WELINGKAR INSTITUTE OF MANAGEMENT RESEARCH & DEVELOPMENT

SUMMER PROJECT

ON

MARKET RESEARCH ON TEA BUSINESS IN RURAL AREAS OF GUJARAT FOR

AMUL (OPERATING AREA)

BY

BHARAT CHAWLA

PGDM 2009 – 11 TRIMESTER IV

ROLL NO 12
Certificate
 Preface

Knowing the importance of practical knowledge, M.B.A program has an integral part training
of two months as a practical fulfilment of the course and that’s how we got the opportunity of
working with AMUL. The main objective of practical training at PGP level is to develop skill
in student by supplementing to the theoretical study of business management in general.
Practical Study plays a vital role in the field of education. The
implementation of the management principle in corporate world can be
learned more clearl y through the program s like practical training. It helps to
get acquainted with the industrial environment and helps in understanding
better the industrial problems, opportunities and other situations which occur
in business environm ent. It also provides students to show their skills and
abilit y.

With a view to expand m y boundaries of thinking about implications of the

theoretical kno wledge in practical field, I opted for Summer Internship at
AMUL, situated at Anand, Gujarat. It was r eall y a nice experience for me to
get training in such a reputed organization.

During this training I got a lot of good experience and came to know about the management
practices in real and how it differs from those of theoretical knowledge.

It is a matter of great pleas ure to present this report work, training in the unit
has helped me to gain lots of practical knowledge which I am sure would
benefit me in future.
 Acknowledgement

I take this opportunity to thank ‘Kheda District Cooperative Milk Producers’ Union Limited’,
Anand for providing me this wonderful opportunity. I would also like to mention special
gratitude towards the Managing director of AMUL Mr. Rahul Srivvastava who spared his
time for me to discuss about the feasibility of project and organization requirement.

I express my profound gratitude and deep regards to my guide Dr. Gopal Shukla.

I specially thank Mr. Prakash, Mr. Rana and all the members managing Vehicle Monitoring
Cell, AMUL for their co-operation, suggestions and support throughout the course of this
project.

I am grateful to my project coordinator Mr. Jignesh Bhoi for directing me to the right people
and giving freedom to work at my own pace.

I record with appreciation the help rendered by Mr. Ronak Parekh, Mr. Narendra Upadhyay,
Mr. Pankaj Daboriya and Mr. Rakshit Upadhyay.

I would like to express my heartfelt gratitude to Mr. Raju. M. Patel, Public Works
Department, Anand, for helping me out in obtaining data necessary for the successful
completion of this project.

Sincere appreciation is extended to Prof. S. Dadlani and Prof. Victor Manickam, as internal
faculty guide of Welingkar Institute of Management Development and Research, for
providing me with timely feedback and guidance for efficient execution of the project. This
opportunity was a great learning experience, which would not have been possible without the
support from the management of Welingkar Institute of Management Development and
Research.

My several well-wishers helped me directly or indirectly; I virtually fall short of words to

express my gratefulness to them. Therefore I am leaving this acknowledgement incomplete in
their reminiscence.

Bharat Chawla
Table of Contents

Certificate................................................................................................................................................ 2

Preface .................................................................................................................................................... 3

Acknowledgement .................................................................................................................................. 4

Executive Summary ................................................................................................................................ 6

About Amul ............................................................................................................................................ 7

Overview of the working model of Organization .................................................................... 11

Amul in Tea Market .............................................................................................................................. 13

Project Brief .......................................................................................................................................... 14

Objective of Market Research: ............................................................................................................. 15

Sampling ............................................................................................................................................... 17

Analysis of Data.................................................................................................................................... 23

Market Share ......................................................................................................................................... 24

Research Conducted.............................................................................................................................. 26

Findings .............................................................................................................................................. 126

Recommendations .............................................................................................................................. 128

Bibliography ........................................................................................................................................ 129

Questionnaire: Gujrati ........................................................................................................................ 130

 Executive Summary

The project report contains the detail information about the market survey done for the pre
launch survey of Amul tea. Amul is planning to launch its tea at December, 2010. In the first
phase Amul will be launching its tea in the district of Anand and Kheda. The objective of the
market survey is to know the consumption pattern of tea in the rural areas of Anand and
Kheda district.

The survey was done with the help of Secondary research as well as with the Primary
research. In the secondary research we tried to find out the details of tea market in the country
as a whole, also the market scenario in Gujarat state and market condition in the district of
Anand and Kheda. In the secondary research we also focused on two different things, first is
to know the market leader in different segments of tea industry and the second thing is to
know the strategies of company to make the cost differentiation as well as product
differentiation.

The primary research was done in six different phases. First the open ended questionnaire
was prepared for the exploratory research, to short list the parameters and options that
influence the buying pattern of tea, in the second phase we have collected responses from 20
villages, in third phase of the project we compiled the data over the parameters that are
influencing the buying behaviour, as well as we have tried to find out the point of selling and
point of purchase, during fourth phase of the project we created closed ended questions in
which we have included most of the parameters that are affecting the buying of tea, in fifth
phase we conducted research on the basis on sampling, which we have discussed later in brief
and in the sixth phase which is the last phase of market research we concluded inference on
the basis of affecting parameters as well as socio-economic variations.

The analysis of the data collected with the help of market research was done with the help of
the graphical method. Then the top priorities from every question were taken forward for the
final inference.

This report contains the complete details regarding the above mentioned information.
 About Amul

The Kheda District Cooperative Milk Producer’s Union Limited was established on
December 14, 1946 as a response to exploitation of marginal milk producers in the city of
Anand (in Kheda district of the western state of Gujarat in India) by traders or agents of
existing dairies. Producers had to travel long distances to deliver milk to the only dairy, the
Polson Dairy in Anand – often milk went sour, especially in the summer season, as producers
had to physically carry in individual containers. Their agents decide the prices and the off-
take from the farmers accordingly during 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 to Bombay city in
turn (about 400 kilometres away). India ranked nowhere amongst milk producing countries in
the world in 1946.

The producers of Kheda district took advice of the nationalist leaders, Sardar Vallabhbhai
Patel and Morarji Desai. They advised the farmers to form a Cooperative and supply directly
to the Bombay Milk Scheme instead of selling it to Polson. Thus the Kheda District
Cooperative was established to collect and process milk in the district of Kheda. Milk
collection was also decentralized as most producers were marginal farmers who would
deliver 1-2 litres of milk per day. Village level cooperatives were established to organize the
marginal milk producers in each of these villages. The first modern dairy of the Kheda Union
was established at Anand which popularly came to be known as AMUL dairy after its brand
name. The new plant had the capacity to pasteurize 300,000 pounds of milk per day,
manufacture 10,000 pounds of butter per day, 12,500 pounds of milk powder per day and
1,200 pounds of Casein per day. 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 had just been laid as India had one of the largest buffalo populations in
the world.

We move to year 2000. The dairy industry in India and particularly in the State of Gujarat
looked very different. India for one has emerged as the largest milk producing country in the
world. Gujarat emerges as the most successful State in terms of milk and milk product
production through its cooperative dairy movement. The Kheda District Cooperative Milk
Producers’ Union Limited, Anand becomes the focal point of dairy development in the entire
region and AMUL emerges as one of the most recognized brands in India, ahead of many
international brands.

Starting with a single shared plant at Anand and two village cooperative societies for milk
procurement, the dairy cooperative movement in State of Gujarat had evolved into a network
of 2.12 million milk producers (called farmers) who are organized in 10,411 milk collection
independent cooperatives (called Village Societies). These Village Societies (VS) supply
milk to thirteen independent dairy cooperatives (called Unions). AMUL is one such Union.
Milk and milk products from these Unions are marketed by a common marketing
organization (called Federation).

The AMUL network and its extension that cover the whole country now have the following
unique characteristics:

• It combined market and social development in a highly competitive environment. It

recognized the inter-linkages between various environments that governed the lives of
marginal milk farmers and the unmet needs of the consumers. It also changed the supply
chain paradigm in order to reduce the cost to the consumer while increasing the return to the
supplier.

• It realized that for the movement to succeed it had to benefit a large number of people both
suppliers and consumers. While large scale had the danger of failure due poor control and
management and required more resources, it also had the advantage of creating a momentum
that would be necessary to bring more people into the fold and thereby help more suppliers
and consumers.

• It also realized that until the intermediaries understood the value of service to the marginal
farmers on one hand and the consumers on the other, the task of carrying a large population
of potential suppliers along with them would not be possible. More importantly, the goal
could only be achieved in the long run and this required developing values in people and
processes that were robust, replicable and transparent.

• It also realized that the cooperative would not be independent and viable in the face of
competition if it was not financially sound. This implied that the movement had to develop
distinct capabilities that would deliver competitive advantage to its operations. This would
include long term cost containment, world class deployment of technological resources and
R&D, and better leveraging of scarce resources.

The objective of the network was to deliver profitable and equitable returns to a large number
of farmers for a long period of time. This follows rather directly from the fact that the
member farmers own essentially the network of cooperatives. As explained later, given the
weak economic status of these members, an additional objective was to develop the supplier
over the long term through social change. Consequently, the business model had to include
both the costs and benefits of services that would be needed to deliver milk with high
productivity as well as to assist farmers in improving their social environment. The success of
the network depended on high collection rate of milk. This required increasing membership
with more VSs, raising the number of members per VS, and improving the milk yield (i.e.,
better cattle management), constant concern about the cost to farmers in the network and
delivering quality to customers at low prices. The cooperative had decided as part of its
value:

• to charge for each service provided to the supplier

• to purchase all milk that member farmers produced
• to sell liquid milk at affordable prices so as to serve a large number of consumers
• to develop and deliver services that will improve lives of people in the network
• to hire professional managers, to run the federation and unions, whose values included
upliftment of rural poor.

It is noteworthy that from the very beginning, in the early 1950s, AMUL adopted the network
as the basic model for long-term growth. Two aspects of this network deserve special
attention. First, the network explicitly includes secondary services to the farmer-suppliers.
Second, several of the entities in the network are organized as cooperatives linked in a
hierarchical fashion. In what follows, we describe briefly the environmental characteristics
and the rationale for the underlying business model.

Market / Customers: In comparison with developed economies, the market for dairy
products in India is still in an evolutionary stage with tremendous potential for high value
products such as ice cream, cheese etc. The distribution network, on the other hand, is quite
reasonable with access to rural areas of the country. Traditional methods practiced in western
economies are not adequate to realize the market potential and alternative approaches are
necessary to tap this market.

Suppliers: A majority of the suppliers are small or marginal farmers who are often illiterate,
poor, and with liquidity problems as they lack direct access to financial institutions. Again,
traditional market mechanisms are not adequate to assure sustenance and growth of these
suppliers.

Third Party Logistics Services: In addition to the weaknesses in the basic infrastructure,
logistics and transportation services are typically not professionally managed, with little
regard for quality and service.

Even from the cursory description of the environment provided above, it should be clear that
the traditional management practices of the west are not sufficient for success in emerging
markets. Many MNCs that ventured into India following the first phase of liberalization in
1990s found this at a great cost. The success of GCMMF and AMUL is in glaring contrast to
the experience of these MNCs and thus provides an alternative business model that may be
useful for others considering entry into emerging markets like India.
 Overview of the working model of Organization

Every day, AMUL collects 447,000 liters of milk from 2.12 million farmers, converts the
milk into branded, packaged products, and delivers goods worth Rs 6 crore (Rs 60 million) to
over 500,000 retail outlets across the country.

Based in the village of Anand, the Kheda District Cooperative Milk Producers’ Union
Limited is a co-operative and a democratic institution. It 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. This co-operative is: of the farmers, by the farmers,
for the farmers and managed by professionals appointed by the farmers. It later joined hands
with other milk cooperatives, Banas, Sabar and Mehsana which now form the Gujarat
network. The Gujarat network now covers 2.12 million farmers, 10,411 village level milk
collection centers and fourteen district level plants (unions) under the overall supervision of
GCMMF which sells the products collectively produced by these cooperatives under the
brand umbrella AMUL.

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). (Wikipedia). AMUL has a wide range of
products- milk-slim/gold/regular (each varying in the fat content Gold being richest in fat and
slim milk being lowest in fat content.), Ice creams- pro- biotic/sugar free /regular, butter-
lite/regular, cheese, paneer, chocolates- Choco-zoo/Bindaaz/ Fruitnut etc, flavoured milk,
Buttermilk, Curd(Masti Dhai), Sweets, milk powder, Amul Shakti, frozen pizza and cake. It
recently launched range of breads which are currently sold only in Anand and nearby areas.

Organization Structure

The organization operates by The AMUL Model(also known as ‘The Anand Pattern’), 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 an economy of scale is achieved. As the above structure was first evolved at
Amul in Gujarat and thereafter replicated all over the country under the Operation Flood
Programme, it is known as the ‘AMUL Model’ or ‘Anand Pattern’ of Dairy Cooperatives.
A glance at AMUL at every stage of milk production:
 Amul in Tea Market

Amul had brought milk and butter to breakfast table and have launched bread. Now, Amul
will hold a complete sway over morning breakfast by launching a tea brand as well. Some
member unions of the Rs 6,711-crore Gujarat Co-operative Milk Marketing Federation
(GCMMF), which markets the Amul brand, already, sells tea at concessional rates to their
milk producers. After Banas Dairy in Banaskantha and Sumul Dairy in Surat, Amul Dairy in
Anand and Panchamahals-based Panchamrut Dairy will follow suit.

Without spending a single penny on marketing, GCMMF have been selling 50 tonnes of tea
every month to farmers in Banaskantha district through their existing network from the past
seven years. They procure tea auctioned in Assam through their agent, package it in their
dairy and supply directly to their milk societies. In turn, they sell it to milk producers. Amul
now plans to scale it up to a larger market.

Issues of Adulteration in tea:

The tea prices in the Indian market have not raised much despite in the fall of tea production.
The tea production in India has declined by about 9 million K.g. since last year, but still there
is no major rise in the price of the tea. The reason for this is a large amount of adulteration in
tea. Around 20-25% of the tea sold in the market is adulterated which contains elements like
Cashew nut husk, dung and some colours. Apart from this it is also difficult to increase the
import on tea due to the price trend in India.

So to save its farmer members from the harmful effect of the adulterated tea, Amul is
planning to launch its tea in the rural market of Anand and Kheda district in the first phase.

Apart from this there are other reasons for Amul to enter in the tea market which are

 It has a good access to the villages and can easily reach farmers through its huge
network of farmers
 According to the sample research 90% of the village population use to take tea with
an average of 2.5 cups of tea daily
 Amul has the benefit of its DCS (Dairy Cooperative Society) were 93% of houses
comes either to give milk or purchase milk
 For the second phase Amul has around 5000 Amul parlours and by next one year they
are targeting this number to 10000.
 Project Brief

Amul is planning to launch its tea on December, 2010. In the first phase it is planning to
launch its tea in the district of Anand and Kheda district where it has a huge access in the
market through its farmer members. There are total 18 talukas in the district of Anand and
Kheda having 1131 villages. As Amul is planning to launch its tea we were required to check
the feasibility of the project. Through market research we were required to know the
consumption habit of the people located in the rural area. We were required to know how is
the demand of the tea and what kind of product attributes do they value the most.

We were asked to collect data through secondary and primary research. We also had to find
out who is the presently market leader in tea market of Anand and Kheda district and what is
the reason behind the dominance of the particular brand. We were also required to know at
what extend the target audience are price conscious and at what extend the target audience is
quality conscious.
 Objective of Market Research:

The market research for the Amul tea was done to know the following things:

 Demographics
 Brand Awareness
 Product Requirement
 Place
 Frequency
 Price
 Preference

Demographics:

Demographic is one of the most important in the tea consumption pattern. So with the
help of our primary research we were focusing to find the following things

1. Average number of family members per house

2. Education level of family members
3. Source of income of the family

Brand Awareness:

Rural market is not much brand conscious. Amul is planning to launch its tea with the
brand name of Amul. So it is very important for Amul to know how its target customer’s
values brand and what would be the benefits which Amul will receive by introducing tea with
its brand name Amul in the villages of Anand and Kheda District. With our survey we tried to
analyse the following things:

1. Which are the tea brands of which the respondent is aware

2. How do they came to know about the particular brand
3. What are there perception about different brands

Product Requirement:

Amul is planning to launch tea in the rural areas of Anand and Kheda district. In those
areas large part of the pie consumes tea. So it is very essential to know what kind of tea they
currently consume and what addition qualities would they like to have in there tea. So with
our survey we tried to analyse the following things;

1. What is the number of people who drink tea in a family

2. How many times the consume tea in a day
3. When do they drink tea
4. Which is the current brand they use of the tea
5. What is the reason of using that particular brand of the tea
Place:

Availability of the tea also plays the major role in the consumer goods market. So to
know were to place Amul tea we tried to know the following things from our survey.

1. Currently from were do they buy tea

2. What is the reason of buying tea from that particular place
3. If the tea is made available in the Dairy Co-operative Society would the purchase it
from there
4. Is there the concept of door to door selling is working in that village
5. From were would they like to purchase the Amul tea

Frequency:

Tea is consumed on a regular basis in every house. So with what frequency they visit
the shop and buy tea was important to know. So we tried to know following things in our
survey

1. How many times in a month they purchase tea

2. What is the quantity of tea purchase at a time
3. What is the price of pouch do they purchase form the market

Price:

Price plays an important role in the market. Rural market is highly price sensitive and
rural population finds value for there money. So with our survey we tried to find the
following things:

1. What is the part of there budget they spend behind tea

2. What is the price of the tea which they currently use
3. What is the price they are willing to pay for the particular quantity of the tea

Preference:

From the survey we tried to find out what are the most important characteristic do
they find while consuming and purchasing tea. So we tried to find out following thing:

1. What is the one most important thing which they consider the while consuming tea
2. What is there colour requirement of the tea
3. What is there taste requirement of the tea
 Sampling

Amul is planning to launch its tea in the district of Anand and Kheda. There are total
1131 villages distributed in 18 talukas of Anand and Kheda district out of which there are 8
talukas in Anand district and 10 talukas in Kheda district. There are total 396 villages in
Anand district and 735 villages in Kheda district.

Out of this Amul wants to perform a sample survey of 300 villages. We took a sample ratio
by dividing the total population by required sample size. The sample ratio came to 3.77
which refer that out of every 3.77 villages 1 village is to be selected as a sample. We had
collected data of number of villages in every talukas and then dividing it by sample ratio we
found out what would be the sample size of every particular taluka. After getting the sample
size of every talukas we made the population frequency distribution of every talukas. Then
dividing the total frequency with the sample ratio we got the sample size which is to be taken
from every class for every talukas. Then that number of villages was taken at random from
every class of talukas.
Sampling Method

In order to get the sample size of 300 which represent the population size of 1131 villages the
Cluster Sampling method is used. Hear the Population data was divided into small clusters
according to the population of every villages and then the sample was chosen from every
cluster as per the sample ratio.

The summary sheet of sample is as follows:

No of Sample
District Taluka Village Size
Anand Anand 68 18
Anklav 33 9
Borsad 72 19
Khambhat 60 16
Petlad 63 17
Sojitra 26 7
Tarapur 34 9
Umreth 40 11
Kheda Balasinor 70 19
Kapadvanj 144 37
Kathalal 70 19
Kheda 37 10
Mahemadabad 76 20
Mahudha 37 10
Matar 49 13
Nadiad 69 18
Thasra 106 28
Virpur 77 20
Total 1131 300

In order to get the samples from every type of villages the villages were distributed in 6
different classes according to their population size. Then from those frequencies the sample
size was taken as per the sample ratio. The distribution of villages according to population in
every talukas is as follows.

Anand Anklav
Class Frequency Sample Class Frequency Sample
0-500 11 3 0-500 8 2
500-1000 8 2 500-1000 6 1
1000-3000 10 3 1000-3000 3 1
3000-6000 17 5 3000-6000 8 2
6000-9000 8 2 6000-9000 6 2
9000 and more 14 3 9000 and more 2 1
Total 68 18 Total 33 9
 Borsad Khambhat
Class Frequency Sample Class Frequency Sample
0-500 13 3 0-500 4 1
500-1000 9 2 500-1000 13 3
1000-3000 11 3 1000-3000 8 2
3000-6000 19 6 3000-6000 5 2
6000-9000 7 2 6000-9000 18 5
9000 and more 13 3 9000 and more 12 3
Total 72 19 Total 60 16

Petlad Sojitra
Class Frequency Sample Class Frequency Sample
0-500 11 3 0-500 3 1
500-1000 9 2 500-1000 5 1
1000-3000 6 2 1000-3000 7 2
3000-6000 10 3 3000-6000 4 1
6000-9000 15 4 6000-9000 3 1
9000 and 9000 and
more 12 3 more 4 1
Total 63 17 Total 26 7

Tarapur Umreth
Class Frequency Sample Class Frequency Sample
0-500 9 2 0-500 9 3
500-1000 5 1 500-1000 3 1
1000-3000 3 1 1000-3000 5 1
3000-6000 7 2 3000-6000 7 2
6000-9000 8 2 6000-9000 8 2
9000 and 9000 and
more 2 1 more 8 2
Total 34 9 Total 40 11
 Balasinor Kapadvanj
Class Frequency Sample Class Frequency Sample
0-500 6 2 0-500 25 6
500-1000 11 3 500-1000 21 6
1000-3000 13 3 1000-3000 27 7
3000-6000 19 5 3000-6000 24 6
6000-9000 7 2 6000-9000 26 6
9000 and more 14 4 9000 and
Total 70 19 more 21 6
Total 144 37

Kathalal Kheda
Class Frequency Sample Class Frequency Sample
0-500 12 3 0-500 8 2
500-1000 17 6 500-1000 5 2
1000-3000 9 2 1000-3000 3 1
3000-6000 8 2 3000-6000 8 2
6000-9000 15 4 6000-9000 9 2
9000 and 9000 and
more 9 2 more 4 1
Total 70 19 Total 37 10

Mahemadabad Mahudha
Class Frequency Sample Class Frequency Sample
0-500 19 5 0-500 8 2
500-1000 13 3 500-1000 6 2
1000-3000 11 3 1000-3000 12 3
3000-6000 12 3 3000-6000 4 1
6000-9000 15 4 6000-9000 2 1
9000 and 9000 and
more 6 2 more 4 1
Total 76 20 Total 36 10
 Matar Nadiad
Class Frequency Sample Class Frequency Sample
0-500 11 3 0-500 17 5
500-1000 13 4 500-1000 8 2
1000-3000 9 2 1000-3000 17 5
3000-6000 7 2 3000-6000 11 2
6000-9000 5 1 6000-9000 9 2
9000 and 9000 and
more 4 1 more 7 2
Total 49 13 Total 69 18

Thasra Virpur
Class Frequency Sample Class Frequency Sample
0-500 20 5 0-500 11 3
500-1000 16 4 500-1000 13 3
1000-3000 15 4 1000-3000 10 3
3000-6000 22 6 3000-6000 18 5
6000-9000 17 5 6000-9000 12 3
9000 and 9000 and
more 16 4 more 13 3
Total 106 28 Total 77 20

Then from every village we took 20 responses on an average to know the purchase behaviour
of that particular area. Thus we had a response data of around 6000 responded representing
the population of around 1200000 from 1139 villages.
 Data Collection

Data collection was done through:

PRIMARY RESEARCH:

The primary research involved working on a questionnaire that would enable us to ask the
right questions. For the above purpose we prepared a questionnaire which would give us
insight about the respondent’s income, purchase behaviour, brand loyalty level, brand
conscious and price bearing capacity. The questions also focused on knowing how they value
brands and are they price conscious or quality conscious. The questioner focused on knowing
how the purchase behaviour changes according to there income level and education level. It
also tried to find out who are the consumers of the tea, who are the customer of the tea and
who has the decision making power. Apart from this it was also targeted to know what
motives them to buy particular brand of tea and what Amul should do to penetrate in the tea
market.

Pilot Survey

Before preparing the questionnaire a pilot survey was done with the 100 respondent with the
open ended questionnaire at the villages of Anand and Balasionar Taluka to note the
responses of the respondents. The reason for taking those two Talukas is that Anand taluka is
the most developed Taluka in whole area while Balasonior is lacking in economic
development. So by taking these two Talukas we can get the responses of two extreme ends.
This response was further taken into consideration to make the open ended questionnaire to
the close ended questionnaire. At the time of pilot survey we also had a responses which are
of generic type like ‘good quality’, so to get the specific answers we then modified questions
and added options to know what actually respondent demands and what type of tea they
prefer.

Field word

To obtain the required information questionnaire was prepared keeping the objective of
research in mind. Questions were asked to the respondents to know there perception about
tea. The questions were asked to them to know why they use particular tea and the probable
reasons behind using that tea is are. The questionnaires were asked to around 6000
respondents of around 300 villages of 18 different talukas of the district of Anand and Kheda.
From every villages 20 respondent were taken out of which 10 were males and 10 were
females. Also 8 respondents were taken below the age of 25 and 12 respondents were taken
of above age 25. There were total 8 teams of 4 members each visiting 4 villages a day. The
survey was done for 12 days and at two parts a small meeting was at the presence of every
team to discuss the responses of respondents.

Time allotted for research

There were total 8 teams allotted for the market survey for Amul tea. Each team goes to 4
villages per day which came to total 32 villages per day. The research went on for 12 days
and we were able to collect the data from almost 304 villages. From every villages we had
around 20 respondents and thus we had a data of around 6000 respondents for 300 different
villages representing population of approximately 12 lack from 1131 villages.

Analysis of Data

The data were analysed by various techniques and graphical methods. The graphs
representing data of every question is to be prepared and the conclusion of it is to be taken for
the final inference after putting the total percentage in the grade sheet.
 Market Share

The dominant players in the market of Anand and Kheda district are Waugh Bakri, Mili and
K.K. Apart form this there was also a huge market of the local brands and loose tea’s. There
were also some small players like Sargam, Asian and Udai. The market share of the above
brands is as above

Tea brand Market share

Wagh Bakri 24
Mili Tea 21
Loose 14
Local 12
K.K 11
Sargam 7
Asian 7
Udai 4
Total 100

From the above graph we can see that the dominant players in the market are Wagh Bakri and
Mili Tea, which in total captures 45% of total tea market. Both of these brands are from the
production house of Wagh Bakri. Wagh Bakri targets the customers which are quality
conscious and Mili brand targets the customers which are price conscious.

Wagh bakri has the product packaging in four different ranges of Rs. 7, Rs. 15, Rs. 25 and
Rs. 62. The highest demand out of this ranges were of Rs. 62 of weight 250 gm. These were
the customers who were quality conscious. Apart from this it was also found out that the
people using Wagh Bakri are more loyal to the brands and shown resistance to change their
brand from Wagh Bakri.

Mili is especially for the customers who are more price conscious. It has its packet size of Rs.
1, Rs.2, Rs.5 and Rs. 10. It also has bigger packets of 100 gram and 250 grams but those
packets were less in demand. Mili customers are the type of customers who purchase tea on
the daily basis.

Apart from this there is also a market share of 26% of local and loose players. These are the
brands whose presence is found in relatively small clusters. Local itself a huge brand for the
villagers a part of population trust local brands more than the branded tea. Local tea also has
a good market share as many of the players offers the door to door selling services.
Research Conducted

Questionnaire is divided int o five parts

Part 1: Demographic Study (Question.1 to Question.6)

Part 2: Market Analysis / Source of Penetration (Question.7 to Question.14)
Part 3: Point of Purchase / Point of Selling (Question.15 to Question.18)
Part 4: Current Product Profile / Purchase Profile (Question.19 to Question.23)
Part 5: Expectation from Amul Tea (Question.24 to Question.28)

Questionnaire (Appendix A)

Abbreviations

SO: Single Option

MO: Multiple Options

All figures Underneath: Are in percentage of total responses and no where any figure is in
number of Respondents.
Part 1: Demographic Study
Demographic Figures are the parameters on which we have filtered all the responses and all
the figure that are written underneath are in percentage and no where it is mentioned specially
that is the figure in percentage

Inference

Q1: No. of Family Members in the Family: ____________ (SO)

Inference: Average Family Size: - 5.12 People Per family

Q2: Source of Family Income: (SO)

a) Business
b) Service
c) Daily Labour
d) Farming

Inference: SOI- Business : 20%

SOI- Service : 17%
SOI- Daily Labour : 17%
SOI- Farming : 65%

Q3: Approx Family Income per Month / per Year: (SO)

a) Daily _______________
b) Monthly _______________
c) Yearly _______________

Inference: Average Range: 75 -100 per Day

Average Range: 4000 - 6000 per Month
Average Range: 45000 – 50000 per Year

Q4: Do you give milk to DCS? If Yes than How much: (SO)

a) Yes
b) No

Inference: Members to DCS - Yes: 68%

Members to DCS - Yes: 32%
 If Yes, what will be the average daily milk given to DCS:

a) Below 2 Litre
b) Between 2-5 Litre
c) Between 6-10 Litre
d) Between 11-20 Litre
e) More than 20 Litre

Inference: Below 2 Litre : 7%

Between 2-5 Litre : 40%
Between 6-10 Litre : 16%
Between 11-20 Litre : 3%
More than 20 Litre : 4%

Q5: How many members drink tea in your family? _______________ (SO)

Inference: Percentage of Tea Drinkers per family: 89%

Q6: Highest Educational Qualification in the Family? (It can be Child need not to be
working) (SO)

a) Illiterate
b) Less than 10th
c) Less than 12th
d) Graduate
e) Post Graduate

Inference: Illiterate : 17%

Less than 10th : 54%
Less than 12th : 16%
Graduate : 11%
Post Graduate : 1%
Part 2: Market Analysis / Source of Penetration
Inference:

Q7: Name the companies whose tea available in your Village?

(MO)

a) Wagh Bakri
b) Milli
c) Uday (Soma Bhai)
d) KK
e) Asian
f) Sargam
g) Local Brands / Others
h) Loose / Open Tea

This question is taken into questionnaire to check the level of awareness among villagers to
know their brand awareness about available options, so to find out the competitive
penetration in the nearby shops, nearby towns, door to door salesmen and the responses are
duly filtered on various parameters to check the effect of various parameters on the level of
awareness and after taking all parameters into consideration we ranked options on the level of
awareness among villagers.
Inference:

Q8: How do you come to know about these brands or names?

(MO)

a) Posters
b) Direct Communication / Direct to Home
c) Television
d) News paper
e) Shop keeper’s Influence
f) Word of Mouth
g) Just because it’s the most Cheapest and easily available

This question is taken into questionnaire to check the source of penetration among villagers
to know the best possible penetration strategy which will be value to money for Amul and the
responses are duly filtered on various parameters to check the effect of various parameters on
the source of penetration and after taking all parameters into consideration we ranked options
on the source of penetration among villagers.
Inference:

Q9: What are the Prices of the packages available of these tea or what are the different pack
sizes available?
(MO)

Rs. 1
Rs. 2
Rs. 5
Rs. 7 Up to 25 Gm
Rs. 8 – Rs. 13 50 Gm
Rs. 14 – Rs. 25 100 gm
Rs. 35 – Rs. 62 250 gm
Rs. 70 – Rs. 122 500 gm
Rs. 140 – Rs. 240 1 Kg

This question is taken into questionnaire to check the level of awareness among villagers to
know their potential of buying as well as that how much they know about the pack sizes of
various tea’s available in the nearby shops, nearby towns, door to door salesmen and the
responses are duly filtered on various parameters to check the effect of various parameters on
the level of awareness and after taking all parameters into consideration we ranked options on
the level of awareness among villagers.
Inference:

Q10: Which tea you are currently Using?

(SO)

a) Wagh Bakri
b) Milli
c) Uday
d) KK
e) Asian
f) Sargam
g) Others
h) Loose / Open

This question is taken into questionnaire to check the market share of available options of tea
in the nearby shops, nearby towns, door to door salesmen in kheda and anand district villages
as these are the places where Amul is planning to launch in its phase 1st and the responses are
duly filtered on various parameters to check the effect of various parameters on the current
usage status and after taking all parameters into consideration we ranked options on the level
of usage among villagers.
Inference:

Q11: From how long you are using?

(SO)

a) Less than 1 Year

b) 1-3 Year
c) 4-5 Year
d) More than 5 Year

This question is taken into questionnaire to check the loyalty status of villagers to tea brand
which are available in the nearby shops, nearby towns, door to door salesmen so to analyse
their level of acceptance to new entrants in tea market and the responses are duly filtered on
various parameters to check the effect of various parameters on the tenure and after taking all
parameters into consideration we ranked options on the tenure among villagers.
Inference

Q12: Do you frequently change the tea?

(SO)

a) Yes
b) No

This question is taken into questionnaire to check the loyalty status among villagers towards
change of tea’s available in the nearby shops, nearby towns, door to door salesmen and the
responses are duly filtered on various parameters to check the effect of various parameters on
the loyalty and after taking all parameters into consideration we ranked loyalty on the
percentage of responses among villagers.
Inference

Q13: If Yes, Why?

___________________________________________________________________

This question is taken into questionnaire to check the loyalty status among villagers towards
change of tea’s available in the nearby shops, nearby towns, door to door salesmen and the
responses are duly filtered on various parameters to check the effect of various parameters on
the loyalty and after taking all parameters into consideration we ranked loyalty on the
percentage of responses among villagers.

Responses duly registered by Respondents are:-

Scheme Quality If not available

Availability unavailability whichever available
If not available Quality not available
Generally price not available
Availability Price whatever available
Scheme Price if good
Scheme Colour quality
Generally to test other tea whatever got
Generally Price taste
Scheme quality wahtever got
Scheme availability of different tea new tea
Scheme to try new one if less in home
Scheme if not available price
Quality whatever retailer gives children buy different
Availability whatever gets Whatever available
If not available, other is
Price whatever retailer gives bought.
any one purchase whatever retailer gives money shortage
shortage price factor whichever is cheaper
smell If not available whichever is available
whatever is available KK or
quality Mili whichever is available
quality Sometimes if not Available whichever is cheaper
whatever is available If not Available money shortage
for new try For good Quality finishes early
price change
Inference

Q14: The tea which you are using is available in which sizes?
(MO)

Rs. 1
Rs. 2
Rs. 5
Rs. 7 Up to 25 Gm
Rs. 8 – Rs. 13 50 Gm
Rs. 14 – Rs. 25 100 gm
Rs. 35 – Rs. 62 250 gm
Rs. 70 – Rs. 122 500 gm
Rs. 140 – Rs. 240 1 Kg

This question is taken into questionnaire to check the current buying pattern among villagers
to know their potential of buying as well as current buying status so to know price range of
various tea’s available in the nearby shops, nearby towns, door to door salesmen and the
responses are duly filtered on various parameters to check the effect of various parameters on
the buying pattern and after taking all parameters into consideration we ranked options on the
scale of buying pattern of over various pack sizes among villagers.
Part 3: Point of Purchase / Point of Selling
Inference

Q15: From where do you buy this tea?

(MO)

a) Nearby Grocery Store

b) Nearby Town (In case of Weekly/Monthly Grocery Purchase)
c) Door to Door Salesmen

This question is taken into questionnaire to check the convenient buying spot among villagers
from various spots like nearby shops, nearby towns, door to door salesmen to know the best
spot for penetration after launching tea and the responses are duly filtered on various
parameters to check the effect of various parameters on the best buying spot and after taking
all parameters into consideration we ranked options on the basis of convenience among
villagers.
Inference

Q16: Why do you buy from there? (MO)

a) Easy Accessibility / Nearby

b) Credit Available
c) Trust or Reliability with the Shop or Shopkeeper
d) Binding with the shop or Shopkeeper

This question is taken into questionnaire to check the reason of buying from convenient store
and the responses are duly filtered on various parameters to check the effect of various
parameters on the convenience and after taking all parameters into consideration we ranked
options on the level of convenience among villagers.
Inference

Q17: Who go to buy the tea from the family?

(MO)

a) Respondent
b) Husband (Opposite Member of Respondents)
c) Wife (Opposite Member of Respondents)
d) Child
e) Senior Member (Mother/Father of Respondent)
f) Anyone (In family or Out of Family)

This question is taken into questionnaire to check, who goes to buy the tea among village
families to conclude the thin line of difference between consumer and customer, and the
responses are duly filtered on various parameters to check the effect of various parameters on
the consumer and customer after taking all parameters into consideration we prioritize the
options on the basis of customer among villagers.
Inference

Q18: Who decides which tea to buy? (SO)

a) Respondent
b) Husband (Opposite Member of Respondents)
c) Wife (Opposite Member of Respondents)
d) Child
e) Senior Member (Mother/Father of Respondent)
f) Anyone (In family or Out of Family)
g) Shop Keeper

This question is taken into questionnaire to check, who decides which tea to pick among
village families to conclude the thin line of difference between consumer and customer, and
the responses are duly filtered on various parameters to check the effect of various parameters
on the consumer and customer after taking all parameters into consideration we prioritize the
options on the basis of decision influencer among villagers.
Part 4: Current Product Profile / Purchase Profile
Inference

Q19: What’s so special in that tea? (Value to Money Proposition) (MO)

Taste Colour Molecular Fragrance
Strong Dark Red Colour Molecular (Medium) Natural
Light Medium Red Colour Dusty Masala
Light Red Colour

This question is taken into questionnaire to check the product profile and awareness about the
product used by the villagers to conclude the best product fit for villages, and the responses
we have collected are duly filtered on various parameters to check the effect of various
parameters on the product profile after taking all parameters into consideration we prioritize
the products on the basis of demand among villages.
Q20: Are you getting any scheme in it?
(SO)

a) Yes
b) No

This question is taken into questionnaire to check mode of promotion among villagers to
boost the sales or to promote the certain tea in villages which are available in the nearby
shops, nearby towns, door to door salesmen and the responses are duly filtered on various
parameters to check the effect of various parameters on the level of awareness and after
taking all parameters into consideration, we ranked mode of promotion on the percentage of
respondents among villagers.
Inference

Q21: How many times do you buy in a month?

(SO)

 1 time
 2-3 times
 4-8 times
 9-15 times
 16-30 times
 More than 30 times

This question is taken into questionnaire to check the buying behaviour or number of times
they buy so to design the product pack size accordingly to give the customer feel like
customized order at nearby shops, nearby towns, door to door salesmen and the responses are
duly filtered on various parameters to check the effect of various parameters on the
consumption pattern and after taking all parameters into consideration we ranked options on
the best buy to least buy among villagers.
\
Inference

Q22: Do you buy in Cash or on Credit?

(SO)

a) Cash
b) Credit

This question is taken into questionnaire to check the availability of credit to village
population and are they taking it or not to know the potential of buying of tea’s available in
the nearby shops, nearby towns, door to door salesmen and the responses are duly filtered on
various parameters to check the effect of various parameters on the availability of credit and
after taking all parameters into consideration we rated options on the basis of percentage of
representative responses of villages.
Inference

Q23: For how long the Credit term available to you (SO)

a) Less than 1 week

b) Between 1-3 week
c) More than 3 week

This question is taken into questionnaire to check the availability of credit tenure to village
population and are they taking it or not to know the potential of buying of tea’s available in
the nearby shops, nearby towns, door to door salesmen and the responses are duly filtered on
various parameters to check the effect of various parameters on the tenure of credit and after
taking all parameters into consideration we rated options on the basis of percentage of
representative responses of villages.
Part 5: Expectation from Amul Tea
Inference

Q24: If Amul Launches a Tea then do you buy it?

(SO)

a) Yes
b) No

This question is taken into questionnaire to check the willingness to buy Amul tea so to cut
short the potential customer and interested customer, if tea is made available at nearby shops,
nearby towns, door to door salesmen and the responses are duly filtered on various
parameters to check the effect of various parameters on the willingness to buy and after
taking all parameters into consideration we mentioned the percentage of customer willing to
buy Amul tea among villagers.
Inference

Q25: If No, why so?

--------------------------------------------------------------------------------------------------------------

This question is taken into questionnaire to check the willingness to buy Amul tea so to cut
short the potential customer and interested customer, if tea is made available at nearby shops,
nearby towns, door to door salesmen and the responses are duly filtered on various
parameters to check the effect of various parameters on the willingness to buy and after
taking all parameters into consideration we mentioned the percentage of customer willing to
buy Amul tea among villagers.

Responses duly registered by Respondents are:-

It’s in my nerves from Years

brand loyalty
loyal customer
loyal to wagh bakri
As no Schemes are available
Don’t want to try other than wagh bakri/
house members don’t take tea
Calcutta is the best in colour and taste.
Habituated with that tea.
Problem With Amul
brand loyalty
Inference

Q26: From where would you like to buy that Tea? (MO)

a) Nearby Shops
b) Big Grocery Stores in Town
c) Collection Centres (DCS)
d) Door to Door Salesman

This question is taken into questionnaire to check the best shelf to place product in villages
to get maximum potential market out of Collection Centre nearby shops, nearby towns, door
to door salesmen and the responses are duly filtered on various parameters to check the effect
of various parameters on the convenient shelf to place and after taking all parameters into
consideration we ranked best on the level of percentage of responses among villagers.
Inference

Q27: In what Prices or Sizes do you feel Amul should launch the Tea?
(MO)

 Rs. 1,2,3,  Between 5 gm to 15 gm

 Rs. 5,10  Between 25 gm to 50 gm
 Rs. 10,15,20  Between 50 gm to 100 gm
 Rs. 20 – Rs. 40  Between 100 gm to 200 gm
 Rs. 40 – Rs. 60  250 gm
 Rs. 60 – Rs. 120  500 gm
 Rs. 120 – Rs. 180  1 Kg
 More than 180  1 Kg and More

This question is taken into questionnaire to check the best pack sizes for villagers and to
know their potential of buying and the responses are duly filtered on various parameters to
check the effect of various parameters on the expectations of pack sizes from Amul tea and
after taking all parameters into consideration we ranked options on the level of expectations
among villagers.
Inference

Q28: What do you feel what type of tea will Amul made you available or your expectations?
(MO)

a) Affordable
b) Easily accessible
c) Available at Subsidized Rates
d) Trust and Reliability Maintain in Quality

Taste Colour Molecular Fragrance

Strong Dark Red Colour Molecular (Medium) Natural
Light Medium Red Colour Dusty Masala
Light Red Colour

This question is taken into questionnaire to check the expectation of villagers from Amul tea,
so as to give the best product fit as per the demand and the responses we have collected are
duly filtered on various parameters to check the effect of various parameters on the product
profile after taking all parameters into consideration we prioritize the products on the basis of
expected product profile among villages.
Findings

Part 1: Demographic Study (Question.1 to Question.6)

Average family size : 5.12 Members per family

SOI: SOI- Business : 20%

SOI- Service : 17%
SOI- Daily Labour : 17%
SOI- Farming : 65%

Family Income: Average Range : 75 -100 per Day

Average Range : 4000 - 6000 per Month
Average Range : 45000 – 50000 per Year

Member to DCS: Members to DCS – Yes : 68%

Members to DCS – No : 32%

Milk to DCS: Below 2 Litre : 7%

Between 2-5 Litre : 40%
Between 6-10 Litre : 16%
Between 11-20 Litre : 3%
More than 20 Litre : 4%

Percentage of Tea Drinkers per family : 89%

Educational Qualification: Illiterate : 17%

Less than 10th : 54%
Less than 12th : 16%
Graduate : 11%
Post Graduate : 1%

Part 2: Market Analysis / Source of Penetration (Question.7 to Question.14)

Highest Market Awareness for: Wagh Bakri + Milli (Brand Awareness 44%)
Best Source of Pentration: Shopkeeper / Nearby Shops
Biggest Competitor: Wagh Bakri + Milli (Market Share 45 %)
Loyalty Status: High (More than 5 Years 45%)

Part 3: Point of Purchase / Point of Selling (Question.15 to Question.18)

Best Shelf to Sell: Grocery store Nearby: 55%

Reason of buying from Grocery Store: Easy Accessibility 56%

Part 4: Current Product Profile / Purchase Profile (Question.19 to Question.23)

Who goes to buy tea : Respondent (80% Male) 51%

Who decides which tea to buy : Respondent (80% Male) 47%
Best Fit: Product Profile: Taste: Strong
Colour: Dark Red
Molecular: Medium
Fragrance: Natural
Part 5: Expectation from Amul Tea (Question.24 to Question.28)

Ready to buy: Popularity Level: 96%

Best Shelf Space: DCS + Nearby Grocery Store
Expectation from Amul Tea: Affordable
Expected Product Profile: Taste: Strong
Colour: Dark Red
Molecular: Medium
Fragrance: Natural
 Recommendations

1. Amul Must go for two variants in one go, Amul must try to cater the maximum
market share in first go.

2. Major competitor is Wagh Bakri which is currently offering 6 variants

depending over the user profile, so Amul must try for the same strategy of
offering.

3. There is not much requirement for high funds to be consumed on advertisement,

as according to the survey results advertisements are not making much effect
over the final user but what matters is the availability at nearby store, so Amul
must take care of the supply chain.

4. The product profile matching to the general user trend is to be launched so to

cater maximum share, a new type of product is not necessarily.

5. Amul must use its strong distribution network, which will help Amul to
penetrate in the market very easily

6. Required product profile will make sure that the product acceptance rate would
be higher

7. Apart from the marketing, Amul is outsourcing all its operations so it may not
have the operating burden on itself

8. It has a small channel of distribution which is Amul to DCS and from DCS to
customers so Amul has to provide margin to only one channel which would lower
the cost.

9. First best fit product profile is:

Taste: Strong
Colour: Dark Red
Molecular Size: Medium
Fragrance: Natural

Second best fit product profile is:

Taste: Light
Colour: Medium
Molecular Size: Dusty
Fragrance: Natural
Bibliography

Annual report 2009-2010, Vehicle monitoring division, KDCMPUL, Anand

Anand District road map

Google Earth

United Nations Development Programme

website : http://www.undp.org/

Wikipedia- AMUL
website: http://en.wikipedia.org

AMUL
website: http://www.amul.com/

AMUL DAIRY

website: http://www.amuldairy.com

Market Research

website: http://www.marketresearch.com

www.dairy.com
Questionnaire: Gujrati