKNOWLEDGEMENT

“It is not possible to prepare a project report without the assistance & encouragement of
other people. This one is certainly no exception.”

On the very outset of this project, I would like to extend my sincere & heartfelt obligation
towards all the personages who have helped me in this endeavour. Without their active
guidance, help, cooperation & encouragement, I would not have made headway in the
project. I am extremely thankful and pay my gratitude to my faculty Prof. for his valuable
guidance and support and giving her precious time for the completion of this project in her
presence.

I am ineffably indebted to all the Professors for their conscientious guidance and
encouragement to accomplish this assignment. I extend my gratitude to Shri Sikshayatan
College, Kolkata for giving me this opportunity.

I also acknowledge with a deep sense of reverence, my gratitude towards my parents and
member of my family, who has always supported me morally as well as economically.

At last but not least gratitude goes to all my friends who directly or indirectly helped me to
complete this project report.

Any omission in this brief acknowledgement does not mean lack of gratitude.

Thanking You

PREETY SINGH
PREFACE

Today the business environment is rapidly changing in this competitive environment the
popular trend is also striving for maintaining its positions therefore it become essential for the
companies that they should know about their preference & taste. Regarding a particular
product it is of almost necessary to know the consumers satisfaction to the value offered by
the company in case of dissatisfactory result it is essential to ascertain whether the
dissatisfaction is for entire product or part of it is and what value do the consumers expect
from it? The research will provide the relevant information to the organization about
consumer’s attitude towards their products & services. The research work is sincere effort to
find out the ultimate requirement of consumers for the betterment of research as well as the
organization.
CONTENTS

Serial No. TOPICS PAGE NO.


1 Introduction
1.1 Company overview 1
1.1 Background of the study 6
1.2 Literature review 7
1.3 Global and national scenario 9
1.4 Chapter planning 10
2 Conceptual Framework 11
3 Analysis & Findings
3.1 Objectives 15
3.1 Research methodology 16
3.3 Analysis of findings 18
4 Conclusion and
Recommendation
4.1 Summary 30
4.2 Conclusion 31
4.3 Recommendations 32
4.4 Limitations of the Study 32
Bibliography
Annexure
CHAPTER – 1 Introduction

 Company overview
 Background of study
 Literature Review
 Objectives of research
 Methodology
 Chapter planning

• Type Cooperative
• Industry Dairy/Fast moving consumer good(FMCG)
• Founded 1946 by Tribhuvandas Patel
• Headquarters Anand, Gujarat
• Area served worldwide
• Revenue US$5.9 billion
• No of employee’s 750 employees of marketing arm & 3.6 million.
milk producer
• Parent GCMMF (Gujrat co-operative milk marketing federation)

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat. Formed in 1948,
it is a brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF), which today is jointly owned by 3.6 million milk producers in
Gujarat.

Amul spurred India's White Revolution, which made the country the world's largest producer
of milk and milk products.

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The white revolution was spearheaded by Tribhuvandas Patel under the guidance of Sardar
Patel and Verghese Kurien. As a result, Kaira District Milk Union Limited was born in 1946.
Tribhuvandas became the founding chairman of the organization and led it until his death. He
hired Dr. Kurien three years after the white revolution. He convinced Dr. Kurien to stay and
help with the mission.

Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited
with the success of Amul. Amul has become the largest food brand in India and has ventured
into markets overseas. Amul products are now available in more than 60 countries.

Milk, the inspiration behind a revolution


Over seven decades ago the life of a farmer in Kaira was very much like that of farmers
anywhere else in India. His income was derived almost entirely from seasonal crops. Many
poor farmers faced starvation during off-seasons. Their income from milk buffaloes was
undependable. The milk marketing system was controlled by contractors and middlemen. As
milk is perishable, farmers were compelled to sell their milk for whatever they were offered.
Often, they had to sell cream and ghee at a throwaway price.

1964 was the turning point in the history of dairy development programme in India. Late Shri
Lal Bahadur Shastri, the then Prime Minister of India who visited Anand on 31st October for
inauguration of Amul’s Cattle Feed Plant, having spent a night with farmers of Kaira and
experiencing the success wished and expressed to Mr Kurien, then the General Manager of
Amul that replicating Amul model throughout our country will bring a momentous change in
the socio-economic conditions of the people. To bring this dream into reality, 1965 The
National Dairy Development Board (NDDB) was established at Anand and by 1969-70
NDDB came out with the dairy development programme for India popularly known as
“Operation Flood” or “White Revolution”. The Operation Flood programme, even today,
stands to be the largest dairy development programme ever drawn in the world. This saw
Amul as model and this model is often referred in the history of White Revolution as “Anand
Pattern”. Replication of “Anand Pattern” has helped India to emerge as the largest milk
producing nation in the world.

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Dr. Verghese Kurien (1921-2012)
Architect of “Operation Flood”, the largest dairy development programme in the world, Dr.
Verghese Kurien has enabled India to become the largest milk producer in the World. A man
with a rare vision, Dr. Kurien has devoted a lifetime to realizing his dream – empowering the
farmers of India. He is also known as “Father of White Revolution” or “Dudhwala of India”.

The organisation- An overview


Number of Producer Members 6,94,271
Number of Village Dairy Cooperative Societies 1713
Total Milk Handling Capacity 5 Million litters per day
Milk Collection (Daily Average) 2.5 Million litters
Milk Drying Capacity 150 MT’s per day
Whey Drying Capacity 60 MT’s per day
Cattle Feed Manufacturing Capacity 2500 MT’s per day

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

2004-05 6000 138

2005-06 7090 160

2006-07 8220 202

2007-08 10770 272

2008-09 13780 310

2009-10 16950 360

2010-11 21110 469

2011-12 24660 528

2012-13 28500 528

2013-14 34410 574

2014-15 41420 681

2015-16 48250 736

2016-17 57000 900


Source: www.amuldairy.com

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The Amul Model
The Amul Model of dairy development is a three-tiered structure with the dairy cooperative
societies at the village level federated under a milk union at the district level and a federation
of member unions at the state level.

 Establishment of a direct linkage between milk producers and consumers by


eliminating middlemen
 Milk Producers (farmers) control procurement, processing and marketing
 Professional management

The Amul model has helped India to emerge as the largest milk producer in the world. More
than 15 million milk producers pour their milk in 1,44,500 dairy cooperative societies across
the country. Their milk is processed in 184 District Co-operative Unions and marketed by 22
State Marketing Federations, ensuring a better life for millions.

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Background of the study
The average person is exposed to 2500 advertising messages per day through various media
channels such as billboard, magazines newspapers, etc. As human beings, we have a limited
amount of storage space in which we retain these brands and it is therefore very important for
the future success of brands that the people in charge of managing them are aware of who the
target audience is, what it is in their lives that they want brands to fulfil and how the current
image, perception or attitude of your brand compares to that of your competitor’s brands.

Nowadays, a successful brand can be a determining factor in whether a business is successful.


The process of branding involves creating and managing an identity for your brand through
which a clear message is expressed. It is important that the values and the images associated
with the brand are clearly identified by the organization, regularly “checked” to determine
whether they are still relevant and consistently portrayed at every touch point of consumer. It
is vital that the manufacturers/marketers of the brand understand what the consumers’ wants
and needs are, and they can anticipate what they will be in future. Smart organizations
understand how important it is to create an emotional link between the brands and customers
and even form relationship with them to create a situation of loyal consumers rather than just
satisfied consumers. The purpose of this research report is to perform a brand audit to
measure the brand image of the corporate AMUL brand.

This will prove to be of valuable information for AMUL as well, as it will inform them
whether their current brand positioning is aligned with what the consumer desires and
through uncovering the current brand image profile. AMUL will be aware of whether action
is needed to improve its image.

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Literature Review
Abstract

In this paper we describe a case study of a dairy cooperative, AMUL, in western India that
has developed a successful model for doing business in large emerging economy. It has been
primarily responsible, through its innovative practices, for India to become world’s largest
producer of milk. This paper draws various lessons from the experiences of AMUL that
would be useful to cooperatives globally as well as firms that are interested in doing business
in large emerging markets like India and China. Many of these economies have
underdeveloped markets and fragmented supply bases. Market failures for many of these
small producers are high. On the other hand, the size of both, markets and the suppliers are
large. As a result, firms that identify appropriate business strategies that consider these
characteristics are more likely to succeed in these markets. The following are some key
message from AMUL’s success: firms in these environments need to simultaneously develop
markets and suppliers to synchronize demand and supply planning, develop or become a part
of network of producers (i.e., cooperatives in this case) to obtain scale economies, focus on
operational effectiveness to achieve cost leadership to enable low price strategy. In addition,
a central focus to bring the diverse element together and a long-term approach are required.
In emerging economies different industrial sectors may be at various stages of development.
In some of the sectors all the above environmental characteristics faced may not hold.
However, a subset of strategies followed by AMUL would still be very useful. Thus, firms
that are contemplating addressing large undeveloped markets or have an intention of taking
advantage of extensive but marginal supplier base would still benefit.

Introduction

Since the turn of 19th century, Cooperatives have existed as dominant forms of organization
in the dairy industry around the world. Sometimes they have played the role of developing
infant industry while at other times they have been used to strengthen weak production bases
in an environment where market failures tend to be higher for marginal producers. In some
other cases, a network of small producers has organized themselves to better market their

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products. Management of these cooperatives have also led to some interesting managerial
insights for managers in emerging as well as developed economies. Large emerging
economies, e.g., India and China, have complexities that range from development of markets
(where the largest segment of population is the one which has low purchasing power) to
integration of low cost suppliers who are predominantly very small. For firms that aspire to
conduct substantial business in such markets, such complexities must be recognized and then
overcome. The challenge is to understand the linkages between markets and the society. This
would also require development of a new business model that helps a firm grow in such
environments. This paper is about one such successful model. The Kaira District Milk
Cooperative Union or AMUL in India is an example of how to develop a network of firms to
overcome the complexities of a large yet fragmented market like those in emerging
economies by creating value for suppliers as well as the customers. AMUL has led the milk
dairy revolution in India that has now emerged as one of the largest milk producers in the
world. In this article we will describe the breakthrough vision that led to the simultaneous
development of the market and supply side through a process of social development and
education at AMUL. Clearly, implementation of this vision in a competitive environment and
maintaining sustained growth and profitability requires development of competitiveness on
several dimensions and operational effectiveness. This article provides insights into
management of very large supply chains by adapting and integrating a variety of strategies
and techniques. This includes building networks, developing trust & values in the network,
developing fair mechanisms for sharing benefits across the supply chain, coordination for
operational effectiveness, innovation and modern technology for gaining competitiveness. It
is noteworthy that these successes were achieved within the framework of a network of
cooperatives organized in a hierarchical manner. There are many lessons in AMUL’s success
not only for the cooperative sector but also for firms who intend to do business in emerging
markets.

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Chapter Planning
The first chapter introduction gives us a detailed idea about the background and history
about the AMUL dairy industry.

The second chapter conceptual overview confines about a basic idea about the company and
its working.

The third head, analysis and findings are the most important part of the study where all data
on which the whole project is dependent is properly provided along with proper
interpretation. This is the core area of the study.

The fourth heading, conclusion and recommendations ultimately concludes our results and
interpretation and what we recommend for the benefit of the company.

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CHAPTER- 2
Conceptual Framework

KEY SUCCESS FACTORS:


1. The Amul Girl (The Amul Advertising Campaign)

The Amul girl is the advertising mascot used by the company to promote the brand. The
brand has been cleverly using the cartoon figure in its longest running ad campaign, to instil
an element of humour into its print ads. The content is liked by the people and results in
better customer engagement. This increases the brand recall value for Amul. Hence, the Amul
girl advertising campaign is often described as one of the best Indian advertising concepts.

2. Innovation

Amul has constantly been innovating – be it launching new products, creative marketing
campaigns or challenging traditional societal trends to come up with better ones.

In the 1960’s, Amul became the first brand in the world to make skimmed milk powder from
buffalo milk. Also, with its three-tiered cooperative structure, Amul changed from traditional
operations to a more cost-efficient and effective structure.

For its continuous innovation, the brand won the “CNN-IBN Innovating for Better Tomorrow
Award” and “World Dairy Innovation Award” in the year 2014.

3. Strong Brand

Amul follows the Branded House Architecture way, wherein whatever they promote; they
promote it under one common brand name – Amul. The prime focus is on promoting the
parent brand rather than individual products which helps them gain more brand visibility and
results in lesser marketing and advertising costs.

4. Efficient Supply chain

Amul follows a three-tier cooperative structure which consists of a dairy cooperative society
at the village level that is affiliated with milk unions at the district level which in turn is
federated to a milk federation at the state level. Milk is collected at the village dairy society,
procured and processed at the district milk union and marketed at the state milk federation.

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The greatness of this model lies in the fact that Amul was the first company to follow this
model, and it was replicated all over the country under Operation Flood in the 1970’s. The
model ensures that there’s efficiency and swiftness in operations.

The Amul model has helped India become the largest milk producer in the world.

5. Diverse Portfolio of Product

With its diversified product portfolio, Amul has been able to cater to the needs of all the
segments. From kids to teenagers, men to women, calorie conscious to health conscious, the
company has ensured that it launches products for every segment. Providing value and
benefits to its target segment, Amul has been able to build a strong brand association with its
customers over the years.

The study requires a thorough examination of various terms like ‘consumer behaviour’,
‘marketing management’ with respect to consumer behaviour, ‘consumer decision making
process’, ‘factors influencing buying behaviour’, ‘consumer satisfaction’

CONSUMER BEHAVIOR
 It is defined as all psychological, social and physical behaviour of potential customers
as they become aware, evaluate, purchase, consume, and tell others about products
and services.
 Buying behaviour involves both individual (psychological) and group
Process.

 Buyer behaviour is reflected from awareness right through post purchase


evaluation indicating satisfaction and non-satisfaction, from purchaser.
 Buyer behaviour includes communication, purchasing and consumption
behaviour.
 Consumer behaviour is basically social in nature; hence the social factors play
important roles I am shaping buying behaviour.
 Buyer behaviour includes both customer and industrial behaviour

“Hence consumer behaviour is an orderly process whereby the consumer interacts with
the environment for making a purchase decision on products.”

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CONSUMER BEHAVIOR AND MARKETING MANAGEMENT

Marketing management work around consumers which is the market for them

 Understanding the behaviour is very vital in every segment to plan marketing


activities accordingly.
 Both industrial and individual customers are vital in marketing management.
DIVERSITY OF CONSUMER BEHAVIOR

 Customer and consumer words are referred as synonyms, but the difference exists.
 Customer- the purchaser of product or service, may or may not be the end user.
 Consumer- the end user, may or may not be the purchaser
 New age of business demands differentiation of customers by individual differences
in consumer expectations, preferences and influences.
 Firms to go into depth of consumer behaviour to analyse and act to achieve their
objectives.

CONCEPT AND NEED TO STUDY CONSUMER BEHAVIOR

Consumer behaviour can have said to be the study of how individual make decisions on how
to spend their available resources (time, money, efforts) on various consumption related
items. This simple definition of consumer behaviour tells the market to resolve every activity
around the ultimate consumers and gauge their behaviour by specially focusing on:

 Who buys product or services?


 How do they buy product or services?
 Where do they buy them?
 How often they buy them?
 Why do they buy them?
 How often they use them?

These questions will help in understanding better what factors influences the decision-making
process of the customers. The decision-making process identifies the number of people who

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are involved in this process and describes a role to them like users, deciders, influencers and
buyers.

CONSUMER DECISION MAKING PROCESS

 Stimuli-need, reason, influences, gathering information


 Information processing- process, analyse information about product
 Decision making- based on analysis, decision to go for
 Response- response to buy without any prejudice
 For individual buyers the process is almost similar only with addition of re-buy,
modified re buy or new task.

FACTORS INFLUENCING BUYING BRHAVIOR: -

 Individual factors cause native thinking process-perception, attitude needs/motives


 Personal characteristics- demography, lifestyle, personal traits
 Environmental factors
 Culture- value, beliefs, sub cultural/ Cross cultural factors
 Social class- social class, society
 Influence groups- family, opinion leaders, reference group

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Chapter-3 Data Analysis and Findings

 Objective
 Research Methodology
 Analysis of findings

OBJECTIVES

⮚ To know awareness of people towards Amul milk.


⮚ To know the preference of Amul products with comparison to other competitive
brands like Sudha, mother dairy, and various local brands.
⮚ To know the factors which affects consumer’s buying behaviour while purchase milk.
⮚ Swot analysis of Amul
⮚ To study several factors such as quality, price, easy available etc. that has a positive
influence on brand.
⮚ Ideas about how to increase the sale of the Amul.

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RESEARCH METHODOLOGY:

RESEARCH PROBLEM

 Seek the general perception of consumer towards Amul Milk.


 To know the consumer psyche and their behaviour towards Amul Milk.

OBJECTIVE OF THE RESEARCH

 To know the relationship of sales with the advertisement.


 To know awareness of people towards Amul Milk.
 To know which advertisement tool is mostly preferred by people.
 To know the preference of Amul Milk with comparison to other competitive brands.
 To know the factors which affects consumer’s buying behaviour to purchase milk.

RESEARCH DESIGN

A Research design specifies the methods and procedures for conducting a study. It is a map
(or) blue print to which the research is to be conducted. Descriptive research design has been
considered as a suitable methodology for present study and for data analysis.

SAMPLING DESIGN

The sampling design used was Convenience sampling, which is a non-probability sampling
method. The convenience factors were the availability and approachability of the
respondents.

POPULATION

All types of outlets that stock and sell Amul milk in the markets. The outlets have been
classified into as follows

 Convenience stores: All kinds of shops including bakeries

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 Eateries: all kinds of eating joints

SOURCES OF DATA

Primary sources

The primary data was collected through questionnaires. They were filled using the scheduled
method of data collection by the researcher.

Secondary sources

The secondary sources were used only for collecting information regarding the sample; they
were however not used for analysis

LIMITATIONS OF THE RESEARCH:

The limitations of the research were as follows

1. Lack of proper experience on the part of the researcher in conducting such studies in the
past.

2. Time frame required was not enough to survey more number of outlets.

ANALYSIS TECHNIQUES

Quantitative analysis is performed using the data collected at each outlet to estimate the
presence of Amul milk. Tools Utilized

 Percentage Analysis
 Graph Chart

SAMPLING

1. Sampling Technique: Non-probability sampling

2. Sample Unit: People who buy milk available in retail outlets, superstores

3. Sample size: 100

4. Method Direct interview through questionnaire.

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5. Scale: Dyspnoeic scale and liken scale

DATA ANALYSIS AND INTERPRETATION:

The collected data were not easily understandable, so I like to analyse the collected data in a
systematic manner and interpreted with simple method.

The analysis and interpretation of the data involves the analysing of the collected data and
interpretation it with pictorial representation such as bar charts, pie charts and others.

Analysis of findings

Q1. Your preferred milk brand is__:

a. AMUL
b. MOTHER DAIRY
c. SUDHA
d. OTHERS

Options Percentage (%)


AMUL 70
MOTHER DAIRY 16
SUDHA 11
OTHERS 3
TOTAL 100

16
% OF CONSUMERS
amul mother dairy sudha others

3%
11%

16%

70%

Q2. You prefer AMUL because of its__:

a. Quality
b. Taste
c. Price
d. Availability
e. Packaging
Factors Percentage (%)
Quality 54
Taste 27
Price 4
Availability 13
Packaging 2
TOTAL 100

17
% of customers
60
54

50

40
PERCENTAGE

30 27

20
13
10
4
2
0
quality taste price availability packaging
FACTORS

Q3. Type of AMUL milk preferred by you is___.

a. Flavoured milk
b. Regular milk

Option Percentage (%)


Flavoured milk 26
Regular milk 74
100

PERCENTAGE

flavored milk
26%

regular milk
74%

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Q4. You will rate quality of AMUL milk as___.

a. Very poor
b. Poor
c. Average
d. Good
e. Excellent

Option Percentage (%)


Very poor 1
Poor 0
Average 11
Good 58
Excellent 30
TOTAL 100

RATING
poor
very poor 0% average
1% 11%

excellent
30%

good
58%

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Q5. You prefer consuming AMUL milk in ___ packaging.

a. Poly pack
b. Tetra pack
c. Bottle

Options Percentage (%)


Poly pack 40
Tetra pack 44
Bottle 16
TOTAL 100

bottle
16%

poly pack
40%

tetra pack
44%

Q6. Your monthly expenditure on AMUL milk is around___.

a. 500-1000
b. 1000-1500
c. 1500 and above
Options Percentage (%)
500-1000 52
1000-1500 34

20
1500 and above 16
TOTAL 100

60
52
50

40
PERCENTAGE

34

30

20 14

10

0
500-1000 1000-1500 1500 and above
MONTHLY EXPENDITURE

Q7. Type of AMUL milk you prefer is__.

a. AMUL Taaza (blue)


b. AMUL Shakti (green)
c. AMUL Gold (red)
d. AMUL Slim and Trim (dark green)

Options Percentage (%)


Amul taza 61
Amul skakti 15
Amul glod 20
Amul slim and trim 4
TOTAL 100

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% OF CONSUMERS
amul slim and
trim, 4

amul shakti, 20

amul glod, 15 amul taaza, 61

Q8. You find prices of amul milk ___.

a. Very high
b. Moderate
c. Cheap
Options Percentage (%)
Very high 12
Moderate 86
Cheap 2
TOTAL 100

% OF CONSUMERS
cheap very high
2% 12%

moderate
86%

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Q9. You would rate availability of AMUL milk as____.

a. Easily available
b. Available at selected stores
c. Difficulty in availability
Option Percentage (%)
Easily available 67
Available in selected 28
stores
Difficulty in availability 5
TOTAL 100

PERCENTAGE
easily available available in selected store difficulty in availability

5%

28%

67%

Q10. ____ problem is faced by you regarding AMUL milk.

a. Leakage
b. Spoilage
c. Odd colouring
d. Other
e. None

23
Option Percentage (%)
Leakage 5
Spoilage 15
Odd colouring 10
Other 2
None 68
TOTAL 100

80

70
68
60

50
PERCENTAGE

40

30

20

10 15
10
5 2
0
LEAKAGE SPOILAGE ODD COLORING OTHER NONE
PROBLEMS

Q11. Your overall rating of AMUL as a brand is____.

a. Excellent
b. Good
c. Average
d. Poor
e. Very poor
Options Percentage (%)
Excellent 11

24
Good 39
Average 21
Poor 18
Very poor 11
TOTAL 100

PERCENTAGE
very poor excellent
11% 11%

poor
18%

good
39%

average
21%

Q12. If you would recommend any suggestion for AMUL milk it would be___.

a. Improvement in quality
b. Prices should be lowered
c. More retail outlets should be opened.
d. More types of AMUL milk should be launched.
e. None
Options Percentage (%)

Improvement in quality 15
Prices should be lowered 18
More retail outlets should be opened. 15
More types of AMUL milk should be launched. 24

25
None 28
TOTAL 100

PERCENTAGE
A
15%
E
28%

B
18%

D C
24% 15%

SWOT ANALYSIS

Strength

The companies have Indian origin, thus create a feel of oneness in the mind of Indian
customers.It manufactures only milk and milk products, which is purely vegetarian, thus it
provides quality confidence in the minds of the customers.

It is aiming at rural segment, which covers a large area of loyal customers, which other
companies failed to do so.People are quite confident about the quality of AMUL products.

Weaknesses

There are various big players in the milk market, which acts as major competitors, restricting
their growth.

Lack of capital invested in comparison with other companies.

Improper distribution channel in India.

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Opportunities

There is a lot of potential for growth and development as huge population stays in rural
market whereas other companies are not.

The milk market is at growth stage with very less competition so by introducing new brand
and intensive advertising there can be a very good scope in future.

Threats

The major threat is from other companies who hold the majority share of consumers in Indian
market i.e. Sudha and mother dairy.

There exists no brand loyalty in the milk market and consumers frequently shift their brands.

New companies entering in Indian market causes a lot of problems for AMUL.

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Chapter-4

 Summary of observations
 Conclusion
 Recommendation
 Limitation of the study

SUMMARY:

Q1- It can be observed 70 out of 100 people prefer Amul over other milk brands. Hence, it is
obvious that Amul is the most preferred brand amongst consumers.

Q2- It can be observed that majority respondents prefer AMUL milk because of its superior
quality. Taste and Availability are the next most preferred factors that induce purchase of
AMUL milk. Price and packaging are the least preferred factors to buy AMUL milk.

Q3- It is observed that 26% respondents prefer flavoured milk over regular milk and 74%
respondents prefer to buy regular milk over flavoured milk.

Q4- It can be observed that 58% of the respondents believe that quality of AMUL is good.
This indicates that AMUL doesn’t compromises with its quality to lower its total cost.

Q5- It has been observed that tetra packed milk is preferred by the respondents. Milk in
bottled packaging is least consumed.

Q6- It can be observed that majority of the respondents monthly spent 500-1500 rupees on
AMUL milk consumption. This implies that AMUL milk is relatively affordable.

Q7- It is observed that the most preferred type of milk by the respondents is AMUL Taza
(61%). Next preferred type is AMUL shakti (20%). And AMUL gold and AMUL slim and
trim are the least preferred (10%).

Q8- It can be observed that majority respondents think that prices of AMUL milk are
moderately high i.e. it is affordable. With reference of Q2 of the questionnaire, we understand
that AMUL doesn’t compromise with the quality of its milk to lower its costs. It also
indicates that Amul’s consumers are price sensitive.

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Q9- It is observed that AMUL milk is easily available at every retail store as all the
respondents marked that it is easily available.

Q10- It can be observed that most of the consumers face no problem with AMUL milk. So,
we can conclude that overall there is least problem suffered by consumers because of AMUL
milk.

Q11- It is observed that 11% people think that AMUL is excellent. 39% think that it is good.
21% think that it is average. And 11% of the respondents think that it is poor.

Q12- It is observed that 28% people had no suggestions for AMUL. 24% people think that
more variety of AMUL milk should be introduced. 18% thinks prices should be lowered.
15% think quality should be improved and 15% think that there is any need to set up more
outlets for better availability of AMUL milk.

CONCLUSION:
AMUL has risen from Indian soil and it remains Indian in every sense. With roots well
established in the domestic market Amul is all set to fight in the global arena. Amul is
biggest sourcing base for milk products in India, people are more comfortable buying
products in the Value for Money segment and Amul is well present in this division. Amul has
built up a good image as a brand in which generations of customers have placed their trust,
coming to pricing strategy Amul is the price warrior and currently has a very wide range of
products to offer for all price points. Amul is recognized for well established distribution and
delivery network for dairy products.

With the commitment it has shown in the past it will not be too long when Amul emerges a
winner on all fronts. There is ample scope in the low-priced segment as also in other
categories where consumers presently are dissatisfied with the quantity being provided vis a
vis the price being charged. Delhi market is not restricted to monopoly outlets. There are a
considerable number of retailers who are currently stocking more than two brands. So Amul
can overcome it as earlier it had to overcome this problem in the Mumbai market. Mother
dairy is right now in an investment mode and is concentrating on expanding the market as
also its reach. Amul should direct its resources towards cashing in on Walls market
development.

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Amul can capture the more evolved young adults and children who are open to new products
provided they meet their expectations.

RECOMMENDATION:

 The supply must be properly fulfilled so that the need of the customer is satisfied.
 The company and the dealer should develop its marketing information system, up to-
date information of its competitor’s policy, price and product, target market so that
the company can identify its strengths and weaknesses.
 Brand preference studies reveal that comparatively there is more preference of AMUL
among consumers to attract and maintain its consumers and therefore advertising
campaigns are intensified.

LIMITATIONS OF THE STUDY

Following are the limitations for carrying out this project work:

 As the study was conducted in restricted area only, it is not conclusive for other parts
of India.
 Data collected was limited.
 Many respondents did not answer all the questions.
 The study only focused on the milk industry of AMUL, so it doesn’t comment on
AMUL as a brand.

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BIBLIOGRAPHY

WEBSITES:

www.researchgate.net/publication/279923559_Amul_A_Cooperative_with_a_Brand

www.businessinsider.in/topic/amul

www.google.com

www.wikipedia.com

www.amul.com

www.marketresearch.com

www.dairy.com

BOOKS AND JOURNALS

Annual Reports of AMUL of the past 4 years

Journals on AMUL

Journal on dairy science

NEWSPAPERS

The Times of India

The Hindu Business Line

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ANNEXURE:

Questionnaire:

NAME: AGE:

ANNUAL INCOME: GENDER:

Q1. Your preferred milk brand is__:

 AMUL
 MOTHER DAIRY
 SUDHA
 OTHERS

Q2. You prefer AMUL because of its__:

 Quality
 Taste
 Price
 Availability
 Packaging

Q3. Type of AMUL milk preferred by you is___.

 Flavoured milk
 Regular milk

Q4. You will rate quality of AMUL milk as___.

 Very poor
 Poor
 Average
 Good
 Excellent

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Q5. You prefer consuming AMUL milk in ___ packaging.

 Poly pack
 Tetra pack
 Bottle

Q6. Your monthly expenditure on AMUL milk is around___.

 500-1000
 1000-1500
 1500 and above

Q7. Type of AMUL milk you prefer is__.

 AMUL Taaza (blue)


 AMUL Shakti (green)
 AMUL Gold (red)
 AMUL Slim and Trim (dark green)

Q8. You find prices of amul milk ___.

 Very high
 Moderate
 Cheap

Q9. You would rate availability of AMUL milk as____.

 Easily available
 Available at selected stores
 Difficulty in availability

Q10. ____ problem is faced by you regarding AMUL milk.

 Leakage
 Spoilage

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 Odd colouring
 Other
 None

Q11. Your overall rating of AMUL as a brand is____.

 Excellent
 Good
 Average
 Poor
 Very poor

Q12. If you would recommend any suggestion for AMUL milk it would be___.

 Improvement in quality
 Prices should be lowered
 More retail outlets should be opened.
 More types of AMUL milk should be launched.
 None

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