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MAJOR PROJECT REPORT

ON
CONSUMER PREFERENCES TOWARDS AMUL MILK
VARIANTS.

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF


THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION(G)

GURU GOBIND SINGH INDRAPRASTH UNIVERSITY, DELHI

ACADEMIC SESSION 2014-17


SUBMITTED TO: SUBMITTED BY:
Mrs. POOJA TRIPATHI ANSHIKA AGGARWAL
(ASSOCIATE PROCESSOR OF BBA BBA(G) 6th SEM
DEPARTMENT) 02251101714

DELHI METROPOLITAN EDUCATION


B-12,Sector 62 NOIDA (U.P.) Phone : +91-7042667951. Mobile: +91-
7042667516. Email : info@dme.ac.in

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Certificate by the Guide

This is to certify that project title Customer Prefrences towards AMUL Milk
variants is the original work of ANSHIKA AGGARWAL student of BBA (General)
6th semester and has been duly completed her project under my guidance and
supervision up to my satisfactory level.
This work has been done in partial fulfillment of the requirement for the award of the
degree of Bachelor of Business Administration from DELHI METROPOLITAN
EDUCATION, NOIDA and has not been submitted anywhere in any other university
for the award of any degree.

Mrs. POOJA TRIPATHI ANSHIKA AGGARWAL


SR. ASST PROFESSOR, DME BBA 6TH SEM
02251101714

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ACKNOWLEDGMENT

I would like to take this opportunity to express my since gratitude to all those
who guide me in right direction to complete this report.

I express my deep sincere gratitude to Mrs Pooja Tripathi for her


encouragement throughout the course of this study.

I would like to thank my respondents for sparing their precious time to answer
my questionnaire and giving me the valuable information I needed. Finally my
sincere thanks to my parents and to my entire friend to their support and
motivation throughout the project.

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CONTENTS

Chapter Title Page no.


no.
1 CHAPTER 1

EXECUTIVE SUMMARY 5

OBJECTIVE OF THE STUDY 6

INTRODUCTION 7

COMPANY PROFILE-AMUL 8

2 CHAPTER2

RESEARCH METHODOLOGY 27

LETERATURE REVIEW 29

LIMITATIONS 31

3 ABOUT CUSUMER PREFERENCES 32

4 CHAPTER-3

ANALYSES AND INTERPRETATION 37

5 CHAPTER-4

FINDINGS 46

SUGGESTIONS 50

CONCLUSIONS 52

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ANNEXURE:
A) BIBLIOGRAPHY 53-56
B) QUESTIONNAIRE

Executive summary
Topic- to study customer preferences toward amul milk variants
(tonned ,double tonned, full cream etc.
Milk is the only element that is consumed mostly by every member in the
family. In todays scenario many brands are offering fresh milk to the society
like AMUL mother dairy, Namaste india paras etc.
This project is based on AMUL milk and its variants that which variant is
preferred mostly by people. Every type of milk has its features and benefits
towards our healthy body.

Full cream milk: Full cream milk, also called whole milk is usually
given to children, teenagers and body builders. This milk is called so
because it contains all the milk fat without adding or removing anything.
It is collected from the dairy herd and it undergoes various processing
techniques like pasteurization to kill potentially harmful bacteria before it
reaches the general public. One glass would generally contain 3.5% milk
fat, which provides about 150 calories. Full cream milk is also creamier
and full of flavour.
Single toned milk: Adding skimmed milk powder and water to whole
milk makes single toned milk. It has about 3% fat and minimizes bodys
absorption of cholesterol from the milk. It contains almost the same
nutrition as whole milk except the fat-soluble vitamins. One glass of
toned milk provides around 120 calories.
Double toned milk: This milk is obtained by adding skimmed milk
powder to whole milk and has about 1.5% fat content. Double toned milk
is ideal for those trying to maintain weight as it keeps the calorie intake
under control and also helps in weight loss.
Skimmed milk: Skimmed milk has 0.3% to 0.1% fat content. Though
skimmed milk contains all the nutrients found in whole milk like the
vitamins and minerals, it gives you just half the calories of full cream
milk (around 80 calories per glass of milk). It contains slightly more

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calcium than whole milk .This projects will tells how milk variants
effects custumers preferences and which variant is chosen by the society.

OBJECTIVE OF THE STUDY


Many companies are aiming for high satisfaction because customers who are
just satisfied still it find it easy to switch when better offer comes along. Those
who are highly satisfied are much less ready to switch. High satisfaction creates
an emotional bind with the brand not just a rational preference. The result is
highly customer loyalty. Hence an attempt has been made to identify the
customer attitude and preferences on Amul Milk variants.

This project is based on consumers preferences towards Amul Milk variantes.


Objectives of study are;
1. To know the customer behavior and to identify the level of customer
satisfaction towards Amul milk variants ( tonned, double tonned
tonned, full cream).
2. To offer pragmatic suggestion for growth and development of Amul
products.
3. To know the various marketing mix that influence the customer
behavior.

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CHAPTER-1
INTRODUCTION:
Marketing is a total system of business, an ongoing process of:
1. Discovering and translating consumer needs and desires into the
products services (planning and producing the planned products).
2. Creating demand for this product and services (through promotion and
pricing)
3. Serving the consumer demand through planned and physical
distribution) with the help of marketing channels and then I turn.
4. Expanding the market even in the place of keen competition.
The modern marketer is called upon to set the marketing objectives, develop the
marketing plan, organize the ,marketing function, implement the marketing plan
or programme ( marketing mix) and control the marketing programme to ensure
the accomplishment of the set marketing objectives. The marketing programme
covers producer planning or merchandising, price, promotion and distribution.
In short, modern marketing begins with the customer, not with production cost,
sales, technological landmarks and it ends with the customer satisfaction and
social well-being. Under the market- driven economy buyer or customer is the
boss.
Marketing has been viewed as an ongoing or dynamic process involving a set of
interacting activities dealing with a market offering by producers to consumers
on the basis of reliable marketing anticipation.

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Marketing is a matching process by which a process by which a producer
provides a marketing mix that meets consumer demands of a target markets
within the limits of society. The process is based on corporate goals and
corporate capabilities. Marketing process brings together producers and
consumers the two main participants in exchange.

INDUSTRY PROFILE:
Dairy is a place where handling of milk and milk products is done and
technology refers to the application of scientific knowledge for practical
purposes. Dairy technology has been defined as that branch of dairy science,
which deals with the processing of milk and the manufacture of milk products
on an industrial scale.
The dairy sector in the India has shown remarkable development in the past
decade and India has now become one of the largest producers of milk and
value-added milk products in the world.
The dairy sector has developed through co-operatives in many parts of the State.
During 1997-98, the State had 60 milk processing plants with an aggregate
processing capacity of 5.8 million litres per day. In addition to these processing
plants, 123 Government and 33 co-operatives milk chilling centers operate in
the State.
Also India today is the lowest cost producer of per litre of milk in the world, at
27 cents, compared with the U.S' 63 cents, and Japans $2.8 dollars. Also to
take advantage of this lowest cost of milk production and increasing production
in the country multinational companies are planning to expand their activities
here. Some of these milk producers have already obtained quality standard
certificates from the authorities. This will help them in marketing their products
in foreign countries in processed form.

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The urban market for milk products is expected to grow at an accelerated pace
of around 33% per annum to around Rs.43,500 crores by year 2005. This
growth is going to come from the greater emphasis on the processed foods
sector and also by increase in the conversion of milk into milk products. By
2005, the value of Indian dairy produce is expected to be Rs 10,00,000 million.
Presently the market is valued at around Rs7,00,000 mn.

Milk Production from 1950 to 2020

1950 17 million tonnes

1996 70.8 million tonnes

1997 74.3 million tonnes

(Projected) 2020 240 million tonnes

Expected to reach- 220 to 250 mt 2020

India contributes to world milk production rise from 12-15 % & it will increase
up to 30-35% (year 2020)

World's Major Milk Producers (Million MTs)

2012--13 2014-15 (Approx.)


Country
India 81 84.5
Brazil 75 77
Russia 34 33
Germany 27 27
France 24 24
Pakistan 21 22
USA 71 71
UK 14 14
Ukraine 15 14
Poland 12 12
New Zealand 11 12
Netherlands 11 11
Italy 10 10
Australia 9 10
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Research and Development in Dairy Industry:
The research and development need to the dairy industry to develop and
survives for long time with better status. The various institute and milk dairy
companies R&D results provide base for todays industry growth and
development. The research and development of products of dairy, like yogurt
and cheese market research and company reports provides insights into product
and market trends, analysis opportunities, sales and marketing strategies will
help local milk unions to develop and spread world wide through obtaining this
knowledge. Specific on market share, segmentation, size and growth in the US
and global markets are also helps industry to expand its market worldwide even
small union also.
Development of Food Processing Industry:
The food processing industry sector in India is one of the largest in terms of
production, consumption, export and growth prospects. The government of
accorded it is a high priority, with a number of fiscal relieves and incentives, to
encourage commercialization and value addition to agriculture produce, for
minimizing harvest wastage, generating employment and export growth.
Food processing industry is providing backbone support to the milk industry.
The development food products by using milk can give good market
opportunities to produces milk.
Products and Industry Status:
Among the products manufactured by organized sector are Ghee, Butter,
Cheese, Ice-Creames, Milk powders, Melted milk food, Infant food, condensed
milk etc.. some milk products like Casein and Lactose are also being
manufactured lately. Therefore, there is good scope for manufacturing these
products locally.
Liberalization of the economy has led to a flood of new entrants, including
MNCs due to good prospects and abundant supply.

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Investment Potential in Milk Products:
At the present rate of growth, India is expected to overtake the US in milk
production by the year 2010, when demand is expected to be over 125.69 ml.tn.
Being largely imported, manufacture of casein and lactose has good scope in the
country.
Exports of milk products have been decentralized and export in 2005-2010 is
estimated at 71.875 cr.

Production of Milk in India:

The facts and figures here shown are calculated on the basis of percentage
increases pear year.

Production in million
Year
MT
1995-96 61.2
1996-97 63.5
1997-98 65.0
1998-99 69.0
1999-2000 74.0
2000-2001 78.5
2001-02 80.0
2002-03 84.51
2003-04 87.17
2004-05 92.0
2005-06 97.0
2006-07 102.65
2007-08 108.45
2008-09 115.58
2009-10 122.78
2010-11 137.68
2011-12 145.98
2012-13 152.96
2013-14 160.8
2014-15 165
2015-16 170.2

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Company Profile of Amul

AMUL means "priceless" in Sanskrit. The brand name "Amul," from the
Sanskrit "Amoolya," was suggested by a quality control expert in Anand.
Variants, all meaning "priceless", are found in several Indian languages. Amul
products have been in use in millions of homes since 1946. Amul Butter, Amul
Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul
Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made
Amul a leading food brand in India. (Turnover: Rs. 52.55 billion in 2007-08).
Today Amul is a symbol of many things. Of high-quality products sold at
reasonable prices.

50 years after it was first launched, Amul's sale figures have jumped from 1000
tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No other brand
comes even close to it. All because a thumb-sized girl climbed on to the
hoardings and put a magical spell on the masses

AMUL stands for,


A = Anand
M = Milk
U = Union

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L = Limited.

Milestone of Amul
Name Karia district co-operative milk producers ltd, widely known as
Amul
From Co-operative sector registered under the co-operative society act
Location Amul dairy, nr, railway station, Amul dairy road, Anand Gujarat ,
India
Registration 14th December, 1946
Registered Kaira district co-operative milk producers ltd, Anand -388 001.
Gujarat
Size Production of different products on large scale, collecting 9 to 15
lakh liters milk everyday & producing milk products.
Plant There are 4 plants
1) Amul Plant 2) Kanjari Plant
3) Mogar Plant 4) Khatraj Plant
Banker 1. The Kaire District Center Co-Operative Bank Ltd.
2. UTI bank 4. Bank of Baroda
3. SBI 5. Corporation bank 6. Bank of
Maharashtra
Working 10:45 am to 5:45 pm
Founders 1. Shri Tribhuvandas K. Patel
2. Shri Sadar Vallabhbhi Patel
3. Shri Morarji Desai
4. Shri Verghese Kurien
5. Shri Harichand M. Dalaya

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Amul (Anand milk union ltd.) is abased on four hands, which are coordinated
with each other. The actual meaning of this symbol is co-ordination of four
hands of different people by whom this union is at the top position in Asia.
o First hand is of farmers, without whom the organization would not
have existed.
o Second hand is of processors, who process the row material (milk)
into finished goods.
o Third hand is of marketer, without whom the product would have
not reached the customers
o Fourth hand is of customers, without whom the products would
have not carried on.

Brief History of Amul


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.
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.

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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 recognized as the man
behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the
Banaskantha Union, was elected chairman of GCMMF.

AMUL: The origin

The mighty Ganges at its origin is but a tiny stream in the Gangotri ranges of
the Himalayas. Similar is the story of Amul which inspired Operation Flood and
heralded the 'White Revolution' in India. It began with two village cooperatives
and 250 liters of milk per day, nothing but a trickle compared to the flood it has
become today. Today Amul collects processes and distributes over a million
liters of milk and milk products per day, during the peak, on behalf of more than
a thousand village cooperatives owned by half a million farmer members.
Further, as Ganga-ma carries the aspirations of generations for moksha, Amul
too has become a symbol of the aspirations of millions of farmers.Creating a
pattern of liberation and self-reliance for every farmer to follow.

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The Start of a Revolution
The revolution started as awareness among the farmers that grew and matured
into a protest movement and the determination to liberate them. Over four
decades ago, the life of a farmer in Kaira District was very much like that of his
counterpart anywhere else in India. His income was derived almost entirely
from seasonal crops. The income from milch buffaloes was undependable. The
marketing and distribution system for the milk was controlled by private traders
and middlemen. As milk is perishable, farmers were compelled to sell it for
whatever they were offered. Often, they had to sell cream and ghee at
throwaway prices. In this situation, the one who gained was the private trader.
Gradually, the realization dawned on the farmers that the exploitation by the
trader could be checked only if marketed their milk themselves. In order to do
that they needed to form some sort of an organization. This realization is what
led to the establishment of the Kaira District Cooperative Milk Producers'
Union Limited (popularly known as Amul) which was formally registered on
December 14, 1946. The Kaira Union began pasteurizing milk for the Bombay
Milk Scheme in June 1948. An assured market proved a great incentive to the
milk producers of the district. By the end of 1948, more than 400 farmers joined
in more village societies, and the quantity of milk handled by one Union
increased from 250 to 5,000 liters a day.
Amul's Secret of Success

The system succeeded mainly because it provides an assured market at


remunerative prices for producers' milk besides acting as a channel to market
the production enhancement package. What's more, it does not disturb the agro-
system of the farmers. It also enables the consumer an access to high quality
milk and milk products. Contrary to the traditional system, when the profit of

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the business was cornered by the middlemen, the system ensured that the profit
goes to the participants for their socio-economic upliftment and common good.

Looking back on the path traversed by Amul, the following features make it a
pattern and model for emulation elsewhere. Amul has been able to:

Provide a support system to the milk producers without disturbing their


agro-economic systems
Even though, growing with time and on scale, it has remained with the
smallest producer members. In that sense, Amul is an example par
excellence, of an intervention for rural change.
Bring at the command of the rural milk producers the best of the
technology and harness its fruit for betterment
Produce an appropriate blend of the policy makers farmers board of
management and the professionals: each group appreciating its roles and
limitations
Plough back the profits, by prudent use of men, material and machines, in
the rural sector for the common good and betterment of the member
producers and

The Union looks after policy formulation, processing and marketing of milk,
provision of technical inputs to enhance milk yield of animals, the artificial
insemination service, veterinary care, better feeds and the like - all through the
village societies.The village society also facilitates the implementation of
various production enhancement and member education programs undertaken
by the Union. The staff of the village societies has been trained to undertake the
veterinary first-aid and the artificial insemination activities on their own.

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Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest
food products marketing organization. It is a state level apex body of milk
cooperatives in Gujarat which aims to provide remunerative returns to the
farmers and also serve the interest of consumers by providing quality products
which are good value for money.

13 district cooperative milk


Members:
producers' Union
No. of Producer Members: 2.7 million
No. of Village Societies: 13,141
Total Milk handling capacity: 10.21 million liters per day
Milk collection (Total - 2008-09): 2.69 billion liters
Milk collection (Daily Average 2008-
7.4 million liters
09):
Milk Drying Capacity: 626 Mts. per day
Cattlefeed manufacturing Capacity: 3090 Mts per day

Sales turn over from 1995 to 2009:

Sales Turnover Rs (million)


1995-96 11140
1996-97 13790
1997-98 15540
1998-99 18840
1999-2000 22192
2000-01 22185
2001-02 22588
2002-03 23365
2003-04 27457
2004-05 28941
2005-06 29225
2006-07 37736
2007-08 42778
2008-09 52554

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Ownership Pattern of Amul

Amul is a co-operative sector & it is having 22 total numbers in societies. In


addition to this there is total 1800 manpower in organization.
Gujarat co-operative milk marketing federation ltd. widely known as GCMMF
faces through competition in the Indian market by different companies. So that
by advertising and promoting its product GCMMF has become one of the
leading dairies in India. In western of India, GCMMF shares most of the market
while in other parts of India it is next so. But slowly and surely GCMMF is
growing in sharing the market with other competitors industries.
Now there is machinery around Rs. 1500 lakh which is to be in expansion with
higher advanced machinery to Rs. 1600 lakhs.
Accumulated members share capital in union is Rs. 553,935,000 this share
capital is deposited in Amul bank account in the name respective member dairy
co-operative societies.

Information about Competitors:


The Indian market is dominated by a large number of small local manufacture
and regional players. There are an estimated 150 manufactures in the organized
segment which account for 30-40% of sales and about 1000 units in the
unorganized segment of the market. They have also competitor in the market.
They felt very tuff competition in our country and outing countries.

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According to Product Categories
For Liquid Milk: For Ice-Cream Product
Gayatri Milk Gokul Ice-Cream
Super Milk Dairy Den Ice-Cream
Payal Milk Quality Walls Ice-Cream
Sardar Milk Havmor Ice-Cream
Samrrudhi Milk Max
Sagar Milk Vadilal Ice-Cream

For Ghee Product For Chocolate


Gopi Ghee Cadbury
Gayatri Ghee Max
Krishna Ghee Dairy Milk
Abad Ghee Five Star
Nestle

Butter Cheese
Nature butter Britannia
Lebon

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Achievements \ awards
a) Amul a co-operative society and its co-operation has led many different
awards in its favor.
b) Magsaysay award for community leadership presented in manila,
Philippines to Shri Tribhuvandas Patel, Shri D N Khurody and Shri V.
Kurien
c) 1964: Padmabhusan award given to Shri T.K. Patel
d) 1965: Padmshri awarded was given to V. Kurien, general manager, by
the president of India.
e) 1987: Best Productivity awarded by national productivity council for
the year 1985-86 awarded to Amul dairy.
f) 1988: Best Productivity awarded for the second successive year 1986-
87 by the president of India, Mr. R. Venkatrao to kaira union.
g) 1993: ICA Memenoto towards genuine and self sustaining co-operative
worldwide ICA regional office for Asia and pacific, New Delhi, 1996.
h) 1999: G.B.Birla award.
i) Moreover the Amul union has achieved the prestigious ISO 9001-2000
and HACCP Certificate and effects are got to obtain ISO 14000.

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List of Products Marketed

Bread Spreads
Amul Butter Amul Lite
Utterly Butterly Low fat, low
Delicious Cholesterol Bread
Spread

Delicious Table
Margarine
The Delicious way
to eat healthy

Milk Drinks
Amul Kool Millk Amul Kool
Shaake

Amul Kool Cafe Kool Koko


A delight to
Chocolate Lovers.
Delicious Chocolate
taste

Nutramul Energy Amul Kool


Drink Chocolate Milk
A drink for Kids -
provides energy to suit
the needs of growing
Kids

Amul Kool Amul Kool


Flavoured Bottled Flavoured Tetra
Milk Pack

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Amul Masti Spiced Amul Kool
Buttermilk Thandai
Amul introduces the
Best Thirst Quenching
Drink

Powder Milk
Amul Spray Infant Amul Instant Full
Milk Food Cream Milk
Still, Mother's Milk is Powder
Best for your baby A dairy in your
home

Sagar Skimmed Milk Sagar Tea Coffee


Powder Whitener
Which is especially
useful for diet
preparations or for use
by people on low
calorie and high
protein diet.

Amulya Dairy
Whitener
The Richest, Purest
Dairy Whitener

Fresh Milk
Amul Fresh Milk Amul Gold Milk
This is the most
hygienic milk
available in the
market. Pasteurised in
state-of-the-art
processing plants and
pouch-packed for
convenience.

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Amul Taaza Double Amul Lite Slim and
Toned Milk Trim Milk

Amul Fresh Cream Amul Shakti Toned


Milk

Amul Calci+

Cheese
Amul Pasteurised Amul Cheese Spreads
Processed Cheese Tasty Cheese Spreads in
100% Vegetarian 3 great flavours..
Cheese made from
microbial rennet

Amul Emmental Amul Pizza Mozzarella


Cheese Cheese
The Great Swiss Cheese Pizza cheese...makes
from Amul, has a sweet- great tasting pizzas!
dry flavour and hazelnut
aroma

Gouda Cheese

For Cooking

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Amul / Sagar Pure Cooking Butter
Ghee
Made from fresh cream.
Has typical rich aroma
and granular texture. An
ethnic product made by
dairies with decades of
experience.

Amul Malai Paneer Utterly Delicious Pizza


Ready to cook paneer to
make your favourite
recipes!

Mithai Mate Masti Dahi


Sweetened Condensed
Milk - Free flowing and
smooth texture. White to
creamy color with a
pleasant taste.

Desserts
Amul Ice Creams Amul Shrikhand
Premium Ice Cream A delicious treat,
made in various varieties anytime.
and flavours with dry
fruits and nuts.

Amul Mithaee Gulab Amul Chocolates


Jamuns The perfect gift for
Pure Khoya Gulab someone you love.
Jamums...best served
piping hot.

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Amul Lassee Amul Basundi

Health Drink
Nutramul Amul Shakti Health
Malted Milk Food Food Drink
made from malt Available in Kesar-
extract has the Almond and
highest protein Chocolate flavours.
content among all
the brown beverage
powders sold in
India.

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CHAPTER -2
Research methodology
The study is mainly concerned with behaviors of the customers satisfaction
towards AMUL products and Milk products. Hence various data and
methodology is considered in my report preparation. The main data sources are:
PRIMARY DATA
The primary data refers to original information gathered for a specific purpose
and provides up to date, accurate and relevant information and it is gathered in
an investigation according to the needs of the problem.

TOOLS USED TO COLLECT THE PRIMARY DATA:


The primary data is collected on the basis of survey method with the help of
questionnaires, and interviews, personal observation, direct consultation with
consumers and dealers.
Both open and closed end questions are used in the questionnaire.

METHODS:
The survey method is used to collect the primary data with the help of
questionnaire based on explorative and conclusive research.

SAMPLING UNIT:
It refers to the individuals who are to be surveyed in the study and it is the
customer who is consuming or using or who has bought AMUL milk and milk
products are surveyed.

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SAMPLE SIZE:
It refers to the number of people surveyed for this topic, in the study 100 people
were surveyed and responses drawn.

SECONDARY DATA:
The secondary data can be defined as data collected by son\me one else for
purposes other than solving problem being investigation and previously meant
for another purpose.
A secondary data is collected from the books, periodical journals, magazines,
papers, company records, internet and other publication.

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Literature Review

A review of literature is designed to identify related research, to set the


current research work within a conceptual and theoretical context. Review of
literature is the important step in a research work, which has to be done
adequately
in order to reveal the significance of the study. In this chapter a detailed review
of literature has been done by reviewing the previous studies relating to the core
area of the research. These studies have been taken from published journals,
articles and Ph.D. thesis.

Ana kapaj, Catherine Chan halbrend and Eda Deci 17 in their study made an
attempt to analyze the differences in the consumers preferences in choosing
milk in the market, especially to differentiate consumers behavior towards
fresh and Ultra high temperature (UHT) milk. To reach these objectives, this
study designed a conjoint choice experiment survey and collected primary data
in the most populated cities of Albania. Then the data were analyzed using
Latent class
approach to determine milk consumer classes based on the product attributes.
The study identified that the Milk producers must meet consumers' demand for
milk when there is demand in order to remain competitive. The study also
identified four milk consumers groups according to their preferences on the
product attributes. All these groups represent different potential market
segments with specific characteristics. Conjoint choice experiment with latent
class analysis
indicated that the most important attribute for Albania consumer is fat level.

Bytyqi Hysen, Vegara Mensur and Gjonbalaj Muje24 in their study made an
attempt to identify the effect of different variables on consumer purchase
decision of dairy products. The study revealed that dairy products were
perceived differently at various types of purchasing places. The most important
socio economic variables like trust, gender of consumer, quality and price of the
product show individual differences in consumer purchase behaviors of dairy
products.

29 | P a g e
This research focus on what are the consumers preferences towards amul milk
variants.Which milk is consume by consumers whether it is full cream , tonned
or double tonned. This research is conducted in vaishali ramprastha green where
more than 1000 families consume milk. Now a days milk is themost preferable
product to be consume by people. My study focus on how people decide among
the variants which one to consume.
Above researchs focus on opportunities and challenges faced by consumers in
buying the milk my study focus on consumers preferences towards amul milk.
This study take survey from 100 families in vaishali living in ramprastha colony
about their preferences towards amul milk.
I observe every families and do researche from magazine and amul turnover to
learn amul pattern of selling milk variants.

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LIMITATION OF THE STUDY:

Total coverage of the study is limited to the few customers for


collecting AMUL milk and milk products at Ramprastha Green
Vaishali of 100 families.
Sample size of the study is restricted to 100 customers only.
Most of the respondents hesitate to give information but how ever
an attempt is made to collect the data systematically.
Time is the one constraint of the survey.
Study is limited to Amul Milk only not its other products.
Study only includes preferences factor not other factors.

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About customer preferences and satisfaction

INTRODUCTION:
The term market is derived from the Latin word Marcatus which means to
trade or place of business. So in the literal sense and in the ordinary language,
the term Market refers to a certain place, where buyers and sellers personally
meet each other and make their purchase and sales. In short, it means a certain
place where goods are bought and sold.
However in commerce the term Market is used in the economic sense. In the
economic sense the term Market does not refer to any particular place where
buyers and sellers meet face to face and make their purchase and sales, but
covers the whole of any region, where the buyers and sellers are in such free
intercourse, that is contract or communication with one another that a single
price prevails for a certain commodity at a certain point of time through the
region. In short, it means the getting together of buyers and sellers in person or
any by mail telephone, telegraph of through any other means of communication.
Marketing:
The meaning of the term marketing can be studied under two heads. They are,
1. Traditional or old view of marketing
2. Modern of customer oriented marketing
Definition:
According to the American Marketing Association, Marketing is the
performances of business activities that direct the flow of goods and services
from producer to customer or user

32 | P a g e
Five Stages of Customer preferences

This bond results from effective one-on-one communication, mutually-


beneficial interaction, the company's genuine interest and involvement in the
customer's life and lifestyle, a combination of customer allegiance and company
advocacy, and a shared sense of purpose.

Customer loyalty develops from personal relationships and trust between the
company and the customer over time. This includes keeping customers involved
throughout the product lifecycle as well as developing products and/or services
to meet changing customer needs and desires.

AWARENESS

The art of earning customer "share-of-mind" involves creating an


impression of personal identification with the company's products and/or
services.
This first stage, awareness, represents the weakest aspect of a relationship
because it is non-interactive and depends entirely on the customer's
perception

IDENTITY

The identification stage occurs when a potential customer asks the


question, "What's in it for me?"
A customer identifies a product of service as meeting one or more
important personal needs, such as self-fulfillment, status, or belonging.
A customer may perceive the company as having values and preferences
similar to his own and begin to form a relationship with the company.

33 | P a g e
RELATIONSHIP

At this stage, the customer receives the benefit of products and/or


services tailored specifically to his individual needs (at least as nearly as
the company can provide).
Once a customer interacts with the company, repeated experiences of
individual customer satisfaction take on significant importance.
Customers expect that products will work and that they will receive good
service. Customer delight results largely from how a product is sold and
is serviced as well as how the company responds to inquiries and solves
problems.

COMMUNITY

Customer bonding requires high levels of effective interaction. When the


company integrates its products and services into the life and lifestyle of
its customers, communal bonding occurs.
The community relationship stage achieves an integration of values,
preferences and priorities between customer and company where each
derives mutual benefit. Companies that achieve this type of loyalty
consistently delight their customers.

ADVOCACY

At this advanced level of customer bonding, the company services as an


advocate for the customer, and the customer shows an allegiance to the
company; word-of-mouth advertising flourishes. Because the company
now can encourage buyer-get-a-buyer programs through sappropriate
incentives, it must be prepared to follow through professionally to make
new recruits feel as valued as the advocates who recommended them.
Market Segmentation:
34 | P a g e
The process of talking the total heterogeneous market for a product & dividing
it in to several sub markets each which tend to be homogeneous in all
significances.
There are few bases for segmentation markets,

Customer characteristics
Consumer responses
The major segmentation variables for consumers markets are,
o Geographic segmentation (nation, state, country, city)
o Demographic segmentation (age, family, religion, generation,
nationality, social class)
o Psychographic (life style, personality & status class)
o Behavioral (occupation, benefits, users, loyalty, )
These variables can be used singly or in combination, business marketer use all
these variable as along with operating variables, purchasing approaches,
substantial, accessible, differentiable, & actionable.
Customer Behavior:
The term consumer behavior refers to the behavior that consumer displays in
reach for purchasing using, evaluating & disposing of products & services that
they except will satisfy their needs.
Consumer Research:
Consumer research is the methodology used to study consumer behavior
research offer set diverse to identify consumer needs it is used to identify both
felt & unfelt needs, to learn how consumers. Perceive product & brand & stores.
What their attitudes are before and after promotional campaigns & how & why
they make their consumption decision.

35 | P a g e
Consumer Satisfaction:
All business firms have realized that marketing is a core element of
management philosophy & the key to its success lies in focusing more & more
on the customers. That is, it will be the customer who will decide where the firm
is heading. Thus the challenge before the marketer is to ensure that they should
satisfy every customer.
Satisfaction is an important element in the evaluating stage. Satisfaction refers
to the buyers state of being adequately rewarded in a buying situation for the
sacrifices he has made one the customer purchase & use the product they may
then become either satisfy or dissatisfied.
The result of satisfaction to customer form the purchase of the product or
services is that more favorable post-purchase attitude, higher purchase intention
& brand loyalty to be exhibited that the same behavior is likely to be exhibited
in a similar purchasing situation. The term consumer is a typically used to
refer to someone who regularly purchase from a particular store or company.
Customers are people who are happy with the product & services & are willing
to come back & pay for it again.
Today the firms aim to give satisfaction to the customer through marketing
concepts. The firm try to help the buyers in the solving the problem then
competitors. The marketers must see that consumers with purchasing power
constitute a potentials buyers are identified. It is essential for the marketer to
carry out the business in such a way that they give satisfaction to consumers
needed. When a firm markets a product or service it should aim to enjoy
consumers satisfaction & profit maximization.

36 | P a g e
CHAPTER-3
Analysis and Interpretation of the Data:
The analysis and interpretation of the data involves the analyzing of the
collected data and interpretation it with pictorial representation such as bar
charts, pie charts and others.
Occupation:
The Amul Milk and Milk products are purchased by various occupants. The
following occupants of the respondents are classifies for the data collection.
Analysis of Occupation of the Respondents
Occupation No. of. Percentage
Respondents %
Business 20 20
Employee 10 10
House wife 65 65
Others 05 05
Total 100 100

ANALYSIS OF OCCUPATION OF THE RESPONDENTS


100
65
respondents

50
No.of

20
10 5 Business
Employee
0
House wife
OCCUPATION

Interpretation:
20% of the respondents are business, 10% of the respondents are employees,
and 65% of the respondents are house wives, 05% of the respondents are others
group.

37 | P a g e
Income:
Income decided the purchasing power of the customer. If the income is high
then, they go for high quality irrespective of price of the product. Hence in this
research I like to collect the data how income is influence to purchase Amul
Milk and Milk products.
Analysis of Monthly Income of the Respondents
Monthly income No. of respondents Percentage %

Below 5000 38 38
5001-10000 30 30
10001-15000 21 21
15001 & above 11 11
Total 100 100

38
40 30
RESPONDENTS

21
20
NO.OF

11

0
Below
5001-10000
5000
10001-15000
15001 & above
INCOME

Interpretation:
As per the data 38% of the respondents earn per month below 5000, 30% of the
respondents earn 5001 to 10000, 21% of the respondents earn above 10001 to
15000. 11% of the respondents earn 15000 & above. From the above table we
can conclude that majority of the respondents monthly income group of below
5000 and more than 5000 to 10000.

38 | P a g e
Purchasing Factor:
The various factors such as quality, price easy available etc. is influencing lot
and influences positively. The following data reveals how various factors are
influencing to buying of Amul Milk and Milk products.
Analysis of Factors to Buy AMUL Milk and Milk Products
Factors No. of Respondents Percentage %
Quality 38 38
Brand image 28 28
Price 20 20
Easy availability 14 14
Others Nil Nil
Total 100 100
`

Analysis of factors to buy Amul Milk products


38
40
No. of respondents

28
30
20
20 14
10
0
QualityBrand image PriceEasy availability

Factors

Interpretation:
38% of respondents buying AMUL Milk & Milk products for its Good Quality,
28% of respondents use for its Band Name,20% of its Price consideration, 14%
of its easy availability of respondents buying AMUL Milk & Milk products.

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PREFERED MILK;
Various type of milk is offered by amul .so which type of milk is mostly
preferred by the customers is shown in the table.
Type of milk No. of respondent Percentage%
Single toned 47 47
Double toned 37 37
Full cream 14 14
others 2 2
total 100 100
14

12

10

8 Series 3

6 Series 2
Series 1
4

0
Category 1 Category 2 Category 3 Category 4

Interpretation- according to the date 47% people preferred toned milk that
comes to category 1 and 37% people preferred double toned that cames to
category 2 and 14 % people preferred full cream that comes under category 3
and other are 2% that comes under category 4.

40 | P a g e
Quality:
This helps to company to attract more number of customers to their products.
Hence I try to collect information related to quality of AMUL Milk & Milk
products.
Opinion of the Respondents Regarding Quality
Opinions No. of Respondents Percentage ( % )
Thickness 35 35
Freshness 45 45
Taste 20 20
Others Nil Nil
Total 100 100

Opinion of the Respondents Regarding


Quality
50 45
No. of Respondents

40 35
30
20
20
10
0
Thickness Freshness Taste
Opinions

Interpretation:
As per the data, 35% of the respondents buy the milk due to Thickness, 45% of
the respondents for Freshness, and 20% of respondents for Taste.
Quality takes vital role in every organization. From the above table we can
conclude that majority of the respondents expressed that AMUL Milk & Milk
products have Thickness.

41 | P a g e
Respondents Consumption Quality:
Consumption quality is varying with various respondents. Some of customer
they buy less quantity and some them huge quantity depends upon requirement
and number of people in their houses. The data is collected to know the various
consumption patterns.
Analysis of Consumption of Average Milk per Day
Consumption No. of Respondents Percentage (%)
1 Liter 70 70
2-4 Liter 10 10
More than 4 Liters 20 20
Total 100 100

Analysis of Average Consumption of Milk Per Day

80 70
No. of Respondents

60
40
20
20 10
0
1 Liter 2-4 Liter More than
4 Liters
Consumption

Interpretation:
70% of the respondents are consuming one liter per day. 10% of the respondents
are consuming two to four liter per day. 20% of the respondents are consuming
more than four liters per day. From the above table we can conclude that
majority of the respondents were consuming one liter per day.

42 | P a g e
Purchase Duration:
Repeat purchase will help to know what customer loyalty towards Amul Milk &
milk products. When consumer repeatedly purchases the product, it is
understood that they are satisfied with the products. The following data show
the various statuses of the respondents.
Analysis of Purchase Duration of the AMUL Milk & Milk Products
Duration No. of Respondents Percentage (%)
6 Months 05 05
1-2 Years 15 15
3-4 Years 20 20
More than 4 years 60 60
Total 100 100

Analysis of Purchase Duration of the Milk Products


100
No.of Respondents

60
50
15 20
5
0
6 1-2 3-4 More
Months Years Years than 4
years
Consumption

Interpretation:
As per the data gathered, out of 100 respondents, 05% of the respondents
buying since last six months, 15% of the respondents from one to two years, 20
% of the respondents from three to four years, 60% of the respondents buying
AMUL Milk & Milk products from more than four years.
From the above table we can conclude that majority of the respondents
consuming AMUL Milk & Milk products more than four years.

43 | P a g e
Opinion towards Products:
The behavior of users after his commitment to a product has been collected with
respect product and terms of satisfaction with rating scale. The following are the
data obtained related to AMUL Milk & Milk products.
Analysis of Rating towards AMUL Milk & Milk products
Ratings No. of Respondents Percentage (%)
Excellent 25 25
Good 48 48
Average 22 22
Poor 05 05
Total 100 100

Analysis of Rating towards Amul Milk Products


48
50

40
No.of Respondents

30 25
22
20

10 5

0
Excellent Good Average Poor
Rating

Interpretation:
25% of the respondents rated that AMUL Milk & Milk products are Excellent.
48% of the respondents rated as good, 22% of the respondents rated as Average
Quality. 05% of the respondents rated that AMUL Milk & Milk products are
Poor. From the above table we can conclude that majority of the respondents
rated AMUL Milk & Milk products are of Good Quality.

44 | P a g e
Common Complaints:
A customer centered organization makes it ways for its customer to deliver
suggestion and complaints. Many firms provide form for collecting feedback on
products and some time customer complaints and suggestion about products. In
this survey, common problems raised by the customer or not.
Analysis of problems in Amul Milk Products
Opinions No. of Respondents Percentage (%)
Yes 10 10
No 90 90
Total 100 100

Analysis of Problems in Amul Milk Products

100 90
No.of Respondents

80
60
40
20 10
0
Yes No
Opinions

Interpretation:
Only 10% of the respondents said that that there is no problem is AMUL Milk
& Milk products. 90% of the respondents are said that no problems in AMUL
Milk & Milk products. From the above table we can conclude that majority that
the respondents are not having any problems in AMUL Milk & Milk products.

45 | P a g e
Purchasing Place:
Purchase place is also important to know where users choose their purchase
point. This helps to marketer to design various promotion and distribution
programmes. The data is collected to know the various purchase place and
availability.
Analysis of Availability of Products from Dealers
Easily Available No. of Respondents Percentage (%)
Yes 95 95
No 05 05
Total 100 100

Analysis of availability of Amul Milk


Products from the Dealers

95
100
No.of Respondetns

50

5
0
Yes No
Opinions

Interpretation:
95% of the respondents said that they are getting AMUL Milk & Milk products
easily. Only 05% of the respondents disagree with the easy available of AMUL
Milk & Milk products.
From the above table we can conclude that majority of the respondents getting
the AMUL Milk & Milk products easily from the dealers or retailers.

46 | P a g e
Value for the Money:
Consumers always think while paying price to the products such as how much
we are paying towards products and how much we are getting. This data is
gathered to know what value they are receiving from the AMUL Milk & Milk
products.
Analysis of Value for Money Paid by the Respondents
Response No. of Respondents Percentage (%)
Yes 96 96
No 04 04
Total 100 100

Analysis of Value For Money Paid By The


Consumers
96
100
No. of Respondents

80

60

40

20
4
0
Yes No
Responce

Interpretation:
96% of the respondents feel that they get the value for money they paid. Only
04% of the respondents feel that they are not getting the value for money what
they paid. From the above table we can conclude that majority of the
respondents are agreed that they are getting the value for money they paid.

47 | P a g e
Influence to Others to Buy Products:
Post experience & benefits will help organization in obtaining the additional
sale. In this connection feedback its act as an influence to others to adopt the
product the user survey has conducted to identify what an extent user
recommends to others. The data has been extracted & it is as follows.
Analysis of Recommendations
Recommended No. of Respondents Percentage (%)
Yes 95 95
No 05 05
Total 100 100

Analysis of Recommendations

100 95
No.of Respondents

80
60
40
20 5
0
Yes No
opinions

Interpretation:
95% of the respondents were satisfies with the AMUL Milk & Milk products.
05% of the respondents were not satisfies with the AMUL Milk & Milk
products. From the above table we can conclude that majority of the
respondents were satisfied with the AMUL Milk & Milk products.

48 | P a g e
CHAPTER-4
FINDINGS
o According to survey people mostly preferred toned and double
toned milk because of healthy body and fat is minimum in these
milk variant.
o It is findings in the survey that females are the main decision maker
for the milk and milk products. As per the data, 65% of female and
35% of male makes purchase decision.
o Based on the occupation of the customer, it is found in the survey
that 65% are the housewives and 35% are from various occupations
such as a businessman, employee, farmers, etc for the Amul Milk
& Milk products.
o Incomes less than 5000 to 10000 are more attracted to Amul Milk
& Milk products. As per the data, 79% of the respondents income
is under this group.
o The main purchasing factors for the Amul Milk & Milk products
are Quality and Brand image. The data reveals that 42% influences
on Quality and 32% influenced for the Brand.
o 88% of the total respondents are using product since from a long
time. The majority of the respondents are using Amul Milk & Milk
products from more than 3 years.
o Overall opinion of the product performance data reveals that Amul
product satisfies 70% of the respondent and 30% respondents
opinion is average.
o It is found in the survey that 32% of the total respondents are
dissatisfied on dealers services.It is found in the survey that
customer are influencing through Word of Mouth.

49 | P a g e
SUGGESTIONS
Milk and milk product purchase decisions are more decided by women
rather than male, because she act as a invigilator, execute her decision
and influence the same to the purchase while ascertaining the quality,
freshness and price. Hence, I suggest Amul co-operative society to
concentrate more on the women and men suggestions for designing the
marketing strategy, because womens role in the house is dominant, even
in the various decisions.
Occupation of the user influences the purchase decisions. The particular
occupation plays a vital role in deciding the product or services. Women
segment are influencing more on milk and milk products. Therefore, an
occupation is the factor influencing the product.
Income of the people decides the purchasing power. The high income
prefers to purchase product with the quality, freshness, thickness, etc. and
vice versa. So I suggest Amul to concentrate also on low income segment
to capture market and position themselves in the minds of the customer
with required quality and quality milk and milk products.
Quality and Brand Image plays a dominant role. Milk and milk products
move in the market due to its quality and brand. Therefore it should
maintain the same.
Since Amul is having loyal customer it should concentrate more on this
factor through various potential programmes such as campaign, premium
packs, offers etc., this helps to increase the loyalty towards the Amul
products.
As only 30% of the total respondents are dissatisfied which is quite a
large percentage and this may influence negatively and increase the rate
of switch over. Hence I suggest management to concentrate on few
product quality, shelf life, dealers approach, outlet maintenance etc. will
help Amul to satisfy to a greater extent.
50 | P a g e
Milk and milk product are having high demand and it is considered as a
very essential products. In present practice, purchase of milk and milk
products is through dealers. In this connection dealers approach towards
the product.
Customer is influential, hence I suggest Amul to look after the dealers
issue with due care.
When product possesses quality and other important attributes naturally
they propaganda about product through word of mouth and vice versa.
Therefore if the quality and attributes are fine tuned according to the
needs will help the Amul to get reputation and addition market.
Introduction of various economic products lies may help Amul to attract
the existing and new customers and may attract all income level groups.
Hence I suggest management to introduce new product line which can
satisfy the entire group.

51 | P a g e
Conclusions
From the survey conducted it is observed that Amul milk and Milk
products has a good market share.
From the study conducted the following conclusions can be drawn. In
order the dreams into reality and for turning liabilities into assets one
must have to meet the needs of the customers.
The factors considered by the customer before purchasing milk are
freshness, taste, thickness and easy availability.
Finally I conclude that, majority of the customers are satisfied with the
Amul milk and Milk products because of its good quality, reputation,
easy availabilities. Some customers are not satisfied with the Amul Milk
& Milk products because of high price, lack of dealer services, spoilage
and low shelf life etc. therefore, if slight modification in the marketing
programme such as dealers and outlets, promotion programmers, product
lines etc., definitely company can be as a monopoly and strong market
leader.
Amul has also to take care of its competitors into consideration and more
importantly its customers before making any move.

52 | P a g e
BIBLIOGRAPHY

Marketing Management Philip Kotler, The Millennium Edition, Prentice Hall


Of India Private Limited, New Delhi.

Marketing Research: G.C Brek, Tata Mc Graw-Hill Publishing Company


Limited, New Delhi

Periodical: Business Word


DFPI, Annual Report-1999-2000

Research Methodology: C.R.Kothari , 2nd edition.


S.N Murty and U Bhojanna

Website Address:
www.amul.com

53 | P a g e
APPENDIX

1. personal profile: A. Name:

B. Address:

C: Sex: Male: [ ] Female [ ]

G: Age: [ ]

E: Occupation:

1. Self-employed: [ ] 3.Professional:
[ ]

2. House wife: [ ] 4. Student: [ ]

2. Which product you are buying?

3. What is the most important factor that matters while buying an


Amul product?

a. Quality: [ ] b. Price: [ ] c.
Service: [ ]

4. How did you come to know about the Amul product?

a. By friends/family: [ ] b. Direct mailers: [


]

c. Press Ads: [ ] d. Reference website:


[ ]

e. T.V. Ads: [ ]

54 | P a g e
5. Which configuration would you decide on while buying an Amul
product?
a. Intermediaries: [ ] b. Standard: [
]

c. Latest / Advanced: [ ]

6. Are you satisfied with the quality of the product?

a. Yes: [ ] b. No: [ ]

7. Do you think the price of Amul product is high / low compared to


competitors product?
a. Very good: [ ] b. High: [ ]

c. Average: [ ] d. Same: [ ]

8. How often do you buy this product of Amul?

a. Daily: [ ] b. Monthly: [ ]

c. Weekly: [ ] d. Occasionally: [ ]

9. What is your opinion about the performance of Amul product?

a. Outstanding: [ ] b. excellent: [ ]

c. Good: [ ] d. Average: [ ]

10. Do the various schemes / promotional activities affect your


purchase plans?

a. Yes: [ ] b. No: [ ]

11. Suggestion (if any):

55 | P a g e
Date:
Place:

56 | P a g e

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