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Consumer Buying Pattern Towards Amul Milk

1) Amul was established in 1955 as a dairy cooperative in Anand, Gujarat with the goal of providing fair prices to milk producers and stable supplies to customers. It began as a small cooperative of farmers in 1946. 2) Amul pioneered the cooperative model for dairy development in India, known as the "Anand Pattern," which empowered milk producers economically and gave them access to markets. 3) Amul has grown to become one of the largest food brands in India, marketing products nationwide. However, its core mission remains supporting dairy farmers through collective action.

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Ashwathi Sumitra
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0% found this document useful (0 votes)
359 views85 pages

Consumer Buying Pattern Towards Amul Milk

1) Amul was established in 1955 as a dairy cooperative in Anand, Gujarat with the goal of providing fair prices to milk producers and stable supplies to customers. It began as a small cooperative of farmers in 1946. 2) Amul pioneered the cooperative model for dairy development in India, known as the "Anand Pattern," which empowered milk producers economically and gave them access to markets. 3) Amul has grown to become one of the largest food brands in India, marketing products nationwide. However, its core mission remains supporting dairy farmers through collective action.

Uploaded by

Ashwathi Sumitra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Formate

Consumer buying pattern toward amul milk

A project Submitted to
University of Mumbai for partial of the degree of
Commerce

By
Shaikh Sabina

Under the Guidence of


Pooja Soni

Shri Rajasthani Seva Sangh’s


Smt. Parmeshwaridevi Durgadatt Tibrewala Lions Juhu College of Arts,
Commerce and Science
J.b Nagar, Nadheri (E), Mumbai-400059.

March 27,2020

1
Acknowledgment
(Model structure of the acknowledgement)

To list who all have helped me is difficult because they are so numerous and the depth is
so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would like to thank my Principal,………….for providing the necessary facilities required


for completion of this project.

I take this opportunity to thank our Coordinator…………………. for her moral support
and guidance.

I would also like to express my sincere gratitude towards my project guide………………


whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books
and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and Peers who supported me
throughout my project.

2
Declaration by learner
I the undersigned miss/ mr. Sabina shaikh here by declare that the work imbodied in this
project work titled
……………………………………………………………………………
Forms my own contribution to the research work carried out under the guidance of
………….is a result of my own research work and has not been previously submitted to
any other university for any other degree/ diploma to this or any other iniversity.
Wherever reference has been made to previous work of other, it hs been clearly
indicated as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Name and signature of the learner

Certified by

Name and signature of the guiding teacher

3
Certificate
This is to certify that Ms / Mr. has worked and duly completed her/his project work for the degree
of master in commerce under the faculty of commerce in the subject of …………..……. And her /
his project is entitled ,……………………….. under my supervision. I further certify that entire
work has been done by the learner under my guidance and that no part of it has been submitted
previously for any degree or diploma of any university.
It is her/his own work and facts reported by her/his personal findings and investigations.

Name and signature of


guiding teacher

Date of submission:

4
Evaluation pattern of the project work
The project report shall be evaluated in two stages viz.
• Evaluation of project report (bound copy) 60 marks

• Introduction and other areas covered 20 marks

• Research methodology , presentation, analysis and interpretation 30 marks


of data.

• Conclusion & recommendations 10 marks


• Conduct of viva-voce 40 marks
• In the cource of viva-voce the questions may be asked such as 10 marks
importance/ relevance of the study , objectives of the study,
methodology of the study, methodology of the study / mode of
enquiry (question responses)
• Ability to explain the analysis, findings, concluding observations, 20 marks
recommendation, limitations of the study
• Overall impression (including communication skill) 10 marks

Note:
The guiding teacher along with the external evaluator appointed by the university/ college
for the evaluation of project shall conduct the viva-voce examination as per the evaluation pattern.

Passing standards
• Minimum of grade E in the project component
• In case of failing in the project work, the same project can be revised for ATKT
examination.
Absence of student for viva voce: If any student fails to appear for the viva voce on the date and
time fixed by the department, such student shall appear for the viva voce on the date and time
fixed by the department, such student shall appear for the viva voce only along with students of
the next batch.

5
INDEX

SR. NO PARTICULER PG.NO

CHAPTER INTRODUCTION
NO 1
1.1 HISTORY 9-18

1.2 Achievement 19-21

1.3 Amul secret on success 22-26

1.4List of product marketed 27-30

1.5 Industry profile 31-32

1.6 Amul marketing strategy 33

1.7 Cooperatives and global dairy industry 34-43

1.8 Consumer behavior 44-46

1.9 Consumer satisfaction 47-48

CHAPTER PRIMARY AND SECONDARY DATA 49


NO 2
2.1 Marketing research 50-53

2.2 Research methodology 54-55

2.3 Source of data 56

2.4 Sampling design 57

2.5 Questionnaire 58-60

6
CHAPTER NO LITRATURE REVIEW 61-64
3

CHAPTER NO DATA ANALAYSIS AND INTERPRITATION 65


4

4.1 Data analysis 66-77

4.2 Swot analysis 78-79

CHAPTER NO CONCLUSION AND SUGGESTION 80


5

5.1 Conclusion 81

5.2 suggestion 82

BIBLOGRAPHY 83-84

7
LIST OF TABLE AND GRAPH

TABLE NAME OF TABLE AND GRAPH PAGE NO


NO

1 Analysis of which milk customer consume 66-67

2 Analysis of customer satisfied 68

3 Analysis of what customer like 69

4 Analysis of get milk pouch 70

5 Analysis of total consumption in a day 71

6 Analysis of monthly expenditure 72

7 Analysis of in pouch milk which brand do you prefer 72-73

8 Analysis of product price compare to 74

Competitors

9 Analysis of which pouch do you purchass 75

10 Analysis of rating toward amul milk 76-77

8
1.1HISTORY

In the year 1946 the first milk union was established. This union was started with 250 liters of
milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as
KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected
the brand name AMUL in 1955.

The brand name Amul means “AMULYA”. This word derived form the Sanskrit
word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had
suggested the brand name “AMUL”. Amul products have been in use in millions of homes since
1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul
Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made
Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a
symbol of many things like of the high-quality products sold at reasonable prices, of the genesis
of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy
of a farmers' organization. And have a proven model for dairy development (Generally known as
“ANAND PATTERN”).

In the early 40’s, the main sources of earning for the farmers of Kaira district was
farming and selling of milk. That time there was high demand for milk in Bombay. The main
supplier of the milk was Polson dairy limited, which was a privately owned company and held
monopoly over the supply of milk at Bombay from the Kaira district. This system leads to
exploitation of poor and illiterates’ farmers by the private traders. The traders used to beside the
prices of milk and the farmers were forced to accept it without uttering a single word.

9
10
These village societies would collect the milk themselves and would decide the prices at which
they can sell the milk. The district union was also form to collect the milk from such village co-
operative societies and to sell them. It was also resolved that the Government should be asked to
buy milk from the union.

However, the govt. did not seem to help farmers by any means. It gave the negative
response by turning down the demand for the milk. To respond to this action of govt., the farmers
of Kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the
traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of
Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to
fulfill the farmers demand.

Thus their cooperative unions were forced at the village and district level to collect and
sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien
showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who
lead the farmers in forming

the Co-operative unions at the village level. The Kaira district milk producers
union was thus established in ANAND and was registered formally on 14th December 1946. Since
farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell
the milk under the brand At the initial stage only 250 litres of milk was collected everyday. But
with the growing awareness of the benefits of the cooperativeness, the collection of milk increased.
Today Amul collect 11 lakhs litres of milk everyday. Since milk was a perishable commodity it
becomes difficult to preserve milk flora longer period. Besides when the milk was to be collected
from the far places, there was a fear of spoiling of milk. To overcome this problem the union
thought out to develop the chilling unit at various junctions, which would collect the milk and
could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling
centres in various villages. Milk is collected from almost 1073 societies.

With the financial help from UNICEF, assistance from the govt. of New Zealand
under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter
was planned. Dr.Rajendra Prasad, the president of India laid the foundation on November 15,
1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy
on November 20, 1955.

11
GCMMF 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.

Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the largest


Organisation in FMCG industry engaged in marketing of milk & milk products under
the brand names of AMUL and SAGAR with an annual turnover exceeding Rs 5000
crores.

GCMMF is a unique organisation. It's a body created by Farmers, managed


by competent professionals serving a very competitive and challenging consumer
market. It is a true testimony of synergistic national development through the practice
of modern management methods.

GCMMF will be an outstanding marketing organization, with specialization in


marketing of food and dairy products both fresh and long life with customer focus and
IT integrated. The network would consist of over 100 offices, 7500 stockiest covering
at least every
Taluka. Head quarter servicing nearly 10 lakh outlets with a turnover of Rs.10,000 Cr
and serving several co-operatives. GCMMF shall also create markets for its products
in neighbouring countries.

12
The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest food
products marketing organisation of India. It is the apex organization of the Dairy Cooperatives of
Gujarat. This State has been a pioneer in organizing dairy cooperatives and our success has not
only been emulated in India but serves as a model for rest of the World. Over the last five and a
half decades, Dairy Cooperatives in Gujarat have created an economic network that links more
than 2.8 million village milk producers with millions of consumers in India and abroad through a
cooperative system that includes 13,141 Village Dairy Cooperative Societies (VDCS) at the
village level, affiliated to 13 District Cooperative Milk Producers’ Unions at the District level and
GCMMF at the State level. These cooperatives collect on an average 7.5 million litres of milk per
day from their producer members, more than 70% of whom are small, marginal farmers and
landless labourers and include a sizeable population of tribal folk and people belonging to the
scheduled castes.

The turnover of GCMMF (AMUL) during 2008-09 was Rs. 67.11 billion. It markets the products,
produced by the district milk unions in 30 dairy plants, under the renowned AMUL brand name.
The combined processing capacity of these plants is 11.6 million litres per day, with four dairy
plants having processing capacity in excess of 1 million Litres per day. The farmers of Gujarat
own the largest state of the art dairy plant in Asia – Mother Dairy, Gandhinagar, Gujarat – which
can handle 2.5 million litres of milk per day and process 100 MTs of milk powder daily. During
the last year, 3.1 billion litres of milk was collected by Member Unions of GCMMF. Huge
capacities for milk drying, product manufacture and cattle feed manufacture have been installed.
All its products are manufactured under the most hygienic conditions. All dairy plants of the
unions are ISO 9001-2000, ISO 22000 and HACCP certified. GCMMF (AMUL)’s Total Quality
Management ensures the quality of products right from the starting point (milk producer) through
the value chain until it reaches the consumer

13
Ever since the movement was launched fifty-five years ago, Gujarat’s Dairy Cooperatives have
brought about a significant social and economic change to our rural people. The Dairy
Cooperatives have helped in ending the exploitation of farmers and demonstrated that when our
rural producers benefit, the community and nation benefits as well.

The Gujarat Cooperative Milk Marketing Federation Ltd. cannot be viewed simply as a business
enterprise. It is an institution created by the milk producers themselves to primarily safeguard
their interest economically, socially as well as democratically. Business houses create profit in
order to distribute it to the shareholders. In the case of GCMMF the surplus is ploughed back to
farmers through the District Unions as well as the village societies. This circulation of capital
with value addition within the structure not only benefits the final beneficiary – the farmer – but
eventually contributes to the development of the village community. This is the most significant
contribution the Amul Model cooperatives has made in building the Nation.

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

14
Programme, it is known as the ‘Amul Model’ or ‘Anand Pattern’ of Dairy Cooperatives.

Responsible for Marketing of Milk & Milk Products Responsible for Procurement
& Processing of Milk Responsible for Collection of Milk Responsible for Milk Production.

Village Dairy Cooperative Society (VDCS)


The milk producers of a village, having surplus milk after own consumption, come together and
form a Village Dairy Cooperative Society (VDCS). The Village Dairy Cooperative is the primary
society under the three-tier structure. It has membership of milk producers of the village and is
governed by an elected Management Committee consisting of 9 to 12 elected representatives of
the milk producers based on the principle of one member, one vote. The village society further
appoints a Secretary (a paid employee and member secretary of the Management Committee) for
management of the day-to-day functions. It also employs various people for assisting the
Secretary in accomplishing his / her daily duties. The main functions of the VDCS are as follows:

Collection of surplus milk from the milk producers of the village & payment based on
quality & quantity
Providing support services to the members like Veterinary First Aid, Artificial
Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales,
conducting training on Animal Husbandry & Dairying, etc.
Selling liquid milk for local consumers of the village

Supplying milk to the District Milk Union

Thus, the VDCS in an independent entity managed locally by the milk producers and assisted
by the District Milk Union.

15
District Cooperative Milk Producers’ Union (Milk Union)

The Village Societies of a District (ranging from 75 to 1653 per Milk Union in Gujarat) having
surplus milk after local sales come together and form a District Milk Union. The Milk Union is
the second tier under the three-tier structure. It has membership of Village Dairy Societies of the
District and is governed by a Board of Directors consisting of 9 to 18 elected representatives of
the Village Societies. The Milk Union further appoints a professional Managing Director (paid
employee and member secretary of the Board) for management of the day- to- day functions. It
also employs various people for assisting the Managing Director in accomplishing his / her daily
duties. The main functions of the Milk Union are as follows:

Procurement of milk from the Village Dairy Societies of the District Arranging
transportation of raw milk from the VDCS to the Milk Union.
Providing input services to the producers like Veterinary Care, Artificial Insemination
services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, etc.
Conducting training on Cooperative Development, Animal Husbandry & Dairying for
milk producers and conducting specialised skill development & Leadership Development
training for VDCS staff & Management Committee members.
Providing management support to the VDCS along with regular supervision of its
activities.
Establish Chilling Centres & Dairy Plants for processing the milk received from the
villages.
Selling liquid milk & milk products within the District

Process milk into various milk & milk products as per the requirement of State
Marketing Federation.
Decide on the prices of milk to be paid to milk producers as well on the prices of support
services provided to members.

16
State Cooperative Milk Federation (Federation)

The Milk Unions of a State are federated into a State Cooperative Milk Federation. The
Federation is the apex tier under the three-tier structure. It has membership of all the cooperative
Milk Unions of the State and is governed by a Board of Directors consisting of one elected
representative of each Milk Union. The State Federation further appoints a Managing Director
(paid employee and member secretary of the Board) for management of the day-to-day functions.
It also employs various people for assisting the Managing Director in accomplishing his daily
duties. The main functions of the Federation are as follows:

Marketing of milk & milk products processed / manufactured by Milk Unions.


Establish distribution network for marketing of milk & milk products.

Arranging transportation of milk & milk products from the Milk Unions to the market.
Creating & maintaining a brand for marketing of milk & milk products (brand building).
Providing support services to the Milk Unions & members like Technical Inputs,
management support & 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 & milk products to be paid to Milk Unions.

Decide on the products to be manufactured at various Milk Unions (product-mix) and capacity
required for the same.
Conduct long-term Milk Production, Procurement & Processing as well as Marketing Planning.
Arranging Finance for the Milk Unions and providing them technical know-how.
Designing & Providing training on Cooperative Development, Technical & Marketing
functions.
Conflict Resolution & keeping the entire structure intact.

We move to the year 2008. The dairy industry in India and particularly in the State of Gujarat looks
very different. India for one has emerged as the largest milk producing country in the World.
Gujarat has emerged as the most successful State in terms of milk and milk product production
through its cooperative dairy movement. The Kaira District Cooperative Milk Producers’ Union
Limited, Anand has become the focal point of dairy development in the entire region and AMUL
has emerged as one of the most recognized brands in India, ahead of many international brands.
Today, we have around 176 cooperative dairy Unions formed by 1,25,000 dairy cooperative
societies having a total membership of around 13 million farmers on the same pattern, who are

17
processing and marketing milk and milk products profitably, be it Amul in Gujarat or Verka in
Punjab, Vijaya in Andhra Pradesh or a Nandini in Karnataka. This entire 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 kgs. of milk per day and
pay an aggregate amount of more than Rs.125 billion to the milk producers in a year.

18
1.2ACHIVEMENT
Amul : Asia’s largest dairy co-operative was created way back in1946 to make the
milk producer self-reliant and conduct milk- business with pride. Amul has always been the
trend setter in bringing and adapting the most modern technology to door steps to rural
farmers.
Amul created history in following areas:

a) First self motivated and autonomous farmers‟ organization comprising of more than
5000000 marginal milk producers of Kaira District.
b) Created Dairy co-operatives at village level functioning with milk collection
centres owned by them.
c) Computerized milk collection system with electronic scale and
computerized accounting system.
d) The first and only organization in world to get ISO 9000 standard for its farmer’s
co-operatives.
e) First to produce milk from powder from surplus milk.
Amul is the live example of how co-operation amongst the poor marginal farmers
can provide means for the socio-economic development of the under privileged marginal
farmers

19
AWARDS
Amul a co-operative society and its co-operation has led many different awards in
its favor.

Magsaysay award for community leadership presented in manila, Philippines to


Shri Tribhuvandas Patel, Shri D N Khurody and Shri V. Kurien

1964: “Padmabhusan” award given to Shri T.K. Patel

1965: “Padmshri awarded was given to V. Kurien, general manage by the


president of India

1987: “Best Productivity” awarded by national productivity council for the year
1985-86 awarded to Amul dairy.

1988: “Best Productivity” awarded for the second successive year 1986-
87 by the president of India, Mr. R. Venkatrao to kaira union.

1993: “ICA” Memenoto towards genuine and self sustaining co-operative


worldwide ICA regional office for Asia and pacific, New Delhi, 1996.

1999: G.B.Birla award.

Moreover the Amul union has achieved the prestigious ISO 9001-2000 and
HACCP Certificate and effects are got to obtain ISO 14000.

20
• Amul in abroad:
Amul is going places. Literally. After having established its presence in China, Mauritius and
Hong Kong, Gujarat Cooperative Milk Marketing Federation

(GCMMF), India‟s largest milk cooperative, is waiting to flood the Japanese market.
Then, GCMMF is also looking at Sri Lanka as one of its next export destinations. Amul products
are already available on shelves across several countries, including the US, China, Australia,
West Asian countries and Africa.
GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include pouch milk,
ultra heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk.

21
1.3 AMUL'SS SECRET OF SUCCESS
The system succeeded mainly because it provides an assured market at
remunerative prices for producers' milk besides acting as a channel to market the
production enhancement package. What's more, it does not disturb the agro-system of
the farmers. It also enables the consumer an access to high quality milk and milk
products. Contrary to the traditional system, when the profit of the business was
cornered by the middlemen, the system ensured that the profit goes to the participants
for their socio-economic upliftment and common good.

Looking back on the path traversed by Amul, the following features make it a
pattern and model for emulation elsewhere.

Amul has been able to:

Produce an appropriate blend of the policy makers farmers board of


management and the professionals: each group appreciating its rotes and
limitations.

Bring at the command of the rural milk producers the best of the technology and harness its
fruit for betterment.

Provide a support system to the milk producers without disturbing their agro-economic systems.

22
Plough back the profits, by prudent use of men, material and machines, in the rural sector
for the
common good and betterment of the member producers

Even though, growing with time and on scale, it has remained with the
smallest producer members. In that sense, Amul is an example par excellence,
of an intervention for rural change.

The Union looks after policy formulation, processing and marketing of milk,
provision of technical inputs to enhance milk yield of animals, the artificial
insemination service, veterinary care, better feeds and the like - all through the village
societies. Basically the union and cooperation of people brought Amul into fame i.e.
AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE
OF INDIA.

Amul (Anand milk union ltd.) is based on four hands, which are coordinated
with each other. The actual meaning of this symbol is co-ordination of four hands of
different people by whom this
union is at the top position in Asia.

First hand is of farmers, without whom the organization would not have existed.

Second hand is of processors, who process the row material (milk) into finished
goods.

Third hand is of marketer, without whom the product would have not reached the
customers.

Fourth hand is of customers, without whom the products would have not carried on.
of the farmers. It also enables the consumer an access to high quality milk and milk products.
Contrary to the traditional system, when the profit of the business was cornered by the
middlemen, the system ensured that the profit goes to the participants for their socio-economic
upliftment and common good.

Looking back on the path traversed by Amul, the following features make it a pattern and model
for emulation elsewhere.

23
Amul has been able to:

• Produce an appropriate blend of the policy makers farmers board of management


and the professionals: each group appreciating its rotes and limitations,
• Bring at the command of the rural milk producers the best of the technology and
harness its fruit for betterment.
• Provide a support system to the milk producers without disturbing their agro-
economic systems,
• Plough back the profits, by prudent use of men, material and machines, in the rural
sector for the common good and betterment of the member producer

The Union looks after policy formulation, processing and marketing of milk, provision of
technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary
care, better feeds and the like - all through the village societies. Basically the union and
cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION
LIMITED), a name which suggest THE TASTE OF INDIA.

Plants:

First plant is at ANAND,which engaged in the manufacturing of milk, butter, ghee, milk
powder, flavoured milk and buttermilk.

24
Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul
Ganthia and Amul lite.

Third plant is at Kanjari, which produces cattelfeed

25
Fourth plant is at Khatraj, which engaged in producing cheese.

Today, twelve dairies are producing different products under the brand name Amul. Today
Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for
Gujarat and whole India.

26
1.4 list of product 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
Pure Ghee

• Amul Pure Ghee


• Sagar Pure Ghee
• Amul Cow Ghee

27
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

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 Whitener
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

Sweetened Condensed Milk

Amul Mithaimate Sweetened Condensed Milk


28
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,
BlackCurrant)
• 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)
• Health Isabcool

Chocolate & Confectionery


• Amul Milk Chocolate
• Amul Fruit & Nut Chocolate
29
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

30
• 1.5 Industry profile
The World Dairy Situation:

According to a report published by International Dairy Federation (IDF) on the World


Dairy Situation 2007 the worldwide milk production is expected to grow at a slower
pace in 2007-08 and is estimated at 655 million tonnes, only 9 million tonnes more
than the production of 2006
– 2007. The strongest growth would be in Asia, notably in China and India. Milk
production is projected at36 million tonnes in China and 94.60 million tonnes in India.
India would continue to be the largest milk producer, followed by the US, with
projected production of 82.60 million tonnes.

Major changes are not expected in dairy products basket. World butter production
increased for two years, in 2004 and 2005 and then declined in 2006-07. It is
expected to decline again in
2007-08. Industrial cheese production is continuing to grow. The major cheese
producing regions are Europe and North America and both areas are expected to
have a faster growth rate.
The production of condensed and evaporated milks is subject to a declining trend for
many years in the developed market. It has been replaced by many other dairy
products, especially liquid milks of UHT type, coffee cream and coffee whitener
including some of the non-dairy origin.

World trade in dairy products after a period of relative stagnation, started recovery in
the second half of 2006-07 and it continued in the first half of 2007-08. The recovery
is due to prosperity resulting from economic demand. However, the bullish price
situation is not likely to continue long and would level down.

Export of butter and butter-oil recovered in 2006-07 and this recovery continued in early2007-08.
The total volume of the world trade in cheese has accelerated and this trend is likely to continue
in the year 2008.

.
31
India’s dairy sector is expected to triple its production in the next 10 years in veiw of
expanding potential for export to Europe and the West. Morever with WTO
regulations expected to come into force in coming years all the develope countries
which are amoung big exporters today would have to withdraw the support and
subsidy to their domestic milk product sector. Also India today is the lowest cost
producer of per litre of milk in the world, at 27 cents, compared with the US’

63 cent. Also to take advantage of this lowest cost of milk production and increasing
production in yhe country multinational companies are planning to expand their
activities here. Some of those milk producers have already obtained quality standard
certificates from the authorities. This will help them in marketing their products in
foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of around
33% per annum to around Rs.83, 500 crores by year 2010.

This growth is going to come from the greater emphasis on the processed food sector
and also by increase in the conversation of milk into milk products. By 2010, the
value of Indian dairy produce is expected to be Rs 10, 00,000 million.Presently the
market is valued at around Rs7, 00,000mn.

32
1.6 Amul’s marketing strategy

The Brand: As they promote all their products under one common brand name – Amul, it allows
to gain more brand visibility and results in lesser marketing and advertising costs. Having a top of
the mind positioning, excellent supply chain channels, Amazing product line, and the low pricing
strategy have all helped the brand grow.

• Product Portfolio: Amul has a diversified product portfolio and has been able to cater to
the needs of all the segments from kids to old alike. The list of products which Amul
contains are: Amul Milk, Amul Taaza, Amul slim trim milk etc, Bread spreads (Amul
butter, Amul Lite, delicious table margarine, unsalted butter, garlic butter), Amul Cheese,
UHT milk, Amul Beverages (Amul kool flavoured milk, Amul masti buttermilk), Amul Ice
cream, Paneer, Dahi, Ghee, Amul chocolates, fresh cream, pouch buttermilk.

• Innovation: Amul has always been known for coming up with new innovative products for
different customer segments. For its continuous innovation, the brand won the “CNN-IBN
Innovating for Better Tomorrow Award” and “World Dairy Innovation Award” in the year
2014. The three-tiered Amul Model helped the cooperative to change from its traditional
methods to more efficiently functioning one.

• Pricing Strategy: Amul always catered to the needs of all economic segments without any
compromise on their product quality. Products that cover a huge market segment and are
used on the daily basis like milk, ghee, ice-cream, cheese, butter are tried and provided at
rates lesser than that of their competitors. With the rise in the Indian economy,
transportation cost, storage cost, labor cost etc have piled up but still, Amul provides quality
products at a fair and affordable price in comparison to its competitors, thus emerging as the
most preferred brand.

• Efficient Supply Chain Management: The Amul model is a three-tier cooperative


structure which consists of a dairy cooperative society at the village level that is affiliated
with milk unions at the district level which in turn is federated to a milk federation at the
state level. Milk is collected at the village dairy society, procured and processed at the
district milk union and marketed at the state milk federation. The model was found to be so
amazing that Dr. Verghese Kurien was asked to replicate this model all over the country
under Operation Flood in the 1970’s as this model had the efficiency and swiftness in its
operations. The Amul model has helped India become the largest milk producer in the
world.

• Advertising Campaign: Amul has been awarded the Guinness World Record for the
longest running advertisement campaign. The Amul girl- a cartoon figure, is used by the
company to promote their brand. Amul generally uses the current news scenario with a bit
of sarcasm and wit for their promotion which usually connects with the audience well.
Amul’s Utterly Butterly girl has managed to keep her fan following intact and on 17
October 2016, celebrated 50 years from when she first appeared in the topical ad titled
“Thoroughbread”.

33
1.7 Cooperatives and the Global Dairy Industry

Three broad questions have intrigued researchers and practitioners on cooperatives3: what are the
objectives of cooperatives, what determines the success and failure of cooperatives and how do
cooperatives act as organizations of social and economic change. While most of the observations
are based on normative judgments of what the cooperatives are supposed to do, some studies
reflect the true behavior of agents within a cooperative framework thereby making the debate on
cooperatives more complex but also interesting. To these themes we add another question that
reflects in some ways our own enquiry through this paper: are mechanisms of cooperation that
cooperatives employ any different from those used by other industrial organizations?
Traditionally, cooperatives have been established to serve the needs of its members in
order to maximize their returns. Governments have usually seen these organizations as effective
mechanisms for delivering their own programmes (e.g., sector development or poverty reduction,
etc.). Researchers have looked at cooperatives as channels for re-distributing wealth, improving
the opportunities for the weaker sections of the society, alternative institutions for property
ownership, efforts in democratic and participative governance of organizations4 etc. (this
discussion draws from Shah, 1995). In that, the cooperatives have often sought protection of sorts
from uncertainties in the market place. Globally, modern day cooperatives are agglomeration of
many such small groupings that serve some of the above objectives but have now moved from
being protected entities to becoming market driven. This makes such cooperatives an interesting
organizational alternative to traditional business enterprises (i.e., investor owned firms) in terms
of concern for shareholders, distributional effectiveness and ability to provide product/service
variety5.
toorganize marginal producers thereby providing scale effects network of such producers.
Sometimes, it is the government that organizes these marginal producers and may also manage the
collective

[as invarious cooperatives in former Soviet Union and Africa]. On other occasionIn emerging
economies, cooperatives have been used as institutions
s, producers themselves come together to produce and distribute their own products (as in the case
of AMUL, majority of cooperatives in North America etc6.). While control and subsidies from the
government distort the performance of former, producer-driven cooperatives have to develop
systems and processes that respond to market requirements and be competitive. In that, the
determinants of success for this kind of cooperatives are no different from those of other
34
commercial organizations. Moreover, they recognize that in order to optimize the objective
function of the marginal producers, they have to serve the market very effectively7. Cooperatives
are, however, different from other commercial organizations in one respect – they are bound to
serve the suppliers (i.e., the producers of goods & services who happen to be the members of the
cooperatives) in good and bad times. In that, they present an interesting model to other
commercial organizations on strategic management of resources and their conservation.

Globally, cooperatives have played the role of preventing market failures for small

producers especially in the dairy industry8. Traditionally, a large number of these

cooperatives have had small membership and produced predominantly raw products

(i.e., fluid milk) or products with some value addition (i.e., dry powder, butter etc.).

This situation has been changing dramatically in the last decade and especially in

the last three years. There has been a spate of mergers all around the world to createfewer but
larger dairy cooperatives. In many cases, these cooperatives look very
different from the merged entities. Cooperative dairies that operate with small membership have

retained a certain focus (i.e., geographical or product related) in their offerings9. There have been

several factors driving the restructuring of the dairy business (which has chiefly been organized

around cooperative principles). These include efficiencies in managing fewer large plants versus a

number of under-utilized small plants, need for more milk supply (and declining membership),

need to offer wide variety, improvements in trucking & milk handling thereby facilitating long

hauls, opening of new international markets (also markets for new products), seeking marketing

clout and need to bring investment from outside the cooperatives. In USA, for instance, there

were 592 cooperatives (with a membership of 281,065 producers) that marketed milk to plants

and handlers in 1973. This number reduced to 226 (with 87,938 members) in 1997. However, the

share of milk delivered by the cooperatives increased by 9 percent during this period though the

share of dairy sales of small cooperatives reduced from 43.8 percent in 1975 to about 30 per cent

in 1998 (Blayney and Manchester, 2000)10. The two largest dairy cooperatives in the US, Dairy

35
Farmers of America and Land O’Lakes had annual sales of US$ 7.9 and 5.1 billion

respectively11.

Dairy Farmers of America was formed by the merger of four large cooperatives in the US in 1998.
It consists of 25,499 members across 45 states of USA12. Consolidation in cooperatives during the
last five years was also in anticipation of (and reaction to) the consolidated Federal Milk
Marketing Order of 2000 which removed geographical anomalies in minimum support prices for
dairy products hence reduced the need to locate spatially distributed processing centers to take
advantage of varying prices. It helped dairy cooperatives to forge alliances with firms in various
regions.

European (and especially Scandinavian) dairy cooperatives have also seen tremendous
consolidation. Danish cooperatives, mostly producers’ cooperatives, have often faced difficulties
in raising capital internally for investment (though government support has been quite strong on
this count) and have been re-structuring since mid-70s (Hansen et al. 1980). Dairy coops in
Denmark have reduced to 45 units in 2002 from 1500 in 1930s with one large dairy processing 90
per cent of the available milk. The Danish Dairy Board, however, invests in R&D, allots quota for
milk supply to individual farms, regulates prices and quality, and supports the efforts of the
cooperatives in international markets. It believes that its competition is from dairies outside
Denmark13. Similar has been the experience of dairy farmers in other parts of Europe with a
higher involvement of government in reshaping the structure of the industry. Many Irish
cooperatives have, however, converted to non-cooperative forms (Hamm, 2001). Outside Europe
and USA, the experience of dairy cooperatives in New Zealand is instructive. The New Zealand
Dairy Board (NZDB) zealously guards the structure of the industry, which had an annual
worldwide sale of NZ$3.5 billion in 1996. Dairy cooperatives collect milk from individual
farmers and sell processed products in the domestic markets and to NZDB for exports14. Akoorie
and Scott-Kennel (1999) argue that this structure looks more like strategic partnership between
producers and the board (the global marketing arm) with the later providing capital for growth and
innovation. Interestingly, the form that a producing organization should take and the relationship
that it should have with its marketing has been the center of debate in managing dairy
cooperatives. AMUL in India has learnt from many of these experiences and has been influenced
by practices in dairies around the world especially in its formative years. .

36
in the region of the cooperative, the sociology of cooperation, interface of the dairy cooperative
and the rural power structure, relation of the State and the Cooperative and the role of government
in its growth (interestingly, AMUL has successfully managed to exercise its independence from
the government unlike other cooperatives in India), elements & replicability of the cooperative
movement at Anand, cost effectiveness of subsidies to AMUL (in its initial years) etc.15
A few studies have evaluated the operational effectiveness of the operations at AMUL16. Studies
have reported usage of mobile veterinary dispensaries, wireless sets to link mobile units to service
centers as early 1951, developing a programme of cross breeding of cows in early 1970s etc. that
have led to a phenomenal rise in productivity of milk (Patel, 1988)

We have, however, not come across any research paper or study that looks at the entire supply
chain to understand the role of managerial practices in achieving its objectives successfully. There
have been no studies that look at managerial practices, efficiency and performance of
cooperatives either. We now present, how
AMUL developed a robust organization based on sound values and commercial.

37
Leadership

While Kaira Union (or AMUL) had the support of national leaders who were at the forefront of
the Indian independence movement, its local leaders were trained in Gandhian simplicity17 and
had their feet rooted firmly amongst people whom they had mobilized – the poor farmers of
Anand. The foremost amongst them was Tribhuvandas Patel18 who had led the movement for the
formation of cooperatives of small and marginal farmers in order to compete against investor
owned enterprises on one hand, and keep bureaucracy away on the other hand. Tribhuvandas was
the first Chairman of the cooperative. His skills lay in organizing the village producers, in making
them believe in the power of cooperation and their rights towards improvement of human
condition. He is remembered as fair and honest person whose highest sense of accountability to
the members of the union laid the foundation of trust between network members19. Another
important aspect of his remarkable management style was his gentleness and ability to repose
trust in people – he gave complete autonomy to managers of the union and earned complete
commitment from them20. Verghese Kurien21 was one such manager who would, first, shape the
destiny of the Union and then the milk movement throughout the country.

38
Kurien emerged as the father of the dairy movement in India. He managed to keep the
government and bureaucrats away from the cooperative22 and gave shape to the modern structure
of the cooperative, worked tirelessly to establish the values of modern economics, technology and
concern for farmers within the cooperative. He interfaced with global financing agencies to build
new projects at AMUL. He worked with the Unions to bring the best of technology to the plants.
He worked with marginal village farmers to create systems that would increase milk yields. He
understood that without meeting the needs of customers he would not be able to satisfy his
obligations to the farmers. In short, Kurien shaped the destiny of the milk movement in India
through NDDB (as its Chairman) and particularly at GCMMF and cooperatives in Gujarat. He
helped build a modern organization with professional management systems that would support the
aspirations of farmers and customers.

Several young people left better paying jobs to help create a dream of making India the
milk capital of the world. Kurien had learnt the persuasive charm of Tribhuvandas through plain
speaking and had soon created a cadre of highly capable managers to whom he had delegated
both management as well as commitment. These leaders were created at the village, district and
state levels in different organizations of the network.

He was charismatic in his communication and committed in his effort. Over a period of
time, he developed a very close link with the poor farmers who, as he always says, “were his
employers” at the cooperative. He would travel through the villages along with Tribhuvandas and
work out the details of how the milk collection cooperative would work, how trucks would pickup
milk from village
societies, how the cattle would have to be taken care of and how all of this would help the poor
milk farmer come out of poverty and the clutches of the middleman. Operational details were
meticulously planned and executed. And then, he along with two of his close associates would
work on the design of the dairy plant including conducting experiments to create powder out of
buffalo milk – a task that was ridiculed by all who heard of it including the international aid
agencies in the dairy industry
. Tribhuvandas and Kurien were able to convince the government also of the value of his efforts
and secured funding for several projects of the cooperative. He was slowly laying the foundation
of a modern dairy industry in India. Membership of the cooperative started to increase,
professional managers started to join AMUL and production capacity at AMUL started to expand
(and this expansion was done through innovative changes to processes at the plant and through

39
equipment designed and fabricated in-house). Kurien had transformed AMUL from a dream into a
major industrial entity – a network of plants, cooperative societies, research centers, an institute
for training future managers in rural management, secondary services like veterinary/artificial
insemination expertise/feed factory etc. Kurien’s biggest strength lay in his ability to convince
people that the cause of rural farmers was important thus establishing an important shared value.
Subsequently,

40
could convince the government to replicate the AMUL model in almost all states of the country

Strategy
AMUL’s business strategy is driven by its twin objectives of (i) long-term, sustainable
growth to its member farmers, and (ii) value proposition to a large customer base by providing
milk and other dairy products a low price. Its strategy, which evolved over time, comprises of
elements described below.
Simultaneous Development of Suppliers and Customers: From the very early stages
of the formation of AMUL, the cooperative realized that sustained growth for the long-term was
contingent on matching supply and demand. Further, given the primitive state of the market and
the suppliers of milk, their development in a synchronous manner was critical for the continued
growth of the industry. The organization also recognized that in view of the poor infrastructure in
India, such development could not be left to market forces and proactive interventions were
required. Accordingly, AMUL and GCMMF adopted a number of strategies to assure such
growth. For example, at the time AMUL was formed, the vast majority of consumers had limited
purchasing power and was value conscious with very low levels of consumption of milk and other
dairy products. Thus, AMUL adopted a low price strategy to make their products affordable and
guarantee value to the consumer. The success of this strategy is well recognized and remains the
main plank of AMUL's strategy even today. The choice of product mix and the sequence in which
AMUL introduced its products is consistent with this philosophy. Beginning with liquid milk, the
product mix was enhanced slowly by progressive addition of higher value products while
maintaining desired growth in existing products. Even today, while competing in the market for
high value dairy products, GCMMF ensures that adequate supplies of low value products are
maintained.

On the supply side, as mentioned earlier, the member-suppliers were typically small and
marginal- farmers had severe liquidity problems, were illiterate and had no prior training in dairy
farming. AMUL and other cooperative Unions adopted a number of strategies to develop the
supply of milk and assure steady growth. First, for the short term, the procurement prices were set
so as to provide fair and reasonable return. Second, aware of the liquidity problems, cash
payments for milk supply was made with minimum of delay. For the long-term, the Unions
followed a multi-pronged
strategy of education and support. For example, only part of the surplus generated by the Unions
is paid to the members in the form of dividends. A substantial part of this surplus is used for

41
activities that promote growth of milk supply and improve yields. These include provision of
veterinary services, support for cold storage facilities at the village societies etc. In parallel, the
Unions have put in place a number of initiatives to help educate the members.

To summarize, the dual strategy of simultaneous development of the market and member
farmers has resulted in parallel growth of demand and supply at a steady pace and in turn assured
the growth of the industry over an extended period of time.
Cost Leadership: AMUL’s objective of providing a value proposition to a large customer base led
naturally to a choice of cost leadership position. Given the low purchasing power of the Indian
consumer and the marginal discretionary spending power, the only viable option for AMUL was
to price its products as low as possible. This in turn led to a focus on costs and had significant
implications for managing its operations and supply chain practices (described later).
Focus on Core Activities: In view of its small beginnings and limited resources, it became clear
fairly early that AMUL would not be in a position to be an integrated player from milk production
to delivery to the consumer23. Accordingly, it chose a strategy to focus on core dairy activities and
rely on third parties for other complementary needs. This philosophy is reflected in almost all
phases of AMUL network spanning R&D, production, collection, processing, marketing,
distribution, retailing etc. For example, AMUL focused on processing of liquid milk and
conversion to variety of dairy products and associated research and development. On the other
hand, logistics of milk collection and distribution of products to customers was managed through
third parties.

42
However, it played a proactive role in making support services available to its members
wherever it found that markets for such services were not developed. For example, in the initial
stages, its small and marginal member farmers did not have access to finance, veterinary service,
knowledge of basic animal husbandry etc. Thus to assure continued growth in milk production
and supply, AMUL actively sought and worked with partners to provide these required services.
In cases where such partnerships could not be established, AMUL developed the necessary
capabilities and provided the services. These aspects are elaborated later in this section.

These include logistics of milk collection, distribution of dairy products, sale of products through
dealers and retail stores, some veterinary services etc. It is worth noting that a number of these
third parties are not in the organized sector, and many are not professionally managed. Hence,
while third parties perform the activities, the Unions and GCMMF have developed a number of
mechanisms to retain control and assure quality and timely deliveries (see the sub-section on
Coordination for Competitiveness later in the paper for more details). This is particularly critical
for a perishable product such as liquid milk.

Financial Strategy: AMUL’s finance strategy is driven primarily by its desire to be self-reliant
and thus depend on internally generated resources for funding its growth and development. This
choice was motivated by the relatively underdeveloped financial markets with limited access to
funds, and the reluctance to depend on Government support and thus be obliged to cede control to
bureaucracy. AMUL’s financial strategy may thus be characterized by two elements: (a) retention
of surplus to fund growth and development, and (b) limited/ no credit, i.e., all
transactions are essentially cash only. For example, payment for milk procured by village
societies is in cash and within 12 hours of procurement (most, however, pay at the same time as
the receipt of milk). Similarly, no dispatches of finished products are made without advance
payment from distributors etc. This was particularly important, given the limited liquidity position
of farmer/suppliers and the absence of banking facilities in rural India. This strategy strongly
helped AMUL implement its own vision of growth and development. It is important to mention
that many of the above approaches were at variance with industry practices of both domestic and
MNC competitors of AMUL.

43
-

1.8CONSUMER BEHAVIOUR

It is defined as all psychological, social and physical behavior of potential customers as they
become aware, evaluate, purchase, consume, and tell to others about product and services.

Buying behavior involves both individual ( psychological) and group process. Buyer
behavior is reflected from awareness right through post purchase evaluation
indicating satisfaction and non satisfaction , from purchaser
Buyer behavior includes communication, purchasing and consumption behavior Consumer
behavior is basically social in nature hence the social factors play important roles in shaping
buying behavior Buyer behavior includes both customer and industrial behavior.

“Hence consumer behavior is an orderly process whereby the consumer interacts with

the environment for making a purchase decision on products “

44
CONSUMER BEHAVIOR AND MARKETING MANAGEMENT

Marketing managements work around consumers which is actually the market for them

Understanding their behavior is very vital in every segment to plan marketing activities
accordingly.

Both industrial and individual customers are vital in marketing


management

DIVERSITY OF CONSUMER BEHAVIOR:-

customer and consumer words are referred as synonyms but the difference exists
customer - the purchaser of product or service , may or may not be the end user consumer- the
end user , may or may not be the purchaserzNew age of business demands differentiation of
customers by individual differences in consumer expectations, preferences and influences.

Firms need to go into deep of consumer behavior to analyze and act to achieve objectives

CONCEPT & NEED FOR STUDYING CONSUMER BEHAVIOR:-

Consumer behaviour can be said to be the study of how individual make decision on how to
spend their available resources (time, money, effort) on various consumption related items. This
simple definition of consumer behaviour tells the markets to resolve every activity around the
ultimate consumers & gauge their behaviour by specially focusing on:

Who buys products or services?


How do they buy products or services?
Where do they buy them?
How often they buy them?

Why do they buy them? How

often they use them?

45
These questions will help in understanding better what factors influences the decision making
process of the customers. The decision making process identifies the number of people who are
involve in this process & describes a role to them like users, decides, influences & buyers
It is believed that consumers or customers make purchase decision on the basis of receipt of a
small number of selectivity chosen pieces of information. Thus it will be very important to
understand what & how mush them to evaluate the goods & services offerings.

CONSUMER DECISION MAKING PROCESS:-

Stimuli- need, reasons, influences, gathering information Information processing-


process , analyze information about product Decision making - on the basis of analysis ,
decision to go for Response- response to buy without any prejudiceFor industrial buyers
the process is almost similar only with addition of re-buy, modified re buy or new task.

FACTOR INFLUENCING BUYING BEHAVIOR:-

Individual factors

Cognitive thinking process – perception , attitudes , Needs/motives Personal


characteristics – demography, lifestyles ,person

Environmental factoCulture- values ,beliefs, sub cultural / cross cultural factors Social
class- social class , society
Influence groups – family, opinion leaders, reference group
Situational variables – purchase occasion , market communication, shopping behavior, price ,
sales influence , product position

46
1.9 CONSUMER SATISFACTION:-

All business firms have realized that marketing is a core element of management
philosophy & the key to its success lies in focusing more & more on the customers.
That is, it will be the customer who will decide where the firm is heading. Thus the
challenge before the marketer is to ensure that they should satisfy every customer.
Satisfaction is an important element in the evaluating stage. Satisfaction refers to
the buyers state of being adequately rewarded in a buying situation for the sacrifices
he has made one the customer purchase & use the product they may then become
either satisfy or dissatisfied.

The result of satisfaction to customer form the purchase of the product or services is
that more favourable post-purchase attitude, higher purchase intention & brand
loyalty to be exhibited that the same behaviour is likely to be exhibited in a similar
purchasing situation. The term ‘consumer’ is a typically used to refer to someone
who regularly purchase from a particular store or company.

47
Customers are people who are happy with the product & services & are willing to
come back & pay for it again.

Today the firms aim to give satisfaction to the customer through marketing
concepts. The firm try to help the buyers in the solving the problem then
competitors. The marketers must see that consumers with purchasing power
constitute a potentials buyers are identified. It is essential for the marketer to carry
out the business in such a way that they give satisfaction to consumers needed.
When a firm markets a product or service it should aim to enjoy consumer’s
satisfaction & profit maximization.

CONSUMER RESEARCH:-

Consumer research is the methodology used to study consumer behavior research


offer set diverse to identify consumer needs it is used to identify both felt & unfelt
needs, to learn how consumers. Perceive product & brand & stores. What their
attitudes are before and after promotional campaigns & how & why they make their
consumption decision.

MARKETING RESEARCH:-

Marketing research plays an important role in the process of marketing. Starting


with market component of the total marketing talks. It helps the firm to acquire a
better understanding of the consumers, the competition and the marketing
environment.

48
CHAPTER NO 2

PRIMARY AND SECOUNDARY


DATA

49
2.1MARKETING RESEARCH
DEFINITION

“Marketing research is a systematic gathering, recording and analysis marketing problem to


facilitate decision making.”

- Coundiff & Still.

“Marketing research is a systematic problem analysis, model building and fact finding for the
purpose of important decision making and control in the marketing of goods and services.

- Phillip Kotler .

MAIN STEPS INVOLVED IN MARKETING RESEARCH

Defining the Marketing Problem to be tackled and identifying the market research
problem involved in the task.
(1) Define the problem and its objectives.
(2) Identify the problem.
(3) Determine the information needed.
(4) Determine the sources of information.
(5) Decide research methods.
(6) Tabulate, Analyze and interpret the data.

50
(7) Prepare research report.
(8) Follow-up the stud

1) Define the problem and its objectives :- This includes an effective job in planning
and designing a research project that will provide the needed information. It also includes the
establishment of a general framework of major marketing elements such as the industry
elements, competitive elements, marketing elements and company elements.

2)Identify the problem :- Identifying the problem involves getting acquainted with the
company, its business, its products and market environment, advertising by means of library
consultation and extensive interviewing of company’s officials.

3)Determining the specific Information needed :- In general the producer, the


manufacturer, the wholesaler and the retailer try to find out four things namely :-
(1)What to sell

(2) When to sell


(3) Where to sell
4) Determine the sources of information :-

Primary Data :- Primary datas are those which are gathered specially for
the project at hand, directly – e.g. through questionnaires & interviews. Primary data
sources include company salesman, middleman, consumers, buyers, trade association’s
executives & other businessman & even competitors.
Secondary Data :- These are generally published sources, which have
been collected originally for some other purpose. Source are internal company records,
government publication, reports & publication, reports & journals, trade, professional and
business associations publications & reports.

51
5) Decide Research methods for collecting data: - If it is found that the secondary data
cannot be of much use, collection of primary data become necessary. Three widely used methods
of gathering primary data are :-
A) Survey

B) Observation

C) Experimentation

A) Survey Method: - In this method, information gathered directly from individual


respondents, either through personal interviews or through mail questionnaires or telephone
interviews.
B) Observation Method: - The research data are gathered through observing and recording
their actions in a marketing situation. This technique is highly accurate. It is rather an expensive
technique.

C) Experimental Method: - This method involves carrying out a small scale trial solution
to a problem, while at the same time, attempting to control all factors relevant to the problem. The
main assumption here is that the test conditions are essentially the same as those that will be
encountered
D) The Panel Research:- In this technique the same group of respondents is contacted for
more then one occasion; and the information obtained to find out if there has been any in their
taste demand or they want any special quality, color, size, packing in the product.

Preparation of questionnaire

Presetting of

questionnaire Planning of

the sample

52
6) Tabulate, Analysis and Interpret the Data:-

The report must give/contain the following information:-

a) The title of research

b) The name of the organization for which it has been Conducted

c) The objectives of research


d) The methodology used
e) Organization and the planning of the report
f) A table of contents along with charts and diagrams used in the reports
g) The main report containing the findings
h) Conclusion arrived at end recommendations suggested
i) Appendices (containing questionnaire / forms used sample design, instructions.)

7]Follow-up the study :-

The researchers, in the last stage, should follow up this study to find if his
recommendations are being implemented and if not then why.

53
2.2 RESEARCH METHODOLOGY

• Seek the general perception of consumer toward amul milk


• To know the consumer psyche and their behavior towards amul milk

OBJECTIVE OF THE RESEARCH


• To know the relationship of sales with the advertisement
• To know awareness of people toward amul milk
• To know which advertising tool is mostly preferred by people
• To know the preference of amul milk with comparison to other competitive
brand
• To know the factor which affects consumer buying behavior to purchase milk.

Information requirement

• First, I had to know about all the competitors present in the Milk segment
(Reputed and well established brands as well as Local brands).

• Before going for the survey I had to know the comparative packs and prices of
all the competitors existing in the market.

• Since Milk is a product that used daily hence I had to trace the market and segment
it, which mainly deals with people of various age groups.
• The main information needed is the various types of brands available in the market,
their calorific value and various other facts.
As Amul milk advertisements are mainly done through hoardings but on television the

advertisement is being

RESEARCH DESIGN

A Research design specifies the methods and procedures for conducting a particular study. It is a
map (or) blue print to which the research is to be conducted. Descriptive research design has been
considered as a suitable methodology for present study and for data analysis.

SAMPLING DESIGN
The sampling design used was Convenience sampling, which is a non-probability sampling
method. The convenience factors were the availability and approachability of the respondents.
54
POPULATION
All types of outlets that stock and sell Amul milk in the markets. The outlets have been classified
into as follows

Convenience stores: All kinds of shops including bakeries


Eateries: all kinds of eating telecasted timely and on the proper time or not

55
2.3 source of data

Primary sources
The primary data was collected through questionnaires. They were filled using the scheduled

method of data collection by the researcher. Secondary sources


The secondary sources were used only for collecting information regarding the sample; they were
however not used for analysis

LIMITATIONS OF THE RESEARCH :-


The limitations of the research were as follows

1. Lack of proper experience on the part of the researcher in conducting such studies in the
past.

2. Time frame required was not enough to survey more number of outlets.

ANALYSIS TECHNIQUES

Quantitative analysis is performed using the data collected at each outlet to estimate the
presence of Amul milk. Tools Utilized

56
2.4 SAMPLING

.1. Sampling Technique: Non probability sampling

(A non probability samplingtechnique is

that in which each element in the

population does not have an equal


chance of getting selected)
2. Sample Unit : People who buy milk available

in retail outlets, superstores, etc

3. Sample size : 50

4. Method : Direct interview through questionnaire.

5. scale : Dycpnomic scale and likent scal

57
• 2.5 QUESTIONNAIRE OF AMUL MILK PRODUCTS

1) Which milk do you consume?


d. Pouch milk
e. Loose milk
f. Both

2) Are you satisfied with the milk you are consuming?


a) Yes
b) No

3) What do you like?


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

4) Do you get milk pouch at…………..


a) Doorstep
b) From retailer

5) Total consumption of milk in a day?


a) Pouch milk in litre……
b) Loose milk in litre……

6) Your monthly expenditure in milk (in Rs.)?

a) 500-1000
b) 1000-1500
c) 1500 and above

7) In pouch milk which brand do you prefer?


a) AMUL
b) MOTHER DAIRY
c) GOKUL
d) MAHANANDA
e) WARANA
f) ANY OTHER

58
8) Do you think the price of the product is high/low compared to competitor’s
product?

a) Strongly agree
b) Strongly disagree
c) Agree
d) Neither

9) If you buy AMUL milk pouch which pack you purchase?

a) AMUL Gold
b) AMUL Taaza
c) AMUL Slim & Trim

10) What is the reason for buying/ not buying AMUL?

a)……………………………………………………..
b)……………………………………………………..
c)…………………………………………………..…

11) What are your suggestion/ expectations from AMUL?

a)………………………………………………………
b)………………………………………………………
c)………………………………………………………

59
12) CONSUMER OPINION TOWARDS PRODUCT?

% of consumer
Rating NO of respond
15
Poor 30

Average 25 15

14
7
Good

6
3
Excellent

60
CHAPTER NO 3
LITRATURE REVIEW

61
• LITRATURE REVIEW
• Dr. S.P. Savitha ,
“A study on consumer preference towards ‘AMUL PRODUCT’ in Madurai city”. AMUL (Anand
milk produced union limited) formed in 1946, is a dairy co-operative movement in India. India
largest food brand trusted Amul product for its quality and product available at affordable price.
Amul product enjoying No.1 position in dairy industry this stand to further strength its position. This
research is pretaining to find out the present consumer satisfaction of Amul product. Amul product
has a good reputation among the consumers in Madurai. So it can be extended to supply rural area
also.

• Mohit Jamwal, Dr. Akhilesh Chandra Pandey “Consumer behaviour towards cooperative milk
societies: A Study on measuring the customer satisfaction of` Aanchal’ milk (A Member milk union
of UDFC Ltd)”.The study on Consumer behaviour is the study of how individual make decision to
spend their available resources (time, money, effort) on consumption related items. Customer
satisfaction was measured across different attributes of the Ananchal milk and the customer’s
preference was checked across different parameters. This survey on the sale of Ananchalmilk, it can
be concluded that to evolve their production, marketing and pricing strategies effectively

• Akhila D and Dr. C. Boopathi ,”Consumer behaviour on Aavin milk and dairy products in Pollachi of
Tamil Nadu”. Tamilnadu state is one of the ten largest milk producing states in India. The aim of the
study is reveal consumer perception over Aavin milk products based on their age, education,
qualification and monthly income of the consumer’s family. Many people buy Aavinmilk for its
quality than the price. If the Aavin product is too high than other brands. The aavin take necessary
steps to satisfy their consumers.

• Dr. P. Rengarajan, R. Sathya and R. Gothami ”Buying behaviour of selected branded milk products”.
Dairy products is one of the important thing used nowadays in urban and rural areas. Although the
country has emerged as the largest producer of milk in 90’s. Market size is increasing day by day and
the demand for that product is araising. So, the companies need a proper distribution network for
avaidability of product at demand.

• Mrs. Sonali Dhawan ,”A study on consumer behaviour towards various branded and non-branded
milk with special reference to Jabalpur district in Madhya Pradesh”. Consumer behaviour can be
defined as the behaviour that consumer display in searching for purchasing, using, evaluating and
disposing of products and services that they expect will satisfy needs and wants. But there is a lack of
awareness among the consumer about milk they are consuming. The campaign has to be run by the
companies how they pasteurized the milk and ow hygienic it is to use branded milk.

62
• .Kiran Prasad70 (2004) published book entitled “Information and Communication
Technology” published by B.R. Publishing Corporation, New Delhi; ISBN 81- 7646-456-
2. In this book the author focused on altering development, sets out to illustrate the
application of ICTs for recasting development in India and several other developing
societies. This path-breaking book explores the applications of ICTs in the core sectors of
dairy, agriculture, healthcare and networking. Another major focus of the book is on the
effect of communication convergence, the development of cyber journalism, electronic
organizational communication, epublic relations, e-governance and e-democracy in the
era of globalization. The book raises several fundamental questions on development
policy and communication research and responds to the polemic issue of bridging the
digital divide in India that can inspire the development efforts of several developing
countries. This book is a valuable resource for future research, policy formation and
management.
• Mascarenhas R. C.71 (1988), published book entitled “Strategy for Rural Development:
Dairy Cooperatives in India”The obvious success of Operation Flood and the National Dairy
Development Board established by the Government of India, has prompted Mascarenhas to
undertake this study. In it, he adopts an interdisciplinary approach to evaluate Operation
Flood as a strategy in rural development. He evaluates various rural development programmes
attempted in India and other developing countries.
70Kiran Prasad, 2004, Information And Communication Technology, B.R. Publishing
Corporation, New Delhi ; ISBN 81‐7646‐456‐2 71Mascarenhas R. C., 1988, Sage Publication
New Delhi, Strategy for Rural Development: Dairy Cooperatives in India 116
• Rao V. M.72 (2004), published book entitled “Empowering rural women: Through Dairy
Cooperatives” Women represent half the world’s human resources. Though women perform
different roles, household and productive, women continue to be mainly responsible for ‘care
economy’. This study makes an attempt to understand the nature and impact of STEP
programme on women and to draw lessons for future policy exercises. The specific objectives
of the study are: 1. To study performance of ‘all women Dairy Cooperatives societies’
(WDCSs) in different agro-climatic regions. 2. To calculate quantitative and qualitative
changes in women covered under STEP programme. 3. To observe the differential decision
making pattern of farm women in various animal husbandry tasks. 4. To document working
of self-help groups among respondents
• . Bedi M. S.73 (1987), published book entitled “Dairy Development Marketing and Economic
Growth”. This book covers general marketing of dairy products and its correlation with
economic growth. Writer focuses on the various issues in animal husbandry and milk
marketing like Reasons for keeping dairy cattle• Availability and accessibility of production
factors and inputs.• Local marketing possibilities• Management skills• Aspects within each
farming system• Dairy Marketing Strategies, Issues and Challenges
72Rao V. M., 2004, Anmol Publication New Delhi, Empowering rural women: Through
dairy Cooperatives, ISBN 8126117516 73Bedi M. S., 1987, Deep & Deep Publications, New
Delhi, Dairy Development Marketing And Economic Growth 117
• Manob K. Bandyopadhyay74 (1994) published book entitled “Dairy co-operative rural
development in India.” Maximum people of heavily populated India live in villages. Majority
of them are involved in agriculture. The cattle animal is related with agriculture in India as the
old method of cultivation is still a trend here. Rearing of cattle animal is also an additional
source of income of the villagers in our country. Dairy development is explained as follows :
1. 1965, National Dairy Development Board (N.D.D.B) 2. 1970 National Dairy Development
63
Board 3. 1973 other states of the country. This study deals with the analysis as to how far the
Operation Flood Programme, i.e. replicating the ANAND model programme of the N.D.D.B.,
is achiev
ed in India. This analysis depicts that the programme which was taken with a view to
replicating the ANAND model has not achieved success throughout the country. Besides, this
programme did not consider local geographical and socio-economic aspects at the time of
copying ANAND model exactly. As a result, in many cases invested capital of Operation
Flood Programme could not yield any favorable result. According to Operation Flood
Programme many Milk Producers’ Cooperatives have been formed in this vast country. For
the benefit of detailed analysis, only two Co-operative Milk Producers’ Union Limited - The
Kaira District (ANAND) Cooperative Milk Producers’ Union Limited and The Himalayan
Co-operative Milk Producers’ Union Limited, have been taken into account. In this analysis,
problems have been discussed in three stages in three chapters. In the first stage growth and
performance, in the second stage financial performance and in the last stage influence of
Dairy Co-operative on rural economy has been discussed.
74Manob K Bandyopadhyay, 1994,Uppal Publishing House New Delhi, Dairy co‐operative
rural development in India, ISBN 81‐85565‐53‐8 118
• Basavaraj S. Benni75, (2005) published book entitled “Dairy Cooperatives Management and
Practice”. This book is a comprehensive and analytical account of the functioning of dairy co-
operatives in the country. Focusing on historical perspectives of dairy co-operative
movement, it explores the foundations of cooperation, co-operative principles, benefits of
dairy co-operative societies and dairy development under various schemes. Besides dealing
with dairy technology and practice of dairy farming in rural areas, the book also outlines dairy
structure and co-operative management issues. This pioneering work, written from the
perspective of development and administration of dairy co-operative societies, will be of
immense help for the policy makers, planners, and actual implementers of programmes for
co-operative

64
CHAPTER NO 4
DATA ANALAYSIS AND
INTERPRETATION

65
DATA ANALYSIS AND INTERPRETATION:-
The collected data were not easily understandable, so I like to analyze the collected data in a
systematic manner and interpreted with simple method.

The analysis and interpretation of the data involves the analyzing of the collected data and
interpretation it with pictorial representation such as bar charts, pie charts and others.

1]Which milk do you consume?

a. Pouch milk
b. Loose milk
c.both

66
.

Options No of Responded % of Responded

Pouch mik 20 40

Loose milk 20 40
Both `10 20

TABLE NO 1

GRAPH NO 1

• INTERPRETATION: 40 percent consumers used pouch milk &40 percent consumers used
loose milk and last 20 percent used both milk

67
2]Are you satisfied with the milk you are consuming?
a) Yes
b) No

NO. %
RESPONSE OF RESPONDED OF responded
YES 32 64
NO 18 36
TABLE NO 2

GRAPH NO 2

• INTERPRETATION: 64% consumer satisfied with their product and 36% consumer not
satisfied their product.
68
3]What do you like?
a) Quality b) Taste
c) Price d) Availability

Factors No. of Respondents Percentage %


quality 20 40
taste 15 30
price 10 20
availability 5 10

TABLE NO 3

GRAPH NO 3

• INTERPRETATION:40% consumer like quality 30% consumer like taste and 20%
consumer like price of the product and last 10 % consumer like avalibility of the product.

69
4]Do you get milk pouch at…………..
a)Doorstep
b) From retailer

RESPONDED NO.OF responded % OF responded


Door step 30 60
retailer 20 40
TABLE NO 4

GRAPH NO 4
• INTERPRETATION: from the above diagram vary clear that 60% of consumers get milk
pouch at door step and 40% of consumers do not get milk pouch at door step.

70
5]What is total consumption of milk in a day?
a) Pouch milk in litre……
b) Loose milk in
litter…..

RESPONDED NO.OF responded % OF responded


Pouch milk in 30 60
litre……

b)Loose milk in 20 40
litre……

TABLE NO 5

GRAPH NO 5
INTERPRETATION :from the above diagram it is vary clear that 60% of consumption pouch
milk & 40 % of consumption loose milk.

71
6]What is your monthly expenditure in milk (in Rs.)?

a]500-1000
B]1000-1500
C]1500 and above

RESPONSE NO. %
OF RESPONDED OF CONSUMERS
500-1000 25 50
1000-1500 15 30
1500 and above 10 20
TABLE NO 6

GRAPH NO 6
• INTERPRETATION:50% of consumer monthly expenditure is 500-1000 &30% consumer
expenditure is 1000-1500 and last 20% consumer monthly expenditure is 1500 above.
7]In pouch milk which brand do you prefer?
a)AMUL
b) MOTHER DAIRY
c) GOKUL
d) MAHANANDA
72
e) WARANA
f) OTHERS

RESPONSE NO. %
OF RESPONDED OF CONSUMERS
amul 15 30
Mother dairy 10 20
mahananda 10 20
Gokul 5 10
Warana 5 10
others 5 10

TABLE NO 7GRAPH

GRAPH NO 7

INTERPRETATION: in pouch milk 30% consumer prefer amul milk & 20% prefer mother

dairy&also 20 % consumer prefer mahananda milk and gokul and warna 10% consumer

prefer and 10% consumer prefer other milk

73
8]Do you think the price of the product is high/low compared to competitors product?

a) Strongly agree

b) Strongly disagree
c) Agree
d) Neither

RESPONSE NO. %
OF RESPONDED OF CONSUMERS
15 30
Strongly agree

Strongly disagree 10 20

agree 15 30
Neither 10 20
TABLE NO 8

GRAPH NO 8

• INTERPRETATION: most of the consumer are strongly agree and least of the consumer are
disagree .

74
9]If you buy AMUL milk pouch which pack you purchase?

a) AMUL Gold
b) AMUL Taaza
c) AMUL Slim & Trim

RESPONSE NO. %
OF RESPONDED OF CONSUMERS

AMUL Gold 25 50
AMUL Taaza 15 30
AMUL Slim & Trim 10 20

TABLE NO 9

GRAPH NO 9

INTERPRETATION:50 % of consumer purchase amul gold and 15% consumer purchase amul
taaza and 10% consumer purchase amul slim and trim

75
10]CONSUMER’S OPINION TOWARDS PRODUCT

rating No of respondent % of consumer


poor 15 6
average 25 15
good 7 14
excellent 3 3
0
TABLE NO 10 0

76
GRAPH NO 10

• INTREPRITATION: 30% consumer rating excellent &14% consumer rating good & 15%
consumer rating average and 6% consumer rating poor.

77
4.2 SWOT ANALYSIS

Strengths

The company is having Indian origin thus creating feeling of oneness in the mind of the
customers.

It manufactures only milk and milk products, which is purely vegetarian thus providing quality
confidence in the minds of the customers

It is aiming at rural segment, which covers a large area of loyal customers, which other companies
had failed to do.
People are quite confident for the quality products provided by Amul.

Amul has its base in India with its butter and so can easily promote chocolates without fearing of
loses.

Weaknesses

There are various big players in the chocolate market, which acts as major competitors restricting
their growth.

Lack of capital invested as compared to other companies.

Improper distribution channel in India

Opportunities

There is a lot of potential for growth and development as huge population stay in rural market
where other companies are not targeting.

78
The chocolate market is at growth stage with very less competition so by introducing new brand
and intensive advertising there can be a very good scope in future.

Threats

The major threat is from other companies who hold the majority share of consumers in Indian
market i.e. Cadburys and Nestle.

There exists no brand loyalty in the chocolate market and consumers frequently shift their brands.

New companies’ entering in Indian market like Fantasie fine poses lot problems for Amul.

79
CHAPTER NO 5
COCLUSION AND SUGGESTION

80
5.1 Conclusion

It is well recognized that markets that are fragmented or producers that are too small to build
competitive infrastructures or those who are unable to manage technological changes in their
operational processes would benefit the most through a cooperative organization. Consequently a
large number of cooperatives have taken roots amongst producers of food (especially those that
are perishable). However, there are interesting cooperative formations in India and China that are
starting to emerge amongst small producers in auto-components (especially those serving the
replacement markets), amongst small scale dyeing communities and the power-loom operators in
the textile industry. In these cases, the producers are coming together to develop a common brand.

that is based on stringent quality certifications that would distinguish them from other small
producers and for usage of common property resources. The example of AMUL provides a
number of lessons for such organizations to compete successfully in the face of increasing
globalization and competition. More generally, the AMUL case presents a successful model for
operating in emerging economies characterized by either large under-developed suppliers and/or
markets with high potential.

81
5.2 suggestion

• Company should start printing packaging date on milk pouch.


• Consider on the supply of product of in the peak season.
• 250 ml milk pouch should make available to retailers for selling because lower
income family has intension to buy small pouch milk.
• Incentive and schemes should be given to the retailer.
• Provide reasonable margin to retailers as compared to competitors this motivates
them to promote company milk and milk products.
• The organization should provide a good profit margin to the retailers in order to
increase the sale.
• The organization should give a importance to improve the packaging system &
distribution system.
• Improve delivery schedule to provide product on time for the retailers to the on
time.
• The organization has to be aware of consumer survey and get feedback
continuously.
• To motivate retailers and improve their satisfaction level even distribution also
• Incentives and schemes should be given to the retailer
• A thought should be given to discontinue amul pizza.
• A tv and internet promotion can be thought off considering youth as major target
audience

82
BIBLOGRAPHY

83
Marketing Management Philip Kotler, The Millennium Edition, Prentice Hall Of India
Private Limited, New Delhi.

Periodical: Business World

Research Methodology: C.R.Kothari , 2nd edition.

S.N Murty and U Bhojanna

Websites :

i. www .g oo gl e . co . i n

ii. www .w ik i ped ia. co m

iii. www .amu l. co m.

iv. ww w. ma rket resea rch.co m

v. www.dairy.com

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85

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