MAHATMA EDUCATION SOCIETYS

PILLAI COLLEGE OF ARTS, COMMERCE & SCIENCE RE-JPGREDITED BY NAAC WITH A GRADE
Dr, KM. Vasudevan Pillais Campus, Sector-16, New Panvel- 410206

A PROJECT ON

MARKETING ON AMUL
In the subject STRATEGIC MANAGEMENT SUBMITTED TO UNIVERSITY OF MUMBAI, FOR SEMESTER-I OF MASTER OF COMMERCE

BY

NILIN MADHAV SHETTY

M.COM PART-I ROLL NO: 3802

UNDER THE GUIDANCE OF Prof. Mrs. SEEMA SOMANI YEAR- 2013-14

DECLARATION BY THE STUDENT

I NILIN MADHAV SHETTY student of M.Com Part-I Roll Number 3802 hereby declare that the project for the paper STRATEGIC MANAGEMENT titled, MARKETING ON AMUL. submitted by me for Semester-I during the academic year 2013-14, is based on actual work carried out by me under the guidance and supervision of PROFESSOR Mrs. SEEMA SOMANI.

I further state that this work is original and not submitted anywhere else for any examination.

Signature

of

Student

EVALUATION CETIFICATE

This is to certify that the undersigned have assessed and evaluated the project on

STRATEGIC MANAGEMENT M.Com Part-I.

Submitted by NILIN

MADHAV SHETTY Student of

This Project is original to the best of our knowledge and has been accepted for internal assessment.

Internal Examiner

External Examiner

Principal

PILLAI COLLEGE OF ARTS, COMMERCE & SCIENCE

Name of the Student

Class

Roll No.

First Name

NILIN M.COM PART-I 3802 MADHAV SHETTY

Fathers Name : Surname :

Internal Assessment: Project 40 Marks Subject: STRATEGIC MANAGEMENT Topic For the Project: MARKETING ON AMUL. Marks Awarded DOCUMENTATION Internal Examiner (Out of 10 marks) External Examiner (Out of 10 marks) Presentation (Out of 10 marks) Viva and Interactions (Out of 10 marks) TOTAL MARKS (Out of 40 marks) Signature

AMUL
INDIAN DAIRY INDUSYTRY PROFILE

GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD

INDIAN DAIRY INDUSTRY A PROFILE

Indias modern dairy sector has expanded rapidly. India is recognized as a biggest and fastest growing market in the world for milk and milk products. India's dairy market is multi-layered. It's shaped like a pyramid with the base made up of a vast market for Chocolate. The bulk of the demand for Chocolate is among the Rural areas whose requirement is large. Indias dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West; so all the countries are looking at Indian dairy industry markets for exports. As per GATT agreement the export subsidy is reduced. Because of this India is expecting major changes in dairy industry of North America, Europe and Australia. It may also get some advantage in this situation. After reduction in subsidies given by other countries India would be able to compete with their products efficiently on price in international markets. At present India has a negligible export to international markets. Both public and private sector have contributed to the dairy industry growth in India. Government dairy distributes 90% of its milk in sachets or in containers while remaining 10% is marketed as butter, ghee etc. On contrary, private sector only markets 20% of milk and remaining 80% of milk is made into preparations suitable for exports. Amul have Chocolate as their main product. Though India is No. 1 in milk production, it is unfortunate that we are importing milk products from other countries. Since we do not have good technology for production of skim milk powder we are forced to import them from Europe and New Zealand.

COMPANY PROFILE
HISTORY OF THE COMPANY
The story of AMUL 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. Amul has become a symbol of the aspirations of millions of farmers; creating a pattern of liberation and self-reliance for every farmer to follow. The AMUL revolution started as awareness among the farmers grew and matured into a protest movement. 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. Private traders and middlemen controlled the marketing and distribution system for the milk. 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.

MARKETING STRATEGIES

DIVISION OF MARKETING DEPT

HEAD OFFICE ZONAL OFFICE DEPOT OFFICE CARRYING & FORWARDING AGENTS (C & F) WHOLESALE DEALERS RETAILERS CONSUMERS

MARKET RESEARCH
Market research is a method of getting facts to be used by the executives in formulating policies and plans. It enables a manufacturer or producer to know what the customers want, at what time and what quantity. It is an organized attempt to reduce market risk. He principle task of marketing research is to widen the basis of facts upon which business plans can be laid. Marketing research shows changes from time to time , if any.

AMUL conducts basically two types of market research. One is for products and another for the advertising conducted by the company. These research results serve as an input in future decision making. The company basically collects feedback from the customers, about the effectiveness of its advertising campaign and liking of the product especially in case of new products launched. It tries to find out by conducting a survey in a target market whether or not the product is liked by the consumers and ask for their suggestions for improvement. However AMUL is not much into conducting research before the launch of the product. Most of its research is done only once when the product is already launched in the market. It doesnt have any separate department for this purpose but its sales agents themselves do the work of research for the company. Yet the results are almost comparable to those conducted by professionals.

NEW PRODUCT DEVELOPMENT

New product development means development of original product or product improvement or modification or new brands through Research & Development efforts .New product development has become more difficult with the passage of time, due to shortage of new ideas, keen competition, government and environmental constraints .It is an expensive affair which involves lot of crucial decision making. A number of decisions are taken by AMUL with regards to launch plans and strategies for the new product , which are as under: Deciding the target customers Designing the promotional campaign Deciding the price

Market analysis Deciding the sales force to be employed Deciding the marketing mix Deciding whether to launch the product across the country or in the selected area Appointing distributors Conducting market research

PRODUCT LIFE CYCLE STAGES

A product passes through distinct stages during its life in market, each posing different challenges, opportunities and problems .Profits rise and fall at different stages of the product life cycle. There are four different stages of product life cycle, namely

1. INTRODUCTION STAGE 2. GROWTH STAGE 3. MATURITY STAGE 4. DECLINE STAGE

Different products of AMUL are in different stages in the product life cycle. Products like milk, butter, chocolate and cheese are in the maturity stage, while ice-creams , chocolates and shrikhand are still in the growth stage. On the other hand, products like milk powders, infant food, frozen food items and mix are in introduction stage. The company adopts aggressive selling techniques for those products which are in the introductory stage, while very less promotional programmes are carried out for those products which are in the growth or maturity stage.

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PRODUCT RANGE
A vast varieties of products are offered by AMUL which are as follows:
BREADSPREADS Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter CHEESE RANGE Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozarella) Cheese Amul Shredded Pizza Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese) Frozen and Tinned Utterly Delicious Pizza MITHAEE RANGE (ETHNIC SWEETS) Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix UHT MILK RANGE Amul Taaza 3% fat Milk Amul Gold 4.5% fat Milk Amul Slim-n-Trim 0% fat milk Amul Chocolate Milk Amul Fresh Cream Amul Snowcap Softy Mix Amul Taaza Double Toned Milk PURE GHEE Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee INFANT MILK RANGE Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 ( 6 months above) Amulspray Infant Milk Food

FRESH MILK Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardised Milk 3% fat Amul Smart Double Toned Milk 1.5% fat CURD PRODUCTS Amul Masti Dahi (fresh curd) Amul Butter Milk Amul Lassi AMUL ICECREAMS Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti) Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi) Utsav Range (Anjir, Roasted Almond) Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate) Nature's Treat CHOCOLATE & CONFECTIONERY Amul Milk Chocolate Amul Fruit & Nut Chocolate Amul Eclairs

PRODUCT MIX
A product mix consists of all the product lines and items that a particular seller offers for sale. A companys product mix has four important dimensions : width, length ,depth and consistency . Product mix width refers to how many different product lines the company carries. AMUL has 4 different product lines namely milk and milk products, chocolate and ice-cream, wet products and dry products. Product mix length refers to the total number of items in the mix . In the milk and milk products line there are 14 different products, while in ice-cream and chocolate range there are 21 products and in wet and dry products line there are 20 and 10 different products respectively

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MARKET SEGMENTATION
Market Segmentation is the act of sub dividing a market into distinct sets of customers who merit attention. Targeting these customers for marketing by evaluating,selecting and concentrating becomes a corollary to segmentation. Market segmentation assumes importance in the context of intense competition market is bombarded with. A market consists of buyers, and buyers differ in one or more ways. They may differ in their wants, resources, locations, products requirements. These variables have to be considered in the process of segmentation. There are different levels of market segmentation. They are mass marketing, segment marketing, niche marketing and micro marketing. Markets can be segmented on the geographical basis, demographical basis, psychological basis, behavioral basis and loyalty status. AMUL segments its market on the following basis: 1. GEOGRAPHICAL BASIS: This segmentation is done on the basis of the lifestyle of people in different regions and their tastes and consumption patterns which are distinct according to their geographical situation. AMUL has segmented India geographically into 5 zones. 2. DEMOGRAPHICAL BASIS: They have segmented its market on the basis of the socio-economic status of the customers. i.e. on the basis of their purchasing power and income level as follows: GROUPA: Consumers falling in this group are from higher social and economic class. GROUPB: Consumers falling in this group are from middle socio-economic class. GROUPC: Consumers falling in this group are from the lower middle class.

MARKET TARGETING
After segmenting the market, company evaluate the various segments and decides how many and which ones to target. Generally the market is targeted in three ways:UNDIFFERENTIATED MARKETING DIFFERENTIATED MARKETING CONCENTRATED MARKETING AMUL uses undifferentiated marketing strategy for targeting its customers as far as its milk and milk product line is concerned. While the company implements differentiated marketing strategy for targeting its customers for the other product lines that are ice creams and chocolates, wet products and dry products. Differentiated marketing means market coverage strategy in which a firm decides to target several market segments and designs separate offers for each. AMUL targets its customers according to the segments like geographic and demographic.

PACKAGING
Packing includes the activities of designing and producing the container for the product. Packaging has become the potent marketing tool. Well designed packages can create convenience and promotional value. Various factors contribute to packaging growing use as a marketing tool: SELF SERVICE CONSUMER AFFLUENCE COMPANY AND BRAND IMAGE INNOVATION OPPORTUNITY Packaging of the products of AMUL varies according to the nature of the product. As most of the products are perishable in nature special care is taken in packing them. MILK AND MILK PRODUCTS are packed in plastic bags or containers, while ICE-CREAMS AND CHOCLATES are packed in cardboard packing. The company maintains the standards prescribed by BIS, with regards to packing. These products are then packed in cartoons, for greater safety measures and for transporting them to the market.

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LABELING
Labeling printed information that appears on or with the package, is also a part of packaging. Labels may range from simples tags attached to products to complex graphics that are part of the package. Label identifies describes and promotes the product through attractive graphics. The label might carry only the brand name or great deal of information or pictures. Even if the seller prefers a simple label the law may require additional information. The labels of the products of AMUL are attractively designed. It contains all the information as per statutory requirements. Information like name of product, brand name, logo, date of packing & manufacturing, expiry date, price, code number, ingredients, storage and usage instructions, weight, manufacturers and marketers name, logo showing PURE VEG etc appears on the label of the products.

BRANDING
A brand is a name, term, sign, symbol or design or a combination of these used to identify a product or company. A trademark is a legally recognized brand. Branding has become so strong that today hardly anything goes unbranded. Today customers view a brand as an important part of the product and branding adds value to a product. Brand names help customers identify products that might benefit them and also tells the buyer something about the product quality. To the sellers brand name and trademark provides legal protection for unique product features that otherwise might be copied by the competitors and it also helps them to segment markets. A brand name is selected keeping in view the product and its benefits, the target market and proposed marketing strategies. Decisions about branding are taken at the Head Office at Anand. 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 languages of India. AMUL manufactures and markets its products under two brand names AMUL and SAGAR Information Technology (IT) has played a significant role in developing the Amul brand. The installation of 3000 Automatic Milk Collection System Units (AMCUS) at Village Societies to capture member information, milk fat content, the volume collected and amount payable to each member has proved invaluable in ensuring fairness and transparency throughout the whole Amul organization.

BRAND EQUITY
Brand equity refers to the value of a brand, based on the extent to which it has brand loyalty, brand name awareness, perceived quality, strong brand associations, and the other assets such as patents, trademarks and channel relationship. It is evaluated on the basis of brand assets which are:

1. BRAND AWARENESS: Awareness ultimately enhances brand equity.

AMUL enjoys very high brand awareness among its customers. According to the survey done by the company, brand awareness is as high as almost 90%. . 2. BRAND LOYALTY: Brand loyalty means the ability to retain the existing customers. AMUL is blessed with high brand loyalty among its customers. As it is one of the biggest market players it has proportionately larger group of loyal customer, who are in turn a medium of marketing/ advertising.

3. BRAND ASSOCIATIONS : Consumers associate the brand with certain

tangible and intangible attributes. Most of these associations are derived from brand identity and brand image. Customers associate AMULs brand with high quality standards and reasonable price.

4. BRAND IMAGE: Brand image is the meaning consumers give to a product

based on the perceived values it delivers. AMUL has created brand image by offering excellent quality products at reasonable price. Perfect distribution channel; continuous & effective advertising; use of different promotional tools; wide loyal market share, has contributed to create an excellent image in its trade operations.

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PRICING
The amount of money charged for a product or service or the sum of the values that consumers exchange for the benefit of having or using the product or service is called its price. A companys pricing decisions are affected by both internal factors like companys objectives, marketing mix strategy, cost and organizational considerations and external factors like nature of the market and demand, competition and other environmental elements. While deciding the price of its products AMUL takes into consideration all the below mentioned factors, this is true for all the products. Cost of raw materials Cost of labour Profit margin of distributors Various administrative and manufacturing overheads Prices of the competitors Demand and supply position in market Fair return to the farmers AMUL believes that the company with largest market share will enjoy lowest cost and highest long run profit to become the market leader. They set prices as low as possible.

PRICING APPROACH
AMUL employs different pricing policies for different products depending upon the life cycle stage of the product, market condition and the nature of product. In case if the product is newly launched in the market the company doesnt emphasize on the profit margin and keeps its prices as low as possible so as to penetrate in the new market. However in case of the already established products the company uses a mix of cost plus pricing approach and competitor based pricing approach i.e. it sets its prices keeping in view the cost of production, desired profit margin and prices of competitors products

DISTRIBUTION CHANNEL
A distribution channel is a set of interdependent organizations involved in the process of making a product or service available for the use of consumption by the consumer or business user. In other words, the channel decision is one which takes the product to the customer. The channel selected affects every other marketing decision and has a bearing on the future. Marketing channel decision is among the most decision that management faces. Before selecting a particular channel, every firm takes some factors into consideration and then only decides a particular channel. Decisions taken by AMUL are as under: 1. ANALYSING CONSUMERS NEEDS 2. SELECTING CHANNEL OBJECTIVES 3. TYPES OF INTERMEDIARIES 4. NUMBER OF INTERMEDIARIES 5. EVALUATING ALTERNATIVES Distribution channel can be described by the number of channels levels involved. Channel level is the level of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. The following are the different types of distribution channel that a firm may use: (i) ZERO-LEVEL CHANNEL: Manufacturer--------------- Consumer (ii) ONE-LEVEL CHANNEL: Manufacturer--- Retailer--- Consumer (iii) TWO-LEVEL CHANNEL: Manufacturer-- Wholesaler-- Retailer-- Consumer (iv) THREE-LEVEL CHANNEL: Manufacturer- Wholesaler- Agents- Retailer- Consumer

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AMUL has three-level distribution channel, i.e. it employs carry forward agents, wholesaler and retailers to carry its products to the final consumers. Till today, the major development on the distribution front is the development and alignment of four distribution highways - those of Fresh Products, Chilled Products, Frozen Products and Ambient Products. This is a significant achievement because it allows AMUL to develop synergies among all their product lines and to leverage these highways to introduce and distribute new products as per market demand. No other organization in India has been able to develop this kind of channel synergy so far. Another major initiative undertaken is the Time-based Military Technique (TMT) of distribution. This has been deployed to effect a nationally synchronized mass distribution of their products with the objective of achieving total channel penetration on a single day. After Distributor Salesmen in the previous year and Distributors in the year before last, it was the turn of the top Retailers across the country to participate in the Amul Yatra Programme which is a unique experiment conducted by Amul to bring their channel partners face to face with their cooperative institutions, activities, culture and achievements through a guided tour in and around Anand. A total of 114 Distributor Salesmen and 482 top retailers from across the country participated in the Amul Yatra this year. With the opening of several new milk markets and 3 separate Milk Sales Offices at Mumbai, New Delhi and Boisar, the number of Milk Area Delivery Agents has increased.

DECISION ABOUT THE CHANNEL MEMBER

Decisions about selecting a channel member is taken by the head office. Wholesalers are appointed by conducting the market survey , finding out the number of distributors available ,manpower and financial capabilities of each of them, market likelihood, infrastructural facilities etc. all this information is filled in a form which is sent to the head office where it moves from Marketing Manager to the General Manager who finally selects the one that suits the best to the company. Distributors have to give a bank guarantee or demand draft in against of the value of goods they want to purchase and have to make a payment for the same within four days of the dispatch of the order. The seller then forwards the goods to the retailers for which prices and norms of delivery are fixed by the head office. Both the retailers and wholesalers are required to maintain certain basic infrastructural facilities.

SALES FORCE MANAGEMENT

The organization of sales department is as under: ZONAL INCHARGE DEPOT INCHARGE EXECUTIVES F.S.R. (Field Sales Representative) PSM (Pilot Sales man) The total staff at AMUL is of nearly 750 people. The company conducts intensive training programme for its employees. The company sends any of its employees for training who will later train the other employees. Its not necessary that the person sent for training must be someone from the top or middle management, he can be any employee. The company treats all its employees equally. Various training programmes like TQM, Self management Programmes, etc conducted so far. The turnover and absenteeism ratio is almost negligible at AMUL which is the proof of the well functioning of the Human Resource Management. All the agents and sales force is giving a percentage of sales as commission.

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INTEGRATED MARKETING COMMUNICATIONS

ADVERTISING
Amul has had one of the most successful Ad campaigns in the country. Innovative and refreshing, Mauls Ads have, through the years, captured the imagination of the whole nation. Created in 1966 the topical, news-event-oriented ads are reportedly ready to enter the Guinness Book of World Records as the longest running advertising campaign ever. The reason for the unprecedented success of the Amul ads is because of their simplicity. These Ads do not involve any high flying or hi-tech special effects. They are very simple and bank solely on clean humor for their success. The team, which designs all the Ad campaigns for Amul, has been very focused on this point. As a result you dont see any radical deviations in their Ad campaigns and a ll the Ads are built along the same lines. And this too while maintaining the freshness that was present in the very first Ad 5 decades back. Another main reason for their success is the range of topics they cover in their Ads. The Ads always take a shot at the current hot topics in the news. Such has been the popularity of these campaigns that people go down to the nearest Amul hoarding just to see the latest Ad. People talk about it over lunch, in parties. It is hard to imagine the amount of brand equity the thumb sized girl polka dotted dress has achieved ever since she went up the Amul hoarding. All the ad campaigns of AMUL are carried out by the two Bombay based ad agencies namely DA CUNAS and ALUKA, which takes care of all its promotional campaigns. The company just briefs these agencies about the product and the rest is done by them i.e. creating message, deciding the media vehicle and timing, execution, etc.

PUBLIC RELATION TOOLS AND PROGRAMME

Public relation is another major mass promotion tool. It means building good relations with the companys concern parties by obtaining favorable publicity, building up a good corporate image and handling of unfavorable rumors, stories and events. Amul maintains healthy public relations with all concern parties. It does not have any department for this purpose but is carried out by corporate communication. It has also appointed F.S.R.s (Field Sales Representatives) for this purpose who looks after the complaints of the wholesalers and the retailers, they also contact the customers and try to find out if they have any complaint regarding the product and presents it before the appropriate authority. However there is no formal procedure to contact the authorities and any person wanting to communicate can directly approach the concerned person. The plant and the administrative office is kept open for public visits for two hours everyday .

SALES PROMOTION TOOLS AND PROGRAMMES

Sales promotion consists of short term incentives to encourage the purchase or sale of the product or service. It comprises of a variety of promotional tools as short term incentives. The purpose of sales promotion is to communicate about the product to the customer to enable the buying decision. It is felt that sales promotion helps break brand loyalty of consumers. Promotion with the help of price concessions is of short duration to make them effective. AMUL implements various sales promotion tools for wholesalers, retailers, sales force and customers. They offer 3% to 3.5% profit margin to stimulate its wholesaler and retailers. The sales persons are given a commission on a fixed percentage on their sales. The profit of the company reaches directly to the owners i.e. the farmers in the way of increase in price of milk, other technical assistance and subsidies. The company also introduces various schemes for the customers like more quantity at less price, free gifts and contests. The company had introduced a contest namely AMUL MAHARANI CONTEST in the previous year for promoting its products.

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INTERNATIONAL BUSINESS
AMUL stands out a star performer both in the domestic and international market. With the perfect mix of technical know how and business acumen the company has grown into a major of milk and milk products producing company. AMUL is Indias largest exporter of dairy products. It has been accorded a Trading House status. It has received the APEDA Award from Government of India for excellence in dairy product exports for the last 8 years. AMUL has its market in almost 20 countries which include USA, Iraq, Kuwait, Russia, Nepal, Qatar, Muscat, Singapore, Saudi Arabia, Sri Lanka, Bangladesh, Gambia, Uganda, Madagaskar, Tanzania, U.A.E., Bahrain. Major export products of AMUL are: Consumer Packs AMUL PURE GHEE AMUL BUTTER AMUL SHRIKHAND AMUL FULL CREAM POWDER AMUL MITHAEE GULAB JAMUN AMUL SKIMMED MILK POWDER NUTRAMUL BROWN BEVERAGE AMULSPRAY INFANT MILK FOOD AMUL CHEESE AMUL MALAI PANEER AMUL UHT MILK (LONG LIFE) AMUL FRESH CREAM

Bulk Packs AMUL SKIMMED MILK POWDER AMUL FULL CREAM MILK POWDER

INTERNATIONAL DISTRIBUTION STRATEGIES

The company has appointed special carry forward agents for distributing its products in the international market .It has rented cold storages in various countries to store its products from where they are distributed as per orders. Although the distribution network for international market is not so well knitted as in case of domestic market, it has been successful in maintaining a satisfactory network that ensures smooth functioning.

INTERNATIONAL PRICING STRATEGIES

While deciding the prices for international market the company takes into consideration the prices of the competitors , production cost , distribution cost for international market , taxes and duties to be paid ,etc. However the company tries not to have much difference in prices in National and the International markets.

PRODUCT VARIATIONS
There are no variations in the basic products that the company offers in National and International markets, except for the fact that the company has to maintain the quality standards as per the regulations of the respective countries. Not all the products manufactured are yet available in International market because of the difference in preferences and consumption pattern of the people in various countries.

EXPORT POTENTIAL
India has the potential to become one of the leading players in milk and milk product exports. Location advantage: India is located amidst major milk deficit countries in Asia and Africa. Major importers of milk and milk products are Bangladesh, China, Hong
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Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located close to India. Low Cost of Production: Milk production is scale insensitive and labor intensive. Due to low labor cost, cost of production of milk is significantly lower in India.

CONCERNS IN EXPORT COMPETITIVENESS ARE :

Quality: Significant investment has to be made in milk procurement, equipments, chilling and refrigeration facilities. Also, training has to be imparted to improve the quality to bring it up to international standards. Productivity: To have an exportable surplus in the long-term and also to maintain cost competitiveness, it is imperative to improve productivity of Indian cattle. There is a vast market for the export of traditional milk products such as ghee, paneer, shrikhand, rasgolas and other ethnic sweets to the large number of Indians scattered all over the world

TOTAL QUALITY MANAGEMENT

In 1994 AMUL had embarked on the Total Quality Management and in 1999 received the Rajiv Gandhi National Quality Award for the year 1999, Indias premier recognition for quality. Continuing to learn their employees have consistently striven to maintain improved product and service quality at each stage of the value chain. More than 25000 Kaizenssmall improvements in work areas-were made by employees in different areas like cost cutting, time saving and process improvement. To ensure minimum wastage and maximum productivity and quality, house keeping initiatives have been zealously pursued at the Federation offices, Warehouses and Distributor points. Learning from employing Total Quality Management principles have been cascaded to both the member dairies as well as distribution channel members. Workshops on Statistical Quality Control have been conducted across the member dairies to achieve total quality in the production process. On of AMULs most remarkable achievements has been creation of more than 225 Quality Circles across the length and breadth of the country. The federations wholesale dealers meet every month in these quality circles and discuss and resolve distribution problems and improve their distribution process. Amul continues its commitment on improving the competency of its professional managers through its Competency Based Training Programmes which builds both generic and functional skills through in-house, customized training programmes.

REFERENCES
Principles of Marketing -- Philip Kotler & Gary Armstrong, 2000. Marketing Management -- Philip Kotler, 2000. Product managementS.A.Chunawala, 1999. Research Methodology - - C.R. Kothari www.amul..com www.gcmmf.org www.indiandairy.com www.nddb.com

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