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TITLE PAGE
SUMMER INTERNSHIP PROJECT REPORT ON GCMMF

Study of Retailer Satisfaction towords Amul Masti Dahi in


Baner Region
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SUMMER INTERNSHIP PROJECT REPORT ON GCMMF


“Study of Retailer Satisfaction towords Amul Masti Dahi in Baner Region”

SUBMITTED BY
MOHIT LOWANSHI
Roll Number – MM2123360

FOR THE DEGREE OF


MASTER OF BUSSINESS ADMINISTRATION WITH MAEKETING SPECIALIZATION

UNDER THE GUIDANCE OF


Prof. Dr. Binod Sinha

SRI BALAJI UNIVERSITY PUNE


BALAJI INSTITUTE OF MODERN MANAGEMENT

ACADEMIC YEAR 2022–2023


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DECLARATION

I, MOHIT LOWANSHI ROLL NUMBER – MM2123360 OF BALAJI INSTITUTE OF


MODERN MANAGEMENT (SRI BALAJI UNIVERSITY PUNE), HEREBY DECLARE
THAT I HAVE COMPLETED THE PROJECT ENTITLED “Study of Retailer Satisfaction
towords Amul Masti Dahi in Baner Region” IN PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR THE THIRD SEMESTER OF THE MASTER OF BUSSINESS
ADMINISTRATION WITH SPECIALIZATION IN MARKETING COURSE FOR THE
ACADEMIC YEAR 2022-2023 (BATCH 2021 – 2023) THIS PROJECT IS THE RESULT
OF ORIGINAL WORK DONE BY ME ON GROUND ZERO.

I guarantee underwrite my work to be authentic and original to the best of my knowledge in


all respects of the process carried out during the project tenure. My learning experience at
Amul, under the guidance of has been truly enriching and is based on my on the field
experience.

DATE: - NAME & SIGNATUR


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CERTIFICATE

I certify that the work incorporated in the Research Report titled, “Study of Retailer Satisfaction
towords Amul Masti Dahi in Baner Region” submitted by Mohit Lowanshi is his original work
which was carried out by the candidate under my supervision and guidance. I further certify that the
above work was duly approved by me, and this work is the result of candidate’s independent study
and effort. Such material has been obtained from other sources has been duly acknowledged in the
thesis.

Date:8 July 2022 (Signature of Faculty Mentor)

Place - Pune

(Signature of Research Guide)


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ACKNOWLEDEGEMENT

I EXPRESS MY SINCERE THANKS TO DIRECTOR OF BALAJI INSTITUTE OF


MODERN MANAGEMENT - DR. ARCHANA SHRIVASTAVA AND PROF. BINOD
SINHA SIR FOR HIS VALUABLE GUIDANCE AND SUPPORT EVERY NOW AND
THEN IN DOING THIS PROJECT.
I WISH TO TAKE THE OPPORTUNITY TO EXPRESS MY DEEP SENCE OF
GRATITUDE TO DR. APOORVA BHATNAGAR MA’AM AND DR VINAYAK
BHAVSAR SIR FOR THEIR INVALUABLE GUIDANCE AND SUPPORT IN THIS
ENDEAVOUR. THEY HAVE BEEN A CONSTANT SOURCE OF INSPIRATION.
I OWE MY SPECIAL THANKS TO MISS SHURUTI MA’AM, HR, GCMMF, AND MISS
ROHINI MA’AM TERRITORY SALES IN-CHARGE OF AMUL, GCMMF AND
DISTRIBUTORS AND RETAILERS OF AMUL FOR THEIR ENCOURAGEMENT AND
THEIR VALUABLE GUIDANCE AND SUPPORT.
FINALLY, IT IS THE FOREMOST DUTY TO THANK ALMIGHTY GOD FOR
ABUNDANT BLESSINGS AND TO ALL MY RESPONDENTS, FAMILY & FRIENDS
AND TEACHERS WHO HAVE HELPED ME DIRECTLY OR INDIRECTLY IN
COMPLETING MY FIELD WORK, WITHOUT WHICH THIS PROJECT WOULD NOT
HAVE BEEN SUCCESSFUL.

Name & Signature


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PREFACE

A project is a scientific and systematic study of real issues on a problem with the application
of management, concepts and skills. The study can deal with small or big issues in any
division of an organization. It can be a case study where a problem has been dealt with,
through the process of management. The essential equipment of a project is that, it should
contain scientific collection of a data, analysis and interpretation of data leading to valid
conclusions. Summer training is an essential part in PGDM/ MBA curriculum. It enables the
student to share the real experience in industry. I have done my summer training in Amul for
the period of 2 months in Pune. I underwent the project under the heading " Study of Retailer
satisfaction towords Amul Masti Dahi in Baner Region ". This summer internship project was
carried out under the supervision and guidance of Miss Shruti ma’am, HR, GCMMF, and Mr.
Akshay Sir territory sales in-charge of Amul. They constantly helped me in providing
direction and guided me in completion of my day-to-day tasks.
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Sr no. Content Page no.

1 Title of project 1

2 Certificate/ letter of authorization 4

3 Acknowledgment 5

4 Executive summary 8

5 Contextual Background 10
a) Industry Scenario
b) Market Scenario
c) Company Brief
d) Competitor Analysis
e) Role in Company

6 Research problem 42

7 Objective 43

8 Hypothesis 44

9 Literature Review 45

10 Research Methodology 46
a) Research Type
b) Sample Size
c) Sample Method
d) Questionnaire
e) Data Collection Method
11 Data Analysis 52

12 Findings and Interpretation 60

13 Recommendation 61

14 Limitation 62

15 Conclusion 63
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EXECUTIVE SUMMARY

Imagine going for a morning walk in the wee hours to a park, making a brief stopover and
coming back home with a belly-full of tasty flavoured milk and hot pizza topped with cheese!
Defeats the purpose of the walk, but may make you feel on top of the world. Now, imagine
the CEO of a dairy company saying, “Ours is not a food company, it is an IT company in the
food business. The most efficient way of building links between milk producers and
consumers so as to provide the best returns for both is through IT and innovation.” Or better
still, imagine a cooperative movement that has delivered a Rs. 3900 crore turnover and has
been planning actively to take it up to the 10000 crore mark. Amul India limited, and its team
of energetic professionals have planned to take on HLL in ice- creams, Cadbury in
chocolates, and NDDB in a verbal duel to uphold the cooperative movement. On top of all
this, set up a retailing network that would be the toast of the town. This final project was
undertaken with the objective of “Study of Retailer satisfaction towords Amul Masti Dahi in
Baner Region” In the year 1946 the first milk union was established. This union was started
with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the
union was known as KAIRA DISTRICT CO- OPERATIVE MILK PRODUCERS’ UNION.
This union selected the brand name AMUL in 1955. The brand name Amul means
“AMULYA”. This word derived form the Sanskrit word “AMULYA” which means
“PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”.
Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk
Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul
Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India.
(The total sale is Rs. 39 billion in 2020). Today Amul is a symbol of many things like of the
high-quality products sold at reasonable prices, of the genesis of a vast co-operative network,
of the triumph of indigenous technology, of the marketing savvy of a farmers' organization.
And have a proven model for dairy development (Generally known as “ANAND
PATTERN”).
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Introduction

Since the turn of 19th century, cooperatives have existed as dominant forms of organizations
in the dairy industry around the world. Sometimes they have played a role of developing
infant industry while at other times they have been used to strengthen weak production bases
in an environment where market failures tends to be higher for marginal producers. In some
cases, a network of small producers have organized themselves to better market their
products. Management of these cooperatives have also led to some interesting managerial
insights for managers in emerging as well as developed economies. Large emerging
economies such as India and China, have complexities that range from development of
markets, where the largest segments of population is the one which has low purchasing
power, to integration of low cost suppliers who are predominantly very small .For firms that
aspire to conduct substantial business in such markets, such complexities have to be
reorganized and then overcome. The challenge is to understand the linkages between markets
and society. This would also require development of a new business model that helps a firm
to grow in such environments. The Kaira district Milk Cooperative Union or AMUL (Anand
Milk Union Limited) in India is an example of how to develop a network of firms in order to
overcome the complexities of a large yet fragmented market like those in emerging
economies by creating value for suppliers as well as customers. AMUL has led the milk dairy
revolution in India that has now emerged as one of the largest milk producers in the world.
DR. VERGHESE. KURIEN, FATHER OF WHITE REVOLUTION Dr. V. Kurien was Born
on 26 November 1921 & died on 9 September 2012. He was Also known “MILKMAN OF
INDIA”. Dr. Kurien, was the architect of India';s White Revolution, which helped India
emerge as the largest milk producer in the world. Founder Chairman of the National Dairy
Development Board (NDDB) from 1965 to 1998, the Gujarat Co- operative Milk Marketing
Federation Ltd. (GCMMF), from 1973 to 2006 and the Institute of Rural Management
(IRMA) from 1979 to 2006, his professional life has been dedicated to empowering the
Indian farmers through co-operatives. Dr. Kurien has helped to lay the foundation of
democratic enterprises at the grass roots. He believed that by placing technology and
professional management in the hands of the farmers, the standard of living of the people in
the rural areas at the most all the backward People. The cooperative movement, he helped to
create became a model not only for India, but for developing countries throughout the world.
The Operation Flood Programme, of which Milk Producers'; Cooperatives were the central
plank, emerged as India';s largest rural employment programme and unleashed the larger
dimension of dairy development. Dr. Kurien was the undisputed 'Milkman'; of India. Born on
November 26, 1921 at Kozhikode, Kerala, he graduated in Science from the Loyola College
in 1940 and obtained hisdegree in Engineering from the Guindy College of Engineering in
Chennai. After a stint at TISCO, Jamshedpur, he obtained the Govt. of India';s scholarship to
study Dairy Engineering. After some specialized training at the Imperial Institute of Animal
Husbandry & Dairying, Bangalore, he left for the United States where he completed his
Masters degree in Mechanical Engineering with Dairy Engineering as a minor subject from
the Michigan State University in 1948.
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CONTEXTUAL BACKGROUND
INDUSTRY SCENARIO
Introduction of FMCG industry as per 20-2021

Fast-moving consumer goods (FMCG) sector is India’s fourth largest sector with household
and personal care accounting for 50% of FMCG sales in India. Growing awareness, easier
access and changing lifestyles have been the key growth drivers for the sector. The urban
segment (accounts for a revenue share of around 55%) is the largest contributor to the overall
revenue generated by the FMCG sector in India. However, in the last few years, the FMCG
market has grown at a faster pace in rural India compared to urban India. Semi-urban and
rural segments are growing at a rapid pace and FMCG products account for 50% of the total
rural spending.
Market Size The retail market in India is estimated to reach US$ 1.1 trillion by 2020 from
US$ 840 billion in 2017, with modern trade expected to grow at 20 25% per annum, which is
likely to boost revenue of FMCG companies. Revenue of FMCG sector reached Rs. 3.4 lakh
crore (US$ 52.75 billion) in FY18 and is estimated to reach US$ 103.7 billion in 2020. From
October 2020 to December 2020, the FMCG market rose 7.1%, driven by food items, health,
hygiene and rural areas. Rise in rural consumption will drive the FMCG market. It
contributes around 36% to the overall FMCG spending. In the third quarter of FY20 in rural
India, FMCG witnessed a double-digit growth recovery of 10.6% due to various government
initiatives (such as packaged staples and hygiene categories); high agricultural produce,
reverse migration and a lower unemployment rate.

Investments/ Developments of Industry


The Government has allowed 100% Foreign Direct Investment (FDI) in food processing and
single-brand retail and 51% in multi-brand retail. This would bolster employment, supply
chain and high visibility for FMCG brands across organised retail markets thereby bolstering
consumer spending and encouraging more product launches. The sector witnessed healthy
FDI inflows of US$ 17.8 billion from April 2000 to September 2020. Some of the recent
developments in the FMCG sector are as follows:
 In April 2021, Rasna launched affordable immunity boosting syrup concentrates,
comprising Vitamin E, B12, B6, Selenium and Zinc.
 In March 2021, ITC Ltd. launched milkshakes and cakes to expand in categories such
as chocolates and staples.
 In March 2021, Sanjay Ghodawat Group launched RIDER, an energy drink. It is
available across all modern retail formats such as supermarkets, general stores and e-
commerce platforms.
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 In February 2021, Nestle India announced plans to reach ~1.2 lakh villages (with each
having population of over 5,000) over the next 2-3 years.
 In February 2021, Food and snack company, Haldiram's partnered with Africa's
Futurelife to bring its nutritional food product range to India. The two companies
launched a range of four products—Smart Foods, Smart Oats and Ancient Grains,
Crunchy Granola and High Protein
 In January 2021, Tata Consumer Products announced that it is looking for ways to
add more of its beverages’ portfolio onto a direct-to-consumer platform to capture the
urban online market.
 In January 2021, Tata Consumer Products introduced two new products, TATA Tea
Tulsi Green and TATA Tea Gold Care, and reformulated its existing Tetley Green
Tea, with added Vitamin C.
 In January 2021, Dabur India decided to foray into the ‘cow ghee’ category. These
product will be prepared from milk sourced from indigenous cows bred in Rajasthan.
 In January 2021, Dabur India decided to foray into the ‘cow ghee’ category. These
product will be prepared from milk sourced from indigenous cows bred in Rajasthan.
 In January 2021, Del Monte has launched a special 1 litre pouch pack in India,
priced at Rs. 250 (US$ 3.42), thereby making olive oil affordable to consumers.
 In January 2021, FMCG businesses in India are planning to expand their oral care
portfolio by entering new and niche categories such as mouth sprays, ayurvedic
mouth cleansers and mouthwashes to meet the rising consumer demand for hygiene
products. o For example, Pulling oil, an ayurvedic concoction used as a morning oral
cleansing ritual based on centuries-old Ayurvedic regimen, was launched by
companies such as Colgate Palmolive (India) Ltd. and Dabur India.
 In December 2020, Godrej Consumer Products Limited (GCPL), under its Godrej
ProClean brand, has ventured into home cleaning products to meet the rising demand
for cleaning and hygiene products among Indian consumers. The home cleaning
products segment, which includes branded floor, toilet and bathroom cleaners, is
estimated to be ~ Rs. 2,600 crore (US$ 354.05 million).
 FMCG companies are focusing on strengthening their e-commerce engagement. An
Ayurveda baby care range has been introduced by Dabur, which will be sold only on
e-commerce platforms. With its contribution expanding from 1.5% to 5.6%, the e-
commerce division of the group has more than doubled over the previous year.
Similarly, in the first quarter of FY21, Marico's e-commerce sector has grown 37%
YoY, while Emami’s e-commerce business doubled to >100%

Government Initiatives
Some of the major initiatives taken by the Government to promote the FMCG sector in India are as
follow:

 On November 11, 2020, Union Cabinet approved the production-linked incentive (PLI)
scheme in 10 key sectors (including electronics and white goods) to boost India’s
manufacturing capabilities, exports and promote the ‘Atmanirbhar Bharat’ initiative.
 Developments in the packaged food sector will contribute to increased prices for farmer and
reduce the high levels of waste. In order to provide support through the PLI scheme, unique
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product lines—with high-growth potential and capabilities to generate medium- to large-


scale jobs—have been established.
 The Government of India has approved 100% FDI in the cash and carry segment and in
single-brand retail along with 51% FDI in multi-brand retail.
 The Government has drafted a new Consumer Protection Bill with special emphasis on
setting up an extensive mechanism to ensure simple, speedy, accessible, affordable and
timely delivery of justice to consumers.
 The Goods and Services Tax (GST) is beneficial for the FMCG industry as many of the FMCG
products such as soap, toothpaste and hair oil now come under the 18% tax bracket against
the previous rate of 23-24%. Also, GST on food products and hygiene products have been
reduced to 0-5% and 12-18% respectively.  GST is expected to transform logistics in the
FMCG sector into a modern and efficient model as all major corporations are remodelling
their operations into larger logistics

Road Ahead
Rural consumption has increased, led by a combination of increasing income and higher
aspiration levels. There is an increased demand for branded products in rural India. The rural
FMCG market in India is expected to grow to US$ 220 billion by 2025 from US$ 23.6 billion
in FY18.
On the other hand, with the share of unorganised market in the FMCG sector falling, the
organised sector growth is expected to rise with increased level of brand consciousness,
augmented by the growth in modern retail.
Another major factor propelling the demand for food services in India is the growing youth
population, primarily in urban regions. India has a large base of young consumers who form
majority of the workforce, and due to time constraints, barely get time for cooking.
Online portals are expected to play a key role for companies trying to enter the hinterlands.
Internet has contributed in a big way, facilitating a cheaper and more convenient mode to
increase a company’s reach. The number of internet users in India is likely to reach 1 billion
by 2025. It is estimated that 40% of all FMCG consumption in India will be made online by
2020. The online FMCG market is forecast to reach US$ 45 billion in 2020 from US$ 20
billion in 2017.
It is estimated that India will gain US$ 15 billion a year by implementing GST. GST and
demonetisation are expected to drive demand, both in the rural and urban areas, and
economic growth in a structured manner in the long term and improved performance of
companies within the sector.
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Summary of FMCG industry


Fast moving consumer goods (FMCG) is the fourth largest sector in the Indian economy.
There are three main segments in the sector food and beverages, which accounts for 19% of
the sector; healthcare, which accounts for 31% of the share; and household and personal care,
which accounts for the remaining 50% share.
From October 2020 to December 2020, the FMCG market rose 7.1%, driven by food items,
health, hygiene and rural areas. E-commerce is likely to contribute 5% or US$ 4 billion to
FMCG sales by 2022
Indian online grocery market is estimated to exceed sales of about Rs. 22,500 crore (US$
3.19 billion) in 2020, a significant jump of 76% over the previous year. The gross
merchandise value (GMV) of the online grocery segment in India is expected to increase 18
times over the next five years to reach US$ 37 billion by FY25. As of February 2021, out of
39 Mega Food Park projects, 22 are operational, 15 are under implementation and 2 are in-
principle approval. Many FMCG brands partner with e-commerce platforms such as Dunzo,
Flipkart, Grofers and BigBasket to deliver products at the doorstep of consumers during the
COVID-19 pandemic.
FMCG companies are looking to invest in energy efficient plants to benefit the society and
lower cost in the long term. Dabur India has grown its rural network to over 52,000 villages
in March 2020, from 44,000 villages in March 2019. For 2020-21, the company aims to have
up to 60,000 villages. The sector witnessed healthy FDI inflows of US$ 17.8 billion from
April 2000 to September 2020.
In January 2021, Udaan raised US$ 280 million (~Rs. 2,048 crore) in funding from existing
and new investors, including Lightspeed Venture Partners and Tencent. With the latest
infusion of capital, Udaan has earned a total of US$ 1.15 billion to date. Although the
company did not reveal the valuation information, sources stated that the valuation exceeded
US$ 3 billion after this deal.
Growing awareness, easier access, and changing lifestyle are the key growth drivers for the
consumer market. The focus on agriculture, MSMEs, education, healthcare, infrastructure
and tax rebate under Union Budget 2019 20 was expected to directly impact the FMCG
sector. Initiatives undertaken to increase the disposable income in the hands of common man,
especially from rural areas, will be beneficial for the sector.
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Industry Orientation
Industry Overview
India is world’s largest producer of dairy products by volume, accounting for more than 13%
of world’s total milk production, and it also had world’s largest dairy herd. As the country
consumes almost all of its own milk production, India was neither an active importer nor an
exporter of dairy products prior to year 2000. However since the implementation of
Operation Flood Program, the situation changed significantly and imports of dairy products
reduced to very small quantities. From 2001, India has become a net exporter of dairy
products and after 2003 India’s dairy import has dipped while exports have increased at a fast
rate. Yet the country’s share in global dairy trade still remains at minor levels of 0.3 and 0.4
percent for exporters and importers respectively. This is due to direct consumption of liquid
milk by the producer households as well as the demand for processed dairy products that has
increased with the growth of income levels, which we have left little dairy surpluses for
export. Nevertheless, India consistently exports specialty products such as casein for food
processing or pharmaceuticals. The Indian dairy sector is also different from other dairy
producing countries as India place its emphasis on both cattle and buffalo milk. In 2010, the
government and National Dairy Development have drawn up a National Dairy Plan (NDP)
that proposes to nearly double India’s milk production by 2020. This plan will endeavor to
increase the country’s milk productivity, improve access to quality feeds and improve farmer
access to the organized market. These goals will be achieved through activities that focus on
increasing cooperative membership and growing the network of milk collection facilities
throughout India. Despite its huge production volume, India nevertheless faces a milk supply
gap due to increasing demand from a growing middle class population. Estimation suggests
that Indian dairy production is growing at a rate of 4 % per year, yet consumer demand is
growing at approximately double the rate. Apart from rapidly increasing demand for milk and
dairy products, other reasons such as the increased cattle feed cost and low availability of
dairy farm labor in the rural areas have also resulted in increase in the cost of production. On
the other hand, the strong pressure from European Markets to open up its market as well as
proposed free trade agreement with Australia and New Zealand may also put India’s dairy
sector in the risk of being jeopardies. In order to maintain the development of dairy industry,
focus needs to be placed on several areas. First cost of production has to be reduced through
increasing productivity of animals, improve animal health care and breeding facilities and
management of dairy animals. Second, Indian dairy industry needs to further develop proper
dairy production, processing and marketing infrastructure, which is capable of meeting
international quality requirements. Third, India can focus on buffalo milk based specialty
products, such as Mozzarella cheese, in order to meet the needs of the targeted consumers.
India is the world’s largest producer of dairy producer of dairy products by volume and has
the world’s largest dairy herd. The industry accounts for around 17% of world’s total milk
production with an anticipated milk production of 128 million ton, and is also world’s largest
consumer of dairy products, almost all of its own milk production. Dairying has been
regardless as one of the activities that could contribute to alleviating the poverty and
unemployment especially in the drought prone and rain fed areas. Milk production in India
has developed significantly in the past few decades from a low volume of 17 million ton in
1951 to 128 million ton in 2012. Currently, the Indian dairy market is growing at an annual
rate of 7%. Demand supply gap has become imminent in this due to changing in consumption
habits, dynamic demographic patterns and rapid urbanization of rural India. This means that
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there is an urgent need for the growth rate of the dairy sector to match the rapidly growing
Indian economy.
Key Statistics for India’s Dairy Industry Particulars Statistics Annual milk production (2011-
2012) 117 Million Ton Annual export volume (2008-09) 70,790 Ton Share of world dairy
production (2012) 17 % Number of milk producers’ cooperative unions 170 Number of local
dairy cooperatives 96,000 Number of state cooperatives 15 Per capita consumption
291gms/day Estimated percentage of dairy farmers in organized sector 30% % of dairy
produce consumed by unorganized sector 70% In 2009, around half of India’s total dairy
import by volume consists of butter and other dairy derived fats, followed by lactose and milk
powder. Import of milk and milk products is permitted without any quantitative limitations,
although tariff rate quotas apply and import permits are required. On the other hand, in terms
of exports, milk powders and baby food constituted more than 40 % of India’s total exports
by volume, followed by casein, milk and cream, butter and other fats and other processed
dairy products as described in pie chart below. Almost all of India’s dairy exports are meant
for Asian and African countries. In Asia, neighboring countries in South Asia and Middle
East are main buyers. Around half of the India’s exported dairy products are shipped to
Bangladesh, United States of America, United Arab Emirates and Singapore. Despite many
efforts, India had not been able to breach the European markets, while the market in South
America remains untapped. Export figures clearly illustrates that the Indian dairy export is
still developing and surpluses are neither systemic nor consistent. However, there future
outlook for export of Indian dairy products is rather positive, as indigenous milk products and
desserts are becoming popular with the ethnic population spread all over the world and there
is a strong likelihood that the export demand for these products will grow.

MARKET SCENARIO
Overview
A dairy cooperative, AMUL (Anand Milk Union Limited) – GCMMF (Gujarat Cooperative
Milk Marketing Federation) Limited In western India that has developed a successful model
for doing business in large emerging economy. It has been primarily responsible, throughout
its innovative practices, for India to become world’s largest producer of milk. Many of largest
emerging economies have underdeveloped markets and fragmented supply bases. Market
failures for many of these small producers are high. On other hand, the size of both, markets
and the suppliers is large. As a result, firms that identify appropriate business strategies that
take into account these characteristics are more likely to succeed in these markets. The
following are some key messages from AMUL’s success: -
 Firms in these environments need to simultaneously develop markets and suppliers to
synchronize demand and supply planning.
 Develop or become a part of network of producers to obtain scale economies.
 Focus on operational effectiveness to achieve cost leadership to enable low price strategy.
 Central focus to bring the diverse element together and a long-term approach are required.

In emerging economies different industrial sectors may be at different stages of development. In


some of the sectors all of above environmental characteristics faced may not hold. However, a
subset of strategies followed by AMUL would still be very useful. Thus, firms that are contemplating
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addressing large underdeveloped markets or have an intention of taking advantages of extensive but
marginal supplier base would still be benefitted.

PRODUCT STUDIED
1. Amul Cow Milk

Fig: Amul Cow Milk


Description Pasteurized cow milk.
Amul milk meets the FSSAI standards for the respective type of milk.

Composition FAT (%) 4.5 min


SNF (%) 9.0 min
Packing Polypack 500 ml, 1000 ml, 6 Litre.
Shelf Life 48 hours from the date of packing if kept under refrigeration below 8℃
Storage Condition Under refrigeration below 8℃
Product Features Amul milk is the most hygienic liquid milk available in the market.
It is pasteurized in state-of-the-art processing plant and pouch packs to
make it convenient available to the consumers.

Product application Direct consumption, Making of Tea or Coffee, Sweets, Khoa, Curd,
Buttermilk, Ghee
Table: Amul Cow Milk
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2. Amul Gold

Fig: Amul Gold


Description Pasteurized cow milk.
Amul milk meets the PFA standards for the respective type of milk.
Composition FAT (%) 6.5 min
SNF (%) 9.0 min
Packing Polypack 500 ml, 1000 ml, 2 Litre, 6 Litre
Shelf Life 48 hours from the date of packing if kept under refrigeration below 8℃
Storage Condition Under refrigeration below 8℃
Product Features Amul milk is the most hygienic liquid milk available in the market.
It is pasteurized in state of the art processing plant and pouch packs to make
it convenient available to the consumers.

Product application Direct consumption, Making of Tea or Coffee, Sweets, Khoa, Curd,
Buttermilk, Ghee
Table: Amul Gold
3. Amul Taaza

Fig: Amul Taaza


Description Pasteurized cow milk.
Amul milk meets the PFA standards for the respective type of milk.
Composition FAT (%) 3.5 min
SNF (%) 8.55 min
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Packing Polypack 500 ml, 1000 ml, 2 Litre, 6 Litre


Shelf Life 48 hours from the date of packing if kept under refrigeration below 8℃
Storage Condition Under refrigeration below 8℃
Product Features Amul milk is the most hygienic liquid milk available in the market.
It is pasteurized in state of the art processing plant and pouch packs to make
it convenient available to the consumers.

Product application Direct consumption, Making of Tea or Coffee, Sweets, Khoa, Curd,
Buttermilk, Ghee
Table: Amul Taaza
4. Amul Slim Trim

Fig: Amul Slim Trim


Description Pasteurized cow milk.
Amul milk meets the PFA standards for the respective type of milk.
Composition FAT (%) 6.5 min
SNF (%) 9.0 min
Packing Polypack 200 ml, 500 ml, 1000 ml, 6 Litre
Shelf Life 48 hours from the date of packing if kept under refrigeration below 8℃
Storage Condition Under refrigeration below 8℃
Product Features Amul milk is the most hygienic liquid milk available in the market.
It is pasteurized in state of the art processing plant and pouch packs to make
it convenient available to the consumers.

Product application Direct consumption, Making of Tea or Coffee, Sweets, Khoa, Curd,
Buttermilk, Ghee
Table: Amul Slim Trim
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5. Amul Pouch Butter Milk

Fig: Amul Pouch Butter Milk


Description Pasteurized Buttermilk meets the PFA standard.
Composition FAT (%) 1.5 min
SNF (%) 5.5 min
Packing Polypack 450 ml
Shelf Life 48 hours from the date of packing if kept under refrigeration below 8℃
Storage Condition Under refrigeration below 8℃
Product Features It is produced in very hygienic and clean atmosphere.
Scientific bacterial culture in Amul butter milk improve digestion.
It is conventionally packed in pouches and easily available at Amul milk
outlets.
Product application In place of Tea Amul butter milk will improve the digestive function.
Replace your soup with apple buttermilk, it will give dieting benefits.
Just give “Tadka” to Amul buttermilk and use it as your dal.

Table: Amul Pouch Butter Milk


6. Amul Masti Dahi

Fig Amul Masti Dahi


Description Curd made from Pasteurized Toned milk.

Packing Polypack 200 gm, 400 gm, 1Kg, 5Kg


Cup 200 gm, 400 gm, 1Kg
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Shelf Life Poly Pack 7 Days from the date of packing.


Cup 15 Days from the date of packing.
Storage Condition Under refrigeration below 8℃
Product Features Dahi is pasteurized product prepared with selected culture having through
health bacteria.
Dahi plays a key role in Indian diet and in preparation of delicious dishes.
Dahi is well known for its nutritive value.
Product application Direct consumption, Making of Lassi, Dahi Vada, Dahi Raita, Dahi Rice,
dahi Idli, Kadhi, and Mughlai food.
To marinate veg and non veg dishes.

Table: Amul Dahi

Analysis of FMCG (PEST Analysis)


Political
 GST Regime.
 Transportation and infrastructure development in rural areas helps in distribution
network.
 Restrictions in import policies.
 Help for agricultural sector. Economical
 GDP rate increase along Increase in disposable income at 10 % annually for next 8
yrs.
 Indian FMCG Recorded 16% Sales Growth in Last Fiscal.
 The FMCG sector is a 4th largest sector of India. Social
 Rural employment
 Volume-driven growth in rural market.
 Major Young population can increase revenue.
 The Indian culture, social & life styles are changing drastically. Technological
 Technology has been simplified and available in the industry.
 Foreign players helps in high technological development

Environmental Analysis
STEEP Analysis This STEEP analysis provides concentrated information about Social,
Technological, Economical, Ecological and Political aspects that effect Amul directly or
indirectly.
Page 21

Social
Amul has effected social change at the village level i.e. people stand in line to deliver their
milk without trying to take short cuts. They do not complain if they have to stand behind an
untouchable in the line. Hence, the cooperative has thus given a deathblow to the caste
system in its own way. Also Amul provided women an opportunity to have a voice in the
“home economy” as they are the major participants in the program.

Technological
GCMMF's technology strategy is characterized by four distinct components: New products,
Process technology, Complementary assets to enhance milk production, E- commerce
GCMMF was one of the first FMCG (fast-moving consumer goods) firms in India to employ
Internet technologies to implement B2C commerce. Customers can order a variety of
products through the Internet and be assured of timely delivery with cash payment upon
receipt. Another e-initiative underway is to provide farmers access to information relating to
markets, technology and best practices in the dairy industry through net enabled kiosks in the
villages. GCMMF has also implemented a Geographical Information System (GIS) at both
ends of the supply chain, i.e. milk collection as well as the marketing process.

Economical
GCMMF proved that efficiency of co-operatives can successfully counter the recessionary
trends of the economy thereby ensuring consistent livelihood to the farmer producer and
offering value for money products to its consumers. For the third consecutive year, it has
posted a double digit growth turnover reaching Rs. 6700 crores. Pandemic economic turmoil
has taken its toll, as international prices of all major dairy products have declined drastically
in recent months. However, with its sharp focus on domestic Indian market, Amul has
successfully insulated Indian farmers from all the turbulence in global dairy trade. It is
already providing the best employment option for displaced workers from urban
manufacturing sector, who after losing their jobs due to recession, have started reverse
migration from cities back to villages.

Ecological
GCMMF could foresee the impact of below normal monsoon in August 2009 itself and
started planning to maintain milk production, procurement and inventory levels. Also, at a
time when due to lower production of cereals, fodder prices had jumped almost two-fold,
GCMMF enhanced the supplies of cattle-feed to milk producers and maintained its prices
below cost and were able to provide better returns to the milk producers to overcome the
stress of draught.
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Political
Tussle for the chairmanship of Gujarat Cooperative Milk Marketing Federation Limited
(GCMMF), the apex marketing body, emerged as the core issue among political parties.
These parties planned gain entry into the cooperative giant?s affairs. Mr. Bhatol, who was
enjoying his second three-year term, was a consensus candidate last year, even as the main
political parties failed to choose a new head. Now, barely a year after his taking over for the
second term, Mr. Bhatol is under pressure to relinquish the office.

The AMUL Story


The Kaira District Cooperative Milk Producers’ Union Limited was established on December
14, 1946 as a response to exploitation of marginal milk producers in the city of Anand by
traders or agents of existing diaries. Producers had to travel long distances to deliver milk to
the only dairy, the Polson dairy in Anand – often milk went sour, especially in the summer
season, as producers had to physically carry milk in individual containers. These agents
decided the prices and the off take from farmers by seasons. Milk is commodity that has to be
collected twice a day from each cow and buffalo. In winter, the producer was either left with
surplus unsold milk or had to sell it at very low prices. Moreover, the government at that time
had given monopoly to the Polson dairy, which was well known butter brand in the country
around that time, to collect milk from Anand and supply to Bombay city in turn, which was
around 400 Kilometers away from there. India ranked nowhere amongst milk producing
countries in the worl in 1946. The producers of Kaira district took advice of nationalist
leaders, Mr. Sardar Vallabhbhai Patel (later became the first Home Minister of Free India)
and Mr. Morarji Desai (later became the Prime Minister of India). They advised the farmers
to form a cooperative and supply directly to the Bombay milk schemes instead of selling it to
Polson dairy. Thus the Kaira district cooperative was established to collect and process milk
in the district of Kaira. Milk collection was decentralized, as most producers were marginal
farmers who would deliver 1-2 liters of milk per day. Village level cooperatives was
established to organize the marginal milk producers in each of these villages. The first
modern dairy of the Kaira Union was established at Anand, which popularly came to be
known as AMUL dairy after its brand name. The new plant had the capacity to pasteurize
3,00,000 pounds of milk per day, manufacture 10,000 pounds of butter per day, 12,500
pounds of milk powder per day and 1,200 pounds of casein per day. Indigenous R&D
(Research and Development) and technology development at the cooperative had led to the
successful production of skimmed milk powder from buffalo milk, the first time on a
commercial scale anywhere in the world. The foundations of a modern dairy industry in India
had just been lad as India had one of the largest buffalo population in the world.
Page 23

In the year of 2000. The dairy industry in India and particularly in the State of Gujarat looks
very different. India has emerged as the largest milk producing country in the World.
Gujarat emerges as the most successful state in terms of milk and milk product production
through its cooperative dairy movement. The Kaira district cooperative milk producers’ union
limited, Anand becomes the focal point of dairy development in the entire region and AMUL
emerges as one of the most recognized brands in India, ahead of many international brands.
Starting with a single shared plant at Anand and two village cooperative societies for milk
procurement, the dairy cooperative movement in the state of Gujarat had evolved into a
network of 2.12 million milk producers (called farmers) who are organized in 10,411 milk
collection independent cooperatives (called village societies). These village societies (VS)
supply milk to thirteen independent dairy cooperatives (called unions). AMUL is one such
union. Milk and milk products from those unions are marketed by a common marketing
organization called federation. His common marketing organization is known as Gujarat
Cooperative Milk Marketing Federation Limited (GCMMF). It is the marketing entity for the
products of all unions in the state of Gujarat. GCMMF has 42 regional centers in India, serves
over 5, 00,000 retail outlets and exports more than 15 countries. All these organization are
independent legal entities yet loosely tied together with a common destiny. GCMMF was
ranked amongst the top ten FMCG (Fast Moving Consumer Goods) firms in the country
while AMUL was rated the second most recognized brands in India amongst all Indian and
MNC (Multi-National Corporations) offerings.
 Interestingly, the Gujarat movement spread all over the India and similar structure
was replicated. Two national organizations, The National Dairy Development Board
(NDDB) and National Cooperative Dairy Federation of India (NCDFI) were
established to coordinate the dairy activities through cooperatives in all the states of
the country. The former (NDDB) provides financing for development while latter
(NCDFI) manages a national milk grid and coordinates the deficit and surplus of the
milk and milk powders across the states of the India. In early 90s, AMUL was asked
by the Government of Sri Lanka to establish a dairy on similar lines in Sri Lanka,
while Polson dairy folded up in 1960s, the cooperatives are faced with new
competition in liberalizing India – from Multi-National Corporations (MNCs) that
brought in new and improved product portfolio, international network and immense
financial support. The cooperatives face new challenges that test the robustness of
their approach and their commitments to the movement and a new style of
management thinking. Today, AMUL is a symbol of many things such as,
 A promise to member farmers who are assured a guaranteed purchase of all the milk
that they have produce at pre-determined prices.
 High quality products sold at reasonable price to consumers.
 Developing and coordinating a vast cooperative network.
 Making strong business propositions out of serving large number of small and
marginal suppliers.
 Triumph of indigenous technology.
 Marketing savvy of farmers’ organization.
Page 24

AMUL and the Excellence


The AMUL experience has attracted considerable interest from the development
community predominantly anthropologists, development and agriculture
economists and politicalscientists. Key areas of their enquiry have been the role of
AMUL in reducing social and economic inequality in the regions of cooperative,
the sociology of cooperation, interface of dairy cooperative and the rural power
structures, relation of the State and cooperative and the role of government in in its
growth. Surprisingly, AMUL has successfully managed to exercise its
independence from the government unlike other cooperatives in India. AMUL’s
journey towards excellence is marked by some critical understandings of the
business environment in large emerging economies like India where markets have
to be developed by combining efficiency related initiatives with increasing the base
of marginal suppliers and consumers. The essence of AMUL’s efforts were as
follows,

 It combined market and social development in an emerging economy. It


recognized the inter linkage between various environments that governed
the lives of marginal milk farmers and the unmet needs of consumers. It
also changed the supply chain paradigm in order to reduce the cost to
consumer while increasing the return to the suppliers.

 It realized that in order to achieve their objectives, it had to benefit a large


number of people – both suppliers and consumers. While large scale had
the danger of failure due to poor control and required more resources, it
also had an advantage of creating a momentum that would be necessary to
bring more people into the fold and thereby help more suppliers and
consumers.

 It also realized that its goal could only be achieved in the long run and this
required developing the values in people and processes that were robust,
replicable and transparent.

 It also realized that the cooperative would not be independent and viable in
the face of competition if it were not financially sound. This implied that
AMUL had to develop distinct capabilities that would either deliver
competitive advantage to its operations. This would include long term cost
containment, world class deployment of technological resources, Research
and Development (R&D) and better leveraging of scarce resources.

Strength Weakness
Page 25

Largest milk producer in the world Poor feeding practices

A huge base of around 14 million Poor access to institutional credit

Farmers Traditional emphasis on Lack of cold storage facilities


consumption
Low margin for retailers
well established brand in dairy products
Opportuniy Threat
Elastic demand; economic Nearly 60 per cent of the Indian dairy
growth will spur demand Industry is still unorganized which caters
nearly 46 % of Indian dairy industry.
Increasing preference for
branded dairy products Removal of import duty has led to the threat
of dumping

Growing focus on health and


nutrients in urban market

Amul is one of the largest milk and milk based products manufacturer in India.
Known to be the founder of the white revolution in India, Amul has some strong
products and brands up its sleeves, strongest of them being Amul ice cream.
Similarly, the Milk & Dairy products company has a very in depth product portfolio
including cheese, butter, curd, chocolates, ice cream, and others. You can visit the
following link to refer to the marketing mix of Amul. However, following are the
points in the SWOT analysis of Amul.

Strengths in the SWOT analysis of Amul

Very high market share in ice cream – Amul has the top market share in ice cream
segment which further helps it push other products into the market.

Excellent brand equity – amul is a beloved brand over the years and the contribution
of amul girl and her outdoor ads should specifically be mentioned here.

Excellent quality management – even though amul has such a wide and large
distribution network, hardly any quality complaints come for Amul.

Strong distribution network – This is one company which is strong in urban as well
as rural distribution. You will find amul present even in small towns and villages.

Good product portfolio – Amul had a deep product portfolio when compared to any
fmcg company. It has many different variety of milk milk based food items like
cheese, butter, milk, buttermilk, lassi and many others. In ice creams too, Amul has a
large variety of flavours.
Page 26

Strong Supply chain – Vendors love Amul and amul is known for the white
revolution in India.

Rural presence – Strong rural presence of Amul is its plus point. It is mentioned here
separately because this rural presence gives amul a strong competitive advantage.

Weaknesses in the SWOT analysis of Amul

Cost of Operations – Amul’s operation is huge. And so is the cost. Plus the sector is
such that maintaining margins becomes difficult day by day. Thus, to face
international players, Amul needs to maintain the operations in the same manner it is
carrying out today. It is not a weakness but rather a constant challenge for Amul. In
fact, during summers, the brand faces severe shortage of supply.

Chocolates – Amuls expansion to chocolate has failed and hardly any product of
Amul chocolates is selling in the market. Amul needs further products to expand its
product line and increase bottomline.

Opportunities in the SWOT analysis of Amul

Export – Amul can export its product to other countries thereby increasing its
turnover and margins exponentially.

Concentrate more on chocolate market – Amul has a no advertisement policy


which creates a problem for its foray into additional products. Amul should in fact
have separate SBU’s and concentrate more on increasing its product line through
chocolates or other such products.

Threats in the SWOT analysis of Amul

Increasing competition in Ice cream segment – Many players, local and


international, are entering the ice cream market thereby taking away share of wallet
from Amul. Kwality walls, Naturals, London dairy, Havmor, Arun ice cream, Vadilal,
Ramani, are some of the few brands who are directly in competition with Amul.

Brand Preferences and Consumer Loyalty:

There is an immense level of Brand Preference of Amul in the minds of the people.
The level of preference specifically in the liquid milk sector is that they would go
toother retailer if the retailer does not have milk.

Access to Distribution Channels:

The distribution channel of GCMMF is a very planned and perfect one. For any new
entrant to enter it would be a very difficult task. For GCMMF the result is years of
Page 27

hard Work and its investment in its employees as well as at different levels in the
distribution network.

Inability to match the technology and specialized know-how of firms already in


the industry:

The technology used by Amul is imported from Denmark. It is a state of art


technology. To get this technology in India, a firm would require a huge amount of
resources.

Capital Requirements: The total investment required in the industry is huge and is a
decision worth considering even for MNC’s. The investment decisions cover the
processing costs as well as the marketing costs. To compete with the brand Amul in
India is difficult as Amul is synonymous to Quality.

BCG GROWTH-SHARE MATRIX

This framework assumes that an increase in relative market share will result in an
increase in the generation of cash. This assumption often is true because of the
experience curve; increased relative market share implies that the firm is moving
forward on the experience curve relative to its competitors, thus developing a cost
advantage. A second assumption is that a growing market requires investment in
assets to increase capacity and therefore results in the consumption of cash. Thus the
position of a business on the growth-share matrix provides an indication of its cash
generation and its cash consumption. It is observed that the cash required by rapidly
growing business units could be obtained from the firm’s other business units that
were at a more mature stage and generating significant cash. By investing to become
the market share leader in a rapidly growing market, the business unit could move
along the experience curve and develop a cost advantage. From this reasoning, the
BCG Growth-Share Matrix was born. Here, we shall consider the products of
GCMMF (Amul India). The products to be placed in the BCG matrix for the study
are, Amul Butter, Amul Ice – cream, Amul Kool and Amul Chocolates.

THE FOUR CATEGORIES ARE:

Question marks –

Question marks are growing rapidly and thus consume large amounts of cash, but
because they have low market shares, they do not generate much cash. The result is a
large net cash consumption. A question mark (also known as a "problem child") has
the potential to gain market share and become a star, and eventually a cash cow when
the market growth slows. If the question mark does not succeed in becoming the
market leader, then after perhaps years of cash consumption it will degenerate into a
dog when the market growth declines. Question marks must be analyzed carefully in
order to determine whether they are worth the investment required to grow market
share.
Page 28

For Amul brand, Amul Kool and Amul Chocolates are a perfect example of a
Question mark product or a problem child. Question marks business are wait and
watch business. Amul kool and the chocolates are businesses the company entered
because it felt that both these product category have high growth potential.

Stars –

Stars generate large amounts of cash because of their strong relative market share, but
also consume large amounts of cash because of their high growth rate; therefore the
cash in each direction approximately nets out. If a star can maintain its large market
share, it will become a cash cow when the market growth rate declines. The portfolio
of a diversified company always should have stars that will become the next cash
cows and ensure future cash generation.

Amul Ice – cream, is a star generating huge amounts of cash for the company. No
doubts it demands huge amount of investments as well but at the same time has
enormous growth rate. It has still maintained its large market share in competition
with other large brands like ‘Kwality Walls Ice – cream’ and ‘Dullops’ etc. It has
earned very high returns compared to its investments and continues to be so. The
company hopes to cash on this product in future.

Cash cows –

As leaders in a mature market, cash cows exhibit a return on assets that is greater than
the market growth rate, and thus generate more cash than they consume. Such
business units should be "milked", extracting the profits and investing as little cash as
possible. Cash cows provide the cash required to turn question marks into market
leaders, to cover the administrative costs of the company, to fund research and
development, to service the corporate debt, and to pay dividends to shareholders.
Because the cash cow generates a relatively stable cash flow, its value can be
determined with reasonable accuracy by calculating the present value of its cash
stream using a discounted cash flow analysis. Amul Butter is one of the unbeatable
product in the product profile of the company. It is primarily their most successful
product with hardly any competitors in the market. The pricing of this product is
absolutely strategic so as to avoid further competitors from entering this segment of
the product consumers. The advertisements and billboards of this product is major
contributor to the sales. It is the oldest in the market and hence still enjoys the First
Mover Advantage, as per the law of marketing. This product has been a thorough cash
cow from the beginning since it gave huge returns with lowest investments which
made it easy for the company to plough those profits for other products, i.e the
Question Mark and the Star segments.

Dogs –

Dogs have low market share and a low growth rate and thus neither generate nor
consume a large amount of cash. However, dogs are cash traps because of the money
Page 29

tied up in a business that has little potential. Such businesses are candidates for
divestiture. The unfortunate product for any company is when it enters the Dog
segment. The most unsuccessful product for the company has been Amul – Ready to
eat Pizza. The company had to call off the product from its list of products. In spite of
all the marketing strategies the company undertook to make this product a success it
proved to be futile. Somehow, the company could not induce the idea of ready –to-eat
pizza in the minds of the consumers. With tough competitors like ‘Pizza Hut’ and
‘Dominos Pizza’ it was wise for them to withdraw the product from the market to
avoid further losses for the company. Product Portfolio Amul is the biggest brand in
the pouched milk sector in the world and in India it is the biggest food brand. Amul's
range of products includes milk, ghee, milk powders, curd, ice cream, paneer, cream,
chocolate, cheese, butter, and shrikhand.

Brand Umbrella

The various brands of Amul's bread spreads are Amul Lite, Amul Butter, and
Delicious Table Margarine.?
The Brand Amul's milk drinks are sold under various names such as Amul Kool,
Amul Kool Cafe, Kool Koko, Amul Kool Chocolate Milk, and Amul Masti Spiced
Amul's powder milk is sold under many names like Amulya Dairy Whitener, Sugar
Tea Coffee Whitener, Sugar Skimmed Milk Powder, and Amul Instant Full Cream
Milk Powder. The brand's cheeses are also sold under various names such as Gouda
Cheese, Amul Cheese Spreads, and Amul Emmental Cheese. Amul Brand's desserts
are sold under many names like Amul Basundi, Amul Lassee, Gulab Jamun Mix,
Amul Shrikhand, and Amul Ice Creams.

Business Markets

Amul exports its products to various countries such as USA, Australia, Mauritius,
China, Hong Kong, Singapore, UAE, and Bangladesh. Amul has often had a special
connection with the film industry. A collation of some of the brilliant Amul adverts
over the years is as follows:-

 Competitive advantage in the Marketing strategy of Amul

There are two major competitive advantages of Amul over other brands. First and
foremost is the supply chain. Because of the large numbers of dairy suppliers, Amul
has a tremendous strength and reliability in its supply chain. Hence it is able to
produce such high volumes. The second competitive advantage is the wide product
portfolio due to which it can run Amul shoppe’s and also have its products present in
retail. The product portfolio is such that products like Butter and Ice cream are cash
cows for the company.

 Distribution strategy in the Marketing strategy of Amul


Page 30

Like any FMCG company, Amul concentrates on breaking the bulk. It supplies in
huge amounts to its C&F, who is required to have the right arrangements to store
Amul products in bulk. This C&F then transfers the products to distributors who in
turn give it to retailers. Furthermore, Amul has a direct sale team too which sells to
modern retail. Besides this, the company has exclusive Amul stores which sell all
products of Amul brand. Thus, in the marketing strategy of Amul, distribution is
another strength of the brand.

 Brand equity in the Marketing strategy of Amul

Amul have wide range of products and because of the excellent products, the top of
the mind positioning, the fantastic distribution and supply chain channels and finally
the point of purchase branding and advertising of the Amul girl, Amul finds itself in a
very strong position where its brand equity is concerned. Amul brand is worth $3.2
billion as per the 2013 brand equity report. Furthermore, most analysts say that Amul
would have touched the $4 billion mark, but the dropping value of the rupee is what
caused the difference.

 Market analysis in the Marketing strategy of Amul

The FMCG market is highly competitive in nature and is known to have a


combination of organized players as well as unorganized players. Similarly, in
FMCG, direct competition is equally important as indirect competition. For example –
During winters, ice cream and cold milk products will not sell, whereas butter and
cheese will sell equally well. But on the other hand, during summers the demand of
ice cream shoots up so much so that companies are not able to meet demands. Thus,
when we analyse the market of Amul, in some cases Amul is the clear market leader,
whereas in other products it is a competitor in the market .

GCMMF – AMUL Overview

Name of the Company Gujarat Co-operative Milk Marketing Federation Limited


(GCMMF) Head Office Amul Dairy Road, Anand – 388 001, Gujarat Depots 45
Brand Name Amul Zonal Office Ahmedabad, Mumbai, New Delhi, Kolkata, Chennai,
Guwahati Form of Organization Co – Operative Website http://www.amul.com/
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest
food product marketing organization with annual turnover Rs. 52,000 crores 18th July
2020. Its daily milk procurement is approx. 13 million lit per day from 16914 village
milk cooperative societies, 17 member unions covering 24 districts, and 3.18 million
milk producer members. It is the Apex organization of the Dairy Cooperatives of
Gujarat, popularly known as 'AMUL', which aims to provide remunerative returns to
the farmers and also serve the interest of consumers by providing quality products
which are good value for money. Its success has not only been emulated in India but
serves as a model for rest of the World. It is exclusive marketing organization of
'Amul' and 'Sagar' branded products. It operates through 48 Sales Offices and has a
dealer network of 5000 dealers and 10 lakh retailers, one of the largest such networks
in India. Its product range comprises milk, milk powder, health beverages, ghee,
Page 31

butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional Indian
sweets, etc. GCMMF is India's largest exporter of Dairy Products. It has been
accorded a "Trading House" status. Many of our products are available in USA, Gulf
Countries, Singapore, The Philippines, Japan, China and Australia. GCMMF has
received the APEDA Award from Government of India for Excellence in Dairy
Product Exports for the last 13 years. For the year 2009-10, GCMMF has been
awarded "Golden Trophy" for its outstanding export performance and contribution in
dairy products sector by APEDA.

For its consistent adherence to quality, customer focus and dependability, GCMMF
has received numerous awards and accolades over the years. It received the Rajiv
Gandhi National Quality Award in1999 in Best of All Category. In 2002 GCMMF
bagged India's Most Respected Company Award instituted by Business World. In
2003, it was awarded the The IMC Ramkrishna Bajaj National Quality Award - 2003
for adopting noteworthy quality management practices for logistics and procurement.
GCMMF is the first and only Indian organization to win topmost International Dairy
Federation Marketing Award for probiotic ice cream launch in 2007. The Amul brand
is not only a product, but also a movement. It is in one way, the representation of the
economic freedom of farmers. It has given farmers the courage to dream, to hope, to
live. Year of Establishment 1973 Members 17 District Cooperative Milk Producers'
Unions No. of Producer Members 3.18 Million No. of Village Societies 16,914 Total
Milk handling capacity per day 16.8 Million liters per day Milk Collection (Total -
2012-13) 4.66 billion liters Milk collection (Daily Average 2012-13) 12.7 million
liters Cattle feed manufacturing Capacity 5890 Mts. per day Sales Turnover -(2012-
13) Rs. 13735 Crores (US $ 2.54 Billion).

Vision
GCMMF will be an outstanding marketing organization, with specialization in marketing of
food and dairy products both fresh and long life with customer focus and IT integrated. The
network would consist of over 100 offices, 7500 stockiest covering at least every Taluka.
Head quarter servicing nearly 10 lakh outlets with a turnover of Rs.10,000 Cr and serving
several co-operatives. GCMMF shall also create markets for its products in neighboring
countries.
Mission
We at GCMMF endeavor to satisfy the taste and nutritional requirements of the customer of
the world through excellence in the marketing by our committed team. Through cooperative
networking, we are committed to offering quality product that provides best value for money.
Member Unions
1. Kaira District Cooperative Milk Producers' Union Ltd., Anand
2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana
3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar
Page 32

4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur


5. Surat District Cooperative Milk Producers' Union Ltd., Surat
6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodar
7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra
8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad
9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch
10. Ahmedabad District Cooperative Milk Producers' Union Ltd., Ahmedabad
11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot
12. Gandhinagar District Cooperative Milk Producers' Union Ltd., Gandhinagar
13. Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranagar
14. Amreli District Cooperative Milk Producers Union Ltd., Amreli
15. Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar
16. Kutch District Cooperative Milk Producers' Union Ltd., Anjar

AMUL – An Introduction
 It all began when milk became a symbol of protest
 Founded in 1946 to stop the exploitation by middlemen
 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 from 1950. 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
Page 33

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.

AMUL Model –
Three Tier Structure Model (AMUL Three Tier Structure) The Amul model is three tier
cooperative structure. This consists of dairy cooperative society at the village level affiliated
to a milk union at the district level which is turn in further federated into a milk federation at
state level. The structure is set up in order to delegate the various functions, milk collection is
done at the village dairy society and milk procurement and processing at district milk union
and milk and milk products marketing at the state milk federation. This helps in eliminating
not only internal competition but also ensuring that an economy of scale is achieved. As the
structure was first involved in Amul in Gujarat and thereafter replicated all over the country
under the operation flood program, it is known as Amul Model or Anand Pattern of dairy
cooperatives. The AMUL Model or Anand Pattern It is well known model or pattern for dairy
production and manufacturing industry and hence it has been adopted by rest of the Indian
dairy production firms and manufacturers for distributors’ strategy and higher profit margin
for whole channel of distribution. (The AMUL Model) Model Structure Responsibility
 Responsible for marketing of milk and milk product
 Responsible for procurement and processing of milk
 Responsible for collection of milk
 Responsible for milk production

Supply CHAIN MANAGEMENT


An Overview
As our economy is booming and every organization is facing severe competition in the
market whether it may be local or international market. The traditional corporate model of
organization was based on vertical integration, hierarchy and functional management. There
is a drastic change in the traditional and modern business world, where in the modern world,
when demand became unpredictable in both quality and quantity, when the domestic and
international markets became too diversified and thereby difficult to forecast, and when there
is a dynamic change in the technology which made single purpose production equipment
obsolete, the mass-production system became too costly and too rigid. Emerging technologies
now allow for the transformation of assembly main characteristics of the large corporation
into easy to program production units with product flexibility sensitive to market variations,
and process flexibility sensitive to change in technology. Most of modern organizations have
adapted the new environment and the main shift is featured as shift from the vertical
bureaucracies to horizontal corporations. There are seven major modern trends which features
such corporations which are as following 1. Process 2. A flat hierarchy 3. Team management
4. Performance measurement by customer satisfaction 5. Maximization of contacts with
Page 34

suppliers and customers 6. Information, Training and Re-training of employees at all levels 7.
Rewards based on team performance Contemporary business life cycle is process driven and
chain oriented, hence integration has become a core question for companies. The problems
and challenges with the traditional vertical co-operation between organizations are costly and
time consuming, instead of co- operating, there is also no scope of cost reproduction or profit
improvements at the expenses of someone else in the supply chain system.
There are various ways to look at supply chain system. One can say that it starts from the raw
material vendor and ends with the customer, thus, it includes purchasing, marketing and even
consumer buying the product. Therefore all the processes involved in the entire spectrum
from demand generation to demand satisfaction can be called as Supply chain management.
New Version of Supply Chain Management Today, in some advanced companies, supply
chain extend right from vendor procuring his raw material to the point of sale where the last
sale of the product takes place. This implies that there is transparency and information flow in
the entire chain resulting in appropriate action at each point. This action by each entity
contributes to the smooth functioning of supply chain. In some companies supply chain could
only be internal that is across the manufacturing facilities to company owned depots. One can
always choose a part of supply chain that is most relevant and focus resources to achieve
increased productivity. The objective of every supply chain should be to maximize the overall
value generated. The value that supply chain generates is the difference between what the
final product is worth to the customer and costs the supply chain incurs in filling the
customer’s request. For most commercial supply chains, value will be strongly correlated
with supply chain profitability which is also known as supply chain surplus, the revenue
generated from the customer and the overall cost across the supply chain. Supply Chain
Profitability Supply chain success should be measured in terms of the supply chain
profitability. Having defined the success of a supply chain in terms of supply chain
profitability, the next logical step is to look for sources of revenue and cost. For any supply
chain, there is only one source of revenue which is The Customer. Thus, the appropriate
management of these flows is a key to supply chain success. Effective supply chain
management involves the management of supply chain assets and products, information and
fund flows to maximize total supply chain profitability. Retailing is largely consolidated, with
large chains buying consumer goods from most manufacturers. This consolidations gives
retailers sufficient scale that the introduction of an intermediary such as distributor does little
to reduce costs and may actually increase costs because of an additional transaction. In
contrast, India has millions of small retail outlets. The small size of Indian retail outlets limits
the amount of inventory they can hold, thus requiring frequent replenishment, an order can be
compared with the weekly grocery shopping for a family. The only way for manufacturer to
keep transportation costs low is to bring full truckloads of product close to the market and
then distribute locally using “Milk Runs” with smaller vehicles. The presence of an
intermediary who can receive a full truckload shipment, break bulk, and then make smaller
deliveries to the retailers is crucial if transportation costs are to be kept low. Most Indian
distributors are one stop shops, stocking everything from cooking oil to soaps and detergents
made by variety of manufacturers. Besides the convenience provide by one shop shopping,
distributors in India are also able to reduce transportation costs for outbound delivery to the
retailers by aggregating products across multiple manufacturers during the delivery runs. So,
the important role of distributors can be explained by the growth in supply chain surplus that
Page 35

results from their presence. The supply chain surplus argument implies that as retailing in
India begins to consolidate, the role of distributor will diminish.

Modern Supply Chain Management


Model Due to purchasing power that comes with control over consumer contacts, retailers are
often dominant in a supply chain. Closeness to end consumer market gives retailers fast and
precise information about matters such as shifting fashion preferences and attractiveness of
competitor’s offerings, comparable to continuous market research.
Problem Area and Research Purpose Due to the purchasing power that comes with control
over consumers contracts, retailers are often dominant in a supply chain. Closeness to end
consumer markets gives retailers fast and precise information about matters such as shifting
fashion preferences and attractiveness of competitor’s offerings, comparable to continuous
market research. Even though power is no end in itself, it does include the opportunity to
organize the supply chain in suitable way. Many challenges face retailers today. Expanding
product variety, greater fluctuations in demand and shorter and shorter product life cycle,
which makes time to market reductions essential. The ever increasing need for reduced lead
times continues. Maximum coordination of work in and between companies is therefore
necessary, as otherwise it will lead to higher costs as well as to longer lead times. There is
however no single best way to manage a supply chain, the way retailers in consumer markets
influence what should be focused on. As no company can be everything for everyone, there is
interdependencies between what a company sets out to be for a consumers. As for an
example, The Company’s value proposition and that company’s supply chain. A value
proposition concerns how, where and when a company creates value for its customers and
that all activities from product development to order fulfillment should be based upon it.

DISTRIBUTION NETWORK

Distribution Network
Most producers work with marketing intermediaries to bring their products to market. The
marketing intermediaries make up a marketing channel also called distribution cannel.
Distribution channels are sets of interdependent organizations involved in the process of
making a product or service available for use or consumption. The Head Office of GCMMF
is located at Anand. The entire market is divided in 5 zones. The zonal offices are located at
Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai. Moreover there are 49 Depots
located across the country and GCMMF caters to 13 Export markets. A zero level of channel
also called a direct marketing channel consists of a manufacturer selling directly to the final
customers. A one level channel; contains one selling intermediary such as retailer to the final
customers. A two level channel two intermediaries are typically wholesaler and retailer. A
three level channel are typically wholesaler, retailer and jobber in between. GCMMF has an
excellent distribution. It is its distribution channel, which has made it so popular. GCMMF’s
Page 36

products like milk and milk products are perishable. It becomes that much important for them
to have a good distribution.
We can see from above figure that GCMMF distribution channel is simple and clear. The
products change hands for three times before it reaches to the final consumer. First of all the
products are stored at the Agents end who are mere facilitators in the network. Then the
products are sold to wholesale dealers who then sell to retailers and then the product finally
reaches the consumers.
Amul Parlors
Amul has come out with a unique concept of Amul Parlours.
They have classified those under four types namely:
• Center for excellence • On the Move
• Amul Parlours
• Amul Preferred Outlets
Center for Excellence: These Amul Parlours are specifically at a place, which has a class of
excellence of its own. We can find such parlors at the Infosys, IIMA, NID Ahmedabad etc.
On the Move: These parlors are at the railway stations and at different state bus depots
across different cities.

Amul Parlours: These parlors can be seen at different gardens across different cities. These
are fully owned by Amul.
Amul Preferred Outlets: These are the private shops that keep the entire of product range of
Amul. They also agree not to keep any competitor brands in the outlets. They can keep other
brands that are in the non-competitor category.
Amul has more than 200 such outlets right now. It wants to have 1,00,000 parlors by the end
of the year 2010
COMPETITORS ANALYSIS
Amul Dairy Porter’s Five Forces
Amul Dairy Porter five forces reflects the competitive environment of an industry. It is a
strategic tool that is used to avoid or minimize the risk of losing the competitive edge that
the organization has and to ensure the profitability of the products in the long run. The
company holds its vision closely as it allows them to orientate its innovation in terms of
choices regarding the investment and strategies. Within the industry the businesses
profitability is dependent upon the following forces:
 Competitive rivalry
 Threats of new entrants
 Threats of substitute
Page 37

 Bargaining power of suppliers


 Bargaining power of customer
Competitive rivalry
Amul Butter enjoys a significant market share. It has market share of 79.1% in the domestic
market of size $459 million. So as such, the competition current is not threatening the
position of Amul in the butter industry. But when it comes to low fat butter, Amul is in a
battle. Zydus Wellness’ Nutralite is gaining market share in the low fat, low cholesterol butter
category, a category where Amul has not been able to establish itself as yet. It has two
products in this category, Amul Delicious and Amul Lite.

Threat of substitutes
Threat of substitutes is high. There is increasing awareness about the potential health
concerns around consumption of certain dairy products, especially butter. The fact that
Amul’s own low fat, low cholesterol butter variants have not been able to gain significant
market share leaves the door open for other companies to take advantage of this potential
weakness. Also, margarine, cheese spreads, and jams are being used instead of butter as table
spreads and the options in the market are plenty.
Threat of new entrants
Threat of new entrants is medium. The barriers to entry are low and as such, there is a
probability that some big player might want to enter the market. That being said, the
significant market share that Amul holds means its position is quite secure. The established
distribution network is an advantage for Amul. The biggest plus for Amul is the supplier base
it enjoys. It has a strong connection with rural milk producers.
Bargaining power of suppliers
Bargaining power of the suppliers is low. Amul is a co-operative society. It runs for the
benefit of producers of milk and milk products, who serve as the suppliers. If providers are
not any more powerful, a company might be in a beneficial scenario. In such situations, the
supplier does not are based upon business or business. The providers have bit extra benefits
to increase quality and decrease rates. They affect McDonald's in regards to the company's
production capability based on the availability of basic materials. They provide the raw
product needed to supply a great or service. The variety of providers is extremely couple of
and they're extremely strong in negotiating rates in the paper market.
Bargaining Power of Customers
Thus, Amul Dairy makes sure to keep its consumers satisfied. This has actually led Amul
Dairy to be one of the devoted company in eyes of its purchasers. When purchasers have the
ability to impact rates in a business, it develops into an essential aspect to consider for a
company. Consumers have the option of simply continuing to a different company quickly.
Effective consumers can apply pressure to drive down rates, or increase the essential quality
for precisely the very same rate, therefore reduce profits in a service. Furthermore, if a
product is comparable to its competitor with minimum differentiation, then there are
Page 38

possibilities that business might require to allow the supplier dictate terms in order to stop
from losing the customer. In reality, a few of these identical store-brand private-label items
are made by the big consumer-products firms.
Michael Porter’s Five-Force Analysis
• According to Porter (1980) a firm must be analyzed in relation to its industry. Factors
outside the industry tend to influence all the industry’s firms in the same way and are thus not
as important to study.
• To a large extent, industry structure governs the strategies open to the firms. The
profitability and attractiveness of an industry is dependent of the level of competition.
Competition in an industry originates from industry structure and goes well beyond the
behavior of individual competitors.
• According to Porter, each industry has a potential profitability and the profitability for the
firms is dependent on the competitive forces in the industry. Porter identifies five competitive
forces that derive from the ambition to obtain as large share of the profitability as possible.
The five forces are the foundation of the five-force model.

Following are some competitor of AMUL:


MOTHER DAIRY

Introduction
Mother Dairy was commissioned in 1974 and is a wholly owned subsidiary of the National Dairy
Development Board (NDDB). It was an initiative under Operation Flood, the world's biggest dairy
development program launched to make India a milk sufficient nation. Over the years, Mother Dairy
has contributed significantly in achieving this objective through a series of innovations and
programs. Today, Mother Dairy manufactures markets & sells milk and milk products including
cultured products, ice creams, paneer and ghee under the Mother Dairy brand. The Company also
has a diversified portfolio with products in edible oils, fruits & vegetables, frozen vegetables, pulses,
processed food like fruit juices, jams, etc to meet the daily requirements of every household. The
Company over the last many years has created a market leadership position for itself in branded milk
segment in Delhi & NCR through a robust network of its booth and retail channels. It has also
expanded its reach to other regions in North, South, East and West with its offering of Milk and Milk
products pegging it among the few companies to own such a vast channel of distribution in India.
Page 39

Product offering
 Milk
 Milk Products
 Dahi
 Ice Cream
 Paneer
 Ghee
 Fruit Juices
 Jams
 Pickle

CHITALE DAIRY

Chitale Dairy was founded by the great visionary, Late Shri Bhaskar Ganesh alias Babasaheb
Chitale (B. G. Chitale). A journey that began in 1939, in the small town of Bhilawadi set the
stage for a revolution in the country's dairy industry. Today, the company has one of the most
technologically advanced dairy plants in the country, with a processing capacity of 3 lakh
litres of milk per day. Every day, about 3 lakh litres of milk is standardized, pasteurized,
packaged and dispatched for sale in Pune and other cities. Apart from Milk, Butter, Ghee,
Skimmed Milk Powder, Khoa, Chakka, Paneer, Processed Cheese, Shrikhand, Lassi and
casein form part of a formidable line-up of Chitale Dairy products. Over the last half century,
the enterprise has distributed about 13,881 buffaloes to farmers across Maharashtra and
granted subsidy payments exceeding Rs.30 million. This initiative has provided employment
to large unemployed sections of the district and also enabled them to earn supplementary
income.
Products offering by Chitale
 Milk
 Curd
 Cheese
 Shrikhand
 Paneer
 Ghee
 Lassi
 Skimmed milk
 Other products
Page 40

GOWARDHAN DAIRY

Gowardhan brand is the first brand of Parag Milk Foods Ltd. This brand was launched in the
year 1998 for the commercial production of butter and ghee. Manchar Pune Plant was
assigned for this task.
This plant is located in the Manchar village which is about 60 Km away from the city of
Pune. In the year of 2005, the plant was brought by the company for further increasing their
productivity. Presently they have about 3000 cows of Holstein Friesian Breed. Each day, a
single cow would produce about 23 litres of milk.
All dairy products of Gowardhan are made according to international standards. This brand
had the largest cow plant in the whole of India and has the largest cheese manufacturing in
the whole of Asia. This brand has several products that are equally famous within the general
masses of India. They usually consist of Milk, Ghee, Dahi, Paneer, Dairy Whitener, Gulab
Jamun Mix, and Butter. The motto of the Gowardhan brand is to provide a fresh and clean
taste of cow’s milk to every Indian household.
Page 41

ROLE IN COMPANY
At AMUL, I had a role of management trainee. We were divided into pair of two. Our
territory in-charge Mr. Omkar Sir and coordinator and HR Miss Shruti ma’am guided to us
to achieve our day today task. It was a great opportunity to learn and to experience how
FMCG sector works. For the first one moth we had offline work which consists activities like
collecting feedback from those retailers who were affiliated and working with amul. We were
given a set of questionnaire which consisted 9 questions related to service of amul’s
distributor and salesman. We had to call retailers and collect their valuable feedback which
helps in solving any issue if arises and to constantly improve amul’s services. On the offline
part (on field work) we travelled to many region of Pune especially PCMC guide and inform
retailers about Amul Cart and it benefits to them. We were assigned beats according to which
we had to visit all the shops for installing and registering them on Amul Cart. We were
assigned different place on each day to visit and guide retailers, apart from this we also took
orders on the amul cart from retailers those who installed and registered them self on Amul
Cart app. After every week we had to take follow up to ensure that they are practising online
ordering. In last few weeks of our internship we had given task to enquire and collect
information about competitors pricing strategy, their service and their market scenario. This
helped amul in making strategy to be a good market leader.
Page 42

RESEARCH PROBLEM

AMUL has always been a big player in the FMCG industry. The competitors are giving a
tough competition to the brand. To know the current situation of AMUL Masti Dahi among
the Retailor and the factors affecting the satisfaction of Retailor with AMUL Masti Dahi this
project is done. It is important to study the factors that influence Retailor satisfaction towards
AMUL Masti Dahi. By correcting the factors and satisfying the Retailors the business will
not only run smoothly but will be profitable too. To observe these points the project was
carried out and analysed
Page 43

OBJECTIVE

 To know the factors that affect the satisfaction level of retailers towards Amul Masti
Dahi.
 To know the product awareness and product acceptance of Amul.
 To understand the impact of behaviour of Amul’s distributor on retailers
in Pune.
 To develop effective solution to the problem faced by retailors.
 To analysis complaints of retailor towards Amul Masti Dahi.
Page 44

HYPOTHESIS

HYP 1
H0 – No factor are contributing towards the Dependent Variable.
H1 – All factors are contributing towards the Dependent Variable.
HYP 2
H0 – There is no relationship between product awareness and product acceptance.
H1 – There is a relationship between product awareness and product acceptance.
HYP 3
H0 – There is no relationship between Product Awareness and Product Acceptance.
H1- There is a relationship between Product Awareness and Product Acceptance.
Descriptive Statistics – Here I am trying to find out the most important factor contributing
towards statistics.
Page 45

LITERATURE REVIEW

Gujarat Milk Marketing Federation is a cooperative society. It done a very good job in milk
marketing, making way for poor villager’s earnings. It not only provides effective returns to
the farmers but also take cares of customer on the basis of Indian ethics. They provide milk of
better nutrients, better quality products regularly and help in meeting the country’s need of
daily milk requirement. Some of the articles on Amul are as follows:-
 Dairy giant Amul reports slowest growth in 8 years (Sally, 2015) This article states
that Amul has reported its slowest growth in the last 8 years due to the fall of global
milk prices that has hit the rate of revenue increase. Gujarat Cooperative Milk
Marketing ition ended the fiscal year with a revenue of Rs. 20,730 crores which was a
14.2% increase over the previous year. R S Sodhi stated that the consumer product
line grew by 21% but the company suffered a 77% drop in revenue in the sale of bulk
commodities

 Dr. K. Gomathi and T. Abhisheka (2018), in their article “a study on consumer


attitude towards Amul product” have explained about the Amul branding strategy
with brief description of market shares of different Amul product. Indian largest food
brand trusted Amul product for its quality and product available at affordable price.
Amul has different type such as milk, chocolate, milk powder, curd, ice cream, ete.
Amul has on appropriate blend of the policy makers, and technology and a support
system to the milk producers without distribute their agro-economic system and
ploughing back the profit, materials and machines. Amul product already enjoying
number I position in diary industry this gives a positive stand to further strengthen its
position

 Ashok, D. (2012) illuminates the utilization design and the purposes for low
affectability of bundled dairy items, It uncovers data concerning consumers’
inclinations and information on preparing natura/dairy items. I ikewise distinguishes
those consumers who are destined to get handled natural/dairy items

 Nargunde A. Satish (2013) featured the job of dairy industry in elevating the more
vulnerable segments of the general public viz. little landholders, landless workers and
ladies. Ibis assessed that up to 60-65 percent of the pay of this gathering (minor and
limited scope ranchers) presently comes from dairying. Studies have shown that
dairying in rustic regions outperformed crop creation as far as benefit in negligible,
little and medimeasured property. For limited scope ranchers with watered land,
dairying and yield creation together, were more productive than crop cultivating
alone. Over the period, dairying has additionally gained the forms of a completely
fledged industry in the nation and has emphatically worked on the existence of those
Page 46

occupied with this business, straightforwardly or by implication, bringing critical


financial changes.

 Dakurah A. Henry (2005) considered the mentality towards, and fulfillment of


inhabitants of Alberta to their cooperatives. Consequences of the examination
additionally show apopulace that has an overall inspirational perspective towards and
is happy with their cooperatives as is reflected in surveying the presentation of their
cooperatives as great Further investigation utilizing the hypothesis of arranged IBWL
2020: Needs and Strategies-2 Management Perspective conduct show that
respondents’ disposition towards their cooperatives is the absolute generally
significant and critical indicator of their patronization conduct.

RESEARCH METHODOLOGY

RESEARCH TYPE
Descriptive research attempts to describe systematically a situation, problem, service, provide
information for describe attitude towards an issue.
The conceptual structure within which this research is conducted is descriptive in nature has
brings forward the results concerning the set objective, true facts, findings, and enquiries.

SAMPLE SIZE
Sample size refers to the count of individual samples or responses or observations in any
research problem or statistical setting. Such as a scientific experiment or a public opinion
survey. Though a relatively straightforward concept, choice of sample size is a critical
determination for a project. Considering off the field work, we had sample size of 40
respondent (retailers) or observation. All 40 respondent were asked questions on a personal
interaction. This provided their valuable feedback which helped the company to solve any
problem faced by any retailer in the market.

SAMPLE METHOD

The primary data has been collected through the questionnaire method. A
structured questionnaire based on various closed ended questions were asked to
the respondents
Main Points of Research Methodology
Research type: Descriptive research
Sample method: Simple random sampling
Page 47

Sampling area: Baner region, Pune


Data source: Primary and secondary data
Sample size: 40 retailers
Primary tool: questionnaire and interview
Type of questionnaires: Structured questionnaires with closed ended
questionnaire as well as open ended discussions.

QUESTIONNAIRE: -

I am satisfied with the Margin


 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

I am satisfied with the Timely availability of Milk


 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
I am aware Replacement Policy
Page 48

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

I am aware about Credit facility


 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

I am satisfied with the Distributor behaviour


 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

I am aware about Supply of expired stock


 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

Customer Satisfaction
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

Complaints handling
 Strongly Agree
 Agree
Page 49

 Neutral
 Disagree
 Strongly Disagree

Relationship with company


 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

Brand Name
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

I am aware about Amul Masti Dahi


i. Strongly Agree
ii. Agree
iii. Neutral
iv. Disagree
v. Strongly Disagree
Page 50

I got product information through sales person


i. Strongly Agree
ii. Agree
iii. Neutral
iv. Disagree
v. Strongly Disagree

I am satisfied with the Amul Masti Dahi


i. Strongly Agree
ii. Agree
iii. Neutral
iv. Disagree
v. Strongly Disagree
Page 51

I am putting Amul Masti Dahi in my fridge for sale


 Yes
 No

If Amul Masti Dahi is not present I will refer following


 Amul Premium Dahi
 Govind Dahi
 Gokul Dahi
 Chitale Dahi
 Katraj Dahi
Page 52

DATA ANALYSIS

DESCRIPTIVE STATISTICS TO FIND OUT MOST IMP FACTOR CONTRIBUTING INTO


SATISFACTION

Descriptive Statistics – Here I am trying to find out the most important factor contributing
towards statistics.

[Ma [Timely [Credit [Distributo [Supply of [Customer [Complain [Relationship


rgin availabilit [Replac facility r expired Satisfaction ts with [Brand
] y] ement ] ] behavior] stock ] ] handling] company] Name]
3 4 2 2 4 4 3 3 3 3
5 4 4 5 5 5 5 5 5 5
3 5 2 2 2 5 5 5 5 5
3 5 1 3 5 1 5 5 5 5
3 5 2 1 5 1 1 1 1 1
1 5 2 2 5 2 4 3 4 4
2 5 2 1 5 3 5 4 4 3
3 5 2 1 3 3 5 2 3 5
1 4 1 1 5 1 5 2 2 5
1 5 1 2 5 3 5 4 4 5
2 5 1 2 5 1 5 1 1 5
1 5 1 1 5 1 5 2 1 5
1 5 1 2 5 1 5 3 3 3
2 3 3 1 3 3 4 3 4 5
2 2 2 2 5 2 3 1 4 4
Page 53

2 3 3 1 3 3 4 3 3 4
5 5 1 5 5 3 5 5 5 5
5 5 5 5 4 3 5 5 4 3
4 4 1 3 5 3 5 3 5 5
5 5 4 5 3 1 5 4 3 3
4 3 3 2 3 2 4 3 5 5
5 5 5 5 3 2 4 5 3 4
3 4 3 1 4 3 4 3 4 5
3 2 1 3 5 3 5 3 5 5
2 5 1 3 5 5 5 3 5 5
4 3 4 2 3 3 4 3 3 5
5 5 5 4 5 1 5 4 4 5
5 5 5 5 4 2 4 5 4 4
4 3 3 1 4 4 4 5 5 5
4 4 3 3 4 2 4 4 4 5
5 4 5 3 5 5 4 5 5 5
2 4 1 4 5 1 5 5 5 5
4 5 4 3 5 3 4 5 4 5
2 4 1 4 5 1 5 5 5 5
4 3 3 4 5 4 4 5 5 5
4 3 5 4 5 5 5 4 5 5
2 4 1 4 5 1 5 5 5 5
5 4 4 5 4 5 4 4 5 5
4 5 4 4 5 5 5 5 5 5

[Timely
availabilit [Replace [Replaceme [Relationship
[Margin] y] ment ] nt ] with company]

Mean 3.21 Mean 4.21 Mean 2.62 Mean 2.85 Mean 3.97
0.220 0.147 0.236 0.192
Standard 96429 Standard 76557 Standard 9833 Standard 0.23099404 Standard 59986
Error 3 Error 6 Error 6 Error 3 Error 8
Median 3 Median 4 Median 2 Median 3 Median 4
Mode 5 Mode 5 Mode 1 Mode 2 Mode 5
Standard 1.379 0.922 1.479 Standard
Deviatio 92156 Standard 79572 Standard 9606 Deviatio 1.44255733 Standard 1.202
n 9 Deviation 9 Deviation 08 n 3 Deviation 78579
1.904 0.851 2.190 1.446
Sample 18353 Sample 55195 Sample 2834 Sample Sample 69365
Variance 6 Variance 7 Variance 01 Variance 2.08097166 Variance 7
- - -
1.261 0.291 1.28 - 0.799
3906 5822 8030 1.3148399 0706
Kurtosis 37 Kurtosis 39 Kurtosis 59 Kurtosis 65 Kurtosis 83
- - -
0.135 0.855 0.35 1.191
Skewne 8104 Skewnes 9952 Skewne 3020 Skewne 0.1722280 Skewnes 9141
ss 86 s 58 ss 148 ss 51 s 36
Range 4 Range 3 Range 4 Range 4 Range 4
Minimu Minimu
m 1 Minimum 2 Minimum 1 m 1 Minimum 1
Maximu Maximu Maximu Maximu
m 5 Maximum 5 m 5 m 5 m 5
Sum 125 Sum 164 Sum 102 Sum 111 Sum 155
Count 39 Count 39 Count 39 Count 39 Count 39
Page 54

[Distribu [Custome [Complai


tor [Supply r nts
behavior of expired Satisfacti handling [Brand
] stock ] on] ] Name]

Mean 4.38 Mean 2.72 Mean 4.44 Mean 3.72 Mean 4.51
0.140 0.229 0.131 0.146
Standard 44168 Standard 26485 Standard 4040 Standard 0.20436768 Standard 35377
Error 1 Error 2 Error 85 Error 6 Error 1
Median 5 Median 3 Median 5 Median 4 Median 5
Mode 5 Mode 3 Mode 5 Mode 5 Mode 5
Standard 0.877 1.431 0.820 Standard 0.913
Deviatio 05801 Standard 75854 Standard 6182 Deviatio Standard 97900
n 9 Deviation 2 Deviation 46 n 1.27627579 Deviation 7
0.769 2.049 0.673 0.835
Sample 23076 Sample 93252 Sample 4143 Sample 1.62887989 Sample 35762
Variance 9 Variance 4 Variance 05 Variance 2 Variance 5
- -
0.040 1.085 6.983 - 4.714
68278 44779 1308 0.54180303 72284
Kurtosis 8 Kurtosis 9 Kurtosis 61 Kurtosis 9 Kurtosis 2
- -
1.107 0.300 2.193 - -
Skewnes 90018 42578 1777 Skewnes 0.63711901 2.110
s 9 Skewness 3 Skewness 6 s 1 Skewness 6527
Range 3 Range 4 Range 4 Range 4 Range 4
Minimu Minimu
m 2 Minimum 1 Minimum 1 m 1 Minimum 1
Maximu Maximu Maximu Maxima
m 5 Maximum 5 m 5 m 5 m 5
Sum 171 Sum 106 Sum 173 Sum 145 Sum 176
Count 39 Count 39 Count 39 Count 39 Count 39

HYP 1
H0 – No factor are contributing towards the Dependent Variable.
H1 – All factors are contributing towards the Dependent Variable.

Dep
end
ent
Var
iabl
Independent Variables e

[Co [Relat [B
mpl ionshi ra
aints p nd [Sat
[Timely [Distribut han with Na isfa
[Mar availabi [Replacem [Credit or [Supply of [Customer dlin comp me ctio
gin] lity ] ent ] facility ] behavior] expired stock ] Satisfaction] g] any] ] n]
3 4 2 2 4 4 3 3 3 3 4
5 4 4 5 5 5 5 5 5 5 5
3 5 2 2 2 5 5 5 5 5 5
3 5 1 3 5 1 5 5 5 5 5
3 5 2 1 5 1 1 1 1 1 4
Page 55

1 5 2 2 5 2 4 3 4 4 5
2 5 2 1 5 3 5 4 4 3 5
3 5 2 1 3 3 5 2 3 5 4
1 4 1 1 5 1 5 2 2 5 5
1 5 1 2 5 3 5 4 4 5 5
2 5 1 2 5 1 5 1 1 5 5
1 5 1 1 5 1 5 2 1 5 3
1 5 1 2 5 1 5 3 3 3 2
2 3 3 1 3 3 4 3 4 5 3
2 2 2 2 5 2 3 1 4 4 1
2 3 3 1 3 3 4 3 3 4 3
5 5 1 5 5 3 5 5 5 5 3
5 5 5 5 4 3 5 5 4 3 4
4 4 1 3 5 3 5 3 5 5 5
5 5 4 5 3 1 5 4 3 3 5
4 3 3 2 3 2 4 3 5 5 3
5 5 5 5 3 2 4 5 3 4 5
3 4 3 1 4 3 4 3 4 5 3
3 2 1 3 5 3 5 3 5 5 5
2 5 1 3 5 5 5 3 5 5 5
4 3 4 2 3 3 4 3 3 5 2
5 5 5 4 5 1 5 4 4 5 4
5 5 5 5 4 2 4 5 4 4 5
4 3 3 1 4 4 4 5 5 5 3
4 4 3 3 4 2 4 4 4 5 4
5 4 5 3 5 5 4 5 5 5 5
2 4 1 4 5 1 5 5 5 5 4
4 5 4 3 5 3 4 5 4 5 5
2 4 1 4 5 1 5 5 5 5 5
4 3 3 4 5 4 4 5 5 5 5
4 3 5 4 5 5 5 4 5 5 3
2 4 1 4 5 1 5 5 5 5 5
5 4 4 5 4 5 4 4 5 5 4
4 5 4 4 5 5 5 5 5 5 5
SUMMAR
Y
OUTPUT

Regression Statistics
0.610599
Multiple R 352
0.372831
R Square 569
Adjusted R 0.148842
Square 843
Standard 0.996790
Error 356
Observation
s 39

ANOVA
Page 56

Signi
fican
df SS MS F ce F
0.139
16.5384 1.653842 1.664510 5882
Regression 10 2599 599 425 93
27.8205 0.993591
Residual 28 4836 013
44.3589
Total 38 7436

Lowe
Lowe r
Coefficie Standar r Upper 95.0 Upper
nts d Error t Stat P-value 95% 95% % 95.0%
- -
3.160 3.160
0.526808 1.80002 0.292668 0.771933 3660 4.21398 3660 4.213983
Intercept 711 0444 182 707 21 3442 21 442
- -
- - 0.496 0.496
0.015787 0.23450 0.067323 0.946802 1559 0.46458 1559 0.464580
[Margin] 92 8068 568 562 21 0081 21 081
- -
[Timely 0.051 0.051
availability 0.440688 0.24041 1.833052 0.077447 7739 0.93315 7739 0.933150
] 404 2349 279 974 68 0777 68 777
- -
- - 0.538 0.538
[Replacem 0.153906 0.18778 0.819586 0.419373 5669 0.23075 5669 0.230754
ent ] 28 5253 615 88 34 4374 34 374
- -
0.275 0.275
[Credit 0.143482 0.20443 0.701862 0.488558 2750 0.56223 2750 0.562239
facility ] 167 0634 357 523 04 9338 04 338
- -
0.315 0.315
[Distributo 0.123949 0.21456 0.577665 0.568106 5766 0.56347 5766 0.563475
r behavior] 578 9736 707 589 01 5757 01 757
- -
[Supply of 0.182 0.182
expired 0.125670 0.15045 0.835279 0.410631 5192 0.43386 5192 0.433860
stock ] 738 3489 656 23 62 0739 62 739
- -
[Customer - - 0.636 0.636
Satisfactio 0.035326 0.29364 0.120301 0.905103 8361 0.56618 8361 0.566183
n] 3 7606 68 273 53 3553 53 553
- -
0.228 0.228
[Complaint 0.266522 0.24164 1.102938 0.279443 4700 0.76151 4700 0.761514
s handling] 146 7353 404 645 18 431 18 31
- -
[Relationsh - - 0.676 0.676
ip with 0.114512 0.27417 0.417667 0.679375 1261 0.44710 1261 0.447101
company] 317 1015 481 811 84 1549 84 549
- -
0.396 0.396
[Brand 0.117191 0.25055 0.467731 0.643596 0419 0.63042 0419 0.630424
Name] 159 2314 296 899 91 4308 91 308

Accept alternate hypothesis, as the significance value is less than 0.05. The value of multiple R is
0.61 there is moderately positive relationship between all independent variables and dependent
variables.
Page 57

HYP 2
H0 – There is no relationship between product awareness and product acceptance.
H1 – There is a relationship between product awareness and product acceptance.
Sales
Pitching Awareness
5 5
1 5
3 5
3 5
4 5
3 4
5 5
5 5
5 5
5 5
5 5
5 5
1 3
4 5
1 3
4 4
3 5
5 4
5 5
5 5
4 5
5 5
3 4
5 5
5 5
3 5
5 4
4 5
4 3
4 4
4 5
5 5
5 5
1 3
5 5
5 5
5 5
5 5
5 5
Sales
Pitching Awareness
Page 58

Sales
Pitching 1
Awareness 0.584 1

As the value of person's


coefficient is 0.58, there is
moderately positive
relationship between the I.V.
and D.V.

Awareness
6

0
0 1 2 3 4 5 6

H0 – There is no relationship between Product Awareness and Product Acceptance.


H1- There is a relationship between Product Awareness and Product Acceptance.

Product
Awareness Acceptance
Awareness 1
Product
Acceptance 0.11 1

As the Pearson’s
coefficient is 0.10, there
Page 59

is very weak positive


relationship between
the I.V. and D.V.

Product Acceptance

Mean 3.820512821
Standard Error 0.200780511
Median 4
Mode 5
Standard
Deviation 1.253873889
Sample Variance 1.57219973
-
Kurtosis 0.072377511
-
Skewness 0.909039877
Range 4
Minimum 1
Maximum 5
Sum 149
Count 39
Page 60

FINDING AND INTERPRETATION

 Amul is still the market leader at the respective area because of high demand from the end
customers due to brand name. Also Amul provides good quality products in low price as compared
to other brands.

 Retailers are less interested to sale Amul products because of low profitable margin and no
replacement policy while other brands providing high margin as well as facilitate the retailers with
timely replacement.

 It has been observed that retailers facing problem with pouch packaging mostly leakage while
handling so they prefer hard packaging such as tetra pack or cup especially for Amul (curd &
buttermilk) products because they don’t provide any replacement.

 It has been found that the brand preference for the retailers is depending upon the margin
provided by the company to them, high margin means high demand from the retailer’s side.

 Also a good scheme or offer, packaging and availability influence the retailers to sale the product.

 Promotional activities are very beneficial to penetrate the market because it creates awareness to
the customers and the demand for the product increases. The existing retailers of Amul have
Page 61

experienced the increase in demand and more sales through their stores after the promotional
campaigns of Amul.

 Amul has a very effective distribution channel but due to high demand and less supply retailers
continuously facing the problem of unavailability of stock.

 For dairy products retailers must have storage facility so if Amul come up with any scheme on
fridges then retailers will make up their mind to sale Amul.

RECOMMENDATIONS AND SUGGESTIONS

 Amul should improve its distribution system, as it has already implemented on ERP in
the company, still due to in disciplined behavior of its distributors, retailers suffers
which ultimately affect the consumers.
 We know that the time schedule of the distributors & their transportation system
cannot be capsuled, but they can reduce their errors. E.g. drive carefully to prevent
accidents.
 Before offering any extra benefits or schemes to their retailers, Amul should aware
them in advance, so that the incentives can be reached in the right hands at right time.
Otherwise distributors enjoy the benefits of retailers.
 Amul should also launch certain schemes for households. It has schemes for retailers
but not for households. This section being the major user of milk and in order to enter
into a new area such starting schemes can be very helpful.
 For refrigerated and frozen food distribution, a world class cold chain would help in
providing quality assurance to the consumers around the region.
 Logistics and transportation services should be professionally managed to avoid
wastes.
 Incentive schemes for amul cart should be clearer to the retailers and it should be in
layman language.
 Relationship with business associates like wholesaler should be made closer and
deeper.
 Give the credit purchase facility to their regular retailers.
 250 ml milk pouch should make available to retailers for selling, because lower
income family has intention to buy small pouch milk.
 There is need to create a common platform for all the retailers so that their complains
should be solved.
Page 62

 As quick as possible try to settle the various claims and problems of the retailers.
 Provide good schemes and offer to the retailer. Some scrutiny should be follow to
check the scheme get being communicated properly by distributors or salesperson.
 Supply should be regular to all the outlets including those that lie in the pocket roads
and not just in the outlets which lie on the easily accessible routes.
 It has been found that there is no awareness among the retailers regarding the newly
launched products of Amul such as pouch dahi and its variants. So it is advisable to
the company to conduct various awareness programs like distributing of pamphlets
outside the retail shops and more advertisement through the media.
 Give the credit buy office to their customary retailers.
 As fast as conceivable attempt to settle the different cases and issues of the retailers.

LIMITATIONS

 Research is limited to 40 respondents of retailers in a particular region of Pune ( Baner )


 Time frame required was not enough to survey a greater number of outlets.
 The survey is limited only for Baner region of Pune.
 Lack of research experience.
Page 63

Conclusion

Amul means different things to different people in every aspect.


To a producer – A life enriching experience
To a consumer – Assurance of having wholesome
To a mother – A reliable source of nourishment for her child
To the country – Rural development and self-reliance As we know that Amul is very big organization
and market leader in dairy products. It has maximum market share in Lassee, Butter, Cheese & Ice-
Cream which are its main/core products. But in case of local market like pune specially in Baner the
Amul Prolife is a popular product and in high demand as compared to other company’s Products.
With the help of research, company can find out its week points in distribution strategies of amul
product and can increase its market share through rectify mistakes. People have believed in Amul‟s
product and they will accept it also if effective actions were taken.
It is found that Amul has a strong brand value in the market and it increases rapidly through its
advertising.
Page 64

References

BOOKS:
Marketing Management (14th Edition) - Philip kotler, Kevin Lane Keller, AbrahamKoshy
and Mithileshwar Jha

www.google.co.in
www.wikipedia.com
www.amul.com.
www.marketresearch.com
www.dairy.com
http://www.amul.com/m/brands
https://www.motherdairy.com/
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viii https://www.jetir.org/papers/JETIRBL06010.pdf

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