Amul Marketing in Kurla Study
Amul Marketing in Kurla Study
Date: SUPERVISOR
DR. ARCHANA CHANDRA
COMMERCE
DECLARATION
ANIKET YADAV, MCOM (COMMERCE) Student,
Prof. Rajendra Singh (Rajju Bhaiya) University,
declares the dissertation work. “MARKETING &
DISTRIBUTION CHANNEL OF AMUL IN KURLA”.
Conducted under the able guidance of
Dr. Archana Chandra is my original effort which
has not been presented elsewhere as to my best
knowledge an belief.
ANIKET YADAV
M.COM Student
EXECUTIVE SUMMARY:
Amul Milk, brand of the Gujarat Cooperative Milk Marketing Federation Limited (GCMMF).
Amul milk is the significant player in Mumbai in milk segment. The project basic objectives are
to estimate demand of Amul Milk and promoting Amul milk in Kurla (W) at the same time. In
today’s competitive world while entering in the market it is very necessary to have good
knowledge of the potential of a particular market. The information regarding the activities of
competitor’s existing in the market so that we can plan our each activity according to that. Also
it is necessary to retain the existing customers apart from attracting the new customers.
The Project is concern with to determine the penetration level of Amul dairy milk in Kurla(W) &
Market share evaluation. This project is conducted in Kurla (W) , mainly comprising the
following areas, S.M Road , CST Road/Halwapul , Kamani Road , Near Kurla Depot , Bellgram
Road , New Mill Road , LBS Marg & S.M Road.
The project included as part of MMS Programme and the project is done during the month of
May and June. The project was aimed to find out various strategies that can be implemented to
increase the Retail penetration of Amul milk in Kurla Region of Mumbai .These strategies were
suggested after a research on the milk industry in Kurla. There was questionnaire prepared for
retailers. The sample size was decided on 54 retailers by dividing them street wise to study the
various areas in Kurla (W).
I encountered a little problem in collecting data as the retailers were reluctant in providing any
kind of information on their relationship with the distributor/company. Also to ensure that the
information was accurate, the retailer had to be cross questioned on many occasions.
Basic analysis was done through pie charts and bar diagram to reveal the real picture in the
market in terms of percentage so that strategies could be thought upon the concrete data that
had been collected. These strategies were to be sought to be of benefit to the company, the
distributors, the retailers and the consumers. On successful implementation of the strategies it
can be expected that the retail penetration of Amul milk would increase in Kurla(W).
TABLE OF CONTENTS
NO TITLE PAGENO
1. To find out the penetration of Amul milk product sold by the retailers
b. Strategies adopted by the company and its distributors that influence the stocking
5. To know the factors which affects consumer’s buying behavior to purchase milk.
6. To know the preference of Amul Milk Pouch with comparison to other competitive brands.
7. To collect detailed information about the price, supply or any required improvement towards
the Amul Milk Pouch.
8. To collect the detailed data by filling up the questionnaire from the various retailers
6. It gives information about the sales promotion activities to improve the milk sale.
10. It will help to determine penetration level which can be used to influence large number
___of retailers so as to increase the sales of the Amul milk effectively
INDUSTRY OVERVIEW
Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples
of FMCG generally include a wide range of frequently purchased consumer products such as
toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as
other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods.
FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft
drinks, tissue paper, and chocolate bars.
A subset of FMCGs is Fast Moving Consumer Electronics which include innovative electronic
products such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These
are replaced more frequently than other electronic products.
White goods in FMCG refer to household electronic items such as Refrigerators, T.Vs, Music
Systems, etc.
In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industries in India.
According to the AC Nielsen India study, the industry grew 5.3% in value between 2004 and
2005.
The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1
billion. Well-established distribution networks, as well as intense competition between the
organized and unorganized segments are the characteristics of this sector. FMCG in India has a
strong and competitive MNC presence across the entire value chain. It has been predicted that
the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The
middle class and the rural segments of the Indian population are the most promising market for
FMCG, and give brand makers the opportunity to convert them to branded products. Most of
the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per
capita consumption as well as low penetration level, but the potential for growth is huge.
The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid
urbanization, increased literacy levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as well. According
to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the
balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are
owned by Hindustan Lever. Pepsi is at number three followed by Thums Up. Britannia takes the
fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the
soft drink and cigarette companies have always shied away from revealing. Personal care,
cigarettes, and soft drinks are the three biggest categories in FMCG. Between them, they
account for 35 of the top 100 brands.
S. NO. Companies
1. Hindustan Unilever Ltd.
8. Britannia Industries
Beginning in organized milk handling was made in India with the establishment of Military Dairy
Farms.
Handling of milk in Co-operative Milk Unions established all over the country on a small
scale in the early stages.
Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945
Pasteurization and bottling of milk on a large scale for organized distribution was started
at Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961), Madras (1963)
etc.
Establishment of Milk Plants under the Five-Year Plans for Dairy Development all over
India. These were taken up with the dual object of increasing the national level of milk
consumption and ensuing better returns to the
primary milk producer. Their main aim was to produce
more, better and cheaper milk.
This part of the industry has helped the India economy in better possible ways. Some of the
glaring problems of the economy are dealt with much ease. The unemployment and the rates
of poverty have diminished as this sector has provided ample scope to these fields. The industry
has seen rapid growth in recent years. The best possible technologies are undertaken and the
resources are used in fullest extent so that the sector reaches the booming phase.
India houses the largest livestock in the world. 50% percent of the buffalo and 20 % the cattle
are present in India in respect to world. Moreover the milk and the milk products of India are
highly acclaimed in different parts of the world. It ranks first in producing dairy products in
India. Some of the past reports of the past year found that when the production of milk was 72
million then the demand reached 80million. So the country under the regulatory bodies have
gone far to increase the production of milk and other milk products to_higher_extent.
The preset production of milk as marked in the year 2009- 2010 is 112mt which follows a
growth rate of 4%. But the recent research confirmed that by 2012-21 the growth rate must
increase to 5.5% where the quantity produces should be 180mt. this is only due to higher the
consumption rate. More over the country is stressing on the milk product industries to increase
there production rate, all the public and the private sector s of milk
production_are_taken_into_grant.
The per capita availability of milk is 253grams/day. The government is trying hard to increase
these rates too.
Dairy is a place where handling of milk and milk products is done and technology refers to the
application of scientific knowledge for practical purposes. Dairy technology has been defined as
that branch of dairy science, which deals with the processing of milk and the manufacture of
milk products on an industrial scale.
In developed dairying countries such as the U.S.A., the year 1850 is seen as the dividing line
between farm and factory-scale production. Various factors contributed to this change in these
countries, viz. concentration of population in cities where jobs were plentiful, rapid
industrialization, improvement of transportation facilities, development of machines, etc.
whereas the rural areas were identified for milk production, the urban centers were selected
for the location of milk processing plants and product manufacturing factories. These plants
and factories were rapidly expanded and modernized with improved machinery and equipment
to secure the various advantages of large-scale production. Nearly all the milk in the U.S.A.
before 1900 was delivered as raw (natural) milk. Once pasteurization was introduced, it
developed rapidly. Mechanical refrigeration helped in the rapid development of the factory
system of market milk distribution.
In India, dairying has been practiced as a rural
cottage industry since the remote past. Semi-
commercial dairying started with the establishment
of military dairy farms and co-operative milk unions
throughout the country towards the end of the
nineteenth century.
Gradually farmers within easy driving distance began delivering milk over regular routes in the
cities. This was the beginning of the fluid milk-sheds which surround the large cities of today.
Prior to the 1850s most milk was necessarily produced within a short distance of the place of
consumption because of lack of suitable means of transportation and refrigeration.
The Indian Dairy Industry has made rapid progress since Independence. A large number of
modern milk plants and product factories have since been established. These organized dairies
have been successfully engaged in the routine commercial production of pasteurized bottled
milk and various Western and Indian dairy products. With modern knowledge of the protection
of milk during transportation, it became possible to locate dairies where land was less
expensive and crops could be grown more economically.
In India, the market milk technology may be considered to have commenced in 1950, with the
functioning of the Central Dairy of Aarey Milk Colony, and milk product technology in 1956 with
the establishment of AMUL Dairy, Anand. The industry is still in its infancy and barely 10% of
our total milk production under goes organized handling.
More than 2,445 million people economically active in agriculture in the world, probably 2/3 or
even more ¾ of them are wholly or partly dependent on livestock farming. India is endowed
with rich flora & Fauna & continues to be vital avenue for employment and income generation,
especially in rural areas. India, which has 66% of economically active population, engaged in
agriculture, derives 31% of Gross Domestic Product GDP from agriculture. The share of livestock
product is estimated at 21% of total agricultural sector.
World Production
1 India 114.4
4 China 32.5
5 Germany 28.5
6 Russia 28.5
7 Brazil 26.2
8 France 24.2
11 Ukraine 12.2
12 Poland 12
13 Netherlands 11.5
14 Italy 11.0
15 Turkey 10.6
16 Mexico 10.2
17 Australia 9.6
18 Egypt 8.7
19 Argentina 8.5
Due to high production of milk the scope of milk processing would also increase
There is a improved purchasing power of the consumer
The transport facilities are easy and are readily available
The manufacture instruments of high quality are coming along
Apart from the cooperative and public milk sectors there are certain upcoming
private sectors
There is highly trained and wide recourse of man power
The natural resource of the country is such wide that it gives scope for further widening.
To boost up the industry two major aspects are to be dealt with and they are
1. To introduce the value added products like condensed milk, cheese, khoa, ad even to
fuel the baby foods. More over the chocolate and the ice-cream industry also have to
increase their growth rate.
2. To enhance the export. The country should export quality good so too meet the
levels of international market.
So , as we have seen about the industry the FMCG sector in India has a strong and competitive
MNC presence across the entire value chain & is one of the fast growing industries in India
whereas milk production in India is also the highest in the world.
Company Profile
Amul "Priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," (meaning
Precious) was suggested by a quality control expert in Anand.) formed in 1946, is a dairy
cooperative in India. It is a brand name managed by an apex cooperative organisation, Gujarat
Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some
2.8 million milk producers in Gujarat, India.
Amul is based in Anand, Gujarat and has been an example of a co-operative organization's
success in the long term. "Anyone who has seen … the dairy cooperatives in the state of
Gujarat, especially the highly successful one known as AMUL, will naturally wonder what
combination of influences and incentives is needed to multiply such a model a thousand times
over in developing regions everywhere." The Amul Pattern has established itself as a uniquely
appropriate model for rural development. Amul has spurred the White Revolution of India,
which has made India the largest producer of milk and milk products in the world[citation
needed]. It is also the world's biggest vegetarian cheese brand .
Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual
turnover of US $1700 million (2009–10). Currently Unions making up GCMMF have 2.9 million
producer members with milk collection average of 9.10 million litres per day. Besides India,
Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China,
Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in
1994 did not succeed, but now it has fresh plans entering the Japanese markets. Other
potential markets being considered include Sri Lanka.
Dr Verghese Kurien, former chairman of the GCMMF, is recognised as a key person behind the
success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was
elected chairman of GCMMF.
The india District Co-operative Milk Producers' Union 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 because of its limitations in 1946 British Raj.
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 and managed by Dr. V Kurien along with Shri H M
Dalaya. The first modern dairy of the Kaira Union was established at Anand. Indigenous
research and development 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 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).
Dr. Verghese Kurien, the World Food Prize and the Magsaysay Award winner, was the architect
of India’s White Revolution, which helped India emerge as the largest milk producer in the
world.
Impressed with the development of dairy cooperatives in Kaira District and 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.
GCMMF
GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims
to provide remunerative returns to the farmers and also serve the interest of consumers by
providing quality products which are good value for money.
Members: 13 District Cooperative Milk Producers'
Unions
No. of Producer Members: 3.03 million
No. of Village Societies: 15,712
Total Milk handling capacity: 13.67 million litres per day
Milk collection (Total - 2010-11): 3.45 billion litres
Milk collection 9.2 million litres
(Daily Average 2010 -11):
Milk Drying Capacity: 647 Mts. per day
Cattlefeed manufacturing 3690 Mts per day
Capacity:
Sales Turnover (2010-11) Rs. 9774 Crores (US $ 2.2 billion)
GCMMF markets and manages the Amul brand. From mid-1990s Amul has entered areas not
related directly to its core business. Its entry into ice cream was regarded as successful due to
the large market share it was able to capture within a short period of time – primarily due to
the price differential and the brand name. 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 Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest food
products marketing organization of India. It is the apex organization of the Dairy Cooperatives
of Gujarat. This State has been a pioneer in organizing dairy cooperatives and our success has
not only been emulated in India but serves as a model for rest of the World. Over the last five
and a half decades, Dairy Cooperatives in Gujarat have created an economic network that links
more than 2.8 million village milk producers with millions of consumers in India and abroad
through a cooperative system that includes 13,141 Village Dairy Cooperative Societies (VDCS) at
the village level, affiliated to 13 District Cooperative Milk Producers’ Unions at the District level
and GCMMF at the State level. These cooperatives collect on an average 7.5 million litres of
milk per day from their producer members, more than 70% of whom are small, marginal
farmers and landless labourers and include a sizeable population of tribal folk and people
belonging to the scheduled castes.
The turnover of GCMMF (AMUL) during 2008-09 was Rs. 67.11 billion. It markets the products,
produced by the district milk unions in 30 dairy plants, under the renowned AMUL brand name.
The combined processing capacity of these plants is 11.6 million litres per day, with four dairy
plants having processing capacity in excess of 1 million Litres per day. The farmers of Gujarat
own the largest state of the art dairy plant in Asia – Mother Dairy, Gandhinagar, Gujarat –
which can handle 2.5 million litres of milk per day and process 100 MTs of milk powder daily.
During the last year, 3.1 billion litres of milk was collected by Member Unions of GCMMF. Huge
capacities for milk drying, product manufacture and cattle feed manufacture have been
installed. All its products are manufactured under the most hygienic conditions. All dairy plants
of the unions are ISO 9001-2000, ISO 22000 and HACCP certified. GCMMF (AMUL)’s Total
Quality Management ensures the quality of products right from the starting point (milk
producer) through the value chain until it reaches the consumer.
Ever since the movement was launched fifty-five years ago, Gujarat’s Dairy Cooperatives have
brought about a significant social and economic change to our rural people. The Dairy
Cooperatives have helped in ending the exploitation of farmers and demonstrated that when
our rural producers benefit, the community and nation benefits as well.
The Gujarat Cooperative Milk Marketing Federation Ltd. cannot be viewed simply as a business
enterprise. It is an institution created by the milk producers themselves to primarily safeguard
their interest economically, socially as well as democratically. Business houses create profit in
order to distribute it to the shareholders. In the case of GCMMF the surplus is ploughed back to
farmers through the District Unions as well as the village societies. This circulation of capital
with value addition within the structure not only benefits the final beneficiary – the farmer –
but eventually contributes to the development of the village community. This is the most
significant contribution the Amul Model cooperatives has made in building the Nation.
Achievements:
Amul : Asia’s largest dairy co-operative was created way back in1946 to make the milk producer
self-reliant and conduct milk- business with pride. Amul has always been thetrend setter in
bringing and adapting the most modern technology to door steps to ruralfarmers.
First self motivated and autonomous farmers‟ organization comprising of more than
5000000 marginal milk producers of Kaira District.
Created Dairy co-operatives at village level functioning with milk collection
centresowned by them.
Computerized milk collection system with electronic scale and computerized accounting
system.
The first and only organization in world to get ISO 9000 standard for its farmers co-
operatives.
First to produce milk from powder from surplus milk.Amul is the live example of how co-
operation amongst the poor marginal farmers can provide means for the socio-
economic development of the under privileged marginal farmers.
Amul in abroad:
Amul is going places. Literally. After having established its presence in China, Mauritius and
Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), India‟s
largest milk cooperative, is waiting to flood the Japanese market.Then, GCMMF is also looking
at Sri Lanka as one of its next export destinations. Amul products are already available on
shelves across several countries, including the US, China,Australia, West Asian countries and
Africa.GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include pouch
milk,ultra heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk.
Supply Chain :
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.
Product Profile
Product Name - Amul Gold
Description - Pasteurised milk Amul milk meets the PFA standards for the respective type of
milk.
Product Specifications
Product Features
Amul Milk is the most hygienic liquid milk available in the market.
It is pasteurized in state-of-the-art processing plants and pouch-packed to make it
conveniently available to consumers.
Product Application
Direct consumption, Making of : Tea or Coffee, Sweets, Khoa, Curd, Buttermilk, Ghee
Available in (Segments/Markets)
Gujarat, Delhi & NCR, Mumbai, Kolkata, Kanpur, Lucknow, Allahabad, Agra, Meerut, Aligarh,
Asansol, Nagpur, Raipur, Indore, Bhopal, Jaipur, Ajmer, Pushkar, Udaipur, Jodhpur, Pali , Pune,
Nasik
Product Name - Amul Tazaa
Product Specifications
Product Features
Amul Milk is the most hygienic liquid milk available in the market.
It is pasteurized in state-of-the-art processing plants and pouch-packed to make it
conveniently available to consumers.
Product Application
Direct consumption, Making of : Tea or Coffee, Sweets, Khoa, Curd, Buttermilk, Ghee
Available in (Segments/Markets)
Gujarat, Delhi & NCR, Mumbai, Kolkata, Kanpur, Lucknow, Allahabad, Agra, Meerut, Aligarh,
Asansol, Nagpur, Raipur, Indore, Bhopal, Jaipur, Ajmer, Pushkar, Udaipur, Jodhpur, Pali, Pune,
Nasik
Competitors Profile
Mahanand Milk
Mahanand Milk , the World-Wide Taste of Happiness. Mahanand Dairy is the Largest Cow Milk
packing and distributing dairy in Asia. Mahanand Dairy is always related to any breakthrough or
advent in the Milk Production and Dairy Technology in India. Mahananda has launched
Mahanand_Parijatak_Scheme.
Milk is that inevitable bond which binds a child to its mother,a bond to which everyone can
relate. Mahanand Milk keeps alive the Indian heritage, helping strengthen and nurture the
bond.
At present Mahanand Dairy is distributing 8.5 Lac Litres milk per day through 722 milk
distributors (Ex Dairy Distributors -174 and shop Distributors, Commission Agents etc. - 548).
Gokul
Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd. well known with its popular brand ‘Gokul‘ is
an Operation Flood cooperative dairy project established on 16 th March 1963. Since then
achieved many land marks in Milk Procurement, Extension, Animal Health, Breeding, Milk
Processing, Product making and Marketing. At present Gokul has modern 7 Lakh Liters/day
capacity dairy plant with 4 owned and 1 hired chilling centers having 4.25 Lakh Liters/day milk
handling capacity with modern Packing Unit at NaviMumbai.
For milk production enhancement in Milk shed we have presently 39 Mobile veterinary routes ,
401 Cluster and 17 static A. I. Centers, Own Cattle Feed Plant of 200 MT/day production
capacity with popular ‘Mahalaxmi’ brand. A state of the art 300 MT/day capacity Cattle Feed
Plant expandable to 500 MT/day is presently under execution at Kagal-Hatkanangale Five Star
MIDC.
Aarey
Aarey Milk Colony (established in 1949) is situated in Goregaon East, a suburb of Mumbai. It
has gardens, a nursery, lakes, an observation pavilion, picnic facilities, and milk plants.
On average, 16,000 cattle are reared on 1,287 hectares of land, and 32 cattle farms. Some of
the attractions in Aarey Milk Colony are the Aarey Garden Restaurant, Chota Kashmir and the
Boating rides and the Picnic Spot.
The Aarey milk colony is situated off the Western Express Highway which runs acrosss Mumbai.
It is one of the most modern milk colonies in the world. Apart from being a milk producing
center, it is also known for its greenery and beautiful surroundings. The garden is spread over
4,000 acres (16 km2) of parkland and is a good place for tourism. There is an observation
pavilion on a hill near the entrance to the colony from where one can survey an enchanting
landscape.
Aarey Milk Colony has good facilities for picnics and get-togethers. It has milk plants, gardens, a
nursery and a lake in the vicinity that attracts visitors and makes it a suitable location for a
weekend getaway or excursion. The colony has been used a number of times as a site for film
shootings.
Goverdhan
Gowardhan, founded by Parag Milk Foods Pvt. Ltd. in 1992, is one of India's largest private
dairies,with an output capacity of 1,000,000 liters per day.
Located in a lush green village called Manchar in Maharashtra (60 km from Pune), we pride
ourselves on owning the largest cow farm in India as well as Asia's largest cheese plant
It is an ISO 9000 and AGMARK certified company, committed to international standards of
product quality. Our product portfolio includes Skim Milk Powder, Whole Milk Powder, Ghee,
Processed Cheese, Butter,Dahi, proprietary foods like Dairy Whitener and Gulab Jamun Mix
powder under the brand names of "Gowardhan" and 'Go' ,all made from 100% fresh cow milk.
Mother Dairy
Mother Dairy – Delhi was set up in 1974 under the Operation Flood Programme. It is now a
wholly owned company of the National Dairy Development Board (NDDB).
Mother Dairy markets & sells dairy products under the Mother Dairy brand (like Liquid Milk,
Dahi, Ice creams, Cheese and Butter), Dhara range of edible oils and the Safal range of fresh
fruits & vegetables, frozen vegetables and fruit juices at a national level through its sales and
distribution_networks_for_marketing_food_items.
Mother Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi,
Mumbai, Saurashtra and Hyderabad. Mother Dairy Milk has a market share of 66% in the
branded sector in Delhi where it sells 2.3 million liters of milk daily and undertakes its
marketing operations through around 14,000 retail outlets and 845 exclusive outlets of Mother
Dairy.
Mother Dairy has over the last 3 decades, harnessed the power of farmer cooperatives to
deliver a range of delicious products and bring a smile on your face. In times to come, Mother
Dairy shall strive to remain one of India’s finest food companies.
Reliance
Reliance Dairy Foods, a subsidiary of Reliance Retail, is muscling into the country’s branded milk
product market with a new brand that will take on established players such as Amul, Mother
Dairy, Nestle and Gowardhan by offering higher margins to retailers and 10% extra milk to
customers. and 10% extra milk to customers. The Mukesh Ambani-controlled company will sell
its new milk brand, Life, through general milk distributors, while its existing Dairy Pure brand is
sold only through Reliance Retail stores.
Reliance Retail has entered the dairy sector with the launch of its liquid milk brand called ‘Dairy
Pure’.
Reliance Retail is at present procuring 10,000 litres per day at its procurement centre in
Atmakur in Nellore district. Later in the year, Reliance Retail will launch Dairy Pure in 3 variants
family milk, low fat and whole milk. It would also diversify into a range of value-added dairy
products believed to be yoghurt, cheese and ice creams.
Loose milk is typically sold in India where milkmen carry unpasteurized milk in large metal cans
on their bicycles and mopeds from the farm gate to doorsteps or city streets. It is poured from
the milkman’s can into a jug or bottle. In India’s largest cities it is estimated that the majority of
white milk is already sold packaged. But in the countryside loose milk still dominates. Its a
competitor not only for Amul but also for all the other packaged milk brands there are people
who still prefer loose milk over packaged milk as they have a belief about the milk being pure ,
unadultared and healthy as compared to the packaged milk pouches.
And particularly in Kurla we find there are many loose milk center even thought its demand is
not much but the no of centers are high and may increase the threat in future for Amul
Research Methodology
Marketing Research
Marketing research plays an important role in the process of marketing. Starting with market
component of the total marketing talks. It helps the firm to acquire a better understanding of
the consumers, the competition and the marketing environment.
Definition
“Marketing research is a systematic problem analysis, model building and fact finding for the
purpose of important decision making and control in the marketing of goods and services.
Phillip Kotler.
Descriptive research:-
Descriptive Research is the research method used because descriptive studies embrace a large
proportion of market research. The purpose is to provide an accurate snapshot of some aspect
of themarket environment. Descriptive research is more rigid than exploratory research and
seeks to describeusers of a product, determine the proportion of the population that uses a
product, or predict futuredemand for a product. As opposed to exploratory research,
descriptive research should define questions,people surveyed, and the method of analysis prior
to beginning data collection. In other words, who,what, where, when, why, and how aspects of
the research should be defined.
SAMPLING:-
In this project the technique of sampling used was Judgment sampling. Judgment sampling
involves the choice of subjects who are most advantageously placed or in the best position to
provide the information required.
SAMPLE UNIT
In this project case sample were the retailers in Kurla(W) & the aim was to know
the penetration level of Amul milk and the competitors present in the market.
Survey Method:-
In this method, information was gathered directly from individual consumers and retailers
through questionnaires
Data type
(a) Primary Data: - Primary data are those which are gathered specially for the project
at hand, directly – e.g. through questionnaires & interviews. Primary data sources include
company salesman, middleman, consumers, buyers, trade association‟s executives & other
businessman & even.
(b) Secondary Data: - These are generally published sources, which have been collected
originally for some other purpose. Source are internal company records, government
publication, reports & publication, reports & journals, trade, professional and business
associations publications & reports.
RESEARCH INSTRUMENT
The research instrument used in the project was Questionnaire to collect primary
information, it provided flexibility by using more close ended and few open ended
questions.
Open ended: In this type respondents are free to answer in their own words and express the
ideas they think are relevant, such questions are good as first questions or opening
questions. They introduce the subject and obtain general reaction.
Closed end: in this type of questions it limits the respondents' answers to the survey. The
participants are allowed to choose from either a pre-existing set of dichotomous answers, such
as yes/no, true/false, or multiple choice with an option for "other" to be filled in, or ranking
scale response options.
Tabular analysis.
Graphical analysis.
Percentage analysis
OBSERVATIONS / FINDINGS:
India: 25%
Kurla: 46%
Total Market Share In Kurla :
Sale( In Crates)
400
350
300
250
200
150
100
50 Sale( In Crates)
0
Brand Sale( In Litres)
Amul 3554
Gokul 456
Mahananda 2252
Aarey 185
Mother Dairy 523
Goverdhan 10
Reliance 95
Open Milk 620
Market Share
Amul Gokul Mahananda Aarey Mother Dairy Goverdhan Reliance Open Milk
0%
1%
3% 8%
7%
46%
29%
6%
Interpretation :
As per the data collected it can be clearly seen that Amul is thas the highest share in Kurla (w)
region i.e 46% the reason being the customer demand as told by the retailers it’s the consumer
demand which is the primary reason for such high market share . But Amul has a close
competitor Mahananda which has 29 % market share which is a threat to Amul’s business the
reason that I got from the retailers was the availability , consumer demand and greater profit
margin over Amul which was the reason for such high market share rest other brands and loose
milk capture only 25 % of the market share
SWOT ANALYSIS
Strengths
Thretas
SWOT Weakness
Opportunities
Strength
Weakness
Opportunities
Threats
Market Share
0% 2% 2%
Amul
14%
Gokul
39%
5%
Mahananda
Aarey
24% Mother Dairy
14% Goverdhan
Reliance
Open Milk
Interpretation :
Here Amul has captured 39% of the entire milk market on S.M Road. Whereas, it has tough
competition from other brands like Mahananda which is 24% & Gokul 14%. In this area
the some reteilers didn’t complained , while some some were reluctant to give data . And
majority said it’s the customser preference which is the factor for this market share of
Amul and other brands
2. Bellgram Road :
Market Share
0%
0% 2% 0% 0%
Amul
Gokul
37%
Mahananda
Aarey
61%
Mother Dairy
Goverdhan
Reliance
0% Open Milk
Interpretation:
Here Amul is the market leader in packaged milk i.e (61%). Whereas, 37% is covered by
Mahananda which also has a good share in kurla overall. While the other brands and loose milk
have no preference at all by the consumers .
Market Share
1% 0%
Amul
12%
36% Gokul
13%
Mahananda
5%
Aarey
Mother Dairy
25% 8%
Goverdhan
Reliance
Open Milk
Interpretation:
Total milk market catered by Amul near New Mill Road is 36% which is again greater than
others. Its major competitors in this region are Mahananda , Mother dairy with 25% and 13%
respectively . Here another Comptetior is due to consumers preference for open milk against
packaged milk
4. Halwapul
Market Share
Amul
28% Gokul
Mahananda
57% Aarey
10%
Mother Dairy
5% 0%
Goverdhan
Reliance
0% Open Milk
0%
0%
Interpretation:
Above graph shows that currently open milk is being maximum sold in Halavpul (57%). Amul
has only tapped 28% of the entire market. Amul mainly has to compete with open milk
suppliers as consumers in this area prefer loose milk over packaged milk the reason being the
consumers mindset of open milk being pure which is unadulterated by processing and getting
packaged . freshness factor also was said by many consumers .
3% Market Share
0% 0%
Amul
3% 11%
Gokul
41%
Mahananda
26% Aarey
Mother Dairy
16% Goverdhan
Reliance
Open Milk
Interpretation:
Of the entire milk consumed on CST road and Master Factory Lane, Amul has covered 41%
of the market. Other major playes in this area are Mahananda and Gokul with 26% and 16%
respectively rest 17 % is captured by other branks and open milk . Here many respondents
told about the availibilty factor of Amul milk , its less margin as compared to other brands
and problem with distributor .
6. Takiyaward:
Market Share
Amul
26% 18%
Gokul
6%
Mahananda
Aarey
13%
Mother Dairy
29%
8% Goverdhan
Reliance
0% Open Milk
0%
Interpretation:
Above graph shows that Mahananda and open milk have the highest share in Takiyaward
region of kurla with 29% and 26% respectively. Whereas, only 18% is tapped by Amul the
reason being as told by many respondents is that the preference of mahanada and open
milk over amul this is because proper availability is not there of amul and the margin on
amul is too low whereas other provide greater margin and discounts .
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.
With Organized dairy business in India is only 20%, it is clearly evident that the pouch
milk market is huge and there is lot of scope for further expansion as millions of people
come out of poverty, increase in access to education, increase in incomes & awareness
of health benefits of milk consumption.
The Milk products market in India has reached at such a stage where large no. of
Cooperatives having a variety of product range has entered the market, thus there is
one way for Amul to sustain their milk business in the market by delivering outstanding
satisfaction to their retailers, so that they can take interest in selling of Amul milk
products.
As Amul is enjoying leadership position across segments. However, certain steps may be
taken to protect its turf in the near future.
o An effective consumer & retailers complaints/suggestions cell has to be set up
and monitored periodically. Thus customer service can be enhanced leading to
complete customer satisfaction.
o 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
o 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.
o 250 ml milk pouch should make available to more extent to retailers for selling,
because lower income family has intention to buy small pouch milk.
o Provide reasonable Margin to retailers as compared to competitors, this
motivates them to promote company’s milk and milk products.
o Need to create awareness about Amul Gold &Amul Tee-top through different
channels.
o Need to retain customers & retailers through loyalty programmes.
o Associate with Dentists will help promote low selling brands by having a
different positioning
o Need to make cooling arrangements for prospective retailers
o Packaging is a concern in certain areas, which results in leakages leading to
consumers shifting to other brands
o Provide consistent service to retailers as this will help gain company goodwill in
the market.
o Do not change distributor frequently, because he is the only person who act as a
connecting link between company and retailers
o Amul also has to introspect its production & processing systems as there has
been common occurrences of emulsion formation leading to spoilage.
o Amul should also invest in sales promotion and draw attention from the
consumers with a clear message it propagates to remain the TASTE OF INDIA in
the future.
o Need to increase consumption of Amul by having brand loyalty programmes
every quarter.
o Prospective Retailers are in requirement of Deep Freezers/Cooling equipment
o Higher margins may be given by reducing the cost of procurement& processing
to the retailers in order to further strengthen the presence of Amul Milk.
o 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.
o Credit is the 2nd biggest factor that influences the penetration of the product
into the retail outlet. So company should give the credit to all outlets.
o Given the fact that margin offered to the retailer is not similar in the case of the
competitor’s product. For this fact, the company should give good margin to the
retailers than the competitors.
o Amul’s spending on marketing is less than 1% of turnover. However with
increasing no of population ( 65% between 20 & 35 ) , decision makers in future
would be tech-savvy, educated Indians. With increasing Indian & MNC
competitors like Nestle, Danone widening their reach, Amul needs to
communicate clearly its USP through various channels. It has to increase its mind
share in the consumers mind in times of over-communication.
Urban India consumes over half of domestic milk production. Rising awareness about hygiene
standards and preference against loose milk will prompt urban consumer to switch to
pasteurised packaged milk.
Discount is also a important factor of stocking decision for retailers. So, company should
give some discount and have some offers which will increase its sale which in turn will
increase the stocking at retailers outlet
Replacement offer to the damaged product is one of the most important factor for
influencing the stocking decision of the product.
Following is the order in which the retailers ranked the other factors that influence their
stocking decision are -
Profit Margin according to the retailers was given a factor which leads them them to
stock other brands other than Amul so its ranked 1st among the other factors.
Consumer preference given by the company to the retailers of the product was raked
2nd as consumer in Kural area demand for Amul even are not satisfied with the profit
margin .
Offers and Schemes for the product was ranked 3rd as the retailers told about the
schemes which other brands provide.
Promotional strategies of the company for promoting it’s products was ranked only 4th
as they felt the need of these activities should be done as it will influence the buyers
which eventually affect the stocking decision of Amul
APPENDIX & BIBLIOGRAPHY:
1) www.Amul.com
2) www.Dairy India.com
3) Economic Times
4) http://www.indiaagronet.com/indiaagronet/DAIRY/Dairy.htm
5) http://www.nabard.org/fileupload/DataBank/TechnicalDigest/ContentEnglish/issue9td
-6.pdf
6) http://business.mapsofindia.com/milk-co-operatives/
7) http://en.wikipedia.org/wiki/Dairy_farming
8) Marketing Mangement by Philip Kotler
9) Marketing Management by Tapan.K.Panda
10) Marketing Mastermind @ www.iupindia.in
QUESTIONNAIRE
Respected Sir/Madam,
This is a questionnaire intended to study the penetration of AMUL MILK PRODUCTS in the retail outlets
of your area Kurla(W)
Q1 ) Area/Street ?
___________________________________________________________
___________________________________________________________
___________________________________________________________
__________________________________________________________
___________________________________________________________
Q6) Type of Retailer ?
___________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
Q19) If Amul is sold the most then what all other products of Amul you sell?
_____________________________________________________________
_____________________________________________________________
Serial
No. Name Contact No/Address/Area
1 Maharastra General Stores Takiya Ward, Kurla(W)
2 Sikandar Dairy(Mohmd. Usman) Takiya Ward, Kurla(W)
3 Umad General Stores Ambedkar Marg, Kurla(W)
4 Ashwini General Stores(Anil Hatk) 022-69826368 /S.M Road , Kurla(W)
5 Ambika Sweet and Farshan Mart S.M Road, Kurla(W)
6 Maharshtra Biscuits 022-26509237
Dharamraj Enterprises( Bhramdev 9224414457/ Raj dairy,Vijaymal damodar
7 Pande) Pande Chawl,Darga Road
Near Bhais Tabela, Halawpul, Kurla(W)
8 K.G.N 9029852444/ Halawpul,Kurla(W)
Sri Raja Ram Provision and General
9 Stores(Gridhari Patel) 9833046820
10 Café Madina Halawpul, Kurla(W)
9930578163 /Joshi Bhavan, Halav Pool
11 Hotel Rolex(Rashid) Road,Kurla(W)
12 Ajmeri Dairy Halav Pool Road, Kurla(W)
13 Yadav Dairy Farm New Mill Road,Kurla(W)
022-26508201/ 445/2 David Chawl, Sheetal
14 Hiten Dray,New Mill Road, Kurla(W)
15 Shah Shivaji Dharsi New Mill Road,Kurla(W)
16 Zakid 9702051214
17 Sukesh Sawla Dry Fruit 9820140032 / Bellgram Road,kurla(W)
18 Maharashtra Icecream( Bharulal) 9768370051
26548227 / 342, D/3, New Mill Rd. Ramdas
19 Janta tobacco and general stores Chowk,kurla(W)
26504508 / Sambaji wada, New Mill road,
20 Shidke general stores Kurla(W)
21 B.M chana bhandar New Mill Road,Kurla(W)
This is list of all the prospect customers who all showed interest in selling Amul milk in their
respective outlets. So based on this data the distributor can contact them ans take their orders
if any which will help an increasing the sale of Amul in Kurla(W)