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A PROJECT REPORT ON AMUL ICE CREAMS AND PROJECT WORK ENTITLED AS

“AMUL ICE CREAMS (SALES AND MARKETING)”

THIS STUDY WAS CONDUCTED FROM 9TH APRIL TO 19TH MAY.

AT
GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LIMITED

BY:
KETAN GAJANAN BANKAR
PGDM
OF

A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

SUMMER INTERNSHIP

FACULTY GUIDE:
Dr.Priya Kenkare

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 ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for Gujarat Co-operative
Milk Marketing Federation Ltd. It has been an enriching experience for me to undergo my
summer training at “GCMMF”, which would not have possible without the goodwill and
support of the people around. As a student of “United world School of Business”, Mumbai. I
would like to express my sincere thanks too all those who helped me during my training
program.

I would like to express my gratitude to all those who gave me the encouragement to complete
this project. I would like to thank my college authorities and Director Dr.Krishna Ram, for
providing me the opportunity to work with the one prestigious
Organization.

I would like to give my heartily gratitude to the Mr. S R Nagale,Manager(SALES), GCMMF

Ltd.,Mumbai for having given me the opportunity to do my project work in the organization
and lighted my way of progress with his guidance.

My sincere and deepest thanks to Dr.Priya Kenkare, Faculty Member of Unitedworld School
of Business, Mumbai for having spared his valuable time with me and for all the guidance
given in executing the project as per requirements.

However, I accept the sole responsibility for any possible error and would be extremely
grateful to the readers of this project report if they bring such mistakes to my notice.

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 DECLARATION

The following summer internship project report titled “Sales of Amul Ice Creams in Catering
Industry” at Gujarat Co-operative Milk Marketing Federation Ltd., Mumbai from 21st May
2010 to 8th June 2010 is here by approved as a certified study in management carried out and
presented in a manner satisfactory to warrant it’s acceptance as a prerequisite for the award of
post-graduate diploma in management (PGDM). For which it has been submitted. It is
understood that by this approval the undersigned do not necessarily endorse or approve any
statement made, opinion expressed on conclusion drawn therein but approve the summer
internship report only for the purpose it is submitted.

Signature Signature
Dr.Priya Kenkare Dr.Ram Krishna

Faculty Guide Director

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 CERTIFICATE

I hereby declare that the following project report titled “AMUL ICE CREAMS (SALES AND
MARKETING) at Gujarat Co-operative Milk Marketing Federation Ltd., Pune is an authentic
work done by me. It is to the best of my knowledge and belief. This is to declare that all my
work indulged in the completion of this Project Report such as research, competitor analysis
and sales promotion is a profound and honest work of mine.

Date: Signature
Mr.Ketan Gajanan Bankar

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 -: Table of Contents:-

Sr.No Topic Page No

1. Title Page 2
2. Acknowledgement 3
3. Declaration of faculty guide 4
4. Certificate of trainee 5
5. Introduction and history 7
6. Report details 14
7. Summary 16
8. Conclusion 17
9. Bibliography 18

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 5. INTRODUCTION AND HISTORY

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 were 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.

However, when the exploitation became intolerable, the farmers were frustrated. They
collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the
freedom movement. Sardar Patel advised the farmers to sell the milk on their own by
establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel
sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai
held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the
farmers to form a society for collection of the milk.

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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 cooperative 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 Cooperative 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 name AMUL.

At the initial stage only 250 liters 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 liters 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 centers 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.

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Amul has been able to:

1. Produce an appropriate blend of the policy makers farmers board of management and
the professionals each group appreciating its rotes and limitations.

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

3. 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.

4. 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
cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION
LIMITED), name which suggest THE TASTE OF INDIA.

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(The Agricultural and Processed Food products Export
Development Authority) award for nine consecutive years

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Plants:

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

Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul

Ganthia and Amul lite.

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Third plant is at Kanjari, which produces cattelfeed.

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

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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.

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GCMFF: PRODUCT PORTFOLIO:

Sr.No Category Market Shares Market Position

1. Liquid Milk. N.A. 1
2. Butter
a. Amul Butter. 85 1
b. Amul Lite, a low fat butter 80 1
spread.
c. Amul Ghee. 8 2
d. Sagar Ghee. 10 1
3. Milk Powder
a. Amul Spray. 65 1
b. Amul Milk Powder. 80 1
c. Amulya, dairy whitener. 60 1
4. Cheese
a. Amul pasteurized processed 50 1
cheddar cheese.
b. Amul cheese spreads in 90 1
three flavors.
5. Ice Creams
a. Amul Ice Creams. 30 2
6. Sweets 50 1
7. Chocolates 10 3
8. Chocolate Drinks 15 4

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 6. REPORT DETAILS

Name of the Institute United World School of Business

Names of team members Ketan G.Bankar

Mohd.Anas

Company Project Guide Mr. Sameer Nagle

Period of SIP 9th April, 2010 – 19th May, 2010

Objectives Learn the basics of Sales & get the knowledge of market

Name of the Distributor Om Sai Marketing

Details of Om Sai Marketing:

1. Owner name Mr.Yogesh.
2. Located at Dockyard road.
3. Temperature of cold storage maintain at -22 degree centigrade.
4. Total outlets supplied 115.
5. Target achieved Rs.17 lakhs in April 2010, Rs.23.50 lakhs in May 2010.

Learning’s:
1. Order taking procedure.
2. How to deal with retailer in case of problems.
3. Communication skills.
4. Stacking of goods.
5. How to build customer relationship.
6. How to maintain and grow market shares.

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Problems faced:
A. GCMMF:
1. Irregular supply of ice creams.
2. Sometimes ice creams are supplied after their expiry date.
3. Updating the price list of the Amul products is a problem as frequent price
changes were observed by the retailers and they found it difficult to manage
price list.
4. Huge problem faced in replacement of damage goods.

B. Distributor:
1. Damage ice creams sold to retailer & there is hardly any replacement give by
the distributor.
2. Shortage of stocks.
3. Delivery problems.
4. Freezer problems.

C. Sales personnel:
1. Less salary and less incentive.
2. Due to non availability of goods, sales personnel have to face problems from
retailers.

Recommendations:
A. SHORT TERM:

1. If the production for the products such as those that are highly in demand in the
market are carried out in a huge quantity would solve the short term problems
such as Irregular supply of goods, increase the sales turnover of the distributors
as well as the company.

B. LONG TERM:

1. To carry out Advertisements for the new arrivals in the market before the
product is available to sell, which would be a better solution for pushing up the
product and creating a demand beforehand.

C. LONG TERM:

1. If the claims for other damages such as party pack and family pack are
provided would be a better solution for the company to build a longer growth
prospect in terms of relationship with the distributors, building customer
loyalty, increase the sales turnover.

2. There seems to be a huge demand of the flavor called “Sitafal “. If this is

produced there could be a huge turnover in the sales.

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 7. SUMMARY

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 COOPERATIVE MILK PRODUCERS' UNION. This union selected
the brand name AMUL in 1955.

The brand name AMUL means "AMULYA". 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. Today AMUL is a symbol of many
things like of the high-quality products sold at reasonable prices, of the genesis of a vast
cooperative network, of the triumph of indigenous technology, of the marketing savvy of a
farmers' organization.

In the early 40's, the main sources of earning for the farmers of Kaira district were 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. The traders used to
beside the prices of milk and the farmers were forced to accept it without uttering a single
word. Sardar Patel advised the farmers to sell the milk on their own by establishing a
cooperative union, Instead of supplying milk to private traders.

He advised the farmers to form a society for collection of the milk. 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 cooperative societies
and to sell them. It was also resolved that the Government should be asked to buy milk from
the union. It gave the negative response by turning down the demand for the milk.

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. 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 cooperative 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 cooperative union, it was commonly resolved to sell the milk under the brand name AMUL.
At the initial stage only 250 liters of milk was collected everyday. But with the growing
awareness of the benefits of the cooperativeness, the collection of milk increased.

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 8. Conclusion

Amul means different things to different people.

To a milk producer – A life enriching experience
To a consumer – Assurance of having wholesome milk
To a mother – A reliable source of nourishment for her child
To the country – Rural development and self reliance

As we know that Amul is very big organization and market leader in dairy products. It has
maximum market share in Milk, Butter, Cheese & Ice-Cream which are its main/core
products. But in case of local market like Pune the Amul milk is not a popular product as
compared to other Amul Products. With the help of research, company can find out its week
points in Milk product and can increase its market share through rectify mistakes. People have
believed in Amul’s product and they will accept it also if effective actions were taken.

The survey resulted into following conclusions:

 Amul must come up with new promotional activities such that people become aware
about Amul Milk like Amul Tazza & Gold.

 Quality is the dominating aspect which influences consumer to purchase Amul

product, but prompt availability of other Milk brands and aggressive promotional
activities by others influences the consumer towards them and also leads to increase
sales.

 In comparison to Amul Milk, the other players such as Chitale, Katraj, Gokul &
Krushnai provide a better availability and give competition to the hilt.

 People are mostly satisfied with the overall quality of Amul Milk, but for the
existence in the local market Amul must use aggressive selling techniques.

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 9. Bibliography

1. www.amul.com
2. www.google.com

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