Amul Functional Management
Amul Functional Management
Amul Functional Management
Submitted By
M17106B1028
Marketing
Batch 2017-2019
(Manasi Phatak)
University of Mumbai
1
DECLARATION
I hereby declare that all the work presented in the project report entitled “A Study on AMUL’S Dairy
Product and Newly Launched Category of Chocolates GUJARAT CO-OPERATIVE MILK
MARKETING FEDERATION LIMITED.
At Vidylankar Institute of Technology, Wadala and AMUL is my authentic record of my own work carried out.
Date:
Mumbai Signature
2
ACKNOWLEDGEMENT
3
Table of content
Executive Summary 05
Introduction on Amul 06
Industry Profile 09
GCMMF 10
SWOT Analysis 17
Data collection 18
Questionnaire (Consumer) 32
Annexure 56
Bibliography 59
Executive Summary
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INTRODUCTION
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Inspired by the freedom movement
The seeds of this unusual saga were sown more than 65 years back in Anand, a small town in the
state of Gujarat in western India. The exploitative trade practices followed by the local trade cartel
triggered off the cooperative movement. Angered by unfair and manipulative practices followed
by the trade, the farmers of the district approached the great Indian patriot Sardar Vallabhbhai
Patel for a solution. He advised them to get rid of middlemen and form their own co-operative,
which would have procurement, processing and marketing under their control.
In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel.
Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and
Tribhuvandas Patel, they formed their own cooperative in 1946.
This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just two
village dairy co-operative societies and 247 litres of milk and is today better known as Amul
Dairy. Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas
Patel, the founder Chairman and the committed professionalism of Dr Verghese Kurien, who was
entrusted the task of running the dairy from1950.
The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach should
become the basis of a National Dairy Development policy. He understood that the success of
Amul could be attributed to four important factors. The farmers owned the dairy, their elected
representatives managed the village societies and the district union, they employed professionals
to operate the dairy and manage its business. Most importantly, the co-operatives were sensitive
to the needs of farmers and responsive to their demands.
At his instance in 1965 the National Dairy Development Board was set up with the basic objective
of replicating the Amul model. Dr. Kurien was chosen to head the institution as its Chairman and
asked to replicate this model throughout the country.
The Amul model of dairy development is a three-tiered structure with the dairy cooperative
societies at the village level federated under a milk union at the district level and a federation of
member unions at the state level.
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Establishment of a direct linkage
between milk producers and consumer by
eliminating middlemen
Professional management
7
The Amul model has helped India to emerge as the largest milk producer in the world. More than
15 million milk producers pour their milk in 1,44,500 dairy cooperative societies across the
country. Their milk is processed in 184 District Co-operative Unions and marketed by 22 State
Marketing Federations, ensuring a better life for millions.
Industry Profile
Dairy is a place where handling of milk and milk products is done and technology refers to the
application of scientific knowledge for practical purposes. Dairy Technology has been defined as
that branch of dairy science, which deals with the processing of milk and the manufacture of milk
products on an industrial scale. The dairy sector in the India has shown remarkable development
in the past decade and India has now become one of the largest producers of milk and value-
added milk products in the world. The dairy sector has developed through co-operatives in many
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parts of the State. During 1997-98, the State had 60 milk processing plants with an aggregate
processing capacity of 5.8 million litres per day. In addition to these processing plants, 123
Government and 33 co-operatives milk chilling centers operate in the State. Also, India today is
the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63
cents, and Japan’s $2.8 dollars.
Amul in abroad:
Amul is going places. Literally. After having established its presence in China, Mauritius and
Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), India largest milk
cooperative is waiting to flood the Japanese market.
Then, GCMMF is also looking at Sri Lanka as one of its next export destinations. Amul products
are already available on shelves across several countries, including the US, China, Australia, West
Asian countries and Africa.
GCMMF
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GCMMF – An Overview
Total Milk handling capacity per day 30 Million litres per day
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SALES IN MILLION
300000
250000
200000
150000
100000
50000
0
2014-15 2015-16 2016-17
SALES IN MILLION
VISION:
MISSION 2020: -
Objective:
Is to ensure that the maximum share of the consumer’s rupee goes back to the
milk producers.
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THE PRODUCT RANGE
UHT Milk Range Amul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk,
Amul Taaza1.5% fat Milk, Amul Lite Slim-n-
Trim Milk, Amul Fresh Cream
Milk Drink Amul Kool Flavored Milk, Amul Kool Café, Amul
Kool Koko, Amul Kool Milk Shake, Amul
Kool Chocolate Milk, Nutramul Energy Drink
Curd product Amul Masti Dahi (fresh curd), Amul Masti Spiced
Butter Milk, Amul Lassi, Amul Flaavyo Yoghurt
Mithaee Range (Ethnic Sweets) Amul Shrikhand, Amul Mithaee Gulab jamuns,
Amul Basundi, AvsarLadoos
Amul Newly Launched Ice cream Epic Choco Almond, Epic Almond Fudge, Epic Tanzania,
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Colombia, Epic Peru.
Amul newly Launched Single Origin Amul Venezuela, Amul Ivory coast, Amul Peru Dark
Chocolates Amazon, Amul Colombia, Amul Tanzania, Amul
Equador Tropical Dusk, Amul Madagascar, Amul
Orange Tropical, Amul Mystic Mocha.
Amul Frozen Foods Amul French Fries, Aloo Tikki, Amul Hash Brown,
Amul Burger Patty, Amul Masala Paneer Nuggets,
Cheese Poppons, Amul Cheese Onion Paratha.
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Amul Newly Launched Single Origin Chocolates
SERVICES:
GCMMF is sole marketer of all products under brand AMUL and SAGAAR.
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It is also the sole selling agent for the National Dairy Development Board’s (NDDB)
edible Oil, DHARA‟.
GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading
House" status. GCMMF has received the APEDA Award from Government of India for
Excellence in Dairy Product Exports for the last 13 years.
CLIENTS:
Major clients are the five stars hotels (TAJ, Oberoi etc.) and big restaurants throughout
the country.
Many of Amul’s products are now available in the USA, Gulf Countries and Singapore.
STRENGTH
2. India’s major giant player in dairy products & in Ice Cream product
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3. Wide product range.
WEAKNESS
OPPORTUNITIES
1. Areas can be targeted to cover Retailers look for convenience and margin.
2. Promotions will pay good results, market is lacking with the same.
3. A great opportunity to cash the brand name once again by giving good quality products.
THREAT
1. Some customers are in the hand of retailers because the retailer enjoys good profit margin from
another competitor’s brand.
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DATA COLLECTION
Objectives of the Study
This project is based on information collected from primary sources. After the
detailed study, an attempt has been made to present comprehensive analysis of
consumption of Amul chocolates consumed by the people. The data have been
used to cover various aspects like consumption, consumer’s preference and
customer’s satisfaction regarding Amul chocolates.
The two sources of data used for the purpose and study are:
Primary data
The primary data comprises information survey of chocolate consumers and
retailers. The data has been collected directly from respondent with the help of
structured questionnaires.
Secondary data
Secondary data are those, which have already been collected. The secondary data
was collected from internet and references from Library. Secondary data for the
study has been compiled from the report and official publication of the
organization, which have helped in getting and insight of the present scenario
existing in the operation of the company.
Research Design
This part describes the methods and procedure used for collection and analysis of
data in the study. The specific methodology adopted for the selection of different
units and other details are given below.
Sampling Technique
To achieve the objectives of the study simple random sampling method was used.
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Sample Unit
Retailers of chocolate and consumers who consumes chocolate were selected from
Mumbai city.
Sample Size
Sample of respondents was 110 (60 consumers and 50 retailers)
Analytical Tools
The data collected during the period of inquiry were compiled and analysed
systematically through tabular analysis and keeping in view of the objectives of the
study.
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ANALYSIS & INTERPRETATION
Q1.
Interpretation -The survey which was conducted in which 58.3% were male and
41.7% were female. So, there were more number of male as compared to female.
Q2.
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Interpretation-The above graph shows the ages of people who had done survey in
which
Below 18 where 1.7% ,19 – 25 where 93.3%, 25 – 35 where 5%, 35 – 45 & Above
45 where 0 %. So, this where the different age group who have done the survey.
Q3.
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Q4.
Interpretation-The above graph shows that 68.3% prefer Cadbury, 10% prefer
Nestle, 8.3% prefer Amul, 8.3% prefer Ferrero Rocher while 5% prefer other
brands.
Q5.
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Interpretation-The above graph shows rating or preference of people’s choice on
theirs factors when they purchase chocolate. Often, flavour or taste rated the most
followed by Quality & Packaging and the Price.
Q6.
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Q7.
Interpretation- The above graph shows that creamy chocolate choice is higher
with 28.3%, followed by wafer 11.7%, 16.7% nuts, 23.3% crunchy, fruit shares
15% and others 5%.
Q8.
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Interpretation- 70% people buy from local stores, 21.7% from super market, 3.3%
from bakeries and 5% from other.
Q9.
Interpretation- The above graph shows that 45% purchase affects due to
suggestion from friends & relatives, 38.3% from advertisement, 8.3% from
attractive display, 5% from Brand Ambassadors and 3.3% from online reviews.
Q10.
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Interpretation- Television ads influence the most with 55%, followed by 26.7%
get influenced by social media, 1.7% from newspaper, 1.7% from hoardings and
15% by other media.
Q11.
Interpretation- Best reasonable price seems to be Rs. 10-30 with 43.3%, 35%
seems to be in favor of Rs. 50, 11.7% seems to prefer Rs. 50-70 ,6.7% to prefer
less than Rs.100and 3.3% seems to prefer less than Rs.10.
Q12.
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Interpretation- The above graph shows that people prefer more energy nutritional
factor with 40%, while 35% protein, 11.7% fat, 1.7% iron, 5% calcium, 5%
carbohydrates, 1.7% fiber.
Q13.
Interpretation- The above graph shows that low sugar levels chocolate will be the
best choice for brands to focus on as it is 33.3%, 30 % with low fat levels, 21.7%
with low calorie levels & 15% other factors.
Q14.
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Interpretation- 75% peoples says that they prefer chocolate anytime, while after a
meal has 16.7%, 1.7% with they are happy, 3.3% when they are sad & 3.3% early
in morning as their first thing.
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Q15.
Interpretation- The people who have tasted the Amul Chocolate and feel good is
43.3%, while 40% says its ok, 6.7% with its fabulous, 3.3% says the find it terrible,
Q16.
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Interpretation- Price factor plays an important role which can be seen through this
graph with 43.3% for yes, 20% no % 36.7% for maybe.
Q17.
Interpretation- Controversy does not affect the choice of not eating chocolates of
a brand with 51.7% no, 16.7% yes and 31.7% maybe.
Q18.
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Interpretation- There is a less chance that addiction towards chocolates is more
with 48.3% no, 33.3% yes and 18.3% maybe.
Q19.
Interpretation- The above graph shows that large number of people are brand
loyal with 48.3% yes, 31.7% no and 20% maybe.
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Q20.
QUESTIONNAIRE
31
32
33
34
35
36
37
38
Data Analysis and Interpretation:
Analysis of the data (from the questionnaire) obtained from the Amul Retail Shops.
a.) Yes b.) No
Stockiest No of Respondent
Yes 45
No 5
Total sample Size 50
50
Stockiest ofAmul
45
40
35
30
25 Stockiest ofAmul
20
15
10
5
0
yes no
Interpretation of Graph 1
As per the graph we can interpret that only 10% retailers are not maintaining the stock of “Amul”
Dairy Product, so majority market segment has been covered by this company and for the
remaining market share we can interpret that it has been covered by their competitors.
a) Absence of packaging date b) Low margin c) No Replacement for leakage d) Low distribution
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Table no 2. What are the reasons retailers not keeping Amul Product?
Reason No of Retailer
Low Margin 30
Low distribution 5
Interpretation
From the above-mentioned graph, we can conclude that the remaining 10% retailers are not
keeping the “Amul” dairy products because their major competitors in this region i.e. “Britannia”
& “Prabhat” is giving more margins to their retailers. And another reason for not purchasing its
products is not providing replacement facility.
Q3: Which is the most preferable brand of dairy product that you stock?
40
Product Brand Retailer stock
Amul 25
Britannia 10
Nestle 7
Prabhat 8
Total sample size 50
Retailer stock
30
25
20
Retailer stock
15
10
5
0
amul Britannia Nestle Prabhat
Interpretation
From the above-mentioned graph, we can interpret that major sample customers are Preferring the
“Amul” dairy products due to the best Mrp and taste in comparison to their Competitors and that
is the main reason of major market segments.
i) Others
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Paneer 40
Butter milk 40
Dahi 35
Flavored Milk 38
Cheese 45
Amul Pro 5
Chocolates 40
es
ilk
ilk
Ch l pro
Pa r
tte r
vo ah
tte
Bu nee
at
M
rM
e
Bu
ol
Ch
u
d
oc
re
ul
am
Fla
Interpretation:
From the above-mentioned graph, we can interpret that customers mainly preferred the
“Amul Butter” and “Amul Cheese and Paneer and other product except Amul pro, and it is only
due to increasing demand for the fast food in Indian market. However, customers also prefer
“Amul Chocolates” because it produces much different flavored Chocolates in comparison to
their main competitors.
a.) Distributors b.) Other suppliers
Sources Respondent
Distributor 48
42
Other suppliers 2
Total sample size 50
sources
60
50
40
sources
30
20
10
0
distributor Other Suppliers
Interpretation.
As per the graph we can conclude that majority of its products are selling to their retailers by their
distributors and remaining Retailers are directly purchasing from the market i.e. from the
supermarket and malls.
a) Yes b) No
43
Stocking of Chocolates
45
40
35
30
Stocking of Chocolates
25
20
15
10
5
0
Yes No
Interpretation
As we can see that 80% of the Retailer keeping the stock of the Chocolates, , so majority
market segment has been covered by this company and for the remaining market share we can
interpret that it has been covered by their competitors.
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Graph no: 7. Most preferable Chocolates.
20
10
0
cadbury Dairy Milk Nestle Amul All of the above
Interpretation
As you can see 16 retailers keeping only Cadbury dairy milk product, 8 retailers only nestle
Chocolates, 6 retailers selling only Amul chocolates product who is the Amul Parlor and rest 20
Retailer keeping all chocolates Product.
45
Fruit n nuts 5
Others 2
Not keeping Amul Chocolates 5
Total No of Respondent 50
Varities of Chocolates
25
20
15
10
Varities of Chocolates
5
0
es es ts rs es
olat olat Nu the olat
ho
c
ho
c tn O
ho
c
ui c
C C Fr g
r k ilk pi
n
Da M
ee
t K
No
Interpretation
As we can see in the following table Retailer keep dark chocolates Mostly and then milk
Chocolates and fruit n nuts. 10 Retailer is not keeping the stock of Chocolates.
9. Have you ever heard the Amul Newly Invented Single Origin Chocolates?
a) Yes b) No
46
Graph no: 9. Heard About Amul Newly Launched of Chocolates.
Interpretation
As we can see in the following Graph the total number of Respondent is 50 in which 47 Retailer
is Aware about Amul newly launched single origin Chocolates.
a) Yes b) No
47
No of Retailer stock Amul Newly Launched
Chocolates
30
20
10
No of Retailer stock Amul
0 Newly Launched Chocolates
Ye
s
No ct
odu
pr
tes
la
oco
Ch
ing
ep
t ke
No
Interpretation
As we can see in graph that 30 Retailer is ready to keep the Amul newly Launched Single Origin
Chocolates 10 Retailer refuse to keep the Chocolates because it is Small Shop and area was slum
and rest 10 retailer is not keeping any type of Chocolates.
a) Amul Venezuela b) Amul Ivory Coast c) Amul Peru Dark Amazon d) Amul
Colombia e) Amul Tanzania f) Amul Equador Tropical Dusk g) Amul Madagascar
h) Amul Orange Tropical i) Amul Mystic Mocha j) All of the Above.
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Different Varieties of Chocolates No of Respondent
Amul Venezuela 4
Amul Ivory Coast 4
Amul Peru Dark Amazon 7
Amul Colombia 2
Amul Tanzania 1
Amul Equador Tropical Dusk 1
Amul Madagascar 1
Amul Orange Tropical 2
Amul Mystic Mocha 2
All of the Above 6
Not keeping All chocolates 10
Not Keeping Amul chocolates 10
Total sample size 50
49
Types of Chocolates Retailer will stock
8
6
4
2
0 Types of Chocolates Retailer will
stock
st n a e
le a C oa azo ia och bov
u y m b ia k r al M A
nez Ivor rk A lom zan Dus asca pic stic the
n o f
Ve ul Da l Co l Ta ical dag Tr My ll o
ul Am ru u u p a ge ul A
Am Pe Am Am Tro ul M ran Am
ul r O
Am ado Am ul
u A m
Eq
ul
Am
Interpretation
As we can see in the following Graph that Amul Peru dark amazon is the Flavor which the
Retailer is keeping 7 Retailer is Ready to keeping the Chocolates and 6 retailers is Ready to keep
all Flavor of single Origin Chocolates.
a) Absence of packaging date b) Low margin
c) No Replacement for leakage d) Low distribution
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Table no: 12. The Reason Retailer is not keeping the Chocolates
Graph no: 12. The Reason Retailer is not keeping the Chocolates
at
e
gin kag
e n ss rs es
g d ar a utio ene the olat
in m le ib r O c
ag o w for istr A wa cho
k L d
ac t
en Low w ng
f p m Lo epi
e o lac
e ke
enc ep i ler
s R ta
Ab No Re
Interpretation
As we can see in the following graph the Reason why the Retailer is not willing to keep the
Chocolates stock, hence there was 100% Replacement Guarantee in Single Origin Chocolates.
And in Chocolates Amul giving 20% to 25% margin, so there is less Number of retailer who is
saying about the Margin issue.
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13. Are you satisfied with the Service of the Distributor?
a) Yes b) No
Interpretation
As we Can see in this graph 42 Retailer is satisfied with the Service of the Distributor 3 of the
Retailer is Complaining about delivering issue which and rest 5 retailer is not keeping Amul
product.
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B Brand
C Image
D Availability
E Packaging
25
20
15 good
very good
Average
10 Bad
Very bad
0
Quality Brand Image Availability Packaging
Interpretation
As we can see in the Following Graph that Amul mainly stand for their Quality, image, and brand
name. Most of the retailer and consumer believe that Amul mainly stand as they said they Value
for money, Giving the best quality product at the lower price.
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ANNEXURE
Address: ____________________
BACKGROUND
We are doing a brief survey to find out the level of retailer perception regarding Amul products
Retail stores. We would be grateful if you could spare a few minutes to participate in it. Thank
you for your cooperation.
a.) Yes b) No
2. If no, why?
i) others
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a.) Distributors b.) Other suppliers
a) Yes b) No
9. Have You ever heard the Amul Newly Invented Single Origin Chocolates?
a) Yes b) No
a) Yes b) No
a) Amul Venezuela b) Amul Ivory Coast c) Amul Peru Dark Amazon d) Amul
Colombia e) Amul Tanzania f) Amul Equador Tropical Dusk g) Amul Madagascar
h) Amul Orange Tropical i) Amul Mystic Mocha j) All of the Above.
a) Absence of packaging date b) Low margin
c) No Replacement for leakage d) Low distribution
a) Yes b) No
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A Quality
B Brand
C Image
D Availability
E Packaging
F Margin
G Taste
Bibliography
Books
Philip’s Kotler – “Marketing Management
C.R. Kothari- Marketing Research
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Websites
www.amul.com
www.google.com
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