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CENTRAL IT COLLEGE-Guwahati

Centre Code-1729

Authorized under
SIKKIM MANIPAL UNIVERSITY
Of Health, Medical & Technological Sciences
Gangtok-737102

A Project Report
On
“A STUDY ON CONSUMER PERCEPTION ON AMUL ICE-
CREAM”

For

GCMMF LIMITED.
G.S ROAD
BHANGAGHARH
GUWAHATI-781005

By
ANJAN DEKA
Reg. No- 520867999
Submitted in partial fulfillment for the award of the degree of
Master of Business Administration (MBA) under
Sikkim Manipal University

CENTRAL IT COLLEGE
Dr. R.P. Road, Dispur, Guwahati-781006
CERTIFICATE

Certified that ANJAN DEKA is a student of MBA Final semester


holding University Roll No 520867999. under the roll of my College, a University
Study Centre of SIKKIM MANIPAL UNIVERSITY of Health, Medical &
Technological Sciences, has completed her project entitled as “A STUDY ON
CONSUMER PERCEPTION ON AMUL ICE-CREAM” Submitted in partial
fulfillment of the award of the degree of Master of Business Administration
(MBA) of the said University.

He has worked under the supervision of our Faculty Mr. Mrinmayan


Burhagohain Faculty of Management Science, Central IT College, Dispur. The
Report submitted is genuine & no part of this report has been submitted anywhere
for the award of any degree from any University.

He was sincere & obedient during his tenure of study having an amiable
behavior & good character.

I wish him all the Best.

M. Hoque
Director
EXAMINERS CERTIFICATE

The project report of Anjan Deka “A STUDY ON CONSUMER PERCEPTION


ON AMUL ICE-CREAM” is approved and is acceptable in quality and form

Internal Examiner External Examiner


UNIVERSITY STUDY CENTER CERTIFICATE

This is to certify that the project report entitled “A STUDY ON CONSUMER


PERCEPTION ON AMUL ICE-CREAM” submitted in partial fulfillment of
the requirements for the degree of Masters of Business Administration of Sikkim-
Manipal University of Health, Medical and technological sciences, Anjan Deka
has worked under my supervision and that no part of this report has been submitted
for the award of any degree, Diploma, fellowship, or any other similar title or
prizes and that the work has been not published in any journal or Magazine.

Registration no: 520867999 Certified

Mr. Mrinmayan Burhagohain


Faculty of Management Science
I here by declare that the project report entitled “A STUDY ON CONSUMER
PERCEPTION ON AMUL ICE-CREAM” submitted in partial fulfillment of
the requirements for the degree of Masters of business Administration to Sikkim-
Manipal University, India, is my original work and not submitted for the award of
any degree, diploma, fellowship, or any other similar title or prizes.

Place: Guwahati Anjan Deka

Date: Reg. No520867999


PREFACE

The submission of Project Report is a part of the MBA Programmed of the Department of
Business Administration, Central IT College (Dispur), under Sikkim Manipal University of
Health, Medical & Technological Sciences, India. This Project Report is a result of 2 months
study conducted under --- “GCMMF LIMITED”

The report has been prepared for the marketing Department of “AMUL” on a specifically
assigned Topic 

“A STUDY ON CONSUMER PERCEPTION ON AMUL ICE-CREAM”

The Fact & Figure presented have been designed from primary data in the form of
Questionnaires. Some secondary information collected from articles in Journals & from Internet.

All suggestions have been incorporated based on the findings of this report. Every effort
has been made to present the information in a simplified form to present the information in a
simplified form to aid corporate decision making.
ACKNOWLEDGEMENT

A research project of this magnitude would not have been possible without the help and
guidance of few people to whom I would like to express my sincere gratitude.

At the outset I would like to express my sincere gratitude to Mr. Jayanta Madhab Goswami
(Sales Manager) “GCMMF LIMITED”, Guwahati for giving me an opportunity to work with
such a reputed organization like AMUL. I also very grateful to Mr. M. Hoque (Director), Central
IT College for allowing me to undergo training for me to work with this organization.

I also wish to offer my sincere gratitude to Mr. Mrinmayan Burhagohain, faculty member
of Management Science, Central IT College for his valuable guidance in the project. Besides, I
also thank wholeheartedly to my Project Guide Mr. Jayanta Madhab Goswami of “GCMMF
LIMITED”. Their personal interest and guidance in spite of their busy schedule has helped me to
accomplish the project.

My sincere thanks are also due to all staffs of “GCMMF LIMITED, who spared their
valuable time to me for all possible assistance and guidance. I extend my sincere appreciation and
thankfulness to them.

I would also like to thank all respondents, and the dealers, who spared their valuable time
to respond to the questionnaire.

Finally, I would like to thank all my friends who have in various ways, help me in data
collection, analysis and completion of this project.

Anjan Deka
EXECUTIVE SUMMARY

PROJECT TITLED- “A STUDY ON CONSUMER PERCEPTION ON AMUL


ICE-CREAM”

NAME OF THE ORGANISATION- AMUL (Anand Milk Union Limited)


G.S. ROAD, GUWAHATI (ASSAM)

EXTERNAL GUIDE- MR. JAYANTA MADHAB GOSWAMI


GCMMF, GUWAHATI.

INTERNAL GUIDE- MR. MRINMOYAN BURAGOHAIN


FACULTY OF MANAGEMANT SCIENCE.

DURATION- 2 MONTHS

AREA OF STUDY- CONSUMER.

PLACE- GUWAHATI CITY, ASSAM

TYPES OF RESEARCH- DESCRIPTIVE

DATA SOURCES: PRIMARY, SECONDARY AND TERTIARY

RESEARCH APPROACH: SURVEY TECHNIQUE

SAMPLE SIZE: CUSTOMERS- 60


SCOOPING PARLOUR-2
RETAIL SHOP-2
DISTRIBUTOR-1

SAMPLE TYPE: SIMPLE RANDOM SAMPLING

1
1. INTRODUCTION

For any FMCG and specially food products, customer has diversified thoughts
and perceptions. For success in business now a days it is become very important to
study the customer mindset and changing taste with changing time to make a better
adaptability. In my studies, I have tried to make a presentation about the
perception of ice-cream customer.

Amul is a leading and successful brand in India. Amul has diversified range of
food products ranging from ghee, milk, ice-cream etc. I have studied the different
aspects of ice-cream customers.

During my studies I have visited different scooping parlour, distributors , store


house and interacted with customers and the people associated in this business . I
have got a good respond and co-operation from all the people. At last, I convey my
sincere thanks to all of them for their co-operation and I wish Amul to become a
global brand.
AIMS AND OBJECTIVES:
1. TO STUDY NEED OF CUSTOMMER FOR THE PARTICULAR PRODUCT (ICE-
CREAM)

2. TO FIND OUT CUSTOMMER AWARENESS FOR THE BRAND AMUL WITH


REFERANCE TO THE PRODUCT ICE-CREAM.

3. TO FIND OUT THE BUYING BEHAVIOUR OF CUSTOMMER.

4. TO FIND OUT CUSTOMMERS AWARENESS FOR INGREDIENTS OF THE


PRODUCT.

5. TO FIND OUT THE SEGMENT OF PEOPLE WHO USE THE PRODUCT


FREQUENTLY.

6. TO FIND OUT THE MOST PREFFERED BRANDS OF ICE-CREAM.

7. TO STUDY THE ADVERTISING STRATEGY OF AMUL ICE-CREAM


AND ITS EFFECTIVENESS
METHODOLOGY

DATA COLLECTION: DATA WILL BE COLLECTED FROM PRIMARY, SECONDARY


AND TERITIARY SOURCES. BUT THE EMPHASIS WILL BE GIVEN ON PRIMARY
DATA.

1. PRIMARY DATA: Primary data, which are the major source of information for the
project, will be collected by way of preparation of well-structured questionnaire and
personal interviews and observations will be conducted to collect the staff and candidate,
through this questionnaire.

2. SECONDARY DATA: To make the study better, secondary data will also be collected y
way of editorials, journals or extracts from magazines and newspapers.

3. TERITIARY DATA: A massive amount of information will be accumulated from


various related websites of internet.

DATA ANALYSIS: Data Analysis will be done and is important for any project because the
raw data is of no use and does not convey the awareness among the youths.

DATA REPRESENTATION: Data will be represented in cross tabular formats. The data
collected through questionnaires will be arranged in a tabular form for the purpose of effective
study and in depth analysis and interpretation. Use of percentage, charts, graph line etc. will be
made for the study if necessary.

SCOPES:

The area of study of this project will be in the guwahati city.

The study will mainly concentrate on the customer perception and preference on the particular
product (ice-cream) of amul.

The key focus area of the study will be to assess the reason behind buying behaviour of this
segment of customers. The sample of customers for my study will be around 75-100.
The sample will include all the buyers of amul irrespective of age, sex and profession. The basic
aim behind my study is to find out the key to make the band most proffered brand by studying
the need and preference of customers.
LIMITATIONS:
1) Time Constraint : The time for undertaking the project will be limited and needs to
be completed within the stipulated period which will make it difficult for analyzing
each and every sphere involved in the research.

2) Cost Constraint: The cost involved in the research will have to be minimized because
conducting research will be costly.
3) Geographical Constraint: It will also be one of the limitations. As to all and it will not be
possible to carry it out elsewhere.
4) Other Constraint: Every study faces this shortcoming of respondent bias. Respondents
sometimes are non-responsive and their moods and behaviour are hard to predict which
may not give accurate results.
FINDINGS

From dealer data analysis-

1. Among the different flavour; chocolate, strawberry sales are higher with compared to
others.
2. Display influences the sale of the particular product.
3. New customers used to take opinion from sales person. They should be well trained and
well behaved.

From customer data analysis-

1. Price is the determinant for the middle class ice-cream customer.

2. Customers are less brand loyal.

3. Customer used to prefer ice-cream which is in the range of Rs.-5 to Rs.-20 .

4. Due to less brand loyalty, customer used to buy product from their most convenient shop.

5. People need variety but as the sales data of dealers indicates, the sale of sugar-free ice-
cream is comparatively lower. The targeted customer is still untapped.

6. People are aware of caloric value (60% customer) of ice-cream, but interestingly, they do
not consider this aspect for choosing ice-cream.

7. People fond of fruit flavour of ice-cream. The future market of this type is seems to be
higher, Amul should advertise these type of products.

8. Almost 60% customer think branded ice-cream are affordable for middle class and lower
middle class.
9. People love ice cream in sunny days (April -June mostly).In family parties also people
want ice-cream product. Dealers can contact with hotel, lodge, bibah-bhawan (rented
lodge foe marriage party) for bulk supply in these occasion.

10. Amul ice-cream advertising is not very much effective one. 54% customers have never
seen amul ice-cream advertising. In this field, the company needs improvement.
RECOMMENDATION

FROM DEALER’S POINT OF VIEW:

The display of the store should be good enough and the sales man should be well-trained
and well-behaved. Sometimes, sales man influences buying decision making process, so,
they should not miss guide to retain the customer.

The dealer and distribution can contact to hotels, marriage hall, and conference hall for
frequent bunk supply. They may float some contest, incentive program at their local
level.

The quality of product of the roadside vendors of should be regularly inspected. They are
movable vendors and they may sale product of other brands or products at higher MRP.
This may affect brand image. So, they should be properly monitored.

The advertising like hoardings, banners should be properly used.

FROM customer’s POINT OF VIEW:

The product should be available in all places. Customer of outside guwahati has
demanded ice-cream parlor at their native place.
The sugar-free ice-cream should be advertised to capture targeted segment.
Introduce more outlets and pro-biotic varieties and advt about having benefits of healthy ice-cream
By introducing more flavour like competitor Baskin Robin who introduced 31 flavour for 31 days of a
month. i.e. different flavour for each day.
The brand image of Amul is good among buyers, company should take advantage of brand image and
can print ice-cream ad in amul butter, amul milk etc high selling products.
44% of customer have come to know about amul ice-cream from amul ad. So, the
advertising have an impact on ice-cream customer and Amul advertise should be shown
in prime time.
Like telecom sector, Amul can publish localized advertise with theme of local festival
like bihu and puja, to boost sale.
CONCLUSION

First of all, I Would like to express my sincere thanks and gratitude to Mr. Jayanta entrusted
Madhab Goswami and Mr. Tapas Ganguli who entrusted me this wonderful opportunity to do a
project under his guidance that eventually provided me an opportunity to learn about the
importance of a Brand for a company. It is an eye- opening experience for me on the importance
of “Consumer satisfaction and perception” for a Company. A company would be wise to
measure customer satisfaction regularly, because one key to customer retention is customer
satisfaction. From the above study I can came to the conclusions that-

a. The amul ice-cream is market leader and it have good perception among the
customers about it’s quality.
b. Amul has become the most preferred food manufacturer in the country.
c. It’s success is important in such a point that it is a co-operative company and it
has become an idol in this category.
d. The ice-cream market is growing fast and still a lot of potential and untapped
market is available.
e. The customer mainly focuses on flavor more than brand while selecting an ice-
cream.

The project will help me to understand different aspect of corporate such as branding,
distribution, storage, quality maintenance and aspects of new business set-up apart from the idea
of handling and satisfying customers.
PART- 1

AN OVERVIEW OF THE ORGANIZATION


. INTRODUCTION

FOOD INDUSTRY
The food industry is the complex, global collective of diverse businesses that together supply
much of the food energy consumed by the world population. Only subsistence farmers, those
who survive on what they grow, can be considered outside of the scope of the modern food
industry.
The food industry includes:

Regulation: local, regional, national and international rules and regulations for food production
and sale, including food quality and food safety, and industry lobbying activities

Education: academic, vocational, consultancy

Research and development: food technology

Financial services: insurance, credit

Manufacturing: agrichemicals, seed, farm machinery and supplies, agricultural construction,


etc.

Agriculture: raising of crops and livestock, seafood

Food processing: preparation of fresh products for market, manufacture of prepared food
products

Marketing: promotion of generic products (e.g. milk board), new products, public opinion,
through advertising, packaging, public relations, etc

Wholesale and distribution: warehousing, transportation, logistics

Retail: supermarket chains and independent food stores, direct-to-consumer, restaurant, food
services

ADVANTAGE OF INDIA UNDER FOOD INDUSTRY:

India is one of the largest food producers in the world

India has diverse agro-climatic conditions and has a large and diverse raw material base suitable
for food processing companies
Investment requirement of around US$ 15 billion exists in the food processing sector

India is looking for investment in infrastructure, packaging and marketing

India has huge scientific and research talent pool

A largely untapped domestic market of 1000 million consumers

300 million upper and middle class consume processed food

200 million more consumers expected to shift to processed food by 2010

Well developed infrastructure and distribution network

Rapid urbanization, increased literacy, changing life style, increased number of women in
workforce, rising per capita income- leading to rapid growth and new opportunities in food and
beverages sector

50 per cent of household expenditure by Indians is on food items

Strategic geographic location (proximity of India to markets in Europe and Far East, South East
and West Asia)

Under the food industry, Dairy product is very important part of food processing. Dairy
processing is acting good role in India.
Dairy Processing
India ranks first in the world in terms of milk production. Indian production stands at 91 million
tones growing at a CAGR of 4 per cent. This is primarily due to the initiatives taken by the
Operation flood programmes in organizing milk producers into cooperatives; building
infrastructure for milk procurement, processing and marketing and providing financial, technical
and management inputs by the Ministry of Agriculture and Ministry of Food Processing
Industries to turn the dairy sector into viable self-sustaining organized sector. About 35% of milk
produced in India is processed. The organized sector (large scale dairy plants) processes about 13
million tones annually, while the unorganized sector processes about 22 million tones per
annum. In the organized sector, there are 676 dairy plants in the Cooperative, Private and
Government sectors registered with the Government of India and the state Governments.
India has a unique pattern of production, processing and marketing/consumption of milk, which
is not comparable with any large milk producing country. Approximately 70 million rural
households (primarily, small and marginal farmers and landless labourers ) in the country are
engaged in milk production. Over 11 million farmer are organized into about 0.1 million village
Dairy Cooperative Societies (DCS)(about 110 farmers per DCS). The cumulative milk handled
by DCS across the country is about 18 million kg of milk per day. These cooperatives form part
of a national milk grid which links the milk producers through out India with consumers in more
than 700 towns and cities bridging the gaps on account of seasonal and regional variations in the
availability of milk.
The Ministry of food Processing Industries is promoting organized Dairy processing sector to
accomplish upcoming demands of processed dairy products and helping to identify various areas
of research for future product development and quality improvement to revamp the Indian dairy
export by way of providing financial assistance to the dairy processing units. 32 Units have been
sanctioned financial assistance (Rs.591 lakhs) under the plan scheme of the Ministry during the
year 2006-07.
Major Indian and Overseas Players in the Food industry

ITC Limited

Parle Products Pvt. Ltd.

Agro Tech Foods

Amul

Perfetti India Ltd.

Cadbury India Ltd.

PepsiCo India Holdings

Nestle India Pvt. Ltd.

Britannia Industries Ltd.

Hindustan Uni Lever Limited

MTR foods limited

Godrej industries Limited

Dabur India Ltd.


COMPANY PROFILE

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India.
It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk
producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling example
of a co-operative organization's success in the long term. The Amul Pattern has established
itself as a uniquely appropriate model for rural development. Amul has spurred the White
Revolution of India, which has made India the largest producer of milk and milk products in the
world. It is also the world's biggest vegetarian cheese brand.

GCMMF:
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.
Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice
cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January
2006, Amul plans to launch India's first sports drink Stamina, which will be competing with
Coca Cola's Powerade and PepsiCo's Gatorade .
Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual
turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with
milk collection average of 10.16 million liters per day. Besides India, Amul has entered overseas
markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong
and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded,
but now it has fresh plans of flooding the Japanese markets .Other potential markets being
considered include Sri Lanka.
Dr Verghese Kurien, former chairman of the GCMMF, is recognized as the man behind the
success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was
elected chairman of GCMMF.

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest


food products marketing organisation. It is a state level apex body of milk
cooperatives in Gujarat which aims to provide remunerative returns to the
farmers and also serve the interest of consumers by providing quality
products which are good value for money.

CRISIL, India's leading Ratings, Research, Risk and Policy Advisory


company, has assigned its highest ratings of "AAA/Stable/P1+" to the
various bank facilities of GCMMF.
Members: 13 district cooperative milk
producers' Union
No. of Producer Members: 2.79 million
No. of Village Societies: 13,328
Total Milk handling capacity: 11.22 million litres per day
Milk collection (Total - 2008- 3.05 billion litres
09):
Milk collection (Daily Average 8.4 million litres
2008-09):
Milk Drying Capacity: 626 Mts. per day
Cattlefeed manufacturing 3500 Mts per day
Capacity:

Sales Turnover Rs (million) US $ (in million)


1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504
AN OVERVIEW OF THE ORGANISATION:

Amul
Type Cooperative
Industry Dairy
Founded 1946
Headquarters Anand, India
Chairman, Kaira District
Key people Cooperative Milk Producers' Union
Limited. (KDCMPUL)
Products See complete products listing.
INR (Indian Rupee) 67.11 billion,
Revenue
$1.33 billion USD (in 2008-09)
735 employees of Marketing Arm.
Employees However, real pool consist of 2.8
million milk producers
Website www.amul.com
ACHIEVEMENT:
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 farmers 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.
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.
. HISTORY OF THE ORGANIZATION

The Birth of Amul and development of India’s Dairy Cooperative Movement

The birth of Amul at Anand provided the impetus to the cooperative dairy movement in the
country. The Kaira District Cooperative Milk Producers’ Union Limited was registered on
December 14, 1946 as a response to exploitation of marginal milk producers by traders or agents
of existing dairies in the small town named Anand (in Kaira District of Gujarat). Milk Producers
had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand. Often
milk went sour as producers had to physically carry the milk in individual containers, especially
in the summer season. These agents arbitrarily decided the prices depending on the production
and the season. Milk is a commodity that has to be collected twice a day from each cow/buffalo.
In winter, the producer was either left with surplus / unsold milk or had to sell it at very low
prices. Moreover, the government at that time had given monopoly rights to Polson Dairy
(around that time Polson was the most well known butter brand in the country) to collect milk
from Anand and supply it to Bombay city in turn. India ranked nowhere amongst milk producing
countries in the world in 1946.

Angered by the unfair and manipulative trade practices, the farmers of Kaira District approached
Sardar Vallabhbhai Patel (who later became the first Deputy Prime Minister and Home
Minister of free India) under the leadership of the local farmer leader Tribhuvandas Patel. Sardar
Patel advised the farmers to form a Cooperative and supply milk directly to the Bombay Milk
Scheme instead of selling it to Polson (who did the same but gave low prices to the producers).
He sent Morarji Desai (who later became Prime Minister of India) to organize the farmers. In
1946, the farmers of the area went on a milk strike refusing to be further oppressed. Thus the
Kaira District Cooperative was established to collect and process milk in the District of Kaira in
1946. Milk collection was also decentralized, as most producers were marginal farmers who
were in a position to deliver 1-2 liters of milk per day. Village level cooperatives were
established to organize the marginal milk producers in each of these villages.

The Cooperative was further developed & managed by Dr. V Kurien along with Shri H M
Dalaya. The first modern dairy of the Kaira Union was established at Anand (which popularly
came to be known as AMUL dairy after its brand name). Indigenous R&D and technology
development at the Cooperative had led to the successful production of skimmed milk powder
from buffalo milk – the first time on a commercial scale anywhere in the world. The foundations
of a modern dairy industry in India were thus laid since India had one of the largest buffalo
populations in the world.

The success of the dairy co-operative movement spread rapidly in Gujarat. Within a short span
five other district unions – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were
organized. In order to combine forces and expand the market while saving on advertising and
avoid a situation where milk cooperatives would compete against each other it was decided to set
up an apex marketing body of dairy cooperative unions in Gujarat. Thus, in 1973, the Gujarat
Co-operative Milk Marketing Federation was established. The Kaira District Co-operative Milk
Producers’ Union Ltdprivate sector as a combined stronger force. GCMMF (AMUL) has ensured
remunerative returns to the farmers while providing consumers with products under the brand
name AMUL.

This was possible due to the leadership of the founder Chairman of AMUL, Tribhuvandas Patel
and the vision of the father of the White Revolution, Dr. Verghese Kurien who worked as a
professional manager at AMUL. Numerous people contributed to this movement which would
otherwise not have been possible.

Dr. Verghese Kurien, the World Food Prize and the Magsaysay Award winner, is the architect of
India’s White Revolution, which helped India emerge as the largest milk producer in the world.

Impressed with the development of dairy cooperatives in Kaira District & its success, Shri Lal
Bahadur Shastri, the then Prime Minister of India during his visit to Anand in 1964, asked Dr. V
Kurien to replicate the Anand type dairy cooperatives all over India. Thus, the National Dairy
Developed Board was formed and Operation Flood Programme was launched for replication
of the Amul Model all over India.

Operation Flood, the world’s largest dairy development programme, is based on the experience
gained from the ‘Amul Model’ dairy cooperatives. The facilities at all levels are entirely farmer-
owned. The cooperatives are able to build markets, supply inputs and create value-added
processing. Thus, Amul Model cooperatives seem to be the most appropriate organizational force
for promoting agricultural development using modern technologies and professional
management and thereby generating employment for the rural masses and eradicating poverty in
these undeveloped areas. India has already demonstrated the superiority of this approach.

[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 are achieved. As the above structure was first evolved
at Amul in Gujarat and thereafter replicated all over the country under the Operation Flood
Programme, it is known as the ‘Amul Model’ or ‘Anand Pattern’ of Dairy Cooperatives.

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.

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.

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[quantify] 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 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.

Impact of the "Amul Model"

The effects of Operation Flood Programme are more appraised by the World Bank in its recent
evaluation report. It has been proved that an investment of Rs. 20 billion over 20 years under
Operation Flood Programme in 70s & 80s has contributed in increase of India’s milk production
by 40 Million Metric Tonne (MMT) i.e. from about 20 MMT in pre- Operation Flood period to
more than 60 MMT at the end of Operation flood Programme. Thus, an incremental return of Rs.
400 billion annually have been generated by an investment of Rs. 20 billion over a period of 20
years. This has been the most beneficial project funded by the World Bank anywhere in the
World. One can continue to see the effect of these efforts as India’s milk production continues to
increase and now stands at 90 MMT. Despite this fourfold increase in milk production, there has
not been drop in the prices of milk during the period and has continued to grow.

Due to this movement, the country’s milk production tripled between the years 1971 to 1996.
Similarly, the per capita milk consumption doubled from 111 gms per day in 1973 to 222 gms
per day in 2000. Thus, these cooperatives have not just been instrumental in economic
development of the rural society of India but it also has provided vital ingredient for improving
health & nutritional requirement of the Indian society. Very few industries of India have such
parallels of development encompassing such a large population.

These dairy cooperatives have been responsible in uplifting the social & economic status of the
women folk in particular as women are basically involved in dairying while the men are busy
with their agriculture. This has also provided a definite source of income to the women leading
to their economic emancipation.

The three-tier ‘Amul Model’ has been instrumental in bringing about the White Revolution in the
country. As per the assessment report of the World Bank on the Impact of Dairy Development in
India, the ‘Anand Pattern’ has demonstrated the following benefits:

• The role of dairying in poverty reduction


• The fact that rural development involves more than agricultural production
• The value of national ‘ownership’ in development
• The beneficial effects of higher incomes in relieving the worst aspects of poverty
• The capacity of dairying to create jobs
• The capacity of dairying to benefit the poor at low cost
• The importance of commercial approach to development
• The capacity of single-commodity projects to have multi-dimensional impacts
• The importance of getting government out of commercial enterprises
• The importance of market failure in agriculture
• The power & problems of participatory organisations
• The importance of policy
Achievements of the "Amul Movement"

1. The phenomenal growth of milk production in India – from 20 million MT to 100 million
MT in a span of just 40 years - has been made possible only because of the dairy
cooperative movement. This has propelled India to emerge as the largest milk producing
country in the World today.
2. The dairy cooperative movement has also encouraged Indian dairy farmers to keep more
animals, which has resulted in the 500 million cattle & buffalo population in the country -
the largest in the World.
3. The dairy cooperative movement has garnered a large base of milk producers, with their
membership today boasting of more than 13 million member families.
4. The dairy cooperative movement has spread across the length and breadth of the country,
covering more than 125,000 villages of 180 Districts in 22 States.
5. The dairy cooperatives have been able to maintain democratic structure at least at the
grass-root level with the management committee of the village level unit elected from
among the members in majority of the villages.
6. The dairy cooperatives have also been instrumental in bridging the social divide of caste,
creed, race, religion & language at the villages, by offering open and voluntary
membership.
7. The dairy cooperatives have been successfully propagating the concepts of scientific
animal husbandry & efficiency of operations, which has resulted in low cost of
production & processing of milk.
8. The movement has been successful because of a well-developed procurement system &
supportive federal structures at District & State levels.
9. Dairy Cooperatives have always been proactive in building large processing capacities,
which has further propelled growth of milk production.
10. The dairy cooperatives are among those few institutions in India, which still cherish a
strong Cooperative identity, values and purpose. They still boast of idealism & good will
of members and employees.
11. The dairy cooperatives have removed the poor farmers of India from the shackles of
agents & middlemen and provided an assured market for their produce. As these are the
institutions run by farmers themselves, it has also resulted in fair returns to the members
for their produce
12. Dairy cooperatives have been able to create a market perception of honesty &
transparency with their clean management

Achievements of GCMMF

• 2.8 million milk producer member families


• 13,759 village societies
• 13 District Unions
• 8.5 million liters of milk procured per day
• Rs. 150 million disbursed in cash daily
• GCMMF is the largest cooperative business of small producers with an annual turnover
of Rs. 53 billion
• The Govt. of India has honoured Amul with the “Best of all categories Rajiv Gandhi
National Quality Award”.
• Largest milk handling capacity in Asia
• Largest Cold Chain Network
• 48 Sales offices, 3000 Wholesale Distributors, 5 lakh retail outlets
• Export to 37 countries worth Rs. 150 crores
• Winner of APEDA award for nine consecutive years

Amul Brand Building

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50
sales offices spread all over the country, more than 3,000 wholesale dealers and more than
5,00,000 retailers.

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] SAARCneighbours, Singapore, The Philippines, Thailand, Japan
and China.

In September 2007, Amul emerged as the leading Indian brand according to a survey by
Synovate to find out Asia's top 1000 Brands.

Products

Amul's product range includes milk powders, milk, butter, ghee, cheese, curd,
chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, flavoured milk,
basundi, Nutramul brand and others. In January 2006, Amul plans to launch India's first sports
drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's
Gatorade .

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; Kool Cafe, ready to drink coffee and India's first sports
drink Stamina.

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing
Award for 2007.

Mascot

Since 1967 Amul products' mascot has been the very recognisable "Amul baby" (a chubby
butter girl usually dressed in polka dotted dress) showing up on hoardings and product
wrappers with the equally recognisable tagline Utterly Butterly Delicious Amul.The mascot was
first used for Amul butter. But in recent years in a second wave of ad campaign for Amul
products, she has also been used for other product like ghee and milk.

Advertising

An Amul butter ad on Pakistan's Kargil War fiasco. The image shows the "Amul baby" in
between George Fernandes and Atal Behari Vajpayee.
Its advertising has also started using tongue-in-cheek sketches starring the Amul baby
commenting jovially on the latest news or current events. The pun in her words has been popular.
Amul outdoor advertising uses billboards, with a humorous take on current events and is updated
frequently. The Amul ads are one of the longest running ads based on a theme, now vying for the
Guinness records for being the longest running ad campaign ever with Smokey Bear. Sylvester
da Cunha was the managing director of the advertising agency, ASP, that created, in 1967, the
campaign.

The main theme of amul banner is always recent topic. The topic may be sport, politics,
bollywood or any other.

Some of such amul ads are:

Judge pronounces terrorist Ajmal Kasab guilty Forthcoming Bollywood release 'Kites'
-

Victory of 'Chennai Super Kings' over 'Mumbai Indians' in the finals of IPL3 championship
SPECIAL FEATURES:

List of Products Marketed:

Breadspreads:

• 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)
• 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

UHT Milk Range:

• Amul Shakti 3% fat Milk


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

Pure Ghee:

• Amul Pure Ghee


• Sagar Pure Ghee
• Amul Cow Ghee

Infant Milk Range:

• Amul Infant Milk Formula 1 (0-6 months)


• Amul Infant Milk Formula 2 ( 6 months above)
• Amulspray Infant Milk Food

Milk Powders:

• Amul Full Cream Milk Powder


• Amulya Dairy Whitener
• Sagar Skimmed Milk Powder
• Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

• Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

• Amul Taaza Toned Milk 3% fat


• Amul Gold Full Cream Milk 6% fat
• Amul Shakti Standardised Milk 4.5% fat
• Amul Slim & Trim Double Toned Milk 1.5% fat
• Amul Saathi Skimmed Milk 0% fat
• Amul Cow Milk

Curd Products:

• Yogi Sweetened Flavoured Dahi (Dessert)


• Amul Masti Dahi (fresh curd)
• Amul Masti Spiced Butter Milk
• Amul Lassee
Amul Icecreams:

• Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)


• Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza,
Roasted Almond)
• Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh
Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)
• Sundae Range (Mango, Black Currant, Sundae Magic, Double
Sundae)
• Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone,
Chococrunch, Megabite, Cassatta)
• Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake
Magic)

Chocolate & Confectionery:

• Amul Milk Chocolate


• Amul Fruit & Nut Chocolate

Brown Beverage:

• Nutramul Malted Milk Food

Milk Drink:

• Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom,


Rose, Chocolate)
• Amul Kool Cafe
• Amul Kool Koko
• Amul Kool Millk Shaake (Mango, Strawberry, Badam, Banana)

Health Beverage:

• Amul Shakti White Milk Food


DEPARTMENTAL STUDY:
Distribution of ice-cream products in Guwahati:

Gujrat plant

Cool-house in
sansari (near
guwahati)

MILAP CHAND CITADEL


HIRALAL CORPORATION

DISTRIBUTOR
DISTRIBUTOR

The distributor distribute in scooping parlours, retail-shops and roadside vendors.


AMUL SCOOPING PARLOUR:

An owned or a leased air-conditioned shop of 300 sq.ft. at a prominent


location

An estimation for set-up amul scooping parlour:

• Refundable Brand Deposit Rs. 100,000/-


• Renovation & interiors Rs. 75,000/-
• Equipment Rs. 150,000/-
• Working Capital Rs. 25,000/-

Total Rs. 350,000/- *

• Approximate Figures

Equipments Required

Cost in
Equipments
Rs.
Scooping Cabinet with SS bowls 30,000
Waffle Cone Machine 13,000
Mixer/Grinder 3,000
Cone Holder/Toppings Tray for placing
1,000
Sauces, Nuts etc.
Visi-Coolers 28,000
Deep-Freezers - 2 Nos. 50,000
POS Machine 25,000
Total Cost 150,000
ROI - Indicative Statement

Total in Rs.
Sales (Value per month) 150,000
Gross Margins Earned 75,000
Less: Electricity 5,000
Less: Rentals 20,000
Less: Manpower 10,000
Net Profit per month 40,000

Operation

The franchisees shall be supplied with pre-packed Amul Ice-Creams/Amul


products in different varieties and volumes as per their requirement through
authorized wholesale distributors. The franchisees shall purchase necessary
toppings, sauces and consumables from approved vendors/brands. The
products to be sold from these parlours would be as per the recipes and
prices approved by Amul.

Agreement

An agreement would be executed between the franchisee and GCMMF Ltd.


as per the standard draft finalized by GCMMF Ltd.
PIC:PRODUCT DISPLAY IN A SCOOPING PARLOUR LOCATED IN G.S ROAD
PIC: DISPLAY OF SCOOPING PARLOUR
Amul scooping parlour draws good response from the customers.

In guwahati, amul scooping parlours is earning handsome profit. The success story is due
to Amul brand name and higher profit margin in ice-cream.
Roadside vendors:

These are movable shop. they use to sale product in places of higher
gathering like in front of shopping mall, in front of park, movie hall, in front
of zoo and near any function like bihu stage etc. they move from place to
place to draw customer.

These are usually low cost ice-cream ranging from Rs-10/ while minimum
range in scooping parlour is Rs-10/.
Retail-shops:

These are shops who sale other products of different commodities along with
sales amul products including Amul ice-cream.

These shop can be used as publicity media for Amul ice-cream by product
leaf-let display…
SCOOPING Roadside vendors Retail-shops
PARLOUR

Exclusive store, sales Movable store, sales Sale Amul along with
only Amul products. only Amul product other brands.

Sale all ranges of Sale only ice-cream Sale all ranges of


product manufactured product manufactured
by amul like amul by amul like amul
paneer, amul pizza, paneer, amul pizza,
butter etc. butter etc along with
other brand also
Highest investment Lower investment Lower investment
required.
ORGANISATION STRUCTURE OF
AMUL
STORAGE OF AMUL ICE-CREAM:

Ice-cream storage is important aspect of quality maintenance. Ice-cream product should be


monitored carefully through out the production to delivery to the customers. The store house
temperature is upto 0 to (-) 15 degree (minus). The transportation of product also done in cold
storage.

PIC: AMUL ICE-CREAM STRE-HOUSE AND MAINTAINANCE ETC.

The products arrive from gujrat plant to guwahati in cold storage. Products are unloaded
carefully and moved to godown in deep fridge. The whole process is carefully monitored by
dedicated Amul workers nad employee.
Competitors:

Baskin-Robbins is a global chain of ice cream parlors founded by Burt Baskin and Irvine
Robbins in 1953, from the merging of their respective ice cream parlors, in Glendale, California.
It claims to be the world's largest ice cream franchise,[1] with more than 5,800 locations, 2,800 of
which are located in the United States. Baskin-Robbins sells ice cream in over 30 countries,
including Nepal, Canada, Japan, Mexico, The Dominican Republic, Bahrain, The United
Kingdom, the United Arab Emirates, Egypt, Saudi Arabia, Australia, the Philippines, Thailand,
Indonesia, Malaysia, China, Bangladesh, South Korea, India, Sri Lanka, Pakistan, Panama and
the Republic of China (Taiwan).[citation needed] The company is headquartered in Canton,
Massachusetts.[2]

The Baskin-Robbins ice cream parlors started as separate ventures from Burt Baskin and Irv
Robbins, owning Burt's Ice Cream Shop and Snowbird Ice Cream respectively. Snowbird Ice
Cream featured 21 flavors, a novel concept for the time. When the separate companies merged in
1953, this concept grew to 31 flavors.[3]

Baskin-Robbins is known for its "31 flavors" slogan. The idea for having 31 flavors came from
the Carson-Roberts advertising agency (which later became Ogilvy & Mather) in 1953, along
with the slogan "Count the Flavors. Where flavor counts." 31 was also more than the 28 flavors
then famously offered at Howard Johnson's restaurants. In addition, the number 31 was chosen
so a customer could have a different flavor every day of the month (assuming a 31 day month).
Burt and Irv also believed that people should be able to sample flavors until they found one they
wanted to buy ― hence the iconic small pink spoon. During a now famous promotion, Amy
Boggioni led a group of three who finished 31 scoops of all 31 flavors in under 31 minutes.
MOTHER DIARY:

A emerging brand mainly operating in Delhi, Mumbai, U.P etc. but it has shown rapid growth
and prospective competitor of Amul.

Type Cooperative
Industry Dairy
Founded 1974
Headquarters Delhi, India
Sanjay Sinha, CEO, Mother Dairy
Key people India Ltd Mr. Sunil Bansal CEO
Hortilculture SBU
Products MILK, ICE-CREAM ETC
Employees 2500
Website www.motherdairy.com
Kwality Ice Cream

Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing


industry and in 1956 became the first company in the country to use
imported technology for manufacturing ice-cream on a commercial scale. As
the ice-cream industry exploded in India, in 1995 Kwality Group joined
hands with Hindustan Lever Limited and then there was no looking back. The
Indian consumer market was introduced to “KWALITY WALLS” – the result of
a collaboration between global brand Walls and the leading Indian ice-cream
brand Kwality. Though the two giants eventually parted ways, the
collaboration made Kwality a household name and created deep in roads for
the brand in the consumer market.

Today, Kwality is not just a brand – it is the ice-cream associated with the
Indian summer; it’s the first choice in ice-cream for any child or adult during
the scorching Indian summers. Kwality ice-creams are trusted not only for
their rich, creamy flavors, but also for their trusted quality and nutritious
food value.
PART- 2

PROJECT
OVERVIEW
INTRODUCTION:

The food industry is the complex, global collective of diverse businesses that together supply much
of the food energy consumed by the world population. Only subsistence farmers, those who survive
on what they grow, can be considered outside of the scope of the modern food industry.

GCMMF is India's largest food products marketing organization.. 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 affordable quality products. GCMMF markets and
manages the Amul brand. From mid-1990s Amul has entered areas not related directly to its core
business. Its entry into ice cream was regarded as successful due to the large market share it was
able to capture within a short period of time - primarily due to the price differential and the brand
name. Amul has become the market leader in this food industry in India. As other products like
butter, ghee, milk, paneer; ice-cream of amul also got huge customer response.

CONSUMER OF ICE-CREAM AND THEIR BUYING BEHAVIOUR:

The ice-cream can be neither treated as luxury product nor basic need of the customer. Generally the
targeted segment customers are middle class, upper middle class and upper class. So, the diverse
range of customer has lot of determinants for choosing a particular brand or product. Different factor
influence their buying behaviour. Hence, the consumer buying behaviour is complex and in this
project different aspect of consumer buying behaviour is studied. According to Philip Kotler,
complex buying behaviour involves a three step process. First, the buyers develop beliefs about the
product. In amul, the brand image is very good among the customer. So, due to good brand image the
customers develop an automatic goodwill about the product. Second, he or she develop attitudes
about the product. Here, as the product is ice-cream; the developments of attitude depends mostly on
flavour, taste, price etc. . . Third, he or she makes a thoughtful choice. To convert their belief about
the product to make it first choice of the customer, this project has been prepared.

Many products are brought under conditions of low involvement and the absence of significant brand
difference. Consumer has little involvement in this product category. They go to the store and reach
for the brand. With the products, consumer behaviour does not pass through the normal sequence of
belief, attitude and behaviour. Consumer do not search extensively for information, evaluate
characteristics, and make a decision on which brand to buy. Ice-cream is also of same category where
the buying decision does not involve brand study and different attribute of the brands. But, when the
customer is keep buying the same brand, it is due to habit not brand loyalty
Hence, the dealers, parlor and roadside vendor should try for make a habit of buying amul ice-cream
among the segmented customers.
Special flavor of Amul:
AIMS AND OBJECTIVES:

TDATA COLLECTION: DATA WILL BE COLLECTED FROM PRIMARY, SECONDARY


AND TERITIARY SOURCES. BUT THE EMPHASIS WILL BE GIVEN ON PRIMARY
DATA.

4. PRIMARY DATA: Primary data, which are the major source of information for the
project, will be collected by way of preparation of well-structured questionnaire and
personal interviews and observations will be conducted to collect the staff and candidate,
through this questionnaire.

5. SECONDARY DATA: To make the study better, secondary data will also be collected y
way of editorials, journals or extracts from magazines and newspapers.

6. TERITIARY DATA: A massive amount of information will be accumulated from


various related websites of internet.

DATA ANALYSIS: Data Analysis will be done and is important for any project because the
raw data is of no use and does not convey the awareness among the youths.

DATA REPRESENTATION: Data will be represented in cross tabular formats. The data
collected through questionnaires will be arranged in a tabular form for the purpose of effective
study and in depth analysis and interpretation. Use of percentage, charts, graph line etc. will be
made for the study if necessary.

SCOPES:

The area of study of this project will be in the guwahati city.


The study will mainly concentrate on the customer perception and preference on the particular
product (ice-cream) of amul.

The key focus area of the study will be to assess the reason behind buying behaviour of this
segment of customers. The sample of customers for my study will be around 75-100.
The sample will include all the buyers of amul irrespective of age, sex and profession. The basic
aim behind my study is to find out the key to make the band most proffered brand by studying
the need and preference of customers.

LIMITATIONS:
2) Time Constraint : The time for undertaking the project will be limited and needs to
be completed within the stipulated period which will make it difficult for analyzing
each and every sphere involved in the research.

5) Cost Constraint: The cost involved in the research will have to be minimized because
conducting research will be costly.
6) Geographical Constraint: It will also be one of the limitations. As to all and it will not be
possible to carry it out elsewhere.
7) Other Constraint: Every study faces this shortcoming of respondent bias. Respondents
sometimes are non-responsive and their moods and behaviour are hard to predict which
may not give accurate results.

3. METHODOLOGY

A. DATA COLLECTION:

I. Primary data: Primary data were collected from the people through
questionnaire interview personal observation etc.
II. Secondary data: Secondary data were collected from relevant document,
book-lets, etc.
III. Tertiary data: Internet.

Primary data was collected with the help of Pre framed Questioner is shown in the Appendix
of this report. The questionnaire was framed with the needed information in mind. The
questionnaire contains Structured and Unstructured questions. Structured questions are Multiple-
choice questions, Ranking questions. Unstructured questions are open questions.
B. DATA REPRESENTATION:

Collected data are presented in suitable diagrammatic representation tabulation, graphs, bar
diagram, pie diagram etc.
ANALYSIS
DEALER DATA ANALYSIS:

SALES ANALYSIS IN THE MONTH OF FEB’2010 TO GET AN IDEA OVER


CUSTOMMER PREFERENCES:

The sale of product is counted in two different package called block and gallon. One block is
consisting of two litters and one gallon is equals to 5 liter of ice-cream. The parlors used to scoop
from the block and gallon for retail sale.

Sale of block in different flavour in the month of February in Maruti collection. (One of the
leading outlet of amul in guwahati)

Sale of blocks:( 1 block= 2 lit)

FLAVOUR NO OF BLOCK SALE

Chocolate 8
Sahi-anjir 8
Strawberry 11
Swirl- chocolate 13
Sugarfree-anjir NIL
Sugar free chocolate 1
Cake-chocolate 3
Cake-strawberry 6
Exotica (fruit salsa) 4
2 in 1 13
NO. OF B L OC K S AL E
14
12
frequenc y of

10
8
s ale

6
4
2
0

C a c ho jir
S w r a w jir

ui er ry
C a - ch la te
e
S u c ho rry
e

1
ica ra w e
at

sa
g e e r o la t
an
S t -an

in
E x e - s c o la
be
ol

al
ke c o

2
e
i
oc

ts
ah

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o
Ch

Sh

t
(f r
-

e
irl

re

k
ot
Su

F la vours
NO. O F B L O C K
S ALE

Fig: graphical representation of sales of no. of block in the month of feb”2010 in Maruti
Collection

INTERPRETATION: Among the different flavour; chocolate, strawberry sales are higher with
compared to others. People are less interested in sugar free ice-cream. People like the fruit
flavors of ice-cream and the sale of fruit flavour is increasing day by day (according to the sales
man).
Sale of scoop:

Flavour No.of scoop


sale
tutti-frutti: 48

chocolate/choco-chips: 186

strawberry: 64

afgan dry-fruit: 55

Spanish-saffron with cream 33


ball:

Orange-fruit: 14

alphanso-mango: 45

Butter scotch: 156

Kaju: 28

30
Sahi-anjir:

Tender-coconut: 15

Honey banana: 24

Vanilla: 126

Black-current: 120

2 in 1: 73

Kesar pista: 76

Sugar free coconut: 22


Now , let have a look on the price-list of some of the best-selling of flavour:

FLAVOUR PRICE(SINGLE SCOUP)


VANILLA 20
ORANGE FRUTI 25
STRAWBERRY 20
CHOCO-CHIPS 30
2 IN 1 20
BUTTER SCOTCH 25
HONEY BANANA 30
SAHI-ANJIR 30
TUTI FRUTI 25
KAJU DRAKH 30
AFGAN DRY FRUIT 30
TENDER COCONUT 30
SPANISH SAFFRON WITH CREAM 30
BALLS
MANGO 30
BLACK CURRENT 30
SUGAR FREE SAHI-ANJIR 30
SUGAR FREE CHOCOLATE 30
KESAR PISTA 30
Customer feedback:
(1) Which flavour of ice-cream you like most?

FLAVOUR NO.OF CUSTOMERS’ FIRST PERCENTAGE


CHOICE
VANILLA 16 25%
STRAWBERRY 8 12%
BUTTER SCOTCH 16 25%
KESAR PISTA 8 13%
CHOCOLATE 6 9%
FRUIT FLAVOUR 8 13%
OTHERS 2 3%
TOTAL 64 100%

INTERPRETATION: It is seen that, price has been a deciding factor to middle class for
choosing the flavour. Apart from this, strawberry, vanilla and butter scotch have been the most
preferred choice of customer. One more interesting finding is that , most of people who are not
regular customer used to ask the sales person about the flavour and their buying decision is to lot
a extent depends on the comment of the sales-man. Usually, people prefer single scoop of ice-
cream. Another, important fact is that, the display influenced buying decision, specially for the
roadside vendors who used to sale in different place
(2) How you choice ice-cream?

BUYING DECIDING FACTOR NO. OF PERCENTAGE


RESPOND
FLAVOUR 40 61%
PRICE 16 24%
BRAND 8 12%
ADVERTISEMENT 2 3%
OTHERS 0 0%
TOTAL 66 100%

INTERPRETATION: For the ice-cream customers, flavour and taste is more important than
brand loyalty. Price is an important factor while the advertising of amul ice-cream have less
impact on customer buying behaviour.
(3)how much usually you can afford for buying an ice-cream?

PRICE(Rs) NO. OF RESPONDANTS PERCENTAGE


5 to 20 28 38%
20 to 50 22 30%
50 to 100 20 27%
More than 100 4 5%
TOTAL 74 100%

INTERPRETATION: From this question, I have tried to analyze the buying capacity of
customer. Customer usually prefers the low range ice-cream. Ice-cream can’t be treated as luxury
need of customer.
(4)Which season you buy more ice-cream?

SEASONS SALES PERCENTAGE


JAN-MARCH 8 11%
APRIL-JUNE 32 42%
JULY-SEPTEMBER 16 21%
OCT-DECEMBER 4 5%
ALL SEASON 16 21%
TOTAL 76 100%

INTERPRETATION: To determine the peak-season of ice-cream this question will help. It is


seen that April-June is the peak-season and company need to advertise mostly during this season.
(5) From where you buy ice-cream most often?

Buying habbits of customers No. Percentage


From restaurant 6 11%
From specific ice-cream parlor 32 59%
From road side vendor 16 30%
Others 0 0%
TOTAL 54 100%

INTERPRETATION: the specific parlor and road side vendor are most preferred market that
customer used to buy ice-cream product due to availability and variety. The company can allot
more such shop for market penetration.
(6) How many brand of ice-cream do you know?

No of brand known No of respondent Percentage


1 8 14%
2-4 32 57%
None 0 0%
more than 4 16 29%
TOTAL 56 100%

INTERPRETATION: Brand knowledge of ice-cream customer is limited to usually 2-4 brand.


The major brand available is the market are: Amul, Kwality, Red-Ribbon, Baskin Robin, Big-
One and some other local brands. The brand awareness plays limited role in the selection of ice-
cream product, as the customers are not brand-loyal to only a particular brand. The availability of
brand in their locality is the major factor for the buyers.
(7) Have you seen advertisement of Amul Ice-Cream?

OPENION NO. OF
RESPONDENTS
yes 24

no 27

TOTAL 51
PIC: AMUL ADVERTISEMENT

INTERPRETATION: Amul advertising is limited to few T.V program. Amul used to advertise
in television media as well as hoardings (outdoor). Amul have telecasted their advt. in some
reality show which is definitely helpful to draw segmented customer. Amul should make its
advertisement in sports events like IPL, cricket match etc to draw huge publicity. Amul’s unique
advertising method is it’s hoardings. Amul changes its hoardings in every week and the topics of
hoardings are related to recent topic/news. This is unique and contemporary. This is amul’s
traditional advertising and it has got many acclaimed.
(8) Which brand of ice-cream you like most?

INTERPRETATION: Amul, most preferred brand of ice-cream in India . As I was interrogating


with only Amul customer , so I got all the vote for amul. The limitation of my survey was only to
the amul customer , so I could not determine the most preffered ice-cream brand in guwahati.

9) how many flavour do you know?

FLAVOR RESPOND NO.s PERCENTAGE

2 10 19%

3 to 5 18 34%

less than two 10 19%

moe than 5 15 28%

TOTAL 53 100%

INTERPRETATION: people usually knows more than 3 flavour.


10) Are you aware of the calorie present in your ice-cream?

RESPOND NO.s PERCENTAGE


yes 30 59%
no 21 41%
TOTAL 51 100%

INTERPRETATION: Almost 60% of ice-cream customer knows about the calorie present in
ice-cream.
11) Do you consider the amount of calorie present in ice-cream while you buy it?

RESPONDS NO.s PERCENTAGE

yes 17 34%

No 33 66%

TOTAL 50 100

INTERPRETATION: though people’s awareness of caloric present in ice-cream is high (almost


60%) but interestingly, they did not consider it while buying the product.
12) do you like zero-sugar ice-cream?

RESPOND NO.s PERCENTAGE

yes 27 53%

no 24 47%

TOTAL 51 100%

INTERPRETATION: People need variety but as the sales data of dealers indicates, the sale of
sugar-free ice-cream is comparatively lower. The targeted customer is still untapped.
13) When you preferred ice-cream most?

PERCENTAGE
at birthday/marriage party 16 37%
on workplace 4 9%
on sunny day 16 36%
after dinner 8 18%
TOTAL 44 100%

after dinner
18% at
birthday/marriage
party
37%

on sunny day
36% on workplace
9%

INTERPRETATION: People love ice cream in sunny days (April -June mostly).In family
parties also people want ice-cream product. Dealers can contact with hotel, lodge, bibah-bhawan
(rented lodge foe marriage party) for bulk supply in these occasion.
14) Have you ever ordered huge volume of ice-cream for your family party like
birthday/marriage etc?

INTERPRETATION: In this question, it is seen that the respondent of parlours have mostly
ordered in bunk for their family party, while the customer of roadside vendor have rarely ordered
in bunk. This may indicate that it is still away from the lower class and lower-middle class
people due to price beyond their budget.

15) How often do you buy ice-cream?

RESPONDS NO.s PERCENTAGE


every day 0 0%
once in a week 16 43%
in every month 17 46%
occasionally 4 11%
TOTAL 37 100%

INTERPRETATION: Customer used to buy in every week and at least in every month
16) Do you like fruit flavour of ice-cream?

RESPOND NO.S
yes 32
no 19

INTERPRETATION: More than 60% likes fruit flavour. The potential of sale of fruit flavour is
immense. Company should advertise this category product for more sale.
17) Where you prefer ice-cream out-lets?

RESPOND NO.s
near school/college 4
in multiplex/hall 18
in marketplace 18
all the above 20

INTERPRETATION: People like to have ice-cream product at their convenient place. Students
need it near their campus etc. Amul should work on availability of ice-cream product at
customer’s convenient.
18) do you think branded ice-cream are affordable for middle class and lower middle class?

RESPOND NO.s PRECENTAGE

yes 30 59%

no 21 41%

TOTAL 51 100

INTERPRETATION: 60% people thinks that it is convenient for customers.


19) How did you come to know that amul has ice-cream product also?

RESPONDS NO.s NO.s IN PERCENTAGE

seeing advertisement 22 44%

seeing outlets 21 42%

from friends 7 14%

Others 0 0%

TOTAL 50 100

others
from friends
14% 0%
seeing
advetisement
44%
seeing outlets
42%

INTERPRETATION: Amul ice-cream parlor, movable vendors and advertising is the main
ingredients for the success of amul ice-cream .
SWOT ANALYSIS:

STRENGTHS WEEKNESS

 Good brand name  Less brand loyal customer in its


 Goodwill of customer towards segment
the product  Less advertising
 Variety product  Unavailability of product in semi
 Availability urban and rural market
 Quality of the products  Less sale in some variety like sugar
free etc.

OPPURTUNITY TREAT

 Untapped rural and urban market  New market entry.


 Future demand of low calorie and  No of Competitor increasing.
sugar free ice-cream product  Customer’s changing taste.
 Customer range .(middle class to  More outlets of competitor
upper class)
BCG Matrix:

Due to immense growth rate and high market capture, amul ice-
cream is definitely in the “STAR” position of BCG Matrix.
FINDINGS

From dealer data analysis-

4. Among the different flavour; chocolate, strawberry sales are higher with compared to
others.
5. Display influences the sale of the particular product.
6. New customers used to take opinion from sales person. They should be well trained and
well behaved.

From customer data analysis-

11. Price is the determinant for the middle class ice-cream customer.

12. Customers are less brand loyal.

13. Customer used to prefer ice-cream which is in the range of Rs.-5 to Rs.-20

14. Due to less brand loyalty, customer used to buy product from their most convenient shop.

15. People need variety but as the sales data of dealers indicates, the sale of sugar-free ice-
cream is comparatively lower. The targeted customer is still untapped.

16. People are aware of caloric value (60% customer) of ice-cream, but interestingly, they do
not consider this aspect for choosing ice-cream.

17. People fond of fruit flavour of ice-cream. The future market of this type is seems to be
higher, Amul should advertise these type of products.

18. Almost 60% customer think branded ice-cream are affordable for middle class and lower
middle class.

19. People love ice cream in sunny days (April -June mostly).In family parties also people
want ice-cream product. Dealers can contact with hotel, lodge, bibah-bhawan (rented
lodge foe marriage party) for bulk supply in these occasion.
20. Amul ice-cream advertising is not very much effective one. 54% customers have never
seen amul ice-cream advertising. In this field, the company needs improvement.
RECOMMENDATION-

FROM DEALER’S POINT OF VIEW:

The display of the store should be good enough and the sales man should be well-trained
and well-behaved. Sometimes, sales man influences buying decision making process, so,
they should not miss guide to retain the customer.

The dealer and distribution can contact to hotels, marriage hall, and conference hall for
frequent bunk supply. They may float some contest, incentive program at their local
level.

The quality of product of the roadside vendors of should be regularly inspected. They are
movable vendors and they may sale product of other brands or products at higher MRP.
This may affect brand image. So, they should be properly monitored.

The advertising like hoardings, banners should be properly used.


FROM customer’s POINT OF VIEW:

The product should be available in all places. Customer of outside guwahati has
demanded ice-cream parlor at their native place.
The sugar-free ice-cream should be advertised to capture targeted segment.
Introduce more outlets and pro-biotic varieties and advt about having benefits of healthy ice-cream
By introducing more flavour like competitor Baskin Robin who introduced 31 flavour for 31 days of a
month. i.e. different flavour for each day.
The brand image of Amul is good among buyers, company should take advantage of brand image and
can print ice-cream ad in amul butter, amul milk etc high selling products.
44% of customer have come to know about amul ice-cream from amul ad. So, the
advertising have an impact on ice-cream customer and Amul advertise should be shown
in prime time.
Like telecom sector, Amul can publish localized advertise with theme of local festival
like bihu and puja, to boost sale.
CONCLUSION-

First of all, I Would like to express my sincere thanks and gratitude to Mr. Jayanta Madhab
Goswami and Mr. Tapas Ganguli who entrusted me this wonderful opportunity to do a project
under his guidance that eventually provided me an opportunity to learn about the importance of a
Brand for a company. It is an eye- opening experience for me on the importance of “Consumer
satisfaction and perception” for a Company. A company would be wise to measure customer
satisfaction regularly, because one key to customer retention is customer satisfaction. From the
above study I can came to the conclusions that-

a. The amul ice-cream is market leader and it have good perception among the
customers about it’s quality.
b. Amul has become the most preferred food manufacturer in the country.
c. It’s success is important in such a point that it is a co-operative company and it
has become an idol in this category.
d. The ice-cream market is growing fast and still a lot of potential and untapped
market is available.
e. The customer mainly focuses on flavor more than brand while selecting an ice-
cream.

The project will help me to understand different aspect of corporate such as branding,
distribution, storage, quality maintenance and aspects of new business set-up apart from the idea
of handling and satisfying customers.

I wish Amul to be a global brand (it has already starts business in gulf countries etc) and earn
laurels in abroad also. T he days of my project will be memorable for me for the practical
exposer and for this I will be always wish Amul to be a reputed global brand.
PART- 3
APPENDIX
THE QUESTIONNAIRE

Dear Respondent,
I am a student of MBA study in Central IT College (a unit of ERD Foundation) Under
“SIKKIM MANIPAL UNIVERSITY”. As a part of our course
curriculum I am undergoing my project on “A study on consumer perception on amul ice-
cream”, in Guwahati”.
Your kind co-operation in this regard will help me in ultimate fulfillment of my
project and its objectives. I assure all information provided by you are meant for academic
purpose and will be strictly confidential.

THANKING YOU
ANJAN DEKA

1)which flavor of ice-cream you like most?


a) vanilla b)strawberry C)butterscotch d)kesar-pista d)chocolate e)fruit flavor f)others

2)how you choose your ice-cream?


a)considering flavor b) considering price c) considering brand d) considering advt. e)others

3)how much you can usually afford for an ice-cream?


a)0-20 b)20-50 c) 50-100 d) more than 100

4) which season you buy more ice-cream?


a) Jan-march b)April -June c)july_sep d)oct-dec

5) from where you buy ice-cream most often?


a) from restaurant b)from specific ice-cream parlor c) from road-side vendors d) others

6)how many brand of ice-cream you know?


a)1 b)2-4 c)none d) more than 4

7) have you seen any advt of amul ice-cream?


a)yes b)no

8)which brand of ice-cream you like most?


a) amul b) kwality c) red-ribbon d)others
9)how many flavor of ice cream do you know?
a)2 b)3-5 c)less than 2 d)more than 5

10) are you aware of calorie present in your ice-cream?


a) yes b) no

11)do you consider the calorie present in ice-cream when you buy it?
a) yes b)no

12) do you like to have zero sugar ice-cream?


A0yes b) no

13) when you want ice-cream most?


a) at birthday party / marriage party
b)on workplace.
c)on sunny day
d)after dinner

14)have you ever ordered huge volume of ice-cream for your family party like birthday /
marriage?
a) yes b) no

15)how often do you buy ice cream?


a) every day b) once a week c) in every month d) occasionally

16) do you like fruit flavor ice-cream?


a)yes b) no

17) where you prefer ice-cream outlets?


a) near school /college b) in multiplex/hall c) in marketplace d) all the above

18) do you think branded ice-cream are affordable for middle class and lower middle class?
a) yes b) no

19) how you come to know that amul has ice-cream products?
a)seeing advt b) seeing outlets c)from friends d)others
20) do you like to give some advice for amul ice cream or about it’s positive and negative
points?

…………………………………………………………………………………………..
……………………………………………………………………………………..
……………………………………………………………………………………………
……………………………………………………………………………………………….
……………………………………………………………………………………………..
RESPONDANTS NAME-
PHONE NO-
EMAIL-
PLACE-
1. Marketing Management
Indian Background
By C. N. Sontakki

2. Marketing Management
By Philip Kotler

3. Business Today (Magazine)


REFERENCES

1. www.amul.com
2. www.google.com
3. http://www.ibisworld.com/samples/industry/default.aspx?cid=1
4. http://www.indiadairy.com/ind_swot.html
5. http://www.oppapers.com/search_results.php?action=search&query=amul+ice-
cream
6. http://www.scribd.com/doc/19978355/Amul-ppt-Presentation-Largest-Food-Brand-
in-India-Asia
7. http://www.slideshare.net/ResearchOnIndia/ice-cream-market-india-sample-
1677552

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