Marketing Strategy of Amul
Marketing Strategy of Amul
Marketing Strategy of Amul
ON
“Marketing Strategies of Amul”
Submitted by:
Maheen Akhtar
Roll No. 200731780016
M.com (Applied) 3rd Sem.
Session: 2021-22
SHIA PG COLLEGE
UNIVERSITY OF LUCKNOW
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DECLARATION
This is to declare that I Maheen Akhtar Student of M.COM, have personally worked on
the project entitled “Marketing Strategies Of Amul” The data mentioned in this report
were obtained during genuine work done and collected by me. The data obtained from
other sources have been duly acknowledged. The result embodied in this project has not
been submitted to any other University or Institute for the award of any degree.
Date:
Maheen Akhtar
M.com. (Applied) 3rd SEM.
Roll No. 200731780016
2
ACKNOWLEDGEMENT
First of all I thank God for giving me this wonderful opportunity to undertake this
I would like to sincerely thanks Mr. Manish Singh for giving me the wonderful
opportunity to work under his able guidance and support throughout my research.
I also thank persons working at Amul office for giving me their valuable time and vital
I would also like to thank my colleagues for rendering their help to me in this research.
Last but not the least, I thank my parents for their prayers, help and advice which helped
Maheen Akhtar
M.com. (Applied) 3rd SEM.
Roll No. 200731780016
3
PREFACE
I respect to the allotted period, I have formed relationship with the organization as trainee
environment.
Although I am Student of M.COM, Shia P.G. College Lucknow. It is a two year full
time degree courses. So far this training is scheduled for third semester syllabus a
survive in cut throat competition with a prosperous existence. I have tried my best to gain
out of well framed circumstances & with the help of experienced personnel who helped
me out so for become possible to them. As being a very confidential functioning many
things are there which can’t be known but on the basis of gathered information and
certain hints, the project has been formed. It may have something missing but I have tried
to present all things what I have received. Although this report has been got checked by
different personnel but after that if there is some shortcomings I expect it to be rectified.
So the whole study bifurcated in different parts. Certain observations & suggestions also
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EXECUTIVE SUMMARY
engaged into various jobs such as dealing with clients, answering customer queries
through telephonic conversations and providing them knowledge about new schemes and
Amul”. The project work was for this research was conducted in Lucknow to study the
The research has been conducted to gather information from 100 respondents & a
structured questionnaire will be used to collect the information from the respondents. The
data which was collected from them will be analyzed and classified. It was found that
though the Amul has the highest market share it needs to improve on its service quality
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TABLE OF CONTENT
S. No. Topics
Cover Page
Certificate of Internship
Declaration
Acknowledgement
1. Company profile
2.
Objectives of the study
3. Future scope
4. . Problems limitations
5. Work experience
6. Finding
7. Limitation
8. Conclusion
9. Future Scope
10. Bibliography
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COMPANY PROFILE
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COMPANY PROFILE
AMUL
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The Amul Plant at Anand showing the milk silos
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.[2] The
operative was initially referred to asAnand Milk Federation Union Limited hence the
name AMUL.
Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3 million
Amul spurred India's White Revolution, which made the country the world's largest
producer of milk and milk products. In the process Amul became the largest food brand in
Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–
History
marginal milk producers by traders or agents of the only existing dairy, the Polson dairy,
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in the small city distances to deliver milk, which often went sour in summer, to Polson.
The prices of milk were arbitrarily determined. Moreover, the government had given
monopoly rights to Polson to collect milk from mikka and supply it to Bombay city.
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
farmers who could deliver, at most, 1–2 litres of milk per day. Cooperatives were formed
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, 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. This led to the search for an attractive brand name. In a
brainstorming session, a chemist who worked in the dairy laboratory suggested Amul,
which came from the Sanskrit word "amulya", which means "priceless" and "denoted and
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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. [8] 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.
In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.
Adding to the success, Dr. Madan Mohan Kashyap (faculty Agricultural and Engineering
and Dr Feryll (former student of Dr Verghese Kurien), visited the Amul factory in
Gujarat as a research team headed by Dr. Bheemsen. Shivdayal Pathak (ex-director of the
Sardar Patel Renewable Energy Research Institute) in the 1960s. A milk pasteurization
system at the Research Centre of Punjab Agricultural University (PAU) Ludhiana was
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About GCMMF
The GCMMF is the largest food products marketing organisation of India. It is the apex
organisation for products under the brand name of Amul and Sagar. [15]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.
[citation needed]
The daily milk procurement of GCMMF is around 13 million liters per day. It
collects milk from about 16914 village milk cooperative societies, 17 member unions and
24 districts covering about 3.18 million milk producer members. More than 70% of the
members are small or marginal farmers and landless labourers including a sizeable
The Amul Model is a three-tier cooperative structure. This structure consists of a dairy
cooperative society at the village level affiliated to a milk union at the district level which
in turn is federated into a milk federation at the state level. Milk collection is done at the
village dairy society, milk procurement and processing at the District Milk Union and
milk products marketing at the state milk federation. The structure was evolved at Amul
in Gujarat and thereafter replicated all over the country under the Operation Flood
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Collection of surplus milk from the producers of the village and payment based
Providing support services to the members like veterinary first aid, artificial
insemination services, cattle-feed sales, mineral mixture sales, fodder and fodder seed
Arranging transportation of milk and milk products from the Milk Unions to the
market,
Creating and maintaining a brand for marketing of milk & milk products,
Providing support services to the Milk Unions and members like technical inputs,
Pooling surplus milk from the Milk Unions and supplying it to deficit Milk
Unions,
Establish feeder-balancing dairy plants for processing the surplus milk of the
Milk Unions,
of milk products,
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Decide on the prices of milk and milk products to be paid to Milk Unions,
marketing planning.
Arranging finance for the Milk Unions and providing them technical know-how.
marketing functions.
Today, there are around 176 cooperative dairy unions formed by 125,000 dairy
same pattern, who are processing and marketing milk and milk products profitably, be it
Amul in Gujarat or Verka in Punjab, Vijaya in Andhra Pradesh, Milma in Kerala, Gokul
more than 190 dairy processing plants spread all over India with large investments by
of milk per day and pay an aggregate amount of more than Rs. 125 billion to the milk
producers in a year.
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Impact of the "Amul Model"
The effects of Operation Flood Programme are appraised by the World Bank in an
evaluation report. It has been proved that an investment of Rs. 20 billion over 20 years
under Operation Flood in the 1970s and 80s has contributed in increase of India’s milk
production by 40 million metric tonnes (MMT), i.e., from about 20 MMT pre-Operation
investment of Rs. 20 billion over 20 years. India’s milk production continues to increase
and now stands at 90 MMT(as of 2012). Despite this fourfold increase in production,
there has not been a drop in the prices of milk during the period while production has
continued to grow.
Due to this movement, the country’s milk production tripled between the years 1971 and
1996. Similarly, the per capita milk consumption doubled from 111 gm per day in 1973
GCMMF (AMUL) has the largest distribution network for any FMCG company. It has
nearly 50 sales offices spread all over the country, more than 5000 wholesale dealers and
Amul became the world's largest vegetarian cheese and the largest pouched-milk brand.
AMUL is also the largest exporter of dairy products in the country. AMUL is available
today in over 40 countries of the world. AMUL is exporting a wide variety of products
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which include whole and skimmed milk powder, cottage cheese (Paneer), UHT milk,
The major markets are USA, West Indies, and countries in Africa, the Gulf Region,
others such as Mauritius, Australia, Hong Kong and a few South African countries. Its
bid to enter the Japanese market in 1994 did not succeed, but it plans to venture again.[17]
In September 2007, Amul emerged as the leading Indian brand according to a survey by
In 2013, Amul was named the Most Trusted brand in the Food and Beverages sector
2014 edition of The Brand Trust Report,[20] Amul is ranked 7th in the list of India's Most
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ORGANIZATION CHART
PCDF has ten divisions. Every division has manager who is responsible to General
The division heads of each division shall be responsible for the performance and
of their respective division not only at the head office but also in the units /
unions in the field. These officers shall not merely insure achievement of the
targets fixed and implementation of systems for their functional areas but promptly
The divisional heads shall discharging their duties within the policy frame laid
down by the Managing Director and subject of his control & supervision only
approved policy , systems development and other important matters need to be put
Bill before approval & implementation ; be routed through the Management Service
Division (MSD) , which will check the plan to see whether they are in conformity
with corporate objective and will see that that they are in conformity with other
The divisional heads should see the terms made by them and their officers and
purposively designate link officers for each officer in their division. All letters to
the NDDB shall before dispatch , be sent to the MSD , which will take speedy
clearance at the appropriate level. A copy of all such letters shall be the CPM
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IV. PRODUCTS RANGE
flavoured milk, basundi, Amul Pro brand and others. Amul PRO is a recently launched
essential nutrients. In January 2006, Amul launched India's first sports drink, Stamina,
Amul offers mithaimate which competes with Milkmaid by Nestle by offering more fat at
lower price.
In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its
product offering in the milk products segment. Other Amul brands are Amul Kool, a low-
calorie thirst quenching drink; Masti Butter Milk; and Kool Cafe, ready to drink coffee.
Amul's icecreams are made from milk fat and thus are icecreams in real sense of the
word, while many brands in India sell frozen desserts made from vegetable fat.
Over the years Amul has been witnessing strong growth in this portfolio,with the segment
growing at 53%, as a result of growing consumer awareness and demand for good quality
milk,the urban population has especially been showing great interest in long
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undergoes UHT treatment to remove all harmful microorganisms while retaining the
nutrition in the milk.Today Amul sells around 4-500,000 litres of UHT milk and other
value added products per day and forecast this demand to continue growing at 25%.The
UHT products have enabled Amul to position itself as the market leader in packaged milk
segment by penetrating the deeper and vast markets by maintaining long shelf life of
Amul has installed a "Any Time Milk" machine which dispenses a 300-ml pouch of fresh
milk for Rs 10, at Anand's Amul Dairy. As a first step, Amul plans to install six such
ATMs in Anand itself. According to Rahul Kumar, MD of Amul Dairy, Amul wants to
add a whole range of dairy products, which could be dispensed through these machines.
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ADVERTISING
An Amul butter ad on Pakistan'sKargil War fiasco. The image shows the "Amul baby"
hoardings with topical ads, relating to day-to-day issues.[25] It was popular and earned
a Guinness world record for the longest running ad campaign in the world. In the 1980s,
sketching the Amul ads; the latter rejected the trend of using celebrities in advertisement
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
strike, and one depicting the Amul butter 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
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Amul hired DraftFCB+Ulka for the brands of Amul milk, chocolates, paneer, ghee, ice-
cream.
In popular culture
The White Revolution inspired the notable Indian film-maker Shyam Benegal to base his
Shah and Amrish Puri. The film was financed by over five lakh rural farmers
inGujarat who contributed Rs 2 each to its budget. Upon its release, these farmers went in
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COLLECTION AND DISTRIBUTION OF MILK
The report present detailed information about the Lucknow Milk Union
Dairy work happens through various procedures. Basic of the dairy work is
milk union. It is a big co-operative unit based on the values of understanding co-
operation profit for milk producers and providing quality products to consumers at
a. Marketing
c. Industry Unit
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Administration co-ordinates various function , looks after salaries and wages and
the function of producing various industrial products like milk , butter etc.
products.
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DAIRY SUPPLY CHAIN STRUCTURE
Member Farmer
Society
Chilling Center
Dairy
Vender Retailer
CUSTOMER
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The Amul Dairy did a lot’s of efforts to collect the milk. It is a dynamic and
complex field involving many workable principles and production over a period of
years.
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COLLECTION OF MILK
SURVEY
Firstly, LPCM union does some survey in rural areas. The survey team tells about
possibility of milk. Milk societies cater to a cluster of 6-10 villages each. They are
towns. At present there are 10 routes and 466 societies of Amul Dairy.
Collected milk from societies is finally sent to the dairy for various treatments and
tests.
RATES OF MILK
The milk collected from various societies is brought to the dairy and here it is
weighted and duly recorded in the register. The capacity of the milk Can is
After performing various tests , the Procurement and Input Department decides the
quality of milk and then a valid rate of milk is given to the member farmer
accordingly.
Co-operative union has some target which they fulfill every year.
1. No. of Societies
2. Total no of members
3. No of Farmer Members
5. Vaccination
6. Sterility Prohibition
9. Artificial breeding
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11. Purchasing of liquid milk and products of milk
DISTRIBUTION OF MILK
The 4 P’s Are always influencing the advertising process and decision.
1. Promotion
2. Product
3. Price
4. Place
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The channel of distribution is the path , which the products takes while moving to
the product flows till it finally reaches to the hands of the actual users.
Under the broad name of ‘place’ which is a marketing component , the most
consumer.
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PROCESS OF DISTRIBUTION
AGENTS:-
Firstly , Agents enrolled with Distribution Department (Sales dept) of LPMU gives
the location of place where they require the milk. Then the supply vehicle
unloads the required amount of milk to that agent shop. All demands get through
supply vehicles.
Processed milk and other related products need different distribution structure. The
Processed milk can be sold from agents or outlets only early in the morning
and evening.
Different service level from retail. Unlike processed milk mozzarella cheese
many need more customer education and hence is sold through premium
retail store.
Different shelf life whereas processed milk is still highly perishable- Butter,
Ghee or paneer have better shelf life and can be sold through normal
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Milk union sells their products through agents. Lucknow has a total of approx. 1900
outlets selling milk and about 800 agents are serviced by AMUL . Lucknow has
The sale of milk is highly skewed towards the early morning hours . In Lucknow
around 40% of the agents temporary structures for selling milk in morning. 40%
of the agents have a milk booth or operate from there houses and balance 20% is
Dairy use milk truck or van (painted with Logo and Slogan) for distributing the
products to retailers.
CHANNEL OF DISTRIBUTORS
Retailer
Hotels / Institutional
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PROCESS MAPPING
Distribution vans are used for supplying the processed milk and curd to agents.
Agents are hubs identified by Dairy for distribution of its products. Agents generally sell
exclusively dairy’s brand of products. Retailer deposits security and should purchase milk
on daily basis. Dairy officially can impose penalty in case agents are found selling
ROUTE PLANNING
There are 37 routes in Lko. Route planning has been done keeping primarily the
total time available and no of outlets for any given route. No of outlet in a route
is a function of -
taken for loading / unloading at any given outlet to be kept for that
route.
Distance between the outlets. The terrain / accessibility and distance between
Institutions est. en-route. Institutions have their own systems for entry / exit
All routes have been encoding with relation to there respective district sand
outlets have been encoded for their respective routes. This has been done to
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track sales at retail level , management of empty crates etc. Separate routes
CONTAINERIZATION
fast empty and milk crates movement at retail points while maintaining the
of vehicles (fast movement is required to finish milk supply early in night and to
morning. Most of the retailer doesn’t have freezer for storing milk.
Containerization would reduce handling losses during these activities. The vehicle
crew levels the crates on the road and move to its next service point. The crew
needs to be trained to deal with the end customer of dairy appropriately. With
image.
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Competition is hooting up in dairy sector. Dairy is expected to have growth rate
of 20% or more after the year 2002. Multinationals like Nestle have a strong
presence in dairy items sold through FMCG retail distribution channels , however ,
TYPE OF VEHICLE
The dispatch sheet is given to the attendant. Dispatch sheet also doubles as a gate
pass for vehicle movement out of DAIRY. Amul has a separate document dispatch
summery for gate pass. Physical enumeration is done at gate by security to cross
check the figures mentioned in the dispatch statement vehicles out of the factory
premises. The dispatch sheet and empty trays are returned to dairy official the
next day.
USE OF COMPUTER
planted which is joined with the computers. The computer also records the
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MARKETING
Lucknow milk union in the recent three-four year has been on the top for milk
production and marketing in state. The union now had to work in collaboration
with the regional dairies , which is affecting its profit a lot. In these gears milk
production and production of other milk products by the unit has been very good.
In addition to milk , union has also fulfilled the needs of butter , ghee , cheese ,
flavored milk , cakes , Ice-creams in the state more then the local demand. Cheese
and butter through the medium of PCDF are sent for marketing on the state and
national Levels.
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OBJECTIVE OF STUDY
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OBJECTIVE OF STUDY
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FUTURE SCOPE
The scope formulation is the first step to a successful Research process. Project
To keep things in mind that as the ever changing competitive business environment. New
thoughts and ideas should pour into its, Research & Development to innovate its existing
This study enables the user with answer to formulate an effective marketing strategy
with a broader prospective to tap areas where it did not feel the need earlier, hence the
decision of whether to penetrate this section or not can be found out at the end of the
data analysis.
It also gives an idea of the potential of our business in the future & the fluctuation in
competitors.
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
establish facts. The primary purpose for applied research is discovering, interpreting and
the development of methods and systems for the advancement of human knowledge on a
wide variety of scientific matters of our world and the universe. Research Methodology
can be defined as: ‘The analysis of the principles of methods, rules, and postulates
employed by a discipline’, or ‘the systematic study of methods that are, can be, or have
primary and secondary research. The technique and concepts used during primary
research in order to arrive at findings; which are also dealt with and lead to a logical
Research process
particular issue or problem with systematic planning is known as research process. This
process involves several steps for complete analysis of the research problem. These steps
are required for identifying and analyzing important information about a research topic.
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Research design
A research design is the specification of methods and procedure for acquiring the
information needed. It is the overall operational pattern or framework of the project that
I propose to first conduct an intensive secondary research to understand the full impact
and implication of the industry, to review and critique the industry norms and reports, on
which certain issues shall be further taken up in the next stage of exploratory research.
This stage shall help me to restrict and select only the important question and issue,
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The various tasks that I have undertaken in the research design process are:
related to a population.
design which is predetermined and structured in nature. It is used for casual or conclusive
Here, since the study is based on the objectives, therefore, I am using exploratory
research design.
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Exploratory research
1) Primary Data
2) Secondary data
3) Sampling
Target population- the population or universe represents the entire group of units which
is the focus of the study. Thus, the population could consist of all the persons in the
In this study, population size is the total number of retailers we contacted i.e, 100.
Sample technique- Random / probability sampling technique is used. Under this kind
of sampling technique, every item of the universe has an equal chance of inclusion in the
sample. Here it is blind chance alone that determines whether one item or the other is
selected.
Collection of Data
Data collection is done with a purpose of gathering information about the topic being
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information to reach a particular solution. It helps the managers in recording, analysing,
Primary data
New data gathered to help solve the problem at hand. As compared to secondary data
questionnaire. Qualitative or quantitative data that are newly collected in the course of
research, Consists of original information that comes from people and includes
information gathered from surveys, focus groups, independent observations and test
results. Data gathered by the researcher in the act of conducting research. This is
contrasted to secondary data which entails the use of data gathered by someone other than
Secondary data
Information that already exists somewhere, having been collected for another purpose.
Sources include census reports, trade publications, and subscription services. Data that
have already been collected and published for another research project (other than the one
at hand). There are two types of secondary data: internal and external secondary data.
Information compiled inside or outside the organization for some purpose other than the
current investigation. Data that have already been collected for some purpose other than
the current study. Researching information which has already been published. Market
information compiled for purposes other than the current research effort; it can be
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internal data, such as existing sales-tracking information, or it can be research conducted
by someone else, such as a market research company or the U.S. government. Published,
Sample procedure
Judgmental sampling has been taken as sample procedure for conducting research work.
Under this sampling, every item of the universe has an equal chance of inclusion in the
sample.
Types of questionnaire
MOLE often have evaluation or survey tools built into them (See also Electronic
Questionnaires).
data that can be analyzed quantitatively for patterns and trends. The agenda is entirely
predetermined by the evaluator and provides little flexibility for respondents to qualify
their answers.
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Unstructured questionnaires, whilst still having a structured sequence and focus
predetermined by the evaluator, are based on open questions allowing respondents the
freedom to answer in their own words and therefore to provide greater qualification in
their response.
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FINDINGS
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FINDINGS
87% respondent said that they have idea of purchasing Amul products but 13% are not.
77% respondent said that they have ever purchase product of Amul but 23% are not.
23% respondent said that they decide to purchase the product of Amul by TV
25% respondent said that they have see advertisement of Amul product weekly, 33%
57% respondent said that they have purpose to visit product purchasing brand goods,
23% purchasing local goods, 11% only gathering information and 9% others.
32% respondent said that they have attractive features that buy Amul product Quality,
71% respondent said that Amul’s product have changed the way the marketing strategy
89% respondent said that they suggest Amul products to others yes but 11 said no.
7% respondent said that they rate your present Amul product performance poor, 23%
37% respondent said that they were using Amul, 32% Parag, 23% Gyan and 8% others.
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LIMITATION
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LIMITATION
Though, best efforts have been made to make the study fair, transparent and error free.
But there might be some inevitable and inherent limitations. Though outright measure are
It was not possible to cover each and every respondent due to time constrains.
Unwillingness on the part of the customers to disclose the information as per the
questionnaire.
The decisiveness on the part of the customers regarding some question hence difficulty
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CONCLUSION
51
CONCLUSION
The customers of Amul are brand loyal with only a small percent want to shift over to
other brands. Trying of other brands by customers is mainly because the customer wants
Due to high brand loyalty the customers of Amul recommend its product to others.
The customers are satisfied with the product range of Amul product.
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SUGGESTIONS AND
RECOMMENDATION
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SUGGESTIONS AND RECOMMENDATION
The brand loyalty for more Amul can be increased if the Quality and appearance of the
products are given due attention because Parag has captured a major share of milk
industry.
The switch over of the customers can be prevented if more of new products are launched
more frequently like Parag which launches new products with slight variations from the
previous.
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REFERECES
55
REFERENCES
BOOKS AUTHORS
Websites
www.amul.com
www.google.com
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