Marketing Strategy for Amul Dahi
Marketing Strategy for Amul Dahi
On To formulate marketing strategy for Amul Masti Dahi also suggest communication s strategy with suitable actional plan in assigned territory Towards partial fulfillment of Master of Business Administration (MBA)
School of Management, Babu Banarasi Das University, Lucknow Submitted by Priya Verma IIIrd Semester Roll No-1120672076
Session 2013-2014
School of Management
ACKNOWLEDGEMENT
Without a proper combination of inspection and perspiration, its not easy to achieve anything. There is always a sense of gratitude, which we express to others for the help and the needy services they render during the different phases of our lives. I too would like to do it as I really wish to express my gratitude toward all those who have been helpful to me directly or indirectly during the development of this project.
I would like to thank Mrs. Tanisha Tandon (Faculty of management, BBDU) and Mr. Rajeev Tripathi (GCMMF, Lucknow) who was always there to help and guide me when I needed help. Her perceptive criticism kept me working to make this project more full proof. I am thankful to her for her encouraging and valuable support. Working under her was an extremely knowledgeable and enriching experience for me. I am very thankful to her for all the value addition and enhancement done to me. No words can adequately express my overriding debt of gratitude to my parents whose support helps me in all the way. Above all I shall thank my friends who constantly encouraged and blessed me so as to enable me to do this work successfully.
EXECUTIVE SUMMARY
This project was undertaken with the objective of Comparative analysis of the development of brand ofAmul masti Dahi and analysing various buying factors of set curd in the outlet levels. The study was conducted at Amul India Ltd, Lucknowbranch. The customers preference was studied through using questionnaire. A sample size of 100 respondents was taken for the study, whose responses were studied and interpreted .The sampling design was used convenience sampling.
To buy the product, Trust of the company was the first preference of the consumer then schemes on the product.
Finally the whole study of the research work, the company needs to improve the quality and the availability for awareness of Amul Masti Dahi.
TABLE OF CONTENT
Declaration Acknowledgement Executive Summary Chapters Part I 1. Introduction 2. Company profile a. About organization b. Organization chart c. Aims and objectives d. Any specific information of the organization Part II 3. Objectives of the study 4. Research Methodology a. Method of data collection b. Data Source c. Sample design d. Universe e. Sample type f. Sample size g. Sample Unit h. Hypothesis (if any) i. Statistical tools to be used 5. Problems and Limitations Part III 6. Data Analysis & Interpretations 7. Findings 8. Suggestions/Recommendations 9. Conclusion 10. Bibliography 11. Appendix Page Nos.
Part-I
INTRODUCTION
Today the world economy has undergone a radical transformation in the last two decades. The companies are emerging at the faster level. The technology and advancement have permitted companies to widen substantially both Markets and suppliers sources. Now as companies are emerging with their new products, marketing has become exuberant activity in expanding the market globally.
Marketing starts with human need and wants. It is a human activity directed at satisfying needs and wants through exchange process.
Marketing management deals with identifying and meeting human and social needs. It is basically a meeting needs profitability. In other words we can say that it is the process of planning and executing conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. The aim of marketing is to know and understand the customer so well, that the product and service fits him and sells itself. It acts as an instrument to lift up the standard and life style of the economy with the help of the marketing; we are able to get the products at our doorstep at our choice and needs. The whole economy would be sluggish, if marketing did not exist. Marketing is of critical importance because it maintains stability in the economic condition. Marketing is an existing, dynamic and contemporary field. It is recognized as the most significant activity in the society. Marketing has a widest connection which include in its fold selling, buying, transportation, warehousing, pricing and packaging. All these activities geared up together to reach strong preferences for particulars BRAND AWARENESS As such todays companies are facing the toughest competition everywhere marketing is playing a very important role.
RANGE OF PRODUCTS:Amul's product range includes milk powders, milk, butter, ghee, cheese, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. . Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya In January 2006, Amul plans to launch India's first sports drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's Gatorade.
COMPETITION AND EXPORT:In January 2006, Amul plans to launch India's first sports drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's Gatorade Amul is the largest food brand in India with an annual turnover of US $868 million (2005-06). Currently Amul has 2.41 million producer members with milk collection average of 5.08 million litres/day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets. Other potential markets being considered include Sri Lanka. Dr. [Link] THE KEY PERSON Dr Verghese Kurien, the chairman of the GCMMF, is recognized as the man behind the success of Amul. The primary goal of Dr. V. Kurien, Chairman GCMMF, the "Milk Man of India", has been to build a strong Indian society economically through an innovative cooperative network, to provide quality service and products to endconsumers and good returns to the farmer members. Dr. Kurien states, "We have traversed a path that few have dared to. We are continuing on a path that still fewer have the
courage to follow. We must pursue a path that even fewer can dream to pursue. Yet, we must. We hold in trust the aims and aspirations of millions of our countrymen." REVOLUTIONARY WORK:In 1996 Amul was one of the first major organizations in India to have a website. This site has been used both to develop an intranet of Amul distributors as well as a cyber-store for consumers, one of the first examples of e-commerce activity in India. The CEO of Amul, Mr. B M Vyas, recently said, "Amul is not a food company, it is an IT company in the food business". He was recognizing that the most efficient way of building links between milk producers and consumers so as to provide the best returns for both is through IT innovation. Amul has been able to withstand the onslaught of private and foreign players in the dairy industry and has also been able to export products in limited quantities. The success of Amul resulted in similar organizations being setup by state governments throughout India, most of which had reasonable success. Examples are Vijaya in Andhra Pradesh, Aavin in Tamil Nadu and others. SITUATION OF FARMERS:Over five decades ago, the life of an average farmer in Kheda District was very much like that of his/her counterpart anywhere else in India. His/her income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. Private traders and middlemen controlled the marketing and distribution system for the milk. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throw-away prices. In this situation, the private trader made a killing. Gradually, the realization dawned on the
AMUL THE TASTE OF INDIA farmers that the exploitation by the trader could be checked only if they marketed their milk themselves. Amul was the result of the realization that they could pool up their milk and work as a cooperative. KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION:The Kaira District Co-operative Milk Producers' Union Limited began pasteurizing milk for the Bombay Milk Scheme in June 1948. By the end of 1948, more than 400 farmers joined in more Village Society, and the quantity of milk handled by one Union increased from 250 to 5,000 liters a day. The success of Amul was instrumental in launching the White Revolution that resulted in increased milk production in India. It is officially termed as Operation Flood by Amul. The breakthrough technology of spray- drying and processing buffalo milk, developed by Mr. H.M. Dalaya, was one of the key factors that contributed to the Revolution.
AMUL THE TASTE OF INDIA EXTRA ORDINARY STORY OF AMUL Every day Amul collects 447,000 litres of milk from 2.12 million farmers (many illiterate), 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. Its supply chain is easily one of the most complicated in the world. If we are visit to any Amul or Gujarat Cooperative Milk Marketing Federation (GCMMF) office a photograph of Mahatma Gandhi will be missing but we can certainly see one particular photograph showing a long line of Gujarati women waiting patiently for a union truck to come and collect the milk they have brought in shining brass matkas. This makes the farmers or the member of the organization of the organization how to prevent the milk from souring. Hence, Amul takes various initiatives to make the farmer or the producer understand how to provide service to the consumers with the only resource available with them i.e. milk a perishable one. The prominent display of picture states the message NEVER FORGET YOUR CUSTOMER. IF YOU DONT SUCCESS IS CERTAIN At the time Amul was formed, consumers had limited purchasing power, and modest consumption levels of milk and other dairy products. Being a co-operative organization Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money. Amul also introduced higher value products. Beginning with liquid milk, Amul enhanced the product mix through the progressive addition of higher value products while maintaining the desired growth in existing products. Despite competition in the high value dairy product segments from firms such as Hindustan Lever, Nestle and Britannia, GCMMF ensures that the product mix and the sequence in which Amul introduces its products is consistent with the core philosophy of providing milk at a basic, affordable price.
AMUL THE TASTE OF INDIA GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION (GCMMF) Introduction:A group of farmers keen to free themselves from intermediaries and to gain access to markets and to utilize the benefit for their efforts came together in 1946 and formed the Gujarat Cooperative Milk Marketing Federation. The organization is situated in the village of Anand, the Kaira District Milk Cooperative Union (better known as Amul) which has now been expanded exponentially. GCMMF joined hands with other milk cooperatives, farmers, 10,411 village level milk collection centers and fourteen district level plants (unions) all under the overall supervision of GCMMF. The GCMMF is been particularly been recognized for the beneficiary of the farmers. The organization mainly helped to transform the small farmers and contribute mainly for the development of the society. Markets, then and and the Gujarat network now covers 2.12 million
even today are primitive and poor in infrastructure. Amul and GCMMF acknowledged that development and growth could not be left to market forces and that proactive intervention was required. Two key requirements were identified that are: 1. Sustained growth for the long term would depend on matching or maintained balance between supply and demand. It would need heavy investment in the simultaneous development of suppliers and consumers. Effective management of the network and commercial viability would require professional managers and technocrats. 2. To implement their vision while retaining their focus on farmers, a hierarchical network of cooperatives was developed, this today forms the strong and healthy supply chain behind GCMMFs endeavors. The vast and complex supply chain stretches from small suppliers to large fragmented markets.
AMUL THE TASTE OF INDIA Management of this network is made more complex by the fact that GCMMF is directly responsible only for a small part of the chain, with a number of third party players (distributors, retailers and logistics support providers) playing large roles. Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by low consumer prices supported by a low cost system.
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 consumers by providing quality products which are good value for money. The table mentioned drawn below makes us understand about the members in the GCMMF organization, village societies, milk handling capacity and various processes related with the collection capacity Members: 12 district cooperative milk producers' Union 2.5 million 11,962 9.91 million litres per day 2.28 billion litres 6.3 million litres
No. of Producer Members: No. of Village Societies: Total Milk handling capacity: Milk collection (Total - 2005-06): Milk collection (Daily Average 2005-06):
organization. It is a state level apex body of milk cooperatives in Gujarat, which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products, which are good value for money. GCMMF markets and manages the Amul brand. From mid-1990's Amul has entered areas not related directly to its core business. Its entry into ice cream was regarded as successful due to the large market share it was able to capture within a short period of time - primarily due to the price differential and the brand name. It also entered the Pizza business, where the base and the recipes were made available to restaurant owners who could price it as low as 30 rupees per pizza when the other players were charging upwards of 100 rupees. The sales turnover of the GCMMF from 1994-2006 is been represented below which helps to get a clear view of the earnings of the company, GCMMF is today nation's largest food company with an annual turnover exceeding Rs 2300 Crores.
AMUL THE TASTE OF INDIA Innovation at Grass Roots One of the members of GCMMF, the Banas dairy, has started a unique initiative called the Internet Sewa Project in their district called Banaskantha. This is a village-level effort at bridging the Digital Divide by providing information kiosks at the Village Cooperative level. Each village has one information kiosk, which is the single point of contact for Internet and other e-governance activities for the co-operative. Official forms, Rural Jobs, Veterinary, Agriculture, and Matrimonial details, educational applications and local market prices with buy & sell options are provided at the information kiosk so that people do not have to travel all the way to the district headquarters for these information. To improve the farmer members' living standards and to facilitate affordable Internet access services including VOIP Net telephony, the district union has also become a local Internet Service Provider (ISP) using these Village Information Kiosks. Today the services are subsidized but the goal is for the kiosks to become self-supporting Markets today are primitive and poor in infrastructure. Amul and GCMMF acknowledged that development and growth could not be left to market forces and that proactive intervention was required. Two key requirements were identified that are: Sustained growth for the long term would depend on matching or maintained balance between supply and demand. It would need heavy investment in the simultaneous development of suppliers and consumers. Effective management of the network and commercial viability would require professional managers and technocrats. To implement their vision while retaining their focus on farmers, a hierarchical network of cooperatives was developed, this today forms the strong and healthy supply chain behind GCMMFs endeavors. The vast and complex supply chain stretches from small suppliers to large fragmented markets.
AMUL THE TASTE OF INDIA Management of this network is made more complex by the fact that GCMMF is directly responsible only for a small part of the chain, with a number of third party players (distributors, retailers and logistics support providers) playing large roles. Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by low consumer prices supported by a low cost system. AWARENESS CREATED BY GCMMF THROUGH MOVIE- MANTHAN:Manthan relates the story of a young urban group headed by a veterinary doctor, which is sent by an organization to a poor village in order to help start milk cooperative. Manthan has been sponsored by 500,000 farmers of Gujarat, constituents of the Gujarat Co-operative Milk Marketing Federation. This is the first time in India that a feature film has been financed by farmers. Several new trails have been blazed by them; the "Anand Pattern" of dairy development, which today has been adopted all over the country, was also their contribution. Their dairy cooperatives illustrated how small farmers could triumph over adversity. Appropriately, the theme of "MANTHAN" is the churning up of the social structure when the milk cooperative movement erodes the power of traditional bosses in a village.
AMUL PRODUCTS AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found in several Indian languages. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 37.74 billion in 2005-06). Today Amul is a symbol of many things of high- quality products sold at reasonable prices of the genesis of a vast co-operative network of the triumph of indigenous technology of the marketing savvy of a farmers' organization. Amul represents a proven model for dairy development. 1. Amul Pasteurized Butter
Amul butter is most commonly used in every household. Amul is made from butter common salt and permitted natural colour. It is been marketed from last from 4 decades. Amul butter composes of fresh cream, milk fat, moisture, salt as well as curd in specific proportions. Amul is standardized product and has BIS specifications. The calorific value is 720 kcal./100g.
2. AMUL LITE : A Low Fat Low Cholesterol Bread Spread Unlike Butter & Margarine, Amul Lite is a low-fat, low- calorie & lowcholesterol bread spread, hence a healthier substitute. It contains 26% less fat and calorie content as compared to butter or margarine.
Unlike Butter & Margarine, Amul Lite is a low-fat, low- calorie & low-cholesterol bread spread, hence a healthier substitute. It contains 26% less fat and calorie content as compared to butter or margarine. This product is specifically prepared for diet considering population. It is considered as healthier substitutes as it contain 26% less fat and calorie. Helps to maintain slim and trim without sacrificing. Amul lite is suitable for old age people as the heart disease chances are been reduced. It contains Omega-6 and Omega-3. It helps to maintain healthy and cholesterol levels are kept at minimum. This product is certified by AGMARK for quality. Tastes best with toast, sandwiches and bread. It can also be used for topping on paranthas, paav bhaji, pulav, khichadi, and soups and also for household baking, preparation of cake etc.
AMULSPRAY
INFANT
MILK
FOOD
is
made
sugar, minerals and vitamins. Amul has introduced various powder milk products the Amul spray infant milk food is made from partially skimmed milk, sugar, minerals and vitamins It is composed of milk proteins, fats and carbohydrates. It has various vitamins such as A,D,K,B,C and various minerals like calcium, magnesium, phosphorous, iron, copper, iodine. This product is been marketed since 25 years. This product is formulated on guidelines set by Codex Commission of WHO/ FAO
AMUL INSTANT FULL CREAM MILK POWDER (Spray Dried) is made from Toned Milk, Vitamins A, and D. It composes of milk fat 26%, protein 26%, carbohydrates 37%, minerals 6%, and minerals 6%, moisture 3%. This product is highly acceptable product made from the most modern dairy plant through a special formulation. It meets the requirements laid down under PFA rules for processed Cheese Spread. 5. Amul Emmental Cheese
Amul's Emmental Cheese with holes can be traced back from 1290 AD. The tradition
AMUL THE TASTE OF INDIA of cheese-making has flourished in the skilled hands of sennen. This famous cheese with a Swiss taste owes its name to the Emmental valley, near Berne in Switzerland. This famous cheese with a Swiss taste owes its name to the Emmental valley, near Berne in Switzerland. Emmental is actually a `live' cheese, i.e. it has live bacteria, which continue the ripening process, even after the cheese is packed and placed on the retail shelves. However, it is a 100% vegetarian coagulating enzyme. The composition of Emmental cheese is of moisture 43%, fat 46% and salt 1.5% this product is to be stored at ordinary refrigeration temperature i.e. 4 degrees Centigrade to 8 degree Centigrade. Amul Emmental Cheese is available in a 200 gm pack. 6. AMUL PIZZA CHEESE
Amul, the largest selling brand of Cheese in India, introduced genuine Mozzarella Cheese for the first time. Amul Pizza Cheese has Moist, Soft, Elastic texture and has a very timely surface sheen and when fresh, it has a slightly salty blandish taste and pleasant aroma. Because of its stretch ability, i.e. ability to form strings when hot, this cheese is ideal for preparing Lasagna, Veal Cutlet, Alla Parmagnia and as a topping on pizzas.. Mozzarella is an excellent source of milk proteins and is palatable to the consumer and institutional segments. It composes of fat, moisture and salt. The Gouda cheese is an excellent taste used for pizza toppings and is widely used in major hotels.
Technologically, it is equivalent to Cream Cottage Cheese of western products. Amul Malai Paneer is available in already cut cubes form. The best quality Malai Paneer with quality assurance of Amul is the only national brand of Paneer available in India since 1997. It is also exported to US, Gulf as well Singapore & Japan markets regularly. Richer, Softer, Better" Paneer is made out of fresh milk. Compositions of Amul Malai Paneer are higher fat content (26-27%) and lower moisture content. This gives Amul Malai Paneer smooth, uniform texture and softness that most consumers desire. Diced Paneer is available in three pack sizes viz. 100 g, 200 g & 1 kg pack in heat sealed poly pouches to ensure the best quality.
AMUL PURE GHEE is made from Milk Fat. The composition of Amul is milk fat 99.7% and moisture 0.3%. the calorific value 900 kcal/100g. Amul sagar pure ghee is made from fresh cream. It has a typical rich aroma and granular texture. It is an ethnic product made by dairies with decades of experience being a rich source of Vitamin A, D, E and K. Meets AGMARK SPECIAL GRADE specification of the AGMARK scheme (1938) of Govt. of India.
AMUL MITHAI MATE SWEETENED CONDENSED MILK It is made from Sugar & Milk solids. It comprises of Sweetened Condensed Milk, Total Milk Solids, Fat, Added Cane Sugar, Partly Skimmed Sweetened Condensed Milk, Total Milk Solids, Fat, and Added Cane Sugar. It is a free flowing product and has a pleasant flavour. The product can be used to manufacture Ice Creams, Confectioneries like Toffees, Biscuits and Sweets. It Meets BIS standards: IS: 1166. 10. Amul Shrikhand
AMUL THE TASTE OF INDIA AMUL SHRIKHAND is made from Chakka, Sugar and flavoring agents/fruits (Elaichi, Saffron, Mango pulp). It contains fat, milk solids, and mango pulp. The Shrikhand is most commonly used at festive occasion as a sweet desert. Most processes are undertaken in order to improve the taste of these Shrikhand and it acts as a auspicious feed during festivals. Shrikhand is a traditional sweet. It is the only pasteurized Shrikhand which is been made from most modern dairy equipment which helps the Shrikhand of an extended shelf life with smooth texture. The calorific value is 260 kcal./100g. the product meets BIS specification [Link]-1980. 11. Masti Dahi
AMUL MASTI DAHI is made from Pasteurized Toned Milk. Amul mast dahi composes of essential nutrients such as fat 3.5% and SNF 8.5%. This product is available in packaged form. It is produced in a modern processing plant which helps to give a smooth, mild acetic acidic taste and pleasant flavour consistently.
AMUL THE TASTE OF INDIA AWARDS Amul has always produced qualitative products. The company maintains its total quality management in order to produce best quality products. The products produced by the company were always been appreciated by the consumers. In fact we can state that Amul has maintained a tradition to improve its performance and get noted amongst the top companies by bagging the most worthy prizes from business ceremony by getting these awards. the The list of awards received by Amul for their tremendous performance states the various measures adopted by the company in order to increase sales. Following are the three big awards which got by Amul for their best performances are: Ramakrishna Bajaj National Quality Awards-2003. International CIO 100 Awards for Resourcefulness. Rajiv Gandhi National Quality Awards-1999. Ramkrishna Bajaj National Quality Award-2003:-
AMUL THE TASTE OF INDIA The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the top scorer in the service category of the prestigious IMC Ramkrishna Bajaj National Quality Award 2003. The Certificate of Merit was presented at a glittering ceremony held at Mumbai on March 11 by the Governor of the Reserve Bank of India, Dr. Y. V. Reddy. According to Shri B. M. Vyas, Managing Director, GCMMF, this recognition has once again reiterated GCMMF's commitment to quality and excellence. The biggest strength of GCMMF is the trust it has created in the minds of consumers regarding the quality of its products. GCMMF and its brand Amul stand for guaranteed purity for whatever products it produces, he added. GCMMF has bagged this award for adopting noteworthy quality management practices for logistics and procurement. Over the years, it has established an efficient supply chain that penetrates even the remotest corners of the country. The information systems of the Federation are comprehensive and include details on product quality, delivery performance, supplier quality, disaster recovery and all essential commercial areas, the citation reads. The Ramakrishna Bajaj National Quality Award is based on framework and principles almost similar to the Malcolm Baldrige Award that is given by the President of the United States to businesses - manufacturing and service, small and large - and to education and healthcare organizations that apply and are judged to be outstanding in seven areas: leadership, strategic planning, customer and market focus, information and analysis, human resource focus, process management, and business results.
Mr. B M Vyas receives the Qimpro Gold Standard Award Qimpro Platinum Standard, the highest individual honour, has in recent years been awarded to Chandra Mohan, Aditya Birla, Deepak Parekh, F C Kohli, Dr J J Irani, Azim Premji, and Kumar Mangalam Birla. Qimpro Awards are recognized by the ASQ and the Institute of Quality Assurance, UK. INTERNATIONAL CIO 100 AWARDS FOR RESOURCEFULNESS:-
AMUL THE TASTE OF INDIA INTERNATIONAL CIO 100 AWARD FOR RESOURCEFULNESS
GCMMF is a winner of the prestigious international CIO 100 award from IDG's CIO Magazine, USA. The 2003 CIO 100 award recognizes the organizations around the world that excel in positive business performance through resourceful IT management and best practices. This CIO International IT excellence Award has recognized the Cooperative Movement & its Leadership under the "Amul" brand, initiated by Dr. V Kurien, Milkman of India, whos main Motto is to build Indian Society economically & literally strong through innovative cooperative resourceful network, so as to provide quality service & products to the end consumers and good returns to the farmer members. This award has also given direction that IT need to be encouraged & adopted more & more at grass root level and bridge the digital divide through proper training, re-training so as to bring radical change & benefit to the Indian society.
AMUL THE TASTE OF INDIA It has also recognized the Managing Director, Mr. B M Vyas, who has taken IT initiative by setting the direction "GCMMF as IT Company in Food business". It has also inspired all the employees of GCMMF Enterprise to sustain the challenges as a "Change Agent" by excelling their IT skills in order to transform the people around them towards IT Integration (e-Vision) on both the ends of supply chain (Village level Farmer to end consumer). This award also motivated the each & every member dairy, Amul's wholesale distributors, retailers, transporters and suppliers who have supported whole-heartedly the IT initiatives of GCMMF. The Gujarat Co-operative Milk Marketing Federation (GCMMF) has been honoured at the CIO 100 Symposium & Award Ceremony on August 19, 2003, at the Broad moor in Colorado Springs, Colorado, USA. Shri Subbarao Hegde, Head of IT had been to USA and received the said Award on behalf of GCMMF. Rajiv Gandhi National Quality Award 1999:After creating ripples in the market whether it be with a Rs. 20/- Pizza or with a "real" Ice Cream, Amul has once again bagged the biggest prize not only for new product launch for giving a tough fight to best of the food companies in extremely competitive segments. It has now topped as the winner of the "Best of All" Rajiv Gandhi National Quality Award for the year, 1999. The award which is considered equivalent of Malcolm Baldrige National Quality Award of USA and European Quality Award is the most prestigious award which recognizes achievements of an organization in terms of excellence in business results, business processes, customer satisfaction as well as societal and environmental impact. In a glittering function organized at Vigyan Bhawan, New Delhi on 12th November, 2001, Shri Shanta Kumar, Hon'ble Minister of Consumer Affairs, Food and Public Distribution gave away the awards to Shri B.M. Vyas, MD of GCMMF.
Introduction:-
As AMUL concerned with the manufacturing of perishable products it had a bird eye on the quality of the products produced by the company. In todays stiff competition it tried to strengthen its functional processes. Emerging trends of liberalization and impact of WTO has led to focus on Total Quality Management. Realizing that unless the TQM initiatives is been accepted by all business partners, the same would remain ineffective. As a very unique measure Amul extended all the TQM initiatives to its business partners whether it was the farmer producer in the village or a wholesale distributor in a metro town or its most sophisticated production unit. A number of TQM initiatives which run successfully across the organization are been mentioned below:1. Kaizen 2. Housekeeping 3. Small Group Activities 4. Hoshin Kanri(Policy Development ) Shri B.M. Vyas, Managing Director, championed this movement realized way back in 1994 that with emerging competition, doing business would become more exciting yet extremely competitive which would require at times not only a whole set of new skills and competencies but quick adaptability to change without much stress or turbulence. The initiation of TQM was to work with the well known quality management initiatives which have proven to be effective elsewhere to create a culture of transparency, openness and leadership in the organization.
1. Kaizen:Employees of GCMMF have done more than 1.60 lakhs Kaizen since May, 1995 which has impacted in bringing in a culture of continuous improvement. 2. Housekeeping:The housekeeping initiatives have helped keeping the offices/ warehouses neat, clean and more productive, be it is the Office premises or the godowns or even Computers. 3. Small Group Activities :150 SGAS have been carried out in cross functional groups to address the problem and pain areas of the organization i.e. issue of sales, marketing, HR or IT. The organization has implemented a customized ERP for seamless integration of its 40 odd sales offices from Jammu to Port-Blair and Head Office. All its wholesale dealers are computerized and GCMMF is moving on a B2B model for integration interface with its dealers be it for placing order for buying its products, sharing information or for tracking logistic of dispatch/receipt of goods. 4. Hoshin Kanri(Policy Development):GCMMF has also embarked upon for last 4 years, 'Hoshin Kanri' a employment initiative where more than 100 Officers/Heads participate twice in a year to review its business goals/processes and implement new initiatives. These are further cascaded to the wholesale dealers in different territories in a two day exercise called Vision Mission Strategy (VMS) Workshop. These initiatives have resulted common understanding of goals, eliminating communication barrier.
EFFECTIVENESS:The initiative of TQM six years back has made the organization efficient
whether it be in launch of brands, or in implementing ERP's or expanding its distribution network. More striking feature of GCMMF's TQM experience is the integration of its business linkages at the village level to the forward linkage through its sales offices/wholesale dealers in the market.
AMUL YATRA One of the unique initiatives has been in terms of involvement of its wholesale dealers in a common platform to address issues of market/customers. All the wholesale dealers from across the country have visited Anand in a unique programme called "AMUL YATRA". In the next phase, the organization has already started inviting the salesmen of these wholesale dealers for this programme. It also intends to invite the top retailers of various cities/towns to Anand. The purpose is not as much to orient them to GCMMF's business plans, but to inculcate a super-ordinate goal in their heart that when they are associated with AMUL, they are working for a modest milk producer in the rural hinterland of the country and that is what true progress is about. GCMMF has more than 200 Amul Quality Circles in the country where all the above wholesale Dealers meet in group on every third Saturday of the month to discuss their business, quality initiatives and also pain areas. This has impacted tremendously not only in communication but also in improving the transparency in the organization.
AMUL THE TASTE OF INDIA MARKETING & SALES PROMOTION STRATEGY Looking at the current Indian marketing scenario, we can say that we are moving back in time. Kotler says that in the evolution of marketing, before the marketing concept became popular, there is a selling concept which states that "customers and businesses, if left alone will ordinarily not buy enough of the organizations products. The organization must therefore undertake an aggressive selling and promotion effort" In this present scenario, it is true that companies will survive only if there is a super efficient sales force. The reasons are that increasingly every product is being commoditized and there is an increase in the power of retails, information explosion that has given the consumer an unusual power. This has ensured that without an efficient sales force companies cannot survive. Even when companies focus on sales effort, concept like segmentation should not be overlooked. For example, there has been lot of effort on increasing credit card usage in India. Credit card now comes free for life and sales people are just selling credit cards like chocolates. Is it not wise to look at whether the consumer wants a credit card? Does he like to use one? Does he have the ability to pay back? Recently a news channel showed a mutual fund agent giving discounts to a client from his brokerage. What does that mean? It simply means that we are not practicing marketing. We are just selling.... Many business gurus are saying that, customers are the god or king of the market. It can be understood from the fact that the customer is not the king as the companies want the consumer to be loyal. The real fact is that no company regard customer as the king. Everyone in the market cares about the money. Marketing is creating and exchanging goods of value between company objectives are achieved in that process. So what is happening now is this exchange process. Marketers tried to attract customersby treating them well and thus came the cliche customer is the
King". It is only economics in play. It is now the choice of the customer that whether he wants himself to be treated as a king (and pay for it). After realizations of the big issue Amul stated to make the marketing and sales promotion strategy to overcome the problem. Amul is the largest co-operative movement in India with 2.2 million milk producers organized in 10,552 co-operative societies in 2003-2004. The country's largest food company, Amul, is the market leader in butter, whole milk, cheese, ice cream, dairy whitener, condensed milk, saturated fats and long life milk. Amul follows a unique business model, which aims at providing 'value for money' products to its consumers, while protecting the interests of the milk- producing farmers who are its suppliers as well as its owners. Despite being a farmers' co-operative, Amul has given multinationals a run for their money. In butter, cheese and saturated fats, Amul has remained the undisputed market leader since its inception in 1955, by offering quality products at competitive prices. In other categories, Amul has nullified its late mover disadvantage through aggressive pricing, better quality, innovative promotion, and superior distribution.
a) PRODUCT:Tracks consumer needs & their changing lifestyles, & accordingly develops products to suit their needs. Product quality plays a paramount role & so does packaging. b) PRICING:The main USP of Amul brand is its low pricing. It hits at the transnationals by reducing its prices on its product portfolio. The competitive advantage is its backward integration strategy, which helps substantially in cost reduction.
c) PLACE:Any food company requires a dedicated cool chain network. Amul boasts of the largest cold chain network (18000 refrigerators) in India, as compared to any other company. It is surprising to note that it sells pizzas in rural markets too!
d) PROMOTION:Amul spends very less on its advertising budget, but spends it very effectively. It has the power of an umbrella brand Amul, which is highly respected brand name & enjoy the trust of 1000 million households. Thank to its brand mascot, the Amul girl, the co- operative has been able to get away with spending just one per cent of its revenues on advertising. In contrast, its competitors spends anywhere between 7 to 10 per cent on advertising. Amul positioning is Value for Money. It uses the services of Da Cunha Associates & FCB Ulka for its advertising efforts. Advertising:An Amul butter ad on Pakistan's Kargil War fiasco. The image shows the "Amul baby" in between George Fernandes and Vajpayee.
Its advertising has also started using tongue-in-cheek sketches starring the Amul baby commenting jovially on the latest news or current events. The pun in her words has been popular. 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. Sylvester daCunha, was the managing director of the advertising agency, ASP, that created the campaign in 1967 whose charm has endured fickle public opinion, gimmickry and all else. Mascot
The Amul baby Since 1967 Amul products' mascot has been the very recognizable "Amul baby" (a chubby butter girl usually dressed in polka dotted dress) showing up on hoardings and product wrappers with the equally recognizable 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 for other product like ghee and milk. She is probably one of the most enduring mascots in the world.
AMUL AND COMPETITION Amul operates in a highly competitive environment. Amul has to compete with 6 to 8 transnational in the market place. GCMMF popularly known trannationals across a clutch of product categories. Get your focus right is the mantra for Amul. as Amul is taking on
CADBURY
AMUL
BRITANNIA
PIZZ A COS
EXPORT 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 9 years. The major export products are:
Consumer Packs:-
Amul Pure Ghee Amul Butter Amul Shrikhand Amul Mithaee Gulabjamun Nutramul Brown Amul Malai Paneer
Bulk Packs:-
Many of our products are now available in the USA, Gulf Countries and Singapore.
Amul is going places. Literally. After having established its presence in China, Mauritius and Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), Indias largest milk cooperative, is waiting to flood the Japanese market. The milk cooperative, which markets Amul brand of products, is hopeful of bagging a major export order from Japan. In keeping with the popularity of the brand abroad, GCMMF has revised its export target for this fiscal by Rs 50 crore to Rs 200 crore. Says GCMMF managing director B M Vyas, We have had a distributor in Japan since 1994 but no major presence in that country. But a few days ago a delegation from Japan, under the aegis of Agriculture and Livestock Industry Corp (ALIC), visited our facilities at Anand (Gujarat) and were pleasantly surprised with the sheer scale of our dairy operations. I am hopeful that some of our products, such as milk powder and cheese, could be exported to Japan soon. Then, GCMMF is also looking at Sri Lanka as one of its next export destinations. Amul products are already available on shelves across several countries, including the US, China, Australia, West Asian countries and Africa. While Vyas declined to reveal other overseas markets that the federation is targeting now, he said that demand for dairy products from India is expected to grow in many overseas markets. Claiming that buoyant exports help the company maintain prices in the domestic market, Vyas said that in times of milk surplus, having ready export markets allow the federation to save itself from making any distress sales.
GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include pouch milk, ultra heat treated (UHT) milk, ice-cream, butter, cheese and buttermilks. KANAN DAIRY:Kanan Group is a fast growing group with interests in the Fashion and food Industry.
Kanan Group of Companies, a
products and services to consumers. In partnership with your home, the favorite Amul products.
These dairy-based products are imported to the United States throughout the year and sold to more than 1000 ethnic grocery stores around the country through KDPs network of 7 distributors. While awaiting
SOCIAL AWARENESS
AMUL RELIEF TRUST:A devastating earthquake (Richter scale 7.9) hit Gujarat on 26th January 2001. The epicenter of the quake was located in Kutch district. It caused death of thousands of people, tens of thousands were injured, hundreds of thousands were rendered homeless and damage of billions of Rupees was done. GCMMF formed a specific organization named Amul Relief Trust (ART) under the Chairmanship of Dr. V. Kurien in 2001 with a donation of Rs. 50 Millions for reconstruction of the school buildings damaged in the 2001 earthquake in the Kutch area. The Trust reconstructed 6 schools damaged by the above earthquake at a cost of Rs. 41.1 millions in Kutch area. Four of these schools started re-functioning from the last two academic sessions and the other two schools from the current session. 1. A school reconstructed by Amul Relief Trust in the earthquake affected Ratadia Village in Mundra Taluka of Gujarat. 2. A school reconstructed by Amul Relief Trust in the earthquake affected Nana Asalia Village in Mundra Taluka of Gujarat 3. A school reconstructed by Amul Relief Trust in the earthquake affected Devpar Village in Mandvi Taluka of Gujarat. 4. A school reconstructed by Amul Relief Trust in the earthquake affected
Toda Village in Mundra Taluka of Gujarat. 5. A school reconstructed by Amul Relief Trust in the earthquake affected Kathada Village in Mandvi Taluka of Gujarat. 6. A school reconstructed by Amul Relief Trust in the earthquake affected Kathada Village in Mandvi Taluka of Gujarat.
AMUL THE TASTE OF INDIA A school reconstructed by Amul Relief Trust in the earthquake affected Ratadia Village in Mundra Taluka of Gujarat.
AMUL THE TASTE OF INDIA A school reconstructed by Amul Relief Trust in the earthquake affected Nana Asalia Village in Mundra Taluka of Gujarat.
AMUL THE TASTE OF INDIA A school reconstructed by Amul Relief Trust in the earthquake affected Devpar Village in Mandvi Taluka of Gujarat.
AMUL THE TASTE OF INDIA A school reconstructed by Amul Relief Trust in the earthquake affected Toda Village in Mundra Taluka of Gujarat.
AMUL THE TASTE OF INDIA A school reconstructed by Amul Relief Trust in the earthquake affected Moti Bhadai Village in Mandvi Taluka of Gujarat.
AMUL THE TASTE OF INDIA A school reconstructed by Amul Relief Trust in the earthquake affected Kathada Village in Mandvi Taluka of Gujarat.
Amul started to give the award namely Amul Shakti Vidyashree Award to class of ten topers of school.
This is an attempt to include the School Segment as part of our Amul Food Festival. During 2005-06, we have instituted an Amul Shakti Vidya Shree Award, to be given to the Class 10 topper of schools.
Our mission is to create a strong association of Amul Shakti with Academic performance at the school level. The Objective is to initiate and institutionalize an award in order to recognize the academic effort of the Class 10 school topper in the State/ Central Board.
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Designation
Address
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Part II
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To know the consumers reaction towards brand in terms of price, offers & schemes
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SCOPE OF THE STUDY The study plays a very important role in market research. It also helps to understand and identify the human action towards brand. The information thus gathered by conducting a systematic market research would help to find out the brand awareness of the consumers. This study is mainly focused towards people of Lucknowwho belongs to different age group and resides in different localities, in order to find out their preference given to particular brand.
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NEED FOR THE STUDY Today customers are facing a growing range of choice in the different brands of products and services. They are making their choice on the basis of their perceptions of brand, quality service and value. Companies need to understand the rapid growth of local market place. Where, the companies should choose brand name with an eye to their global reach. This study is not concerned only with brand awareness but deals also with other facts. It includes a wide preview of From where did they come to know about the product? Did they feel that the brand is important to purchase? If given, would they like to purchase same brand product again? Did they feel that the branded product matches their expectations? How the brands influence the market? How relevant the brand towards trend? Are they satisfied with the brand, price, quality etc.? These questions will help in understanding better, what factor influence the people about brand awareness? The marketers have realised that they have to take technical decisions concerning the brand to cater to the need of the consumers to develop brand identify and brand position. The company must understand how their consumers perceive brand, quality and how much they expect. Therefore, it becomes very necessary to understand, analyse and evaluate the brand awareness in the systematic manner and act accordingly for existence.
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RESEARCH METHODOLOGY
Data is the information collected from various sources. It is concerned with gather accurate and proper knowledge about the problem that is in hand. Formally there are two types of gathering information namely primary data and secondary data. Data collection mode: Two methods have been used to collect the relevant data, which are essential for the study, they are: Primary Data: Data is collected to obtain desired information through structured questionnaire. Secondary Data: It is compiled through books, magazines, newspaper and internet etc
Sampling plan: A small selection of the large group which is taken for interviewing is called sampling. A sample is taken representative and adequate which gives proper information. In order to study brand awareness towards Amul masti dahi the following sampling plan was adopted. Sample size: A sample size of 60 was taken in order to carry the study. Sample Area : Lucknow : Rajajipuram Sampling unit: For this survey the target population consisted of people residing in various localities of Lucknow between the age group 20-70 who uses Amul masti dahi. Instrument of data collection is questionnaire.
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Sampling technique: A simple random technique was adopted to select the representative sample from the sampling unit.
Tools for data collection Data for this study is collected from both primary and secondary data. The primary data is collected through a structured questionnaire which was prepared to interview the respondents. The secondary data was collected through discussion with officials of the company to get general information; data was also collected from newspaper, books, magazines, company records and internet etc
PLAN OF ANALYSIS The data is collected from both primary and secondary sources and also been tabulated in the form of tables and drawn in to graphs depicting the various finding significantly. The data collected through questionnaire are analysed in detail and divided in to various categories of preferences and conclusion are drawn on the possible changes are causes for brand preference and market share is given based on the research study.
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Part III
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RETAILER QUESTIONNAIRE
1. Type of outlet :[Link]. 1 2 3 Topic General Store Dairy Percentage (%) 40 30 15 15
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[Link]. 1 2
Topic Yes No
Percentage (%) 80 20
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B. packaged
Topic Loose Packaged Both
C. both
Percentage (%) 10 80 10
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[Link]. 1 2 3 4 5
Percentage (%) 40 30 10 10 10
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[Link]. 1 2
Topic Yes No
Percentage (%) 70 30
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[Link]. 1 2 3
Percentage (%) 30 60 10
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[Link]. 1 2
Topic
200gms 400gms
Percentage (%) 70 30
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[Link]. 1 2
Topic
Yes No
Percentage (%) 60 40
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[Link]. 1 2
Topic
200gms 400gms
Percentage (%) 20 80
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[Link]. 1 2
Topic
Yes No
Percentage (%) 75 25
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CONSUMER QUESTIONNAIRE
1. Type of Dahi you consume:-
[Link]. 1 2 3 4
Topic
Percentage (%) 20 50 20 10
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[Link]. 1 2 3 4
Percentage (%) 70 20 7 3
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[Link]. 1 2 3
Percentage (%) 60 10 30
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[Link]. 1 2 3 4 5
Percentage (%) 40 30 10 10 10
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5. Frequency of purchase? [Link]. 1 2 3 4 Topic Daily Alternate Days Once in a Week Occasionally Percentage (%) 40 20 20 20
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[Link]. 1 2 3
Percentage (%) 65 30 5
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[Link]. 1 2
Topic Yes No
Percentage (%) 80 20
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[Link]. 1 2
Topic Yes No
Percentage (%) 70 30
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[Link]. 1 2 3 4
Percentage (%) 30 20 30 20
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[Link] you always get AMUL MASTI DAHI as and when required from your neighbouring shop?
[Link]. 1 2
Topic Yes No
Percentage (%) 70 30
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[Link] prices of AMUL MASTI DAHI is Rs. 18 for 200gms and Rs.35 for 400gms, are you satisfied with it?
[Link]. 1 2
Topic Yes No
Percentage (%) 70 30
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FINDINGS
On the basis of customer survey report most of the respondent was from middle and
higher middle class. Nestle curd is rolling almost three times more than Amul Masti Dahi because of its
quality, availability and more number of product range. Housewife is the key decision maker 72%
Most of the respondent have expressed that proper advertisement is necessary to create
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SUGGESTIONS
Since the set curd is consumed by upper class and upper middle class, company must go for the verities of products like sugar free curd for old age people, slim curd for teen age with different flavour. Company should provide commercial refrigeration supply to keep the product in set form The product needs advertisement to create the brand value. Availability of the product in the shop is the most important factor. There is always a complaint from the distributors regarding supply shortage from the company which can be checked by centralizing the distribution channel .in such case if the distributors does not have proper stock to supply the product in the required retail shop then the problem can be solved by taking it from the other distributor of the Amul company which is nearby to their place. There is no doubt that Amul curd is a brand name, but it should create brand identity. Company should provide expiry replacement facility to the retailers, which will keeping the stock
Supply should be regular to all the outlets including those that lie in the pocket roads and
not just in the outlets which lie on the easily accessible routes.
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Amul has a relatively good distribution network, but still company is not able to fulfill
the demand of outlet in the peak season when demand is very high. Here company should consider on the supply of product in the peak season. Only fresh product should be supply in the outlet. The main cause of the supply of fresh
product is that customer always wants fresh product. They dont want to take 3 or 4 days old product.
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CONCLUSION
This project was of great importance to me, I have learnt a lot in this project, As we know that Amul is a very big organization and market leader in dairy products. It has maximum market share in Milk, Butter and Cheese, which are its main/core products but curd industry is also a profitable industry and the company cannot ignore it. With the help of research, company can find out its week points in curd and can increase its market share through rectify mistakes. Finally I hearby conclude by saying that I was really privileged to work in the company like Amul and had got such a real time exposure of FMCG company.
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BIBLIOGRAPHY
MARKETING MANAGEMENT AUTHOR (PHILIP KOTLER)
PRINCIPLES OF MARKETING BASIC MARKET PRINCIPLE AND MARKETING PUBLISHED BY CASELL PUBLISHERS LTD. WEBLIOGRAPHY:
[Link] [Link] [Link]
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RETAILER QUESTIONNAIRE
11. Name of the shop:_____________________________________________________ _ 12. Address:_____________________________________________________ _ 13. Name of the respondent:___________________________________________________ 14. Contact Number:_____________________________________________________ _ 15. Type of outlet :A. General store B. Dairy C. Grocery shop D.
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A. Amul
B. Parag
C. Gyan
D. Mother dairy
E.
20. If not, what is the reason for not selling? A. Low Margin B. Low demand C.
others(specify)______________ 21. Total Daily Sales of dahi(no. of cups) of all brands:A. 200gms_______ B. 400gms_______
24. Are you satisfied with the services of our ADA/WD? A. Yes 25. Suggestions, if any:_____________________________________________________ _____________________________________________________
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B. No
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CONSUMER QUESTIONNAIRE
[Link] of respondent:___________________________________________________ [Link] & Class of family:___________________________________________________ [Link]:_____________________________________________________________ [Link] of Dahi you consume:A. Homemade Non-packaged [Link] much Dahi do your family consumes? A. 200gms than 500gms [Link] do you use Dahi? A. In preparations B. In the same form C. Both B. 400gms C. 500gms D. more B. Loose C. Packaged D.
[Link] packaged Dahi is preferred, then which brand do you prefer:A. Amul B. Parag C. Gyan D. Mother Dairy E. Others
(specify)____________ [Link] of purchase? A. Daily Occasionally [Link] where do you purchase dahi?
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B. Alternate days
C. Once in a week
D.
A. Dairy
B. General Store
C.
[Link] you tried AMUL MASTI DAHI? A. Yes [Link] no, what is the reason__________________________________________________ [Link] yes , rate the following attributes from 1-5:A. Freshness _____ B. Texture ______ Overall Quality _____ [Link] you always get AMUL MASTI DAHI as and when required from your neighbouring shop? A. Yes B. No C. Taste _______ D. B. No
[Link] prices of AMUL MASTI DAHI is Rs. 18 for 200gms and Rs.35 for 400gms, are you satisfied with it? A. Yes B. No
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