SUMMER TRAINING REPORT

ON
“A STUDY OF MARKETING STRATEGIES OF
AMUL IN LUCKNOW”

Submitted to Partial Fulfillment for the Award of

Degree in Bachelor of commerce From University
of Lucknow

Submitted To: Submitted By:

ARCHANA KUMARI VIVEK KUMAR

Assistant Professor B.COM 6th Sem.

Roll No. 182530585009

MAHARANA PRATAP COLLEGE OF MANAGEMENT &

COMMERCE, LUCKNOW

(Session- 2020 - 2021)

i
 CERTIFICATE

This is to certify that the project report entitled “A STUDY OF MARKETING

STRATEGIES OF AMUL IN LUCKNOW” in the bona fide work of Vivek kumar, ROLL

No: (182530585009) B.com from MAHARANA PRATAP COLLEGE OF MANAGEMENT

& COMMERCE, LUCKNOW.

Place: Lucknow Supervisor:

Date: ARCHANA KUMARI

(Assistant Professor)
 DECLARATION

I hereby VIVEK KUMAR declare this Summer Training Report entitled “ A STUDY
OF MARKETING STRATEGIES OF AMUL IN LUCKNOW”. In portfolio
management submitted in the partial fulfilment of their requirement of Bachelor of
Commerce of MAHARANA PRATAP COLLEGE OF MANAGEMENT &

COMMERCE, LUCKNOW.

Date:
 ACKNOWLEDGEMENT

I acknowledge the sincere assistance provided to me from several rather

unexpected quarters during the course of execution of this study. It would be a
mammoth task to place on record my gratitude to each and every one of them but a
whole hearted attempt would be made nevertheless, least I be branded ungrateful.

I am extremely thankful to Mr. Amit, (Sales Manager) for giving me an

opportunity to undergo training in Amul.
 EXECUTIVE SUMMARY
While working in the organization I was trained as a relationship
personnel being engaged into various jobs such as dealing with clients,
answering customer queries through telephonic conversations and
providing them knowledge about new schemes and converting them into
our customers.
As my summer internship project I was given the topic on ―Marketing
strategy of Amul”. The project work was for this research was
conducted in Lucknow to study the customer satisfaction level.
The research has been conducted to gather information from 100
respondents & a structured questionnaire will be used to collect the
information from the respondents. The data which was collected from
them will be analyzed and classified. It was found that though the Amul
has the highest market share it needs to improve on its service quality
and retail services.
 TABLE OF CONTENT
S. No. Content
1. Introduction

2. Company profile

3. Objective of the study

4. Scope of the study

5. Importance & use of the study

6. Research methodology

7. Data analysis and interpretation

8. Findings

9. Limitation

10. Conclusion

11. Suggestions and recommendations

12. Bibliography

13. Annexure
INTRODUCTION

1
 INTRODUCTION
Marketing strategy

Marketing strategy is the goal of increasing sales and achieving a

sustainable competitive advantage. Marketing strategy includes all basic and long-
term activities in the field of marketing that deal with the analysis of the strategic
initial situation of a company and the formulation, evaluation and selection of
market-oriented strategies and therefore contribute to the goals of the company and
its marketing objectives.

Developing a marketing strategy

Marketing strategies serve as the fundamental underpinning of marketing

plans designed to fill market needs and reach marketing objectives. Plans and
objectives are generally tested for measurable results. Commonly, marketing
strategies are developed as multi-year plans, with a tactical plan detailing specific
actions to be accomplished in the current year. Time horizons covered by
the marketing plan vary by company, by industry, and by nation, however, time
horizons are becoming shorter as the speed of change in the environment increases.
Marketing strategies are dynamic and interactive. They are partially planned and
partially unplanned. See strategy dynamics. Marketing strategy needs to take a
long-term view, and tools such as customer lifetime value models can be very
powerful in helping to simulate the effects of strategy on acquisition, revenue per
customer and churn rate.

Marketing strategy involves careful and precise scanning of the internal and
external environments. Internal environmental factors include the marketing
mix and marketing mix modeling, plus performance analysis and strategic
constraints. External environmental factors include customer analysis, competitor
analysis, target market analysis, as well as evaluation of any elements of the
technological, economic, cultural or political/legal environment likely to impact
success. A key component of marketing strategy is often to keep marketing in line
with a company's overarching mission statement.

Once a thorough environmental scan is complete, a strategic plan can be

constructed to identify business alternatives, establish challenging goals, determine
the optimal marketing mix to attain these goals, and detail implementation. A final
step in developing a marketing strategy is to create a plan to monitor progress and
a set of contingencies if problems arise in the implementation of the plan.

Marketing Mix Modeling is often used to help determine the optimal marketing
budget and how to allocate across the marketing mix to achieve these strategic
goals. Moreover, such models can help allocate spend across a portfolio of brands
and manage brands to create value.

Diversity of Strategies

Marketing strategies may differ depending on the unique situation of the individual
business. However, there are a number of ways of categorizing some generic
strategies. A brief description of the most common categorizing schemes is
presented below:

Strategies based on market dominance - In this scheme, firms are classified

based on their market share or dominance of an industry. Typically there are four
types of market dominance strategies:

 Leader
 Challenger
 Follower
 Nicher
 According to Shaw, Eric (2012). "Marketing Strategy: From the Origin of the
Concept to the Development of a Conceptual Framework". Journal of Historical
Research in Marketing., there is a framework for marketing strategies.

 Market introduction strategies

"At introduction, the marketing strategist has two principle strategies to choose
from: penetration or niche" (47).

 Market growth strategies

"In the early growth stage, the marketing manager may choose from two additional
strategic alternatives: segment expansion (Smith, Ansoff) or brand expansion
(Borden, Ansoff, Kerin and Peterson, 1978)" (48).

 Market maturity strategies

"In maturity, sales growth slows, stabilizes and starts to decline. In early maturity, it
is common to employ a maintenance strategy (BCG), where the firm maintains
or holds a stable marketing mix" (48).

 Market decline strategies

At some point the decline in sales approaches and then begins to exceed costs. And
not just accounting costs, there are hidden costs as well; as Kotler (1965, p. 109)
observed: 'No financial accounting can adequately convey all the hidden costs.'
At some point, with declining sales and rising costs, a harvesting strategy
becomes unprofitable and a divesting strategy necessary" (49).

Early marketing strategy concepts

 Borden's "marketing mix"

"In his classic Harvard Business Review (HBR) article of the marketing mix, Borden
(1964) credits James Culliton in 1948 with describing the marketing executive
as a 'decider' and a 'mixer of ingredients.' This led Borden, in the early 1950s, to
the insight that what this mixer of ingredients was deciding upon was a
'marketing mix'".

 Smith's "differentiation and segmentation strategies"

"In product differentiation, according to Smith (1956, p. 5), a firm tries 'bending the
will of demand to the will of supply.' That is, distinguishing or differentiating
some aspect(s) of its marketing mix from those of competitors, in a mass market
or large segment, where customer preferences are relatively homogeneous (or
heterogeneity is ignored, Hunt, 2011, p. 80), in an attempt to shift its aggregate
demand curve to the left (greater quantity sold for a given price) and make it
more inelastic (less amenable to substitutes). With segmentation, a firm
recognizes that it faces multiple demand curves, because customer preferences
are heterogeneous, and focuses on serving one or more specific target segments
within the overall market" (35).

 Dean's "skimming and penetration strategies"

"With skimming, a firm introduces a product with a high price and after milking the
least price sensitive segment, gradually reduces price, in a stepwise fashion,
tapping effective demand at each price level. With penetration pricing a firm
continues its initial low price from introduction to rapidly capture sales and
market share, but with lower profit margins than skimming".

 Forrester's "product life cycle (PLC)"

"The PLC does not offer marketing strategies, per se; rather it provides an
overarching framework from which to choose among various strategic
alternatives".

Corporate strategy concepts

 Andrews' "SWOT analysis"

"Although widely used in marketing strategy , SWOT (also known as TOWS)

Analysis originated in corporate strategy. The SWOT concept, if not the acronym,
is the work of Kenneth R. Andrews who is credited with writing the text portion of
the classic: Business Policy: Text and Cases (Learned et al., 1965)" (41).

 Ansoff's "growth strategies"

"The most well-known, and least often attributed, aspect of Igor Ansoff's Growth
Strategies in the marketing literature is the term 'product-market.' The product-
market concept results from Ansoff juxtaposing new and existing products with
new and existing markets in a two by two matrix" (41-42).

Porter's "generic strategies"

Porter generic strategies – strategy on the dimensions of strategic scope and

strategic strength. Strategic scope refers to the market penetration while strategic
strength refers to the firm's sustainable competitive advantage. The generic strategy
framework (porter 1984) comprises two alternatives each with two alternative
scopes. These are Differentiation andlow-cost leadership each with a dimension
of Focus-broad or narrow.

 Product differentiation
 Cost leadership
 Market segmentation

Innovation strategies

Innovation strategies deal with the firm's rate of the new product development
and business model innovation. It asks whether the company is on the cutting edge
of technology and business innovation. There are three types:

 Pioneers
 Close followers
 Late followers

Growth strategies

In this scheme we ask the question, "How should the firm grow?". There are a
number of different ways of answering that question, but the most common gives
four answers:

 Horizontal integration
 Vertical integration
 Diversification
 Intensification

These ways of growth are termed as organic growth. Horizontal growth is whereby
a firm grows towards acquiring other businesses that are in the same line of
business for example a clothing retail outlet acquiring a food outlet. The two are in
the retail establishments and their integration lead to expansion. Vertical
integration can be forward or backward. Forward integration is whereby a firm
grows towards its customers for example a food manufacturing firm acquiring a
food outlet. Backward integration is whereby a firm grows towards its source of
supply for example a food outlet acquiring a food manufacturing outlet.

Raymond Miles' Strategy Categories

In 2003, Raymond Miles proposed a more detailed scheme using the

categories:Miles, Raymond (2003). Organizational Strategy, Structure, and
Process. Stanford: Stanford University Press. ISBN 0-8047-4840-3.

 Prospector
 Analyzer
 Defender
 Reactor
 Marketing warfare strategies – This scheme draws parallels between
marketing strategies and military strategies.

BCG's "growth-share portfolio matrix" "Based on his work with experience curves

(that also provides the rationale for Porter's low cost leadership strategy), the

growth-share matrix was originally created by Bruce D. Henderson, CEO of the

Boston Consulting Group (BCG) in 1968 (according to BCG history). Throughout

the 1970s, Henderson expanded upon the concept in a series of short (one to three

page) articles in the BCG newsletter titled Perspectives (Henderson, 1970, 1972,

1973, 1976a, b). Tremendously popular among large multi-product firms, the BCG

portfolio matrix was popularized in the marketing literature by Day (1977)" (45).
Strategic models

Marketing participants often employ strategic models and tools to analyze

marketing decisions. When beginning a strategic analysis, the 3C's model can be

employed to get a broad understanding of the strategic environment. An Ansoff

Matrix is also often used to convey an organization's strategic positioning of

their marketing mix. The 4Ps can then be utilized to form a marketing plan to

pursue a defined strategy. Marketing Mix Modeling is often used to simulate

different strategic flexing go the 4Ps. Customer lifetime value models can help

simulate long-term effects of changing the 4Ps, e.g.; visualize the multi-year

impact on acquisition, churn rate, and profitability of changes to pricing. However,

4Ps have been expanded to 7 or 8Ps to address the different nature of services.

There are many companies, especially those in the consumer package goods (CPG)

market, that adopt the theory of running their business centered around consumer,

shopper and retailer needs. Their marketing departments spend quality time

looking for "growth opportunities" in their categories by identifying relevant

insights (both mindsets and behaviors) on their target consumers, shoppers and

retail partners. These growth opportunities emerge from changes in market trends,

segment dynamics changing and also internal brand or operational business

challenges. The marketing team can then prioritize these growth opportunities and
begin to develop strategies to exploit the opportunities that could include new or

adapted products, services as well as changes to the 7Ps.

Real-life marketing

Real-life marketing primarily revolves around the application of a great deal of

common-sense; dealing with a limited number of factors, in an environment of

imperfect information and limited resources complicated by uncertainty and tight

timescales. Use of classical marketing techniques, in these circumstances, is

inevitably partial and uneven.

Thus, for example, many new products will emerge from irrational processes and

the rational development process may be used (if at all) to screen out the worst

non-runners. The design of the advertising, and the packaging, will be the output of

the creative minds employed; which management will then screen, often by 'gut-

reaction', to ensure that it is reasonable.

For most of their time, marketing managers use intuition and experience to analyze

and handle the complex, and unique, situations being faced; without easy reference

to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction'; where

the overall strategy, coupled with the knowledge of the customer which has been

absorbed almost by a process of osmosis, will determine the quality of the

marketing employed. This, almost instinctive management, is what is sometimes

called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing,

form favored by the theorists.

An organization's strategy combines all of its marketing goals into one

comprehensive plan. A good marketing strategy should be drawn from market

research and focus on the right product mix in order to achieve the maximum profit

potential and sustain the business. The marketing strategy is the foundation of a

marketing plan.
 MARKETING PLANNING
A marketing plan may be part of an overall business plan. Solid marketing
strategy is the foundation of a well-written marketing plan. While a marketing
plan contains a list of actions, a marketing plan without a sound strategic
foundation is of little use.

The marketing planning Definition and example

A marketing plan is a comprehensive blueprint which outlines an organization's

overall marketing efforts. A marketing process can be realized by the marketing
mix, which is outlined in step 4. The last step in the process is the marketing
controlling.

The marketing plan can function from two points: strategy and tactics (P. Kotler,
K.L. Keller). In most organizations, "strategic planning" is an annual process,
typically covering just the year ahead. Occasionally, a few organizations may look
at a practical plan which stretches three or more years ahead.

Marketing planning aims and objectives

Behind the corporate objectives, which in themselves offer the main context for the
marketing plan, will lie the "corporate mission," in turn provides the context for
these corporate objectives. In a sales-oriented organization, the marketing planning
function designs incentive pay plans to not only motivate and reward frontline staff
fairly but also to align marketing activities with corporate mission. The marketing
plan basically aims to make the business provide the solution with the awareness
with the expected customers.

This "corporate mission" can be thought of as a definition of what the organization

is, or what it does: "Our business is ...". This definition should not be too narrow,
or it will constrict the development of the organization; a too rigorous
concentration on the view that "We are in the business of making meat-scales," as
IBM was during the early 1900s, might have limited its subsequent development
into other areas. On the other hand, it should not be too wide or it will become
meaningless; "We want to make a profit" is not too helpful in developing specific
plans.

Abell suggested that the definition should cover three dimensions: "customer
groups" to be served, "customer needs" to be served, and "technologies" to be used.
[1]
Thus, the definition of IBM's "corporate mission" in the 1940s might well have
been: "We are in the business of handling accounting information [customer need]
for the larger US organizations [customer group] by means of punched cards
[technology]."

Perhaps the most important factor in successful marketing is the "corporate vision."
Surprisingly, it is largely neglected by marketing textbooks, although not by the
popular exponents of corporate strategy — indeed, it was perhaps the main theme
of the book by Peters and Waterman, in the form of their "Superordinate Goals."
"In Search of Excellence" said: "Nothing drives progress like the imagination. The
[2]
idea precedes the deed." If the organization in general, and its chief executive in
particular, has a strong vision of where its future lies, then there is a good chance
that the organization will achieve a strong position in its markets (and attain that
future). This will be not least because its strategies will be consistent and will be
supported by its staff at all levels. In this context, all of IBM's marketing activities
were underpinned by its philosophy of "customer service," a vision originally
promoted by the charismatic Watson dynasty. The emphasis at this stage is on
obtaining a complete and accurate picture.
A "traditional" — albeit product-based — format for a "brand reference book" (or,
indeed, a "marketing facts book") was suggested by Godley more than three
decades ago:

1. Financial data—Facts for this section will come from management

accounting, costing and finance sections.
2. Product data—From production, research and development.
3. Sales and distribution data — Sales, packaging, distribution sections.
4. Advertising, sales promotion, merchandising data — Information from these
departments.
5. Market data and miscellany — From market research, who would in most
cases act as a source for this information. His sources of data, however,
assume the resources of a very large organization. In most organizations
they would be obtained from a much smaller set of people (and not a few of
them would be generated by the marketing manager alone).

It is apparent that a marketing audit can be a complex process, but the aim is
simple: "it is only to identify those existing (external and internal) factors which
will have a significant impact on the future plans of the company." It is clear that
the basic material to be input to the marketing audit should be comprehensive.

Accordingly, the best approach is to accumulate this material continuously, as and

when it becomes available; since this avoids the otherwise heavy workload
involved in collecting it as part of the regular, typically annual, planning process
itself — when time is usually at a premium.

Even so, the first task of this annual process should be to check that the material
held in the current facts book or facts filesactually is comprehensive and accurate,
and can form a sound basis for the marketing audit itself.
The structure of the facts book will be designed to match the specific needs of the
organization, but one simple format — suggested by Malcolm McDonald — may
be applicable in many cases. This splits the material into three groups:

1. Review of the marketing environment. A study of the organization's

markets, customers, competitors and the overall economic, political, cultural
and technical environment; covering developing trends, as well as the
current situation.
2. Review of the detailed marketing activity. A study of the
company's marketing mix; in terms of the 7 Ps - (see below)
3. Review of the marketing system. A study of the marketing
organization, marketing research systems and the current marketing
objectives and strategies. The last of these is too frequently ignored. The
marketing system itself needs to be regularly questioned, because the
validity of the whole marketing plan is reliant upon the accuracy of the
input from this system, and `garbage in, garbage out' applies with a
vengeance.

 Portfolio planning. In addition, the coordinated planning of the

individual products and services can contribute towards the balanced
portfolio.
 80:20 rule. To achieve the maximum impact, the marketing plan must
be clear, concise and simple. It needs to concentrate on the 20 percent of
products or services, and on the 20 percent of customers, that will
account for 80 percent of the volume and 80 percent of the profit.
 7 Ps: Product, Place, Price and Promotion, Physical Environment,
People, Process. The 7 Ps can sometimes divert attention from the
customer, but the framework they offer can be very useful in building the
action plans.
It is only at this stage (of deciding the marketing objectives) that the active part of
the marketing planning process begins. This next stage in marketing planning is
indeed the key to the whole marketing process.
The "marketing objectives" state just where the company intends to be at some
specific time in the future.

James Quinn succinctly defined objectives in general as: Goals (or objectives)
state what is to be achieved and when results are to be accomplished, but they do
not state "how" the results are to be achieved. [3] They typically relate to what
products (or services) will be where in what markets (and must be realistically
based on customer behavior in those markets). They are essentially about the
match between those "products" and "markets." Objectives for pricing,
distribution, advertising and so on are at a lower level, and should not be confused
with marketing objectives. They are part of the marketing strategy needed to
achieve marketing objectives. To be most effective, objectives should be capable
of measurement and therefore "quantifiable." This measurement may be in terms of
sales volume, money value, market share, percentage penetration of distribution
outlets and so on. An example of such a measurable marketing objective might be
"to enter the market with product Y and capture 10 percent of the market by value
within one year." As it is quantified it can, within limits, be unequivocally
monitored, and corrective action taken as necessary.

The marketing objectives must usually be based, above all, on the organization's
financial objectives; converting these financial measurements into the related
marketing measurements. He went on to explain his view of the role of "policies,"
with which strategy is most often confused: "Policies are rules or guidelines that
express the 'limits' within which action should occur. "Simplifying
somewhat, marketing strategies can be seen as the means, or "game plan," by
which marketing objectives will be achieved and, in the framework that we have
chosen to use, are generally concerned with the 8 P's. Examples are:

1. Price — The amount of money needed to buy products

2. Product — The actual product
3. Promotion (advertising)- Getting the product known
4. Placement — Where the product is sold
5. People — Represent the business
6. Physical environment — The ambiance, mood, or tone of the environment
7. Process — The Value-added services that differentiate the product from the
competition (e.g. after-sales service, warranties)
8. Packaging — How the product will be protected

(Note: At GCSE the 4 Ps are Place, Promotion, Product and Price and the "secret"
5th P is Packaging, but which applies only to physical products, not services
usually, and mostly those sold to individual consumers)

In principle, these strategies describe how the objectives will be achieved. The 7 Ps
are a useful framework for deciding how the company's resources will be
manipulated (strategically) to achieve the objectives. However, they are not the
only framework, and may divert attention from the real issues. The focus of the
strategies must be the objectives to be achieved — not the process of planning
itself. Only if it fits the needs of these objectives should you choose, as we have
done, to use the framework of the 7 Ps.

The strategy statement can take the form of a purely verbal description of the
strategic options which have been chosen. Alternatively, and perhaps more
positively, it might include a structured list of the major options chosen.
One aspect of strategy which is often overlooked is that of "timing." Exactly when
it is the best time for each element of the strategy to be implemented is often
critical. Taking the right action at the wrong time can sometimes be almost as bad
as taking the wrong action at the right time. Timing is, therefore, an essential part
of any plan; and should normally appear as a schedule of planned activities.Having
completed this crucial stage of the planning process, to re-check the feasibility of
objectives and strategies in terms of the market share, sales, costs, profits and so on
which these demand in practice. As in the rest of the marketing discipline, employ
judgment, experience, market research or anything else which helps for
conclusions to be seen from all possible angles.

Detailed plans and programs

At this stage, overall marketing strategies will need to be developed into detailed
plans and program. Although these detailed plans may cover each of the 7 Ps
(marketing mix), the focus will vary, depending upon the organization's specific
strategies. A product-oriented company will focus its plans for the 7 Ps around
each of its products. A market or geographically oriented company will
concentrate on each market or geographical area. Each will base its plans upon the
detailed needs of its customers, and on the strategies chosen to satisfy these needs.
Brochures and Websites are used effectively.

Again, the most important element is, the detailed plans, which spell out exactly
what programs and individual activities will carry at the period of the plan (usually
over the next year). Without these activities the plan cannot be monitored. These
plans must therefore be:
 Clear - They should be an unambiguous statement of 'exactly' what is to be
done.
 Quantified - The predicted outcome of each activity should be, as far as
possible, quantified, so that its performance can be monitored.
 Focused - The temptation to proliferate activities beyond the numbers which
can be realistically controlled should be avoided. The 80:20 Rule applies in this
context to.
 Realistic - They should be achievable.
 Agreed - Those who are to implement them should be committed to them,
and agree that they are achievable. The resulting plans should become a
working document which will guide the campaigns taking place throughout the
organization over the period of the plan. If the marketing plan is to work, every
exception to it (throughout the year) must be questioned; and the lessons learnt,
to be incorporated in the next year's .

Content of the marketing plan

A marketing plan for a small business typically includes Small Business

Administration Description of competitors, including the level of demand for the
product or service and the strengths and weaknesses of competitors

1. Description of the product or service, including special features

2. Marketing budget, including the advertising and promotional plan
3. Description of the business location, including advantages and
disadvantages for marketing
4. Pricing strategy
5. Market Segmentation
1. Current Situation - Market Analysis
 market definition
 market size
 market segmentation
 industry structure and strategic groupings
 Porter 5 forces analysis
 competition and market share
 competitors' strengths and weaknesses
 market trends
2. Current Situation - Consumer Analysis
 nature of the buying decision
 participants
 demographics
 psychographics
 buyer motivation and expectations
 loyalty segments
3. Current Situation - Internal
 company resources
 financial
 people
 time
 skills
 objectives
 mission statement and vision statement
 corporate objectives
  financial objective
 marketing objectives
 long term objectives
 description of the basic business philosophy
 corporate culture
4. Summary of Situation Analysis
 external threats
 external opportunities
 internal strengths
 internal weaknesses
 Critical success factors in the industry
 our sustainable competitive advantage
5. Marketing Research
 information requirements
 research methodology
 research results
6. Marketing Strategy - Product
 Unique selling proposition (USP)
 product mix
 product strengths and weaknesses
 perceptual mapping
 product life cycle management and new product development
 Brand name, brand image, and brand equity
 the augmented product
 product portfolio analysis
  B.C.G. Analysis
 contribution margin analysis
 G.E. Multi Factoral analysis
 Quality Function Deployment
7. Marketing Strategy - segmented marketing actions and market
share objectives
 by product
 by customer segment
 by geographical market
 by distribution channel
8. Marketing Strategy - Price
 pricing objectives
 pricing method (e.g.: cost plus, demand based, or competitor
indexing)
 pricing strategy (e.g.: skimming, or penetration)
 discounts and allowances
 price elasticity and customer sensitivity
 price zoning
 break even analysis at various prices
9. Marketing Strategy - Promotion
 promotional goals
 promotional mix
 advertising reach, frequency, flights, theme, and media
 sales force requirements, techniques, and management
 sales promotion
 publicity and public relations
  electronic promotion (e.g.: web, or telephone)
 word of mouth marketing (buzz)
 viral marketing
10.Marketing Strategy - Distribution
 geographical coverage
 distribution channels
 physical distribution and logistics
 electronic
distribution
11.Implementation
 personnel requirements
 assign responsibilities
 give incentives
 training on selling methods
 financial requirements
 management information systems requirements
 month-by-month agenda
 Gantt chart using PERT or critical path analysis systems
 monitoring results and benchmarks
 adjustment mechanism
 contingencies (what
ifs) 12.Financial Summary
 assumptions
 pro-forma monthly income statement
 contribution margin analysis
 breakeven analysis
  Monte Carlo method
 ISI: Internet Strategic
Intelligence 13.Scenarios
 prediction of future scenarios
 plan of action for each
scenario 14.Controls
 Performance indicator
 provide feedback mechanisms
15.Appendix
 pictures and specifications of the new product
 results from research already completed

Measurement of progress

The final stage of any marketing planning process is to establish targets (or
standards) so that progress can be monitored. Accordingly, it is important to put
both quantities and timescales into the marketing objectives (for example, to
capture 20 percent by value of the market within two years) and into the
corresponding strategies.

Changes in the environment mean that the forecasts often have to be changed.
Along with these, the related plans may well also need to be changed. Continuous
monitoring of performance, against predetermined targets, represents a most
important aspect of this. However, perhaps even more important is the enforced
discipline of a regular formal review. Again, as with forecasts, in many cases the
best (most realistic) planning cycle will revolve around a quarterly review. Best of
all, at least in terms of the quantifiable aspects of the plans, if not the wealth of
backing detail, is probably a quarterly rolling review — planning one full year
ahead each new quarter. Of course, this does absorb more planning resource; but it
also ensures that the plans embody the latest information, and — with attention
focused on them so regularly — forces both the plans and their implementation to
be realistic.

Plans only have validity if they are actually used to control the progress of a
company: their success lies in their implementation, not in the writing'.

Performance analysis

The most important elements of marketing performance, which are normally

tracked, are:

Sales analysis

Most organizations track their sales results; or, in non-profit organizations for
example, the number of clients. The more sophisticated track them in terms of
'sales variance' - the deviation from the target figures — which allows a more
immediate picture of deviations to become evident.

`Micro-analysis', which is simply the normal management process of investigating

detailed problems, then investigates the individual elements (individual products,
sales territories, customers and so on) which are failing to meet targets

Market share analysis

Few organizations track market share though it is often an important metric.

Though absolute sales might grow in an expanding market, a firm's share of the
market can decrease which bodes ill for future sales when the market starts to drop.
Where such market share is tracked, there may be a number of aspects which will
be followed:
 overall market share
 segment share — that in the specific, targeted segment
 relative share

Expense analysis

The key ratio to watch in this area is usually the `marketing expense to sales ratio';
although this may be broken down into other elements (advertising to sales, sales
administration to sales, and so on).

Financial analysis

The "bottom line" of marketing activities should at least in theory, be the net profit
(for all except non-profit organizations, where the comparable emphasis may be on
remaining within budgeted costs). There are a number of separate performance
figures and key ratios which need to be tracked:

 gross contribution<>net profit

 gross profit<>return on investment
 net contribution<>profit on sales

There can be considerable benefit in comparing these figures with those achieved
by other organizations (especially those in the same industry); using, for instance,
the figures which can be obtained (in the UK) from `The Centre for Interfirm
Comparison'. The most sophisticated use of this approach, however, is typically by
those making use of PIMS (Profit Impact of Management Strategies), initiated by
the General Electric Company and then developed by Harvard Business School,
but now run by the Strategic Planning Institute.

The above performance analyses concentrate on the quantitative measures which

are directly related to short-term performance. But there are a number of indirect
measures, essentially tracking customer attitudes, which can also indicate the
organization's performance in terms of its longer-term marketing strengths and
may accordingly be even more important indicators. Some useful measures are:

 market research — including customer panels (which are used to track

changes over time)
 lost business — the orders which were lost because, for example, the stock
was not available or the product did not meet the customer's exact requirements
 customer complaints — how many customers complain about the products
or services, or the organization itself, and about what

Use of marketing plans

A formal, written marketing plan is essential; in that it provides an unambiguous

reference point for activities throughout the planning period. However, perhaps the
most important benefit of these plans is the planning process itself. This typically
offers a unique opportunity, a forum, for information-rich and productively
focused discussions between the various managers involved. The plan, together
with the associated discussions, then provides an agreed context for their
subsequent management activities, even for those not described in the plan itself.
Additionally, marketing plans are included in business plans, offering data
showing investors how the company will grow and most importantly, how they
will get a return on investment.

Budgets as managerial tools

The classic quantification of a marketing plan appears in the form of budgets.

Because these are so rigorously quantified, they are particularly important. They
should, thus, represent an unequivocal projection of actions and expected results.
What is more, they should be capable of being monitored accurately; and, indeed,
performance against budget is the main (regular) management review process.

The purpose of a marketing budget is, thus, to pull together all the revenues and
costs involved in marketing into one comprehensive document. It is a managerial
tool that balances what is needed to be spent against what can be afforded, and
helps make choices about priorities. It is then used in monitoring performance in
practice.

The marketing budget is usually the most powerful tool by which you think
through the relationship between desired results and available means. Its starting
point should be the marketing strategies and plans, which have already been
formulated in the marketing plan itself; although, in practice, the two will run in
parallel and will interact. At the very least, the rigorous, highly quantified, budgets
may cause a rethink of some of the more optimistic elements of the plans.
COMPANY PROFILE
 COMPANY PROFILE
AMUL

Amul (Anand Milk Union Limited)

Type Cooperative

Industry Dairy/FMCG

Founded 1946

Headquarters Anand, Gujarat, India

Key people Chairman, Gujarat Co-

operative Milk Marketing
Federation Ltd. (GCMMF)

Products See complete products

listing

Revenue US$3.1 billion (2013–

14)

Number of 750 employees of

 employees Marketing Arm. However,
real pool consist of 3
million milk producer
members

Slogan The Taste of India

Website www.amul.com

The Amul Plant at Anand showing the milk silos

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.
[2]
The word amul is derived from the Sanskrit word amulya, meaning rare,
valuable .[3] The co-operative was initially referred to asAnand Milk Federation
Union Limited hence the name AMUL.

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

operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly
owned by 3 million milk producers in Gujarat.

Amul spurred India's White Revolution, which made the country the world's
largest producer of milk and milk products. In the process Amul became the largest
food brand in India and has ventured into markets overseas.

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

(1973–2006), is credited with the success of Amul.
History

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

exploitation of marginal milk producers by traders or agents of the only existing
dairy, the Polson dairy, in the small city distances to deliver milk, which often
went sour in summer, to Polson. The prices of milk were arbitrarily determined.
Moreover, the government had given monopoly rights to Polson to collect milk
from mikka and supply it to BoMBAy city.

Angered by the unfair trade practices, the farmers of Kaira

approached Sardar Vallabhbhai Patel under the leadership of local farmer
leader Tribhuvandas K. Patel. He advised them to form a cooperative and supply
milk directly to the BoMBAy Milk Scheme instead of Polson (who did the same
but gave them low prices). He sent Morarji Desai to organise the farmers. In 1946,
the milk farmers of the area went on a strike which led to the setting up of the
cooperative to collect and process milk.[8] Milk collection was decentralized, as
most producers were marginal farmers who could deliver, at most, 1–2 litres of
milk per day. Cooperatives were formed for each village, too.

The cooperative was further developed and managed by Dr.Verghese

Kurien with H.M. Dalaya. Dalaya's innovation of making skim milk powder from
buffalo milk (for the first time in the world) and a little later, with Kurien's help,
making it on a commercial scale, led to the first modern dairy of the cooperative at
Anand, which would compete against established players in the market. Kurien's
brother-in-law K.M. Philip sensitized Kurien to the needs of attending to the finer
points of marketing, including the creation and popularization of a brand. This led
to the search for an attractive brand name. In a brainstorming session, a chemist
who worked in the dairy laboratory suggested Amul, which came from the Sanskrit
word "amulya", which means "priceless" and "denoted and symbolised the pride of
swadeshi production."

The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon
spread to Anand's neighbourhood in Gujarat. Within a short span, five unions in
other districts – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set
up.[8] To combine forces and expand the market while saving on advertising and
avoid competing against each other, the GCMMF, an apex marketing body of these
district cooperatives, was set up in 1973. The Kaira Union, which had the brand
name Amul with it since 1955, transferred it to GCMMF.

In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.

Adding to the success, Dr. Madan Mohan Kashyap (faculty Agricultural and
Engineering Department, Punjab Agricultural University Ludhiana), Dr. Bondurant
(visiting faculty) and Dr Feryll (former student of Dr Verghese Kurien), visited the
Amul factory in Gujarat as a research team headed by Dr. Bheemsen. Shivdayal
Pathak (ex-director of the Sardar Patel Renewable Energy Research Institute) in
the 1960s. A milk pasteurization system at the Research Centre of Punjab
Agricultural University (PAU) Ludhiana was then formed under the guidance of
Kashyap.
About GCMMF

The GCMMF is the largest food products marketing organisation of India. It is the
apex organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing
organisation for products under the brand name of Amul and Sagar. [15]Over the last
five and a half decades, dairy cooperatives in Gujarat have created an economic
network that links more than 3.1 million village milk products with millions of
consumers in India.[citation needed] The daily milk procurement of GCMMF is around
13 million liters per day. It collects milk from about 16914 village milk
cooperative societies, 17 member unions and 24 districts covering about 3.18
million milk producer members. More than 70% of the members are small or
marginal farmers and landless labourers including a sizeable population of tribal
folk and people belonging to the scheduledcastes.[15]

The three-tier "Amul Model"

The Amul Model is a three-tier cooperative structure. This structure consists of a

dairy cooperative society at the village level affiliated to a milk union at the district
level which in turn is federated into a milk federation at the state level. Milk
collection is done at the village dairy society, milk procurement and processing at
the District Milk Union and milk products marketing at the state milk federation.
The structure was evolved at Amul in Gujarat and thereafter replicated all over the
country under the Operation Flood programme. It is known as the 'Amul Model' or
'Anand Pattern' of dairy cooperatives.

The main functions of the VDCS are:

 Collection of surplus milk from the producers of the village and payment
based on quality and quantity,
 Providing support services to the members like veterinary first aid, artificial
insemination services, cattle-feed sales, mineral mixture sales, fodder and
fodder seed sales, conducting training on animal husbandry and dairying,
 Selling liquid milk for local consumers of the village,
 Supplying milk to the District Milk Union.

State Cooperative Milk Federation (Federation)

The main functions of the federation are as

follows:

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

Unions,
 Establish a distribution network for marketing of milk and milk products,
 Arranging transportation of milk and milk products from the Milk Unions to
the market,
 Creating and maintaining a brand for marketing of milk & milk products,
 Providing support services to the Milk Unions and members like technical
inputs, management support and advisory services,
 Pooling surplus milk from the Milk Unions and supplying it to deficit Milk
Unions,
 Establish feeder-balancing dairy plants for processing the surplus milk of the
Milk Unions,
 Arranging for common purchase of raw materials used in
manufacture/packaging of milk products,
 Decide on the prices of milk and milk products to be paid to Milk Unions,
  Decide on the products to be manufactured at Milk Unions and capacity
required for the same.
 Conduct long-term milk production, procurement and processing as well as
marketing planning.
 Arranging finance for the Milk Unions and providing them technical know-
how.
 Designing and providing training in cooperative development and technical
and marketing functions.
 Conflict resolution and keeping the entire structure intact.

Today, there are around 176 cooperative dairy unions formed by 125,000 dairy
cooperative societies, having a total membership of around 13 million farmers on
the same pattern, who are processing and marketing milk and milk products
profitably, be it Amul in Gujarat or Verka in Punjab, Vijaya in Andhra Pradesh,
Milma in Kerala, Gokul in Maharashtra, Saras in Rajasthan or a Nandini in
Karnataka. This process has created more than 190 dairy processing plants spread
all over India with large investments by these farmers' institutions. These
cooperatives today collect approximately 23 million kg of milk per day and pay an
aggregate amount of more than Rs. 125 billion to the milk producers in a year.

IMPACT OF THE "AMUL MODEL"

The effects of Operation Flood Programme are appraised by the World Bank in an
evaluation report. It has been proved that an investment of Rs. 20 billion over
20 years under Operation Flood in the 1970s and 80s has contributed in increase of
India‘s milk production by 40 million metric tonnes (MMT), i.e., from about
20 MMT pre-Operation Flood to more than 60 MMT at the end of Operation
Flood.
Thus, an incremental return of Rs. 400 billion annually have been generated by an
investment of Rs. 20 billion over 20 years. India‘s milk production continues to
increase and now stands at 90 MMT(as of 2012). Despite this fourfold increase in
production, there has not been a drop in the prices of milk during the period while
production has continued to grow.

Due to this movement, the country‘s milk production tripled between the years
1971 and 1996. Similarly, the per capita milk consumption doubled from 111 gm
per day in 1973 to 222 gm per day in 2000.
 THE AMUL BRAND
GCMMF (AMUL) has the largest distribution network for any FMCG company. It
has nearly 50 sales offices spread all over the country, more than 5000 wholesale
dealers and more than 700000 retailers.

Amul became the world's largest vegetarian cheese and the largest pouched-milk
brand.

AMUL is also the largest exporter of dairy products in the country. AMUL is
available today in over 40 countries of the world. AMUL is exporting a wide
variety of products which include whole and skimmed milk powder, cottage cheese
(Paneer), UHT milk, clarified butter (Ghee) and indigenous sweets.

The major markets are USA, West Indies, and countries in Africa, the Gulf Region,
and SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China,
and others such as Mauritius, Australia, Hong Kong and a few South African
countries. Its bid to enter the Japanese market in 1994 did not succeed, but it plans
to venture again.[17]

In September 2007, Amul emerged as the leading Indian brand according to a

survey by Synovate to find out Asia's top 1000 Brands.

In 2013, Amul was named the Most Trusted brand in the Food and Beverages
sector in The Brand Trust Report, published by Trust Research Advisory,[19] where
as in the 2014 edition of The Brand Trust Report,[20] Amul is ranked 7th in the list
of India's Most Trusted Food and Beverages brands.
 ORGANIZATION CHART
PCDF has ten divisions. Every division has manager who is responsible to
General Manager. G. M. of every division is responsible to Managing
Director.
The division heads of each division shall be responsible for the
performance and of their respective division not only at the head office but
also in the units / unions in the field. These officers shall not merely insure
achievement of the targets fixed and implementation of systems for their
functional areas but promptly attend to the problems of the units/unions.
The divisional heads shall discharging their duties within the policy frame
laid down by the Managing Director and subject of his control &
supervision only important performance and control reports , matters , questions
involving exception to approved policy , systems development and other
important matters need to be put up before the Managing director.
Bill before approval & implementation ; be routed through the Management
Service Division (MSD) , which will check the plan to see whether they are
in conformity with corporate objective and will see that that they are in
conformity with other plans and system and contradiction occurs.
The divisional heads should see the terms made by them and their officers
and purposively designate link officers for each officer in their division. All
letters to the NDDB shall before dispatch , be sent to the MSD , which will
take speedy clearance at the appropriate level. A copy of all such letters
shall be the CPM section the MSD.
 PRODUCTS RANGE
Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti
Dahi, Yoghurt, Buttermilk, chocolate, ice cream, cream, shrikhand, paneer, gulab
jamuns, flavoured milk, basundi, Amul Pro brand and others. Amul PRO is a
recently launched brown beverage just like bournvita and horlicks offering whey
protein, DHA and essential nutrients. In January 2006, Amul launched India's
first sports drink, Stamina, which competes with Coca
Cola's Powerade and PepsiCo'sGatorade.

Amul offers mithaimate which competes with Milkmaid by Nestle by offering

more fat at lower price.

In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its
product offering in the milk products segment. Other Amul brands are Amul Kool,
a low-calorie thirst quenching drink; Masti Butter Milk; and Kool Cafe, ready to
drink coffee.

Amul's icecreams are made from milk fat and thus are icecreams in real sense of
the word, while many brands in India sell frozen desserts made from vegetable fat.

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

Marketing Award for 2007.
UHT products and impact
Over the years Amul has been witnessing strong growth in this portfolio,with the
segment growing at 53%, as a result of growing consumer awareness and demand
for good quality milk,the urban population has especially been showing great
interest in long life UHT products like Amul Taaza,which are packed in Tetra
Pak cartons,which undergoes UHT treatment to remove all harmful
microorganisms while retaining the nutrition in the milk.Today Amul sells around
4-500,000 litres of UHT milk and other value added products per day and forecast
this demand to continue growing at 25%.The UHT products have enabled Amul to
position itself as the market leader in packaged milk segment by penetrating the
deeper and vast markets by maintaining long shelf life of milk,without the need of
maintaining cold supply chains.

Any Time Milk (ATM) Machine

Amul has installed a "Any Time Milk" machine which dispenses a 300-ml pouch
of fresh milk for Rs 10, at Anand's Amul Dairy. As a first step, Amul plans to
install six such ATMs in Anand itself. According to Rahul Kumar, MD of Amul
Dairy, Amul wants to add a whole range of dairy products, which could be
dispensed through these machines.
 ADVERTISING

An Amul butter ad on Pakistan'sfiasco. The image shows the "Amul baby" between and .

In 1966, Amul hired Sylvester, then managing director of the advertising agency
AS to design an ad campaign for Amul Butter. daCunha designed a campaign as
series of hoardings with topical ads, relating to day-to-day issues. [25] It was popular
and earned a Guinness world record for the longest running ad campaign in the
world. In the 1980s, cartoon artist Kumar Morey and script writer Bharat
Dabholkar had been involved with sketching the Amul ads; the latter rejected the
trend of using celebrities in advertisement campaigns. Dabholkar credited
chairman Verghese Kurien with creating a free atmosphere that fostered the
development of the ads.

Despite encountering political pressure on several occasions, daCunha's agency has

made it a policy of not backing down. Some of the more controversial Amul ads
include one commenting on the Naxalite uprising in West Bengal, on the Indian
Airlines employees strike, and one depicting the Amul butter girl wearing a Gandhi
cap.

In 2013, Amul tweeted a picture featuring the Amul butter girl, implying that
'freedom of choice' died in '2013', in opposition to the Supreme Court of India
overruling the judgment of Delhi High Court and criminalising homosexuality
again.

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

In popular culture

The establishment of Amul is known as White Revolution.

The White Revolution inspired the notable Indian film-maker Shyam Benegal to
base his film Manthan (1976) on it. It starredSmita Patil, Girish
Karnad, Naseeruddin Shah and Amrish Puri. The film was financed by over five
lakh rural farmers inGujarat who contributed Rs 2 each to its budget. Upon its
release, these farmers went in truckloads to watch 'their' film, making it a
commercial success. Manthan was chosen for the 1977 National Film Award for
Best Feature Film in Hindi.
 COLLECTION AND DISTRIBUTION OF MILK

The report present detailed information about the Lucknow Milk Union
(Amul ) its evolution and organization structure.
Dairy work happens through various procedures. Basic of the dairy
work is like this structure –
 Milk Collection Mechanism
 Milk Distribution Mechanism

Collection of Milk Dairy (Reprocessing Distribution

of milk) of milk

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

operative milk union. It is a big co-operative unit based on the values of
understanding co-operation profit for milk producers and providing quality
products to consumers at a cheaper price. ―AMUL ‖
does maximum utilization of milk to increase milk efficiency in reasonable
costs of production and hence overall cost.
‗AMUL ‘ work may be divided into 3-subunites.
a. Marketing
b. Administration and Production
c. Industry Unit
Administration co-ordinates various function , looks after salaries and wages
and various human resources problems of production. The industry unit is
engaged in the function of producing various industrial products like milk ,
butter etc.
Whereas the marketing is engaged in distribution and proper sale of these
products.

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

corporation , occupations , government or other organizations to establish
productive relationship report and partnership‖
PUBLIC RELATION is popularly defined as on the other basis of
acceptance of well-organized efforts by society for the welfare and
development of entire community is termed as ‗PUBLIC RELATION‘.
 DAIRY SUPLY CHAIN STRUCTURE
Member Farmer

Society

Chilling Center

Dairy

Inter Dairy Transfer

Milk Other Milk Product

Redistribution Stockist
Parlour Institution Exclusive Agent

Vender Retailer

CUSTOMER

The Amul Dairy did a lot‘s of efforts to collect the milk. It is a dynamic
and complex field involving many workable principles and production over a
period of years.
 COLLECTION OF MILK

SURVEY
Firstly , LPCM union does some survey in rural areas. The survey team tells
about the societies activities to that farmer who has sufficient milk.
ROUTES AND SOCIETIES
Initially , AMUL societies were established on those routes where there is
possibility of milk. Milk societies cater to a cluster of 6-10 villages each.
They are well connected through road network to facilitate milk
transportation to larger towns. At present there are 10 routes and 466
societies of Amul Dairy.
Collected milk from societies is finally sent to the dairy for various
treatments and tests.
RATES OF MILK
The milk collected from various societies is brought to the dairy and here it
is weighted and duly recorded in the register. The capacity of the milk Can
is approximately 50 liters. Afterwards , the milk is sent to various laboratory
processes. The quality of milk is also tested there.
Lab workers test the milk for FAT & SNF percentage and also determine
whether the milk is fresh or sour.
After performing various tests , the Procurement and Input Department
decides the quality of milk and then a valid rate of milk is given to the
member farmer accordingly.
 AIMS OF L.P.C.M. UNION LTD :
Co-operative union has some target which they fulfill every year.
The aims are :-
1. No. of Societies
2. Total no of members
a) Number of ladies member
b) Number of SC , ST Caste Ladies
c) Number of SC , ST Caste Members
d) Number of Backward Caste Members
e) Number of I.R.D.P. Members
3. No of Farmer Members
4. Animal health primary treatment aid
5. Vaccination
6. Sterility Prohibition
7. Balance diet of animals
8. Production of green grass
9. Artificial breeding
10. Quantity of seeds (in kg.)
11. Purchasing of liquid milk and products of milk
a) Average of liquid milk purchasing (in thousand liters)
b) Purchasing of Ghee (in thousand liters)
c) Butter (in thousand liters)
12. Benefits of society / Distribution of bonus
a) Pure benefits of society numbers
b) Societies number (bonus)
c) Distribution of Bonus Money (in lakh Rs.)
 DISTRIBUTION OF MILK

The 4 P‘s Are always influencing the advertising process and decision.
These 4 P‘s are :
1. Promotion
2. Product
3. Price
4. Place

The channel of distribution is the path , which the products takes while
moving to the ultimate consumers.
The term channel of distribution refers to network of middleman through
whom the product flows till it finally reaches to the hands of the actual
users.
Under the broad name of ‗place‘ which is a marketing component , the most
common channel for consumer‘s goods is manufacturer – wholesaler – retailer
– consumer.
For industrial products it may be manufacturer – sole-selling agents –
distributors – dealer and finally users.
 PROCESS OF DISTRIBUTION

DAIRY DISTRIBUTION SYSTEM AN OVERVIEW : -

AGENTS :-
Firstly , Agents enrolled with Distribution Department (Sales dept) of LPMU
gives the location of place where they require the milk. Then the supply
vehicle unloads the required amount of milk to that agent shop. All demands
get through supply vehicles.
Processed milk and other related products need different distribution
structure. The difference in the distribution structure is for the following
reasons.
 Different time of sale
 Processed milk can be sold from agents or outlets only early in the
morning and evening.
 Different service level from retail. Unlike processed milk mozzarella
cheese many need more customer education and hence is sold through
premium retail store.

 Different shelf life whereas processed milk is still highly perishable-

Butter, Ghee or paneer have better shelf life and can be sold through
normal FMCH distribution structure.

Milk union sells their products through agents. Lucknow has a total of
approx. 1900 outlets selling milk and about 800 agents are serviced by
AMUL . Lucknow has a huge demand for milk.
The sale of milk is highly skewed towards the early morning hours . In
Lucknow around 40% of the agents temporary structures for selling milk in
morning. 40% of the agents have a milk booth or operate from there houses
and balance 20% is regular retail outlets selling milk too.
Dairy use milk truck or van (painted with Logo and Slogan) for distributing
the products to retailers.
 CHANNEL GF DISTRIBUTORS

Some types of agent are like that :-

 Retailer
 Bakery or confectionary shop
 Road side seller
 Hotels / Institutional

PROCESS MAPPING
Distribution vans are used for supplying the processed milk and curd to
agents. Agents are hubs identified by Dairy for distribution of its products.
Agents generally sell exclusively dairy‘s brand of products. Retailer deposits
security and should purchase milk on daily basis. Dairy officially can impose
penalty in case agents are found selling other brand of milk.

ROUTE PLANNING
There are 37 routes in Lko. Route planning has been done keeping primarily
the total time available and no of outlets for any given route. No of outlet
in a route is a function of -
 Approximate purchase by the agent‘s en-route. Purchase governs the
time taken for loading / unloading at any given outlet to be kept for
that route.
 Terrain / accessibility of the outlets.
 Distance between the outlets. The terrain / accessibility and distance
between outlets determines the time taken for inter outlet travel.
 Institutions est. en-route. Institutions have their own systems for entry
/ exit and documentation hence , routes having higher no. of
institutions would have lesser no. of outlets for the route.

All routes have been encoding with relation to there respective district
sand outlets have been encoded for their respective routes. This has
been done to track sales at retail level , management of empty crates
etc. separate routes have been identified for institutional sales .
 CONTAINERIZATION

CONTAINERIZATION of vehicle is required to facilitate stacking of crates

that fast empty and milk crates movement at retail points while maintaining
the temperature inside vehicle. Container doesn‘t become a bottleneck in fast
moment of vehicles (fast movement is required to finish milk supply early
in night and to preserve the quality of milk).
Milk pouches are left at shopkeeper premised in night to be sold only in
morning. Most of the retailer doesn‘t have freezer for storing milk.
The delivery of milk crates is in three stages.
 Crates are downloaded from the container.
 Crates are bought near the shop entrance.
 Shop keeper puts creates inside the shop / deep freezer.

Containerization would reduce handling losses during these activities. The

vehicle crew levels the crates on the road and move to its next service
point. The crew needs to be trained to deal with the end customer of dairy
appropriately. With increasing competition , all organization would have to
think of :
 Keeping the end customer happy.
 Providing the best quality product and service.
 Maintaining a social , friendly and innovative corporate
image.

Competition is hooting up in dairy sector. Dairy is expected to have growth

rate of 20% or more after the year 2002. Multinationals like Nestle have a
strong presence in dairy items sold through FMCG retail distribution
channels , however , these factor could become a leveler for any
organization.

TYPE OF VEHICLE
1. BIG VEHICLE Tata 407 DCM Toyota
2. SMALL VEHICLE Tempos

The dispatch sheet is given to the attendant. Dispatch sheet also doubles as
a gate pass for vehicle movement out of DAIRY. Amul has a separate
document dispatch summery for gate pass. Physical enumeration is done at
gate by security to cross check the figures mentioned in the dispatch
statement vehicles out of the factory premises. The dispatch sheet and empty
trays are returned to dairy official the next day.
USE OF COMPUTER
According to the modern professional activities , computer is being used in
the different works of the union. A new electric milk-weighting machine is
also planted which is joined with the computers. The computer also records
the amount of milk collected under the society ‘ name.
 MARKETING
Lucknow milk union in the recent three-four year has been on the top for
milk production and marketing in state. The union now had to work in
collaboration with the regional dairies , which is affecting its profit a lot. In
these gears milk production and production of other milk products by the
unit has been very good. In addition to milk , union has also fulfilled the
needs of butter , ghee , cheese , flavored milk , cakes , Ice-creams in the state
more then the local demand. Cheese and butter through the medium of
PCDF are sent for marketing on the state and national Levels.

The Project profile & Review of literature

Marketing strategy implementation research, five organizational levels can be
distinguished. They are: corporate level, strategic business unit (SBU) level,
functional level, operational level and mixed levels (such as corporate and SBU
level, SBU and functional level, inter-functional levels, corporate-SBU-functional
levels, etc.).Surprisingly few researchers focus on the implementation of corporate
levelstrategies, such as Wernham (1985) and Schmidt & Brauer (2006), while
many examine SBU level strategies (Gupta & Govindarajan, 1984; White, 1986;
Govindarajan, 1988; Govindarajan, 1989; Govindarajan & Fisher, 1990;
Skivington & Daft, 1991; Roth & Schweiger & Morrison, 1991; Floyd &
Wooldridge, 1992b; Waldersee & Sheather, 1996; Nilsson & Rapp, 1999;
Chimhanzi & Morgan, 2005; Olson Slater & Hult, 2005; Schaap, 2006; Brenes &
Mena & Molina, 2007). The same holds true for functional strategies: We have
found eight studies that focus on the implementation of such strategies, namely
Rapert & Lynch & Suter (1996), Sashittal & Wilemon (1996), Piercy (1998),
Noble (1999a), Noble & Mokwa (1999), Chimhanzi (2004), Qi (2005), Viseras &
Baines & Sweeney (2005). Most of these studies, however, focus on marketing
strategy (such as Sashittal & Wilemon, 1996; Piercy, 1998; Noble & Mokwa,
1999, Chimhanzi, 2004). There are few studies dedicated to the implementation of
other functional strategies (this is clearly an area of future research). The only
other study of functional strategy implementation that we have been able to
identify is Viseras, Baines and Sweeney‟s study (2005) in the context of
manufacturing strategies. This study focuses on the key success factors in the
project management for the implementation of strategic manufacturing initiatives.
Few studies focus on the actual operational level of strategy implementation, such
as Bantel (1997), Homburg & Krohmer & Workman (2004). Bantel (1997)
analyzes the effects of two key aspects of product strategy (product leadership and
product/market focus) on performance, and on two aspects of strategic
implementation (stakeholder input and employee empowerment). This study also
emphasizes the relationship between product strategy and several strategic
implementation variables. Homburg, Krohmer & Workman (2004) point out that
market orientation plays a key role for the successful implementation of a PPD
(premium product differentiation) strategy.
There are some studies which cannot be classified into the above categories.
Consequently, we classify them into a group called mixed level studies: Gupta
(1987), Beer & Eisenstat (2000) and Hrebiniak (2006) have carried out research on
corporate and SBU-level strategy. Walker and Ruekert (1987) analyze three levels
of strategy – orporate, SBU and functional. Higgins (2005) even focuses on four
types of strategies: corporate, business, functional and process. Process strategies,
the last type normally cut across functions and are aimed at integrating
organizational processes across the organization in order to make them more
effective and more efficient.
Slater and Olson (2001) analyze marketing‟s contribution to the implementation of
business strategy. The mixed studies category also includes articles that focus on
the role of project management for strategy implementation. Okumus (2001), for
example focuses on the implementation of a yield management project and a key
client management project in two hotels. Peng and Litteljohn (2001) investigate
three hotel chains implementing a strategic initiative on yield management. Grundy
(1998) examines the synergies among project management and strategy
implementation and reviews strategy tools that may help in project management.
Finally, there are many studies that are not sufficiently explicit regarding their
scope concerning strategic levels. Examples of such ambiguous studies are
Bourgeois Ш and Brodwin (1984), Nutt (1986, 1987, 1989), Noble (1999b),
Lehner (2004), Higgins (2005), Harrington (2006), and Schaap (2006). We can
draw multiple conclusions based on our analysis of the treatment of organizational
levels in prior studies of strategy implementation. We note that –among the five
strategy levels – the SBU-level (14 articles), the functional- level (8 articles) and
mixed levels (9 articles) have received more attention than the other two levels,
corporate (2 articles) and operational (2 articles). Many studies (25 articles) do not
even indicate at which level their discussion of strategy implementation is located.
Two calls to action result from these findings. First, the implementation of
corporate strategies is an under-researched area (perhaps with the exception of
post-merger integration research that we have excluded in our review) and should
be given more research attention. Second, future strategy implementation research
should pay attention to explicitly indicate the level of analysis. Within the
functional level, another finding revealed that marketing is the prevailing domain,
compared with other functional areas (such as manufacturing, R&D, HR,
accounting etc.). In terms of promising future research on strategy implementation,
we can observe that there are very few studies that have examined the inter-
relationships of functional and business strategies. One such study focuses on
marketing‟s contribution to the implementation of business strategy (Slater &
Olson, 2001). Another study has examined the mutual influence of functional
departments‟ relationships on strategies, which seems a highly relevant area to
improve our understanding of strategy implementation: Chimhanzi (2004) has
examined the impact of marketing and HR interactions on marketing strategy
implementation.
Organizational types
Organizational types, as stated earlier, refer to the characteristics of organizations:
if they are private or state-owned, local or multinational. As far as ownership forms
are concerned, strategy implementation studies discuss both, state-owned and
privately held companies. Wernham (1985), for example, explores the reality of
strategy implementation in a U.K. nationalized company, British Telecom (BT).
Alexander (1985) surveys 93 private sector firms through a questionnaire. Qi
(2005) issues questionnaires to the head offices of 800 private companies in the
UK. Noble‟s (1999a) study spans several types of organizations – a national
airline, a major financial services firm, a leading packaged goods company, a
provider of emergency fire and medical services, and a leading firm in the imaging
technology industry. Some of the researched companies focus on their domestic
markets, while others are multinational corporations. Rapert, Velliquette and
Garretson‟s (2002) study on strategy implementation takes a nationwide sample of
1000 CEOs of general service hospitals, which are members of
the American Hospital Association (AHA); Roth & Schweiger & Morrison (1991)
and Kim & Mauborgne (1991, 1993) study global strategy; Okumus (2001)
investigates two international hotel groups; Forman and Argenti (2005) select five
multinational companies as samples, namely Accenture, Dell, FedEx, Johnson &
Johnson, Sears. In conclusion, the subjects of strategy implementation studies are
not only state-owned corporations, but mostly private corporations, not only local
firms but also multinational firms. However, there have been no studies comparing
similarities and differences of strategy implementation among private corporations
and state-owned corporations, or among local firms and multinational firms. We
thus do not know which specific differences exist regarding strategy
implementation in these various forms organizations. This clearly is another
interesting avenue for future research.

RELEVANCE OF THE TOPIC

The relevance of the topic is the first step to a successful Research process. Project
undertaken the problem of analyzing the Marketing strategy of Amul.

PROBLEM ENVIRONMENT
The problem formulation is the first step to a successful Research
process. Project undertaken the problem of analyzing the Marketing strategy of
Amul
OBJECTIVE OF STUDY
 OBJECTIVE OF STUDY

1) To study marketing strategy of Amul.

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

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

4) To study impact of marketing strategy on Amul .

5) How to Promote the marketing strategy of Amul.

SCOPE OF STUDY
The scope formulation is the first step to a successful Research process. Project
undertaken the problem of analyzing the Marketing strategies of Amul.
 IMPORTANCE AND USE OF THE STUDY

To keep things in mind that as the ever changing competitive business

environment. New thoughts and ideas should pour into its, Research &
Development to innovate its existing products which should be beyond competitors
comprehension.
This study enables the user with answer to formulate an effective marketing
strategy with a broader prospective to tap areas where it did not feel the need
earlier, hence the decision of whether to penetrate this section or not can be found
out at the end of the data analysis.
It also gives an idea of the potential of our business in the future & the fluctuation
in prices from time to time & from product to product.
Special reference is made to the improvement of ability of product in terms of
packaging& product innovations & advertisement always means to cut down
competitors.
RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

INTRODUCTION
This chapter aims to understand the research methodology establishing a
framework of evaluation and revaluation of primary and secondary research. The
techniques and concepts used during primary research in order to arrive at
findings; which are also dealt with and lead to a logical deduction towards the
analysis and results

RESEARCH DESIGN
The research design applied here was exploratory research
Exploratory Research is one in we don‘t know about the problem, we have to find
about the problem and then work on solving the problem. Whereas in case of
descriptive research, we know the problem, we just have to find the solution to the
problem. Generally descriptive research design is applied after exploratory
research design.
Here after doing the secondary research, we found the general perception about the
retail baking but then in second phase we tried to figure out where the difference
lies and on what basis the banks differ from each other

RESEARCH TOOL
Research tool
The purpose is to first conduct a intensive secondary research to understand the
full impact and implication of the industry, to review and critique the industry
norms and reports, on which certain issues shall be selected, which remain
unanswered , this shall be further taken up in the next stage of secondary
research. This stage shall help to restrict and select only the important question
and issue, which inhabit growth and segmentation in the industry.

DATA COLLECTION:
Both primary and secondary data have been collected very vigorously
Secondary data: it is collected by the study of various reports. The reports
studied under secondary data. Primary Data was taken with questionnaire

THE RESEARCH REPORT

The report is the result of a survey which was undertaken in Lucknow city. The
objectives of the project has been fulfilled by getting response from the customer
associated to these segments through a personal interview in the form of a
questionnaire. The responses available through the questionnaire are used to
evaluate the Marketing strategy of Amul and the willingness of the customer to
purchase its products on future.
The project also covers an analysis of the switch over of customers to
competitors products in the market.

THE RESEARCH PROBLEM

The problem formulation is the first step to a successful Research
process. Project undertaken the problem of analyzing the Marketing strategies in
Amul
 THE RESEARCH OBJECTIVE

Based on the problem the objective of the research is divided into two
which are as follows:
Primary Objective:
 To study Marketing strategies of Amul.
Secondary Objective:
 Analyse customer satisfaction for different Amul products.
 Analyse the customer behaviour of Amul.

THE RESEARCH DESIGN

The research design used in the project is exploratory design. The

investigation is carried upon the customers in Lucknow city. The reason for
choosing this design is to get responses from the customers so that their buying
behaviour about the products of the company and their loyalty could be predicted.

THE DATA SOURCE

The data has been taken from two sources
 Primary data source
The primary data source has been collected through questionnaire by personally
interviewing each respondent on a number of queries structured in a questionnaire.
 Secondary data source
Secondary data was collected from following sources
Prior research reports
Websites
Books
Newspaper
Personal consultation

THE AREA OF WORK

The field work is conducted in the Lucknow city in various Places
like Mall, Showroom and retailers situated in different location all over the city.

THE SAMPLE SIZE

The sample size consists of 100 units out of which the most logical
and non biased response are selected thus the sample size is taken out to be 100
units.
DATA ANALYSIS
AND
INTERPRETATION
 DATA ANALYSIS AND INTERPRETATION
1. Do you like the idea of purchasing Amul products?

Yes 87
No 13

13%

87%

YesNo
INTERPRETATION
87% respondent said that they have idea of purchasing Amul products but 13% are not
2. Have you ever purchase product of Amul ?

Yes 77
No 23

INTERPRETATION

23%

77%

YesNo
77% respondent said that they have ever purchase product of Amul but 23% are not
3. What helps you to decide which product of Amul you purchase ?

TV Advertisement 23
Personal recommendation 36
Special offer 11
Radio advertising 17
News paper 7
Word of mouth 6

7% 6% 23%
17%

11%
36%

TV Advertisement Personal recommendation Radio advertising

Special offer News paperWord of mouth

INTERPRETATION
23% respondent said that they decide to purchase the product of Amul by TV advertisement, 36
personal recommendation, 11% special offer, 17% radio advertising, 7% from News paper and
6% word of mouth.
4. How frequently you see advertisement of Amul product ?
Weekly 27
Monthly 37
Daily 27
None 19

17% 25%

25%
33%

WeeklyMonthlydailyNone

INTERPRETATION
25% respondent said that they have see advertisement of Amul product weekly, 33% monthly,
25% daily, but 17% none.
5. For which one of the following purpose you visit in your product ?

Purchasing brand goods 57

Purchasing local goods 23
Only gathering information 11
Others 9

9%
11%

57%
23%

Purchasing brand goodsPurchasing local goods

Only gathering informationOthers

INTERPRETATION
57% respondent said that they have purpose to visit product purchasing brand goods, 23%
purchasing local goods, 11% only gathering information and 9% others.
6. What according to you are attractive features that buy Amul product ?

Quality 32
Economy 49
Taste 19

19%
32%

49%

QualityEconomyTaste

INTERPRETATION
32% respondent said that they have attractive features that buy Amul product Quality, 49%
Economy, 19% Taste.
7 Are you satisfy with Amul Product ?

Yes 91
No 9

INTERPRETATION
9%

91%

YesNo
91% respondent said that they satisfied buy 9% no.
8. Do according to you Amul‘s product have changed the way the marketing strategy towards
milk product ?

Yes 71
No 29

INTERPRETATION

29%

71%

YesNo
71% respondent said that Amul‘s product have changed the way the marketing strategy towards
milk product Yes but 29% said no.
9. Do you suggest Amul products to others
Yes 89
No 11

11%

89%

YesNo
INTERPRETATION
89% respondent said that they suggest Amul products to others yes but 11 said no.
10. How will you rate your present Amul product performance?
Poor 7
Satisfactory 23
Fair 27
Good 21
Very good 13
Excellent 9

9% 7%
13% 23%

21%
27%

PoorSatisfactoryFairGoodVery goodExcellent

INTERPRETATION
7% respondent said that they rate your present Amul product performance poor, 23%
satisfactory, 27% fair, 21% good, 13% very good, 9% excellent.
11. Which service provider are you using?

Amul 37
Parag 32
Gyan 23
Others 8

8%
Amul Parag Gyan
23% 37%
Others

32%

INTERPRETATION
37% respondent said that they were using Amul, 32% Parag, 23% Gyan and 8% others.
FINDINGS
 FINDINGS
 87% respondent said that they have idea of purchasing Amul products but 13% are not
 77% respondent said that they have ever purchase product of Amul but 23% are not
 23% respondent said that they decide to purchase the product of Amul by TV advertisement, 36
personal recommendation, 11% special offer, 17% radio advertising, 7% from News paper and 6% word
of mouth.
 25% respondent said that they have see advertisement of Amul product weekly, 33% monthly, 25%
daily, but 17% none.
 57% respondent said that they have purpose to visit product purchasing brand goods, 23% purchasing
local goods, 11% only gathering information and 9% others.
 32% respondent said that they have attractive features that buy Amul product Quality, 49%
Economy, 19% Taste.
 91% respondent said that they satisfied buy 9% no.
 71% respondent said that Amul‘s product have changed the way the marketing strategy towards
milk product Yes but 29% said no.
 89% respondent said that they suggest Amul products to others yes but 11 said no.
 7% respondent said that they rate your present Amul product performance poor, 23% satisfactory,
27% fair, 21% good, 13% very good, 9% excellent.
 37% respondent said that they were using Amul, 32% Parag, 23% Gyan and 8% others.
LIMITATION
 LIMITATION
Though, best efforts have been made to make the study fair, transparent and error free.
But there might be some inevitable and inherent limitations. Though outright measure are
undertaken to make the report most accurate.
The limitation of the survey are narrated below:
 The project is valid for Lucknow city only.
 It was not possible to cover each and every respondent due to time constrains.
 There may be some biased response form the respondents
 Some respondents did not provide the full data.
 Unwillingness on the part of the customers to disclose the information as per the questionnaire.
 The decisiveness on the part of the customers regarding some question hence difficulty faced
in recording and analyzing the data.
CONCLUSION
 CONCLUSION

The report comes to the following conclusion

 The customers of Amul are brand loyal with only a small percent want to shift over to other
brands. Trying of other brands by customers is mainly because the customer wants to try
something new.
 The performance of Amul is fair in comparison to Parag.
 Economy is the basic feature influencing to built brand Image.
 The competition of Amul is majorly Parag.
 Due to high brand loyalty the customers of Amul recommend its product to others.
 The customers are satisfied with the product range of Amul product.
 SUGGESTIONS
AND
RECOMMENDATION
 SUGGESTIONS AND RECOMMENDATION

The recommendations are

 The brand loyalty for more Amul can be increased if the Quality and appearance of the products
are given due attention because Parag has captured a major share of milk industry.

 The switch over of the customers can be prevented if more of new products are launched more
frequently like Parag which launches new products with slight variations from the previous.

 Quality are good but it still needs improvements.

QUESTIONNAIRE
 QUESTIONNAIRE

Q1) Do you like the idea of purchasing products Amul ?

( a) Yes ( b) No

Q2) Have you ever purchase product of Amul ?

( a) Yes ( b) No

Q3) What helps you to decide which product of Mobile you purchase?

( a) TV Advertisement ( b) Personal recommendation ( c) Special offer

( d) Radio advertising ( e) News paper ( f) Word of mouth

Q4) How frequently you made a purchase Amul product ?

( a) Weekly ( b) Monthly ( c) Quarterly ( d) None

 Q5) For which one of the following purpose you visit in your product

? ( a) Purchasing brand goods

(b) Purchasing local goods

(c) Only gathering information

(d) Others

Q6) What according to you are attractive features that buy Amul product

(a) Quality

(b) Economy

(c) taste

Q7) Are you satisfy with Amul Product ?

(a) Yes (b) No

Q8) Do according to you Amul product have changed the way

the marketing strategy towards milk ?

(a) Yes (b) No

Q9.Do you suggest Amul products to others

 Yes

 No
 Q10. How will you rate your present Amul performance?

 Poor

 Satisfactory

 Fair

 Good

 Very good

 Excellent

Q11. Which Brand of Mobile are you using?

 Amul

 Parag

 Gyan

 Others
BIBLIOGRAPHY
 BIBLIOGRAPHY

BOOKS AUTHORS

 Marketing Management : Philip Kotler

 Marketing Research : D. D. Sharma
 Research Methodology : C. R. Kothari
Websites
 www.amul.com
 www.google.com