Amul Project

EXECUTIVE SUMMARY:
As a part of MBA IV Semester, this project work was undertaken. The project Title is To study
the penetration level of Amul dairy products and ice creams and services delivery in MFs
and A-class outlets of Hubli Dharwad City. This work was undertaken at GCMMF Dharwad
From February 1st to May 25th.
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It
is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk
producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling example
of a co-operative organization's success in the long term. The Amul Pattern has established itself
as a uniquely appropriate model for rural development. Amul has spurred the White Revolution
of India, which has made India the largest producer of milk and milk products in the world. It is
also the world's biggest vegetarian cheese brand .
Need for the study:

Project is to understand reasons behind slow moving flavors of ice creams and competitor
promotional activities It will help the company to adopt new promotional activities and This will
also help the company to concentrate on their loop holes. The study will helps to know the
feelings and opinions of the retailers about the Amul Beverages.
TITLE OF THE STUDY

To study the penetration level of Amul dairy products and ice creams and services
delivery in MFS and A-class outlets
OBJECTIVES:
1. To know the product preferences of Amul in Hubli Dharwad MFs.
2.
To know the service delivery quality.
3. Awareness about the Amul products in MFs
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KLESs Institute Of Management Studies and Research, Hubli
Research Methodology:
Type of research
Exploratory research is concerned with providing insights and understanding where information
is needed is defined only loosely. Research process is flexible and unstructured. Sample is small
and non-representative. This study includes extensive study of organization and market survey of
retailers to satisfy the objectives.
Data sources:
a) Primary data: Personal interaction and structured questionnaire for retailers are being made
use of to gather primary data.
b) Secondary data: Sources of secondary data are Internet and company documents. Secondary
data is used to know about the FMCG industry and the information about the company.
Research instrument:
Questionnaire: Questionnaire consists of questions for retailers, which are of the following types.
A) Multiple-choice questions
B) Likert scale questions
D) Open-ended questions for gathering retailers expectations from the company and suggestions
for improving sales.
SAMPLING METHOD:
Sampling unit
: Individual retailers.
Sampling method
:Non probabilistic Convenience sampling
Sample size
: 13MFs & 47 A- Class Outlets
Sampling plan
: Questionnaire.
Population
: 400 Retailers
Coverage
:Hubli & Dharwad city
Duration
:15 weeks
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Benefits of the study:

1. This study has helped me to understand the role of FMCG Sector in india and the various
dairy products and ice cream products companies and the level of competition between
them.
2. It helped me to understand the various products in the market and the various aspects that
are involved in the marketing of such products
3. This study has provided me opportunity to interact with the various staff members of the
organization to gain knowledge
4. This study has provided me an in-depth knowledge about the dairy products and ice
cream products and its role in FMCG sector.
FINDINGS.
1. Out of 60 Sample size surveyed.23.33 % are influenced by Brand Image,3.33% are by
low price ,3.33% are by Service,45 % are by Demand ,25.33 are by Quality.
2. It has been found that among 60 retailers 74.98% and 81% are aware about the all amul
Dairy Products and Amul Ice Cream.
3. It was revealed that around 51.13% and 53.55% of amul Dairy products and Ice Creams
are being sold by the retailers.
4. It was found that 55% retailers are place the order once in a week ,58.33% once in a
fortnight ,6.67% whenever required.
5. 35% Retailers gets the delivery within 0-3 days.46.67% by within 5-7 days,18.33 % gets
within 3-5 days.
6. 41.7% of retailers are said that overall Service quality provided by c and f agent of amul
is excellent.
7. 7.35% of retailers are said that Amul product delivery is good.
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INDUSTRY PROFILE
FMCG industry
The FMCG industry is volume driven and is characterized by low margins. The products
are branded and backed by marketing, heavy advertising, slick packaging and strong distribution
networks. The FMCG segment can be classified under the premium segment and popular
segment. The premium segment caters mostly to the higher/upper middle class which is not as
price sensitive apart from being brand conscious. The price sensitive popular or mass segment
consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly
brand conscious. Products sold in the popular segment have considerably lower prices than their
premium counterparts
What are Fast Moving Consumer Goods (FMCG)
Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples
of FMCG generally include a wide range of frequently purchased consumer products such as
toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as
other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG
may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks,
tissue paper, and chocolate bars.
Indian FMCG Sector
The Indian FMCG sector is the fourth largest in the economy and has a market size of
US$13.1 billion. Well-established distribution networks, as well as intense competition between
the organized and unorganized segments are the characteristics of this sector. FMCG in India has
a strong and competitive MNC presence across the entire value chain. It has been predicted that
the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The
middle class and the rural segments of the Indian population are the most promising market for
FMCG, and give brand makers the opportunity to convert them to branded products. Most of the
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product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita
consumption as well as low penetration level, but the potential for growth is huge.
The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid
urbanization, increased literacy levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as well.
According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs,
and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these
are owned by Hindustan Lever. Pepsi is at number three followed by Thumps Up. Britannia
takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9).
The Top 10 companies in FMCG sector
S. NO.
Companies
1.
Hindustan Unilever Ltd.
2.
ITC (Indian Tobacco Company)
3.
Nestl India
4.
GCMMF (AMUL)
5.
Dabur India
6.
Asian Paints (India)
7.
Cadbury India
8.
Britannia Industries
9.
Procter & Gamble Hygiene and Health Care
10.
Marico Industries
The personal care category has the largest number of brands, i.e., 21, inclusive of Lux,
Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands in the 21, aggregating
Rs. 3,799 crore or 54% of the personal care category. Cigarettes account for 17% of the top 100
FMCG sales, and just below the personal care category. ITC alone accounts for 60% volume
market share and 70% by value of all filter cigarettes in India.
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The foods category in FMCG is gaining popularity with a swing of launches by HLL,
ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637 crore. Nestle
and Amul slug it out in the powders segment. The food category has also seen innovations like
softies in ice creams, chapattis by HLL, ready to eat rice by HLL and pizzas by both GCMMF
and Godrej Pillsbury. This category seems to have faster development than the stagnating
personal care category. Amul, India's largest foods company, has a good presence in the food
category with its ice-creams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top
100 FMCG brands, dominates the biscuits category and has launched a series of products at
various prices.
Market size
The Indian FMCG industry size was estimated to be around US$ 15 bn in 2007, as per
ASSOCHAM. Of this, close to US$ 8 bn was confined to the rural areas with US$ 4 bn in the
urban & metro area and almost US$ 3 bn in the semi-urban area. The large young population of
approximately 180 mn in the rural and semi-urban region is driving the Indian FMCG industry,
with the continuous rise in their disposable income, life style, food habit etc, among others. The
lifestyle of this section of the population is undergoing a rapid change on the back of rising
income levels.
According to ASSOCHAM, the market size of FMCG in the rural and semi-urban
segment is likely to jump up by 10% and 6% respectively by 2010. Currently, almost 52% of the
rural market size is captured by FMCG products and is projected to reach 57% in the next three
years. This size is further expected to grow by 10% in the next three years.
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Higher employment generation

Employment generation was triggered by a thrust in industrial activity, which led to newer jobs
in sectors like logistics, infrastructure, and other related activities. The format of modern trade
has also enabled more employment in India. Organized retail has augured well for the FMCG
sector which has thereby derived greater exposure leading to more employment. Furthermore,
organized retail has also created more job opportunities without any gender bias for our teeming
population. As per DIPP statistics, the food processing industry reported the highest proposed
employment numbers during the period Aug 1991- Jun 2008, indicating a growth of 2.1% when
compared to the previous corresponding period. Similarly, the vegetable oil & vanaspati segment
and soaps, cosmetics and toiletries segment registered a growth of 3.4% and 3% respectively,
during the above mentioned period.
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Foreign Direct Investment in the FMCG Sector
In CY07, FDI inflows in sectors like food processing; soaps, cosmetics & toilet preparations
and vegetable oils & vanaspati together registered a growth of 41%.
The total FDI in the food processing industry underwent a growth of 15% in CY07. This
came on the back of a robust 38% growth in the previous year.
The pattern of FDI inflow witnessed a huge variation in between the years 2004-2007 in the
soaps, cosmetics and toiletries segment. From an almost 100% decline in CY06, the FDI
inflow underwent a sharp growth of more than four times in CY07.
The vegetable oils and vanaspati segment registered a robust rise of more than two times in
CY07 as against the previous year when it had recorded a more than 50% decline.
Proposed and implemented domestic investments in various FMCG segments

Food Processing: The proposed Industrial Entrepreneur Memorandum (IEM) is growing
rapidly over the last couple of years in various FMCG sub segments. The ratio of implemented
IEM to proposed investments in the food processing segment underwent a steady rise between
2004 and 2006, from 3.4% to 13.4%. However, in 2007, while proposed investments amounted
to Rs 21,700 mn, those implemented summed up to a mere Rs 2,630 mn, indicating a ratio of
12%
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Scope of the Sector

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector
in the economy. A well-established distribution network, intense competition between the
organized and unorganized segments characterizes the sector. FMCG Sector is expected to grow
by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It
has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs
92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the
chocolates and confectionery categories are estimated to be the fastest growing segments, says an
HSBC report. Though the sector witnessed a slower growth in 2002-2004, it has been able to
make a fine recovery since then.
For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter.
An estimated double-digit growth over the next few years shows that the good times are likely to
continue.
Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the Indian
rural FMCG market is something no one can overlook. Increased focus on farm sector will boost
rural incomes, hence providing better growth prospects to the FMCG companies. Better
infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit
from growing demand in the market. Because of the low per capita consumption for almost all
the products in the country, FMCG companies have immense possibilities for growth. And if the
companies are able to change the mindset of the consumers, i.e. if they are able to take the
consumers to branded products and offer new generation products, they would be able to
generate higher growth in the near future. It is expected that the rural income will rise in 2007,
boosting purchasing power in the countryside. However, the demand in urban areas would be the
key growth driver over the long term. Also, increase in the urban population, along with increase
in income levels and the availability of new categories, would help the urban areas maintain their
position in terms of consumption. At present, urban India accounts for 66% of total FMCG
consumption, with rural India accounting for the remaining 34%.
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FOOD INDUSTRY
The food industry is the complex, global collective of diverse businesses that together
supply much of the food energy consumed by the world population. Only subsistence farmers,
those who survive on what they grow, can be considered outside of the scope of the modern food
industry.
The food industry includes:
Regulation: local, regional, national and international rules and regulations for food production
and sale, including food quality and food safety, and industry lobbying activities
Education: academic, vocational, consultancy
Research and development: food technology
Financial services: insurance, credit
Manufacturing: agrichemicals, seed, farm machinery and supplies, agricultural construction,
etc.
Agriculture: raising of crops and livestock, seafood
Food processing: preparation of fresh products for market, manufacture of prepared food
products
Marketing: promotion of generic products (e.g. milk board), new products, public opinion,
through advertising, packaging, public relations, etc
Wholesale and distribution: warehousing, transportation, logistics
Retail: supermarket chains and independent food stores, direct-to-consumer, restaurant, food
services
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Advantage of India under Food Industry:

India is one of the largest food producers in the world
India has diverse agro-climatic conditions and has a large and diverse raw material base suitable
for food processing companies
Investment requirement of around US$ 15 billion exists in the food processing sector
India is looking for investment in infrastructure, packaging and marketing
India has huge scientific and research talent pool
A largely untapped domestic market of 1000 million consumers
300 million upper and middle class consume processed food
200 million more consumers expected to shift to processed food by 2010
Well-developed infrastructure and distribution network
Rapid urbanization, increased literacy, changing life style, increased number of women in
workforce, rising per capita income- leading to rapid growth and new opportunities in
food and beverages sector
50 per cent of household expenditure by Indians is on food items
Strategic geographic location (proximity of India to markets in Europe and Far East,
South East and West Asia)
Under the food industry, Dairy product is very important part of food processing. Dairy
processing is acting good role in India.
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Dairy Processing
India ranks first in the world in terms of milk production. Indian production stands at 91
million tones growing at a CAGR of 4 per cent. This is primarily due to the initiatives taken by
the Operation flood programs in organizing milk producers into cooperatives; building
infrastructure for milk procurement, processing and marketing and providing financial, technical
and management inputs by the Ministry of Agriculture and Ministry of Food Processing
Industries to turn the dairy sector into viable self-sustaining organized sector. About 35% of milk
produced in India is processed. The organized sector (large scale dairy plants) processes about 13
million tons annually, while the unorganized sector processes about 22 million tons per annum.
In the organized sector, there are 676 dairy plants in the Cooperative, Private and Government
sectors registered with the Government of India and the state Government.
INTERESTING ICE CREAM FACTS
Although the origin of ice cream is unclear in history books, the first Ice Cream parlor
in America opened in New York City in 1776.
In 1984, President Ronald Reagan designated July as National Ice Cream Month and the
third Sunday of the month as National Ice Cream Day.
More ice cream is sold on Sunday than any other day of the week.
Ice cream and related frozen desserts are consumed by more than 90% of households in
the U.S.
It takes the average person just about 50 licks to polish off a single scoop Ice cream
cone.
Most popular Creation at Cold Stone Creamery? Peanut Butter Cup Perfection made
with Chocolate Ice Cream with Peanut Butter, Reese's Peanut Butter Cup and Fudge.
ICE CREAM SALES AND TRENDS
Total U.S. production of ice cream and related frozen desserts in 2004 amounted to
about 1.6 billion gallons, up about 1.3% over the year prior, translating to about 22
quarts per person - Source: USDA.
In 2002, total U.S. sales of ice cream and frozen desserts reached $20.5 billion. Of
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that total, $8.1 billion was spent on products for "at home" consumption, while $12.5
billion was spent on "away from home" frozen dessert purchases (scoop shops,
foodservice and other retail sales outlets)
The trend in ice cream is certainly towards "indulgence" and the sales prove it.
Premium and super-premium quality ice creams (with 41.4 percent of the total dollar
sales) continue to outsell regular ice cream as well as the light (7% of overall sales),
reduced fat (0.7% of overall sales), low fat (3% of overall sales) and nonfat (2% of
overall sales) products all showing declines.
ICE CREAM DEFINED
Super-Premium Ice Cream has very low overrun (air) and high fat content, and uses
only the highest quality ingredients.
Ice Cream is a frozen dessert product containing at least 10% milk-fat and at least
20% total milk solids, safe and suitable sweeteners and optional stabilizing, flavoring
and dairy derived ingredients.
Reduced Fat Ice Cream is made with 25% less fat than the referenced ice cream.
Light or Lite Ice Cream is made with 50% less fat or 1/3 fewer calories than
referenced ice cream, provided that in the case of caloric reduction, less than 50% of
the calories are derived from fat.
Low fat Ice Cream contains not more than 3 grams of fat per serving.
Nonfat / Fat Free Ice Cream contains less than 0.5 grams of fat per serving.
No Sugar Added Ice Cream may contain artificial sweeteners, but is not sweetened
with added sugar.
Sorbet is frozen dessert similar in composition to an ice. It is a non-dairy product

with relatively high sugar content. It generally contains fruit, fruit puree or fruit juice.
Exotic flavors are often used and citric acid may be added to enhance the taste.
Frozen Yogurt is a frozen dessert similar in composition to nonfat or low fat ice
cream mixes containing cultured skim milk and lives active cultures in the finished
frozen product. As an industry standard, the fat content is not more than 4%.
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Ice Cream Shop making its' own fresh Micro Batch Ice Cream Flavors daily along with specialty
coffee and limited breakfast, lunch and dinner menu. Can be edited for any type of Ice Cream
concept also includes wholesale as well as retail sales of homemade pints, quarts, and pies.
America's economy restaurants are the nation's largest private-sector employers, generating an
annual economic impact of $1 trillion. Every dollar spent dining out generates more than two
dollars for other industries. On an average day in 2006 the Industry will generate more than 1.4
billion dollars in sales. According to the National Restaurant Association the nation's more than
878,000 restaurants will have reached an estimated $511 billion in sales in 2006,( the half trillion
dollar mark) the 15th year of real consecutive growth for the Industry.
Overall the Industry as whole looks destined for solid continuous growth through 2010 as
demographics lead the way. Today's consumers spend 44% of every food dollar on meals, snacks
and beverages purchased away from home up from 25% in 1955. Food away from home is no
longer considered a luxury but it is considered to be a component of to day's convenience driven
lifestyle.
THE ICE CREAM SEGMENT

The Global Market for Ice Cream is now more than 21 billion dollars annually. Ice cream
and related frozen desserts are consumed by more than 93% of households in the United States
and consume more than 1.6 billion gallons annually. In the U.S. about 50% is sold through Super
Markets and 50% at local Ice Cream Parlor. Operators took a hit in 2004 as a combination of
political unrest and natural disasters overseas, and fluctuations in the dairy industry in this
country left ice cream manufacturers grappling with higher prices for key ingredients including
milk, (Butterfat), vanilla and cocoa. Food prices increased at their fastest rate since1990, due
mostly to a combination of forces, including trade disruptions following evidence of Bovine
Spongiform Encephalopathy (BSE) in both the U.S. and
Canada, large increases in the farm price of milk, and weather-related damage to some fruit and
vegetable crops. These unexpected shocks to the food supply system, along with a recovering
U.S. economy and increased energy prices, were the main causes of the larger than expected
increase in food prices but the outlook is much better for 2006 as prices continue to moderate
and steady growth in demand continues. Starting a small business is always risky, and the chance
of success is slim.
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According to the U.S. Small Business Administration, over 50% of small Businesses fail in the
first year and 95% fail within the first five years. Whether starting a new Ice Cream Parlor are
looking to raise additional capital to expand currently profitable Ice Cream Parlor, or looking to
evaluate and value to Ice Cream Business to sell, current statistics prove that do much better with
a business plan than without. According to Dunn and Bradstreet the primary reasons for failure
vary, but all of the reasons come under the category of poor planning.
The second largest Industry in the United States, the Food Service Industry, representing 4% of
the U.S. Gross National Product in the most competitive Industry in the world. Management
decisions will decide whether business survives or thrives in the face of increased competition.
The most important benefit of a business plan is that it sets the stage for the future Ice Cream
Shop as it to be positioned in the marketplace. A business plan will make it easy for banker to
take action as gains insight into the details of business and the goals that outlined. Potential
investors can review plan and decide whether or not to make an investment based upon the risk.
It will benefit most as study and gain detailed insight into own operations. Updating and
constantly reviewing plan will give more insight as both a manager and decision maker.
TIME IS MONEY...
It has been estimated that it takes an average of 100 hours to research, and write a comprehensive
business plan within any Industry. Creating and compiling the five year financial plan and
forecasts including 5 years of budgets, income statements, balance sheets, cash flow analysis,
key financial ratio analysis, and break even analysis can take more than 20 hours of work by
accountant. Now consider sitting down in front of computer to edit and fill in the details of an
already written and organized Ice Cream Shop business plan and outline.
INDUSTRY ANALYSIS OF ICE CREAM

The Ice Cream Industry Analysis included, written based upon current sources including the
National Restaurant Associations Food Industry Analysis and even covers the state of the current
vanilla and butterfat markets. Now computer's word processor to turn this sample plan. Revenue
assumptions covering cones, specialty cones, Flavor Burst, Specialty Items, Frozen Treats,
Razzles, Malts, Shakes, Ice Cream Pies, pints and quarts sold both at retail and wholesale. Add
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in additional Food and Beverage Breakfast, Lunch and Dinner menu, operating expense, and
working capital assumptions using computer's spreadsheet program, (Excel). Five years
projected month to month-operating budgets, income statements, balance sheets, cash flow
analysis, breakeven analysis and key financial ratio analysis. Once finished editing, print plan
and simply insert it into the three ring binders included, indexing it according to the pre-labeled
Inserts.
SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY

Strengths:
Demand profile: Absolutely optimistic.
Margins: Quite reasonable, even on packed liquid milk.
Flexibility of product mix: Tremendous. With balancing equipment, you can keep on adding to
your product line.
Availability of raw material: Abundant. Presently, more than 80 per cent of milk produced is
flowing into the unorganized sector, which requires proper channelization.
Technical manpower: Professionally-trained, technical human resource pool, built over last 30
years.
Weaknesses:
Perishability: Pasteurization has overcome this weakness partially. UHT gives milk long life.
Surely, many new processes will follow to improve milk quality and extend its shelf life.
Lack of control over yield: Theoretically, there is little control over milk yield. However,
increased awareness of developments like embryo transplant, artificial insemination and
properly managed animal husbandry practices, coupled with higher income to rural milk
producers should automatically lead to improvement in milk yields.
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Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk
procurement problematic. But with the overall economic improvement in India, these problems
would also get solved.
Problematic distribution: Yes, all is not well with distribution. But then if ice creams can be sold
virtually at every nook and corner, why cant we sell other dairy products too? Moreover, it is
only a matter of time before we see the emergence of a cold chain linking the producer to the
refrigerator at the consumers home!
Competition: With so many newcomers entering this industry, competition is becoming tougher
day by day. But then competition has to be faced as a ground reality. The market is large enough
for many to carve out their niche.
Opportunities:
"Failure is never final, and success never ending. Dr Kurien bears out this statement perfectly.
He entered the industry when there were only threats. He met failure head-on, and now he
clearly is an example of never ending success! If dairy entrepreneurs are looking for
opportunities in India, the following areas must be tapped:
Value addition: There is a phenomenal scope for innovations in product development,
packaging and presentation. Given below are potential areas of value addition:
Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer,
khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and flexibility in the
market place along with opportunities in the field of brand building.
Addition of cultured products like yoghurt and cheese lend further strength - both in terms of
utilization of resources and presence in the market place.
A lateral view opens up opportunities in milk proteins through casein, caseinates and other
dietary proteins, further opening up export opportunities.
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Yet another aspect can be the addition of infant foods, geriatric foods and nutritionals.
Export potential: Efforts to exploit export potential are already on. Amul is exporting to
Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty,
opportunities will increase tremendously for the export of agri-products in general and dairy
products in particular.
Threats:
Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of
place in the industry. Organized dissemination of information about the harm that they are doing
to producers and consumers should see a steady decline in their importance.
The study of this SWOT analysis shows that the strengths and opportunities far
outweigh weaknesses and threats. Strengths and opportunities are fundamental and
weaknesses and threats are transitory. Any investment idea can do well only when you have
three essential ingredients: entrepreneurship (the ability to take risks), innovative approach (in
product lines and marketing) and values (of quality/ethics).
The Indian dairy industry, following its delicensing, has been attracting a large number of
entrepreneurs. Their success in dairying depends on factors such as an efficient yet economical
procurement network, hygienic and cost-effective processing facilities and innovativeness in the
market place. All that needs to be done is: to innovate, convert products into commercially
exploitable ideas. All the time keep reminding yourself: Benjamin Franklin discovered
electricity, but it was the man who invented the meter that really made the money.
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MAJOR PLAYERS IN THE DAIRY FOOD INDUSTRY

Company
Brands
Major Products
Nestle India Limited
Milkmaid,Cerelac, Lactogen
Sweetened condensed Milk

and Milk powder
Milk food Limited
Milk food
Ghee, ice cream and Other

milk products
Smithkline Beecham Limited
Horlics
Malted milk food, Milk fluid,

other Milk based Baby foods.
Indodan Industries Limited
Indana
Condensed milk, Skimmed

Milk powder, chilled and
processed milk, Dairy milk
whitener.
Gujarat Co-operative Milk AMUL.
Butter,
Milk,
Cheese,
Marketing Federation limited
Pannier, Ice cream, and other

major milk food products
H J Heinz Limited
Cadbury
Farex, Complan, Glactose, Infant Milk food, Malted

Bonnie mix, Vitamilk.
Milk food.
Bournvita
Malted food.
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HUBLI DEPOT:
WORKING MEMBER:
Asst sales manager, Depots In charge (one member)
Main Account In charge (one member)
Account In charge (one member)
Sales representatives (three member).
Main objectives:
Sales and sales monitoring.
To target reach.
Selecting Distributor:
First they will do market survey after that only distributor was selected.
Conditions for distributor they must have Financial sound distribution vehicle, and aggressive
sales persons.
This depot will cover all North Karnataka

48 distributors are they for dairy product
11 distributors are they for Ice cream Product.
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Departmental Study
There are various Departments in the organization and they are as follows
1) Accounts Department
2) Marketing and sales Department
ACCOUNTS DEPARTMENT:
To the management the company auditors do final auditing.
In this department the
financial accounts of the companies transactions are properly maintained. Most of the accounting
work is done on the computers to maintain accuracy of the accounts. The accounting procedure
is based on the usual accounting principals. To maintain the day-to-day case transactions of the
company. The daybook with cash & bank columns are maintained. It also maintains the journal,
ledger & subsidiary books.
Closing of the accounts is done on 31st of March every year. At the end of the accounting period
trading account, profit & loss account & balance sheet is prepared to ascertain the profit or loss
made by the company in that particular year. The final accounting reports are submitted.
MARKETING AND SALES DEPARTMENT

Marketing objectives:
To increase the market share of amul.
To achieve sales of Ice cream up to 1,00,000 Corers per month. (Currently its sales is 20
lac per month).
To be responsible for consumers source and be competitive in market.
To streamline the marketing operation.
Responsibilities Marketing and Sales Asst. Manager:
Making advertisement of the product.
Looking to the marketing changes.
Looking to the needs & wants of the customers.
Expand the market.
Sending the report about the market environment to the top management.
Day to day supply the Ice cream product to the market or agent
Sending the report of the sales to the tope management.

21
The company is not directly involved in marketing to final consumers but the product is
sent to the depots. These distributors / depots are involved in marketing or selling the
product
.
Achievements:
T Q M certificate of leadership for Hubli Depot for best depot customer satisfaction.
During 1999-2000.
T Q M certificate of leadership in housekeeping Hubli Depot For all India best in wet Go
down housekeeping. During 2004-2005.
Certificate of leadership in Rs / Liter Ice cream sales performance Hubli Depot for all
India 3rd best during 2005-2006.
22
Company Overview :
Type: -
Cooperative
Founded: -
In the year 1946
Headquarter: - Anand, Gujarat state, India

Key people: -
Chairman, Gujarat Co-operative Milk

Marketing Federation Limited (GCMMF).
Industry: -
Dairy
Products: -
Amul Butter, Amul Milk Powder, Amul Ghee,

Amulspray, Amul Cheese, Amul Chocolates,
Amul Shrikhand, Amul Ice cream, Nutramul,
Amul Milk and Amulya.
Revenue: -
Rs 67113. 1504 million US $ (2008-09).
Employees: -
2.41 million milk producers
Website: -
www.amul.com
23
AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative
organization's success in the long term. It is one of the best examples of co-operative achievement
in the developing world. "Anyone who has seen ... the dairy cooperatives in the state of Gujarat,
especially the highly successful one known as AMUL, will naturally wonder what combination of
influences and incentives is needed to multiply such a model a thousand times over in developing
regions everywhere." The Amul Pattern has established itself as a uniquely appropriate model for
rural development. Amul has spurred the White Revolution of India, which has made India the
largest producer of milk and milk products in the world. It is also the world's biggest vegetarian
cheese brand.
Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an
annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer
members with milk collection average of 10.16 million litres per day. 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 had not
succeeded, but now it has fresh plans of flooding the Japanese markets. Other potential markets
being considered include Sri Lanka.
Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man behind the
success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was elected
chairman of GCMMF.
HISTORY
Amul was formally registered on December 14, 1946. The brand name Amul, sourced
from the Sanskrit word Amulya, means priceless. It was suggested by a quality control expert in
Anand and it was chosen because it was a perfect acronym for Anand Milk Union Limited.
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in
India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk
producers in Gujarat, India.
24
The Amul revolution was started as awareness among the farmers. It grew and matured into
a protest movement that was channeled towards economic prosperity.
Why cooperative came in to existence?
Over five decades ago, the life of an average farmer in Kheda District was very much like
that of his/her counterpart anywhere else in India. His/her income was derived almost entirely
from seasonal crops. The income from milk buffaloes was undependable. Milk producers had to
travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand often milk
went sour, especially in the summer season, as producers had to physically carry milk in
individual containers. Private traders and middlemen controlled the marketing and distribution
system for the milk. These middlemen decided the prices and the off-take from the farmers by
the season. As milk is perishable, farmers were compelled to sell it for whatever they were
offered. Often, they had to sell cream and ghee at throw-away prices. In this situation, the private
trader made a killing. Moreover, the government at that time had given monopoly rights to
Polson Dairy (around that time Polson was the most well-known butter brand in the country) to
collect milk from Anand and supply to Mumbai city in turn (about 400 kilometers away).
Another problem farmers faced was that in winter the milk output of buffaloes doubled which
caused prices to fall down even further. India ranked nowhere amongst milk producing countries
in the world in 1946. Gradually, the realization dawned on the farmers with inspiration from then
nationalist leaders Sardar Vallabhbhai Patel (who later became the first Home Minister of free
India) and Morarji Desai (who later become the Prime Minister of India) and local farmer,
freedom fighter and social worker Tribhovandas Patel, that the exploitation by the trader could
be checked only if they marketed their milk themselves. Amul was the result of the realization
that they could pool up their milk and work as a cooperative.
25
The First step: Formation of Kaira union
Realizing that something needed to be done about the unequal balance of wealth, they
turned to Sardar Vallabhbhai Patel for advice. Sardar Patel knew that their only chance of
earning a decent income was when they themselves gained control over the resources they
created. He also knew that the cooperatives offered them the best chance of gaining that control.
So he advised them to stop selling milk to Polson and form a cooperative of their own. In his
opinion they were to own their own dairy unit. He said, "Throw out Polson and his milk
contractors". They followed his advice and the Kaira District Cooperative Milk Producers' Union
(AMUL) was born, in 1946. By good fortune, they could get as Chairman - Shri Tribhuvandas
Patel, an equally remarkable man. He understood the concept of cooperation and he understood
people. His integrity was absolute. Because the farmers of Kaira district trusted and respected
Tribhuvandas Patel, the cooperative was able to pass through some verydifficult times and
eventually become a model of cooperative dairying throughout the world.
The Kaira Union began with a clear goal, to ensure that its producer members received
the highest possible share of the consumers' rupee. This goal itself defined their direction. The
focus was on production by the masses, not mass production. By the early 'sixties, the modest
experiment in Kaira had not only become a success, people began to recognize it as such.
Farmers came from all parts of Gujarat to learn. They went back to their own districts and started
their own cooperatives. The result - Together, the district milk producers unions of Gujarat own
the Gujarat Cooperative Milk Marketing Federation which markets the milk and milk products
26
manufactured by its owners. Last year the Federation's turnover was over Rs. 1700 crore making
it the largest in the food industry.
In 1964, the then Prime Minister Shri Lal Bahadur Shastri came to inaugurate a cattle
feed factory owned by Amul near Anand. Impressed by the cooperative's success, he expressed
his wish to "transplant the spirit of Anand in many other places". He wanted the Anand model of
dairy development replicated in other parts of the country. With institutions owned by rural
producers which were sensitive to their needs and responsive to their demands, it was an ideal
tool for progress. The National Dairy Development Board was created in 1965 in response to this
call.
Setting Up of Gujarat Cooperative Milk Marketing Federation (GCMMF):
In 1954, Kaira District Co-operative Milk Producers Union built a plant to convert
surplus milk produced in the cold seasons into milk powder and butter3. In 1958, a plant to
manufacture cheese and one to produce baby food were added. Subsequent years saw the
addition of more plants to produce different products. In 1973, the milk societies/district level
unions decided to set up a marketing agency to market their products. This agency was the
Gujarat Cooperative Milk Marketing Federation (GCMMF). It was registered as a co-operative
society on 9 July 1973.
27
The next achievement: Operation Flood

In the late sixties, the Board drew up a project called Operation Flood (OF) - meant
to create a flood of milk in India's villages with funds mobilized from foreign donations.
Producers' cooperatives, which sought to link dairy development with milk marketing, were the
central plank of this project. Operation Flood which started in 1970 concluded its third phase in
1996 and has to its credit these significant results:
The enormous urban market stimulus has led to sustained production increases, raising
per capita availability of milk to nearly 200 grams per day.
The dependence on commercial imports of milk solids are done away with.
Modernization and expansion of the dairy industry and its infrastructure, activating a
milk grid.
Marketing expanded to supply hygienic and fair priced milk to some 300 million
consumers in 550 cities and towns.
A nationwide network of multi-tier producers' cooperatives, democratic in structure and

professionally managed, has come into existence. Millions of small producers participate
in an economic enterprise and improve the quality of their life and environment.
Dairy equipment manufacturer has expanded to meet most of the industry's needs.
Effect on Rural Development

A number of field studies conducted by independent researchers emphatically confirm the
role played by milk cooperatives the progress of the dairy industry. Millions of small farmers
isolated in various parts of the country have gained the strength to sustain their livelihood. The
cooperatives have provided gainful employment and brought them close to the market. When
cooperative dairying started in Gujarat, the dairy industry was in the doldrums. Production had
stagnated and per capita consumption was falling. Farmers were at the mercy of the middlemen.
Today, with about 100 lakh farmer producers, Indian dairy farmers have been shown the way to
prosperity and health. The ideal conditions for long term growth in procurement have been
created.
28
Modern technologies in animal breeding and feeding have been adopted by a significant
number of farmers.
Modern consumer processing and marketing facilities have been created all over the
country.
Technical input services including animal insemination, balanced cattle feed / bypass
proteins feed, better fodder varieties and emergency veterinary health services - have not
only helped in raising and sustaining milk production but have also ensured a better
quality of life in the villages.
Besides creating urban employment in dairy plants, marketing, transport and distribution,
these dairy cooperatives have helped to provide farmers with a sustainable rural employment
program. A majority of the cooperative members are landless, marginal or small farmers who
contribute their produce of milk at the cooperatives. For these contributors, the income derived
from milk provides their only regular cash flow, transforming dairying into an economic activity.
The village cooperative is a clean well lit and orderly place. The villages have gone
through a similar transformation ever since the cooperatives began to operate. When the people
of a village see cleanliness, sanitation, hard work and discipline in the cooperative. When they
know that the cooperative serves them well. It probably inspires them to bring more of these
qualities into their own lives.
They are shown the mysteries of artificial insemination under a microscope. Does not
their knowledge of conception in animals help them to better understand their own lives and to
begin to control what was simply assumed as a matter of fate?
When out villages people see a veterinarian cure an animal that would have otherwise
died, they learn about the efficacy of the modern medicine. When they see their income from
milk increase as their animals improve, and the farmer produces better feeds as they ensure better
housing and care, they learn hope. And they learn that it is not fate that determines their future,
but they can take control of their own destinies. In a nation like ours, democracy whether it be in
Delhi or in State capitals rests on a fragile foundation. We must underpin that democracy with a
plurality of rural institutions that involves direct control of individuals over matters that have
immediate effect on their own lives. They dairy cooperatives of India are such institutions.
29
Dairy cooperatives are giving a fresh lease of life to farmers in drought-prone areas. Milk
production and exploitative marketing through the cooperatives is providing an assured source of
income to farmers helping them sustain themselves against recurring drought. The migrating
population is settling down. About Rs 2,000 crores is being paid to the farmers in their villages
daily -- morning and evening -- which constitutes a large portion of their income. Operation
Flood has, therefore, emerged in India as the largest rural employment scheme. It has been able
to modernize the dairy sector to a level from where it can take off to meet not only the country's
demand for milk and milk products in the next century but can also exploit global market
opportunities. Thereby capitalizing on the inherent production advantages that India has,
provided that the right policy options are exercised to overcome some already visible signs of
market disorder in the post-liberalization period. Among them are:
Over-capitalization in the private dairy sector
Ineffective enforcement of standards of processing, hygiene and quality
A near absence of any monitoring mechanism to enforce market discipline.

These threats need to be countered to protect the long-term interests of milk producers,
their organizations, as well as of the consumer.
When producers have such structures at their command, they have the means to ensure
that the fruits of science and technology reach all those who benefit. It is only when such
structures exist those farmers developing confidence in getting an assured remunerative price for
their produce. This, in turn stimulates investment in productivity. Further, farmers also demand
the delivery of services and inputs they need to realize returns on their investments. Such
structures can perhaps educate farmers to the fragile nature of the environment and the need to
conserve it.
One big lesson learnt is that farmers must be respected and trusted. They may not be educated, or
even literate, but they possess common sense and even wisdom. Frequently, they have shown the
ability to rise above narrow self-interest to act together in pursuit of long-term goals and the
common good.
30
Cooperatives and Economic Development

Before the cooperative movement began, the dairy industry in the Kaira District was
being exploited by middlemen who supplied milk to the consumer. It began as a response to this
exploitation and put a end to it. It grew because it responded to the farmers financially as well as
with services. It has thrived because it is owned by farmers who have a stake in its success. And
because it has been managed by capable professionals and strengthened by dedicated scientists,
technologists and workers, it has forged ahead. Today in India, there are 75,000 dairy
cooperative societies, spread all over the country with a membership of 10 million. The farmer in
the village is now assured of a better future thanks to these cooperatives. Recently one of the
European Embassies in Delhi requested us for information on the five biggest "companies" in the
dairy business. The first three are in the cooperative sector - The Gujarat Cooperative Milk
Marketing Federation (GCMMF). The Kaira District Cooperative Milk Producers' Union
Limited and The Mehsana District Cooperative Milk Producers' Union. The Kaira District
Cooperative is the second best in the country. It helped to create GCMMF, the apex body of all
cooperatives in Gujarat.
31
GCMMF Today:
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. GCMMF markets and manages the Amul brand. From mid-1990's Amul has entered
areas not related directly to its core business. Its entry into ice cream was regarded as successful
due to the large market share it was able to capture within a short period of time - primarily due
to the price differential and the brand name. It also entered the Pizza business, where the base
and the recipes were made available to restaurant owners who could price it as low as 30 rupees
per pizza when the other players were charging upwards of 100 rupees.
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 liters per day
Milk collection (Total - 2006-07):
2.38 billion litters
Milk collection (Daily Average 2006- 6.5 million litters

07):
Milk Drying Capacity:
594 Mts. per day
Cattle feed manufacturing Capacity:
2640 Mts per day
32
Organization Structure Chart

Chairman
Managing Director
General Manager
Ass. General Manager
Finance
Dept.
Senior
Manager
Production
Dept.
Senior
Manager
Marketing
Dept.
Sales&Purchase
Dept.
Personnel
Dept.
Senior
Senior
Senior
Manager
Manager
Manager
Finance
Production
Marketing
Sales
Personnel
Manager
Manager
Manager
Manager
Manager
Accountant
Officer
Marketing
Officer
P.R.F.
Executive
Officers
Supervisor
F.S.R.
Salesmen
Executive
33
A systematic & well-defined organizational structure plays a vital role & provides
accurate information to the top-level management. An organisation structure defines a clear-cut
line of authorities & responsibilities among the employees of GCMMF. The Organisation
structure of Amul is well-arranged structure. At a glance a person can completely come to know
about the organization structure.
Amul is leaded by the director under him five branches viz. Factory, Marketing,
Accounts, Purchase, Human Resources Department.
Factory department has a separate general manager under him there are six braches viz.
Production, Stores, Distribution, Cold Storage, Quality, and Deep-freezing. This department
takes care of the factory work.
Marketing department has regional senior marketing manager and under him there is a
regional manager. This department takes care of the marketing aspects of Amul.
Accounts department takes care regarding accounts i.e. day-to-day work. Under the
accountant there is one clerk.
Purchase department takes care regarding the purchase of raw materials and many other
things.
It all started in December 1946 with a group of farmers keen to free themselves from
intermediaries, gain access to markets and thereby ensure maximum returns for their efforts.
Based in the village of Anand, the Kaira District Milk Cooperative Union (better known
as Amul) expanded exponentially. It joined hands with other milk cooperatives, and the Gujarat
network now covers 2.12 million farmers, 10,411 village level milk collection centers and
fourteen district level plants (unions) under the overall supervision of GCMMF.
34
There are similar federations in other states. Right from the beginning, there was recognition
that this initiative would directly benefit and transform small farmers and contribute to the
development of society.Markets, then and even today, is primitive and poor in infrastructure.
Amul and GCMMF acknowledged that development and growth could not be left to market
forces and that proactive intervention was required. Two key requirements were identified.
The first, that sustained growth for the long term would depend on matching supply and
demand. It would need heavy investment in the simultaneous development of suppliers
and consumers.
Second, that effective management of the network and commercial viability would
require professional managers and technocrats.
To implement their vision while retaining their focus on farmers, a hierarchical network
of cooperatives was developed, which today forms the robust supply chain behind GCMMFs
endeavors The vast and complex supply chain stretches from small suppliers to large fragmented
markets.
Management of this network is made more complex by the fact that GCMMF is directly
responsible only for a small part of the chain, with a number of third party players (distributors,
retailers and logistics support providers) playing large roles.
Managing this supply chain efficiently is critical as GCMMF's competitive position is
driven by low consumer prices supported by a low cost system.
35
SALES TURN OVER

Sales Turnover
Rs (million)
US $ (in million)
1994-95
11140
355
1995-96
13790
400
1996-97
15540
450
1997-98
18840
455
1998-99
22192
493
1999-00
22185
493
2000-01
22588
500
2001-02
23365
500
2002-03
27457
575
2003-04
28941
616
2004-05
29225
672
2005-06
37736
850
2006-07
42778
1050
2007-08
52554
1325
2008-09
67113
1504
36
AMULS VALUES
Customer orientation
Commitment to producers
Integrity
Cooperation
Excellence
Leadership
Quality
Innovation
Growth orientation new products
Belongingness
Pride in organization
Employee satisfaction
AMULS STRATEGIC THRUST AREAS
Build capability of marketing fresh products
Expand marketing of existing products
Identify and market new products
Rationalizing taxes
Integration through IT
Attract and retain quality manpower
Integration of cooperatives with common branding.
AMULS MISSION
We at GCMMF endeavor to satisfy the taste and nutritional requirements of the

customers of the world, through excellence in marketing by our committed team.
Through cooperative networking, we are committed to offering quality products

that provide best value for money.
37
SWOT Analysis of AMUL
The Strengths of AMUL

Optimistic Outlook
As the saying goes An optimistic finds an opportunity in every calamity and a
pessimistic finds a calamity in every opportunity.
Each failure, each obstacle, each
stumbling block can be turned into a success story. AMUL always had a positive approach. In
the early years, AMUL had to face a number of problems. With every problem came
opportunity, a chance to turn a negative into a positive. Milk byproducts and supplementary yield
which suffered from the same lack of marketing and distribution facilities became
encumbrances. Instead of being bogged down by their fate they were used as stepping stones for
expansion. Backward integration of the process led the cooperatives to advances in animal
husbandry and veterinary practice.
38
Wide range of products:

They carry out periodic study of their consumers need and lifestyles and accordingly
they develop the products. Also they concentrate on the products quality and focus is also there
on processing. Check out this vast and ever-growing range of 'tasteful' AMUL delectables.
Affordable Price:
The low priced products are the USP of AMUL. It provides quality products which are
good value for money. It hits at the foreign market by reducing its price. The competitive
advantage is its backward integration strategy, which has helped to reduce cost to a great
extent. The prices are even affordable to the Common Man of India.
Effective Ad campaign:
AMUL spends very less on advertisements. But it enjoys the respect of trust worthy
brands. Its competitors spends about 7- 10% on ads but AMUL spends only 1% on ads. AMUL
has been marketed very well. All because a round eyed, chubby cheeked, winking at you dressed
in her little polka dotted dress and a red and white bow, holding out her favorite packet of butter,
a thumb-sized girl climbed on to the hoardings and put a spell on the masses. The series of
advertisements especially hoardings (with the AMUL girl) has helped AMUL in their effort to
promote the product and in turn increase in sales. For 30 odd years the Utterly Bitterly girl has
managed to keep her fan following intact. So much so that the ads are now ready to enter the
Guinness Book of World Records for being the longest running campaign ever. The ultimate
compliment to the butter girl came when a British company launched butter and called it Utterly
Bitterly.
Large Sales Turnover:

The population of India is second largest in the world. And milk is that commodity which
is always used in the homes of all the Indians. To add to this there is tremendous flexibility in the
product mix as many product lines can be added with one commodity, as the base is milk.
Hence, there is a large demand for milk and milk products. AMUL has also started exporting its
wide range of products in the overseas market. All this will lead to increase in sales turnover and
profits. The future of AMUL is absolutely optimistic which will lead to good profit margins.
39
Good Distribution Channel:

AMUL has the largest cold chain network in India (i.e. 18000 refrigerators) as compared
to any other company. The chemical components of milk are water, SNF and solids. Milk is very
perishable product so it has to be consumed within 24 hours. In order to avoid wastage AMUL
converts the milk in to SNF and milk solids by evaporating the water, which comprises up to 6070% of milk contents. This is possible only if the distribution channel right from the producer to
the consumer is well organized. It will be surprising to know that AMUL makes even the
Sarpanch to eat pizza i.e. it supplies pizzas even to rural market.
The Weaknesses of AMUL:

Focus on all Products
AMUL has been able to capture the butter market. But when it comes to chocolates,
cheese, paneer, ice-creams, pizzas and such other products companies like Cadbury, Nestle,
Britannia, HLL are bigger players as compared to AMUL. It has not been successful to that
extent when compared with them. So AMUL needs to concentrate on these products to expand
its business and gain a bigger share of the pie.
Inadequate Transport Fascilities :

The road transport and infrastructure in India is not of international standards. Milk is a
perishable product so it has to be transported as quickly as possible. Although AMUL has the
highest number of refrigerators i.e. 18000 but still they are not adequate enough for such a vast
country like India.
IT Integration:
IT Integration With the development and increasing use of computers in each and every
field, it will be quite difficult for GCMMF Enterprise has to sustain the challenges as a "Change
Agent" by excelling their IT skills in order to transform the people around them towards IT
Integration (e-Vision) on both the ends of supply chain (Village level producer to end consumer)
because most of its members are residing in rural areas. But even this problem is given a great
fight by AMULS wholesale distributors, retailers, transporters and suppliers who have
supported whole-heartedly the IT initiatives of GCMMF.
40
The Opportunities of AMUL

Expand to become the Market Leader in food business
The aim of AMUL is to be the leader in food business. It has total assets of Rs.2258
crores. They are planning to venture into restaurants; ready to eat curries etc. it is also planning
to launch ready to drink coffee and tea. The plan of AMUL is to be known as Indias best food
brand and also to acquire a sizeable market place in 30 countries where AMUL is exporting its
product. Its target in numbers is to cross the milestone of 10000 crores turnover by 2006.
Entered in Retailing :
AMUL has recently entered into direct retailing through "AMUL Utterly Delicious"
parlors created in major cities Ahmadabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and
Surat. AMUL has plans to create a large chain of such outlets to be managed by franchisees
throughout the country. "AMUL Utterly Delicious" parlors are an excellent business opportunity
for investors, shopkeepers and organizations. In order to come closer to the customer, they have
decided to create a model for retail outlets, which would be known as "AMUL Preferred
Outlets"(APO). They have created AMUL Parlors at some prominent locations in the country,
which are run by the company or its wholesale dealers:
1. Delhi Metro Rail Corporation
2. Indian Space Research Organization
3. The Somnath Temple
4. National Institute of Design
5. Infosys Technologies in Bangalore, Mysore & Pune
6. Wipro campus in Bangalore
7. Ahmadabad Municipal Corporation
8. Surat Municipal Corporation
9. Delhi Police.
41
Threats to AMUL:
Low Milk Productivity
India today is the largest milk producer in the world, milk production still falls far short
of national requirements for adequate nutrition. As against the present production of about 74
million tons, national requirement will be as high as 173 million tons by 2020. Milk productivity
per animal in India (1,250/lactation) is still very poor compared to international levels (2,038
kg/lactation) due to gradual breed deterioration. Thus, while we have every reason to feel
gratified with the success achieved so far, there is no room for complacence.
Adulteration:
The Indian dairy industry today suffers a big threat from adulteration. According to a
report in Hindustan Times dated 22nd September 2005 it is said that you are at risk buying fake
for practically everything from food products to auto parts. Indias fake goods industry is
estimated at Rs.10000 crore and an A C Nielson survey estimate 4 in every 10 FMCG products
in the market are fakes. This leads many companies including AMUL loose their loyal
customers. The original milk is removed from the pack and artificial, powdered, harmful milk or
rather poison is supplied to the consumers.
42
4Ps Of AMUL
PRODUCT
AMUL has different range of dairy products, company produces the products as per the
customer demand and needs. Company adopted itself to the changing market needs and demand
very well. Company has satisfied every segments of the market from child to old generation from
its products. We can see the products which are produced as per the changing demand from
market.
PRICE: Amul Pricing Strategies

At the time Amul was formed, consumers had limited purchasing power, and modest
consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price
strategy to make its products affordable and attractive to consumers by guaranteeing them value
for money.
Despite competition in the high value dairy product segments from firms such as Hindustan
Lever, Nestle and Britannia, GCMMF ensures that the product mix and the sequence in which
Amul introduces its products is consistent with the core philosophy of providing butter at a basic,
affordable price to appeal the common masses. This helped AMUL BUTTER to create its brand
image in the household sector of the society.
PLACE: A Global Distributor

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading
House" status. GCMMF has received the APEDA Award from Government of India for
Excellence in Dairy Product Exports for the last 9 years.
Currently Amul has 2.41 million producer members with milk collection average of 5.08 million
litres/day. 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 had not succeeded, but now it has fresh plans of flooding the
Japanese markets. Other potential markets being considered include Sri Lanka.
43
PROMOTION: Initial Promotional Strategy

A brand - Amul A Taste of India
However, in 1966, a man named Sylvester Da Cunha, from the ad agency of ASP, took
over the Amul account. And in 1967 it began, innocently enough. In India, food was something
one couldn't afford to fool around with. It had been taken too seriously, for too long. Sylvester
Da Cunha decided it was time for a change of image. Scott Bradbury, the marketing genius
behind Nike and Starbucks, once said A great brand is a story that is never completely told. A
brand is a metaphorical story thats evolving all the time. Stories create the emotional context
people need to locate themselves in the larger experience He could easily have been talking
about the Amul moppet.
The moppet who put Amul on India's breakfast table The year Sylvester Da Cunha took
over the account, the country saw the birth of a campaign whose charm has endured fickle public
opinion, gimmickry and all else. The Amul moppet, the little girl who created a home in the
hearts and minds of millions and millions of Indians. No easy task. And to be there for almost 34
years.
Call her the Friday to Friday star because Every Friday, since 1967, this little girl appears
at billboards, strategically placed all over India, focusing on the item of the week tongue in
cheek, of course. Round eyed, chubby cheeked, winking at you, from strategically placed
hoardings at many traffic lights. She is the Amul moppet everyone loves to love (including
prickly votaries of the Shiv Sena and BJP). How often have we stopped, looked, chuckled at the
Amul hoarding and product wrappers with the equally recognizable tagline Utterly Bitterly
Delicious Amul that casts her sometime as the coy, shy Madhuri, a bold sensuous Urmila or
simply as herself, dressed in her little polka dotted dress and a red and white bow, holding out
her favorite packet of butter.
There are no boundaries and nothing is off limits. From the political scene, to
entertainment, from local news to international, from sports to stars, she has a line for
everything. Often said to be playing the role of a social observer with evocative humor, the
billboards became, and still are, a topic of conversation amongst millions. With their hing-lish
(a combination of Hindi and English) punch-lines, they have won the maximum number of
awards in India for any ad campaign ever! This little thumbalina, seems to have the masses, right
44
where she wants them wanting more of her and of Amul. No other brand comes close to what
Amul has been able to accomplish.
ADVERTISING:
Its advertising has also started using tongue-in-cheek sketches starring the Amul baby
commenting jovially on the latest news or current events. This formed a large chunk of the
collective memory of us Indians. We grew with them as the ads grew with us. They are quirky,
poke fun at no one in particular and are pure eye-candy! We almost admire the speed with which
the ad-people come up with copy and illustration for the ads, that change every few days.
From the Sixties to the Nineties, the Amul ads have come a long way. While most people
agree that the Amul ads were at their peak in the Eighties they still maintain that the Amul ads
continue to tease a laughter out of them
The Amul ads are one of the longest running ads based on a theme, now vying for the Guinness
records for being the longest running ad campaign ever.
Plants
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk
powder, flavored milk and buttermilk.
45
Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul

Ganthia and Amul lite.
46
Fourth plant is at Khatraj, which engaged in producing cheese.

Today, twelve dairies are producing different products under the brand name Amul. Today Amul
dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and
whole India.
47
LIST OF PRODUCTS:
Bread Spreads
Amul Butter
Amul Lite
Delicious Table Margarine
Beverage Range
Amul Kool
Nutramul Energy Drink
Amul Kool Caf
Amul Kool Chocolate Milk
Kool Koko
Amul Kool Flavoured
Bottled Milk
Amul Kool Flavoured
Amul Masti Spiced Buttermilk

48
Powder Milk
Amul Spray Infant

Milk Food
Sagar Tea Coffee Whitener
Amul Instant Full

Cream Milk Powder
Sagar Skimmed
Milk Powder
Amulya Dairy Whitener
Fresh Milk
Amul Fresh Milk
Amul Gold Milk
Amul Taaza Double Toned
Amul Fresh Cream
Amul Shakti Toned Milk
Milk
Amul Lite Slim
49
Cheese
Amul Pasteurised
Amul Cheese Spreads
Amul Emmental Cheese
Processed Cheese
Amul Pizza
Gouda Cheese
Mozzarella Cheese for Cooking
Amul / Sagar Pure Ghee
UtterlyDelicious Pizza
Cooking Butter
Mithai Mate
Amul Malai Paneer
Masti Dahi
50
Desserts
Amul Ice Creams
Amul Shrikhand
Amul Mithaee Gulab
51
ANALYSIS
52
1. among the following Amul products which of them are aware to you?
Dairy Products
DAIRY PRODUCTS
AWARE
NOT AWARE
Amul milk
Amulya
Nutramul
Amul ghee
Amul butter
98.3
98.3
30
73.3
95
1.7
1.7
70
26.7
5
Amul Mithai Mate
51.7
48.3
Amul Gulab Jamun

Amul cheese
93.3
98.3
6.7
1.7
Amul gouda cheese

AVERAGE
36.7
74.98889
63.3
25.0111111
80
70
60
50
40
74.98
30
20
25.01
10
0
AWARE
NOT AWARE
Interpretation: Among 60 Retailers 74.98% are aware and 25.01 % are

not aware about Dairy products.
Inference: Many of the retailers are aware about the Dairy products
because of effective advertisements.
53
Ice Cream Products

ICECREAM NAME
Malai kulfi
Tricone
Chaupati kulfi
Amul sundae
Trostick
Amul exotica
Fundoo
Duetz
Average
AWARE
73.3
93.3
56.7
76.7
91.7
80
96.7
83.3
81.4625
NOT AWARE
26.7
6.7
43.3
23.3
8.3
20
3.3
16.7
18.5375
90
80
70
60
50
40
81.4625
30
20
10
18.5375
0
AWARE
NOT AWARE
Interpretation: Among 60 Retailers 81.46% are aware and 18.53 % are not aware about Ice
Cream products.
Inference: Many of the retailers are aware about the Ice Cream products because of its taste and
quality.
54
2. Of the above list of Amul dairy products and ice cream which among them are being sold
at your retail store?
Dairy Products
Dairy Products
BEING SOLD
Amul milk
Amulya
Nutramul
Amul ghee
Amul butter
Amul mithai mate
Amul Gulab Jamun
Amul cheese
Amul gouda cheese
Average
35
86.7
6.7
56.7
91.7
16.7
50
91.7
25
51.1333333
BEING SOLD
100
90
80
70
60
50
40
30
20
10
0
91.7
86.7
91.7
56.7
6.7
51.13333333
50
35
16.7
25
Interpretation: Among 60 Retailers 51.13% are selling the Amul Dairy products in
their outlets.
Inference: only 51.13% of Dairy Products are being sold, this is because of nonavailability and improper product delivery.
55
Ice Cream Products
ICECREAM NAME
Being sold
Malai kulfi
Tricone
38.3
40
Chaupati kulfi
36.7
Amul sundae
Trostick
21.7
81.7
Amul exotica
Fundoo
Duetz
Average
40
85
85
53.55
Being sold
100
80
60
20
85
81.7
40
38.3
40
36.7
21.7
85
40
Interpretation: Among 60 Retailers 53.55% are selling the Amul Ice Cream products in their
outlets.
Inference: only 53.55% of Ice Cream Products are being sold, this is because of non-availability
and improper product delivery, but because of its unique taste sales has been crossed 50%.
56
3. How frequently you place the order?
Frequency Percent
Valid Once in a week
Valid
Percent
Cumulative
Percent
21
35.0
35.0
35.0
Fortnightly
35
58.3
58.3
93.3
Whenever
Required
6.7
6.7
100.0
60
100.0
100.0
Total
Interpretation: Among 60 Retailers 35% retailers place the order once in a week, 58.33% once
in fortnightly, 6.67% are whenever required.
Inference: 58.33% retailers place the order once in fortnightly this shows that movement of ice
cream products in the market is average so company needs to look upon this aspect.
57
4. In how many days you get the delivery of products from day of order?
Frequency
Valid
Percent
Valid Percent
Cumulative
Percent
0-3 Days
21
35.0
35.0
35.0
5-7 Days
28
46.7
46.7
81.7
3-5 Days
11
18.3
18.3
100.0
Total
60
100.0
100.0
Interpretation: Among 60 Retailers 35% retailers gets the order in 0-3 days, 18.33% are gets in
3-5 days, 46.67%of retailers gets in 5-7 days.
Inference: Here 46.67% of retailers gets delivery of products within 5-7 days, this is not a good
sign as far as delivery of the product is concerned so company needs to reduce their time taken to
deliver the products.
58
5. Which factors influence you to sell the Amul Products?
Frequency
Valid
Brand Image
Percent
Valid Percent
Cumulative
Percent
14
23.3
23.3
23.3
Low price
3.3
3.3
26.7
Service
3.3
3.3
30.0
Demand
27
45.0
45.0
75.0
Quality
15
25.0
25.0
100.0
Total
60
100.0
100.0
Interpretation: Among 60 Retailers 23.33 % retailers are influenced by brand image, 3.33% by
low price, 3.33% by service, 45% by Deemand, 25% by Quality.
Inference: Most of the retailers are influenced by demand, brand image and quality and only few
retailers influenced by low price and service. So if company would give more emphasis on low
pricing strategy and level of services then they would have achieved good sales.
59
Amul product delivery is good as compared to others
Frequency
Valid
Strongly Agree
Percent
Valid Percent
Cumulative
Percent
13.3
13.3
13.3
Agree
13
21.7
21.7
35.0
Disagree
29
48.3
48.3
83.3
Strongly Disagree
10
16.7
16.7
100.0
Total
60
100.0
100.0
Interpretation: Among 60 Retailers 13.33% retailers are strongly agree 21.67% are agree, 48.33
are disagree and 16.67% are strongly disagree.
Inference: Most of the retailers are dissatisfied with the delivery of Amul products so company
needs to look upon this issue because it may give chance of shifting of Amul products to another
product.
60
Overall service of Amul in terms of product quality, product delivery, and offers is good
Frequency
Valid
Strongly Agree
Agree
Disagree
Strongly Disagree
Total
Percent
Valid Percent
Cumulative
Percent
16
26.7
26.7
26.7
15.0
15.0
41.7
30
50.0
50.0
91.7
8.3
8.3
100.0
60
100.0
100.0
Interpretation: Among 60 Retailers 26.67% retailers are strongly agree 15% are agree, 50% are
disagree and 8.33% are strongly disagree.
Inference: 58% of the retailers are this satisfied Overall service of Amul. This is a serious issue
so company needs to think upon implementing new trade schemes to the retailers along with the
improving the quality and delivery of the Amul products.
61
In your opinion sales promotion techniques has been used by Amul is successful
Frequency
Valid
Percent
Valid Percent
Cumulative
Percent
Strongly Agree
13
21.7
21.7
21.7
Agree
10
16.7
16.7
38.3
Disagree
27
45.0
45.0
83.3
Strongly Disagree
10
16.7
16.7
100.0
Total
60
100.0
100.0
Interpretation: Among 60 Retailers 26.67% retailers are strongly agree 16.67% are agree, 45%
are disagree and 16.67% are strongly disagree.
Inference: Most of the retailers are dis satisfied with the sales promotion technique of Amul so
company needs to look upon redefining the sales promotion techniques like credit facility cash
discounts etc.
62
FINDINGS
1. Out of 60 Sample size surveyed.23.33 % are influenced by Brand Image,3.33%
are by low price ,3.33% are by Service,45 % are by Demand ,25.33 are by
Quality.
2. It has been found that among 60 retailers 74.98% and 81% are aware about the all
Amul Dairy Products and Amul Ice Cream.
3. It was revealed that around 51.13% and 53.55% of Amul Dairy products and Ice
Creams are being sold by the retailers.
4. It was found that 55% retailers are place the order once in a week, 58.33% once in
a fortnight, 6.67% whenever required.
5. 35% Retailers gets the delivery within 0-3 days.46.67% by within 5-7 days, 18.33
% gets within 3-5 days.
6. 41.7% of retailers are said that overall Service quality provided by c and f agent
of Amul is excellent.
7. 7.35% of retailers are said that Amul product delivery is good.
Recommendations:
1. The customers who purchase Nutramul, Amul sundae, Amul mithai mate
products are very low in percentage . So the Company should improve the taste and bring
down the Price factor of these products.
2. Many retailers are disappointed with the Availability of the products and as most of the
customers buy the products through the Retailers and Demand for the Amul Ice cream
and Dairy products is high ,So the company need to improve the distribution channel in
order to be competitive.
3. Some Customers are purchasing other Brands like Nandini, Warna and Spoorthi because
of Availability, low price and Quick delivery of products by distributors. So the company
need to look into the above factors which are essential for the survival in the market and
be competitive in market.
63
4. For every company its important that they have to maintain good relation with the all
players in market. So company should maintain direct contact with their loyal Retailers
and customers regularly in order to aware of new products and improving the taste
constantly.
Limitations of the study

1. There were some retailers who did not want to participate.
2. The study pertains to only some retailers of Hubli & Dharwad market hence, the findings
may not represent the city as a whole.
3. The retailer study was more subjective in nature as most of the retailers gave response on
the preconceived opinion about the company.
4. The time constraint was a limiting factor as more in- depth analysis of subject as well as
response could not be carried out.
5. The personal bias of respondents may be a limiting factor.
Conclusion:
This study helped me gain valuable insights towards the and Retailer association with a brand
and the product .This Project has been a Knowledge gaining experience for me .By interacting
with the respondents, I have been able to understand the preferences given while buying the
products and it takes a very strong brand image for a company to retain itself in the market.
The results of the survey proved to be both encouraging and partly discouraging too because the
respondents are not positive about Amul products which is main problem like Distribution,
Availability, Price and Margin of the products. Due to the stiff competition facing from the
Nandini, Aditya , the Amul needs to be monitor and revamp the strategies whenever required.
So by these points I conclude the project.
64
QUESTIONNAIRE
Retailers Details
A.
Name of Retail Store.
B.
Address..............
1. What is your monthly sale of Amul products in Rs ..
a) <5,000
b) 5,000-15,000
c) 15,000 30,000
d) > 30,000
2. Type of outlet
a) Super Market
c) A class outlet
b) Hyper Market
d) Discount stores
e) Others
3. Among the following Amul products which of them are aware to you?
1. Dairy Products
a) Amul Milk
f) Amul Basundi
b) Amulya
g) Amul Gulab Jamun
c) Nutramul
h) Amul Cheese
d) Amul Ghee
i) Amul Gouda cheese
e) Amul Butter
j) Amul Mithai Mate
2. Ice Cream Products

a) Frostick
e) Malai Kulfi
b) Amul Exotica
f) Tricone
c) Fundoo
g) Amul Sundae
d) Duetz
h) Chaupati Kulfi
65
4. Of the above list of Amul dairy products and ice cream which among them are being sold
at your retail store?
1. Dairy Products
a) Amul Milk
f) Amul Basundi
b) Amulya
g) Amul Gulab Jamun
c) Nutramul
h) Amul Cheese
d) Amul Ghee
i) Amul Gouda cheese
e) Amul Butter
j) Amul Mithai Mate
2. Ice Cream Products

a) Frostick
e) Malai Kulfi
b) Amul Exotica
f) Tricone
c) Fundoo
g) Amul Sundae
d) Duetz
h) Chaupati Kulfi
5. How frequently you place the order?

a) Once in week
b) Fortnightly
c) Monthly
d) whenever required
6. In how many days you get the delivery of products from day of order?
a) 0-3 days
c) 3-5 days
b) 5-7 days
d) 10 days above
7. What factors influence you to sell the Amul Products?

a) Brand Image
b) Margin
c) Low price
d) Retail schemes
e) Service
f) Quality
g) Demand
h) Availability
66
The Taste Of India
8. Rank your criteria for selling the Amul Products in your shop
Rank in the form of numbers, 1 to 8 (where 1 is highest and 8 is low)
Parameter
Amul
Quality
Retail margin
Volume sold
Supply on time
Popular brand
Credit facility
Complaint handling
Demand
9. Kindly rate the following statements on a scale of 1 to 5 where 1=strongly agree

2=Mostly agree 3=Most Disagree 4= Strongly Disagree.
Statements
Strongly
Mostly
Most
Strongly
agree
agree
Disagree
Disagree
1. Amul product delivery is

good as compared to
others.
2. Overall service of Amul in
terms of product quality,
product delivery, and offers
is good
3. In your opinion sales
promotion techniques has
been used by Amul is
successful
The Taste Of India
10. Kindly mention below if you have any new idea of suggestions or expectations from
Amul .....................
................................................................................................................................................
................................................................................................................................................
THANK YOU
The Taste Of India
BIBLIOGRAPHY
The Taste Of India
BIBLIOGRAPHY:
1) Books referred:
a) Marketing Management -- Philip Kotler
b) Marketing Research
:
-- A Parsuraman , Grewal, Krishna
2) Others:
a) Company brochure:
Product Catalogue
b) Information from company officials:
Mr R Gopalkrishnan (Senior Sales Executive)
Webliography:
1) http://en.wikipedia.org/wiki/Amul products

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EXECUTIVE SUMMARY:

Need for the study:

TITLE OF THE STUDY

To know the service delivery quality.

3. Awareness about the Amul products in MFs

:Non probabilistic Convenience sampling

: 13MFs & 47 A- Class Outlets

:Hubli & Dharwad city

Benefits of the study:

7. 7.35% of retailers are said that Amul product delivery is good.

Hindustan Unilever Ltd.

ITC (Indian Tobacco Company)

Asian Paints (India)

Procter & Gamble Hygiene and Health Care

Higher employment generation

Foreign Direct Investment in the FMCG Sector

Proposed and implemented domestic investments in various FMCG segments

Scope of the Sector

Advantage of India under Food Industry:

India is looking for investment in infrastructure, packaging and marketing

India has huge scientific and research talent pool

A largely untapped domestic market of 1000 million consumers

300 million upper and middle class consume processed food

200 million more consumers expected to shift to processed food by 2010

Well-developed infrastructure and distribution network

50 per cent of household expenditure by Indians is on food items

ICE CREAM SALES AND TRENDS

KLESs Institute Of Management Studies and Research, Hubli

ICE CREAM DEFINED

Sorbet is frozen dessert similar in composition to an ice. It is a non-dairy product

THE ICE CREAM SEGMENT

INDUSTRY ANALYSIS OF ICE CREAM

SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY

MAJOR PLAYERS IN THE DAIRY FOOD INDUSTRY

Nestle India Limited

Sweetened condensed Milk

Milk food Limited

Ghee, ice cream and Other

Smithkline Beecham Limited

Malted milk food, Milk fluid,

Indodan Industries Limited

Condensed milk, Skimmed

Gujarat Co-operative Milk AMUL.

Marketing Federation limited

Pannier, Ice cream, and other

Farex, Complan, Glactose, Infant Milk food, Malted

This depot will cover all North Karnataka

In this department the

MARKETING AND SALES DEPARTMENT

To increase the market share of amul.

To be responsible for consumers source and be competitive in market.

To streamline the marketing operation.

Responsibilities Marketing and Sales Asst. Manager:

Making advertisement of the product.

Looking to the marketing changes.

Looking to the needs & wants of the customers.

Expand the market.

Sending the report of the sales to the tope management.

KLESs Institute Of Management Studies and Research, Hubli

In the year 1946

Headquarter: - Anand, Gujarat state, India

Chairman, Gujarat Co-operative Milk

Amul Butter, Amul Milk Powder, Amul Ghee,