To study and analyse the consumer buying behaviour towards Amul milk. .

Anand Milk Union Limited or Amul is an Indian dairy employer, based at Anand within the
state of Gujarat.
Formed in 1948, it's miles a cooperative logo managed by way of a cooperative frame, the
Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is together
owned by using three.6 million milk producers in Gujarat.[3]

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

The white revolution turned into spearheaded by using Tribhuvandas Patel under the steerage
of Sardar Patel. As a result, Kaira District Milk Union Limited changed into born in 1946.
Tribhuvandas became the founding chairman of the agency and led it until his loss of life. He
employed Dr. Verghese Kurien 3 years after the white revolution. He convinced Dr. Kurien to
live and assist with the mission

Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited
with the fulfillment of Amul's advertising. Amul has grow to be the most important meals
emblem in India and has ventured into markets foreign places.

History of Amul
Amul-cooperative registered on 14 December 1946 as a response to the exploitation of
marginal milk producers by traders or agents of the only existing dairy, the Polson dairy, in the
small city distances to deliver milk, which often went sour in summer, to Polson. The prices of
milk were arbitrarily determined. The government had given monopoly rights to Polson to
collect milk from Kaira and supply it to Bombay city.
Angered by the unfair trade practices, the farmers of Kaira approached Sardar Vallabhbhai
Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to
form a cooperative (Kaira District Co-operative Milk Producers' Union) and supply milk
directly to the Bombay Milk Scheme instead of Polson (who did the same but gave them low
prices). He sent Morarji Desai to organise the farmers. In 1946, the milk farmers of the area
went on a strike which led to the setting up of the cooperative to collect and process
milk.[7] Milk collection was decentralized, as most producers were marginal farmers who could
deliver, at most, 1–2 litres of milk per day. Cooperatives were formed for each village,
too.[9] By June 1948, the KDCMPUL had started pasteurizing milk for the 'Bombay Milk
Scheme'. Under the selfless leadership of Tribhuvandas Patel, in 1973, Amul celebrated
its 25th Anniversary with Morarji Desai, Maniben Patel and Verghese Kurien.
The cooperative was further developed and managed by Dr. Verghese Kurien with H.M.
Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk (for the first time
in the world) and a little later, with Kurien's help, making it on a commercial scale,[10] led to
the first modern dairy of the cooperative at Anand, which would compete against established
players in the market. Kurien's brother-in-law K.M. Philip sensitized Kurien to the needs of
attending to the finer points of marketing, including the creation and popularization of a brand.

1|Page
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to
Anand's neighbourhood in Gujarat. Within a short span, five unions in other districts –
Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set up, following the approach
sometimes described as the Anand pattern.[7]
In 1970, initiated White Revolution of India, as it help create, Gujarat Co-operative Milk
Marketing Federation Ltd., which now overlooks Amul, in 1973,[11] and today, it is the second
best dairy in India.[11] To combine forces and expand the market while saving on advertising
and avoid competing against each other, the GCMMF, an apex marketing body of these district
cooperatives, was set up in 1973. The Kaira Union, which had the brand name Amul with it
since 1955, transferred it to GCMMF.[12]
In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.[13]
Technological developments at Amul have subsequently spread to other parts of India.
The GCMMF is the largest food products marketing organisation of India. It is the apex
organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing organisation for
products under the brand name of Amul and Sagar. Over the last five and a half decades, dairy
cooperatives in Gujarat have created an economic network that links more than 3.1 million
village milk products with millions of consumers in India. Gujarat Cooperative Milk Marketing
Federation Ltd.
Importance is also important for industries.
On September 30, 2018, Prime Minister Narendra Modi inaugurated Amul's chocolate plant in
Mogar, Anand near their headquarters.
Over seven decades ago the life of a farmer in Kaira was very much like that of farmers
anywhere else in India. His income was derived almost entirely from seasonal crops. Many
poor farmers faced starvation during off-seasons. Their income from milch buffaloes was
undependable. The milk marketing system was controlled by contractors and middlemen. As
milk is perishable, farmers were compelled to sell their milk for whatever they were offered.
Often they had to sell cream and ghee at a throwaway price.

They were in general illiterate. But they could see that the system under which contractors
could buy their produce at a low price and arrange to sell it at huge profits was just not fair.
This became more noticeable when the Government of Bombay started the Bombay Milk
Scheme in 1945. Milk had to be transported 427 kilometers, from Anand to Bombay. This
could be done only if milk was pasteurized in Anand.

After preliminary trials, the Government of Bombay entered into an agreement with Polsons
Limited to supply milk from Anand to Bombay on a regular basis. The arrangement was highly
satisfactory to all concerned – except the farmers. The Government found it profitable; Polsons
kept a good margin. Milk contractors took the biggest cut. No one had taken the trouble to fix
the price of milk to be paid to the producers. Thus under the Bombay Milk Scheme the farmers
of Kaira District were no better off ever before. They were still at the mercy of milk contractors.
They had to sell their milk at a price the contractors fixed. The discontent of the farmers grew.

2|Page
They went in deputation to Sardar Patel, who had advocated farmers’ co-operatives as early as
1942

Sardar Patel reiterated his advice that they should market their milk through a co-operative
society of their own. This co-operative should have its own pasteurization plant. His advice
was that the farmers should demand permission to set up such a co-operative. If their demand
was rejected, they should refuse to sell their milk to middlemen.

Sardar Patel pointed out that in undertaking such a strike there should be some losses to the
farmers as they would not be able to sell their milk for some time. If they were prepared to put
up with the loss, he was prepared to lead them. The farmers’ deputation readily accepted his
proposal.

Sardar then sent his trusted deputy, Mr. Morarjibhai Desai, to Kaira District to organize milk
co-operative – and a milk strike if necessary. Mr. Desai held a meeting in Samarkha village on
January 4, 1946. It was resolved that milk producers’ co-operative societies should be
organized in each village of Kaira District to collect milk from their member-farmers. All the
milk societies would federate into a Union which would own milk processing facilities. The
Government should undertake to buy milk from the Union. If this wasn’t done, the farmers
would refuse to sell milk to any milk contractor in Kaira District.

The Government turned down the demand. The farmers called a ‘milk strike’. It lasted 15 days.
Not a drop of milk was sold to the milk merchants. No milk reached Bombay from Anand, and
the Bombay Milk Scheme almost collapsed. After 15 days the milk commissioner of Bombay,
an Englishman, and his deputy visited Anand, assessed the situation and accepted the farmers’
demand.

This marked the beginning of the Kaira District Co-operative Milk Producers’ Union Limited,
Anand. It was formally registered on December 14, 1946. Its objective was to provide proper
marketing facilities for the milk producers of the district. The Union began pasteurizing milk
in June 1948, for the Bombay Milk Scheme – just a handful of farmers in two village co-
operative societies producing about 250 liters a day.

An assured market proved a great incentive to the milk producers in the district. By the end of
1948, 432 farmers had joined village societies, and the quantity of milk handled by the Union
had increased to 5000 liters a day. In the early stages, rapid growth brought in its wake serious
problems. Their solution provided the stimulus for further growth. For example, as the co-
operative movement spread in the district, it was found that the Bombay Milk Scheme could
not absorb the extra milk collected by the Union in winter, when buffaloes yielded an average
of 2.5 times their summer yield. Thus by 1953, the farmer-members had no regular market for
the extra milk produced in winter. They were again forced to sell a large surplus at low rate to
middlemen.

The only remedy was to set up a plant to process the extra milk into products like butter and
milk powder. The logic of this step was readily accepted by the Government of Bombay and the
Government of India, except for a few doubting Thomases. The government of India helped the

3|Page
Union to get financial help from UNICEF and assistance from the Government of New Zealand
under the Colombo Plan. Technical aid was provided by F.A.O. A Rs.50 – lakh factory to
process milk powder and butter was blueprinted. Its foundation stone was laid by the then
President of India the late Dr. Rajendra Prasad on November 15, 1954. The project was
completed by October 31, 1955, on which day the late Pandit Jawaharlal Nehru, the then Prime
Minister of India, declared it open. The new dairy provided a further fillip to the co-operative
movement among milk producers. The union was thus enabled to organize more village co-
operative societies and to handle more and more milk each year. This event also brought a
breakthrough in dairy technology as the products were made processing buffalo milk for the first
time in the world. Kaira Union introduced the brand “Amul” for marketing its product range.
The word “Amul” is derived from Sanskrit word ‘Amulya’ which means ‘priceless’ or precious’.
In the subsequent years Amul made cheese and baby food on a large commercial scale again
processing buffalo milk creating a history in the world.

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

UHT products and impact

Over the years Amul has been witnessing growth in this portfolio, with the segment growing
at 53%,long life UHT products for urban populations, like Amul Taaza, which are packed
in Tetra Pak cartons, which undergo UHT treatment to remove all harmful micro-organisms
while retaining the nutrition in the milk. Amul sells around 4,00,000-5,00,000 litres of UHT
milk and other value added products per day and forecasts this demand to continue growing at
25%. The UHT products have enabled Amul to position itself as the market leader in packaged
milk segment without the need of maintaining cold supply chains.
In 1966, Amul hired Sylvester da Cunha, the managing director of the advertising agency as to
design an ad campaign for Amul Butter. daCunha designed a campaign as series of hoardings
with topical ads, relating to day-to-day issues.[17] It was popular and earned a Guinness world
record for the longest running ad campaign in the world. In the 1980s, cartoon artist Kumar
Morey and script writer Bharat Dabholkar had been involved with sketching the Amul ads; the
latter rejected the trend of using celebrities in advertisement campaigns. Dabholkar credited

4|Page
chairman Verghese Kurien with creating a free atmosphere that fostered the development of
the ads.
Despite encountering political pressure on several occasions, daCunha's agency has made it a
policy of not backing down. Some of the more controversial Amul ads include one commenting
on the Naxalite uprising in West Bengal, on the Indian Airlines employees strike, and one
depicting the Amul girl wearing a Gandhi cap.
In 2013, Amul tweeted a picture featuring the Amul butter girl, implying that 'freedom of
choice' died in '2013', in opposition to the Supreme Court of India overruling the judgment of
Delhi High Court and criminalising homosexuality again.
On 17 October 2016, Amul butter girl celebrated 50 years when she first appeared in the topical
ad titled "Thoroughbread". The ad showed a jockey holding a slice of bread during the horse
race season in 1966. The impish Amul girl had appeared for the first time even before that,
with Eustace Fernandez showed her offering bedtime prayers with a wink and a lick of lips,
saying "Give us this day our daily bread: with Amul butter.
The establishment of Amul is known as White Revolution
The White Revolution inspired the notable Indian film-maker Shyam Benegal to base his
film Manthan (1976) on it. The film was financed by over five lakh (half a million) rural
farmers in Gujarat who contributed Rs 2 each to its budget. Upon its release, these farmers
went in truckloads to watch 'their' film, making it a commercial success. Manthanwas chosen
for the 1977 National Film Award for Best Feature Film in Hindi.

DIFFERENT PRODUCT OF AMUL.

It consists of wide ranges of products which are outlined below:

 Amul Bread Spreads Range

 Amul Beverage Range / Milk Drinks

 Amul Powder Milk Range

 Amul PRO

 Amul Fresh Milk Range

 Amul Cheese Range

 Amul Cooking Range

 Amul Dhai Range

5|Page
  Amul Mithai / Desserts Range

 Amul Health Drink

 Amul Chocolates

 Amul Icecreams

Amul Bread Spreads Ranges

Amul has varieties of Bread Spreads ranges and are preferred by many consumers on a daily
basis. These are outlined below.

Amul Butter

Amul Butter is made up of pure milk fat. It consists of 100g, 500g, 50g, 20g, and 8.1g
packing. It can be eaten with bread, paratha, roti, nans, and sandwiches.

Amul Lite
Amul Lite is a low cholesterol, low calorie and low fat bread spread. It is available in 100g,
500g, and 200g packing. It is been used for topping on parathas, pav-bhaji, and also for
preparation of cakes.

Delicious Table Margarine

Delicious Table Margarine is the substitute of butter. Margarine is prepared from vegetable
oils and fats. It contains zero cholesterol and fortified with vitamin A & D. 100g, 500g, 200g
tub & Single serve pack are available.

Amul Kool Milk Shaake

Amul Kool Millk Shaake comes with four awesome flavours which are Banana, Mango,
Strawberry and Badam. The price of this is Rs. 22 for 220 ml can. These are also sold in tetra
pack in three flavours i.e. Mango, Strawberry and Banana. The price of this is Rs 15 for 180
ml tetra brick. It is rich in nutrients and is the healthiest drink against any other soft drinks.

Amul Kool
Amul Kool is very tasty and healthy drink and come with five flavour i.e Kesar, Elaichi,
Rose, Mango, and Strawberry. Available in 200ml Glass Bottle, 200ml Tetra Pack, 250ml
Can, and 1 Litre Tetra Pack.

6|Page
Amul Kool Café
Amul Kool Café is a tonned milk flavoured with coffee. It is very good and convenient for
parties, picnics, etc. Available in 200ml Glass Bottle, 200ml Tetra Pack, 250ml Can.

Amul Kool KoKo

Amul Kool Koko is a Chocolate Flavour Milk. Available in 200 ml Glass Bottle, 250 ml Can,
200 ml Tetra pack.
Nutramul Energy Drink

This is an energy drink and available in 200ml Glass Bottle.

Amul Cooking Range

amul has varieties of cooking ranges. Ghee & Butter is commonly used and is preferred by
many consumers on a daily basis and is used mainly for cooking, making sweets, garnishing
etc. It can be spread with bread, paratha, roti, etc.

Vision of amul milk industry :

Vision “Liberate our farmers from economic oppression and lead them to prosperity.”

Mission :

Mission 2020 :- dairy co operatives of Gujarat turnover of Rs.27000 crores by the year 2020 .

Strategy of Amul:

 Uses automated milk collection system units for collection of milk.

 Uses data analysis software for forecasting milk production and increasing
productivity
 One of the first five Indian organizations to have a Web presence
 Has made IT education compulsory for all its employees .
 Members: 13 district cooperative milk producers'
 Union No. of Producer Members: 3 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 liters
 Milk collection (Daily Average 2006-07): 6.5 million liters Cattle feed manufacturing
capacity: 2640Mts per day Milk Drying capacity: 594Mts.Per day.

7|Page
:

STRENGTH

 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

 . Lack of control over yield : Theoretically, there is little control over milk yield.
 Logistics of procurement : Woes of bad roads and inadequate transportation facility
make milk procurement problematic.
 Problematic distribution : lack of proper milk and milk product distribution channel.
 Competition: With so many newcomers entering this industry, competition is
becoming tougher day by day.

Opportunities

 Opportunities Value addition: There is a phenomenal scope for innovations in

product development, packaging and presentation. Steps should be taken to
introduce value-added products like shrikhand , ice creams , paneer , khoa ,
flavored milk , dairy sweets, etc 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 .

 Export potential: Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the
Middle East .

8|Page
 Threats

 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.

Challenge at the small holder

 Challenge at the small holder level Inadequate feeding of animals More disease
incidence Low genetic potential of animals Lack of chilling capacities High
production cost Delayed and irregular payment .

Challenges at collection level

 Challenges at collection level Milk base consisting of small holder. Involvement of

too many intermediaries Gaps in information Absence of screening system Lack of
infrastructure Manipulation of the quality of milk by farmer .

Challenges at processing level

 Challenges at processing level Seasonality of production and fluctuating supply

Absence of quality standard Adulteration and food safety Lack of trained and skilled
workers .

Challenges at storage and logistics

 Challenges at storage and logistics level Lack of cold storage facilities Lack of
transport facilities

Challenges for marketing

9|Page
  Challenges for marketing Majority of the market is still unorganised Acceptiblity of
the consumer base Less penetration to the rural market Lack of transparent milking
pricing system .

 AMUL AMUL means " priceless " in Sanskrit. The brand name "Amul," from the
Sanskrit "Amoolya," was suggested by a quality control expert in Anand. Amul
products have been in use in millions of homes since 1946. Amul a leading food
brand in India with a Turnover: Rs. 6711 crore in 2008-09. P.G.Bhatol is the present
chairman and R.S.Sodhi is the present Chief GM of AMUL.

Vision

 Vision “Liberate our farmers from economic oppression and lead them to prosperity.

Mission

:
 Mission Mission2020 :- dairy co operatives of Gujarat turnover of Rs.27000 crores by
the year 2020 .

10 | P a g e
The silent features

Ghee is very healthy for our Body. 1 spoon a day of Ghee keeps you fit & strong. Ghee can
be consumed for better digestion. Ghee stimulates muscle movements, strengthens the sense
organ, nourishes the skin and improves complexion. Ghee is good source of energy and
provides vitality to human body.

Amul milk analyses

To study and analyse the consumer buying behaviour towards amul milk .Dairy sector is one
of the most important and biggest sector in India. The country produces around 3,800 LLPD
of milk, accounting for a fifth of the global output. About 40% of this is retained by producers
(farmers) for household consumption; another 41% share is with the unorganized segment.
Only 19% is procured, processed and sold through by organized dairies currently. The
processed milk consumption is growing and people are shifting from traditional milk buying
practices to branded milk purchase. In India, people are not that much aware about the
condition called Lactose Intolerance, despite of being ones. Almost 60 to 70 per cent of people
in India are lactose intolerant. The capacity to absorb milk naturally decreases as we grow. And
the problem shows up in the mid-30s as functional gastrointestinal problems like irritable bowel
syndrome (IBS) and gastro-esophagal reflux disease (GERD). While IBS is known to affect
about 5% Indians, an estimated 8-20% people suffer from GERD Researchers studied regional
variations in lactose mal-absorption and found it more rampant in South Indians. While 82%
people in southern states were affected, 66% north Indians complained of the problem. The
lower frequency in the north Indians is apparently due to the fact that they are descendants of
the Aryans who have been dairying for long and are known to be lactose tolerant. So, the
genetic mixing is responsible for greater lactose tolerance amongst them, according to the study
in the Indian perspective by Dr. Uday C Ghoshal, a professor in the department of
gastroenterology at Sanjay Gandhi Post Graduate Institute of Medical Sciences .
Besides the large population of milk mal-absorbers, the study found Indians more sensitive
than their European or American counterparts. "Globally, the gold standard to judge milk
intolerance is based on 50 grams of lactose. The level of problem a European faces at 50 gm.
is seen in Indians with half the lactose," stated Dr. Ghoshal, adding that intolerance combined
with stress and fast food culture was aggravating the problem. People who have lactose
intolerance, a lactase deficiency or hypolactasia, have gastrointestinal symptoms like
abdominal bloating and cramps, flatulence, diarrhoea, nausea, borborygmi (rumbling stomach),
or vomiting when they consume dairy products containing lactose. Commercial milk producers
add lactase to lactose-free milk so that you can drink it without experiencing gastrointestinal
symptoms. Lactase makes the milk taste sweeter.

11 | P a g e
To render the lactase enzyme inactive, manufacturers ultra-pasteurize the milk, which can
change the consistency and taste. Ultra-pasteurization also extends the shelf life.
Some beverages that advertise themselves as lactose free milk don't contain any cow's milk.
Instead, manufacturers use soybeans, rice, almonds or other foods to produce a fluid that they
call milk. This type of lactose-free milk does not have the same benefits of cow's milk, such as
high calcium content. In some cases, manufacturers add vitamin D and calcium to this type of
milk to produce a beverage similar in nutrition to milk but without any lactose risks. Unlike
other countries, we didn’t have specific lactose digested products or specific lactose free
products in domestic market until before sometime. Then GCMMF has launched Amul Lactose
Free Milk in the Indian market. The study entitled “A study to understand consumer buying
behavior towards Amul Lactose Free Milk in selected cities of Gujarat” in Gujarat Cooperative
Milk Marketing Federation Ltd. (GCMMF), which is India's largest food product marketing
organization with annual turnover (2014-15) US$ 3.4 billion. Its daily milk procurement is
approx. 14.85 million lit per day from 18,536 village milk cooperative societies, 17 member
unions covering 31 districts, and 3.37 million milk producer members. By joining hands with
Mother Dairy, GCMMF has launched Amul Lactose Free Milk in India, which if first of its
kind in India. The study has covered three cities of Gujarat, namely Anand, Vadodara and
Ahmedabad; with total sample size of 300, from each city 100 respondents were selected
conveniently to collect the data.
The brand name "Amul," from the Sanskrit "Amoolya," (meaning Precious)was suggested by
a quality control expert in Anand.), formed in 1946, is adairy cooperative in India. It is a brand
name managed by an apexcooperative organization, Gujarat Co-operative Milk Marketing
FederationLtd. (GCMMF), which today is jointly owned by some 2.8 million milkproducers in
Gujarat, India.AMUL is based in Anand, Gujarat and has been an example of a co-
operativeorganization's success in the long term. It is one of the best examples of co-operative
achievement in the developing economy. "Anyone who has seen «the dairy cooperatives in the
state of Gujarat, especially the highlysuccessful one known as AMUL, will naturally wonder
what combination of influences and incentives is needed to multiply such a model a
thousandtimes over in developing regions everywhere."The Amul Pattern hasestablished itself
as a uniquely appropriate model for rural development.Amul has spurred the White Revolution
of India, which has made India thelargest producer of milk and milk products in the world. It is
also the world'sbiggest vegetarian cheese brand. Amul is the largest food brand in India
andworld's Largest Pouched Milk Brand with an annual turnover of US $1050million
(2006±07). Currently Unions making up GCMMF have 2.8 millionproducer members with
milk collection average of 10.16 million liters perday. Besides India, Amul has
entered overseas markets such as Mauritius,UAE, USA, Bangladesh, Australia, China,
Singapore, Hong Kong and a fewSouth African countries.
DrVerghese Kurien
former chairman of theGCMMF, is recognized as a key person behind the success of Amul.
Plant layout is the overall arrangement of the machine tools, handlingequipments, storeroom
and other various accessories required for facilitatingproduction in a factory.
These arrangements are pre-planned with theresults that the building has been constructed to
fit a layout of a givenprocess.AMUL plant is indigenously worked out with facilitation of

12 | P a g e
various productionprocesses and production of multi products under one plant. The total plot
isnearly about
2.27 kms

Separate buildings are provided with requiredarrangements of machine tools handling and
computers connection throughthe control room to fit for varying product-manufacturing
departments.The plant is engaged in producing milk, ice creams, milk powder and ghee.Entire
department is uniquely provided with facilities for the processing eachproduct. There are 4
production departments and packaging departments .
Dairy is a place where handling of milk and milk products is done
andt e c h n o l o g y r e f e r s t o t h e a p p l i c a t i o n o f s c i e n t i f i c k n o w l e d g e f o r
p r a c t i c a l purposes. Dairy technology has been defined as that branch of dairy
science,which deals with the processing of milk and the manufacture of milk productson an
industrial scale.The dairy sector in the India has shown remarkable development in
the pastdecade and India has now become one of the largest producers of milk
andvalue-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 anaggregate processing capacity of 5.8 million litres per day. In
addition to these processing plants, 123 Government and 33 co-operatives milk chilling
centersoperate in the State.Also India today is the lowest cost producer of per litre of
milk in theworld, at 27 cents, compared with the U.S' 63 cents, and Japan’s $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
qualitystandard certificates from the authorities. This will help them in marketing
their products in foreign countries in processed form.The urban market for milk products is expected
to grow at an accelerated paceo f a r o u n d 3 3 % p e r a n n u m t o a r o u n d R s . 4 3 , 5 0 0
c r o r e s b y y e a r 2 0 0 5 . growth is going to come from the greater emphasis on
the processed foodssector and also by increase in the conversion of milk into
milk products. By2005, 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.

HE THREE-TIER “AMUL MODEL”

The Amul Model is a three-tier cooperative structure. This structure consistsof a Dairy
Cooperative Society at the village level affiliated to a Milk Union atthe District level, which in
turn is further, federated into a Milk Federation atthe State level. The above three-tier structure
was set-up in order todelegate the various functions, milk collection is done at the Village
DairySociety, Milk Procurement & Processing at the District Milk Union and Milk& Milk
Products Marketing at the State Milk Federation. This helps ineliminating not only internal
competition but also ensuring that economies of scale are achieved. As the above structure was
first evolved at Amul inGujarat and thereafter replicated all over the country under the
OperationFlood Programme, it is known as the Amul Model or Anand Pattern of
DairyCooperatives.

13 | P a g e
Difference between amul , nestle , mother dairy

India has the largest and fastest milk and milk products market in the world. If the growth
of this sector is extrapolated, it is observed that in the next ten years production will
increase to about three times today’s numbers. India produces milk with the lowest cost at
around 40 cents per litre. Amul, Nestle, Britannia, Mother Dairy are some of the major
companies that produce milk and milk products in India. However, factors such as lack of
adequate amount of fodder and unavailability of veterinary doctors have reduced the yield
of milk per animal. This article compares India’s three popular dairy organisations Amul,
Nestle and Mother Dairy.

Nestle S.A. (Switzerland) runs its subsidiary in India with the name Nestle India. It has
setup seven factories throughout the country. Apart from India, Nestle S.A. operates in
eighty five other countries. Nestle originated in 1905 and is named after Henri Nestle. It
grew rapidly during World War I. Amul is based in Gujarat. It’s basically Gujarat co -
operative milk marketing federation (GCMMF). It has won various national awards which
includes the Rajiv Gandhi National Quality Award and the Ramakrishna National Quality
Award. Mother Dairy is owned by National Dairy Development Board of India (NDDB).
It was established in 1974 and is an ISO certified organisation.

Nestle offers its products in four categories viz. Milk products and nutrition, prepared
dishes and cooking aids, beverages, and chocolates and confectionery products. Milkmaid,
Nescafe, Maggie, everyday, Polo, Kit-Kat are some of its very famous brands. It has a total
of six thousand brands. Amul delivers milk, butter, ghee, ice creams, cheese and so on. Its
turnover was 67.11 billion Indian Rupees in 2008-09. It has over 50 products on the Indian
market. Mother Dairy, on the other hand, in addition to its milk products, offers the Dhaara
- range of edible oils and Safal – range of fresh fruit juices. It has around two hundred
thousand outlets across the India.

14 | P a g e
In 2009, Nestle recorded a net profit of CHF 10.43 billion. A major portion of this came
from Europe and America, with 16% coming from Asia. Mother Dairy markets around 2.8
million litres of milk everyday with a market share of 66% percent in the branded sector.
It has its main market in Delhi, Hyderabad, Saurashtra and Mumbai. Amul has milk
handling capacity of 11.2 million litres per day and recorded a sales turnover of $1,504
million (US) in 2008-09.

Amul

 Gujarat co-operative milk marketing federation (GCMMF) owns Amul.

 Rajiv Gandhi National Quality Award and Ramakrishna National Quality Award
winner.
 Amul delivers milk, butter, ghee, ice creams, cheese etc. and has over 50 products.
 Amul has milk handling capacity of 11.2 million litres per day

Nestle

 Nestle S.A. (Switzerland) runs its subsidiary in India with the name Nestle India.
 It has a total of six thousand brands.
 In 2009 Nestle recorded a net profit of CHF 10.43 billion, 16% of which was from
Asia.

Mother Dairy

 Mother dairy is owned by National Dairy Development Board of India (NDDB).

 It was established in 1974 and is an ISO certified organisation.
 Also offers Dhaara - range of edible oils and Safal – range of fresh fruit juices.
 Mother dairy markets around 2.8 million litres of milk everyday.

15 | P a g e
A partnership between Amul, the world’s largest dairy cooperative, and the knowledge and
experience of ABB is helping India’s farmers keep pace with accelerating demand for milk
products that have been a force in improving quality of life and boosting rural economic growth
for decades. Amul, based in western India, has lifted its capacity to about 14 million liters daily,
up significantly in just a few years. That’s providing opportunity for the cooperative’s three
million milk producers to lift output and meet increasing demand for healthy, nutritious food.
Farmers come to deposit milk. Source: World Bank Report Amul’s challenge is preserving
millions of liters of perishable milk in a hot tropical country collected from dispersed villages
and households. This requires intensive logistics planning to gather milk, after which ABB’s
advanced automation keeps Amul’s operations running smoothly - and lays the groundwork
for future growth.
ABB was initially brought in six years ago to upgrade automation and control systems at
Amul’s Dairy III at Anand, Gujarat. Not only was there minimal downtime for Amul’s
operations amid the transition to ABB’s 800xA control systems, but the systems’ adaptability
ensured the cooperative’s expansion in 2012 and 2013 was seamless, keeping precious milk
from going to waste.
“Amul has championed the application of leading edge technologies,” said T R Ravishankar,
ABB’s Control Technologies Business Unit Manager. “The successful deployment of our
flexible solutions in 2008, with a good track record, led Amul to opt for more ABB solutions
as it expanded.”

Co-op stimulated India’s ‘White Revolution’ Amul has a storied records, having been created
in 1946 in reaction to the exploitation of marginal milk producers by way of buyers from what
became then the place’s handiest dairy.

16 | P a g e
Its work inspired India’s "White Revolution,” enhancing lives of rural families and imparting
a livelihood for marginal farmers or families with two milk animals or much less, in addition
to the landless.
The unfailing perseverance of leaders like Dr. Verghese Kurien, its first chief government
officer, and H. M. Dalaya, who helped spur its technological improvements, became Amul into
the co-op it's miles these days, with an annual turnover of greater than $three billion.
Located in India’s “Milk Capital,” Amul has helped the country grow to be the world’s No. 1
milk manufacturer, with production doubling to a few 130 million lots annually over the past
two many years.

With speedy increase, however, the cooperative’s embrace of era has been key to a hit
aggregation, processing and distribution of a time-sensitive item like milk after it’s gathered
from such a lot of producers.
That’s where ABB comes in: Its 800xA manipulate structures, relied upon broadly in industries
which includes food and beverage, oil and fuel and mining, offer Amul with intuitive
automation and renovation answers that ensure a hygienic, green surroundings for processing
and maintaining milk’s goodness.
For example, ABB offers automation for milk reception, pasteurization and for monitoring and
manage at the same time as moving milk, cream and butter milk from reception tanks to
packaging machines at Amul’s Dairy III. Automation determines percentage of milk, cream
fats, and non-fats solids, while queue-handling guarantees spark off refilling of silos to
maintain continuity without delays.
And as part of Amul’s incorporated plant structures, ABB developed a customized cleaning-
in-vicinity (CIP) way to sanitize device including the silos, milk and cream pasteurizers, cream
tanks, dispatch traces and butter-making machines.

At 30,000 liters of milk per hour, a single drop of rancid milk or any other agent could curdle
milk from several dozen herders. The CIP solution provides efficient filtration, automatic de-
clogging, high and medium pressure cleaning with multiple repetitions, while reducing loss of
milk and limiting need for cleaning agents.
Under demanding production schedules, ABB upgraded Amul’s automation system to an
800xA solution to guide and monitor production - all in less than two hours. This was achieved
only after months of on-ground testing, customization and adaptions from ABB, retaining
familiar, trusted features while adding convenient new ones to a system that’s now easier to
maintain.
It’s been a partnership in the best sense of the word: Amul’s engineers’ intimate knowledge of
their operations, coupled with ABB’s understanding of customers’ needs.
“We aspire to continue building on this trust,” ABB’s T R Ravishankar said.
The “White Revolution” was a World Bank-funded initiative for developing cooperatives
modeled in line with Amul that increased milk production in the country five-fold over five
decades. Amul often gets requests from other developing countries seeking to assist their rural

17 | P a g e
farmers. It became the inspiration for 1977 National Film Award for Best Feature Film in Hindi
winner, Manthan. The film was financed by over five lakh rural farmers in Gujarat who
contributed Rs.1 each to its budget which has become an instant hit and depicts the Amul Story.

MILK UNION AT DISTRICT LEVELMILK FEDERATION AT STATE

LEVELDAIRY COOPERATIVE SOCIETY AT VILLAGE LEVEL
The milk producers of a village, having surplus milk after own consumption,come together and
form a Village Dairy Cooperative Society (VDCS). TheVillage Dairy Cooperative is the
primary society under the three-tierstructure. It has membership of milk producers of the
village and isgoverned by an elected Management Committee consisting of 9 to 12elected
representatives of the milk producers based on the principle of onemember, one vote. The
village society further appoints a Secretary (a paidemployee and member secretary of the
Management Committee) formanagement of the day-to-day functions. It also employs various
people forassisting the Secretary in accomplishing his / her daily duties.The main functions of
the VDCS are as follows:1) Collection of surplus milk from the milk producers of the village
& payment based on quality & quantity2) Providing support services to the members like
Veterinary First Aid,Artificial Insemination services, cattle-feed sales, mineral mixture
sales,fodder & fodder seed sales, conducting training on Animal Husbandry & Dairying, etc.3)
Selling liquid milk for local consumers of the village Supplying milk tothe District Milk
UnionThus, the VDCS in an independent entity managed locally by the milkproducers and
assisted by the District Milk Union.

PRODUCTION PROCESS:

Collection of Raw Milk:

Raw milk is collected from different co-operatives of Gujarat.About 12,22,000 liters of raw
milk is collected per day. Before this milkis sent to the laboratory for testing the FAT &
SNF proportion, the milkis separated from the raw milk. The milk is taken from the

18 | P a g e
chillingcenters to Collection of Raw Milk Raw milk is collected from differentco-operatives of
Gujarat. About 12,22,000 liters of raw milk iscollected per day. Before this milk is sent to the
laboratory for testingthe FAT & SNF proportion.

Testing of raw milk:

After collecting the samples of milk they are taken to thelaboratory where two types of test
are conducted:1). ELECTRONIC MILK TEST Before pasteurizing the milk the samplesare
taken to the laboratory . In the laboratory with the help of machine called electronic milk tester,
the proportion of SNF & FAT ischecked with phosphate solution. When the color of the milk
becomeyellow, it is sent for pasteurization.2). METHYLINE BLUE REDUCTION TEST This
test is conducted forchecking for how long the milk will remain fresh. To check this, 10 mlof
milk is taken and 1 ml of METHYL solution is added to it. It is thenkept under water at 57
degree Celsius. After one hour if the solutionlosses its color then it is called raw milk. If the
solution remains thesame even after 5 hours than it is considered fresh milk, whichremains
constant for a long period of time.The dairy fixes the proportion of SNF & FAT. After
laboratory givesgreen signal and conforming the raw milk at reception dock is brought into the
house connected with pump is sent to the milk processingplant. This is then chilled below 4
degree Celsius and then stored inthe milk silos. After that milk is processed which has two
steps:Pasteurizing and Standardizing

Pasteurizing and standardizing:

To pasteurize the milk means to kill the germs in the milk by aparticular method which was
invented by a scientist called JAMESPASTEUR and so the name pasteurization. In
the pasteurizationmethod the milk is first heated at 72 degree c to 76 degree c for 15seconds
and then it is immediately cooled below 4 degree c by thismethod they destroy the pathogenic
bacteria present in the raw milk.But if the right degree of temperature is not provided there
arechances that milk might contain germs. After this process some milkgoes to separator
machine and remaining is proportionately sent forstandardization.Standardization process
bifurcates the milk in 3 categoriesvarying according to the SNF & FAT contents. The
equipment namedOSTA. Auto Standardization Adjusts the FAT directly. The computer is just
ordered whether gold or standard milk is to be rationed and thesame will be received with
appropriate contents.

REVIEW OF LITERATURE

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.

19 | P a g e
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.

 Termorshuizen, Meulenberg and Wierenga conducted a study on consumer

behaviour in respect of milk in the Netherlands and their aim was to gain insight into
the factors that influence buying and consumption behaviour with respect to milk and
into the applicability of integrated models to consumer behaviour regarding generic
products, such as liquid milk. They used a model based on the Engel, Kollat and
Blackwell(EKB) model, a so-called integrated model of consumer behaviour for this
purpose. It was found that liquid milk was perceived as a neutral drink: not ordinary or
luxury, as a food not a drink for pleasure, and not as being refreshing. Liquid milk was
perceived differently at varying times of consumption during the day. The most
important socioeconomic variables explaining individual differences in consumer
beliefs regarding milk are: age, level of education, and residential area. The results -
suggest that empirical models of the EKB type can contribute to the understanding of
consumer behaviour in respect of generic food products.
 Sukumaran Bhaskaran in his study attempted to analyze the market potential for the
export of value-added dairy products to Malaysia and to compare the market entry and
operations strategies of successful dairy companies operating in Malaysia and also to
analyze the strengths, weakness, opportunities and threats that characterize Malaysia as
a market for the Australian dairy industry. The study revealed that the Australian dairy
industry is not appropriately structured or focused nor has in place effective marketing
strategies to maximize opportunities in this rapidly expanding market. The study also
revealed that the macro environment is conducive for Australian exporters as there is
substantial and growing demand for dairy products in Malaysia. Consumption has been
forecasted to reach 330,000 tonnes by the year 2020 in Malaysia and it is been estimated
that 95 per cent of demand would be imported. Therefore, imports have been forecasted
to reach 315,000 tonnes in 2020. The growth in demand for dairy products in Malaysia
should provide Australian exporters substantial opportunities. Australian dairy exports
to Malaysia averaged 30,000 tonnes annually. If Australian exports do not increase
substantially, market share in Malaysia is been forecasted to fall from current levels of
approximately 20 per cent to less than 10 per cent by 2020.

 Nagapani in his study on the marketing aspects with special reference to Coimbatore
district co-operative milk producer union limited made an attempt to identify the
reasons for low procurement of milk and to know about the demand in that area. The
study found that the reason for low procurement in the areas of shanmugapuram and
sultanpet chilling centers was due to the competition in procurement from private
dairies. The sale of milk in 500 ml sachet was found to be high among the available
size of sachets.

20 | P a g e
  Radder and Natalie heather smith conducted a study on milk marketing by selected
dairy companies in port Elizabeth. The objectives of the study were to determine
consumers’ milk consumption patterns and factors which influence consumers’ milk
consumption and to review the major competitors in the Port Elizabeth. The study found
that most of the respondents used milk for whitening of tea or coffee and they had the
opinion that the milk was very healthy and it was an enjoyable tasting beverage and
they felt that quality, availability and freshness were the most influencing factors. The
study also found that the increasing competitiveness in the milk industry, including the
no-name brand milk was forcing dairy companies to sell the milk at very low
profit margins.

 Jha and Debroy made a study on globalizing Indian dairy sector. The study found that
the impressive growth of India's dairy sector during the last 3 decades has been possible
through supportive trade policies. In light of the World Trade Organization (WTO)
Agreement on Agriculture, pressures on India to liberalize imports have been
increasing. Nations such as the USA and countries of the European Union continue to
support their own dairy industry to the extent that it distorts the world dairy market. In
India, dairy products are largely protected; skim milk powder (SMP) is, however, an
exception. The Indian government decision to allow free import of SMP at zero duty
can adversely affect the entire dairy sector. Trade restrictions on other dairy products
would eventually be lifted following WTO agreements. The existing rate of import duty
(around 38%) will be sufficient to protect domestically manufactured dairy products.
Therefore, removal of import restrictions on these products will have minimal effect.
Indian milk products are not competitive in the world market despite the fact that milk
price in India is one of the lowest in the world. This indicates inefficiency in processing
of milk in India.
 Vrontis and Vignali in their study made an attempt to investigate the impact of internal
and external environmental forces and dairy products in France. The study revealed that
the consumers of chocolate bars and confectionery are very price conscious, especially
on basic items. The market is highly competitive and price-cutting is widespread.
Retail prices and margins vary widely according to products outlet. Prices in large food
stores, especially for products sold under distributors brands, are much lower than those
of products retailed by other miscellaneous shops and this has been an important factor
in the growth of own labels in this market and consumption of chocolate bars varies
regionally. Consumption of milk chocolate bars is relatively higher in east and south
west regions of France.
 Ashoke Kumar Ghosh and Keshav Lall Maharjan under took a study on milk
marketing channels in Bangladesh. The objective of the study was to understand general
features of milk marketing in Bangladesh, price variations under different stages of
marketing and selling spots and also identified the problem faced by farmers in milk
marketing. The study revealed that the price fluctuation in marketing was one of the
important constraints for the small dairy farmer. The seasonal price fluctuation was

21 | P a g e
 higher for both the villages of Labutalla and Tarabunia at local as well as at urban
markets. However, the cooperative price was fixed and it varied according to the fat
content of the milk. The average price of milk received by the dairy farmers was higher
for the Potajia, with cooperative marketing system compared to other places. It means
marketing channels of cooperative are more efficient than the other channels. The
higher and fixed price of milk would help farmers to better dairy farm planning.
Therefore, further development of dairy farming depends upon the organized marketing
channel in which farmer can get fair price. Keeping in mind for mass of the small
producer, cooperative milk marketing system can be developed for betterment of the
rural dairy farmers.
 Kurup & Mittal found in their study that 65 percent of the milk produced entered the
national exchange economy while the remaining 35 percent was retained within the
producer household. Nearly 85 percent of the marketed milk was handled by the
informal segment comprising middlemen, private milk traders and direct sale from
producer to consumer. Moreover, nearly 85 percent of all the milk that entered the
exchange economy found its way into the urban areas. Thus, it is the urban demand that
is the main source of cash for rural milk producers. It is further estimated that out of
3700 cities and towns in India, only 778 are served by organized milk distribution
network. Only 15 percent of the milk marketed is packed, of which 94 percent is in
pouches. It is evident that not only is the informal sector very large, it is the only channel
available to about 80 percent of the towns in India.
 Kailash Patil and Ashok Dubey conducted a study on quality and cost relationship
of milk products. The objectives of the study was to develop and maintain the quality
and cost relationships in terms of economic and market value of milk products/by
products of local livestock breeds existing in District D.I.Khan. The study found that
growth performance of local milk and level of milk consumption in terms of quality A,
B and C is recorded as 123%, 177% and 200% respectively. The result of the study
further indicated that economic value of milk in terms high, medium and poor
conditions is considered as as 170%, 169% and 170% respectively. The study also
suggested that existing socio economic conditions of local community are required to
be improved through compaign of community participation and involvement in
productive and constructed activities, otherwise it results in low quality milk but at high
cost trends.
 Shantana Halder and Proloy Barua conducted a study on dairy production,
consumption and marketing in Bangladesh. The objective of the study was to review
the existing milk production, current pattern of milk consumption and marketing
situation and constraints in Bangladesh. The study revealed that the lower dairy growth
was due to lower milk productivity of the local breed which is predominant and
consequently farmers are less interested in rearing dairy cows. The knowledge gap
among the poor consumers who treat packaged and processed milk is of low quality
because of lower fat contents is a constraint for slower market growth. The import of
milk powder and butter oil from the developed countries at subsidized prices also
exposed the local producers to unfair competition and discouraged local production.

22 | P a g e
 Small and scattered animal holdings, shortage of feed and also limited availability of
grazing are constraining factors in commercial growth of dairy sector. High incidence
of parasitic animal diseases, inadequate institutional and infrastructural facilities,
inadequate public and private investment in the sector, poor quality of animal health
care and breeding services, lack of professional management and lack of well-defined
national policy for dairy development are other constraining factors in rapid dairy sector
growth.
 Rajendran and Samarendu Mohanty in their study made an attempt to review the
existing status of milk marketing and dairy co-operatives in India. The results of the
study indicated that 80 percent of the milk produced by the rural producers is handled
by an unorganized sector and the remaining 20 percent is handled by an organized
sector. The major constraint in milk marketing is the involvement of the unorganized
sector. Involvement of intermediaries, lack of bargaining power by the producers, lack
of infrastructure facilities for collection, storage, transportation, and processing are the
major constraints which affect the prices received by producers in milk marketing.
Producers are not receiving a remunerative price for their produce because of the
presence of middlemen in milk marketing. By reducing the number of middlemen
between producer and consumer, the consumers’ share to the producer can be increased.
Milk quality, product development, infrastructure support development, and global
marketing are found to be future challenges of Indian milk marketing. These challenges
could be overcome by strengthening the dairy co-operatives.
 Akililu woldu in his study agricultural commodity marketing system the existing dairy
production systems, the domestic market structure, the performance, effectiveness and
efficiency of dairy products marketing, the key policy issues related to the promotion
of the dairy products industry. The study revealed that the need is therefore for creating
the necessary linkages and developing the nascent dairy markets into better working
outlets for farmers' produce. This will require the strengthening of the existing dairy
marketing system. In other words, measures to enhance productivity and
competitiveness of dairy production, which include supply of the genetic input, costs
and quality of animal feeds and adoption of better management practices, become
mandatory. Therefore, with regard to milk processing it is recommended that a stepwise
approach to milk processing, ranging from household technologies to small scale,
medium and large scale may be applied where over it may be appropriate.
 Hempen, Unger, Münstermann, Seck and Niamy attempted to analyse the milk
production, processing and market systems and the identification of bacterial
contamination. Furthermore, the study intended to increase information about milking
hygiene and to create baseline information for improvement of milk quality and the
establishment of a quality control system. Their study revealed that to reduce the initial
bacterial load in raw milk at farm level, it is necessary to introduce appropriate hygienic
milking practices. Udders should be washed with chlorine solution and wiped dry
before milking and milkers should also wash their hands prior to milking. More
attention should also be given to clean clothes and a clean milking place. All equipment
that gets in contact with milk should be washed with soap and be disinfected (e.g. with

23 | P a g e
 household bleach) afterwards. Efforts should also be put into reducing time to transport
milk from the farms to the markets and in the cooling of milk throughout the marketing
chain. The establishment of collection points, where producers can bring their milk to,
would facilitate such a collection system. In places, where cooling can’t be done using
refrigerators, cold water tanks could be used alternatively to reduce the temperature of
the milk. All these changes of common practices can only be achieved through practical
training of all those who are involved in the production, collection, processing and sale
of milk.
 Abinesh made a Comparative study on consumer behavior towards loose milk and
packed milk. The objective of the study was to analyse the factors influencing consumer
behavior and the government intervention to change consumers preference from loose
milk to packed milk. The study found that the factors like quality, quantity, hygienic
aspect and government intervention influence consumer behavior. Government
agencies like, dairy development department, kerala co-operative milk marketing
federation and the dairy cooperatives societies have to play an important role, to help
the milk farmers on one hand and consumer on the other hand. Further the efforts of
Dairy development department and MILMA have to go a long way in the days to come
to develop quality milk procurement and marketing in kerala.

 Shanthi in her doctoral research attempted to study on buyer behaviour of urban

household in fluid milk market with reference to Coimbatore district and attempted to
identify the fluid milk consumption and pattern of utilization by the households with
respect to price, promotion and distribution of fluid milk. The study found that the
higher attitudinal strength was based on the selection of the brand of milk on fat content
and other nutritional facts, the lower attitudinal strength had resulted towards lack of
assurance on continuous purchase of the same brand in the future. It was also found
that the organized sector dairies concentrate in marketing pasteurized branded fluid
milk.

 Kubendran, Vanniarajan under took a study on the comparative analysis of rural and
urban consumers on milk consumption. The objective of the study was to identify the
consumption pattern in milk consumption and its correlation with the same. The study
revealed that in view of constant increase in disposable incomes among the strong
middle-income class, the scope of marketing of milk become wider. It was noted that
the demand for milk and milk products depends on consumers’ willingness and the
capacity to buy. Since the consumers are not homogeneous, the consumption pattern of
milk like quantum of purchase, mode of purchase, source of purchase, brand preference
etc are changing from consumer to consumer. The socio-economic profile of the
consumers namely income status, occupational position, educational level, sex, age and
region are the major determinants of the consumption pattern of milk.

24 | P a g e
  Ana kapaj, Catherine Chan halbrend and Eda Deci 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”.
 Demetris vrontis and hurry kogetsidis and andreas stavrou undertook a study on
strategic marketing planning for a supplier of liquid food packaging products in Cyprus.
The study aimed to provide a strategic review of the marketing functions for a cypiot
company operating in the liquid food packaging industry. The study revealed that by
undertaking to rectify its weak marketing function the company can develop
capabilities that lead to a fully integrated relationship with all its customers and
significantly improve its market share.
 Karmakar and banerjee conducted a study on Opportunities and challenges in the
Indian dairy industry. The study found that with the emergence of World Trade
Organization (WTO) and the imports and exports getting liberalized in the global
economy, the dairy industry faces both an opportunity for growth as well as a threat for
its growth. There is no doubt that there is tremendous scope for the growth of the dairy
industry in the new millennium. As standards of living in the importing country rises,
exporting countries will increasingly concentrate on whole milk powder and cheese
with the assistance of butter and skimmed milk powder. As the cost of milk production
in india is low, there is vast potential for the export of dairy products. Since the world
is getting integrated into one market, quality certification like Indian standard
organisation (ISO), Hazard analysis and cirtical control point (HACCP) is becoming
essential and very few plants in the market have successfully obtained it. There is scope
for introducing newer plants adopting newer processes by the dairy industry in the
country. Packaging of dairy products is also another very promising area. Most of the
dairy plants in the Government, Cooperatives and Private Sector produce almost similar
dairy products like varieties of milk, butter, ghee, skimmed milk powder and whole
milk powder. There is immense scope for the broadening of the products range and
some of the products, which are likely to have considerable demand in the coming
decade, have been identified.
 Donkor Aning, Omore, Nurah, Osafo and Staal conducted a study on risk factors in
the hygienic quality of milk in Ghana. The study was carried out to identify risk factors
associated with bacterial contamination of locally produced raw milk and its
adulteration with water. The study revealed that the proportion of milk samples

25 | P a g e
 adulterated was 18%, while 23.5% of the milk samples had unacceptably high total
plate count (>6.3 log10 cfu/ml), all the samples had unacceptably high coliform plate
count (>0.7 log10 cfu/ml). Risk factors associated with high bacterial counts were
related to milk marketing channels (p<0.05), milk market agents (p<0.01), and milk
containers (p=0.06) as well as their mode of cleaning (p=0.06). The only risk factor
identified for adulteration of milk was related to season (p=0.04).

Objectives of the study

1. To study and analyse the factors affecting consumers buying behaviour to purchase
milk.
2. To study and analyse the awareness of people towards amul milk.
3. To study and identify the advertisement tool mostly preferred by people.
4. To study the relationship of sales with the advertisement.

26 | P a g e
 Research Methodology

Type of research: Descriptive research

Sample design:
Population:
Consumers who consume Amul milk in Navi Mumbai
Sample size: 50 consumers.
Sampling method: Convenience sampling.

Types of data:
 Primary data: Data collected through questionnaire.
 Secondary data: Company websites and Journals.

Limitations to the research:

 Sample size: Considering the population size which consists of consumers in
Guwahati, the sample size is small.

 Biased response: Many respondents may not give correct answers or may be biased
while answering the questionnaire.

 Limited time frame: Time period to conduct the survey is limited.

 Incomplete questionnaires: Some respondents did not response to the survey.

27 | P a g e
  Restricted geographic location: The study is confined to Navi Mumbai only.

Any suggestions

Analyzing data collected may not be accurate for other locations as customer requirements
and expectations differ from one place to other.

Accuracy of results:

Findings based on the limited sample size may affect the accuracy of
ultimate results

Executive Summary

This final project was undertaken with the objective of “CONSUMER BUYING PATTERN
TOWARS AMUL MILK”

In the year 1946 the first milk union was established. This union was started with 250 liters of
milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known
as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected
the brand name AMUL in 1955. The brand name Amul means “AMULYA”. This word derived
form the Sanskrit word “AMULYA” which means “PRICELESS”. A quality control expert in
Anand had suggested the brand name “AMUL”. 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. (The total sale is Rs. 6 billion in 2005). Today Amul
is a symbol of many things like of the high-quality products sold at reasonable prices, of the
genesis of a vast co-operative network, of the triumph of indigenous technology, of the
marketing savvy of a farmers' organization. And have a proven model for dairy development
(Generally known as “ANAND PATTERN”).

28 | P a g e