SUMMER TRAINING REPORT

On
AMUL LTD.

Submitted in partial fulfillment of the requirements

for the award of the degree of Bachelor of Business
Administration (2008-2011)

Under The Guidance Of

Ms Shweta Rastogi
Faculty, MAIMS

Submitted By:
Swati Taneja
Roll No : 1256111708
BBA III SEM
2ND SHIFT

Maharaja Agrasen Institute Of Management Studies

Affiliated To Guru Gobind Singh Indraprastha University, Delhi

PSP Area, Plot No. 1 Sector 22, Rohini Delhi 110086

 STUDENT UNDERTAKING

This is to certify that I have completed the project titled “Amul Ltd.” under the guidance of
“Mrs. Shweta Rastogi” in partial fulfillment of the requirement for the award of the degree
of Bachelor of Business Administration at Maharaja Agrasen Institute of Management
Studies, Delhi. This is an original piece of work and I have not submitted it earlier elsewhere.

Swati Taneja

Maharaja Agrasen Institute Of Management Studies

PSP Area, Plot No.1, Sector 22, Rohini, Delhi-110086

i
 CERTIFICATE

This is to certify that the project titled “AMUL Ltd” is an academic work done by “Swati
Taneja” submitted in the partial fulfillment of the requirement for the award of the degree of
Bachelor Of Business Administration from Maharaja Agrasen Institute Of Management
Studies, Delhi, under my guidance and direction. To the best of my knowledge and belief the
data and information presented by her in the project has not been submitted earlier.

Name of the Faculty Guide:

Ms. Shweta Rastogi

ii
 ACKNOWLEDGEMENT

I express my heartfelt gratitude and privilege to acknowledge our esteemed Director Mr.
N.K.Kakkar and my guide Mrs. Shweta Rastogi without whom this project could have not
been completed . I also express my deepest gratitude towards the teaching staff and the
fellow member who helped me to finish the task successfully.

Swati Taneja

iii
 EXECUTIVE SUMMARY

In India dairy is considered as one of the main instruments for social and economic
development. Small farmers, possessing about 70% of the milk cattle, dominate milk
production. Their income was undependable, and too small, so dairy was not considered a
viable business option. But the Operation Flood changed the scenario, to the extent of
Revolution. Amul has become a symbol of farmers’ liberation and self-reliance.The project
aims to study the evolution of Indian dairy industry and that of Amul. The primary focus will
be on the marketing strategy and competitor analysis, over the years, which has made Amul
the most recalled brand.As it moves into newer products, and, Amul is perusing a different
advertising strategy. The entry of MNCs, evolution in the customer profiles, and a changing
Market calls for a massive shift in the strategy. In the project we examine how the company
is geared up to meet the challenge.

iv
 TABLE OF CONTENT

PARTICULARS PAGE NO
• Student undertaking i
• Certificate ii
• Acknowledgement iii
• Executive summary iv

Chapter-1 Introduction (1-3)

1.1 The birth of Amul 1
1.2 Objective of study 3

Chapter-2 Company profile (4-20)

2.1 About the company 4
2.2 Amul success story 7
2.3 Operation flood 8
2.4 Impact of “Amul model” 9
2.5 Achievement of Amul movement 11
2.6 list of Amul products 13
2.7 Product description 18
2.8 Amul- the logistic and distribution 19
2.9 GCMMF- mission statement 19
2.10 Achievement of GCMMF 20

Chapter-3 Research methodology (21-22)

3.1 Research methodology of the study 21

Chapter-4 Product and services (23-29)

4.1 Core marketing concepts 23
4.2 The 4 P’s of marketing 29

Chapter-5 Swot Analysis (40-42)

5.1 Swot Analysis of Dairy Industry 40
5.2 Conclusion 42

• Bibliography vi

v
1.1 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 litres 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

1
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 birth of Amul at Anand provided the impetus to
the cooperative dairy movement in the country. 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 Ltd. which had established the brand name AMUL in 1955
decided to hand over the brand name to GCMMF (AMUL). With the creation of GCMMF
(AMUL), we managed to eliminate competition between Gujarat’s cooperatives while
competing with the private sector as a combined stronger force. GCMMF (AMUL) has
ensured remunerative returns to the farmers while providing consumers with quality products
under the brand name AMUL.

This was possible due to the dedicated and committed leadership of the founder Chairman of
AMUL, Tribhuvandas Patel and the vision and professionalism of the father of the White
Revolution, Dr. Verghese Kurien who worked as a professional manager at AMUL.

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. His professional life has been dedicated to empowering Indian farmers
through co-operatives. Dr. Kurien’s vision has helped to lay the foundation of democratic
enterprises at the grass roots and shown the way to ensure economic justice is with people’s

2
participation. He believes that by placing technology and professional management in the
hands of the farmers, the standard of living of millions of our poor people can be improved.

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 rich
experience gained from the ‘Amul Model’ dairy cooperatives. This innovative three-tier
organization structure combines the productive genius of farmers with professional
management and modern technology. The facilities at all levels are entirely farmer-owned.
The cooperatives are able to build markets, supply inputs and create value-added processing.
Prompt and remunerative payment for produce of good quality has ensured the best incentive
for the farmer to increase production and quality. 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.

1.2 Objectives of the Study

• To know the relationship of sales with the advertisement.

• To know in which segments AMUL products are most likely preferred.
• To know the preferences of AMUL products with comparison to other competitive
brands.

3
2.1 ABOUT THE COMPANY

AMUL THE ORGANIZATION

GUJARAT COOPERATIVE MILK MARKETING FEDERATION
GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (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 consumer
by providing quality products which are good value for money.
The Gujarat Co-operative Milk Marketing Federation
The Gujarat Co-operative Milk Marketing Federation, Asia’s largest producer of dairy
products, which markets Amul brand dairy products is expected to show a growth in sales of
17 per cent to about Rs. 2,220 crores in 1998-99 from Rs. 1,884 crores in 1997-98 and 1,554
crores in 1996-97. the federation with 19.5 lakh producer members is taking up the
manufacture of Swiss cheese both for the domestic market as well as exports.
In 1997-98, its average sales of liquid milk were 39-65 lakh kg per day against 38.1 lakh kg
in 1996-97. the federation, marketing about 26 different dairy products, sold about 10.5 crore
litres of milk in pouches during April-September 1998. its sales of buffer have gone up form
10,000 tonnes in 1996 to 25,000 tonnes in 1997.

The federation has plans to increase its turnover 5-fold to Rs. 10,000 crores by 2005 by
increasingly milk products manufacturing capacity. Until recently, the federation has been
exporting its products to West Asia. In 1997-98, its exports touched rs. 26 crores. In 1998, the

4
federation for the firs time exported butter, cheese and gulabjamuns to the US. In 1998-99,
the federation exports to the US are pro
jected at Rs., 10 crores.

• Members: 12 district cooperative milk producers' Union

• No. of Producer Members: 2.28 million
• No. of Village Societies: 11,132
• Total Milk handling capacity: 6.7 million litres per day
• Milk collection (Total - 2002-03): 1.86 billion litres
• Milk collection (Daily Average 2002-03): 5.08 million litres
• Milk Drying Capacity: 510 metric Tons per day
• Cattle feed manufacturing Capacity: 1450 Mts per day

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 21185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575

5
 AMUL

AMUL means “priceless” in Sanskrit. The brand name “Amul” form the Sanskrit
“Amoolya,” was suggested by a quality control expert in Anand. Variants, all meaning
“priceless”, are found in several Indian language. Amul products have been in use in million
of homes since e1946. Amul Butter, Amul milk Powder, Amul Ghee, Amuspray, Amul
Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and
Amulya have made Amul a leading food brand in India. (Turnover: Rs. 18.8 billion in 1997-
98). Today Amul is a symbol of many things. Of high quality products sold at reasonable
prices. Of the genesis of vast co-operative network. Of the triumph of indigenous technology.
Of the genesis of a vast co-operative network. Of the triumph of indigenous technology. Of
the marketing savvy of a farmer’s organization. And of a proven model for diary
development.

6
2.2 AMUL’S SUCCESS STORY:
The decision to constitute Amul’s first co-operative was taken on 4 th January, 1946 at a
meeting called by Morarjee Desai under the advice of Sardar Vallabbhai Patel. Sadar Patel’s
vision was to empower the farmers by allowing them to control the production, procurement,
and marketing of the milk. The task was entrusted to qualified professionals, and thus the
middlemen were to be eliminated.

This decision marked a new era in Indian dairy industry. The milk producers’ co-operatives
in villages formed a federation at the district level, which will handle the milk sale from
Kaira to the Bombay Milk Scheme. Initially, the colonial Government refused to recognize
the milk society, but a fifteen-day strike by the milk producers made it relent. The Kaira
District Milk Producers’ Union Limited was formed and registered on the 14 th December
1946.

The original Anand model envisioned co-operatives at the village level and processing unit at
the district level, called an “union”. Similar models were replicated elsewhere, and in 1973,
the Gujarat Co-operative Milk Marketing Federation (GCMMF) was formed, to market the
products of the small unions more effectively. Since then, GCMMF is the sole marketer of
the Amul brand.
Amul’s success is due to its ability to convert the value it offers to customers to profits.

The expectations of the customer is met by a suitable combination of Relative Price, and
Quality, resulting in Customer Satisfaction. Hence the Loyalty increases and Repurchase
and Referral occur, then the company can extend the brand to other products, resulting in
profits.

7
2.3 OPERATION FLOOD:

Operation Flood is responsible for the transformation from the

situation of net imports to a state of surplus.

Dr Verghese Kurien, a technologist, began working with the farmers in 1949, after returning
to India from Michigan State University, where he earned a Master of Science of Mechanical
Engineering (with distinction). He was posted at the KairaDistrict Milk Producers Union, a
newly formed cooperative organization established to help market milk directly to the
consumers. He formed a co-operative, which would buy milk from the producer. Thus it
served to organize them and enable a fair price.

The result was dramatic: milk production and consumption jumped from 132 gm per day to
220 gm per day, side by side empowering the farmers, by increasing their per capita income.

The model given by Dr Kurien was so successful that it caught the attention of a large
number of countries in Africa, Asia, and Latin America, who wanted to replicate the model in
the poor section their country. The work won Dr Kurien numerous awards like the Padma
Bhushan, the Ramon Magsaysay Prize for Community Leadership, the Carnegie-Wateler
World Peace Prize, and the World Food Prize.

8
2.4 IMPACT OF “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 four-
fold 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.

9
“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

2.5Achievements of ‘Amul Movement

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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.

11
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

2.6LIST OF AMUL PRODUCTS

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Amul Butter
• Utterly butterly delicious

Amul SPRAY
• Infact milk food. Still mothers milk is bet for your baby

AMUL INSTANT FULL CRAM MILK POWDER

• A dairy at your home.

SKIMMED MILK POWDER

• Especially useful diet preparation or for use by people on low calorie and high protein
diet.

AMULYA DAIRY WHITENER

• The richest, purest dairy whitener.

CHEESE AMUL PASTEURIZE DPROCESSED CHEDDAR

• 100% vegetarian cheese made from microbial rennet.

AMUL CHEESE SPREAD

• Tasty cheese spread in three great flavors.

AMUL PURE GHEE

• Made from fresh cream has tupical rich aroma and granular. An ethnic product made
by
• dairies with decades of experience.

NUTRAMUL

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 • Malted milk food made from malt extract has the highest protein content among all
the brown beverage powder sold in India.

AMUL MOZZARELLA CHEESE

• Pizza cheese makes great testing pizzas.

AMUL EMMENTA CHEESE

• The great Swiss cheese from Amul

AMUL FRESH MILK

• The most hygiene milk available in the market pasteurized packet for convenience.

AMUL PANEER
• Ready to cook paneer to make your favorite recipes.

DHARA EDIBLE OIL

• Largest selling brand of edible oil in India.

JAL DHARA PURE DRINKING WATER

• The purest drinking water.

AMUL CHEESE POWDER

• The real cream on your soup.

AMUL UHT MILK

• Longlife fresh milk with extra vitamins & no preservatives added.

AMUL FLAVOURED CHEESE CUBES

• Great for cheese sandwiches cheese Pakoras cheese Burgers and a host of delicious
cheesy snacks.

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AMUL PIZZA
• The hottest new addition

Breadspreads
• Amul Butter ---
• Amul Lite Low Fat Breadspread
• Amul Cooking Butter
• Delicious Margarine

Milk Powders
• Amul Full Cream Milk Powder
• Amulya Dairy Whitener
• Sagar Skimmed Milk Powder
• Sagar Tea and Coffee Whitener

Sweetened Condensed Milk

• Amul Mithaimate

Sweets
• Amul Shrikhand & Amrakhand
• Amul Mithaee Khoya Gulabjamaun
• Amul Basundi

Fresh Milk
• Amul Taaza Toned Milk 3% fat
• Amul Gold Full Cream Milk 6% fat

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 • 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 Lite Dahi
• Amul Prolife probiotic Dahi
• Amul Masti Spiced Butter Milk
• Amul Lassee

Amul Icecreams
• Vanilla Royale
• 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)
• Amul SUGAR FREE Frozen Foods (Milk Based Sweet)
• Amul ProLife Probiotic Ice cream

Chocolate & Confectionery

• Amul Fruit & Nut Chocolate
• Amul Bindazz
• Amul Rejoice
• Amul kesar

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Brown Beverage
• Nutramul Malted Milk Food

Milk Drink
• Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose,
Chocolate, Butterscotch)
• Amul Kool Cafe
• Amul Kool Koko

Health Beverage
• Amul Shakti White Milk Food

2.7 PRODUCT DESCRIPTION

Ultra High Temperature (U.H.T) Milk is a kind of milk which comes in tetra pack. It is
bacteria free milk. It is firstly boiled on 1310C. which kills bacterial and keep it fresh. After
cooling it is packed in tetra Pack. It is fresh and hygenic milk. There is no preservatives or

17
chemical are added only extra vitamins and minerals are added in this pure milk. It has 120
days shelf life. There is no need to keep it in freeze or boil it till 120 days. (in packed
condition). It has a very good market in abroad. In India it is relatively new. People are less
aware about this product. It is little more costlier than fresh poly pack milk. It has good sale
in A Class market. There is 3-4 branded U.H.T. milk available in market i.e. Amul, NESTLE,
VIJAYA and GAGAN. Gagan is not in same category. It is low price and it comes in poly
pack. Amul has three varieties of U.H.T. milk i.e. SLIMN TRIM with 05% fat, Taaza with
3% fat and Gold with 4.5% fat. NESTLE has two verities i.e. SLIM NTRIM with 0.5%
fat, Nestle Milk with 3% fat. Vijaya has also two varieties i.e. Low Fat with 1.5% fat and
standard with 4.5% fat.

FEATURES OF U.H.T MILK

 Treated at Ultra High Temperature and aseptically packed.
 Sterile bacteria free and can be consumed directly.
 Need no refrigeration.
 Stay fresh for 4 months.
 Gives Excellent and Firm Cards/yoghurt
 Hygienically packed
 Natural taste with high nutritive value
 Packaging materials absolutely impermeable and non-returnable.
 Homogenized.

2.8 AMUL- The Logistics and Distribution

The success of Amul can be contributed to the pricing to a large extent but none the less there
are other factors, which have contributed to its meteoric rise. Amul has over a period of time
built a massive distribution network, which has helped them penetrate the interiors of rural
India.

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Amul, with its 40 product categories, 300 stock keeping units, 100000 retailers, 18000 strong
cold chain and 500000 non refrigerated retail outlets, has made it really difficult for a new
entrant to get a foothold in the market.

The cold retail chains offer a major competitive advantage. Amul outsold HLL in the ice
cream market solely on the basis that it controlled a huge number of milk and butter outlets
all over the country.

In order to further strengthen their distribution backbone, Amul has launched

“Hamara Apna” Deep Freezer scheme. In this scheme retailers would be provided with
cooling machines only for Rs. 20000. Amul has also persuaded Carrier Aircon and Blue Star
to provide warranty for three years instead of the usual two. This has gone a long way in
generating goodwill among Amul’s partners.

2.9 GCMMF: MISSION STATEMENT

We are Gujarat Co-operative Milk Marketing Federation Endeavor to satisfy the taste &
Nutritional Requirement of the Customers of the world through Excellence in Marketing by
our Committed team.
The Corporation networking we are committed to offering quality products that
provides best value for money.

2.10ACHEIVEMANTS OF GCMMF

ü 2.8 million milk producer member families ü 13,759 village societies ü 13 District Unions ü
8.5 million litres of milk procured per day ü Rs. 150 million disbursed in cash daily ü
GCMMF is the largest cooperative business of small producers with an annual turnover of
Rs. 53 billion ü The Govt. of India has honoured us with the “Best of all categories Rajiv
19
Gandhi National Quality Award”. ü Largest milk handling capacity in Asia ü Largest Cold
Chain Network ü 48 Sales offices, 3000 Wholesale Distributors, 5 lakh retaikl outlets ü
Export to 37 countries worth Rs. 150 crores ü 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. We are 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 our SAARC neighbours, 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.

3.1 Research methodology of the study

3.1.1 Research:-

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Research is define as diligent and thorough inquiry and investigation into a subject. This
includes using ALL appropriate print and electronic sources, asking the reference librarians
for help, and making use of bibliographies given by other authors

3.1.2 Research methodology:-

Research methodology is define as the way in which the data are collected for the research
project. Since there are vast sources through which the data can be collected thus this
methodology means getting the best and appropriate data for the existing project.

3.1.3 Data Collection

Data can be collected through various sources available in two different forms, primary and
secondary data.

 Primary data
It is define as information collected directly from the source through observation,
conversation, and/or participation. The degree of reliability, validity, and precision
required depends on how you intend to use the information. Visitor response to
surveys is one example of primary data.

 Secondary data
It is define as information collected by others such as government agencies and/or
nonprofits that pertains to your area of interest. The degree of reliability, validity, and
precision in secondary data depends on how it was collected and interpreted. Census
data is one example of secondary data.

In this project we have used secondary data sources such as

 Web sites
 Company annual reports

3.1.3 Limitation

The limitations of the research were as follows:-

21
 • Lack of proper experience on the part of the researcher in conducting such studies in
the past.
• Time frame required was not enough to survey more number of outlets.

4.1 CORE MARKETING CONCEPTS

Marketing Definition as said by Philip Kotler: Marketing is a societal process by which
individuals and group obtain what they need and want through creating offering and freely
encharge products and services of value with others.
The cooperative Gujarat coopertive Milk Marketing federation better know as Amul gives
that former the best price for its milk and the consumer the lowest rice for the product he
buys.

22
Needs, wants & Demands
Needs describes basic human requirement the basic requirements that Amul is addressing is
the need for milk and milk products.
Wants: Need becomes want when they are directed to specific objects that might satisfy the
need.
In case of Amul the wants any be mentioned as the milk products like Mish Dahi, Cheese,
Butter, Ice-creams, Smeetened condeved milk and many more.

Demands: Demands and wants of specific products baced of ability to pray.

Where Amul products are concerned consumers have the ability willingness to pray because.

• Product & Offering

A product is my offering that can satisfy the need or want major types of basic offerings and
goods, services, experiences, events, persons place, properties, orgnaisation information and
idea.
A brand is an offering from as know source and Amul offering market products like dairy
products & edible oils. They also provide services of institutions and schools and college
canteens.

Value and satisfaction

Benefit Functional Benefit + emotional benefit

Value = =
Cost monetary cost + time cost + energy cost

Amul as a product offers functional benefit as it has super value products and milk is used by
maximum numbers of house hold.
The marketer can increase the value of customer offering by reducing the cost.

23
 • Marketing Channel and Distribution

In August Nestle discovered to its disadvantage when it launched its eponymous brand of
butter in Delhi and Mumbai market the refrigerator for key retailers have not much of it in
storage. According go general manager (marketing) GCMMF Mr. R.S. Sodhi, they know
where Nestle will go and flooded the market with Amul butter and given GCMMF’s wide
range of products no retailers could say no.
It has 40 products categories
300 stock keeping units
100000 retailers with refrigerator
18,000 strong cold chain
50,000 non refrigerated retail outlets
it is now flexing its distribution muscle to make life tough for new entrant or to push its new
offerings. It is building more intensive distribution network as it is in maturity stage.

• Competition
It has competitors in one products category or another. For example transnational marketing
gients like Pizza Huts, dominos, Cadburys, Nestle, Britannia and Hindustan Lever Ltd.
(HLL)
HLL is trying to put on over Amul by building one network of franchised ice-creams parlours
and kiosks.

Amul’s condence milk brand “Mithai Mate” has eroded market leader, milk maids
dominance. Today milk Mithai mate has 30% share of the market.

24
GCMMF milk based confectionary brand max is rupee one segment in this category of long
life milk targeting high and consumers . Amul competes with Nestle primarily on the plank
of price competitiveness.
Amul has launched milk Lairs to gun for a major share in chocolate’s and confectionary
markets.

• Competitor Strategy Analysis

Currently only 15 % of GCMMF’s revenue come from value added offerings which include
long life milk, ice cream, pizza etc, Amul has plans to increase this to 35 % within the next 5
years. The ambitious growth has made it imperative to expand its product line, this has
brought Amul in direct competition with the marketing majors in
India.

The strategy of Amul has been highly aggressive. Contrary to popular perception that Amul
competed only on the basis of competitive price, it managed to sabotage the market launch of
Nestle’s Butter using its distribution network.
Some of the companies that Amul is directly competing against in various segments are
described in the following paragraphs.

• HLL
Conflict Areas: Ice Creams, Confectionary
HLL has increased the number of offerings at lower prices, as a countering measure it has
launched kiosks and exclusive Ice Cream parlours across the length and breadth of the
country. HLL has a pronounced presence in Ice Creams and confectionary in which Amul has
shown a keen interest in recent time so as to sustain its planned growth.
The product profile of HLL in ice creams range from Max, Cornetto, and host of other
products which

25
cater to different segments of the Indian society. Let us take a look at the products in HLL’s
profile in some detail.

• Kwality Wall’s Max

It has been advertised as the masti ice cream and has been targeted at young school going
children. Max was launched in the year 1999. Max ice cream has been positioned as an ice
cream that has been fortified with extra vitamins, so as to differentiate itself from other ice
cream brands.

Max has the tagline masti kar Befikar and encourages all kids to have a good time. Max has
recently extended its presence in confectionary (candies) with brands such as Max Masti,
Max Magik and Choco Max.

• Kwality Walls Cornetto

Cornetto was launched in the year 1995-96, it has been positioned as an ice cream for
romance and special moments it has been targeted towards young adults. It is advertised with
the tagline bite bite mein pyar.

• Feast
It was launched in 1995-96, the Feast range of ice creams have been positioned as a ice
cream of youth with attitude. Feast has expanded its chocolate only portfolio to include
refreshment products tune with the variety need of todays youth. Feast has managed to
continuously connect with today’s youth, and it remains the Ice cream with the ….. Big F.

• Britannia
Conflict Areas: Milk, Butter, Cheese
Britannia has launched fresh milk in markets where GCMMF lacks presence. It has restricted
its focus to 30 cities for butter and cheese. It does not come into the league of so-called big
players because of its restricted focus, none the less it is coming across as an emerging player
in the same segment as that of Amul. Amul is not taking this lightlyand is all feared up for the
competition.

26
 • Nestle
Conflict Areas: Entire Dairy Spectrum
Nestle is directly in competition with GCMMF across the entire dairy line. Nestle recently
launched butter and curd in major markets across India. The competition is also brewing in
the infant milk and mithai segment as there are launches in these two segments by GCMMF,
against Nestlé’s Cerelac and Milkmaid. Nestle has a major presence in majority of the
products which are there in Amul’s product line. This has brought both the giants in direct
competition for larger pie of the market.
Nestle has a very strong presence in baby foods with its products such as Farex which is not
that well known now but 10-15 years ago it was a standard product in many middle and upper
middle class households. Nestle has introduced Cerelac recently in the baby food segment to
counter the threat from Amul.
Few of the products that have been launched by Nestle date back to more than a century, the
Milkmaid brand of sweetened condensed milk was one of the first products to be launched by
Nestle way back in 1967. With this kind of history and technical knowhow the going for
Amul was never going to be easy. Nestle has launched its version of powdered milk, Nespray
which it markets under full cream milk powder. Apart from the traditional dairy products
Nestle is also in direct competition with Amul in the chocolate and confectionary segment.

The history of chocolate dates back to the ancient civilization of Mayans and Aztecs. But the
modern day chocolate as we know of can be credited to Daniel Peter who in 1875, figured out
how to combine milk and cocoa powder in proportion to produce chocolate.

For three decades the company started by Daniel Peter relied on Nestle for its need of milk
and marketing its brand of chocolate. In 1929 Nestle acquired Peter, Cailler, Kohler With
nearly 100 years of experience in making chocolates Nestle has a very great presence in this
segment, which Amul is trying to get a share of, which brings them directly in contention for
the same market.

• Cadbury’s
Conflict Areas: Confectionary

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Cadbury has relaunched three brands, 5 Star, Gems and Bournvita. It is trying to move
beyond its dependence on chocolates and move into sugar confectionary as the next growth
opportunity.

4.2 THE FOUR P’S OF MARKETING

4.2.1 Product
The product Amul was rightly launched as it has monopoly in super value segment.
Product levels – Almost all the products of Amul for between either expected or augmented
product level.
Product classification – Amul comes under the category of Consumer Goods.

28
Convenience goods - These are goods that customer usually purchases frequently,
immediately and with the minimum of effort.
Some products of Amul like Milk, Butter, Oil come under the category of staples.
Amul also has impulse goods like chocolate and ice-creams which are purchased without any
planning or search.

4.2.2THE PRODUCT MIX

Product mix is defined as all of the products or product lines offered by a firm. Some
companies have a wide product mix geared toward a diverse consumer group. For example,
Procter & Gamble has a product mix that includes detergents, toothpaste, Procter bar soap,
deodorants, disposable diapers, coffee, household paper goods, and food products. Some
companies have a narrow product mix geared toward a particular market segment, such as the
Williams Sonoma catalog that sells gourmet cooking accessories. Offering a wide product
mix provides an opportunity to increase the amount of goods sold to each customer but has
costs associated with the variety of resources (distribution, storage, marketing, etc.) required
to support it. Similarly Amul is also dealing in vats variety of dairy products in the market.

Thus the decision taken to the relative amounts of each type of product or service that, given
demand and resource constraints, will maximize total profits. For example, if the firm can sell
as much as it can produce and has a single resource constraint, the decision rule is to
maximize the contribution margin per unit of the constrained resource. However, given
multiple constraints, the decision is more difficult and more sophisticated techniques must be
used, such as linear programming for example.

Dairy Products Edible oils Institution

Consumer Packs:
Amul Butter Dhara Double Filtered Railways:
Amul Spray Instant Milk Flood Mustard Oil. School & Colege
Amul spray full cream milk powder Dhara Double filtered canteens
Amulya dairy whitener groundnut oil Airlines & various
Amul lite Dhara refined mustard others

29
Amul Pure Ghee oil
Sagar Pure Ghee Dhara health refined
Amul Processed Cheese sunpower oil
Amul Enimenal Cheese (New) Dhara kalah ghani oil
Amul Mozzarella Chese Dhara Refined
Amul Chocolates Soyabean oil
Nutramul Mauted Milk Food Dhara Refined
Amul Mithaee (Gulabjamun) vegetable oil
Amul Shrikhand Dhara refined
Amul Gold sunflower oil
Amul Shakti (Standarised Milk) Dhara cottonseed oil
Amul Tazza Lokdhara blended oil
Amul Longlife Milk
Nutramul Brown Beverages
Amul Ice-Cream
(vanilla, strawberry, pineapple, orrang,e
rose mango, chocolate, honeydewmelon,
tutti frutti, lichi, kesanpista, Butter
scotch, Kaju, choco Chips, Raj bhog,
cashew break)
Bulk Packs
Amul skimmed milk powder
Amul full cream milk powder

Product width = 3
Product Length = 50
Amul ice-creams → depth = 16
Amul bulk packs → depth = 2
 The product mix is justified because Amul is in the maturity stage so its needs the
diversify its brands and items.

30
4.2.3 Pricing objective
It faces major competition in ice cream category from
HLL with both eyeing the interactive 75 to 100 crore units a year.
Amul is in the maturity stage. It tries to seek profits and at the same time achieve low cost per
customer.

Pricing Strategy
All products of Amul have standard pricing strategy.
Price
Product Quality

High Medium Low

High 1. Premium strategy 2. High-value 3. Super-value
strategy strategy
Medium 4. Overcharging 5. Medium-value 6. Good-value
strategy strategy strategy
Low 7. Rig-off strategy 8. False economy 9. Economy
strategy strategy

Amul follows the super value strategy, which aims at providing superior quality product at
low cost per customer.

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 • PRICE LIST OF AMUL
Max.

Sr.No Pack size retail

Products

prices
1 Amul butter 100g pack Rs.20.00
2 Amul butter 500g pack Rs.97.00
3 Delicious table margarine 100g pack Rs.13.00
4 Delicious table margarine 500g pack Rs.60.00
5 Amul light low fat bread spread 200g tub Rs.32.00
6 Amul cheese 400g tin Rs.105.00
7 Amul cheese slices 200g pack Rs.70.00
8 Amul cheese chiplets 200g pack Rs.60.00
9 Amul cheese 1 kg block Rs.203.00
10 Amul cheese spread 200g pack Rs.47.00
11 Amul pizza cheese 200g pack Rs.50.00
12 Amul emmental cheese 400g pack Rs.150.00
13 Amul gouda cheese 250 g Rs.110.00
14 Amul gouda cheese 1 kg Rs.420.00
15 Amul malai paneer 200g dice pack Rs.34.00
16 Amul/sagar pure ghee 1 ltr tin Rs.230..0
17 Amul/sagar pure ghee 500ml pouch Rs.110.00
18 Amul/sagar pure ghee 2ltr tin Rs.435.00
19 Amul/sagar pure ghee 5ltr tin Rs.1075.00
20 Amul pure ghee 1ltr reffil Rs.225.00
21 Amul/sagar pure ghee 1ltr pouch Rs.212.00
22 Amul shrikhand 500g cup Rs.50.00

elaichi
23 Amul shrikhand 500g cup Rs.53.00

mango
24 Amul shrikhand 500g cup kesar Rs.63.00
25 Amul shrikhand 500g badam Rs.58.00

pista
26 Amul mithaee gulabjamun 1kg tin Rs.110.00
27 Amul mithaee gulabjamun 500g tin Rs.60.00
28 Nutramul 500g reffil Rs.105.00
29 Amul chocolate 35g milk Rs.15.00
30 Amul chocolate 35g fruit & nut Rs.16.00
31 Amul almondbar 35g Rs.12.00
32 Amul chocozoo 232g tin Rs.115.00
33 Amul chocozoo tub 500g Rs.148.00
34 Amul tazza double toned milk 1 ltr tetra Rs.35.00

32
35 Amul tazza double toned milk 200ml tetra Rs.9.00
36 Amul tazza toned milk- northern eastern 1 ltr tetra Rs.38.00

state
37 Amul gold milk 1 ltr tetra Rs.39.00
38 Amul light skimmed milk 1 ltr tetra Rs.40.00
39 Amul CALCI+ high calcium milk 1 ltr brick Rs.40.00
40 Amul mithaimate sweetened condensed 400g can Rs.54.00

milk
41 Amul spray IMF 500g pouch Rs.101.00
42 Amul spray IMF 500g reffil Rs.102.00
43 Amul spray IMF 500g tin Rs.107.00
44 Amul spray IMF 1kg pouch Rs.184.00
45 Sagar skimmed milk powder 500g pouch Rs.204.00
46 Amulya dairy whitener 500g pouch Rs.100.00
47 Amulya dairy whitener 500g reffil Rs.104.00
48 Amulya dairy whitener 1kg pouch Rs.105.00
49 Amul spray IMF 1kg tin Rs.209.00
50 Amul shakti health food drink (kesar 500g reffil Rs.115.00

almonds)
51 Amul kool (kesar, elaichi, rose) 200ml bottle Rs.12.00
52 Amul kool (kesar, elaichi, chocolate) 200ml tetra Rs.12.00
53 Amul kool kesar 250ml can Rs.22.00
.54 Amul kool café 200ml glass Rs.15.00

bottle
55 Amul kool café 250ml can Rs.22.00
56 Amul kool café 200ml tetra Rs.15.00

brick
57 Amul kool koko 250ml can Rs.22.00
58 Amul kool milk shake( mango, 220ml can Rs.22.00

strawberry & badam)

59 Amul kool milk shake (mango 180ml tetra Rs.15.00

&strawberry) pack
60 Amul fresh cream 200ml tetra Rs.29.00

brick
61 Amul fresh cream 1 ltr tetra brick Rs.108.00
62 Amul masti spiced butter milk 200ml tetra Rs.8.00

brick
63 Amul masti spiced butter milk 1 ltr tetra brick Rs.30.00
64 Amul lassee (rose) 200ml tetra Rs.10.00

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 brick
65 Amul basundi 1 ltr tetra brick Rs.98.00

Amul Promotion

Books
• The Amul India Story : Ruth Herediya
• Management Kurien Style : MV Kamath
• The Unfinished Dream : V Kurien
Sponsored Programs
• Amul Surabhi : Doordarshan, India
• Amul India Show : Star Plus Channel
Feature Films
• Sardar: The Iron Man of India : A film by Ketan Mehta
• Manthan: a film by Shyam Benegal
TV Films
(Coming Soon!)

34
 • Utterly Butterly Amul : New 30sec TV Film
• Amul : The Taste of India TVC : 60 sec film
• Amul Golden Jubilee : Manthan TV film : 60 sec film
• Amul Cheese TV Film : 40 seconds
• Amul Icecream TV Film : 40 seconds
Butter Topicals
Amul Cricket Rankings

35
PRINT ADVERTISEMENTS

36
Advertisement
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.

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.

4.2.4 PLACE
AMUL TOP RETAILERS
• Chennai
• Calcutta
• Nasik
• Jalgaon
• Aurangabad
• Delhi
• Raipur
• Jodhpur
• Udaipur
• Pune
• Siliguri / Durg
• Kota

37
GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading
House" status. GCMMF has received the APEDA Award from Government of India for
Excellence in Dairy Product Exports for the last 8 years.
The major export products are:
Consumer Packs
• Amul Pure Ghee
• Amul Butter
• Amul Shrikhand
• Amul Full Cream Milk Powder
• Amul Mithaee Gulabjamun
• Amul Skimmed Milk Powder
• Nutramul Brown Beverage
• Amulspray Infant Milk Food
• Amul Cheese
• Amul Malai Paneer
Bulk Packs
• Amul Skimmed Milk Powder
• Amul Full Cream Milk Powder
Many of our products are now available in the USA, Gulf Countries and Singapore.

38
5.2 SWOT ANALYSIS OF DAIRY INDUSTRY:

5.1.1 STRENGTHS:

Optimistic Demand Profile: The per capita consumption of milk and milk products is low,
at 132gm per day. The proliferation of urban population spurs the demand for processed
products like cheese and butter. This, when coupled with growth in population, gives rise to
an increasing market.

Profit Margins: Even in case of products like packed liquid milk, the profit margin is
reasonably high. More so, in case of processed products.

Product Mix: This is very flexible, the product line could be extended without the risk of
cannibalization, and also it offers greater cost advantages, and synergies.

Raw Materials: Milk is available abundantly for processing, albeit from the unorganized
sector. Operation Flood has successfully increased the production of milk. Only it needs to be
channelised properly.

5.1.2WEAKNESSES:

Perish ability: Although Pasteurization has reduced this problem to a large extent; it is still
an issue, especially when major part of the milk is produced in the rural areas.

Production Control: Improvement in milk production is possible through adoption of new,

scientific breeding, but it is a long-drawn process.

Transportation of Milk: This is the bane of India--- bad roads. However the condition is
showing improvement over the years, with the general economic development.

Competition: The entry of deep-pocketed MNCs has marked a paradigm shift towards global
standards in procurement of milk to distribution of finished products.
39
5.1.3 OPPORTUNITIES:

Value Addition: Product development, packaging and presentation will generate huge scope
of value addition for all the players. Forward integration like retailing, addition of new
products, and diversification into new product range will provide new area of growth.

Export: There is huge opportunities of growth through exports. Amul is already exporting to
Bangladesh, Sri Lanka, Nigeria, and the Middle East.

5.1.4 THREATS:
The biggest problem for the dairy industry comes from the milk vendors, who are the source
of the raw materials. This sector is largely unorganized, and here lies the problem.
Even after the successful Operation Flood, much remains to be done about organizing the
actual producers of milk.

5.2 Conclusion

40
According to the study made on Amul Company, this project provides a vast information
about this company, how it was originated, detail knowledge about its founder, their
competitors. It also tells that the company is playing a vital in increasing their market value
by attracting the customers towards their products. They got a good marketing concept. This
company was the first Indian based company which has launched U.H.T milk in India which
made the boom to the company. The company has launched many products in the market
which generally liked by the customers. They got very good strategic plans which are helping
them in moving ahead with the logo
THE TASTE OF INDIA, AMUL.

41
 BIBILIOGRAPHY

BOOKS REFFERED :
 Kotler Philip, Keller K.L., Koshy Abraham, Jha Mithileshwar, Marketing
Management, 13th Edition (South Asian Perspective), Prentice Hall
 Kothari CR, Research Methodology , 3rd Edition 1997, Vikas Publishing House, Pvt
Ltd, New Delhi

WEBSITES :
 www.amul.com
 www.worldfoodprizes.org

OTHER SOURCES :
 An Unfinished Dream by Dr Verghese Kurien
 Company Annual Report

vi