UNIVERSITY OF MUMBAI Academic year 2010-2011

BHAVANS COLLEGE ANDHERI (W)

PROJECT ON Amul - The Taste of India.

PROJECT GUIDE MRS. KRUPA RAI

SUBMITTED BY SIDDHANT VITHAL PATIL T.Y.BMS SEMISTER V

ACKNOWLEDGEMENT

If words are considered as a symbol of approval and token of appreciation then let the words play the heralding role expressing my gratitude. First of all I would like to take this opportunity to thanks the Mumbai University for having projects as a part of the B.M.S curriculum. I would like to express my gratitude and sincere thanks to my Project Guide Prof. krupa Rai, for instilling confidence in me to carry out this study and extending valuable guidance and encouragement from time to time, without which it would not have been possible to undertake and complete this project. I also wish to extend my appreciation to the management and staff of my college especially the Chief Co-ordinator of BMS Mrs. Krupa Rai and our principal,for their kind co-ordination and support. Last but not the least; I would like to thanks my parents for giving me the best education and my colleagues for their valuable comments and suggestions for making this a cherishable experience for me.

INDEX

SL. NO CHAPTER NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 2 2.1 2.2 2.3 3 4

TITLE

PAGE NO

EXECUTIVE SUMMARY INTRODUCTION INTRODUCTION TO THE PROBLEM REVIEW OF LITERATURE SIGNIFICANCE OF STUDY OBJECTIVE OF STUDY SCOPE OF STUDY METHODOLOGY SAMPLING PLAN CHAPTERIZATION INDUSTRY AND COMPANY PROFILE BACKGROUND INTRODUCTION TO THE GROUP INTRODUCTION TO THE COMPANY CONCEPTUAL FRAME WORK DATA ANALYSIS AND INTERPRETATION

4 6 8 9 14 15 16 17 18

20

99 131

17

FINDINGS RECOMMENDATION AND CONCLUSION

139 140 142 143

18 19

BIBLIOGRAPHY ANNEXURE

EXECUTIVE SUMMARY

The Indian Dairy Industry specializes in the procurement , production, processing, storage and distribution of dairy products. India as nation stands first in its share of dairy production in the international scenario. Amul means "priceless" in Sanskrit. The brand name "Amul," came from the Sanskrit word "Amoolya," was suggested by a quality control expert in Anand. Amul was formed in 1946, which is a dairy cooperative in India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.8 million milk producers in Gujarat, India. It all started in December 1946 with a group of farmers keen to free themselves from intermediaries, gain access to markets and thereby ensure maximum returns for their efforts. Verghese Kurien is called the father of the White Revolution in India. He is also known as the Milkman of India. He was the chairman of the Gujarat Co-operative Milk Marketing Federation Ltd.(GCMMF). GCMMF is an apex cooperative organization that manages the Amul food brand. The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level which in turn is further federated into a Milk Federation at the State level.

The above three-tier structure was set-up in order to delegate the various functions, milk collection is done at the Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation. The Food Brand Amul has received various awards such as the Ramkrishna Bajaj National Quality Award in 2003, Award International Cio 1000 for Resource fulness, and also the Rajiv Gandhi National Quality Award in 1999.

Chapter 1

INTRODUCTION

1. INTRODUCTION The Indian Dairy Industry engages in the production and processing of milk & cream. This industry is involved in the manufacture of various dairy products like cheese, curd, yoghurt etc. The Indian Dairy Industry specializes in the procurement , production, processing, storage and distribution of dairy products. India as nation stands first in its share of dairy production in the international scenario. The industry contributes about Rs 1, 15, 970 to the national economy The Indian Diary industry which is in the developing stage provides gainful employment to a vast majority of the rural households. It employs about 8.47 million people on yearly basis out of which 71% are women Jobs in Indian dairy industry are mainly in the fields of production and processing of dairy products. An individual with minimum of 60% marks who has bachelors degree course in the dairy technology can easily be availing an opportunity to work in this industry. For the graduation course in Dairy technology one has to qualify the All India Entrance Test that is affiliated to the Indian Council of Agricultural Research. After that the person can continue with his masters in dairy technology. Jobs would be for the following positions Dairy Scientists: The main job of the dairy scientists is to deal with collection of milk and taking care of the high yielding variety of animals. Dairy Technologists: The work of Dairy technology requires procurement officers who take the responsibility of collecting milk from farmers, milk booths and cattle-rearers. This particular procurement officer should well understand the latest technology that is applicable in maintaining the quality of milk of the process of transporting it to the desired location. Dairy Engineers: Dairy engineers are usually appointed is to set up and maintain dairy plants. Marketing Personal: These individuals deal with the sale and marketing of milk together with milk products.

In India Milk production is dominated by small and marginal land-holding farmers and also by landless labourers who in aggregate own 70% of the national milch animal herd. And as the crop production on 78% of the agricultural land still depends on rain, which is prone to both drought and floods, rendering agricultural income is very much uncertain for most of the farmers.

Dairying, as a the society. Usually one or two milch animals enable the farmers to generate sufficient income to break the vicious subsistence agricultural-debt cycle. The Operation Flood which is the successful Indian dairy development programmed has analyzed that how food aid can be utilized as an investment in building the type of institutional infrastructure that can bring about national dairy development. Programmes like this, with similar policy orientations, may prove to be appropriate to dairy development in India. India in the early 1950's was commercially importing around 55000 tonnes of milk powder annually to meet the urban milk demand. Most of the significant developments in dairying have taken place in India in this century only.

Fluid Milk Ghee Butter Curd Khoa ( Patially Dehydrated Condensed Milk) Milk Powder including IMF Paneer and chhana Other including cream , ice cream

46.0% 27.5% 6.5% 7.0% 6.5% 3.5% 2.0% 1.0%

1.1 INTRODUCTION TO THE PROBLEM

The Indian market is dominated by a large number of small local and regional players. There are an estimated 150 manufacturers in the organized segment, which accounts for 30-35% of sales and about 1000 units in the unorganized segments of the market. In the organized segment the significant brands are Kwality Walls , Vadilal, Amul, Havmor, Mother dairy and Baskins & Robbins. GCMMF is facing very tough competition from both in and outside India.

Amul combats competition from its competitors by providing quality products at a price which its customers value. Along with good quality products and reasonable price the packaging is also very good. Most of its products are available in many flavors. Excellent advertising backs its products and helps GCMMF (AMUL) to leave its competitors a tough time. Also Amul has come out with Amul Parlours to cater to various segments of customers. Amul has a very strong Brand Image in the Domestic market. Many products are exported by GCMMF.

PROBLEM ARRISES In competitative world Amul has many competitors that sells milk and milk products in the market. To position of Amul milk dairy and also to know strengeh of Amul among its competitors. Have to find AMUL IS THE BIGGEST SELLER OF MILK AND MILK PRODUCTS IN INDIA AMONG ITS COMPETITORS This will help us to know Amul can able to compete in market
and target more customers by increasing sales.

1.2 REVIEW OF LITERATURE

Milk- Development or Revolution

Published on: 01/31/2011

Author : Dr.P.George K John (Animal Feed Specialist)

India, the cradle of Indus valley civilization, is well-known for the agriculture in the past. Aryans had brought with them cows to generate power for agriculture operations and milk for their consumption. The story of 'holy cow' is till in the history and is used as a mighty tool in politics. Nevertheless India has been recognized as the top nation in the world for milk production reaching 104 MMT (NDDB). The advent of milk cooperative movement in the middle of the last century under the unique leadership of Dr.V.Kurien lifted the country to such an enviable position. He, a highly qualified and USA trained dairy engineer sacrificed his whole life for the cause of milk industry in India and converted Anand a remote village into the centre of operations for the country.

The development was totally based on the industry by introducing milk process, product development and marketing to fetch reasonable income to the poor farmers who had to throw away milk after two hours unless sold. Once the market got established the operation agreed to spend some fund for the development of cattle. The operation remained in the area of animal reproduction and veterinary treatment. The trader's intervention in enhancing the price of cotton seed the then feed for milk production forced Dr. Kurien to introduce the feed industry as a part of his operation.

Ultimately the milk revolution called 'Operation Flood' had the following industrial wings.

1. Dairy plant 2. Feed plants 3. Semen bank 4. Veterinary mobile units.

The major portion of the operation 'the milk production' remained invisible with the poor farmers. Since no one estimated the costing at the farmer's door step and the farmer considered the money flown to his hands as sole profit the system flourished.Hence the milk industry in India had the strength of 340 million cows, 64 million buffaloes clustered to 150 dairy projects (NDDB 1990). Prof. Ramaswamy who argued for bullocks claimed that 200 million cows produce 80 million bull calves in a year which contribute to the large quantity of milk production in the country. The bottom line is there was no thrust to increase the productivity of dairy cows and buffaloes in India.

When large farms with high producing cows were coming up in the developed countries there was no encouragement for such operations in India. As long as milk was available at reasonable price there was no cry from the public against the cooperative system which remained unpolluted with politics with their bye laws. The milk price was increased carefully to avoid public agitation. Operation flood also formed a milk grid to flow milk to the deficient states to stabilize the price.

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 FUTURE PLAN Chairman's Speech: 36th Annual General Body Meeting held on 18th August, 2010, The year that passed by was challenging one, not just for the global economy as a whole but also for India and its dairy industry. During the last year, India witnessed one of the worst monsoons in two decades leading to drop in agricultural production mainly in case of Wheat, Rice, Sugar and Pulses with its impact varying across different geographies and categories. With record buffer stock of Rice and Wheat accumulated by the Government during previous year, the nation could meet demand of Rice and Wheat from within. However in case of Sugar and Pulses, we had to resort to large-scale imports. India being one of the largest consumers of Pulses and Sugar in the World, import of these commodities resulted into record International prices and domestic prices too, shot up leading to price increases not only in these commodities but also in their substitutes and by-products. Compared to these commodities, there was relatively lower impact of draught on milk production in the country and substantial growth has also been achieved. Due to the sound procurement and distribution network as well as immaculate planning, in Gujarat we were able to wither the draught and also achieve 6.68% growth in milk procurement. We could foresee the impact of below normal monsoon in August 2009 itself and started planning to maintain milk production, procurement and inventory levels. At a time when due to lower production of cereals, fodder prices had jumped almost two-fold, we enhanced our 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.Our cooperative system stood by their members on one hand and also tried to be more cautious in keeping the consumers prices of milk and milk products at the barest minimum.

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Our cooperatives have therefore been successful in enhancing trust amongst its members as well as consumers during such difficult time. We are sure that with these measures and near normal monsoon during the next year, would lead to major increase in milk production as well as procurement. The current drought can be mainly attributed to the phenomenon of world-wide climate change. Developed nations in their quest for industrialisation, have perpetrated unhealthy levels of carbon emissions in the atmosphere. Developing nations including India have also joined the league. While every nation has a right of economic development, the current carbon emissions are not desirable and must be immediately brought down in order to provide a better tomorrow to our future generations. Our dairy cooperatives have initiated various activities to tackle this challenge prominent being; Tree Plantation Programme for afforestation, installation of Bio-gas plants for curbing methane emissions, installation of solar power packs at village level, adoption of energy efficient methods for milk processing and distribution, etc. While the previous year led to the world-wide economic recession, the year in retrospect was more of a global effort to overcome from the recession and all major economies announcing stimulus packages to provide necessary momentum to the economies. All these measures have restricted the fall in growth rates of developed nations, large-scale Government spending and cut in taxes have led to huge sovereign debts and many countries especially in Western Europe are battling to address this issue. In case of India however, the effect of economic recession was lower due to the inherent nature of the domestic consumption led growth story of the economy. Further, the slew of stimulus measures announced by the Government has provided necessary momentum to the economy and the economy is again geared to achieve double-digit growth in the coming years. Apart from the tax breaks provided to various Industries in form of stimulus package, the economy also got a boost from the increase in Government spending, which had a cascading effect leading to higher consumption.

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1.3 SIGNIFICANCE OF STUDY

Create the awareness in the market.

Building confidence in retailers as well as in the customer.

To Understand the terminologies used in market by retailers.

Develop the usefulness in enhancing the usability of the product.

To know different selling skills at various situation of market.

To learn different strategies which are used by retailers in market to convince the customers

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1.4 OBJECTIVE OF STUDY

1) To know the market share of Amul products

2) To know the perception of customer regarding Amul products

3) To know effectiveness of marketing strategy and sales promotion in market

4) Evaluating the competitors strength and weakness in market

5) Retailer expectation from company

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1.5 SCOPE OF THE STUDY

This project is used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process Our marketing research on Amul specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications. It help to know about consumer that concentrates on understanding the preferences, attitudes, and behaviors of consumers in a market-based economy, and it aims to understand the effects and comparative success of marketing campaigns and also relevant, accurate, reliable, valid, and current information. Competitive marketing environment and the ever-increasing costs attributed to poor decision making require that marketing research provide sound information. Sound decisions are not based on gut feeling, intuition, or even pure judgment Cooperative dairy giant Amul is aiming to expand its presence out of India. It is considering to open a processing facility in US and subsequently Europe market. The representatives of Kaira District Co-operative Milk Producers' Union Limited that operates 65 year old Amul Dairy are likely to visit US next month to shape its ambitious plans to go international. The delegation will prepare a detailed report for costs and logistics. Currently, apex marketing body of 13 district unions, including Kaira Union, Gujarat Cooperative Milk Marketing Federation Limited (GCMMF) is exporting Amul and Sagar dairy products in middle east , Europe and US. "Considering presence of a million Indian families in US, we are anticipating market for at last 500 tonne of Ghee. Today, GCMMF exports only 500 tonne of ghee per annum.

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1.6 METHODOLOGY
Research is defined as human activity based on intellectual application in the investigation of matter. The primary aim for applied research is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. Scientific researchrelies on the application of the scientific method, a harnessing of curiosity. This research provides scientific information and theories for the explanation of the nature and the properties of the world around us.

METHODS OF DATA COLLECTION

o PRIMARY DATA

Primary data was collected through personnel interview and seeks answer to a setof preconceived questions in a structural way.The data collected through interview and observation called primary data because the researcher attains them from the field of research directly and for the first time.

For this research the researcher uses the following methods:

Personal Interview

o SECONDARY DATA

Secondary data are the information, which are attained indirectly. The researcher does not attain them himself or directly. Secondary data are generally attained from published and unpublished materials. They can gathered from public documents such as diaries, letters or they can gathered from public documents such as books, manuscripts, records and census reports.

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Secondary data were collected also from the other sources like company journals, company web site, company brouchers and internet.

1.7 SAMPLING PLAN

SAMPLE UNIT o The sample unit consists of milk retailers

SAMPLE SIZE o A sample size of 28 milk retailers that sells Amul milk and milk products with competitors products .

SAMPLING METHOD o The sampling method adopted was Simple random sampling.

RESEARCH TOOL o Pie Diagram and Bar Charts o Simple Percentage Analysis

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 Sample design Sampling is a product of obtaining information about an entire population by examining only a part of it As depricted below , I have taken 14 retailers as may sample size. Retailers 28

Analytical tools : This study is based on collecting data by using well-connected questionnaire for consumer from various demographic segments and also data is collected using secondary sources. After collecting data it is arranged in the form of tables from analysis and interpretation. Graphs and percentage are analysis are the main tools used for the purpose of interpretation. Survey were conducted by me in the following Areas: 1. Kajupada 2. Safedpool road 3. Jari mari road 4. Tanaji nagar 5. Krishna nagar 6. Barnat market 7. Paredwadi 8. Asalpha pipeline

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1.8 CHAPTERIZATION
Further content had distributed in chapters that will help us to get proper understand and we should always select process of making research in correct manner so that we can able to get right final conclusion. Chapter 1 : This chapter focus on origin of milk dairy industry in India. In now current competitive situation Amul is the biggest player in the market. So lets focus on Amul and analysis the current position of Amul and assume one find final research Amul is the biggest seller of milk and milk products in the India among its competitors. To find out our assumption we had set objectives, research methodology, research design, samping plan etc. Chapter 2 : This chapter has assess all current data and facts of Amul also its competitors that compete tough with Amul to know more specific about Amul. Chapter 3 : All theory like Amul market facts that describes winning competitive position by Amul etc. Concepts helps us to better understanding this hilps to gain more knowledge to know Amul is the biggest seller of milk and milk products in the India among its competitors . Chapter 4 : After making primary data and also introducing secondary data that helps to data analysis and interpretation to obtain final conclusion of our research . Chapter 5 : From chapter 1,2,3 and second last chapter 4 we finally came to know hypothesis we had mad past Amul is the biggest seller of milk and milk products in the India among its competitors had become true . Our all objectives had also shown us posititive impact that has strong position in market to sell products and also to fight with competitors.

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Chapter 2

INDUSTRY AND COMPANY PROFILE

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2 INDUSTRY AND COMPANY PROFILE

2 (A) INTRODUCTION TO THE INDIANDAIRY INDUSTRY The world's biggest dairy producing country is growing fast and looking to become an export powerhouse despite major quality problems. India is the world's largest milk producing country and is growing fast, with an eye toward becoming a major dairy exporter. Consumer Habits and Practices Milk hasbeen an integral part of Indian food for centuries.The per capitaavailability of milk in India has grown from 172 gm per person per day in 1972 to 182gmin 1992 and 203 gm in 1998-99.This is expected to increase to 212gms for 2008. However a large part of the population cannot afford milk. At this per capita consumption it is below the world average of 285 gm and even less than 220 gm recommended by the Nutritional Advisory Committee of the Indian Council of Medical Research. There are regional disparities in production and consumption also. The per capita availability in the north is 278 gm, west 174 gm, south 148 gm and in the east only 93 gm per person per day. This disparity is due to concentration of milk production in some pockets and high cost of transportation. Also the output of milk in cereal growing areas is much higher than elsewhere which can be attributed to abundant availability of fodder, crop residues, etc .Which have a high food value for milky animals. In India about 46 per cent of the total milk produced is consumed in liquid form and 47 per cent is converted into traditional products like cottage butter, ghee, paneer ,khoya, curd, malai, etc. Only 7 per cent of the milk goes into the production of western products like milk powders, processed butter and processed cheese.

The remaining 54% is utilized for conversion to milk products. Among the milk products manufactured by the organized sector some of the prominent ones are ghee, butter, ice creams, cheese, milk powders, malted milk food, condensed milk infants food etc.

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It is estimated that around 20% of the total milk produced in the country is consumed at producer household level and remaining is marketed through various cooperatives, private dairies and vendors. Also of the total produce more than 50% is procured by cooperatives and other private dairies. While for cooperatives of the total milk procured 60% is consumed in fluid form and rest is used for manufacturing processed value added dairy products; for private dairies only45% is marketed in fluid form and rest is processed into value added dairy products like ghee, makhan etc

Still, several consumers in urban areas prefer to buy loose milk from vendors dueto the strong perception that loose milk is fresh. Also, the current level of processing and packaging capacity limits the availability of packaged milk. The preferred dairy animal in India is buffalo unlike the majority of the world market, which is dominated by cow milk. As high as 98% of milk is produced in rural India, which caters to 72% of the total population, whereas the urban sector with 28% population consumes 56% of total milk produced. Even in urban India, as high as 83% of the consumed milk comes from the unorganized traditional sector. Market Size and Growth

Market size for milk is estimated to be 36 mm MT valued at Rs 470bn. The market is currently growing at round 4% pa in volume terms. The milk surplus states in India are Uttar Pradesh , Punjab, Haryana, Rajasthan ,Gujarat, Maharashtra ,Andhra Pradesh, Karnataka and Tamil Nadu.The manufacturing of milk products is concentrated in these milk surplus States. The top 6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu and Gujarat together account for 58% of national production.

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2 (B) PROFILE OF AMUL DAIRY INDUSTRY

Amul means "priceless" in Sanskrit. The brand name "Amul," came from the Sanskrit word "Amoolya," was suggested by a quality control expert in Anand. Amul was formed in 1946, which is a dairy cooperative in India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.8 million milk producers in Gujarat, India. VISION

Amuls is to provide more and more satisfaction to the farmers , their customers, employees and distributors. Mission

We the motivated and dedicated workforce at Amul are committed to produce wholesome and safety food of excellent quality to remain market leader through development of quality management system state of art technology. Innovation and eco-friendly operations to achieve delightment of customer and milk producers Amul is based in Anand, Gujarat and has been an example of a co-operative organization's success in the long term. "Anyone who has seen the dairy cooperatives in the state of Gujarat, especially the highly successful one known as AMUL, will naturally wonder what combination of influences and incentives is needed to multiply such a model a thousand times over in developing regions everywhere." The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand. Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (200607). Currently Unions making up GCMMF have 2.8 million producer members with milk collection average of 10.16 million liters per day. Besides India, Amul has entered overseas markets such as Mauritius ,UAE, USA, Banglades Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to

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enter Japanese market in 1994 did not succeed, but now it has fresh plans entering the Japanese markets. Other potential markets being considered include Sri Lanka.

ORGANIZATION STRUCTURE

Organization structure is divided into two parts:

1) External organization structure 2) Internal organization structure

1) External organization structure

External organization structure is the organization structure that affects the organization from the out side.

STATE LEVEL MARKETING FEDERATION

DISTRICT MILK PRODUCT UNION Ltd.

VILLAGE MILK PRODUCT UNION Ltd.

VILLAGERS

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As we know, GCMMF is unit of Gujarat Milk Marketing Federation, Which is a co-operative organization. The villagers of more than 10,000 villages of Gujarat are the bases of this structure. They all make village milk producers union, district level milk producers union and then a state level marketing federation is established. The structure is line relationship, which provides easy way to operate. It also provides better communication between two stage

2) Internal organization structure

Internal organization structure is the organization that affects the inside of the organization i.e. employees, managers, clerks, staff etc

A systematic and well defined organizational structure plays a vital role and provides accurate information to the top-level management .An organization structure defines a clear cut line of authorities and responsibilities among the employees of GCMMF.

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INTERNAL ORGANIZATION STRUCTURE CHART

CHAIRMAN MANAGING DIRECTOR GENERAL MANAGER ASSISTANT GENERAL MANAGER

FINANCE DEPARTMENT SENIOR MANAGER FINANCE MANAGER PRODUCTION DEPARTMENT SENIOR MANAGER PRODUCTION MANAGER MARKETING DEPARTMENT SENIOR MANAGER MARKETING MANAGER PURCHASE AND SALES DEPARTMENT SENIOR MANAGER SALES MANAGER PERSONNEL DEPARTMENT SENIOR MANAGER PERSONAL MANAGER

ACCOUNTS MANAGER

OFFICER

MARKETING EXECUTIVE

OFFICER

P.R.F

ACCOUNTANTS

SUPERVISOR

F.S.R

SALESMAN

EXECUTIVE

The organization structure of Amul is well-arranged structure. At a glance a person can completely come to know about the organization structure. Amul is leaded by the director under him five branches. They are Factory, Marketing, Accounts, Purchase, Human Resources Department.

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 The Three-tier "Amul Model" The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level which in turn is further federated into a Milk Federation at the State level. The above three-tier structure was set-up in order to delegate the various functions, milk collection is done at the Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation. This helps in eliminating not only internal competition but also ensuring that economies of scale is achieved. As the above structure was first evolved at Amul in Gujarat and thereafter replicated all over the country under the Operation Flood Programme, it is known as the Amul Model or Anand Pattern of Dairy Cooperatives It all started in December 1946 with a group of farmers keen to free themselves from intermediaries, gain access to markets and thereby ensure maximum returns for their efforts. Based in the village of Anand, the Kaira District Milk Cooperative Union expanded exponentially. It joined hands with other milk cooperatives, and the Gujarat network now covers 2.12 million farmers, 10,411 village level milk collection centers and fourteen district level plants under the overall supervision of GCMMF.

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There are similar federations in other states. Right from the beginning, there was recognition that this initiative would directly benefit and transform small farmers and contribute to the development of society. Markets, then and even today, are primitive and poor in infrastructure. Amul and GCMMF acknowledged that development and growth could not be left to market forces and that proactive intervention was required. Two key requirements were identified. The first, that sustained growth for the long term would depend on matching supply and demand. It would need heavy investment in the simultaneous development of suppliers and consumers. Second, that effective management of the network and commercial viability would require professional managers and technocrats. To implement their vision while retaining their focus on farmers, a hierarchical network of cooperatives was developed, which today forms the robust supply chain behind GCMMF's endeavors.

The vast and complex supply chain stretches from small suppliers to large fragmented markets. Management of this network is made more complex by the fact that GCMMF is directly responsible only for a small part of the chain, with a number of third party players large roles. Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by low consumer prices supported by a low cost system.

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 Developing demand

At the time Amul was formed, consumers had limited purchasing power, and modest consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money. Introducing higher value products Beginning with liquid milk, GCMMF enhanced the product mix

through the progressive addition of higher value products while maintaining the desired growth in existing products. The distribution network Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. This practice is consistent with GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping.

Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This just-in-time inventory strategy improves dealers' return on investment (ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle operations.

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About 1200 distributors in small towns across India were added during this initiative. Today about 3000 Distributors ensure availability of our products across India, whether it is in Leh or Lakshadweep, in Kutch or Arunachal.

Simultaneously, to augment fresh milk distribution in various markets of India, approximately 1400 exclusive Milk Distributors have been inducted. Mascot Since 1967 Amul products' mascot has been the very recognizable "Amul baby" (a chubby butter girl usually dressed in polka dotted dress) showing up on hoardings and product wrappers with the equally recognisable tagline Utterly Butterly Delicious Amul. The mascot was first used for Amul butter. But in recent years in a second wave of ad campaign for Amul products, she has also been used for other product like ghee and milk. Advertising Its advertising has also started using tongue-in-cheek sketches starring the Amul baby commenting jovially on the latest news or current events. The pun in her words has been popular. Amul outdoor advertising uses billboards, with a humorous take on current events and is updated frequently. The Amul ads are one of the longest running ads based on a theme, now eying for the Guinness records for being the longest running ad campaign ever with Smokey Bear. Sylvester D Cunha was the Managing Director of the advertising agency, ASP, that created the campaign in 1967. The slogan for amul ice-cream is"Real Milk, Real Ice-cream".

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 Amuls Advertising Campaign Simple, social message, Creative & Always Funny

Amul - Utterly Butterly Delicious Utterly dishy or the story of a girl who wont grow up! Let us start with telling you something you didnt know about Amul the Amul advertising campaign which is Indias longest running ad campaign at present is going to make a bid in the Guinness Book of World Records for being one of the longest running ad campaigns in the whole world (Only the American Smokey Bear campaign is older). The Amul ads have almost become a part of folklore in the Advertising and Communications industry nowadays and when we checked out its inception we found out this amazing nugget.

Can you believe that the chubby-faced angelic polka-dotted Amul moppet was brainstormed to counter the Paulson doll, a glam desi girl with all the works, long before the reality show was in? Paulson, the competitor of Amul had relied on the old-as-hills strategy of having an image in itsy-bitsy clothing and when Sylvester daCunha got hold of the Amul account in 1966, he along with the art director Eustace Fernandez hit bulls eye by figuring out the mascot of a girl who will have all the fun by not growing up!

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Initially, the ads chugged on the strength of their base line and witty puns but later they went on to become more topical. Now, if we look back at the archives of Amul ads, we would see history unfurl before our eyes.

See the early ones:

This is what one would call keeping it straight and simple!

Another one from the days when things were beginning!

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And then the ads became more topical. The ones on Gavaskar look dated but you still can enjoy the fun :

Ha, Ha! Those guys must have had a rocking time while creating moments like these! And now, as we all know, it has become more than an ad if thats possible and also become a social critique that entertains as well as educates. Be it the controversy on Tata Nano, Himesh Reshammiyas stardom, the IPL fracas or the comedy Lage Raho Munnabhai the ads are always laugh out loud funny.

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See for yourself-

That's nano flattery Is there any better way to sum up the controversy?

Himesh Reshamiya and Amul - Feeling the nasal effect?

Munnabhai or is it "Maska Bhai"? Laugh out loud!

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Even Cricket is not spared by Amul's cheeky humo Mark the change. This reflects the present professional spirit to the hilt and if the charm and pace of the gentelemans game is missing, then it is because we have moved on. And Amul ads are so clued in with each of these perceptional shifts that you feel like you are living history if you rewind!

Dhoni in Amul's radar Guess, Bollywood will alaways be relevant in India. This is a take on the titletrack of super duper oldie called Amar Akbar Anthony and the track goes like Anhonee ko honee kar de, honee ko anhonee/ Ek jaigah jab jamah ho tinoh Amar Akbar Anthon. Is this why they call old is gold because we can use them again and again J ?

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Shreesanth - Center of controversy Even fakeiplplayer must be laughing his guts out! We dont need to be in-your-face to make our point.

SAFETY STANDARDS AND ENVIRONMENTAL CONCERNS Amul have created strong brand name in the market, with the help of their commitment to customers, and by providing best quality products at reasonable price.
QUALITY MOVEMENT QUALITY POLICY The motivated and devoted work-force of AMUL- are committed to produce wholesome and safe foods of excellent quality to remain market leader through deployment of quality management systems, state-of-art-technology, innovation and eco-friendly operations to achieve delightment of customers and betterment of milk producers.

1) Quality Management System Initiative. The initiation of Total Quality Management (TQM) way back in 1994 was to work with the well known quality management initiatives which have proven to be effective elsewhere to create a culture of transparency, openness and leadership in the organization.

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As a very unique measure Amul extended all the TQM initiatives to its business partners whether it was the farmer producer in the village or a wholesale distributor in a metro town or its most sophisticated production unit.From the strength of Total Quality Management initiative Amul went on to implement Quality Management System of International Standard. Amul has been the first dairy in India to get accredited with certification of ISO 2200:2005 & ISO 9001 for its operations and plants. Further Amul has set an example that village Dairy Co-operative Societies could also achieve this milestone as these societies are accredited with ISO 9001:2000 a remarkable achievement in the history of irying in India.

2. Amul Plants are certified by Agricultural and Processed Food Exports Development Authority (APEDA) for export of dairy products to international markets. Gujarat Co-operative Milk Marketing Federation (GCMMF) which markets and exports dairy products under the brand of Amul has bagged award 11th time for excellent performance in exports of dairy products from APEDA - 2008-09, IMC Ramkrishna Bajaj National Quality Award 2003, "Best Best of All" Rajiv Gandhi National Quality Award - 1999, The International Dairy Federation Marketing Award (2007) for Amul pro-biotic ice-cream launch.

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FOOD SAFETY POLICY

We at AMUL, are committed to produce safe and wholesome food to continually remain as the market leader by providing food products delighting customer expectations and bestow safety.

We strive to achieve this by:

Improving raw milk quality. Applying innovative technology for manufacturing food products. Employing quality and food safety management practices to manufacture food products in a eco-friendly environment. Meeting applicable statutory and regulatory requirements . Effectively communicate and constantly improve professional skills of employees emphasizing continuous improvement of quality and food safety issues.

Amul has implemented the Quality Management System of international standard to offer invaluable products to national and international customers. Its plants are certified for ISO 22000:2005 for excellence in food safety management system

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4. ISO Accreditation of Primary Dairy Co-operative Societies: Amuls primary village cooperative societies are the first grass root level organizations in the rural sector to achieve ISO 9001 : 2000 certification in India, perhaps in the world. This has been possible because of Amuls continued commitment to offer consumers excellent products from the house of Amul.

The focus on health and hygiene, housekeeping, village chilling units, management of village co-operative societies, rapid transportation of raw milk to dairy plant, accelerated milk handling at the dairy reception dock has retained the freshness of milk being received at dairy plant. To sustain and rebuild on this effort, training programmes are organised for all the 2) stakeholder groups involved in the milk procurement chain, namely, milk producers, village society personnel and dairy plant personnel. Laboratories are equipped with state of the art equipments and well trained professional

5.Hygienic & Clean Milk Production Drive

The primary village dairy co-operative societies operate every morning and evening for the village farmers. Milk delivered by a producer is measured and a sample is drawn for a qualitytesting. Each centre is equipped with an electronic milko-tester for testing quality of milk, automatic weighing machine for weighing of milk with data processing facilities. 3)

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The entire operation is electronically captured with member-id. Various training programmes, especially on quality management system, good management practises in animal husbandry are imparted on continuous basis to member producers, dairy co-operative personnel and personnel at dairy plants.

6. Bulk Milk Chillers: As a part of Amuls quality movement Bulk Milk chillers are introduced at primary village cooperative society level. This system has drastically improved the microbiological quality of milk, therefore better return to farmers and good quality of products to consumers. Special 4) trainings are imparted to dairy co-operative personnel for better management of Bulk Milk Chillers.

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7. Road Milk Tankers

The chilled milk of the co-operative societies are transported to Amul Dairy Plant through road milk tankers once in a day. These milk tankers are insulted to safeguard the quality of milk. A tanker carries three to four societies milk together which helps in achieving economy in transportation of milk. These tankers are thoroughly cleaned at every unloading of milk at Dairy Plant and certified for its hygiene for transportation of milk by QC personnel.

This system has almost wiped out any possibility of spoilage to milk. Chilling milk at grass root level and transportation of the same in road milk tankers have reduced microbial load in raw milk which in turn has reduced processing costs in terms of energy, thereby better return to farmer producers.Geo-remote sensing based vehicle tracking system has been put in use for efficient handling of Road Milk Tankers carrying milk to Dairy Plant.

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8. Animal Disease Diagnostic Laboratory

The mobile and immobile laboratories have contributed to clean milk production drive in routine and emergencies especially in cases of plant or chemical poisoning and diseases claiming sudden death of animals; prompt and accurate diagnosis of the disease to keep the livestock in sound health, taking adequate preventive measures to avert major outbreak of diseases by diagnosing the disease at an early stage; planning for appropriate feeding strategy with the help of complete analysis of metabolic profile of the animal; improving infertility by timely remedial measures; timely detection of sub clinical cases of mastitis and control the incidences; assessing efficacy of vaccination could be determined by detection vaccination tite.

9.Animal Nutrition

Amuls focus on balanced cattle feed supplies to its dairy farmers has helped in better productivity and cattles free from problems associated with malnutrition. This has been possible due to its state-of-art cattle field plant which produces more than 1100 Tons of cattle feed daily. It has future plan to expand its present manufacturing capacity. Amul also helps in development of green fodder.

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10 . Quality of life: Assured market for their milk and daily income round the year from milk has improved the quality of life of farmers. The role village dairy co-operative societies in the over all development of the villages have brought better social infrastructures in the villages such as roads, communication system, schools, health centers, water facilities, banks etc. Introducing higher value products for its customers

Beginning with liquid milk, GCMMF enhanced the product mix through the progressive addition of higher value products while maintaining the desired growth in existing products . Despite competition in the high value dairy product segments from firms such as Hindustan Level, Nestle ,and Britannia ,GCMMF ensures that the product mix and the sequence in which Amul introduces its products is consistent with the core philosophy of providing milk at a basic

Price 1. Amul. India has brought a whole new revolution when it comes to pricing strategies which s evident through the success of its amul pralours outlets.

2. The main objective of Amul is to produce the low price and profitable for the customers. 3. Amuls product pricing reflecs the affordability of the local consumers. affordable price.

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 AMUL RELIEF TRUST GCMMF formed a specific organization named Amul relief trust. Donation of 50 million given for reconstruction of the school building. Trust reconstructed 6 schools for a cost of Rs 41.1 millions. High revenue to government GCMMF has signed an agreement with wal-marl to stock its shelves with products under its Amul brand name . Amul processed cheese, pure ghee, shrikhand, nutramul , amuls mithaee Gulab Jamuns are few of the products marketed in the US markets. 1. 50 per cent of Americans being medically obese , and if Amul is really looked to capture the hearts of the second and third generation . Indians, offering low-fat versions of its brands , would make a lot of commercial sense. 2. Hence targeting the large Indian community in the US markets will its niche products like mithai, packaged ready to eat foods market it can definitely expand its market to a large extent. 3. Oversas Market Mauritius, UAE, Bangladesh, Australia, China, Singapore, Malasia, Nepal, Pakistan, Hongkong and a few South African countries. 4. Fresh plans of flooding the markets of Japan and Srilanka 5. Tie up with Glaxo to sell baby food. 6. According to points considered above the government of India gets Good foreign exchange, because of exports done by AMUL.

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 Rivals The success of Amul resulted in similar organizations being setup by state governments throughout India, most of which had reasonable success. Examples are Milma in Kerala, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, K.M.F in Karnataka, Sudha in Bihar, Omfed in Orissa, saras in Rajasthan, Parag in Uttar Pradesh, Verka in Punjab, Aanchal in Uttarakhand, Vita in Haryana and others.Other co-operative rivals of Amul include National Dairy Development Board (NDDB) . With Amul entering the sports drink market, its rivals now include Coca Cola and PepsiCo.

AWARDS The Food Brand Amul has received various awards such as the Ramkrishna Bajaj National Quality Award in 2003, Award International Cio 1000 for Resource fulness, and also the Rajiv Gandhi National Quality Award in 1999. 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.

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 Brand Umbrella

Bread Spreads Amul Butter Utterly Butterly Delicious Amul Lite Low fat, low Cholesterol Bread Spread Delicious Table Margarine The Delicious way to eat healthy

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Milk Drinks Amul Kool Millk Shaake Amul Kool

Amul Kool Cafe

Kool Koko A delight to Chocolate Lovers. Delicious Chocolate taste

Nutramul Energy Drink A drink for Kids provides energy to suit the needs of growing Kids

Amul Kool Chocolate Milk

Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Tetra Pack

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Amul Masti Spiced Buttermilk Amul introduces the Best Thirst Quenching Drink

Amul Lassee

Amul Kool Thandai

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Powder Milk Amul Spray Infant Milk Food Still, Mother's Milk is Best for your baby Amul Instant Full Cream Milk Powder A dairy in your home

Sagar Skimmed Milk Powder Which is especially useful for diet preparations or for use by people on low calorie and high protein diet.

Sagar Tea Coffee Whitener

Amulya Dairy Whitener The Richest, Purest Dairy Whitener

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Fresh Milk Amul Fresh Milk This is the most hygienic milk available in the market. Pasteurised in state-ofthe-art processing plants and pouchpacked for convenience. Amul Gold Milk

Amul Taaza Double Toned Milk

Amul Lite Slim and Trim Milk

Amul Fresh Cream

Amul Shakti Toned Milk

Amul Calci+

Amul Buttermilk

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Cheese Amul Pasteurised Processed Cheese 100% Vegetarian Cheese made from microbial rennet Amul Cheese Spreads Tasty Cheese Spreads in 3 great flavours..

Amul Emmental Cheese The Great Swiss Cheese from Amul, has a sweetdry flavour and hazelnut aroma

Amul Pizza Mozzarella Cheese Pizza cheese...makes great tasting pizzas!

Gouda Cheese

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For Cooking Amul / Sagar Pure Ghee Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience. Pro-biotic Dahi Cooking Butter

Amul Malai Paneer Ready to cook paneer to make your favourite recipes!

Utterly Delicious Pizza

Mithai Mate Sweetened Condensed Milk - Free flowing and smooth texture.

Masti Dahi

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Desserts Amul Ice Creams Premium Ice Cream made in various varieties and flavours with dry fruits and nuts. Amul Shrikhand A delicious treat, anytime.

Amul Mithaee Gulab Jamuns Pure Khoya Gulab Jamums...best served piping hot.

Amul Chocolates The perfect gift for someone you love.

Amul Basundi

Amul Yogi Yoghurt

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2.1 BACKGROUND
The Birth of Amul The birth of Amul at Anand provided the impetus to the cooperative dairy movement in the country. The Kaira District Cooperative Milk Producers Union Limited was registered on December 14, 1946 as a response to exploitation of marginal milk producers by traders or agents of existing dairies in the small town named Anand Milk Producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand. Often milk went sour as producers had to physically carry the milk in individual containers, especially in the summer season. These agents arbitrarily decided the prices depending on the production and the season. Milk is a commodity that has to be collected twice a day from each cow/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 rights to Polson Dairy to collect milk from Anand and supply it to Bombay city in turn. India ranked nowhere amongst milk producing countries in the world because of its limitations in 1946 British Raj. Angered by the unfair and manipulative trade practices, the farmers of Kaira District approached Sardar Vallabhbhai Patel under the leadership of the local farmer leader Tribhuvandas Patel. Sardar Patel advised the farmers to form a Cooperative and supply milk directly to the Bombay Milk Scheme instead of selling it to Polson. He sent Morarji Desai to organize the farmers. In 1946, the farmers of the area went on a milk strike refusing to be further oppressed. Thus the Kaira District Cooperative was established to collect and process milk in the District of Kaira in 1946. Milk collection was also decentralized, as most producers were marginal farmers who were in a position to deliver 1-2 litres of milk per day. Village level cooperatives were established to organize the marginal milk producers in each of these villages.

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The Cooperative was further developed & managed by Dr. V Kurien along with Shri H M Dalaya. The first modern dairy of the Kaira Union was established at Anand. Indigenous R&D 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 were thus laid since India had one of the largest buffalo populations in the world. The success of the dairy co-operative movement spread rapidly in Gujarat. Within a short span five other district unions Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were organized. In order to combine forces and expand the market while saving on advertising and avoid a situation where milk cooperatives would compete against each other it was decided to set up an apex marketing body of dairy cooperative unions in Gujarat. Thus, in 1973, the Gujarat Co-operative Milk Marketing Federation was established. The Kaira District Co-operative Milk Producers Union Ltd. which had established the brand name AMUL in 1955 decided to hand over the brand name to GCMMF (AMUL). With the creation of GCMMF (AMUL), we managed to eliminate competition between Gujarats cooperatives while competing with the private sector as a combined stronger force. GCMMF (AMUL) has ensured remunerative returns to the farmers while providing consumers with products under the brand name AMUL. This was possible due to the leadership of the founder Chairman of AMUL, Tribhuvandas Patel and the vision of the father of the White Revolution, Dr. Verghese Kurien who worked as a professional manager at AMUL. Numerous people contributed to this movement which would otherwise not have been possible. Dr. Verghese Kurien, the World Food Prize and the Magsaysay Award winner, is the architect of Indias White Revolution, which helped India emerge as the largest milk producer in the world. Impressed with the development of dairy cooperatives in Kaira District & its success, Shri Lal Bahadur Shastri, the then Prime Minister of India during his visit to Anand in 1964, asked Dr. V Kurien to replicate the Anand type dairy cooperatives all over India.

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Thus, the National Dairy Developed Board was formed and Operation Flood Programme was launched for replication of the Amul Model all over India. Operation Flood, the worlds largest dairy development programme, is based on the experience gained from the Amul Model dairy cooperatives. The facilities at all levels are entirely farmer-owned. The cooperatives are able to build markets, supply inputs and create value-added processing. Thus, Amul Model cooperatives seem to be the most appropriate organizational force for promoting agricultural development using modern technologies and professional management and thereby generating employment for the rural masses and eradicating poverty in these undeveloped areas. India has already demonstrated the superiority of this approach. ROLE OF Dr.VARGESE IN THE EVOLUTION OF AMUL

Verghese Kurien is called the father of the White Revolution in India. He is also known as the Milkman of India.Born on November 26, 1921 in Kozhikode, Kerala, Dr. Verghese Kurien graduated with Physics from Loyola College, Madras in 1940. Subsequently, he did his B.E. from the Madras University and went to USA on a government scholarship to do his Masters in Mechanical Engineering from Michigan State University. In between, he completed special studies in engineering at the Tata Iron and Steel Company Institute at Jamshedpur, Bihar, in February 1946 and underwent nine months of specialized training in dairy engineering at the National Dairy Research Institute of Bangalore. He was the chairman of the Gujarat Co-operative Milk Marketing Federation Ltd.(GCMMF). GCMMF is an apex cooperative organization that manages the Amul food brand. He is recognised as the man behind the success of the Amul brand. Amul had a revenue of $1b USD in 2006-07. He is credited with being the architect of Operation Flood the largest dairy development program in the world. Kurien helped modernize Anand model of cooperative dairy development and thus engineered the White Revolution in India, and made India the largest milk producer in the world.

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His uncle, John Mathai, was an economist who served as India's first Railway Minister and subsequently as India's Finance Minister. Kurien also set up GCMMF (Gujarat Cooperative Milk Marketing Federation) in 1973 to sell the products produced by the dairies. Today GCMMF sells AMUL brand products not only in India but also overseas. The White Revolution Kurien has since then built this organization into one of the largest and most successful institutions in India. The Amul pattern of cooperatives had been so successful, in 1965, then Prime Minister of India, Shri Lal Bahadur Shastri, created the National Dairy Development Board (NDDB) to replicate the program on a nationwide basis citing Kurien's "extraordinary and dynamic leadership" upon naming him chairman. Kurien also set up GCMMF (Gujarat Cooperative Milk Marketing Federation) in 1973 to sell the products produced by the dairies. Today GCMMF sells AMUL brand products not only in India but also overseas. He quit the post of GCMMF Chairman in 2006 following disagreements with GCMMF management. Kurien, plays a key role in many other organizations, ranging from chairing the Viksit Bharat Foundation, a body set up by the President of India to chairman of the Institute of Rural Management, Anand's (IRMA) Board of Governors in India. Dr. Kurien was mentioned by the Ashoka foundation as one of the eminent present Day Social Entrepreneurs. Kurien's life story is chronicled in his memoirs 'I too had a dream'. Dr. Kurien and his team were pioneers in inventing the process of making milk powder and condensed milk from buffalo's milk instead of cow's milk. This was the reason Amul became so successful and competed well against Nestle who only used cow milk to make powder and condensed milk. In India buffalo milk was the main raw material unlike Europe where cow milk is abundant. India's first Prime Minister Jawahar Lal Nehru visited Anand to inaugrate AMUL "factory" and he embraced Dr. Kurien for his groundbreaking work.

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2.2 INTRODUCTION TO THE GROUP

AMUL has some few important competitors that always in a way to go ahead from Amul and to capture more market than Amul to increase sales. Amul main comprtitors are Mother dairy and Nestle, Amul

Gujarat co-operative milk marketing federation (GCMMF) owns Amul. Rajiv Gandhi National Quality Award and Ramakrishna National Quality Award winner. Amul delivers milk, butter, ghee, ice creams, cheese etc. and has over 50 products. Amul has milk handling capacity of 11.2 million litres per day.

Mother Dairy

Mother dairy is owned by National Dairy Development Board of India (NDDB). It was established in 1974 and is an ISO certified organisation. Also offers Dhaara - range of edible oils and Safal range of fresh fruit juices. Mother dairy markets around 2.8 million litres of milk everyday

Nestle

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

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A) Mother dairy Mother Dairy's range of products include the brands Mother Dairy (milk, milk products, curd, ice cream, butter, etc), Dhara (range of edible oils) and Safal (range of fresh fruits and vegetables, frozen vegetables, fruit juices). Mother Dairy Fruit and Vegetable Pvt. Ltd. offers the following products: Mother Dairy markets dairy products like Liquid Milk, Ice Creams, Flavoured Milk, Dahi, Lassi, Mishti Doi, Ghee, White Butter, Table Butter, Cheese, UHT Milk, Dhara range of edible oils and the Safal range of fresh Fruits & Vegetables, Frozen Vegetables and Fruit Juices at a national level, through its sales and distribution networks, for marketing food items Mother Dairy sources significant part of its requirement of liquid milk from dairy cooperatives. Mother Dairy sources fruits and vegetables from farmers / growers associations. .

The companys derives significant competitive advantage from its unique distribution network of bulk vending booths, retail outlets and mobile units. Mother Dairy ice creams launched in the year 1995 have shown continuous growth over the years and today boasts of approximately 62% market share in Delhi and NCR.

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 QUALITY STANDARDS

Mother Dairy is an IS/ ISO 9002, IS 15000 HACCP and IS 14001 EMS certified organization. Mother Dairy, Delhi has been awarded ISO 9001:2000 (Quality Management Systems), HACCP, 2002 RvA (Food Safety Management Systems) and ISO 14001:2004 (Environmental Management Systems) Certifications. Moreover, National Accreditation Board accredits its Quality Assurance Laboratory as per ISO/IEC 17025:1999 for Testing and Calibration Laboratories, Department of Science and Technology, Government of India.

Focused approach In a nutshell, Mother Dairy wants to get into bigger markets and have bigger shares in those markets. The co-operative is also expanding its product portfolio further to match rival offerings - particularly those of Amul. For the first 22 years of its existence, liquid milk was the only dairy product that Mother Dairy offered. So while the product portfolio has been growing, Mother Dairy has plans for reach out to newer markets but the strategy here is more product specific. In liquid milk, it will initially concentrate only on four markets . Delhi, its home ground; the Junagarh region and Ahmedabad in Gujarat; Mumbai, which it entered a year ago; and Hyderabad, where it moved in a little more than a year ago. Wider spread However, as far as other dairy products are concerned, Mother Dairy plans to expand across the board. In ice creams, it was only two years ago that Mother Dairy entered its first market outside Delhi - UP and Punjab .Today, it's extended its operation to Haryana, Jaipur, Mumbai and Kolkata as well. Next year, it plans to go south to Hyderabad and Bangalore. As far as Mother Dairy's non-dairy products are concerned, edible-oil brand Dhara has already has nationwide presence.

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 Product differentiation While Mother Dairy still may not have a product portfolio as large as Amul, which is also expanding across the country in a big way and is a much bigger player, it's doing its bit. Mother Dairy says the idea is not just to enter new markets, but to do well in those markets which means bigger market shares in the different product categories in whichever market it is present. The drivers will be value created through quality of the offerings as well as innovations in products. This will, of course, be backed by relevant marketing and promotion campaigns. Smart marketing On the marketing front, Mother Dairy says it's trying to take its product campaigns and communications to a higher platform. For instance, in the case of milk, the campaigns do not talk about the obvious benefits milk is good for health, it has calcium and so on but rather it targets children and are created around ideas such as "The country needs you, grow faster". As far as products such as butter, cheese and ice creams go, the campaigns have been created around "taste". For butter again, the focus is on children. "Amul butter may be selling the most, but the advertising and promotions are almost always targeted at adults," points out an analyst citing Amul's popular Utterly-Butterly campaigns. Here, Mother Dairy has dared to go different. Since 60 per cent butter is consumed by kids, the company wants them to sit up and take notice of its butter. Makkhan Singh, a sturdy jovial cow has been made its brand ambassador. It's cheese for children again. A couple of months ago, Mother Dairy carried out a retail activity: "Cheese khao superhero ban jao", where kids buying cheese at a retail outlet were invited for a photo op - dressed as superheros through Polaroid cameras; and the framed photograph was presented to them. The activity was carried out in about 150 outlets in Delhi and Mumbai, with about 20,000-25,000 snaps being taken.

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Cheese was also something that helped the company bond better with its retailers. In November 2005, retailers in Delhi displayed banners proclaiming, "Cheese ke saath bees ki cheez," a proposal that said if a consumer buys Mother Dairy cheese, the retailer can offer him anything worth Rs 20 from the shop - which worked better than offering something free with the product, which the consumer didn't even needs. Marketing drive

Mother Dairy expects new markets to drive up sales of its ice cream by 41% this year, compared to 25% growth last year. Mother Dairy, the Delhi based dairy products company, plans to increase its marketing budget to between Rs35-40 crore, up from Rs25 crore last year, primarily on advertising and promotions of new product launches, mostly in Mumbai and Kolkata. In the ice cream business, where Mother Dairy trails market leader Amul and Kwality Walls, its advertising and promotions budget will double to Rs10 crore. Amul, which is the market leader with 37% market share, spends Rs2.5 crore on advertising. Kwality has a 8% market share and Mother Dairy has about 7%. Mother Dairy expects new markets to drive up sales of its ice cream by 41% this year, compared to 25% growth last year. Set up in 1974 to provide marketing and retail operations for the National Dairy Development Board, which developed Indias milk cooperative movement, Mother Dairy has sales of Rs2,200 crore. More than half of such sales comes from milk sales. It also sells vegetables, oil, ice cream and yoghurt. While in Delhi the growth of our business was supported by the easy accessibility of our own outlets, we do not intend to have our stores elsewhere, says Paul Thachil, Mother Dairys chief executive. We will use the existing retail network so that we are easily available.

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The company intends to have up to 4,000 outlets selling its ice creams in Mumbai by year end from around 2,000 now. But extending its distribution network could be the hardest part, analysts said.Gaining a foothold in Mumbai and Kolkata will also reduce the seasonality of its ice cream business. Nationally, 45% of all ice cream sales take place in March, April and June.

LIMITATIONS

CHARGING MORE THANTHE EXACT MRP

MISBEHAVIOR BY VENDOR

MILK SMELLS LIKE DETERGENT

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B) NESTLE
Marketing of formula One of the most prominent controversies involving Nestl concerns the promotion of the use of infant formula to mothers across the world including developing countries, an issue that attracted significant attention in 1977 as a result of the Nestl boycott which is still ongoing. Nestl continues to draw criticism that it is in violation of a 1981 World Health Organization code that regulates the advertising of breast milk formulas. Nestl's policy states that breast milk is the best food for infants, and that women who cannot or choose not to breast feed for whatever reason need an alternative to ensure that their babies are getting the nutrition they need.

Ethiopian debt In 2002 Nestl demanded the nation of Ethiopia repay $6million of debt to the company. Ethiopia was suffering a severe famine at the time. Nestl backed down from their demand after more than 8,500 people complained to the company about its treatment of the Ethiopian government, and agreed to re-invest any money they received from Ethiopia back into the country. Melamine in Chinese milk In late September 2008, the Hong Kong government claimed to have found melamine in a Chinese-made Nestl milk product. The Dairy Farm milk was made by Nestl's division in the Chinese coastal city Qingdao. Nestl affirmed that all its products were safe and were not made from milk adulterated with melamine. On October 2, 2008 the Taiwan Health ministry announced that six types of milk powders produced in China by Nestl contained traces of melamine. Nestl has announced that it will begin a recall of milk products produced in China.

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2.3 INTRODUCTION TO THE COMPANY

Intelligent marketing

One of the most conservative FMCG entities , GCMMF spend a mere 1% of its turnover on promotions.

GCMMF has written and re-written rules of the game.

Amul butter girl is one of the longest running ad campaigns in the country for 41 years.

Intelligent marketing of milk, ice-cream and butter milk.

Defense Strategy

Moving consumers from loose milk to packaged milk and gradually move them up the value chain.

Expansion to foreign shores

7. GCMMF has signed an agreement with wal-marl to stock its shelves with products under its Amul brand name . Amul processed cheese, pure ghee, shrikhand, nutramul , amuls mithaee Gulab Jamuns are few of the products marketed in the US markets.

8. 50 per cent of Americans being medically obese , and if Amul is really looked to capture the hearts of the second and third generation . Indians, offering low-fat versions of its brands , would make a lot of commercial sense.

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9. Hence targeting the large Indian community in the US markets will its niche products like mithai, packaged ready to eat foods market it can definitely expand its market to a large extent.

10. Being exposed to a brand , its is natural for a customer t try more products. Products vice strategy of amul

1. Ice- cream: Under its sub brand snowcap .Amul launch fundoo to combat to capture the HULs max expanding Ice-cream market. 2. Chocolate: Confectionery amul launch milk chocolate confectionery to compete with Cadbury, Nestle etc. 3. BUTTER : Amul enter this area width low price butter with its main competitor being Britannia its focuses on high margin 4. Cheese: Amul has created a market for its mozzarella cheeses competitor nestle focuses on cheese slices. 5. Paneer: Amul has created a market for its branded paneer by launching non deice product 6. Condensed milk : Amul condensed milk faces heavy gross promotion of nestle milk made. 7. Pizzas: Amul has entered the ready to cook consumer segment through utterly butterly delicious amul.

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 List of Products Marketed

Bread spreads

Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter Cheese Range

Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread

Amul Pizza (Mozarella) Cheese Amul Shredded Pizza Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned Utterly Delicious Pizza Mithaee Range (Ethnic sweets)

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix Avsar Ladoos

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 UHT Milk Range

Amul Shakti 3% fat Milk Amul Taaza 1.5% fat Milk Amul Gold 4.5% fat Milk Amul Lite Slim-n-Trim Milk 0% fat milk Amul Shakti Toned Milk Amul Fresh Cream Amul Snowcap Softy Mix Pure Ghee

Amul Pure Ghee

Sagar Pure Ghee

Amul Cow Ghee

Infant Milk Range

Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 (6 months above

Amulspray Infant Milk Food Milk Powders

Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitene

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 Sweetened Condensed Milk

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardized Milk 4.5% fat Amul Slim & Trim Double Toned Milk 1.5% fat Amul Saathi Skimmed Milk 0% fat Amul Cow Milk Curd Products

Yogi Sweetened Flavored Dahi (Dessert) Amul Masti Dahi (fresh curd) Amul Butter Milk Amul Lassee Amul Ice creams

Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti

Frutti) Nut-o-Mania Range(Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar

Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi) Utsav Range (Anjir, Roasted Almond) Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate) Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black

Currant.)

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 Sundae Range (Mango, Black Currant, Chocolate, Strawberry) Millennium Ice cream (Cheese with Almonds, Dates with Honey) Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi

Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)

Cool Candies (Orange, Mango) Cassatta Tricone Cones (Butterscotch, Chocolate) Megabite Almond Cone Frostik - 3 layer chocolate Bar Fundoo Range - exclusively for kids SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple) HealthIsabcool

Chocolate & Confectionery

Amul Milk Chocolate Amul Fruit & Nut Chocolate

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 Brown Beverage

Nutramul Malted Milk Food Milk Drink Amul Kool Flavoured Milk

Health Beverage

Amul Shakti White Milk Food

Ready to Serve Soups

Masti Tomato Soup Masti Hot & Sour Soup

Recently launched

Amul Ganthiya.

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 Market share

Categories Chocolate drink Butter, ghee Cheese Sweets Milk powder Ice-cream chocolates

Market share 90% 85% 50% 50% 40% 24.75% 10%

Market position 1 1 1 1 1 3 2

Exports

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 9 years. Contests Amul chef of the year, 2007-08 Amul maharani contest,2007-08 Amul food festival contest Winners of slogan likho Disneyland dekho contest Winners of Amulya fly to Bangkok contest

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 The major export products are:

Consumer Packs Amul Pure Ghee Amul Butter Amul Shrikhand Amul Mithaee Gulabjamun Nutramul Brown Beverage Amulspray Infant Milk Food Amul Cheese Amul Malai Paneer, Amul UHT Milk (Long Life), Amul Fresh Cream,Bulk Packs Amul Skimmed Milk Powder Amul Full Cream Milk Powde

The products are exported to 18 countries namely, USA, Kuwait, Qatar, UAE, Yemen, Bahrain, Muscat, Saudi Arabia, Tanzania, Madagascar, Sri Lanka, Singapore, Nepal, Bangladesh, Nepal Thailand and Australia.

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 AMUL MARKETING OBJECTIVES

1) Identify & cater to emerging markets all over India.

2) Create awareness about the brand name and increase customer loyalty.

3) Tackle the problem of imitation of design.

4) Increase retailer satisfaction by providing better margins.

4PS PRODUCT STRATEGIES (MARKETING MIX) Product

Create awareness about its different brands thereby enabling the customer to differentiate between its various brands. Copy-write the packaging design to preserve the distinguishing identity barring competitors from imitating the same. Introduction of larger volume pouches in line with economy packs to provide large scale buyers price benefits. Different shaped pouches for its products for easy identification, e.g Square shaped pouch for Amul Tazaa, rectangular shaped for Amul Gold, etc

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 Place

Place refers to marketing activities that make products available to consumers at the right time in a convenient location. It is the process of moving products from the producer to the consumer, which may involve several steps and the participation of multiple. AMUL has developed federation and AMUL parlors located in several part of country. The GCMMF handles the works relating to managing of stocks and distributors in country. Thus GCMMF look after the disbursement of product to the various marketing channels

Price

It is the value, usually in monetary terms that sellers ask for in exchange for the products they are offering. Pricing and product image are closely related. Customers will pay a higher price for well known, well regarded products, partly because of the image created through advertising and other promotions. This includes list price, discount, allowance, and credit terms. The prices of products of AMUL are also decided by the GCMMF. The GCMMF conducts the market survey to check the validity and feasibility of prices in the market and accordingly decides the prices of AMUL products.

However, the price is inclusive of several elements like,

Cost of milk. Labour cost. Processing cos Packaging cost.

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Advertising cost. Transportation cost. Sales promotion costs. Taxes etc. The GCMMF considers all these cost aspects and set them up in pricing structure to decide the selling price of milk and milk products.

Promotion

Place refers to marketing activities used to communicate positive, information about an organization, its products and activities to directly or indirectly expedite exchanges in target market. It includes a variety of techniques including advertisement, sale promotion, public relation and personal selling that are used to communicate with customers and potential customers.

AMUL promotes its products through newspaper, T.V.; hoarding etc. television is the best media for advertising. The GCMMF however uses hoarding for advertising in local areas. Hoarding designed on the creative basis attract the customer more.

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 THE DIFFERENT PRODUCT FOR DIFFERENT PEOPLE

Amul never forgot its primary customer .

Amul collects 447,000 ltrs of milk from 2.12 million farmers (many illiterate) Product for youth

Amul launched Chocolate milk under brand name of Amul Kool Koko targeting the youth. Product for diabetic people

Indias First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics Product for the health conscious

Amul Launched lowfat, low cholesterol bread spreads

Product for the price sensitive India

Low Priced Amul Ice Creams and affordable sagar whitener Product for the urban class

Amul launched emmental, gouda and pizza mozzarella cheese

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 AMUL PRODUCT MIX

Amul Product Portfolio

Amul mainly produces dairy product which falls under nondurable goods category but also produces durable goods

Examples

Durable Goods :-Milk Powders,Ready to Serve Soups Non Durable Goods:- Fresh Milk,Cheese Range & Ice creams .

Segmentation ,Targeting and Positioning.(S.T.P)

Segmentation

Wide range of product categories caters to consumers across all market segments. For example , Amul kool is targeted at children , while teenagers prefe kool caf , as it has a cool imagery assocated with it .

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Targeting

1. Changing retail environment

2. Striking out on its own, with Amul outlets or parlours to deliver consumer total brand experience.

3. Launched in 2002 , there are now over 4700 Amul parlours across the country, which contributed 3% to the brands total turnover in year 2009

Positioning

An mass market player,no premium offerings. USP : Quality with affordability . Against niche players- value addition to customers. Sheer sze and scale of operation. New offering for health conscious and vibrant India Health and energy drinks stamina , a health drinks made from milk with added vitamin c against red bull and Gatorade, milk better than cola. Aimed at youngsters, priced at Rs12. Ice-cream. Probiotic and sugar- free variants. Chocolates Sugar-free brand called Choco-mini to target the diabetic.

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 Promotion 1. Give this wide product portfolio, Amul s approach is to promote its brands in a rotational cycle of two to three years.

2. After ice-creams were launched in 1996 , the category was re-visied in 1999, in order to improve availability of the product and make it affordable.

3. The focus shifted to cheese in 20001 , Amul Masti chaas in 2004-05 (sales of masti dahi grew by 25% ) nutramul and kool kafe in 2006 and this year the focus is on Amul . koko-cold chocolate drink.

4. Uses a variety of media to communicate.

5. Most fameous is billboard campaign

6. The endearing polka dressed girl and pun at various issues increased brands fan following.

7. Amul food festival , which has been held for the last four year between October and December in about 50,000 retail outlets.

8. The chef of India contest invites people to come up with recipes using as many Amul products as possible.The recipe can be submitted on amuls website.

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9. Slogan like Disneyland dekho contest.

10. Amul maharani contest: Qustions about Amul are asked.

11. Amul sponsored the singing competition. Amul star voice of India , Amul music ka maha mukabla. Cusomer based marke segmentation.

Kids: Amul kool,chocolae, milk nutramul energy drink,Amul kool mlk. Women: Amul calci+. Youth: Utterly Delicious pizza,Amul pizza cheese,Amul cheese spread. Calorie conscious: Amul lite,Sagar skimmed milk powder,Amul lite slim and trim milk. Health conscious: nutramul,Amul shskti health food drink.

Industry based market segmentation.

Milk : Ice-cream manufacturers ,Restaurant/Food chains,Coffee shop Chains.

Butter,Cheese,Ghee: Bakery and confectionaries,Pizza retailers,Snacks Retailers.

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 DIFFERENT SEGMENTS AND DIFFERENT COMPETITORS BUTTER BABY FOOD Dairy WHITENER SEGMENT Britannia. Nestle. Nestle. Heinz. CHEESE ICE CREAMS Nestle. Britannia

CHOCOLATES AND CONFCTIONARIES

Britanna.

HLL

Cadbury Nestle

PIZZA

CURD

MLK ADDITIVES

Pizza Hut Dominos

Nestle

Cadbury

Motherdary

Smithkline Beecham

Nirulas Frozen Pizza ULTRA HIGH TRATED MLK SWEETS CONDENSED MLK Nestle Britannia Nestle Britannia COTAGE CHEESE

FLAVOURED MILK

Britanna Nest;le

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 Product strategy of Amul The taste of India

Product strategy : Overview

1. Product positioning strategy. 2. Product Re-positioning strategy. 3. Product overlap strategy. 4. Product design strategy. 5. Product elimination. 6. Diversification strategy. 7. Value marketing strategy.

1.Product Positioning. o Placing a product n that part of the market .Where it will receive a favorable reception compared to competing products. o Indias first Pro-biotic wellness ice-cream and sugar free delights for diabetics. Amul sugar free. Amul prolife. o Probiotic wellness ice-cream Low price Amul ice-cream made kwalty walls lf hell.

Chocolate milk was launched Amul kool koko

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o Positioning Continued Amul launches chocolate mlk under brand name Amul kool koko. This is targeting at teenagers and youths. o Nov11,2007 Amul in Multinational arena with snack launch: Munch time Flavours: Masala, Mint and Tomato. o New Product activity Nov 26,2007: Amul launches fresh Paneer. (free from any harmful chemicals) o Flank Attack Expanding its cheese segment.

2.Product Repositioning. o New competition. o Change in consumer preference. o Wrong original positioning. Amul marketed bottle water product named JALDHARA but due to less potential in the market it turned out to be blunder. Now Amul is all set to launch bottled water NARMADA NEER.

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3.Product overlap strategy. o Amul processed cheese Vs cheese spread. o Nutramul energy drink Vs Amul kool.

o Situation where company decides to compete against its own brand. Powder milk. Health and price conscious Sagar Vs Amulya-

USP: Sagar is affordable whitener for health conscious one. Cheese Spreads. Specific Vs General. Amul processed cheese Vs Cheese spread. USP : Cheese spread is highly accepted spread for regular use

Milk Drink. Nutramul energy drink Vs Amul kool.

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4. Product Elimination.

o Product reaches the stage where continued support is no longer justified where performance is falling short of expectations, it is desirable to pull the product out of the market place. It eliminated JALDHARA a decade ago as bottled water product do not have potential customers.

5.Diversifcaton strategy. A) Dairy products.

Eg: fresh milk, drinks and desserts, bread spreads, cheese products.

B) Non dairy products Eg: veg oils,snacks, Instant food o Seeking unfamiliar products or markets or both in the pursuits of growth.

Secrets of Amuls diversification philosophy.

Progressive addition of higher value products while maintaining the desired growth in existing products. Amul introduced product with consistent value addition but never left core philosophy of providing milk at a basic, affordable price.

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o Benefits of diversfcation.

High growth. Expansion of network Advantage of each underline objectives.

6.Value marketing strategy.

Providing a product that work as claimed, is accompanied by decent service, and is delvered on time. Commitment to quality. Value for money. The generation for awareness. Fostering of loyality.

The taste of competition.

Ice-cream Amul-Expandng reach. o Expanding marketwith snowcap. o Launched fundoo to combat HLLs Max. HUL-Focusing on lower price point o Building a national chain of ice-cream parlours NIRULAS-Fortifying Delhi-centric presence with ice-cream only retal chain.

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 Chocolate: Amul: launching a puffed-rce cenred bar. Launched milk/Chocolate confectionery. Planning to enter value added segments. Cadbury: Re-launched 5 Star and Gems launched temptations. Nestle: Re-launched 5 Stars and gems launched temptations. HUL: Extended max brand to sugar confectionery. Pizza

Amul : Enterng the ready- to - cook consumer segment through utterly delicious. Nirulas: Fortifying Delhi- Centric presence, by launching frozen ready-to-cook pizza. Pizza Hut:Increase outlets Dominos : Closing unprofitable outlets

Butter

Amul : Protect near dominance in low- margin market wth price. Britanna: focusing on just top 30 cities. Nestle : Outsourced product to complete dairy range.

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 Curd

Amul: Expanding reach by a ligning with other milk co-operatives. Nestle: Means to complete its dairy range. Mother Dairy: leveraging its liquid milk distribution network n delhi.

Dairy Whitners

Amul: Dominate the market through amulya. Britannia: Focusing on few geographical markets with milkman.

Milk Additives

Amul: Not a core competency but part of the range. Cadbury: Re-Launched bournvita recently in new flavours. Smithkline Beecham: Acquired malthova and viva to fortify its stable of Boost and Horlicks.

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 3Cs OF AMUL

1.Customer

3 C's Model
2.Competitors 3.Company

1.Cutomers a. Customers extremely satisfied. b. Moved from loose milk to packed milk. c. Ready to try more products. d. Improved Socio-economic conditions.

2.Competitors a. Defending against Mahananda,Vijay,Milma And other co-operative milk brands.

b. Aggressive moves against Britannia,Nestle,Mother Dairy and Kwality . 3.Company

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a. Largest milk brand in Asia. b. More than 30 dairy brands. c. Market leader n ghee and butter. d. Enjoys fine reputation. e. Quality with affordable

Amul Mix product for everyone.

Amul product for everyone:

Amul collects 7 million liters of milk from 2.6 million farmers (many illiterate). Product for youth: Amul launched chocolate milk under brand name of Amul kool koko targeting the youth.

Product for diabetic people: Indias first Pro-biotic wellness ice-cream and sugar free delights for diabetics.

Product for the health conscious: Amul launched low fat, low cholesterol bread spreads.

Product for the price sensitive India: Low priced Amul Ice-cream and affordable Sagar Whitener.

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Product for the Urban Class:

Amul launched emmental ,gouda and pizza mozzarella cheese.

Amul product portfolio.

Amul milk

Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) is drawing up a fresh game plan for its flangship brand .Amul fresh mlk ,its man rival s mothe dairy India. On Amuls future plan Amul is expanding ther processing and packaging capacity to meet growng demands eg. Delh and Mumbai. In a bid to pump up volume Amul is also extending its distribution network to each new markets. Our coe strategy is to future consolidate our oprations in existing markets. Which incudes kolkatta along with befing up advertising and marketing actions. Incidentially , Amul is selling its packaged milk brands on the net too. Mother dairy is working on similar ground and increasing its reach and both the gains are trying to capture large packaged milk market.

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Amul Butter

Cash cow in the product porfolio. Primary positon as far as butter is concerned with a market share of more than 86 per cent. Amul has introduced a numberof diverse range of varied poducts like cooking butter, low fat butter etc along its main product . Hence covering all the segmens in which a competitor can enter, thus creating strong barriers and in turn playing offence to defend its market poition.

Amul cheese

Variants

Amul Pasteurzed cheddar cheese. Amul Pocessed cheese spread. Amul Pizza (Mozarella) cheese Amul as a brand investing a lot of resource in cheese because it ha to defend its position from the various attacks of its close competitor Britannia and hence attacks itself by introducing new variants in the cheese segment.

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Amul Pizzas

The brand with the hope to double its cheese sales though its recent foray into the marketing of vegetabl pizza introduced Amul pizza. Marketng analyss say that Amuls pizza marketing strategy is unque because it ams at booting sals of an elite. Product (cheese)by pushing down price for Amuls mozzarella cheese is now Rs 48 per 250 gm , While its pocessed cheese slices sell at Rs 43 per 200gm The Pizza route would promote sale of an othrwise Premium product as cheese, they ponted out. Amul aimed to do to piazza What it has aleady done for Ice-cream. They wanted pizza to become a mass consumption item lke Kulcha Chola or Chole Bhature.

Amul ice-cream

24.75 per cent share in the Rs.525 crore Indian market, Mother dairy share of 8.66% and the market leader HUL-Kwality walls wih 28.22%. Amul being the second to the market leader is playing offence at its best .

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 Delhi and the national capital region, whch was hither to deemed to be Mother dairy doman in the ice-cream sector , has already seen.Amul moves in with vengence-market penetration strategy.

Amuls Pro-biotic ice-cream flanking strategy targted at health concious indivduals. In a country like India Where we have waterbone diseases like diarrhoed, eating a spoonful or two of pro-botic ice-cream ,would keep the family healthy and strong. The product was launched with this in view Amul was the first in the country to introduce pro-biotic sugar fee ice-cream and more advantage. pro-biotic sugar fee ice-cream. Hence it also has first

Amul Chocoloates

Market share of roughly 10 per cent company with 70 per cent share of the market leader, cadbuy. The company has maintained a chocolate portfolio for more than20 years, the daiy products major never posed a threat to market leader, cadbury . The company has maintained a chocolate portfolio for more than 20 years, the dairy products major never posed a threat to market leaders such as cadbury and nestle. Amul is reworking its strategy in th chocolate category to push its chocolate product sales. Now, wth a new poduct portfolio , it is planning to create a space for itself.In the chocolate business,Amuls stratgy is to identify the market gaps and try and fil them .

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They have done this in the past with their sugar free and choco. zoo, both of which have been appreciated by the consumers . Now Amul intends to concentrate on the niche segment When it comes to the chocolate range and occupy a position in the shape based chocolate segment and introduce new variants in the same-flanking strategy.

Sagar

Amul ghee 20 per cent share in the ghee market.

Amul has decided to restrict the brand in Gujarat and Maharashtra. Its a dominant player here and uses defence strategy to safeguard its position Ghee is already dominated by local co-operative brands and it will continue with sagar ghee as a regional brands will continue with sagar Ghee as a regonal brand. Will the baseline Flavour of festivals, Sagar Ghee is promoted before very festival in both these states to build demand for the brand. Amul is trying to promote Sagar on the value for money platform. In fact,in the past, the brand used cartoons from R.K.Laxman to drive home the image of a brand for the common man.Today , However the brand is being advertised based on images from festivals. Sagar Amulspray- baby milk powder.

Nestle is the market leader in the segment.This is a category where brand loyalities are very strong as mothers want the best for ther babes Heinz is the only other significant competitors to Nestle in this segment. Nestles cerelac and Nestum together have around 80% market share and heinzs Faex has close to 18% share.

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 In Infant formula also Nestles Lactogen formula are the leading brands with around 75% market share other brands are Heinz Lactodex Farex,Wockhard its Raptakos, and Amuls Amulspray which occupy the rest of the market. The market for milk powder is already saturated and their s no need to expand the range is what has been decided by Amul. This Ozone is not its core competency.

Reasons for success of Amul.

Robust supply chain. Low cost strategy.

Diverse product mx: Amul butter,Milk powder, Ghee, Amul Spray, Cheese, Chocolates,Shrikhand,Ice-cream,Nutramul,Milk and Amulya. Strong distrbution network. Techonology and e-initiatives The brand value of Amul: Quality value for money, Availability ,Service. Amul growh rate.

Annual turnover of 4300 crore (2006-07) Rs 10000 crore mark in 2010. Five decade to become rs 2000 crore entity but the turnover doubled over rs 43000 crore within nine years from 1999-07.
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Chapter 3

CONCEPTUAL FRAME WORK

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3 CONCEPTUAL FRAME WORK

MARKETING FUNCTION Gujarat Cooperative Milk Marketing Federation (GCMMF ) Gujarat Cooperative Milk Marketing Federation (GCMMF ) is the Indias largest food products marketing organization . GCMMF was the first co-operative to be set up under operation flood. GCMMF was the first co-operative to be set up under operation flood. GCMMFS dairy plant commissioned in 1994 is one of the most modern and largest plants. It can handle up to to 1 million litres of milk per day. The plant also has facilities for pasteurizing and packing. It was founded by NDDB. GCMMFS milk is sold under its flagship brand Amul . GCMMF was formed in 1973.As an apex marketing federation of 12 district milk unions of Gujarat to operate own marketing and distribution network in India and abroad.GCMMF sales turnover grew by 21% Rs.15.5 billion to Rs. 18.8 billion including consignment sales of Rs. 3.7 billion sale of Amul milk in Gujarat and Maharashtra increased by 11 % and 16 % respectively. Dairy product turnover registered a 19% growth. Amul butter registered 18% growth. The sale of Amul and Sagar Ghee increased by 47%. Amul Cheese registered 60% value growth. GCMMFS sales to the defense service were Rs.233 million during the year,were mainly to Burma, Uganda and West Africa. The company plans to expand its export markets in Saudi Arabia and other Middle East countries. During 1999, launching it in 8 states and 2 union territories extended the Amul ice-cream brand franchise. Amul ice creams have become Indias second largest brand. Recently it has commissioned a dairy at kolkatta. New products launched during the early 2000 were Amul Pizza, Cheese and Amul slice cheese, Amul paneer and Amul Mithaee range. Safal mango drink has been launched by Strategic alliance with safal . The product range to be launched under the Safal brand will include fruit drinks, squashes, pickles, jams and kechup and mango pulp.Amul ice-cream brand franchise was extended with launch in 8 states and 2 union territories. Amul ice cream has become the second largest brand in the country and has garnered major share in its existing markets in a short time span of 3 years. Amuls largest and most modern

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integrated ice-cream manufacturing plant and uses world renewed refrigeration units and an efficient cold chain. GCMMF has become very popular because of its excellent marketing strategy. GCMMF marketing strategy is to understand the consumer needs, develop products that provide superior value at fewer prices. GCMMF has never stopped the supply of milk products. And unlike other competitors, it has never taken wrong benefits in these kinds of situations. It has developed an excellent distribution channel to provide its products to the consumers.. It has made its products available in each part of Gujarat and India. Market Segmentation Market segment is a very important function for the market development of the GCMMF, because the market consist of buyers different in many ways. They are different in their wants resources, locating buyers practices. Because buyers have unique needs and wants, each buyer is potentially separate market. Geographic segmentation Under these variables, GCMMF has divided market into different geographic units such as region, states, cities etc. GCMMF sells its products by geographic segment action like in the north where production of milk is very high the sale of Amuls product is not much. But in the western region it is high . GCMMF identifies this kind of variables and deals with it. Demographic Segmentation Under this variable GCMMF has divided market into several segments such as age, gender, family, size, income, occupation etc. For each group GCMMF marketing strategy is different. In milk Amul targets all the class where as in the other products like butter, ghee, ice-cream etc. it targets to the middle and higher middle class

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 SWOT ANALYSIS OF AMUL STRENGTHS

1) Demand profile : Absolutely optimistic. Milk beign a necessity product, the damand will stay and the sales at GCMMF are bound to increase over a period of time.

2) Margins: Quite reasonable, even on packed liquid milk. The margins are enough to limit the entry of potential entrants.

3) Flexibility of product mix : Tremendous. With balancing equipment, GCMMF has kept adding a wide array of products to its product line.

4) Availability of raw material : Abundant. Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which requires proper channelization. Amul and GCMMF has leveraged this and has got itself a strong base of suppliers who provide them milk throughout the year . Large number of dairy plants in public and cooperative sector besides several others coming up in the private sector would result in competition. Because of this the end consumer would benefit and a good product mix would emerge. 5) Technical manpower: Professionally trained, technical human resource pool, built over last 30 years is the strength that GCMMF has. The employees of GCMMF are highly recognized in the industry and have earned name for themselves as well as the federation.

6) Enhanced Milk production : Increase in the milk production with consequently increased availability of milk processing has led to increase in consumption and faster access to the consumers through effective distribution. The technology is brought from Denmark and the production of milk has benefited from that.

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7) Transportation : The transportation facilities and the easy availability of the special trucks have provided a boost. Cold refrigerated trucks are there in place and the warehouses also have the cold storage facilities that facilitate the transportation.

8) Vast resources: Country has vast natural resources which offer immense potential growth and development for dairying. Moreover , the consuming habits are changing. As a result, the demand for products such as butter and cheese is increasing at a very rapid rate. WEAKNESSES

1) Preishabitity : Pasteurization has overcome this weakness partially . UHT gives milk long life . Still preishability is there at the milk vendors end . This does result in loss of some production. But Amul Dairy is taking steps to store milk at the vendors end . surely , many new processes will follow to improve milk quality and extend its shelf life.

2) Lack of control over yield: Theoretically , there is little control over milk yield. A lot depends upon the monsoon in the country. This is because of the quality of cattle feed that would be available will not have the required nutritional content. Steps are taken to provide awareness regarding these and the penetration of quality feed is being increased.

Moreover , increased awareness of developments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields.

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 OPPORTUNITIES: Failure is never final, and success never ending . Dr Kurien bears out this statement perfectly . He entered the industry when there were only threats. He met failure head-on, and now he clearly is an example of never ending success! If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped: 1) Competition: With so many newcomers entering this industry, competition is becoming tougher day by day. But then competition has to be faced as a ground reality. The market is large enough for many to carve out their niche. Moveover due to competition, there is a chance to better serve the market with innovative products. 2) Value addition : There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potentional areas of value addition: o Steps should be taken to introduce value-added products like shrikhand , ice creams, paneer ,khoa, flavored milk, dairy sweets, ect. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building. o Addition of cultured products like yoghurt and cheese lend further strength both in terms of utilization of resources and presence in the market place. o Yet another aspect can be the addition of infant foods, geriatric foods and nutritional.

3) Export potential: Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following of agro-products in general and dairy products in particular. There is a strong basis of cost efficiency, which GCMMF can leverage in the world market.

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4) Markets : The market for the traditional as well as processed dairy products is expanding both at the domestic and international front. 5) IT Support : Software is now available for project formulation for dairy enterprise. It has also computerized its production processes.Mother Dairy was the first fully computerized dairy in India. In its Anand plant all products are processed computerized, which does not have touch during any stage of process.

THREATS

1)Infestation: There are increasing incidents of chemical contaminants as well as residual antibiotics in milk. 2)Exploitation : There have been incidences wherein the western nations subsidizing the dairy products by a few means like transportation. Because of such reasons the final price of the products goes below the prices prevailing in the Indian Market. Hence it proves a threat to GCMMFS and other dairy industries.

The study of this SWOT analysis shows that the strength and opportunities far outweigh weakness and threats. Strengths and opportunities are fundamental and weaknesses and threats are transitory. Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks),innovative approach (in product lines and marketing ) and values (of quality /ethics) .

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 Amul has competitive sustainable advantage (CSA) over its competitors. Amuls CSA Lie in its procurement part, the abilty to collect 7million liters of milk from 2.6 million farmers, convert them into goods worth Rs 6 crores and distribute them to 500,000 retailers across country, is no easy. No other daiy in India has such a sustainable procurement netwok.

Managing the large scale supply chain of Amul which began from milk producer and ends with supply to customer from retailer is very critical job. It requires lot of deduction and hard work from all members of the corporation and also distributors and retailers across country.

Intelligent Marketing of Amul.

Amul is going globally.

GCMMF has signed an agreement with WAL-MART to stock its shelves with products under its Amul brand name .Amul processed cheese, pure ghee , shrikhand , nutramul, Amuls mithaee ,Gulab jamoons are few of the producs marketed in US markets.

50 % of Americans being medically obese and if Amul is really looking to capture the hearts of the second and third of Indians , offering low fat versions of its brands ,would make a lot of commercial sense. Hence targeting the large Indians community in the US markets wih its niche products like mithai, packaged ready to eat food market, it can definately expand its market to a large extent.

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Oversas Market Mauritius, UAE, Bangladesh, Australia, China, Singapore, Malasia, Nepal, Pakistan, Hongkong and a few South African countries.

Fresh plans of flooding the markets of Japan and Srilanka and Tie up with Glaxo to sell baby food.

What more can Amul do ?

To improve further Amul can try out the following ideas: Amul can venture out on new products like Toxed milk ,Condensed milk that can be used for sweets, baby food products. There are certain products like Amul basundi, gulab jamoons , Chocolates etc Which are not as popular as Amul ice-cream. Amul must try to understand the cause of this through thorough market research and work on improving these products. Through Amuls hoardings are a huge success, it can penetrate even better in the rural areas by advertising through the medias viz cable channels and newspapers, sponsoring shows in TV,sports events can b of great help.

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 Amul's Business Model Amul followed a unique business model, which aimed at providing 'value for money' products to its consumers, while protecting the interests of the milk-producing farmers who were its suppliers as well as its owners. As milk was a perishable item, the farmer suffered a loss if it was not sold before the end of the day.

Amul bought all the milk offered by the milk producer, made timely payment, and shared with the producers the profit generated from marketing the milk and milk products under the Amul brand name.

Amul brand is famous than many other local brands

Utterly butterly Amul may turn out to be the only brand that would be available in the state if a proposal mooted by Gujarat Co-operative Milk Marketing Federation (GCMMF) to have a common brand is cleared by all its 12 dairy union members. Local dairy brands like Sumul in Surat, Sugam in Vadodara and Uttam in Ahmedabad, Vasundhara of Valsad, Gopala in Rajkot and Panchamrut in Panchmahals may simply be sold as Amul.At present, the Rs 3,700-crore GCMMF markets different dairy products under the brands of Amul and Sagar with a major stake of Amul brand. But, locally the 12 dairy unions sell the products under their local brands within the district.Dairies, which have a surplus, market their products through GCMMF under brands of Amul or Sagar.

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 News and articles of Amul. o Amul Indias No. 1 brand in Asia-Pacific: The Media Magazine

Posted by Adgully Bureau | July 12th, 2010 at 6:15 am Amul has been ranked as the No. 1 Indian brand of Asia-Pacific by The Media Magazine in its list of Top 1000 Brands of Asia-Pacific for the second consecutive year. Amul is also ranked as No.1 dairy brand, ahead of leading food and dairy brands of the Asia Pacific region like Kraft, Dutch Lady, Dumex, Walls, Anchor, Magnolia and Everyday.It has ranked Amul as the 73rd Best Brand in its ranking of Top 1000 brands of Asia-Pacific based on a consumer survey conducted in Australia, China, India, Japan, Korea, Hong Kong, Malaysia, Singapore, Taiwan and Thailand. Amuls rank has jumped from 83rd in 2009 to 73rd this year. There is no other Indian brand in the list of Top 1000 brands ahead of Amul (#73). The other Indian brands ranked as per the survey are Kingfisher (# 140), ICICI Bank (# 182), State Bank of India (#226) and Tata (# 256) to name a few.As per the rankings published for INDIA Market, the top 4 out of the top 5 brands are MNCs viz. Sony (#1), LG (#2), Samsung (#3), Amul (#4) and Google (# 5).

Thus, the Indian consumers too have given Amul a top rank in the Food and FMCG category. Asia Pacifics Top 1000 brand listing is based on a proprietary survey by Media Magazine sponsored by the Wall Street Journal. Ten markets were included in the seventh year of survey: Australia, China, India, Japan, Korea, Hong Kong, Malaysia, Singapore, Taiwan and Thailand.The survey reaffirms the faith Indian customers have in the Amul Brand and also the fact that a brand created by India can feature among the top brands globally.

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o Sales beyond Gujarat shore up Amul's fortunes Our Bureau The co-operative is targeting to export milk products worth Rs 150 crore this fiscal. Kolkata , Sept. 15 THE Gujarat Cooperative Milk Marketing Federation, better known by its Amul brandname, is likely to post a 30 per cent growth in sales this fiscal. The growth was primarily achieved through roll out of Amul fresh milk in markets beyond Gujarat. Amul milk was recently launched in Lucknow and Kanpur. It will be introduced in Bhopal next month. To support its plans in the Uttar Pradesh market, GCMMF has acquired a three-lakh litre dairy in Kanpur through its group co-operative Benares Dairy Union. Lucknow and Kanpur markets together consume 15 lakh litres of milk a day, of which roughly 12 per cent are packaged. A GCMMF source said the combined sales of all Amul products hadso far registered 30 per cent growth compared to that of the corresponding period of the previous year. "Hopefully, we will continue the trend till the end of this fiscal," he said. The federation had registered total sales of Rs 2,945 crore during the last fiscal.

"For the last two years our milk farmers are getting better returns which in turn are invested in acquiring more cattle ensuring more supplies of fresh milk to GCMMF and its allied co-operatives.Our pricing policy ensures that a farmer owning two heads of cattle can now earn Rs 3000 a month net of expenses on an average," the source said.
On allegations that Amul was largely dependent on supplies of fresh milk from Gujarat to feed its new markets across the country, the source said Gujarat milk was being sent to only Delhi and Mumbai and that too in quantities that were small compared to the total consumption in these two markets. Of the total sales of 11-lakh litres of fresh milk beyond Gujarat, no less than 60 per cent was sourced locally; the rest being procured from neighbouring markets, he said.
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Amul recently added Pakistan and Afghanistan to its list of overseas markets. According to the source, both the markets, especially Pakistan, offer promising opportunities. The company was targeting Rs 150-crore of milk product exports this fiscal, up from Rs 115 crore in 2004-05. All exports are made under Amul brand name.The sources said apart from Pakistan and Afghanistan, the company was exporting variants of Amul milk and other milk products to West Asia, the US, Africa and neighbouring countries, including Bangladesh and Sri Lanka.

o Real Milk Real Ice Cream', Amul ups the ante

Date : 15-3-2002 Avinash Sahu With summers in full heat, ice cream major Amul is all set to up the ante. Amul India, which entered the ice cream market a few years ago, has plans to expand its business in the area by taking the hitherto largest player in the segment Kwality Walls head on. The stakes are high as well. The total Indian ice cream market is estimated to be around Rs.2000 crores. Out of the Rs.2000 crores, approximately Rs.525 crores market is organized market, which is being covered by branded ice cream and is equivalent to 80.8 million ltrs per annum. The entry of Amul in the segment has seen the Kwality Walls sales come down. The company reported a volume sale of 22.8 lac litres in 2001 as against 25 million in 1998. As per latest ORG figures, in Mumbai, Amul's market share is 37.6% against Kwality Walls market share, which has come down from 38% to 34.8%. "For this summer Amul is gearing up to take on competition on two heads. Amul will continue with its Value For Money (VFM) concept to give best quality product at the most affordable price. Our ice creams are priced 25% to 60% lower than Kwality Wall's depending upon the range." Says Prasanna Shah, Head Ice cream Division, Amul India.

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According to Prasanna the idea is two fold. "One, to increase per capita consumption of ice cream." Presently per capita consumption of ice cream in India is only 250 ml per annum as compared to 22 ltr per annum in US, 1Ltr per annum in China and 750 ml per annum in Sri Lanka. Indian consumers tend to be very price conscious and prefer a product, which is of good quality and available at affordable price. "Based on this experience we at Amul Ice cream prepared a marketing strategy based on our inherent strength of low price raw material availability, which centers on Value for Money (VFM)." Adds Prasanna. "Secondly, to focus on the fact that Amul Ice Creams have higher milk content our advertising strategy is going to revolve around the punch line 'Real Milk Real Ice Cream'. As we would continue offering the best quality product (both generic as well as perceived), we would be offering consumers, Ice Cream made out of Real Milk and Real Cream hence our punch line will be "Real Milk Real ice cream" he adds. o Amul growth rides on fresh milk By Priyanka Dasgupta Brahma Apr 05 2009 , Mumbai Plans to adopt an aggressive pricing approach to secure growth Fresh milk and fresh milk-based products have been the biggest growth drivers for Amul, which makes ice cream, butter and chocolates, marketed by the Gujarat Co-operative Milk Marketing Federation (GCMMF). In 2008-09, the Anand headquartered cooperative registered a growth of 28 per cent to reach a turnover of Rs 6,705 crore. Though we have a presence in all food categories that involve milk; fresh milk and allied products are our biggest growth drivers. We will continue to focus on procuring more milk from the farmers to maintain the growth trajectory said R S Sodhi, chief general manager, Amul. Sourcing fresh milk allows Amul to use discretion in selling it as packaged milk such as Amul Gold or Amul Taaza or flavoured milk beverages such as Amul Kool or value- added products such as Shrikhand and cheese.

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Even as GCMMFs turnover is believed to have almost doubled in past three years, the group turnover, which includes that of its 13 affiliate dairy cooperatives, touched Rs 10,000 crore in financial year, according to a company statement. The federation has set a turnover target of Rs 8,000 crore for the coming year.

Amul plans to adopt an aggressive pricing appr-oach to secure growth in the face of slowing consumer expenditure. It does not plan to hike prices, in any of the product categories in the coming months. We have not taken any price hikes specially in the milk and ice cream category. We dont have any plans to do so in the coming months, Sodhi added.

At a time when the economy is witnessing a recessionary trend, GCMMF has proved that with quality products and fair pricing, balancing the interests of farmers and consumers allows for growth, Sodhi said. Our target is to involve as many farmers as possible. In that process, we will get more milk. We also try to pay farmers well, he added. The milk procurement of GCMMF grew by 15 per cent reaching a peak of 110 lakh litres per day last winter. GCMMFs growth ,according to Sodhi, has been pan India and driven by strength across categories. Apart from fresh milk, Amul sells bread spreads, milk based drinks, powdered milk, cheese, ready to eat cooking products, deserts and ice creams. o Amul is the top Indian brand in Asia-Pacific Our BureauAnand, July 8 The Media magazine, published from Hong Kong and Singapore, has ranked Amul as the No. 1 Indian brand of Asia-Pacific in its list of Top 1,000 brands of the Asia-Pacific Region for the second consecutive year.Amul is also ranked as No.1 dairy brand, ahead of leading food and dairy brands of the Asia-Pacific region such as Kraft, Dutch Lady, Dumex, Walls, Anchor, Magnolia and Everyday, an Amul spokesman said here, citing the survey published in the July 1 issue of the magazine.

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The publication has ranked Amul as the 73rd Best Brand in its ranking of Top 1,000 brands of Asia-Pacific based on a consumer survey conducted in Australia, China, India, Japan, Korea, Hong Kong, Malaysia, Singapore, Taiwan and Thailand.Amul's rank has jumped from 83rd in 2009 to 73rd this year. There is no other Indian brand in the list of Top 1,000 brands ahead of Amul. The other Indian brands ranked, as per the survey, are Kingfisher (140), ICICI Bank (182), State Bank of India (226) and Tata (256), to name a few. According to the rankings published for the India market, the top four out of the five brands are MNCs viz. Sony (1), LG (2), Samsung (3), Amul (4) and Google (5). Indian consumers, too, have given Amul a top rank in the Food and FMCG category. AsiaPacific's Top 1,000 brand listing is based on a proprietary survey by Media, sponsored by the Wall Street Journal. Ten markets were included in the seventh year of the survey: Australia, China, India, Japan, Korea, Hong Kong, Malaysia, Singapore, Taiwan and Thailand.Leading research agency TNS interviewed people in the 15-64 age group across ten countries. Two questions were asked to determine the best brands in each of the 12 major product/service categories o Amul sees big fat profit in milk, dumps chocolates Amul chocolates, which made a determined entry in the market in the nineties and stayed put till a couple of years ago, is barely seen on shop shelves nowadays.The grit with which the brand, then only known for its butter and cute ads, posed a challenge to market leader Cadbury is gone. A two-horse race that became three-horse competition, with Nestle joining in, appears to have slipped back into a market dominated by the two foreign brands. The homegrown Indian brand, a household name more famous than its owner, Gujarat Cooperative Milk Marketing Federation, is barely visible in the chocolate market.Amul contests this. But try buying a bar of the brand, chances are that most retailers will shake their heads.

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This, when the brand has grown into a giant business in milk and other milk products. Cheese, ghee, ice cream and curd, for example.Marketing and branding aces blame the vanishing trick on poor marketing and low expertise in chocolate making. Another plausible reason could be the diversion of milk fat, an important ingredient in chocolate making, to producing liquid milk. In such a scenario liquid milk, being more profitable, takes precedence over chocolates.Like farmland, milch cows yield less in a drought because fodder is not plentiful. Also cattle feed is scarce. Not just that, the fat content in the milk drops. Even in a good monsoon year the yield varies from season to season. Since milk is the cooperatives mainstay, accounting for 35 per cent in value of all sales, it must be constrained to preserve fat for use to produce liquid milk in dry times.

Amul is now Indias largest food retail company

Published: Saturday, Jun 6, 2009, 13:42 IST Place: Ahmedabad | Agency: DNA The Anand-based largest dairy co-operative of India, Gujarat Co-operative Milk Marketing Federation (GCMMF) which markets Amul brand, has now become the largest food retail company in India by crossing the milestone of Rs6,700 crore annual turnover.

"So far, there is only one FMCG company ahead of Amul in retail sector. But in food sector, we have become the largest retail company with a turnover of over Rs6,700 crore," said RS Sodhi, chief general manager of GCMMF.

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During the financial year 2008-09, GCMMF registered a 27.7% growth to achieve the new landmark. From Rs5,255.41 crore of turnover in 2007-08, the milk giant jumped to Rs6,711.31 crore in 2008-09. For the third consecutive year, it has posted a double digit growth turnover. Apart from it, despite recession, the unduplicated turnover of the dairy co-operative of Gujarat would have crossed the mark of Rs10,000 crore during the fiscal. The annual report of GCMMF for 2008-09, released by the federation on Friday, reveals that milk procurement has witnessed a double digit growth. Total milk procurement by member unions of GCMMF during 2008-09 averaged 87.19 lakh kg per day which has increased by 14.87% over 75.90 lakh kg per day in 2007-08. The highest procurement as usual was recorded in winters during January 2009 at 114.24 lakh kg per day. Despite recession, the federation has witnessed growth in export. Export of GCMMF has reached Rs133 crore against Rs125 crore last year. Slowly and gradually, Amul has also expanded its distribution network across the country. Currently, there are 3,500 distributors for value-added milk products and 1,800 distributors for fresh milk to ensure that Amul products are available to all segments of consumers in India through more than 20 lakh outlets, says the annual report. Apart from that, GCMMF has expanded its network of Amul parlours to more than 4,000 parlours across various towns and cities of India. After achieving the new milestone of Rs6,700 crore, now Amul has set new mission. Federation chairman Parthi Bhatol has mentioned about 'Mission 2020' in the annual report. 'Mission 2020' envisages that the dairy co-operatives of Gujarat will have a group turnover of Rs27,000 crore by the year 2020. "This will be three-fold increase over our current group turnover. Milk production in our milk shed area will increase to 231 lakh kg per day," said Bhatol.

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He further said that federation will enhance milk procurement capacity in such a way that it can easily collect as much as 195 lakh kg per day of milk in the peak flush season. "We plan to double the processing capacity of our dairy plants to 20.7 million kg per day by 2020. We also plan to expand our cattle feed manufacturing capacity, more than four times to 12,000 MT per day by 2020," said the chairman.

AMULS MOPPET A WAY TO SUCCESS

The moppet who put Amul on India's breakfast table 50 years after it was first launched, Amul's sale jumped from 1000 tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No other brand comes even close to it. All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses. The father of the Amul girl passes away Eustace Fernandes, the creator of the Amul girl, passed away at the age of 75. Fernandes is best remembered as a cartoonist and an illustrator and was living a retired life for some time.

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The Amul moppet has featured in hoardings for almost 43 years, making it the longest running ad campaign ever in the world.

The iconic Amul girl, is all set to enter the Guinness Book of World Records for being the longest running campaign in the world.

Way back in 1966, the Amul account was given to the advertising agency called Advertising and Sales Promotion (ASP). The team of Sylvester da Cunha, Eustace Fernandes, Usha Katrak and Marie Pinto worked on the Amul account at that point of time. The ad became a rage with the tagline 'Utterly butterly delicious Amul' - and the rest, they say, is history Fernandes worked on the Amul account for three years till 1969 and then the team of Usha Katrak, K Kurian, Eustace Fernandes and Radha started Radeus Advertising in 1974. As a matter of fact, the word Radeus originated from the first three letters of Radha and Eustace.

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 The Success Story of Amul-Utterly Delicious

Every day Amul collects 8.4 million litres of milk from 2.79 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods thus achieving record annual sales turnover of $ 1504 million in 2008-09 making Amul as the largest food products marketing organization in India with more than 60 products.

Its supply chain is easily one of the most complicated in the world. How do managers at Amul prevent the milk from souring .Walk in to any Amul or Gujarat Cooperative Milk Marketing Federation (GCMMF) office, and you may or may not see a photograph of Mahatma Gandhi, but you will certainly see one particular photograph. It shows a long line of Gujarati women waiting patiently for a union truck to come and collect the milk they have brought in shining brass matkas. The picture is always prominently displayed. The message is clear: never forget your primary customer. If you don't, success is certain. The proof? A unique, Rs 2,200 crore (Rs 22 billion) enterprise. Success of Amul

As AMUL is recognised as the countrys largest milk producing cooperative it has tied up with global supermarket chain WALMART to sell its range of dairy products and have also tied up with Glaxo over the production of baby food in India. Amul added sweet buttermilk powder, a second brand of baby food and a high protein weaning food. It also sells its products to Nepal. Now India is looking to capture neighbourhood markets like Pakistan, Bangladesh etc. These countries import over 50,000 tonnes of milk each annually & Sri Lanka is flooded with an Indonesian brand, which is said to be of an inferior quality and also costs less. These countries import tonnes of milk every year.

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AMULS Indian desserts are very well liked in countries like Singapore and Malaysia. Amul has list of products marketed to various countries few of its products are Amul butter, Amul cooking butter, Amul cheese spread, Amul pizza cheese, Amul shrikhand, Amul fresh cream, Amul fat milk, Amul pure ghee, Amulya dairy whitener, Sagar Tea and Coffee whitener, Amul butter milk, Amul ice creams like cassata , cool candy and frostik, Amul milk chocolate and Amul Eclairs. Amul has started preparing and selling pizza slices that prominently feature generous portions of Amul cheese. Amuls pizza slices are being sold through super markets and large departmental stores that have snack counters. Amul Pattern - a Unique Model for Rural Development

The word AMUL means "priceless" in Sanskrit. 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. Today Amul is a symbol of a proven model for dairy development. Amul, a dairy cooperative movement, was formed in 1946 in India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd., which today is jointly owned by some 2.41 million milk producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling example of a co-operative organization's success in the long term. Amul has inspired 'Operation Flood' and heralded the White Revolution of India. It began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to the flood it has become today. Today Amul collects, processes and distributes over a million liters of milk and milk products per day, during the peak, on behalf of more than a thousand village cooperatives owned by half a million farmer members. Further, as Ganga-ma carries the aspirations of generations for moksha, Amul too has become a symbol of the aspirations of millions of farmers, creating an Amul Pattern of liberation and self-reliance for every farmer to follow

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The first products with the Amul brand name were launched in 1955. Since then, they have been in use in millions of homes in all parts of India, and beyond. There is something more, though, that makes the Amul brand special and that something is the reason for the commitment to quality and value for money. Amul is the brand name of 2 million farmers, members of 10,000 village dairy cooperative societies throughout Gujarat This is the heart of Amul, it is what gives strength to Amul, and it is what is so special about the Amul saga.The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has made India one of the largest milk producers in the world. It is also the world's biggest vegetarian cheese brand. Amul's product range includes milk powders, milk, butter, ghee, cheese, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, Nutramul brand and others.A household name in India, Amul is now all set to go worldwide. While the World Bank wants to replicate Amul model in the African countries, the United States is planning to introduce it in Afghanistan as part of its reconstruction program. India's neighbors like Pakistan and Sri Lanka have also shown keen interest in copying the Amul pattern of dairy development in their countries. The Pentagon reportedly lists Amul among the finest models of rural development and wants to apply this in war-torn Afghanistan. Earlier, a delegation from Pakistan had come to Anand with special instructions from General Musharaff to examine why the Amul model has been so successful for so long. Sri Lanka has already entered into an agreement with NDDB to set up a dairy plant in the island nation on the Amul pattern. Dairying in India should now rapidly progress in quality to compete in international markets. If the World Bank project for Africa and the US move to take Amul pattern to Afghanistan succeed, the Indian dairy sector will get a big boost and makes Amul as an international brand.

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 Expansion plan of Amul

Amul planning huge expansion pan India

The dairy major, Amul, marketed by Gujarat Co-operative Milk Marketing Federation (GCMMF) plans to expand its reach by opening 1000 ice cream parlours and 2500 Amul Preferred Outlets (APO) via the franchise route by 2010. Amul with 38 per cent share in branded ice cream market is all set to launch new outlets. Keeping the summer season in mind, the company is planning to promote their ice cream brands through Amul Scooping Parlours and APOs across the country. Amul with 4,500 APOs at present is planning to create 10,000 APOs by 2012. Moreover, the company is going to increase the strength of their retail outlets by adding another 15,000 outlets to their present network of 70,000 outlets by the end of this year. The branded ice cream market in the country is estimated to be 150 million litres per annum valued at Rs 1,200 crore. The company is aiming to increase the capacity of its existing plants by further adding another manufacturing unit at Puducherry apart from Gandhinagar, Palanpur, Anand and Vadodara in Gujarat, Nagpur and metros like Bengaluru, Chennai, Kolkata and Delhi.This summer, the dairy major has launched five flavours they are mast melon, pineapple masti, nuts bout u, fruit fusion, and royal butter scotch in party packs and cups.

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Amul reveals its expansion plans

Amul, a dairy major marketed by Gujarat Co-operative Milk Marketing Federation (GCMMF), plans to double the retail outlets. The company revealed at the 30th FRO National Franchise show organised on July 24 -25, 2010 in Ahmedabad, its plans to expand through franchising. Amul with 4,500 APOs at present is planning to create 10,000 APOs by 2012. Moreover, the company is going to increase the strength of its retail outlets by adding another 15,000 outlets to its present network by the end of this year.The company is aiming to increase the capacity of its existing plants by further adding manufacturing units at Puducherry apart from Gandhinagar, Palanpur, Anand and Vadodara in Gujarat, Nagpur and metros like Bengaluru, Chennai, Kolkata and Delhi. SALES TURNOVER OF THE COMPANY IN THE FOLLOWING YEARS The Gujarat Co-operative Milk Marketing Federation Ltd. (Amul), the apex marketing organization during the financial year 2008-09, has registered a quantum growth of 28 per cent to reach a record turnover of Rs 6705 Crores (Rs. 67.05 Billion), an increase of nearly Rs. 1450 Crores in absolute terms over the previous year. It is noteworthy that GCMMFs Turn Over has almost doubled in last three years. It is also noteworthy that the unduplicated Group Turnover of GCMMF and its 13 Dairy Cooperatives has touched Rs 10,000 Crores.With its quality products and fair pricing, at a time when the economy is witnessing recessionary trends. GCMMF has proven that business which is engaged in upliftment of the farmers as also keeps consumers at its centre stage, will continue to grow and benefit both these stakeholders. It is these stakeholders who have turned AMUL into the largest milk brand of Asia.GCMMFs growth has come from all its major products as well as from all geographical regions of the nation. The milk procurement of GCMMF grew by 15% reaching a peak of 110 Lac Ltrs Per Day during last winter. B.M. Vyas, Managing Director, GCMMF said , This impressive growth in milk procurement is attributed to the remunerative prices being paid out to the farmers consistently year after year . The Federation plans to continue its stride and march ahead with a target turn over of Rs 8000 Cr for the coming year.

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Progress Made in Sales Turnover

Gujarat Cooperative Milk Marketing Federation (GCMMF): An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat 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.

Financial Year : 2009-10

Members:

13 district cooperative milk producers' Union

No. of Producer Members No. of Village Societies Total Milk handling capacity Milk collection (Total -2009-10) Milk collection (Daily Average 2009-10)

2.9 million 15,322 13.07 million litres per day 3.32 billion litres 9.10 million litres

Milk Drying Capacity: Cattlefeed manufacturing Capacity.

647 Mts. per day 3740 Mts per day

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Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 80053

US $ (in million) 355 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504 1700

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Amul Group turnover touches Rs 10,000 cr (financial year 2009-10)

Market meltdown and economic crisis seem to be the buzzwords for most corporations around the world. But not for home-grown Amul cooperative. The Gujarat Cooperative Milk Marketing Federation (GCMMF), which is built on Amul pattern, and its allied13 dairies, has reported a total turnover of close to Rs 10,000 crore.

The lion's share towards the turnover has been contributed by four biggest district unions of Mehsana, Banaskantha, Sabarkantha and Anand. That does not mean the smaller unions like Baroda, Rajkot, the Panchmahals have not registered an impressive growth rate. The GCMMF registered a 28% growth to touch record turnover of Rs 6,705 crore in 2008-09 an increase of nearly Rs 1,450 crore over the previous year. The unduplicated group turnover of GCMMF and its 13 dairy cooperatives touched Rs 10,000 crore, if local milk and milk products and cattle feed business by district unions are also taken into account.

Amul future plan for turnover of sales

Amul targets Rs 30,000-crore turnover by 2020, to make every kitchen in India an Amul kitchen Wednesday, January 19, 2011 08:00 IST Our Bureau, Mumbai R S Sodhi, new managing director of Gujarat Cooperative Milk Marketing Federation that markets Amul milk and milk products, wants to convert Amul into a strong food brand by pushing categories such as ice cream, beverages, paneer, dahi and fruit-lassi. Sodhi, who took over as the MD earlier this month, wants the cooperative to increase its turnover more than threefold to Rs 30,000 crore from the current Rs 8,000 crore, by 2020.

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It may be recalled that Sodhi, who was the general manager of GCMMF, assumed the temporary charge of MD some six months ago on the resignation of former Managing director BM Vyas. Later, the appointment of Sodhi as the new MD had been ratified by the GCMMF Board. In an interview with The Economic Times, Sodhi said the companys flagship products included milk, butter, infant milk powder, and dairy whitener. Cheese came later. Liquid milk contributes 40% to its revenues, while the other three brought 30% the revenues. All these products had grown 10-20% year-on-year. We have carved out a niche for ourselves in these categories. Amuls star products of the future would be fresh food including ice cream, beverages, paneer, milk (in tetra packs), dahi and fresh-fruit lassi. We may even launch gajar ka halwai through which we can sell butter (as an ingredient), our prime product. We want to transform every Indian kitchen into an Amul kitchen from the daily glass of milk or butter milk to butter and cheese for breakfast to paneer and curd in meals. About the ambitious growth prospects, Sodhi said, There was a lot of scope in the dairy industry considering we are handling only 3% of the total organised milk production of India. By 29020, we want to produce 200 lakh litres of milk everyday, up from the current 92 lakh litres. The idea is to seek a three-fold jump in turnover to Rs 30,000 crore.

Sodhi said Amul was the market leader across India. In places where Amul did not sell liquid milk, it made up by selling dairy whitener. Abul had 88% market share in butter, 63% share in infant milk and 45% in dairy whitener. It also enjoyed a 26% share in the Rs 25,000-crore packaged milk market.

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 Facts about Amul

Established in 1946- two societies collected 250 lures of milk. Competed with Polsons to supply milk to Bombay.

1952- Bombay Government terminated Polsons contract and signed with AMUL. 1955- Dairy and milk powder plants were established with aid from the United Nations Childrens Fund. (UNICEF)

1960- AMUL pioneered production of milk powder and baby food from buffalo milk. AMUL - meets producer demand for critical inputs, veterinary services, artificial insemination and feed.

Today AMUL supplies more than 1 million lures of milk per day. AMUL sells 400 tonnes of cattle feed every day.

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 Future Plans

Amul to foray into bottled water To capitalise on its tremendous brand equity and offset the margin pressure on the dairy business, Amul is planning to foray into the bottled water segment starting with its own state Gujarat. The brand name of the water shall be Narmada Neer to capitalise on the sacred status of Narmada river in Gujarat. It would be available in 200ml pouches,1litre,5litre and 20litre PET bottles.

If the product get accepted in Gujarat, the venture would be extended to other states in Indian and then Amul could piggy back on its extensive retail network of five lakh outlets across the country. Bottled water could otherwise provide good margins and the profits mfrom the venture would be primarily used for welfare of families in the Amuls dairy trade. 10 years back, Amul did take a shot at bottled water through Jaldhara which was produced by NDDB. However the venture failed owing to less demand for packaged water in market. But with this market growing bigger and expected to grow at 40% every year, Amul is surely going to benefit. Another positive for the company is that 40% of total national market for packaged bottled drinking water is in western India, which Amul is exploring initially. But going by scale and investments of Amul, it would seem that the venture would be albeit on a shorter scale and done only to fulfill corporate social responsibility. MISSION 2020 Six decades ago, Sardar Patel had envisioned that dairy cooperative movement could liberate our farmers from economic oppression and lead them to prosperity. His dream was carried forward by far-sighted and visionary leaders like Shri Tribhuvandas Patel and Shri Motibhai Chaudhary, who selflessly dedicated their entire lives to this noble cause. Through his professional acumen and meticulous planning, as well as leadership skills; Dr. Verghese Kurien successfully translated this dream into reality.

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In early 1950s, when our cooperative movement was still in its infancy, Dr. Kurien created the grand design for an apex marketing federation for dairy cooperatives of Gujarat. After 20 years of persistent efforts, this organization took concrete shape in 1973 and has today transformed into a US$ 1.4 billion dairy giant. In view of growth in business volumes and related complexities, it is pertinent that we have a clear vision for the next 10 years. This will enable all relevant stakeholders to align themselves to a common growth platform. In line with objective, we have prepared a comprehensive roadmap to guide dairy cooperatives of Gujarat to a glorious future, in the year 2020. This plan, appropriately titled Mission 2020, envisages that the dairy cooperatives of Gujarat will have a group turnover of Rs. 27000 crores by the year 2020. This will be a three-fold increase over our current group turnover of approx.Rs. 9600 crores. In view of the high demand and procurement projections, we plan to double to processing capacity of our dairy plants to 20.7 million kg per day, by 2020. I am glad to inform you that the plan 2020 has been shared with all the member unions. It has also been discussed in the respective boards and necessary resolutions for investments have also been taken. This detailed plan will serve as our comprehensive roadmap for the next ten years and will ensure a glorious future for our dairy cooperatives.

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Chapter 4

DATA ANALYSIS AND INTERPRETATION

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4 DATA ANALYSIS AND INTERPRETATION

Data are collected from 100 retailers that sells Amul milk and milk products with others dairy products. They were asked many questions to know product sales , Amul strength among its competitors, Consumers perception about Amul products and also to obtain more information

A) Which company dairy product use?

Sales

Amul Othes

Interpretation:

55 pre cent consumer use Amul milk and milk products and 45 per cent of consumers used others dairy products.

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B) In which of the product mostly you go for?

80% 70% 60% 50% 40% 30% 20% 10% 0% Butter Cheese Milk Amul Others

Interpretation:

Retailers order mostly Amul products because consumer prefer more on Amul product o Amul Butter 58 per cent and others 42 per cent o Amul cheese 72 per cent and others 28 per cent o Amul milk 64 per cent and others 36 per cent

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C) Are you satisfied with your products?

Sales

Yes No

Interpretation:

80% retailers are satisfied with their products and 20% retailers are not satisfied with their products.

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D) Why are you inclined to your products?

80% 70% 60% 50% 40% 30% 20% 10% 0% Quality Brand Price Amul Others

Intrepretation:

o Amul quality inclined to products by consumers 60% and others 40% o Amul brand preferred by consumer is 68% of Amul and others 32 % o Amul price satisfaction with consumer is 70% of Amul and others 30%

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D) Do you like any change in products? Retailers said consumers gives feedback on selecting dairy products for their own consumption

80% 70% 60% 50% 40% 30% 20% 10% 0% Taste by consumers Price by cosumers Packaging by consumers Quality by consumer Amul Others

Interpretation : Many consumers satisfied with their products and some consumers change product o Taste by consumers : o Price by consumers : o Packaging by consumers: o Quality by consumers: Amul 80% and others 20% Amul 48% and others 52% Amul 55% and others 45% Amul 74% and others 26%

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 Limitation of the study

The survey although carried out with fullest possible efforts and devotion, the limitation of the time, resources available and limited area chose may lead to limited representation of the universe. The mazor limitations from which the study suffers are as follows. Time constraint: Time factor has beed a very big limitation .The research survey like this.The retailers have limited time so they sometimes refuse to answer the questionnaire, also me as a surveyor has less time to conduct the survey . So the size of the sample was restricted to Asalpha pipeline (last place/Area)

Business information It was felt that retailers did not come up with true response in several causes the retailers answered the questions with the help of other members and it was mostly in case of less educated persons.

Financial constraint The financial aspect, which includes the traveling cost, cost of administrating questionnaire and collecting of data through other resources was also costly.

Constant regarding the use of technique The deeper statistical techniques such as analysis using variance, multiple regressions etc, could not be adopted due to the constraint of time and efforts .So simple statistical techniques were used to analyze the data.

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Chapter 5

FINDINGS RECOMMENDATIONS AND CONCLUSION

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5 FINDINGS RECOMMENDATIONS AND CONCLUSION

5 (A) FINDINGS RECOMMENDATIONS

1) Company should have feedback from market and consumer about the Dairy based Products.

2) The more Flavors of Amul Dairy Products should become in the Market.

3) The company provided some small schemes for retailer also.

4) The company gives some gifts for customer also.

5) The company should associate itself with some games or tournaments like football, cricket and so on.

6) Company should provide sponsored seminar market intelligence

7) Company should maintain the healthy relationship with market distribution channel i.e. whole seller, distributor, retailers which will boost the brand image.

8) Company should check the market real position help the traineesand other survey organizations.

9) Company should launch its website and use new advertising channels; i.e. Trailer in cinema halls and Hoarding.

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5 (B) CONCLUSION

Amul meant different things to different people : To a Milk Producer A life enriching experience To a Consumer Assurance of having wholesome milk To a Mother A reliable source of nourishment for her child To the Country Rural Development and Self Reliance Amul has given a new dimension to marketing. It showed that a democratically owned and managed farmers organization can successfully develop national market, but by doing this Amul provided virtually guaranteed marketing service to the milk producer at his door steps. Amul has displayed dynamic initative at a time when its multinational competitors were merely content to use depreciated machinery. Following factors have given us the insight to conclude, why Amul is thriving with success today: Emphasis on Quality : All the products of Amul are of highest gade. Consumer were very quick to perceive this and the publics stamp of approval.

Modern marketing : A good product alone cannot success that followed reflected the publics stamp of approval.

Management : The judicious handling of people, recognition of performance and encouragement for a good try has gone a long way to build a sound foundation of people. All the basis components of management that is production, marketing, finance and organization behavior are nicely arrayed at Amul.

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The co-operative concept: The fundamental thesis underlying the Anand model is that the rural producer must own and enjoy the assets they have helped to create. The model has inspired the creation of hundreds of other Anand.

Modern technology : Automatic Milk collection system units are used. They use Enterprise-wide integrated application system(EIAS) which covers a number of operation like market planning , advertising and promotion, distribution network planning, stock control, sales and accounting, budgetary control, quality control management and cooperative service management.

The system has succeeded mainly because of involvement of people on such a large scale, providing assured market at remunerated prices for milk producers, enables the consumers access to high quality milk and milk products, ploughing back the profit to the members, part of the profit is used by the society for common good and community development. Amul is doing everything in the best possible manner. Just look at its product quality, packaging, advertising and nation wide marketing network. This has given amul an edge over its competitos. Amul have created strong brand name in the market, with the help of their commitment to customers, and by providing best quality products at reasonable price. Beginning with liquid milk, GCMMF enhanced the product mix through the progressive addition of higher value products while maintaining the desired growth in existing products.

Amul has not only the taste of India but has also become the taste of whole world.The Sanskrit word AMULYA which means PRICELESS.Amul has spurred the white revolution of India,Today Amul dairy is No. 1 dairy in Asia and No. 2 in the worldAmul has more than 150 chilling centers in various villages.Dr. Verghese Kurien, former chairman of the GCMMF the man behind the success of Amul. Its main moto is upbringing the rural India.

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BIBLIOGRAPHY References:

Management of Co-operatives : Romeo.S.Mascarenhas The Economic Times

Magazines : The Financial Express

Books : The Unfinished Dream : V Kurien The Amul India story : Ruth Herediya

Websites : www.amul.com www.economictimes.indiatimes.com www.slideshare.net/vparakhiya/amul-dary www.slideshare.net/anilkr123/amul-rural-marketing-presentation www.bethics .com

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 ANNEXURE Questionnaire

We had ask questions to many retailers that sales dairy products with Amul dairy products and made final conclusion in table that shows us comparative study of Amul dairy products with others dairy products. Questions were asked are as follows:

1) In dairy products , Which company products demand is higher ? a) Amul b) Others Reason

2) Are you satisfied with your products?

a) Yes b) No Reason ..............

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3) Which products of Amul is preferred by customers?

a) Ghee b) Milk c) Cheese d) Butter e) Any other Reason 4) Which product of Amul is preferred least by customer?

a) Ghee b) Milk c) Cheese d) Butter e) Any other

5) What customer expect more in dairy products?

a) Quality b) Brand c) Price d) Taste

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 Comparative study of Amul dairy products with others dairy products

Other Dairy Consumer preference Price Quality Taste Packaging High High Better Better High High Better Better High High Better Better High High Better Better Ghee Milk Butter Cheese

Amul Milk Dairy Ghee Milk Butter cheese

Low Good Good Best

Low Good Good Best

Low Good Good Best

Low Good Good Best

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