Marketing Strategy of Amul

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INTERNSHIP REPORT

ON
“Marketing Strategies of Amul”

A report submitted in partial fulfillment of the requirement of award of degree of


MASTER OF COMMERCE
Amul The Taste of India
Duration- 01.11.2021 to 30.11.2021

Submitted by:
Maheen Akhtar
Roll No. 200731780016
M.com (Applied) 3rd Sem.
Session: 2021-22

SHIA PG COLLEGE

UNIVERSITY OF LUCKNOW

1
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

research which is a part of my M.COM program.

 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

information which forms a part of this report.

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

me a lot to complete this project report.

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

but informally it is a sacred place for me as it’s my first practical exposure to an

organization to know and get aware to an organizational real practical stressful

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

separate topic to be asked in detail in viva-voice conducted by external So far I have

completed 4 semester examination. Thus study will provided me a better opportunity to

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

have been stated which if possible to be reviewed.

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EXECUTIVE SUMMARY

While working in the organization I was trained as a relationship personnel being

engaged into various jobs such as dealing with clients, answering customer queries

through telephonic conversations and providing them knowledge about new schemes and

converting them into our customers.

As my summer internship project I was given the topic on “Marketing strategy of

Amul”. The project work was for this research was conducted in Lucknow to study the

customer satisfaction level.

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

and retail services.

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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

6
COMPANY PROFILE

7
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

word amul  is derived from the Sanskrit word amulya, meaning rare, valuable .[3] The co-

operative was initially referred to asAnand Milk Federation Union Limited hence the

name AMUL.

Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative

Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3 million

milk producers in Gujarat.

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

India and has ventured into markets overseas.

Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–

2006), is credited with the success of Amul.

History

Amul the co-operative registered on 1 December 1946 as a response to the exploitation of

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.

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 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.[8] 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.

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, 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

symbolised the pride of swadeshi production."

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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

Department, Punjab Agricultural University Ludhiana), Dr. Bondurant (visiting faculty)

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

then formed under the guidance of Kashyap.

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About GCMMF

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. [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

population of tribal folk and people belonging to the scheduledcastes.[15]

The three-tier "Amul Model"

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

programme. It is known as the 'Amul Model' or 'Anand Pattern' of dairy cooperatives.

The main functions of the VDCS are:

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 Collection of surplus milk from the producers of the village and payment based

on quality and quantity,

 Providing support services to the members like veterinary first aid, artificial

insemination services, cattle-feed sales, mineral mixture sales, fodder and fodder seed

sales, conducting training on animal husbandry and dairying,

 Selling liquid milk for local consumers of the village,

 Supplying milk to the District Milk Union.

State Cooperative Milk Federation (Federation)

The main functions of the federation are as follows:

 Marketing of milk and milk products processed/manufactured by Milk Unions,

 Establish a distribution network for marketing of milk and milk products,

 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,

management support and advisory services,

 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,

 Arranging for common purchase of raw materials used in manufacture/packaging

of milk products,

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 Decide on the prices of milk and milk products to be paid to Milk Unions,

 Decide on the products to be manufactured at Milk Unions and capacity required

for the same.

 Conduct long-term milk production, procurement and processing as well as

marketing planning.

 Arranging finance for the Milk Unions and providing them technical know-how.

 Designing and providing training in cooperative development and technical and

marketing functions.

 Conflict resolution and keeping the entire structure intact.

Today, there are around 176 cooperative dairy unions formed by 125,000 dairy

cooperative societies, having a total membership of around 13 million farmers on the

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

in Maharashtra, Saras in Rajasthan or a Nandini in Karnataka. This process has created

more than 190 dairy processing plants spread all over India with large investments by

these farmers' institutions. These cooperatives today collect approximately 23 million kg

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

Flood to more than 60 MMT at the end of Operation Flood.

Thus, an incremental return of Rs. 400 billion annually have been generated by an

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

to 222 gm per day in 2000.

The Amul brand

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

more than 700000 retailers.

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,

clarified butter (Ghee) and indigenous sweets.

The major markets are USA, West Indies, and countries in Africa, the Gulf Region,

and SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China, and

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

Synovate to find out Asia's top 1000 Brands.

In 2013, Amul was named the Most Trusted brand in the Food and Beverages sector

in The Brand Trust Report, published by Trust Research Advisory,[19] where as in the

2014 edition of The Brand Trust Report,[20] Amul is ranked 7th in the list of India's Most

Trusted Food and Beverages brands.

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ORGANIZATION CHART
PCDF has ten divisions. Every division has manager who is responsible to General

Manager. G. M. of every division is responsible to Managing Director.

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

attend to the problems of the units/unions.

The divisional heads shall discharging their duties within the policy frame laid

down by the Managing Director and subject of his control & supervision only

important performance and control reports , matters , questions involving exception to

approved policy , systems development and other important matters need to be put

up before the Managing director.

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

plans and system and contradiction occurs.

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

section the MSD.

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IV. PRODUCTS RANGE

Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti

Dahi, Yoghurt, Buttermilk, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns,

flavoured milk, basundi, Amul Pro brand and others. Amul PRO is a recently launched

brown beverage just like bournvita and horlicks offering whey protein, DHA and

essential nutrients. In January 2006, Amul launched India's first sports drink, Stamina,

which competes with Coca Cola's Powerade and PepsiCo'sGatorade.

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.

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation

Marketing Award for 2007.

UHT products and impact

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

life UHT products like Amul Taaza,which are packed in Tetra Pak cartons,which

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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

milk,without the need of maintaining cold supply chains.

Any Time Milk (ATM) Machine

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"

between George Fernandes and Atal Bihari Vajpayee.

In 1966, Amul hired Sylvester, then 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.[25] 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 chairmanVerghese 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 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

judgment of Delhi High Court and criminalising homosexuality again.

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Amul hired DraftFCB+Ulka for the brands of Amul milk, chocolates, paneer, ghee, ice-

cream.

In popular culture

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. It starredSmita Patil, Girish Karnad, Naseeruddin

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

truckloads to watch 'their' film, making it a commercial success. Manthan was chosen for

the 1977 National Film Award for Best Feature Film in Hindi.

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COLLECTION AND DISTRIBUTION OF MILK

The report present detailed information about the Lucknow Milk Union

(Amul ) its evolution and organization structure.

Dairy work happens through various procedures. Basic of the dairy work is

like this structure –

 Milk Collection Mechanism

 Milk Distribution Mechanism

Collection of Milk Dairy (Reprocessing Distribution


of milk) of milk

Amul is the brand name of products of Luknow Producers Co-operative

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 cheaper price. “AMUL”

does maximum utilization of milk to increase milk efficiency in reasonable costs of

production and hence overall cost.

‘AMUL’ work may be divided into 3-subunites.

a. Marketing

b. Administration and Production

c. Industry Unit

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Administration co-ordinates various function , looks after salaries and wages and

various human resources problems of production. The industry unit is engaged in

the function of producing various industrial products like milk , butter etc.

Whereas the marketing is engaged in distribution and proper sale of these

products.

“PUBLIC RELATION means the efforts made by industries , unions ,

corporation , occupations , government or other organizations to establish productive

relationship report and partnership”

PUBLIC RELATION is popularly defined as on the other basis of acceptance of

well-organized efforts by society for the welfare and development of entire

community is termed as ‘PUBLIC RELATION’.

23
DAIRY SUPPLY CHAIN STRUCTURE

Member Farmer

Society

Chilling Center

Dairy

Inter Dairy Transfer

Milk Other Milk


Product

Parlour Institution Exclusive Redistribution


Agent Stockist

Vender Retailer

CUSTOMER

24
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.

25
COLLECTION OF MILK

SURVEY

Firstly, LPCM union does some survey in rural areas. The survey team tells about

the societies activities to that farmer who has sufficient milk.

ROUTES AND SOCIETIES

Initially , AMUL societies were established on those routes where there is

possibility of milk. Milk societies cater to a cluster of 6-10 villages each. They are

well connected through road network to facilitate milk transportation to larger

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

approximately 50 liters. Afterwards, the milk is sent to various laboratory processes.

The quality of milk is also tested there.


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Lab workers test the milk for FAT & SNF percentage and also determine whether

the milk is fresh or sour.

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.

AIMS OF L.P.C.M. UNION LTD:

Co-operative union has some target which they fulfill every year.

The aims are:-

1. No. of Societies

2. Total no of members

a) Number of ladies member

b) Number of SC,ST Caste Ladies

c) Number of SC,ST Caste Members

d) Number of Backward Caste Members

e) Number of I.R.D.P. Members

3. No of Farmer Members

4. Animal health primary treatment aid

5. Vaccination

6. Sterility Prohibition

7. Balance diet of animals

8. Production of green grass

9. Artificial breeding

10. Quantity of seeds (in kg.)

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11. Purchasing of liquid milk and products of milk

a) Average of liquid milk purchasing (in thousand liters)

b) Purchasing of Ghee (in thousand liters)

c) Butter (in thousand liters)

12. Benefits of society / Distribution of bonus

(a) Pure benefits of society numbers

(b) Societies number (bonus)

(c) Distribution of Bonus Money (in lakh Rs.)

DISTRIBUTION OF MILK

The 4 P’s Are always influencing the advertising process and decision.

These 4 P’s are:

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 ultimate consumers.

The term channel of distribution refers to network of middleman through whom

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

common channel for consumer’s goods is manufacturer – wholesaler – retailer –

consumer.

For industrial products it may be manufacturer – sole-selling agents – distributors –

dealer and finally users.

29
PROCESS OF DISTRIBUTION

DAIRY DISTRIBUTION SYSTEM AN OVERVIEW: -

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

difference in the distribution structure is for the following reasons.

 Different time of sale

 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

FMCH distribution structure.

30
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

a huge demand for milk.

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

regular retail outlets selling milk too.

Dairy use milk truck or van (painted with Logo and Slogan) for distributing the

products to retailers.

CHANNEL OF DISTRIBUTORS

Some types of agent are like that:-

 Retailer

 Bakery or confectionary shop

 Road side seller

 Hotels / Institutional

31
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

other brand of milk.

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 -

 Approximate purchase by the agent’s en-route. Purchase governs the time

taken for loading / unloading at any given outlet to be kept for that

route.

 Terrain / accessibility of the outlets.

 Distance between the outlets. The terrain / accessibility and distance between

outlets determines the time taken for inter outlet travel.

 Institutions est. en-route. Institutions have their own systems for entry / exit

and documentation hence , routes having higher no. Of institutions would

have lesser no. of outlets for the route.

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

have been identified for institutional sales .

CONTAINERIZATION

CONTAINERIZATION of vehicle is required to facilitate stacking of crates that

fast empty and milk crates movement at retail points while maintaining the

temperature inside vehicle. Container doesn’t become a bottleneck in fast moment

of vehicles (fast movement is required to finish milk supply early in night and to

preserve the quality of milk).

Milk pouches are left at shopkeeper premised in night to be sold only in

morning. Most of the retailer doesn’t have freezer for storing milk.

The delivery of milk crates is in three stages.

 Crates are downloaded from the container.

 Crates are bought near the shop entrance.

 Shop keeper puts creates inside the shop /deep freezer.

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

increasing competition , all organization would have to think of :

 Keeping the end customer happy.

 Providing the best quality product and service.

 Maintaining a social , friendly and innovative corporate

image.

33
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 ,

these factor could become a leveler for any organization.

TYPE OF VEHICLE

1. BIG VEHICLE Tata 407 DCM Toyota

2. SMALL VEHICLE Tempos

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

According to the modern professional activities , computer is being used in the

different works of the union. A new electric milk-weighting machine is also

planted which is joined with the computers. The computer also records the

amount of milk collected under the society ’ name.

34
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.

35
OBJECTIVE OF STUDY

36
OBJECTIVE OF STUDY

1) To study marketing strategy of Amul. 

2) To study the satisfaction level with marketing strategy of Amul. 

3) To study the views of corporate customer for marketing strategy . 

4) To study impact of marketing strategy on Amul . 

5) How to Promote the marketing strategy of Amul.

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FUTURE SCOPE

The scope formulation is the first step to a successful Research process. Project

undertaken the problem of analyzing the Marketing strategies of Amul.

IMPORTANCE AND USE OF THE STUDY

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

products which should be beyond competitors comprehension.

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

prices from time to time & from product to product.

Special reference is made to the improvement of ability of product in terms of

packaging& product innovations & advertisement always means to cut down

competitors.

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RESEARCH

METHODOLOGY

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RESEARCH METHODOLOGY

Research can be defined to search for knowledge or any systematic investigation to

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

been applied within a discipline’.

Research Methodology establishing a framework of evaluation and revaluation of

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

deduction towards the analysis and results.

Research process

Discovering and analyzeing a range of significant and reliable information about a

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.

The steps of research process are as;

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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

stipulates what information is to be collected from which sources by what procedure.

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,

which inhabit growth and segmentation in the industry.

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The various tasks that I have undertaken in the research design process are:

1) Defining the information need

2) Design the exploratory, descriptive and casual research.

3) Types of research design

4) Exploratory research design

5) Descriptive and diagnostic research design

6) Experimental/ casual research design

Types of research design

1) Exploratory research design- exploratory research design aims to get a better

understanding of the problem by explaining the concepts and developing hypothesis

regarding the research study.

2) Descriptive research design- unlike exploratory research, the aim of descriptive

research is to describe the characteristics of a phenomenon. It describes various aspects

related to a population.

3) Experimental research design- experimental research design is a type of research

design which is predetermined and structured in nature. It is used for casual or conclusive

research, which is concluded quantitatively.

Here, since the study is based on the objectives, therefore, I am using exploratory

research design.

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Exploratory research

The method I used for exploratory research was,

1) Primary Data

2) Secondary data

3) Sampling

A process used in statistical analysis in which a predetermined number of observations

will be taken from a larger population is called 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

country, or those in a particular geographical location, or a special indigenous or

economic group, depending on the purpose and coverage of the study.

In this study, population size is the total number of retailers we contacted i.e, 100.

Sample- sample is a portion of the population which is examined with a view to

estimating the characteristics of the population. It is a subset containing the

characteristics of a larger population.

Sample size is simply the number of participating retailers 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

studied. It is a process of finding appropriate sources of information and compiling the

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information to reach a particular solution. It helps the managers in recording, analysing,

and making decisions regarding significant issues.

Primary data

New data gathered to help solve the problem at hand. As compared to secondary data

which is previously gathered data. An example is information gathered by a

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

the researcher information that is obtained directly from first-hand sources by means of

surveys, observation or experimentation.

Primary data is basically collected by getting questionnaire filled by the respondents.

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,

already available data that comes from pre-existing sets of information, like medical

records, vital statistics, prior research studies and archival data.

Secondary source of data used consists from websites

Sample size: The sample size is 100

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.

Data Collection Instrument:

I have choose questionnaire in my study as Data Collection Instrument.

Types of questionnaire

Questionnaires can be paper-based, or electronic. Virtual learning environments such as

MOLE often have evaluation or survey tools built into them (See also Electronic

Questionnaires).

Structured questionnaires are based predominantly on closed questions which produce

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

advertisement, 36 personal recommendation, 11% special offer, 17% radio advertising,

7% from News paper and 6% word of mouth.

 25% respondent said that they have see advertisement of Amul product weekly, 33%

monthly, 25% daily, but 17% none.

 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,

49% Economy, 19% Taste.

 91% respondent said that they satisfied buy 9% no.

 71% respondent said that Amul’s product have changed the way the marketing strategy

towards milk product Yes but 29% said no.

 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%

satisfactory, 27% fair, 21% good, 13% very good, 9% excellent.

 37% respondent said that they were using Amul, 32% Parag, 23% Gyan and 8% others.

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LIMITATION

49
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

undertaken to make the report most accurate.

The limitation of the survey are narrated below:

 The project is valid for Lucknow city only.

 It was not possible to cover each and every respondent due to time constrains.

 There may be some biased response form the respondents

 Some respondents did not provide the full data.

 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

faced in recording and analyzing the data.

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CONCLUSION

51
CONCLUSION

The report comes to the following 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

to try something new.

 The performance of Amul is fair in comparison to Parag and other

 Economy is the basic feature influencing to built brand Image.

 The competition of Amul is majorly Parag.

 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 recommendations are-

 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.

 Quality are good but it still needs improvements.

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REFERECES

55
REFERENCES

BOOKS AUTHORS

 Marketing Management : Philip Kotler

 Marketing Research : D. D. Sharma

 Research Methodology : C. R. Kothari

Websites

 www.amul.com

 www.google.com

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