Project On Study of Marketing Strategy of Amul
Project On Study of Marketing Strategy of Amul
DECLARATION CERTIFICATE
This is to certify that the work presented in the project entitled “Study of Marketing strategy of
Amul” in partial fulfillment of the requirement for the award of the degree of Bachelor of
Business Administration of Birla Institute of Technology, Mesra, Lalpur extension centre,
Ranchi. It is an authentic work carried out under my supervision and guidance.
To the best of my knowledge, the content of this project does not form a basis for the award of
any previous degree to anyone else.
Date:
CERTIFICATE OF APPROVAL
The foregoing project entitled “Study of Marketing strategy of Amul” is hearby approved as a
creditable study of research topic and has been presented in satisfactory manner to warrant its
acceptance as prerequisite to the degree for which it has been submitted.
It is understood that this is approved, that the undersigned do not necessarily endorse any
conclusion drawn or opinion expressed therein, but approved the project for the purpose for which
it is submitted.
The satisfaction and euphoria that accompany the successful completion of the project work would
be incomplete unless we mention the people, as an expression of the attitude that made it possible
and whose constant guidance and encouragement served as a beacon of light and crowned our
efforts with success.
This project would have been impossible but for the support and guidance that we received from
various people at different stages of the project.
Our sincere thanks tour guide DR. for his excellent guidance,
encouragement and patience has made possible the successull completion of this project.
SOURABH KUMAR
PRATIK VINAYAK
RISHABH JAIN
CONTENT
1. Executive summary
2. problem definition
6. Analysis &
interpretetion
7. Findings
8. Conclusion
9. Suggestions
11. Bibliography
12. Annexure
EXECUTIVE SUMMARY
Anand Milk Union Limited or Amul is an Indian dairy company, based at Anand in the state
of Gujarat.
Formed in 1948, it is a cooperative brand managed by a cooperative body, the Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.6 million milk
producers in Gujarat.
Amul spurred India's White Revolution, which made the country the world's largest producer of
milk and milk products.
The white revolution was spearheaded by Tribhuvandas Patel under the guidance of Sardar Patel.
As a result, Kaira District Milk Union Limited was born in 1946. Tribhuvandas became the
founding chairman of the organization and led it until his death. He hired Dr. Verghese
Kurien three years after the white revolution. He convinced Dr. Kurien to stay and help with the
mission.[citation needed]
Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited with
the success of Amul's marketing.[6] Amul has become the largest food brand in India and has
ventured into markets overseas.
Amul is a name we have all grown up hearing. That utterly butterly delicious smell of it has
sometimes even made us leave our beds and run to the kitchen. Anand Milk Producers Union
Limited or Amul, based at Anand in Gujarat is an Indian dairy cooperative. The Gujarat Co-
operative Milk Marketing Federation Ltd. (GCMMF) is India’s largest food product marketing
organization and Amul is a brand managed by them.
Angered by the unfair trade practices, the farmers of Kaira approached Sardar Vallabhbhai
Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to form
a cooperative (Kaira District Co-operative Milk Producers' Union) and supply milk directly to the
Bombay Milk Scheme instead of Polson (who did the same but gave them low prices).[9] He
sent Morarji Desai to organise the farmers. In 1946, the milk farmers of the area went on a strike
which led to the setting up of the cooperative to collect and process milk.[8] Milk collection was
decentralized, as most producers were marginal farmers who could deliver, at most, 1–2 litres of
milk per day. Cooperatives were formed for each village, too.[10] By June 1948, the KDCMPUL
had started pasteurizing milk for the 'Bombay Milk Scheme'. Under the selfless leadership
of Tribhuvandas Patel, in 1973, Amul celebrated its 25th Anniversary with Morarji
Desai, Maniben Patel and Verghese Kurien.
The cooperative was further developed and managed by Dr. Verghese Kurien with H.M. Dalaya.
Dalaya's innovation of making skim milk powder from buffalo milk (for the first time in the world)
and a little later, with Kurien's help, making it on a commercial scale,[11] led to the first modern
dairy of the cooperative at Anand, which would compete against established players in the market.
Kurien's brother-in-law K.M. Philip sensitized Kurien to the needs of attending to the finer points
of marketing, including the creation and popularization of a brand.
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to
Anand's neighbourhood in Gujarat. Within a short span, five unions in other districts – Mehsana,
Banaskantha, Baroda, Sabarkantha and Surat – were set up, following the approach sometimes
described as the Anand pattern.[8]
In 1970, initiated White Revolution of India, as it help create, Gujarat Co-operative Milk
Marketing Federation Ltd., which now overlooks Amul, in 1973,[12] and today, it is the second best
dairy in India.[12] To combine forces and expand the market while saving on advertising and avoid
competing against each other, the GCMMF, an apex marketing body of these district cooperatives,
was set up in 1973. The Kaira Union, which had the brand name Amul with it since 1955,
transferred it to GCMMF.[13]
In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.[14]
Technological developments at Amul have subsequently spread to other parts of India.
The GCMMF is the largest food products marketing organisation of India. It is the apex
organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing organisation for
products under the brand name of Amul and Sagar. Over the last five and a half decades, dairy
cooperatives in Gujarat have created an economic network that links more than 3.1 million village
milk products with millions of consumers in India. Gujarat Cooperative Milk Marketing
Federation Ltd.
INTRODUCTION
The Company:
Over seven decades ago the life of a farmer in Kaira was very much like that of farmers
anywhere else in India. His income was derived almost entirely from seasonal crops. Many
poor farmers faced starvation during off-seasons. Their income from milch buffaloes was
undependable. The milk marketing system was controlled by contractors and middlemen.
As milk is perishable, farmers were compelled to sell their milk for whatever they were
offered. Often they had to sell cream and ghee at a throwaway price.
They were in general illiterate. But they could see that the system under which contractors
could buy their produce at a low price and arrange to sell it at huge profits was just not fair.
This became more noticeable when the Government of Bombay started the Bombay Milk
Scheme in 1945. Milk had to be transported 427 kilometers, from Anand to Bombay. This
could be done only if milk was pasteurized in Anand.
After preliminary trials, the Government of Bombay entered into an agreement with
Polsons Limited to supply milk from Anand to Bombay on a regular basis. The
arrangement was highly satisfactory to all concerned – except the farmers. The
Government found it profitable; Polsons kept a good margin. Milk contractors took the
biggest cut. No one had taken the trouble to fix the price of milk to be paid to the producers.
Thus under the Bombay Milk Scheme the farmers of Kaira District were no better off ever
before. They were still at the mercy of milk contractors. They had to sell their milk at a
price the contractors fixed. The discontent of the farmers grew. They went in deputation to
Sardar Patel, who had advocated farmers’ co-operatives as early as 1942
Sardar Patel reiterated his advice that they should market their milk through a co-operative
society of their own. This co-operative should have its own pasteurization plant. His advice
was that the farmers should demand permission to set up such a co-operative. If their
demand was rejected, they should refuse to sell their milk to middlemen.
Sardar Patel pointed out that in undertaking such a strike there should be some losses to
the farmers as they would not be able to sell their milk for some time. If they were prepared
to put up with the loss, he was prepared to lead them. The farmers’ deputation readily
accepted his proposal.
Sardar then sent his trusted deputy, Mr. Morarjibhai Desai, to Kaira District to organize
milk co-operative – and a milk strike if necessary. Mr. Desai held a meeting in Samarkha
village on January 4, 1946. It was resolved that milk producers’ co-operative societies
should be organized in each village of Kaira District to collect milk from their member-
farmers. All the milk societies would federate into a Union which would own milk
processing facilities. The Government should undertake to buy milk from the Union. If this
wasn’t done, the farmers would refuse to sell milk to any milk contractor in Kaira District.
The Government turned down the demand. The farmers called a ‘milk strike’. It lasted 15
days. Not a drop of milk was sold to the milk merchants. No milk reached Bombay from
Anand, and the Bombay Milk Scheme almost collapsed. After 15 days the milk
commissioner of Bombay, an Englishman, and his deputy visited Anand, assessed the
situation and accepted the farmers’ demand.
This marked the beginning of the Kaira District Co-operative Milk Producers’ Union
Limited, Anand. It was formally registered on December 14, 1946. Its objective was to
provide proper marketing facilities for the milk producers of the district. The Union began
pasteurizing milk in June 1948, for the Bombay Milk Scheme – just a handful of farmers
in two village co-operative societies producing about 250 liters a day.
An assured market proved a great incentive to the milk producers in the district. By the end
of 1948, 432 farmers had joined village societies, and the quantity of milk handled by the
Union had increased to 5000 liters a day. In the early stages, rapid growth brought in its
wake serious problems. Their solution provided the stimulus for further growth. For
example, as the co-operative movement spread in the district, it was found that the Bombay
Milk Scheme could not absorb the extra milk collected by the Union in winter, when
buffaloes yielded an average of 2.5 times their summer yield. Thus by 1953, the farmer-
members had no regular market for the extra milk produced in winter. They were again
forced to sell a large surplus at low rate to middlemen.
The only remedy was to set up a plant to process the extra milk into products like butter
and milk powder. The logic of this step was readily accepted by the Government of
Bombay and the Government of India, except for a few doubting Thomases. The
government of India helped the Union to get financial help from UNICEF and assistance
from the Government of New Zealand under the Colombo Plan. Technical aid was
provided by F.A.O. A Rs.50 – lakh factory to process milk powder and butter was
blueprinted. Its foundation stone was laid by the then President of India the late Dr.
Rajendra Prasad on November 15, 1954. The project was completed by October 31, 1955,
on which day the late Pandit Jawaharlal Nehru, the then Prime Minister of India, declared
it open. The new dairy provided a further fillip to the co-operative movement among milk
producers. The union was thus enabled to organize more village co-operative societies and
to handle more and more milk each year. This event also brought a breakthrough in dairy
technology as the products were made processing buffalo milk for the first time in the
world. Kaira Union introduced the brand “Amul” for marketing its product range. The word
“Amul” is derived from Sanskrit word ‘Amulya’ which means ‘priceless’ or precious’. In
the subsequent years Amul made cheese and baby food on a large commercial scale again
processing buffalo milk creating a history in the world.
1964 was the turning point in the history of dairy development programme in India. Late
Shri Lal Bahadur Shastri, the then Prime Minister of India who visited Anand on 31s
October for inauguration of Amul’s Cattle Feed Plant, having spent a night with farmers
of Kaira and experiencing the success wished and expressed to Mr Kurien, then the General
Manager of Amul that replicating Amul model through out our country will bring a great
change in the socio-economic conditions of the people. In order to bring this dream into
reality, 1965 The National Dairy Development Board (NDDB) was established at Anand
and by 1969-70 NDDB came out with the dairy development programme for India
popularly known as “Operation Flood” or “White Revolution”. The Operation Flood
programme, even today, stands to be the largest dairy development programme ever drawn
in the world. This saw Amul as model and this model is often referred in the history of
White Revolution as “Anand Pattern”. Replication of “Anand Pattern” has helped India to
emerge as the largest milk producing nation in the world.
Gujarat Co-operative Milk Marketing Federation (AMUL) crosses Rs. 29,220 crores sales
turnover as on 2-04-2018.
Gujarat Co-operative Milk Marketing Federation Ltd., which markets the popular Amul
brand of milk and dairy products has registered a provisional turnover of Rs. 29,220 Crores
for the financial year 2017-18 which ended on 31st March 2018. It is important to note
that its Branded consumer products have registered a growth of 14% over previous year
with products such as Cheese, Butter, Milk Beverages, Paneer, Cream, Buttermilk and
Dahi having grown at 20-40%. The provisional unduplicated group turnover of Amul brand
has crossed Rs. 41,000 Crores which is 10% higher than last year. The total turnover of
the Amul Federation has a growth of 8% over previous year which is largely due to the
decline of 60% in the commodity sales as a result of depressed market conditions in the
global and local market. Amul Federation has been achieving a Compound Annual Growth
Rate of more than 18% since last 8 years because of higher milk procurement, continuous
expansion in terms of adding new markets, launching of new products and adding new
milk processing capacities across India. In order to reach interior markets, Amul
Federation has started 15 new branches in India during last five years. Further Amul
Federation has also appointed several distributors at smaller towns and villages to ensure
consumers in these markets also benefit from availing quality products at reasonable
price. Apart from this, Amul Federation has launched more than 50 new products in the
last two years to cater to the ever growing and ever changing consumer needs. The 18
member Unions of Amul Federation with farmer member strength of more than 36 lakhs
across 18,700 villages of Gujarat are procuring on an average 211 Lakhs litres of milk per
day which is 20% higher than last year. Shri Ramsinh P Parmar, Chairman, Amul
Federation, emphasized the fact that mantra of rapid expansion has clearly yielded rich
dividends for Amul Federation. “Based on estimated growth in market demand for Amul
products and our future marketing efforts, we anticipate at least 20% CAGR growth in the
business of Amul Federation during the next five years. The 0 5000 10000 15000 20000
25000 30000 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-
18 8005 9774 11668 13735 18143 20733 22972 27043 29222 Turnover of GCMMF (Rs. In
crores) GCMMF: Sales Turnover ( Rs. in Crores) Chairman added that Amul plans to
enhance its milk processing capacity from the current level of 320 lakh litres per day to
380 – 400 lakh litres per day in the next two years. On behalf of 36 lakhs milk producer
members of Gujarat, Shri Ramsinh P Parmar has conveyed his sincere gratitude to
Government of Gujarat and Government of India for their continuous and timely support
for various schemes related to milk producers. Shri R S Sodhi, Managing Director, Amul
Federation said that “We have achieved volume sales growth in all product categories.
Pouch milk which is the highest turnover product has shown double digit value growth.
In addition to this, our dairy products such as cheese, butter, milk beverages, paneer, UHT
milk, flavored milk, Paneer and fresh cream have also shown double digit value growth.
He also informed that there is positive impact of Goods and Service Tax on our business
and we are committed to achieve sales turnover of Rs. 50,000 crores by 2020-21. He
added that every year, we are getting better results because of strong foundation laid and
value system created by our founder chairman, late Dr. V Kurien and selfless and visionary
leadership of late Shri Tribhuvandas Patel and late Shri Motibhai Chaudhary. It is
important to note that Amul Federation passes on 80-85% of consumer rupee back to
milk producer members thus encouraging them to produce more milk.
Gujarat Co-operative Milk Marketing Federation Ltd., which markets the popular Amul
brand of milk and dairy products has registered a provisional turnover of Rs. 29,220 Crores
for the financial year 2017-18 which ended on 31st March 2018. It is important to note that
its Branded consumer products have registered a growth of 14% over previous year with
products such as Cheese, Butter, Milk Beverages, Paneer, Cream, Buttermilk and Dahi
having grown at 20-40%. The provisional unduplicated group turnover of Amul brand has
crossed Rs. 41,000 Crores which is 10% higher than last year. The total turnover of the
Amul Federation has a growth of 8% over previous year which is largely due to the decline
of 60% in the commodity sales as a result of depressed market conditions in the global and
local market. Amul Federation has been achieving a Compound Annual Growth Rate of
more than 18% since last 8 years because of higher milk procurement, continuous
expansion in terms of adding new markets, launching of new products and adding new
milk processing capacities across India. In order to reach interior markets, Amul Federation
has started 15 new branches in India during last five years. Further Amul Federation has
also appointed several distributors at smaller towns and villages to ensure consumers in
these markets also benefit from availing quality products at reasonable price. Apart from
this, Amul Federation has launched more than 50 new products in the last two years to
cater to the ever growing and ever changing consumer needs. The 18 member Unions of
Amul Federation with farmer member strength of more than 36 lakhs across 18,700
villages of Gujarat are procuring on an average 211 Lakhs litres of milk per day which is
20% higher than last year. Shri Ramsinh P Parmar, Chairman, Amul Federation,
emphasized the fact that mantra of rapid expansion has clearly yielded rich dividends for
Amul Federation. “Based on estimated growth in market demand for Amul products and
our future marketing efforts, we anticipate at least 20% CAGR growth in the business of
Amul Federation during the next five years. The 0 5000 10000 15000 20000 25000 30000
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 8005 9774
11668 13735 18143 20733 22972 27043 29222 Turnover of GCMMF (Rs. In crores)
GCMMF: Sales Turnover ( Rs. in Crores) Chairman added that Amul plans to enhance its
milk processing capacity from the current level of 320 lakh litres per day to 380 – 400 lakh
litres per day in the next two years. On behalf of 36 lakhs milk producer members of
Gujarat, Shri Ramsinh P Parmar has conveyed his sincere gratitude to Government of
Gujarat and Government of India for their continuous and timely support for various
schemes related to milk producers. Shri R S Sodhi, Managing Director, Amul Federation
said that “We have achieved volume sales growth in all product categories. Pouch milk
which is the highest turnover product has shown double digit value growth. In addition to
this, our dairy products such as cheese, butter, milk beverages, paneer, UHT milk, flavored
milk, Paneer and fresh cream have also shown double digit value growth. He also informed
that there is positive impact of Goods and Service Tax on our business and we are
committed to achieve sales turnover of Rs. 50,000 crores by 2020-21. He added that every
year, we are getting better results because of strong foundation laid and value system
created by our founder chairman, late Dr. V Kurien and selfless and visionary leadership
of late Shri Tribhuvandas Patel and late Shri Motibhai Chaudhary. It is important to note
that Amul Federation passes on 80-85% of consumer rupee back to milk producer members
thus encouraging them to produce more milk.
CHAPTER 2
RESEARCH DESIGN AND METHODOLOGY
2.2 OBJECTIVES
The objectives of our study is as follows:-
To study the brand perception of Amul in mind of consumers.
To know the attributes that a customer keeps in mind while buyimg Amul
products
To study the satisfaction level of consumers after using amul products.
To study weather amul products are genuine or not.
The task of data collection begins after after a research problem has been definded
and research plan chalked out. While deciding the method of Data collection to be
used for the study, first of all the sources of data must be very clear, there are
basically two sources of data
2.3.1 Primary data source
The primary data are those which are collected a fresh for first time for the
problem solution and thus happen to be original in characters. It may be obtained
from individual family and representatives
2.3.2 Secondary Data Source
The secondary data are those which have already been collected by someone else
and which have to decided, which have already been passed through the statistical
project. Externally, these sources may include books or periodical reports data
services and computer data banks.
In the context of the project study the source of data used by us for this project is
primary type of sources . The primary data source is respondents who have filled
questionnaire.
There are various methods of sampling in the context of my project study we have selected Non-
probability Sampling Method. And under that we have taken convenience sampling, under this we
have prepared a simple questionnaire to collect the information.
2.6 Data Collection Method:
Data collection is done basically in three ways: Observation Method, Survey Method and
Questionnaire. And in the context of our project study, we have selected questionnaire method for
collecting the data.
Data analysis is based on the data collected by the questionnaire. From the collected data findings
are extracted. The data is tabulated and frequency distribution chart is prepared.
CHAPTER 3
Data Analysis
Data interpretation analysis helps in interpreting the exact information about the data and figures
that has been found out during the survey. It helps in analysing the correct information about the
questions that are to be asked with the help of bar graphs pie charts etc. data interpretation helps
the readers to understand the situations that is been analysed and even makes it easier for those
who may find graph decoding a bit difficult.
80
70
60
50
MALE
40
FEMALE
30
20
10
INTERPRETATION:
A total of 50 respondent participated in our questionnaire out of which 13 were male and 37 were
female.
3.1.2 WHAT IS YOUR AGE?
SCALE RESPONDENT PERCENTAGE
BELOW 18 3 6
18-30 43 86
30-50 4 8
100
90
80
70
60 BELOW 18
50 18-30
40 30-50
30
20
10
INTERPRETATION
The age group of our respondents lie between below 18, 18-30, 30-50. The number of
respondents in first, second, third categories age groups were 3, 43, 4 respectively.
3.1.3 WHAT IS YOUR EDUCATION LEVEL?
Chart Title
OTHER POST GRADUATE GRADUATE HIGH SCHOOL SCHOOLING
14
EDUCATION LEVEL 7
12
INTERPRETATION
The educational qualification of our respondents consisted 2 from schooling, 6 from high school,
35 from graduation, 7 from post-graduation and 0 from other categories.
3.1.4 WHICH AREA DO YOU LIVE?
SCALE RESPONDENT PERCENTAGE
DOWNTOWN AREA 26 52
SECONDARY AREA 24 48
Chart Title
53
52
51
50
DOWNTOWN AREA
49 SECONDARY AREA
48
47
46
INTERPRETATION
The above graph shows that 26 of our respondents live in the down town area and 24 of our respondents
were from secondary area.
3.1.5 HOW FREQUENTLY DO YOU PURCHASE AMUL PRODUCTS?
60
50
40
RARELY
30 OFTEN
ALWAYS
20
10
INTERPRETATION
The above graph represents that how readily does our respondents buy the Amul products and
the outcome was 24 respondents fell in the rare category, 21 fell in the often category whereas
5 of them fell under the always category.
3.1.6 WHICH AMUL PRODUCT DO YOU USE?
SCALE RESPONDENT PERCENTAGE
DAIRY PRODUCTS 19 38
BAKERY PRODUCTS 21 42
43
42
41
40
DAIRY PRODUCTS
BAKERY PRODUCTS
39
38
37
36
INTERPRETATION
The above graph shows that what genere of products does our respondents tend to buy. The
outcome was 26 respondents under acne/skin problems, 23 under beauty care, 24 under soap,
11 under medicine, 22 under hair products, 21 under dental care, 22 under spices, 19 under
dairy products and 21 under bakery products.
3.1.7 REASONS FOR PURCHASING AMUL PRODUCTS?
SCALE RESPONDENT PERCENTAGE
REASONABLE PRICE 33 66
GOOD QUALITY 34 68
HEALTH BENEFIT 34 68
AVAILABILTY 34 68
BRAND IMAGE 25 50
80
70
60
REASONABLE PRICE
50
GOOD QUALITY
40 HEALTH BENEFIT
AVAILABILITY
30
BRAND IMAGE
20
10
INTERPRETATION
This graph shows that the reason why our respondentas buy Amul products. 33 of them
buy because of its reasonable price, 34 of them buy it due to its good quality, 34 buy it
because of their health benefit, 34 of them buy due to its easy availability and 25 of them
buy it due to its brand image.
3.1.8 HAVE YOU EVER COMPLAINED ABOUT PRODUCT?
90
80
70
60
50 YES
40 NO
30
20
10
INTERPRETATION
The above graph shows that how many of our respondents have complaint against the Amul
product or not. 9 of our respondents vote for yes i.e. they have some complaint against the
product whereas 41 of them voted for no i.e. they don`t have any complaint against the product.
3.1.9 IF YES, WERE YOUR COMPLAINTS ANSWERED?
SCALE RESPONDENT PERCENTAGE
YES 9 18
NO 41 82
90
80
70
60
50
YES
40 NO
30
20
10
INTERPRETATION
The above graph shows whether the complaints of the respondents were heard and answered
or not. 9 of them i.e. 18% of the total population of the respondents complained against the
product and their complaint were answered, whereas 41 of them i.e. 82% of the total population
of the respondents did not have any complaints and hence no action was taken for them.
3.1.10 HOW SATISFIED ARE YOU WITH THE AMUL PRODUCT FOR
THE FOLLOWING CHARECTERISTICS?
35
GOOD QUALITY
30
HEALTH BENEFITS
25
AVAILABILITY
20
BRAND IMAGE
15
INFORMATIVE
10
BRAND IMAGE OF RAMDEV
BABA
5
INDIAN BRAND
0 ADVERTISEMENT
SATISFIED PARTIALLY SATISFIED DISSATISFIED